RO Board approves ’23 budget

The Red Oak School Board has finalized and approved its 2022-23 FY budget.
A public hearing to discuss the budget proposal took place at the board meeting on March 28. No oral or written comments were received.
Board secretary Deb Drey outlined key details from the budget. Expenditures in 2023 were expected to increase to $18,938,648, up from proposed expenditures in 2022 of $17,610,994.
“There’s a big jump in the sales tax and facilities fund. We have to pay for the revenue bonds out of the local option sales tax. In the past, we have not put that in as part of the budget. I contacted the auditors, and they said that for transparency, we should put the put that money in the proposed budget,” Drey explained.
The other major expenditure was $675,947 in the district’s general fund. Revenues were expected to remain virtually unchanged, $19,129,153 for 2023, vs. $19,136,952 in 2022. Lastly, property tax projections for 2023 were decreased by four cents, to $15.4070 per $1,000 valuation from $15.4496 per $1,000 valuation in 2022.
The board also approved a resolution authorizing the redemption of general obligation school bonds, series 2018, dated Aug. 28, 2018, and approving the first amendment to the escrow agreement. Superintendent Ron Lorenz said this was part of a desire to prepay on the bonds.
“In order to levy funds to prepay those bonds, we have to pass a resolution and file it with the county auditor. Proceeds of the debt service levy have to be invested in an escrow, and that escrow matures on June 1, 2025, the call date of the bonds. The proceeds of the escrow can then be used to pay on that principle,” said Lorenz.
The board approved the resolution authorizing the redemption of general obligation school bonds, series 2018, dated Aug. 28, 2018, and approving the first amendment to the escrow agreement.
The board also discussed some space limitations currently being faced at Inman.
“One of the biggest challenges we face is a lack of space at Inman. Our enrollment has been up, and that’s a great thing, but we’re kind of busting at the seams, and that has an impact on a lot of different issues,” Lorenz commented.
Inman principal Jane Chaillie said they have worked hard to repurpose space, but they are running out of options.
“When we look at next year, we will have a sixth grade class that leaves Inman [and it]            is a three-section group. Unless something significantly changes, the preschool group coming in will have to be in four sections,” advised Chaillie. “Currently we don’t have any open classroom space or office space at Inman. The only room not currently being used right now for student space is our collaboration space.”
Lorenz said even if the district could start a construction project now, it wouldn’t be complete in time.
“At this point, I think we’re probably looking at repurposing additional learning space to accommodate that additional section of students moving to kindergarten,” Lorenz said.
Lorenz added he was not in favor of taking back space currently being used for early childhood development out of the Washington Intermediate building, feeling in the long term, it would do the district more harm than good.
 Lorenz said the item on the agenda was purely for discussion purposes, and no action could be taken at the meeting. It was decided to revisit the issue of classroom space at the board’s work session at the end of April.

The Red Oak Express

2012 Commerce Drive
P.O. Box 377
Red Oak, IA 51566
Phone: 712-623-2566 Fax: 712-623-2568

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