Another spreadsheet

We only have estimates of what is to continue.

We only have a 2% estimate of an increase in state funding.

Employees renew contract every two years.

Increase in general utilities.

Why are we required by law to have a fund balance?

If we do not have a fund balance, then we could be in statuatory operating debt.

The policy is that we would like to have a 5% fund balance as a buffer. A mid-year adjustment is made around March.

Come back on a monthly basis and give highlights. Midyear request budget adjustments.


Made a permant transfer of money from an unrestricted budget to a trust fund.

Kelly - it was a transfer from internal service fund to an irrevocable trust fund because they had to adopt Gasby 43 and 45. The district is a very good position because they had the internal service fund.

Dean: We need to report the dollars -- it is not a requirement to create a trust -- according to gasby. Gasby only requires you to report not to establish a trust fund. We are on a pay as you go system. Dollars that could have gone to student programming are set aside for retirement benefits. One could argue who's needs are greater served by those dollars? By making the move that we did we are in this spot now.

Antolak - Gasby - Governmental account board -- guides all that we are reporting and doing. Is this the same as businesses using retirement money that they should not?

Gasby requires that we disclose it. What is the benefit of setting it aside as opposed to spending the money and then someday covering that liability.

Kelly - If we didn't fund our liability where we have to cover much more and be required to set aside money to become funded. This would have an effect on our bond rating. The current bond rating is very good and even though we have difficult financial times they felt confident that we could improve our position because we have a good trust.

Dean: The dollars we borrow are associated with capital debt. We have a fair amount of capital debt. Moody's is a reflection of our ability to pay. There is a very slim risk that the School District would every default on a bond.

This fund has a direct impact on a bond rating.

Dean: Currently our post employment liability is due to large amounts of accumulated sick days. 12 sick days a year cummulative to an unlimited number. We could control some of this liability.