ERCSD Finance Committee Meeting Minutes
September 6, 2005 – 5:00 PM
SAU Office
MEMBERS PRESENT: Greg Kann, Patty Lovejoy, Kris Magnusson, Robin Scott
ADMINISTRATION PRESENT: Walter Pierce, Nathan Lunney
Chair Kann opened the meeting at 5:10 PM. The following agenda items were discussed.
1. Approval of Minutes: Patti Lovejoy offered a motion to approve the minutes of the June 15th meeting. Kris Magnusson seconded the motion and noted items for amendment. The minutes as amended were approved by a 3-1 vote.
2. Review of 2004-05 Fiscal Year-End: Nathan reported that the unaudited fund balance for 2004-05 is $1,407,154. He provided a revised summary of revenues for the fiscal year and explained that more than $1.1 million of the fund balance came from unanticipated revenues. These have been identified previously and included the SST capital funds, bond bank refund, building aid and catastrophic aid dollars, and Medicaid reimbursements that exceeded MS-24 estimates. The additional balance was unspent appropriations surplus of about $270k, which is less than a 1% margin.
3. State Aid Expectations
a. Educational Equity Grant – Final Figures for 2005-06: The committee reviewed the final figures for the new Educational Equity Grants for this new fiscal year. Nathan explained that the Gatsas plan, which became the new law, provides for a limit of 15% on first year grant losses. Five of our towns would have received less, but were saved by the 15% cap. Brentwood fared better in the new formula and will receive only about 14.2% less than last year. The total decrease in aid for the Cooperative overall is about $615K.
b. Building Aid – Anticipated Shortfall for 2005-06 and 2006-07: Nathan reminded the committee that Building Aid was initially discounted last year, but was ultimately made whole by a supplemental appropriation by the state legislature. This year the DOE has again alerted the schools that the budget will not support the full obligation for this new biennium. Building Aid will be discounted this at approximately 97.7%. The shortfall for the Cooperative will be $65,177.25. The DOE hopes another supplemental appropriation will restore complete funding before the end of the year.
4. MS-24 Revised Estimated Revenues: Nathan presented the committee with a copy of the completed MS-24 submitted to the State for September 1st. The MS-24 itemizes estimated revenues that will fund FY 2005-06 appropriations. This annual document is used to calculate the total tax dollars for education that must be raised for each school district.
5. Update on EHS Building Project: Walter updated the committee on the building project. He reviewed status of construction. The project continues to proceed on schedule and on budget for an opening in Fall 2006.
6. Trust Funds – July 1, 2005 Balances: Nathan introduced a modified version of the summary report with which the committee is familiar. He reviewed each trust fund, its establishment, purpose, and other details. The committee reviewed the summary of trust fund account balances at July 1st and the pending transfers to those accounts from the FY 2005-06 appropriations.
7. FY 2006-07 Budget Development Plan: The committee reviewed the Annual Meeting timeline that drives the budget development schedule. School District Election Day will be March 14, 2006. Nathan distributed a Budget Summary worksheet for FY06-07 that mirrors the one used in past years. He discussed the different broad categories that make up the budget. At the next meeting, Nathan plans to review proposed budget figures for areas including debt service, gross appropriations (federal funds, food service, etc.), and P&L insurance. The committee discussed the general timeline for budget review of salaries, non-salary accounts, Special Education, facilities and utilities, benefits, and transportation. Nathan plans to cover as much as possible in the next meeting and will provide a more specific budget topic plan based upon the committee’s conversation.
8. Any other business: The committee discussed its own goals for the fiscal year. This year the district is working on contract negotiations with the teachers union and negotiating a new contract with the paraprofessionals. The budget development cycle is impacted this year by the opening of the new high school and the accommodation of future uses of the Linden Street property. It was agreed that these challenges provide more than sufficient in goals for the committee and the staff supporting the committee.
9. Next Meeting Date: Tuesday, October 4, 2005 at 5:00pm at the SAU office.
Robin Scott offered a motion to adjourn. The motion was seconded by Kris and with a unanimous vote the meeting was adjourned at 6:40 PM.
Respectfully submitted,
Nathan Lunney