By SUSAN RUMBLE

Special to The Press

Parkland School Board directors approved the proposed $230,387,002 budget for the 2023-24 term at their May 16 meeting.

The vote was 8-0 in favor. Patrick Foose was absent.

Director of Business Administration Leslie Frisbie reported budgeted expenditures are $225,387,002 and anticipated revenues are $217,339,613. She said an additional $5 million would be transferred from the district fund balance to the capital reserve fund bringing total budgeted expenditures to $230,387,002.

Frisbie stated the one time transfer to capital reserve has to be authorized by the board through the budget process and is added to the total budgeted expenditures. That action had to be authorized by the board and was therefore added to the amount for total projected expenditures to be approved.

She noted expenditure costs have increased 6.5 percent over the previous term, but revenues went up only 2.9 percent, resulting in a shortfall of $8,047,398 before the proposed tax increase. With a 2.5-percent tax increase, the deficit comes down to $4,467,809. That amount will be covered through the fund balance. With the additional budgeted transfer of $5,000,000 to capital reserve, the total estimated use of fund balance will then be $9,467,809, which includes the amount for the capital reserve fund. Under the proposed document, the rate of taxation will increase from the current 15.90 mills to 16.30 mills. The owner of the average Parkland residential property assessed at $247,502 would have a tax bill of $4,034, a $98.38 increase over the present rate.

Frisbie said the major budgetary expenditure increases, totaling $9 million which affect the 2023-24 budget, comes from salaries, benefits, special education services and tuition for charter schools. She also commented on the $5 million transfer to the capital reserve fund.

“This is part of our long term financing plan for capital improvements. It is a mechanism for funding,” Frisbie said. “We can use some of this for smaller capital projects and have less dependence on borrowing.” She said the capital reserve fund will help limit the impact of new debt service on the general fund budget in future years.