Tempe Union outlines FY221 financials, fund-reserve targets and bond activity; board approves report
October 05, 2023 | Tempe Union High School District (4287), School Districts, Arizona
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Finance staff presented the Tempe Union High School District annual financial report and a new AFR tab requiring districts to explain fund-balance reserves.
The presenter summarized FY222 district expenditures at a little over $180.3 million and said the maintenance and operations (M&O) fund accounted for approximately $105.7 million (about 58.6% of total). Other categories included unrestricted capital outlay (~$13.5 million), debt service (~$7.2 million), classroom site fund (~$11.0 million) and additional "other" funds such as CTE, food service and student activities. At object level, salaries were about $66.4 million (62.9% of M&O) and benefits about $20.0 million (19.7% of M&O). The presenter noted classroom spending in FY22 was roughly 67% (instruction + instructional support + student support).
On reserves, the district described a multi-part target: maintain a reserve equal to the M&O override (about $13.9 million in the FY24 budget), a reserve equal to the DAA capital override (about $8.7 million), and a 15% M&O reserve to weather enrollment declines without cutting current-year expenditures. The presenter said the district's target M&O reserve was about $42.3 million and the actual M&O reserve stood at roughly $46.3 million.
The presenter also reported that the district had received approval for a bond authorization up to $100 million and completed a first bond sale of $45.4 million; higher reserves were cited as one reason for receiving favorable bond ratings from Moody's and Fitch.
Board members asked about attendance (ADM) changes and food-service fund balances; staff noted some extra USDA funding and inflation effects on food costs. In voting, the board approved the annual financial report (I1) and then approved contract expenditures for architect, engineering and project management services for bond projects (I2), both by 4-0 voice votes. Member Barraza thanked staff for preventive maintenance and capital planning work on science labs and track renovations.
The finance presentation included caveats about enrollment projections (a demographer had projected a 10% decline over 10 years, but staff said current declines were faster and the FY24 budget assumed a 1% decrease while current enrollment was down about 3.4%).
The presenter summarized FY222 district expenditures at a little over $180.3 million and said the maintenance and operations (M&O) fund accounted for approximately $105.7 million (about 58.6% of total). Other categories included unrestricted capital outlay (~$13.5 million), debt service (~$7.2 million), classroom site fund (~$11.0 million) and additional "other" funds such as CTE, food service and student activities. At object level, salaries were about $66.4 million (62.9% of M&O) and benefits about $20.0 million (19.7% of M&O). The presenter noted classroom spending in FY22 was roughly 67% (instruction + instructional support + student support).
On reserves, the district described a multi-part target: maintain a reserve equal to the M&O override (about $13.9 million in the FY24 budget), a reserve equal to the DAA capital override (about $8.7 million), and a 15% M&O reserve to weather enrollment declines without cutting current-year expenditures. The presenter said the district's target M&O reserve was about $42.3 million and the actual M&O reserve stood at roughly $46.3 million.
The presenter also reported that the district had received approval for a bond authorization up to $100 million and completed a first bond sale of $45.4 million; higher reserves were cited as one reason for receiving favorable bond ratings from Moody's and Fitch.
Board members asked about attendance (ADM) changes and food-service fund balances; staff noted some extra USDA funding and inflation effects on food costs. In voting, the board approved the annual financial report (I1) and then approved contract expenditures for architect, engineering and project management services for bond projects (I2), both by 4-0 voice votes. Member Barraza thanked staff for preventive maintenance and capital planning work on science labs and track renovations.
The finance presentation included caveats about enrollment projections (a demographer had projected a 10% decline over 10 years, but staff said current declines were faster and the FY24 budget assumed a 1% decrease while current enrollment was down about 3.4%).
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