TOWN STAFF REPORT RECOMMENDATIONS
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Westlake Academy Budget Workshop (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The Board of Trustees is required to adopt an annual operating budget for Westlake Academy prior to the end of the current fiscal year (June 30). Staff will present the draft proposed budget of $12,331,912 and the Board will be able to ask questions and provide feedback that will be incorporated into the final proposed budget. The proposed budget will be made available for public inspection ahead of the public hearing, scheduled for June 17.
DISCUSSION:
The FY 2025-2026 draft budget for Westlake Academy totals $12,331,912. Capital spending, debt service, and shared services payroll costs are included in the Town’s annual budget.
The budget includes the following changes from the prior fiscal year’s amended budget:
• Increase in Blacksmith donations
• Reduction in direct contribution from the Town
• No salary increases outside the minimal step raises based on the compensation plan
• No changes in health care costs or contributions
• Decrease in FTEs (from 114.34 to 111)
o Reallocation of secondary math and science positions
o Removal of SIS Administrator, IT Technician, and Building Engineer
o Cut Custodian position, funds reallocated to janitorial services
• Inclusion of Academy operating services/supplies previously budgeted by Town
• Contribution to fund balance of $69,419
Local revenues are projected to increase by $369,859, due in large part to the increased Blacksmith donation pledge, to $3,657,493. State revenues are projected to increase $159,426 due to minimal inflationary increases and average daily attendance to $8,674,419.
Personnel expenditures are projected to decrease by $196,315 due to elimination of currently vacant support staff positions to $9,276,202. Services are expected to increase by $301,891 to $1,497,917 solely due to the addition of shared services operating expenditures previously budgeted by the Town. Supplies and materials are projected to increase by $240,853, due to the moving of shared services costs and reclassification of IB/AP testing from an offset revenue, for a total of $667,897. Other operating costs are projected to increase by a minimal $1,737 to $470,477 solely for the moving of shared services costs. And debt service is projected to increase $111,700 to $350,000 for costs related to exchanging iPads on campus as one lease ends and the next begins.
Details of the draft budget by function can be found in the agenda packet. The Five-Year Forecast includes the last audited year, the current year adopted and amended budgets, the draft proposed budget, and a forecast through FY 2029-2030.
The Board is also being asked to consider a list of service level adjustments (SLAs) that would be an increase to the budget. Any items the Board deems a priority will be included in the proposed budget to be voted on next month.
Additionally, the Legislature is still in session and, as of the time of agenda publication, has yet to approve an increase in the basic student allotment. This revenue source, embedded in the Foundation School Funds category, is the Academy’s highest revenue source. Any changes made by the State would be reflected in a future budget amendment. This has the potential to impact personnel costs, should a version mandating any of the increase be put towards teacher pay.
FISCAL IMPACT:
The FY 2025-2026 draft budget for Westlake Academy totals $12,331,912, which will include a cash transfer from the Town of $1,500,000. Additionally, $2,701,966 is estimated to be included in the Town budget for shared services payroll and debt obligations for a total estimated budget of $14,964,459 for Westlake Academy.
ATTACHMENT(S):
Draft Budget & Five-Year Forecast Schedule
Prioritized Service Level Adjustment (SLA) List
Service Level Adjustment (SLA) Requests
TOWN COUNCIL ACTION/OPTIONS:
No actions are required for this item