2018-07-11 / News

Brown City board adopts $8M budget

BY STEVEN KOVAC
810-452-2684 •

BROWN CITY — School Superintendent Neil Kohler has finished his first year in office with the district in the black.

“We were able to present a balanced budget for the 2017- 18 school year. This was a goal of mine and something that ensures financial stability within our district,” said Kohler. “We are projecting to have just over $20,000 that will be put into our fund balance. This is very good considering we have a budget of just over $8.1 million.”

Kohler explained how the district’s sound financial position made possible several additional projects without busting the budget, saying, “We were able to do some things this year that were not in the original proposed budget, such as the boiler upgrade in the high school, a new bus, a new playground structure, concession stand/bathroom project, elementary PA system upgrade, and the updating of some of the high school bathrooms.”

Revenues in the 2017-18 budget were $8,179,412, with expenditures of $8,157,878 resulting in a surplus of $21,534.

According to Business Manager Sue Lange, the anticipated undesignated fund balance on June 30 was $1,883,260.

The Michigan Association of School Boards considers a district financially healthy if it can post a fund balance of 15 to 20 percent of its general fund. Brown City Schools’ fund balance is 23 percent.

In dealing with the proposed 2018- 19 budget, Kohler noted, “Our projected enrollment is 791.5 students. This number is down from the past year.”

According to Kohler, the attendant loss in per pupil state aid will be partially offset by an increase in the projected foundation allowance which is expected to be raised by $240 per student.

Brown City anticipates receiving $7,871 from the state per pupil in the coming year.

“With our enrollment and square miles in the district, we should start receiving the ‘Isolated Districts’ money from the state next year…That is an additional $36,000 for the district,” said Kohler.

Projected revenues for the 2018-19 school year are $8,053,277 over projected expenditures of $8,041,238.

“We have proposed a balanced budget for the upcoming school year, and we are excited to have continued financial stability within our district,” said Kohler. “We will continue to find ways to become more efficient with the funds we have and continue providing the best educational experience possible for our students and community.

“This year’s budget also assumes that our community will support our operating millage renewal that is on the August 7th ballot. This is a non-homestead millage that most our of community does not have to pay. This millage accounts for approximately $515,000 per year.”

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