TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, consider and act to approve WA Resolution 24-38 amending the Westlake Academy Annual Operating Budget for fiscal year ending June 30, 2025, and take appropriate action (Cayce Lay Lamas, Director of Finance)
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STAFF: Cayce Lay Lamas, Director of Finance
BACKGROUND:
Westlake Academy is required by the State to adopt an operating budget each year as its financial operating plan. As the school year progresses, it is typical for Academy staff to make modifications to the budget, as allowed by policy or Board approval, to ensure the curriculum is appropriately administered, students and staff have the financial resources required to support the operating activities of the school, and to execute all Board-approved directives. Budget amendments are the administrative action to codify these changes and ensure the final amended budget prior to June 30, 2025, complies with the State’s requirements for spending to be within 10% of the budget by function.
As a means of providing financial transparency throughout the fiscal year, budget amendments will be brought to the board on a quarterly basis, at a minimum, instead of one time per year, which has been the practice in prior years. The presented budget amendment reflects necessary changes that occurred from July 1, 2024, through October 11, 2024.
At the end of the fiscal year, both the Original and Final Amended Budgets are submitted electronically to the Texas Education Agency (TEA) as part of the Academy’s annual financial and compliance report (AFR). TEA considers the budget filed when the Academy submits an AFR showing a comparison of budget and actual (audited) amounts. Amended budget data is also included in the Mid-Year Submission to the Public Education Information Management System (PEIMS).
DISCUSSION:
The requested amendment to the original FY 2024-25 operating budget, adopted on June 17, 2024, is attached for the Board’s review. The budgetary changes presented will decrease the operating fund balance by $107,160. The majority of the increase is for the Service Level Adjustments (SLAs) approved on July 15, 2024, and presented with the Compensation Plan. Below are the highlights of these changes:
Description of Revenue changes: The original general fund revenue budget of $11,510,063 will increase by $52,574. This is due to increases to:
• General Fund: Westlake Academy Foundation (WAF) funded salary increases ($32,364 or 62%). WAF salary increase is in excess of the approved 2% increase included with the original adopted budget. The WAF board approved to fund the increases.
• General Fund: Town of Westlake will fund a salary increase for Facilities ($15,210 or 29%). The Building Technician position was approved on July 15, 2024 with the Compensation Plan. The position will service Westlake Academy at 75% and the Town of Westlake 25%.
Description of Expenditure changes: The original general fund expenditure budget of $11,510,063 will increase by $159,734. This is due to increases to:
• Function 11-Instruction: increase of 29% for an Algebra teacher (SLA) and LSSP, OT, and PT estimated costs for direct student service (reallocated from function 31).
• Function 12: Resources & Media Services (Library): increase of 1% for employee travel & training (SLA).
• Function 21: Instructional Leadership: increase of 2% for PYP and DP coordinator travel & training (SLA).
• Function 31-Guidance & Counseling: overall decrease of 3% from reallocating funding for LSSP, OT, and PT to function 11, increases for high school (HS) counselors travel & training (SLA).
• Function 41-General Administration: increase of 9% for general liability insurance, public notices, and to increase Finance staff travel & training (SLA).
• Function 51-Maintenance & Operations: overall 30% increase in the Facility salary budget to include the estimated cost for the Building Technician. In addition, funds were reallocated to function 41 for general liability insurance and public notices, and to function 23 for campus leadership supplies.
• Function 53-Data Processing: increase of 4% for Technology staff travel & training (SLA).
• Function 61-Community Services: increase of 23% for WAF employee salaries, offset by the increase in revenue approved by the WAF board to fund the increases.
Details of the changes to the budget, by function, are included as attachments within the Board packet.
FISCAL IMPACT:
The Westlake Academy amended budget will decrease fund balance by $107,160.
ATTACHMENTS:
1. FY 25 WA Budget Amendment Summary
2. Requests to Change WA Budget
STAFF RECOMMENDATION:
Staff recommends approval of WA Resolution 24-38, amending the Fiscal Year 2024-2025 Westlake Academy Budget, as presented.
TOWN COUNCIL ACTION/OPTIONS:
1) Motion to approve WA Resolution 24-38, as presented.
2) Motion to amend with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny