ERCSD Finance Committee Meeting

April 6, 2005 – 5:00 PM

SAU Office

 

 

MEMBERS PRESENT:  Patty Lovejoy, Kris Magnusson

 

ADMINISTRATION PRESENT:    Skip Hanson, Walter Pierce, Nathan Lunney

 

 

Chair opened the meeting at 5:10 PM.  The following agenda items were discussed.

 

1.      ERCSD Trust Funds Update

a.       Report of the Trustee of Trust Funds:  The Trustees of the Trust Funds for the Town of East Kingston (Roby Day, Vytautas Kasinskas, Joan Kasinskas) presented to the committee.   The Trustees introduced themselves and explained both the statutory basis of the trustees and the background of why the East Kingston trustees serve the ERCSD as well.  They provided and reviewed a copy of their investment policy and offered a summary of the current status of the Cooperative trust funds.

b.      February 2005 Trust Fund Summary:  Following the trustee presentation, Nathan provided the committee with a copy of the monthly trust update.

 

2.      March 2005 Financial Statements:  Nathan advised that the fund balance projection under the next item would replace the traditional monthly statement and provide a clear picture of the district finances.

 

3.      FY 2004-05 Fund Balance Projections:  Nathan led the committee through a review of the fund balance preliminary projection report.  He noted and the committee discussed a series of items that contribute to the projected balance:

                                                   i.      1100 Regular Ed – unbudgeted grade/track increases were substantial this year and will drive that function over budget by nearly $90k.  There was discussion about addressing this issue through contracted requirements on notification that would allow the district to adequately budget for the fiscal impact.

                                                 ii.      1200 Special Ed – unexpended out-of-district tuitions funds that were budgeted will lead to surplus in this function.  Nathan noted that special ed costs can accumulate quickly depending on unanticipated student needs, so this line will bear future attention.

                                                iii.      1300 Voc Ed – a program change left unexpended salary dollars that will drive a $50k surplus in this function.

                                               iv.      Retirement payout for sick – teacher retirements will necessitate sick leave payoffs of over $140k this year.  This challenge will be met with dollars grossly appropriated for student activities that were not offset ultimately with anticipated revenues.  There was discussion about including this more directly in future budgets in response to teacher notices of planned retirement.

                                                 v.      2400 School Admin – a surplus of nearly $50k will be realized in this function driven by the vacant 6-8 curriculum coordinator position.

                                               vi.      2600 Maintenance/Operations – the continued increase in energy costs are expected to result in this function running over budget by more than $90k due to overages in electricity, fuel oil, natural gas, etc.

                                              vii.      2900 Benefits – expenditures in health and dental insurance and state retirement are expected to drive this function over budget by approximately $150k.

The report concluded with a preliminary balance projection of over $175k on the appropriations side.  Nathan reminded the committee of the expected revenue side surplus of over $600k.  It was noted that the three voter approved separate warrant articles from the recent 2005 district meeting should be fully funded.

 

4.      EHS Building Project Update:  Walter updated the committee on the building project.  He explained that steel costs continue to represent a challenge to the project budget.  The initial steel estimates were based upon nearly complete specifications.  Subsequent completion of the specs has resulted in a higher expectation of steel costs.  Walter did report that the project contingency can support these higher costs.  Generally, he reported that the project is on budget and on time for summer 2006.

 

5.      Maintenance Trust Fund – CMS Project Update:  Nathan reported that the $20,000 Board approved Maintenance Trust project for classroom renovation at CMS has been completed.  The final expenditure was $23,843.70.  The committee agreed that the balance should be absorbed in the operating budget and a request made of the Trustees for the $20,000 from the Trust Fund.

 

6.      Preliminary Planning for FY 2006-07 Budget Development:  The committee discussed the impact of energy cost increases and the additional facilities demands at the new high school on the budget in 2006-07.  It was agreed that development of the budget should begin as soon as possible to offer the best information and conversation about tackling the challenges we will certainly face that year.  Energy costs were further discussed and Kris Magnusson will work with Dick Wendell and Nathan in seeking the most fiscally appropriate approach to contracting for our energy consumption.

 

7.      Next Meeting Date:  Wednesday, May 4, 2005 at 5:00pm at the SAU office.

 

The meeting was adjourned at 6:45 PM.

 

Respectfully submitted,

 

Nathan Lunney