AGENDA REQUEST
GENERAL DISCUSSION ITEM
Subject:
title
Discussion regarding the transfer of the Board of Education FY 21-22 operating budget audited surplus of $448,253 to the BOE Capital Reserve Fund in accordance with the Town Council adopted resolution that created the funding mechanism. Not factored into the aforementioned surplus is the Board of Education Healthcare deficit for the same audit period of $861,753.
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Background:
The Town Council adopted a resolution on September 28, 1988 that established a separate line item within the Town Capital Reserve Fund for Capital Expenditures for the Board of Education. Per the resolution, all surplus funds returned to the General Fund by the Board of Education are to be deposited in the Capital Reserve Fund for the Board of Education. Surplus funds shall be defined as reserves accumulated by the Board of Education according to their year-end audit statement.
Department Comment/Recommendation:
The General Fund ended Fiscal Year 21-22 with an overall operating deficit of $43,375. The deficit reduced fund balance at year end to $4,971,207. The biggest factor leading to the deficit was the under budgeting of Board of Education Healthcare. Healthcare for active employees was under budgeted by approximately $350,000 and healthcare for retirees ($512,000) was erroneously omitted entirely from the budget. In addition to the healthcare deficit, several Board of Education revenue sources fell well short of budget. Impact Aid fell short of budget by almost $113,000 and tuition revenues fell short of budgeted projections by almost $257,000. It should be noted that Vo-Ag Stabilization Funding exceeded the budgetary estimate by $302,00 but that excess was already transferred out of the general fund by previous Town Council action. The overall net impact to the general fund for all these items is a $783,500 reduction to fund balance. Factoring in the transfer out of the prior year Board of Education surplus of $566,000...
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