TOWN STAFF REPORT RECOMMENDATIONS
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Consider and act to approve WA Resolution 25-16 approving the Westlake Academy Amended Operating Budget for Fiscal Year Ending June 30, 2025 (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The FY 2024-2025 annual operating budget was adopted by the Board of Trustees on June 17, 2024. Due to actual enrollment, subsequent staffing and curriculum needs, and the natural movement of funds occurring as the administrative staff, including a new Head of School, became more involved in the financial activities, changes to the original budget are warranted. Additionally, this amendment formally increases the respective budget lines for items previously approved by the Board during the year.
The changes presented will increase the operating fund balance by $147,287 due to the following amendments:
• Budgeted Revenues will increase by $439,851 (or 4%).
• Budgeted Expenditures will increase $292,564 (or 3%).
Additional details are available in the agenda packet and further discussed below. The major changes are due to:
• The implementation of the Position Control module, which detected instances of over-budgeting of staff salaries & benefits. Overages were reallocated to line items insufficiently budgeted (e.g., utilities, legal fees, janitorial and landscaping costs, building projects).
DISCUSSION:
Revenue Changes by Source
• Transportation: Increased by $800 (4% increase)
o Due to receipts from athletic sport registrations designated for transportation costs.
• Athletics: Increased by $18,400 (14% increase)
o Driven by higher participation and registrations in basketball, cross country, soccer, tennis, and track.
• General Operating (Local): Increased by $298,551 (11% increase)
o Attributable to higher-than-budgeted interest earnings.
o Includes a $40,000 contribution to offset WAF employee salary and benefit costs.
o Increase in the Municipal Operating Transfer from $1.5 million to $1.7 million.
• General Operating (State): Increased by $43,700 (1% increase)
o Due to an increase in Average Daily Attendance (ADA).
o Offset slightly by a decrease in CTE funding, reported in October 2024, resulting from changes in CTE course coding and attendance reporting.
o A larger increase may follow the Summer PEIMS submission, which reflects full-year student attendance and course completion data.
• General Operating (State): TRS On-Behalf & Medicare Part D (GASB 24): Increased by $78,400 (14%)
o A matching revenue and expenditure entry is recorded at year-end to comply with GASB Statement No. 24. This entry reflects the amount of state funding paid directly to the Teacher Retirement System of Texas (TRS) on behalf of Westlake Academy employees. No actual cash transaction occurs within the Academy’s accounts.
o The adopted budget for TRS On-Behalf contributions is based on estimates, typically calculated as 8.25% of eligible employees’ salaries. For budget purposes, vacant positions are projected using the salary of a 15-year teacher. If a teacher with fewer years of experience is ultimately hired, the actual TRS On-Behalf expenditure will be lower than budgeted.
o TRS-Care and Medicare Part D On-behalf were not included in the original budget.
Expenditure Changes by Function
Instruction & Instructional Support
• Function 11 - Instruction: Decrease of $146,583 (2%)
o Lower substitute costs, mostly offset by staff covering vacancies during conference periods.
o Changes in the overall salary budget resulting from the implementation of Position Control.
• Function 12 - Media Resources: Increase of $16,499 (8%)
o Librarian travel, training, and professional fees & dues.
o Librarian salary and benefits not correctly budgeted initially.
• Function 13 - Curriculum & Staff Development: Decrease of $13,221 (23%)
o Reduced travel and training costs due to no participation in Reading Academy.
o Reallocation of elementary travel & training budget to purchase curriculum materials recorded under Function 11.
• Function 21 - Instructional Leadership: Decrease of $27,603 (8%)
o Reduced travel and training costs, in addition to lower costs for International Baccalaureate (IB) fees.
o Changes in the overall salary budget due to the implementation of Position Control.
• Function 23 - Campus Leadership: Decrease of $43,476 (3%)
o Changes in overall salary budget from Position Control.
o Funds reallocated for: increases in hourly staff salaries and professional/hourly employee benefits, professional development travel and training, and supplies for Elementary, Middle School, High School, and Special Education.
Student Services
• Function 31 - Guidance & Counseling: Increase of $25,302 (4%)
o Changes in overall salary budget from Position Control.
o Elimination of the Elementary School Counselor position, with salary costs reallocated to fund a contracted Board-Certified Behavioral Analyst (BCBA).
o Although costs were reduced for Occupational Therapist (OT) services and for ES Counselor travel, training, and professional fees & dues, these savings were reallocated to cover additional BCBA costs.
• Function 33 - Health Services: Decrease of $36,902 (27%)
o Salary budget changes from Position Control.
• Function 36 - Co-/Extra-Curricular Activities: Decrease of $69,021 (21%)
o Fewer chartered buses for student transportation.
o Reallocation of hourly salary and benefits from the Athletic fund.
o Inactive co-curricular clubs resulting in lower sponsor stipends.
o Unfilled coaching positions reducing athletic stipends.
Administration & Operations
• Function 41 - General Administration: Increase of $318,653 (68%)
o Costs related to SPED and general legal services.
o Increases in staff salaries and benefits.
o Higher travel and training expenses.
o Addition of a contracted PowerSchool PEIMS consultant to fill a vacancy, with funds reallocated from Function 53 (Technology).
o Funding for an operational audit of the current fee collection system.
o General liability insurance costs.
o Web hosting fees.
• Function 51 - Maintenance & Operations: Increase of $191,333 (17%)
o Higher utility costs (electricity, water, gas, internet).
o Fire sprinkler system repair and maintenance.
o HVAC repairs and maintenance.
o Janitorial services.
o Landscaping and grounds services.
o Building repairs and maintenance (roofing, painting, general repairs).
o Pest control.
• Function 52 - Security & Monitoring: Increase of $11,300 (35%)
o Increased use of off-duty officers for at-home athletic events when the SRO was unavailable.
o Increase in security monitoring and related technology costs.
• Function 53 - Data Processing: Increase of $23,519 (5%)
o Costs associated with the PowerSchool eFinancePlus update.
o Salary costs were initially under budgeted. A mid-year employee termination required additional funds to cover payout obligations.
Other Functions
• Function 61 - WAF Community Services: Increase of $42,764 (27%)
o Staff salary increases funded by the WAF (offset in revenue).
• Function 71 - Debt Service (1-to-1 iPad Initiative): No change.
FISCAL IMPACT:
The Westlake Academy amended budget will increase fund balance by $147,287.
STAFF RECOMMENDATION:
Staff recommends approval of the Westlake Academy Budget Amendment, as presented.
TOWN COUNCIL 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