Page 285 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 8
Westlake Academy Fund Overview

Westlake Academy has experienced steady enrollment growth from 491 students in FY 09/ 10 to a projected 876 in FY
18/ 19. The current increase of student population is a result of the Phase I expansion efforts on the Academy campus
and our development. Our growth requires that we carefully manage our student enrollment processes to provide
adequate space for children of Westlake residents.

Approximately 39,000 sq. ft. of new facilities space was opened on campus in FY 14/ 15. It was comprised of a
secondary classroom building, field house, and a primary years’ multi- use hall. These buildings increased our capacity
and allowed for decompression of our current school facilities. The lottery waiting list for student admissions from our
secondary boundaries continues to grow from 705 in 2011 to approximately 1,988 students for this coming school
year.

2. Public Education Funding Shortfall: State funding of public education was decreased by the State Legislature in 2011.
While it has increased somewhat since then, the allocation has not kept pace with basic cost increases. And, in the
Legislature’ s most recent 2017 session, the per student funding for public education was not increased for the next
biennium. This negatively impacts Westlake since, as a charter school, we receive approximately 82% of our
operational funding from the State. The municipal government continues to allocate significant resources to the
school to deal with State funding limitations, maintain high quality educational services, provide for the Academy’ s
facilities and support services, as well as preserve space for the children of Westlake residents.

Additionally, the Westlake Academy Foundation (WAF) raises significant operating funds for the Academy, without
which the school could not operate.

3. Staffing Levels, Insurance Costs, and Retention: Our investment in the school must be facilitated in tandem with
staffing considerations to maintain our dynamic teaching teams and be competitive with our surrounding school
districts. This includes keeping our compensation/ benefit package competitive to attract and retain excellent
employees. For the 18/ 19 budget year, in accordance with the Board’ s financial policies regarding Academy employee
compensation, Staff recommends an average 3% salary increase for the Academy faculty and staff. This is in addition
to maximizing efficiencies and processes that will control large expenditure drivers such as employee health insurance.

4. Continued Emphasis on Long- Range Financial Planning: This budget contains an updated Long- Range Financial
Forecast which identifies key revenue and expenditure drivers while assessing historical financial trends and their
potential impact upon the town’ s financial stability. The forecast must be monitored and updated during the budget
formulation process, as well as reviewed with the Board of Trustees as the budget is prepared. Staff will also continue
to produce quarterly financial reports for the Board that monitors and analyzes trends. The report serves as a valuable
tool to assist in developing a proactive, rather than reactive, approach to our changing financial trends.

OUR REGIONAL CHALLENGES:
5. DFW Metro Area Employment and Population Growth: Since 1970, the Dallas Fort Worth Metroplex has grown by
more than 150% - a faster pace than the state and nation. At 9,500 square miles, it is larger in total area than 5 of our
states. With a population of nearly 7.2 million, it is the fourth largest metropolitan area in the country. Forecasts
from the North Central Texas Council of Governments ( NCTCOG) predict employment to grow, in this 12-county
standard metropolitan statistical ( SMSA) area, by almost 70% over the next 30 years. Population growth over this
same 30-year period is also forecasted to be 69%. This regional growth will impact Westlake and the demand for
enrollment opportunities at the school.

III. SHARED SERVICE MODEL

The Academy operates under a shared services model whereby the municipal operations team provides human resources,
financial, facilities, and administrative support services to the school. General maintenance and replacement of infrastructure
and equipment for the school is also expensed to the municipal budget.

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