ACADEMY STAFF REPORT RECOMMENDATIONS
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Consider and act to approve WA Resolution 25-15 adopting the Proposed Budget for Fiscal Year Ending June 30, 2026, including Committed and Assigned Fund Balances (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The final proposed annual operating budget for FY 2025-2026 for Westlake Academy is $12,310,696, including a contribution to fund balance of $655,360. Capital spending, debt service costs, and certain shared service costs are included in the Town’s annual operating budget.
The proposed budget reflects Westlake Academy’s (WA) continuing initiatives that support the vision, mission, and values established by the governing Board of Trustees. The Academy’s International Baccalaureate (IB) curriculum is built to prepare students for post-secondary success in our fast-paced and knowledge-rich world. With the understanding that our graduates must compete on a global stage, we prepare our students with 21st century specific skills to be able to successfully navigate an ever-changing globally minded marketplace. Therefore, we remain a school focused on future readiness and providing students with an internationally minded education of the highest quality, so they are well-balanced and respectful life-long learners.
DISCUSSION:
The proposed budget is prepared each year with conservative revenue projections and expenditures that are targeted to create an exceptional learning environment designed for student success and a supportive culture for all WA students and staff members to continuously develop and thrive.
The Board of Trustees discussed the budget objectives for FY 2025-2026 during a work session held on May 20, 2025. During these discussions, staff presented a draft budget for the coming year including base revenues and potential expenditures related to the academic services of Westlake Academy. Staff received direction from the Board to revise the methodology of shared services expenditures and prepare an updated proposed budget for consideration, including an additional review of personnel and line item expenditures to further refine or reduce spending where possible.
The Proposed FY 2025-2026 operating budget includes the following:
• Increase in Blacksmith funds pledged ($500,000 increase)
• Decrease in direct transfer from Town ($236,484 decrease)
• Slight increase in student enrollment vs. previous year (880 to 900 for additional fourth grade class approved)
• No teacher salary increases outside of required step raises based on the compensation plan (amendment anticipated pending direction from Texas Education Agency on recent legislation)
• Increase of 10% in health care costs to be passed on to enrollees (no budgetary impact)
• Reduction of 7.34 FTEs
o Eliminate 11.5 FTEs
§ 1.0 Information Technology Technician
§ 1.0 Interventionist
§ 1.0 Facilities Building Engineer
§ 1.0 Primary Teacher (Elementary Spanish)
§ 1.0 SPED Coordinator
§ 1.0 504 Coordinator
§ 1.0 Middle School Counselor
§ 0.5 Secondary Teacher (Secondary CTE)
§ 1.0 Student Information Systems Administrator (budget neutral; funds moved to operations)
§ 1.0 Custodian (budget neutral; funds moved to operations)
§ 1.0 Middle School Assistant Principal
§ 1.0 Instructional Tech & Activity Coordinator
o Add 4.16 FTEs
§ 1.0 Primary Teacher (Grade 4)
§ 1.16 Secondary Teacher (Part-Time Art & Math to Full-Time)
§ 1.0 Special Programs Coordinator
§ 1.0 Administrative Assistant
• Inclusion of operating expenditures directly supporting the Academy but previously budgeted in the Town’s operating budget ($275,524 in shared services expenditures)
• Inclusion of AP & IB tests, with offsetting revenue
• Increases for iPad lease, Apple device lease, property & liability insurance
• Reductions and reallocations of operating expenditures across all other areas
The FY 2025-26 annual budget proposed for Board consideration totals $12,310,696 in revenues, which is a 4.3% increase over the prior year adopted budget. Proposed expenditures total $11,655,336, which is a decrease of 1.2% from the prior year. The surplus of projected revenues over expenditures would result in a contribution to fund balance of $655,360.
Due to recent legislative activity, the Academy expects to bring forth a budget amendment during the Board’s July meeting to account for increases to the State-provided funding, legally-mandated spending (particularly relating to classroom teacher pay), and the potential for any service level adjustments. Guidance from the State is not currently available on exactly how the changes will impact the Academy, but staff will coordinate with the appropriate authoritative bodies and the Board on implementation.
Legal requirements for charter school budgets are formulated by the State and the Texas Education Agency (TEA). A Board typically adopts an appropriated budget on a basis consistent with GAAP for the general fund, debt service fund, and child nutrition program (which is included in special revenue funds). However, the Academy does not maintain a debt service fund nor a child nutrition program; therefore, only the General Fund is required to be adopted. Special Revenue Funds are not adopted by the governing body and are shown in the final budget document for informational purposes only.
In accordance with State law, the staff has prepared and presents the FY 2025-2026 operating budget for the Academy outlining the anticipated revenues and expenditures for the Board’s review and consideration.
FISCAL IMPACT:
The Westlake Academy proposed annual operating budget for FY 2025-2026 is $12,310,696, which includes a contribution to fund balance of $655,360.
STAFF RECOMMENDATION:
Staff recommends approval of the Westlake Academy Annual Operating Budget for FY 2025-2026, as proposed.
ATTACHMENT(S):
• WA Resolution 25-15
• WA Resolution 25-15 Exhibit A (5-Year Forecast)
• FY26 Line Item Detail
• FY26 Personnel Schedule
• Shared Services Costs Breakdown
BOARD OF TRUSTEES ACTION/OPTIONS:
1) Motion to approve
2) Motion to amend with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny