WESTPHALIA  —  Fatima R-3 board members last Wednesday adopted the 2023-24 budget, which shows a surplus of $600,000.

However, Superintendent Chuck Woody cautioned that the surplus would come from the tax levy approved in April.

“That money is already earmarked for building projects and improvements,” he added, noting that without the new levy, the district would be in the red by $80,504 based on calculations with the old levy. “As we discussed last year, we knew our fund balances were going to rise a little, and we were comfortable spending some of those down.”

Woody also said that while he is projecting a $600,000 surplus at the start of the year, the district will not end near that figure by the end. “We will begin to incur costs this fiscal year for construction of the administration/maintenance building,” he added.

He projected revenues of $10,755,800 and expenditures of $10,236,304, with some unknown amounts with the project.

Woody projects a solid balance at the end of the year because the school received a significant amount in Coronavirus Aid, Relief, and Economic Security (CARES) Act Funds.

Fatima should be able to finish the fiscal year on June 30 with a maximum transfer to Fund 4, which would give the school nearly $800,000 for the building project.

A portion of the CARES money was used to purchase four buses to upgrade the fleet. “While final amounts are not finished yet, we are set to end this fiscal year in a very good position,” Woody said.

Fatima also took on much-needed $350,000 in additional expenses this year to increase teacher and support-staff salaries, along with the health insurance premium increase. The school added two positions to meet Continuous School Improvement Plan (CSIP) goals, which added more than $100,000 to the budget.

“While we were going to see an increase in revenue simply from assessed valuation increases, we have more than spent that money,” said Woody. “I again want to caution you that this budget will be somewhat fluid, as will the next year or two as we dive into the building project. We have set aside funds for the project, but it will quite possibly show a deficit expenditure to close out a fiscal year as we are paying cash for parts of the project.

“We cannot look at this budget with a major surplus and feel we can go on a spending spree,” Woody continued.

Fatima’s approved 65-cent building levy will be used for the project. When completed, the levy will transfer to the payment of the building over the next 20 years.

A budget breakdown shows total revenues of $10,755,800, including local taxes of $6,600,010, state revenues of $3,080,290, federal income of $610,500, and county revenues of $545,000.

Expenditures totaling $10,236,304 include high school ($1,774,380), elementary ($1,564,707), summer school ($81,355), gifted ($72,055), special education ($957,854), Title programs ($130,599), Early Childhood Special Education ($73,344), vocational ($434,380), student activities ($204,125), extra-duty stipends ($164,060), tuition - other districts ($285,000), guidance ($226,325), nurse ($89,755), speech therapy ($113,465), professional development ($19,815), library ($185,350), technology ($126,150), board of education ($178,250), executive administration ($406,675), building principal ($535,225), plant operations ($665,350), contracted services ($770,350), transportation ($50,270), food service ($530,075), parents as teachers ($36,660), preschool ($337,010), non-public ($41,420), lease purchase principal ($170,000), and lease purchase interest ($12,320).

Remaining business will be presented next week.