The Wayland Board of Education Monday evening heard more good news about the budget, which is in the best shape it’s been in several years.
Finance Director Bill Melching told board members the school district is projected to have a surplus of nearly $700,000 over the 2015-16 budget year.
Before introducing the data in Power Point presentation, Melching said, “We’ve had a very good fiscal year 2015-16 budget.”
He noted the surplus has pushed the fund balance to nearly 10% of the budget, well above projected targets outlined a couple of years ago. The fund balance now stands at $2,772,484, more than $800,000 better than the figure of $1,954,459 that was reported at the end of the 2013-14 fiscal year.
Given the positive financial news, the board was asked if it wanted to stick by that blossoming fund balance or use part of it to pay off the short-term debt for this year’s bus purchases. The board indicated support for the latter option after Melching promised the move would save $8,100 and improve the district’s bond rating.
Board Treasurer Toni Ordway said, “I’m all for paying it off.”
So the fund balance, as a result, will improve only to 8.75 percent rather than the just shy of 10% figure. It still more than meets the fund balance targets of one-half to one percent growth in each year.
The biggest gain in revenue over what was projected earlier came in Gun Lake Casino support, up by more than $100,000. Expenses overall were down more than $65,000 and the district was blessed with a mild and relatively inexpensive winter.
Superintendent Norm Taylor told the board school officials are anticipating an increase of about 30 in student population, bringing the total district-wide to 2,951.
Furthermore, state aid payments are anticipated to be $7,511 per pupil, the highest level since the 2010-11 academic year and an increase of about $120 per student over last year.
There were some areas in which expenses have increased, such as in health care because the Affordable Health Care (“Obamacare”) brought in about a dozen recipients (instructional aides) who didn’t have health care in bygone years.
Another increase in costs came from the food service budget, where revenues decreased by $29,000, which Taylor said was the result of more students qualifying for free and reduced price lunches and breakfasts.
All district employees except Taylor are getting a 1% increase in pay with their contracts. Board President Tom Salingue promised a conversation about that matter (Taylor’s salary) later.
Despite the bright economic news, the district will have to borrow $1.6 million against anticipated state aid because of the annual cash flow problem just before the start of school in September. The state’s fiscal year doesn’t kick in until Oct. 1, but the schools’ begins July 1.
Taylor noted Wayland had to borrow $2.4 million last year, so even that situation has improved.
The schools will borrow from United Bank on Aug. 15 at a rate of 0.20 percent.
The school board will have a public hearing on the fiscal year 2016-17 budget at 6 p.m. Monday, June 20, at the administration building.