The following relevant PK-12 public sector indicators will be provided to the Board annually to better understand the financial trends of the district. These indicators will be an accurate depiction as of June 30th of the preceding fiscal year and will depict at a minimum of 5 years of data.
Total revenues and expenditures by fund and major sources;
Financial Solvency Ratio - assigned plus unassigned fund balances divided by total revenue minus AEA flow through;
Unspent Authorized Budget Ratio - amount of maximum spending authority left at year end after deducting the general fund expenditures incurred during the year;
Unspent Authorized Balance Ratio Net of Restricted Fund Balances (Categorical Fund Balances) - amount of maximum spending authority left at year end after deducting both the general fund expenditures incurred during the year and the total restricted fund balances (categorical fund balances) at year end;
Enrollment Trend - funding follows the student so it is important to understand district enrollment numbers;
Staff costs as a percent of total general fund.
Financial Projections
Five-year financial projections of the general fund will be prepared and updated annually. The general fund is the operating fund of the district where the majority of salaries and benefits are funded. Projections will help the board determine sustainability of the annual operating budget and help make future budgetary decisions.
The District is committed to utilizing the following financial metrics in determining district financial goals:
Five-year financial projections of the general fund will be prepared and updated annually to assist the Board in evaluating long-term financial sustainability and making informed budgetary decisions.
The District is committed to maintaining financial stability through the following minimum financial standards:
1. Unspent Authorized Budget Ratio: Maintain an unspent authorized budget ratio of no less than 15%. The projected balance will be reviewed annually with the Board before staffing and other significant expenditure decisions are finalized for the succeeding year.
2. Unspent Authorized Budget Net of Restricted Fund Balances (Categorical Balances): Maintain an unspent authorized budget ratio, excluding restricted categorical balances, of no less than 10%. The District will strive to utilize categorical allocations in the year received, consistent with applicable requirements and allowable expenditures.
3. Solvency Ratio: Maintain an unrestricted, uncommitted general fund balance of no less than 10%. The projected solvency ratio will be reviewed annually before establishing the succeeding year's cash reserve levy and making significant staffing or expenditure decisions.
If any financial metric falls below its established minimum, the administration will present the Board with a financial improvement plan outlining strategies and a reasonable timeline for restoring the minimum standard.