South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

End-of-the-year-balances are looking up for ’04, ’05, Mehlville budget panel told

Mehlville School District officials reported that end-of-the-year balances are looking up for fiscal 2004 and fiscal 2005 during a recent Budget Development Committee meeting attended by two members.

The Budget Development Committee, intended to provide community oversight to the district’s proposed 2004-2005 budget, reviewed a revised operating budget June 21 that was 1.39 percent more than when it was last reviewed by the committee in late April.

Of the roughly 15 members asked to serve on the committee, Blades Elementary teacher Kay Cappos and Bernard Middle School Principal Michele Condon were in attendance June 21.

Because end-of-the-year operating balances are expected to increase for the 2003-2004 school year, beginning-of-the-year fund balances will increase for the 2004-2005 school year — also increasing its end-of-the-year balances.

Operating balances for fiscal 2004 initially were expected to rest at 3.49 percent — 0.49 percent away from the district being placed on the state’s financially distressed list. However, new projections reveal that end-of-the-year balances for the 2003-2004 year could end at 5.25 percent levels. Ending balances are expected to increase from $2,828,016 to $4,169,595 for fiscal 2004.

Incoming revenue actually is expected to decrease from $78,238,695 to $77,992,156 — a $246,539 drop in revenue.

But expenditures are expected to drop more significantly than anticipated, according to figures presented June 21. Expenditures are expected to decrease from $81,060,808 to $79,472,689 — a decrease of $1,588,119.

With the new projections, beginning-of-the-year balances for fiscal 2005 are expected to increase from $2,828,016 to $4,169,595.

Again, operating revenue is projected to decrease more than anticipated from $77,946,530 to $77,883,634 — a $62,896 drop in revenue for fiscal 2005.

The district also is planning to spend less next year. Projected expenditures for 2005 were estimated at $78,031,978, but now district documents indicate that expenditures should total $77,981,052 — $50,926 less.

Board of Education members were scheduled to consider a final draft of the fiscal 2005 budget Tuesday night — after the Call went to press.

Assistant Superintendent of Finance Randy Charles, who also serves as the district’s chief financial officer, told Cappos and Condon June 21 that it is normal to see an increase between May and June projections.

“I know from looking at past years’ budgets, when we make estimates in May and compare those to the real figures that come in at the end of June, there’s usually an increase of about nine-tenths of a percent,” Charles said. “The reason for that is some degree of conservatism. Also, the fact that when you close out the year, there are a lot of accounts that still have a little money left into them. There’s a little money in a lot of accounts and that adds up.”

The district was concerned this year, however, and did not want to assume that funds would increase by nine-tenths of a percent “because we made so many expenditure reductions in the spring, we didn’t know how that would affect” the budget.

Board member Rita Diekemper, who also sat in on the meeting, described the new numbers as “less scary.”

“One thing you’ll notice, not only are those numbers bigger, but you’ll notice that there’s a little bigger drop from this year’s balance to next year’s,” Charles said, referring to fiscal 2004’s 5.25 percent balance and fiscal 2005’s 4.84 percent balance.

The Department of Food Services needed $250,000 of its balance to perform renovation work at Oakville Middle School — expenditures that had not been accounted for in the budget presented to board members in April, he said.

Regarding the district’s overall budget, revenue increased, which was a result of the recent release of some state withholdings and updated information provided by the county.

“As you know, this year we’ve had a very tough time getting information from the county. Because of them changing systems, they haven’t been able to get the information out and to us,” Director of Accounting Brent Bell explained during the budget committee meeting. “So, they have finally sent me some information and then with that updated information I was able to update the levy projection and come out with a better projection for current and delinquent taxes.”

Overall revenue for fiscal 2004 was projected in April to total $92,113,191, but decreased to $91,537,059, while expenditures for fiscal 2004 were estimated to total $98,217,245, but decreased to $95,485,028.

Overall revenue for fiscal 2005 was projected in April to total $91,913,379, but increased to $92,148,237, according to recent figures, while overall expenditures for fiscal 2005 were expected to total $91,564,457, but increased to $91,747,727.

In both cases, end-of-the-year overall district balances increased from fiscal 2004’s estimated balance of $4,870,468 to the updated $9,026,553, to fiscal 2005’s estimated balance of $7,219,390 to the updated $9,427,063.

Many expenditure projections changed, Bell said, because salary and benefits projections were affected by late retirements, late resignations and the latest information on new hires.

Asking for feedback, Charles noted that even though less than a quorum of committee members were present June 21, he would pass along any of Cappos’ or Condon’s comments to the board June 29 for consideration.

“I think this is kind of a nice surprise,” Condon said. “We were all, when we started, thinking the worst. So, this is great.”

Cappos said, “No comment.”

Because most committee members did not attend the meeting, Diekemper requested that the new budget information be mailed to them and then seek feedback from them that could be presented to the board.

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