CUSD 200 End of Month Fund Balance

Listening to existing school board members, school staff and Dr. Harris, school superintendent, I have heard conflicting statements on the school district’s financial status. I hear that CUSD 200 is in great shape. That they held the line on spending, and that the teachers’ union signed a contract with reasonable salary increases. Then I hear that we cannot spend any of the $14 million capital grant on the Jefferson Early Childhood Center because we need to keep it for working cash.

In an attempt to understand this, I requested the monthly cash flow reports for the last five years. Attached is a graph of total end of month balance by month and year.

Anomalies explained:

• Every year, property tax is received in June and September. Thus September is always  the high point, and end of May the low point.
• The largest expenditure is salaries.  Some are paid all 12 months, most are paid for 10 months.
• March 2008, income of  $58 million in the construction fund (Hubble) .  Total fund balance would have been negative in May without this.
• May 2009 income of  $20 million in working cash (from what?).  Looks like the district repaid $7 million in June 2009.  Total fund balance would have been down to $5 million at the end of May without this.
• May 2010, income of $6 million labeled TAW (tax anticipation warrant).  Total fund balance would have been negative at the end of May without this.
•  June 2010, repaid $6 million TAW. 
• April 2011, $12 million TAW.  Total fund balance would have been negative at the end of May without this.
• June 2011, repaid $12 million TAW
• May 2012 income of  $14 million in the building & capital renewal fund – from a capital improvement grant.  Total fund balance would have been negative at the end of May without this.
• Projection for May 2013, assuming money continues to be spent a t the current rate is approximately $12 million.  It would be negative without the $14 million capital grant.

Note:  At the March 11, 2013 Jefferson referendum meeting, Dr Harris said that the state is $5 million behind in its payments to the district.

There are unknown expenses coming such as a potential shift of pension cost and increases to health insurance. The state’s problems may become the district’s problems. And in either case, it will ultimately be the taxpayers’ problem.  

The district has over $200 million bonds to be repaid in the next 11 years.

I agree with Mr. Gambaiani, taking on an additional $23 million in debt to fund the building of a new Jefferson, or any other large capital expenditure at this time would jepeordize the fiscal health of the district.

See: Mr Gambaiani's comments from the Jan 2013 school board meeting

http://www.youtube.com/watch?v=yw8d-cgR_g