A projected year-end surplus of
Jewell also warned the school system would have to seek an allocation from the county government if the fund balance were to run out.
Jewell gave a report on the finances for the second quarter of the fiscal year that ended
The second report forecasts the school system will finish the 2013-2014 fiscal year with a
"This is based on known facts through
"I would be sitting down with the superintendent and make an emergency recommendation to you all that we immediately go to the county government and request a piece of their fund balance to cover that catastrophe," Jewell responded.
"So we really don't have any opportunity within our own budget to call any more [funds] to meet any shortfall?" Frisch asked.
"We don't have a backstop," Jewell replied.
The fund balance is the collection of surplus funds left over after government entities' expenses have been met for the year and can be assigned to cover unexpected or emergency costs, similar to a savings account.
As an example, board members unanimously approved Monday a "supplemental appropriation" of
Jewell stressed the upgrades are routine and necessary to ensure continued maintenance. He said they had to be taken care of quickly, and officials could not wait to fund them through the FY2015 budget, which school officials are currently putting together.
Jewell said the projected
According to a copy of the second-quarter financial report, the
Assigned costs from fund balance include allocations for the FY2015 budget, health care, fuel and OPEB, which stands for other post-employment benefits for retirees.
Jewell said a less than 1 percent fund balance is "cutting it pretty close," noting the recommended fund balance for entities such as
"We will never get there," he added.
Jewell said he would be "happy" if the school system finished the fiscal year with a 2 percent fund balance.
A 2 percent fund balance would account for
"When you start getting down below 1 percent it cuts it close if you have some major problems," Jewell said.
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