Cadott School Annual Meeting; Mill rate decreases

By Julia Wolf

The mill rate is set to decrease, after the School District of Cadott held their annual meeting and budget hearing, Oct. 18. The meeting is a chance for all electors in the district to hear an update on how the schools are doing and directly vote on actions throughout the evening.

“Looking ahead to the 2021-22 budget, we are estimating that we will have a balanced budget on June 30, 2022,” said Sue Shakal, director of finance and human resources.

Shakal began by showing the summary for the general fund (Fund 10), with revenue and expenditures for the fund coming to $13,641,556.

The Special Projects Fund (Funds 21 and 23) looks different, as the fund balance increased significantly. Shakal says the change happened, because the Government Accounting Board now requires schools to move their student activity funds from Fund 60 to Fund 21.

“You’ll see later, on the next page, that Fund 60 will show a zero for the year,” said Shakal.

In the debt service fund, Shakal says the district only has referendum debt from the elementary school and no non-referendum debt.

Shakal also noted that the district has consistently added to Fund 46, the capital projects fund, each year.

“We are now at a point where we can start to spend from that,” said Shakal.

The post-employment money (Fund 73), set aside in a trust, is fully-funded and the district no longer needs to add to that account.

Shakal says the Community Service Fund may see higher expenditures this year, than previous years, as the district is planning to expand community education offerings.

The expenditures across all funds, excluding funds 27, 60, 72 and 73, is set to decline by 33.4 percent, to $15,047,459, down from $22,592,475 in the 2020-21 school year.

“The largest part of that decrease, is because, last year, in Fund 39, we refinanced,” said Shakal, adding that is why the unaudited numbers from 2020-21, in Fund 39, shows large revenues and expenses.

The proposed property tax levy for 2021-22, is down 6.31 percent, with the school levy at $4,694,418. The proposed mill rate is 10.42 percent, down from 12.01 percent the previous year.

Rick VanderMolen, community member, asked where the numbers for transportation services are in the budget. Superintendent Jenny Starck said those costs are under purchase services, since Kobussen is a vendor.

Community member Kathy VanderMolen also asked how much debt is left on the elementary school. Shakal says the principal balance, as of June 30, is $9,112,000.

As part of the superintendent’s report, Starck gave a brief overview of what makes up public school’s revenue, which the local tax levy is part of, along with state equalization aid, categorical aid and locally generated revenue, such as gate receipts.

Starck also reminded attendees that their property value plays into how much they pay in taxes.

“The good news is, that rate on your property value is going to be quite a bit lower,” said Starck. “But it will depend on what is your property value and if that’s increased.”

Starck also talked a little about federal COVID-19 funds the district is set to get and asked for community members to give input on the spending priorities, since the parameters are broader than most, with the form attached to the meeting packet.

“There are some things we have to do,” said Starck, explaining 20 percent must be used for student interventions arising from COVID.

She said some other uses considered are summer school, after-school, improving ventilation and airflow, or other things members of the public thinks would be a good use of the funds.

In the action portion of the meeting, community members voted to authorization of the school tax levy, as presented.

The community also voted to keep the Board of Education salaries the same, authorized legal defense and prosecution, as required, and to furnish textbooks and periodicals.

Voting members also agreed to authorize temporary borrowing for operating and maintenance.

Board member Brad Sonnentag asked how much more money they need in the fund balance, before they no longer need to worry about temporary borrowing.

Shakal says they borrowed $1 million last year, in the middle of October, and this year, she is projecting she will not need to borrow until November, and only $500,000.

“So, we’re getting really close,” said Shakal.

Shakal says they only need the funds until tax money is paid in January, when the borrowing is repaid.

“I think it’s kind of important to have flexibility,” said Ced Boettcher, board member.

It was also agreed to leave the lunch prices the same.

The next annual meeting is set for Monday, Oct. 24, 2022, at 7 p.m.