The Sulphur Springs ISD 2021 tax rate and fiscal year 2021-2022 budget were set by school trustees during a special noon board meeting Friday, Aug. 27, 2021. The school board also amended the FY 2020-21 budget during the session.
FY 2020-2021 Budget Amendments
Fiscal year 2020-2021 will end on Aug. 31, 2021. SSISD Business Manger Sherry McGraw asked the trustees to approve amendments to the general fund, food service and debt service budgets so those can be closed out at the end of the fiscal year, with a few final minor adjustments made for any prior approved changes while making allowances for any anticipated bill that has yet to come in or show in the fund balance.
“There’s no adjustments to total dollars to any of the budgets, other than food service, which is commodities, but it’s an increase to revenue and to expenditures,” McGraw noted.
The board was asked in July to amend the general budget by $153,538. No increase was added there. However, McGraw said some allocations had been moved in anticipation of some expenses and revenues, to ensure there’s funding to cover any bills that have yet to come in.
The general fund budget revenue increased by $367,774 from local funding, while expenditures rose by $153,538. The district received $331,574 in insurance funding for damages from the winter storm and $36,200 in COVID TDEM revenue. The district also spent $155,077 in plant maintenance required to February’s winter storm, and $38,461 in instruction and plant maintenance COVID expenditures, according to the information presented by McGraw. These COVID and winter storm expenditures were noted in June.
The food service budget revenues and expenditures increased by $193,449, increasing revenues to $2.4 million and expenses to $2.369 million.
There were no amendments needed for the debt service fund. The district received $4.15 million to go toward debts, and spent $3.22 million on them.
“Allocations were adjusted due to increases or decreases to various function codes, as well as planning for any remaining expenses that have not been presented for payment as of August 26, 2021,” McGraw said. “I am asking you to approve the final amended general fund budget totaling $41,737,176, food service totaling $2,368,885, and debt service with a total of $3,219,331. The motion received unanimous approval of the school board.
Sulphur Springs ISD officials proposed and trustees approved a tax rate, with the maintenance and operations portion (M&O) of the tax rate decreasing 7.9 percent from $0.9409 to $0.8720, and the interest and sinking portion of the tax rate (used to pay debit service, bonded indebted and I&S fund) will remain unchanged at $0.310485.
“I think it’s worth noting that our tax values increased; our tax rate decreased 7.9 percent. I think you are to be commended. It’s also part of the state’s adjustment with the tax rate compressed rate. Our property valued have gone up 16.8 percent. I think it’s something you’ll want note because our revenue locally is going to go up but our state revenue will go down,” McGraw said.
The tax rate approved for the 2021 tax year (which begins with notices sent this fall) will be $1.18248 per $100 property valuation, that is $0.8720 for local maintenance and operation and $0.31048 for the I&S (debut service, bonded indebtedness, interest and sinking fund.
FY 2021-22 Budget
McGaw presented for trustees’ approval at the Aug. 27 meeting a balanced budget, with $41,618,923 in projected revenues and $41,569,604 in budgeted expenditures in the general fund for fiscal year 2021-2022. That would leave a surplus of $49,319 at the end of FY 2021-22 as projected.
The business manager said she was very conservative when factoring in revenues, including adjustments to student counts and the indexes, which are still being worked out.
The food service budget, when FY 2020-21 concludes on Aug. 31, is expected to have $677,000 remaining. The 2021-22 food service budget is estimated to bring in $2.46 million, but expenditures are projected to be $2.57 million, which would be a $107,893 shortfall. However, because the program has so much left at the end of the school year, quite a bit of the remaining amount needs to be spent. The district has budgeted to spend $107,893 of the FY 2020-21 surplus to lower the food service surplus.
McGraw noted that a little over $5.53 million is expected in revenues to apply toward debt service in FY 2021-2022, while spending about $5.22 million.
“Our debt payment is not that high, but we have put in there in anticipation of anything that may come in the future or to pay toward our debt that we currently have, so we put that into the budget,” McGraw explained.
The district also expects to receive $3.51 million in federal funding to be applied to payroll, increasing hte district’s overall revenue steams to $52.4 million and expenses at $52.2 million.
Local revenue was projected at $14.8 million last year. This year it’s projected at $17.1 million. State revenue is expected to declined from $26 million to $23.9 million. Federal revenue this year was $462,000.
McGraw noted that the transportation budget has increased from $39,0000 to $149,000. Vehicles were moved out of individual department budgets and placed them all in a vehicle budget. The 2021-22 vehicle budget includes 1 maintenance truck, one police car and one school bus.
Resurfacing of the high school parking lot that was recently completed cost $72,000
doors at SSES, security issues $76,000 in budget
“I think we are in good shape. We are thankful for ESSER but, also I think, our staff has put together a good budget,” McGaw said.
The budget received unanimous approval from the five SSISD Board of Trustees members present for the meeting. Robbin Vaughn and Leesa Toliver were unable to attend the noon meeting on Aug. 27.