Action of the School Board Action of the School Board 05/26/15 | Page 4

This revenue source recognizes the flaw in the compensatory aid formula, which favors
districts with relatively small schools that have large concentrations of students in poverty.
Even though Anoka-Hennepin has many students in poverty, it operates large schools so
the concentration of those students isn’t as great.
Vargas reviewed the timelines for reductions for the 2016-2017 school year. Staff would create scenarios and options for cuts between now and December, then hold public hearings
and adopt the reductions in January in order to meet timelines for the staffing process.
If the board decided to hold a referendum levy to generate additional revenue, the timelines would be tighter. Staff would create scenarios between now and August, hold public
hearings in September and adopt the reductions in October in order to be able to communicate with voters the impact of success or failure of the ballot question. Vargas said a decision on a levy referendum must be made by August 21. Heidemann asked staff to check
on the deadline as this is earlier than it was for the district’s two previous two referendum
levies.
Superintendent Law suggested the district get input through a survey to deter mine community priorities.

2014-15 budget amendment presented

Michelle Vargas, chief financial officer, provided an overview of the budget amendment for
the current year’s budget. She said the amendment must be adopted by the board and will
be on the consent agenda for the June 15 meeting.
While there are no changes to food service, debt service or trust funds, the amended budget
calls for an overall increase of $29.3 million in expenditures and $12.1 million in revenues.
The general fund budget shows a revenue increase of $2.9 million, with the majority coming from the sale of the Educational Service Center in Coon Rapids for $1.9 million and the
remainder from increases in federal entitlements and miscellaneous state and local grants.
A general fund expenditure increase of $11.5 million resulted from a wired/wireless infrastructure project, use of capital reserve carryover for improvement projects in schools, use
of staff development carryover, purchase of furniture for additions at elementary schools
and Coon Rapids Middle School, and increased programming and services for students
made possible through the increase in federal entitlements and grants.
The amended budget results in a budget deficit of approximately $9.5 million and an unassigned fund balance of $41.8 million, or just over 9 percent of expenditures.
The Community Service Fund was adjusted to reflect changes in grants for various programs. Vargas said program expenditures were adjusted to match revenue and that the
fund is very stable. Its operating deficit is just over $2,000 and it will have an ending fund
balance of $4.8 million, or 21.5 percent of expenditures.
The Capital Projects Fund was adjusted to include the sale of $8.7 million in certificates of
participation to fund additions at two elementary schools, plus payments for the balance
of the additions built last summer at five elementary schools and a middle school. The
projected balance in the fund is $4.4 million.
When all funds are considered together, the amended budget projects $523.9 million in
revenue and $542.5 million in expenditures. Overall, Vargas said the changes from the budget adopted initially are relatively minor, particularly in the general fund where the total
budget is well is over $400 million.

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ACTION

Proposed budget for 2015-16 presented

Michelle Vargas, chief financial officer, provided an overview of the proposed budget for