Page 320 - City of Westlake FY20 Budget

Section 8 Academic Funds
Executive Transmittal Letter

Facility Planning for Today and the Future: At the direction of the Board, we began working with a
consulting firm to evaluate our current needs for facilities and infrastructure. Staff anticipates that this
plan will be finished in the first quarter of the fiscal year and presented to the governing board for review.
Immediate needs for lab space have been identified and, based on primary boundary enrollment
projections, the facility space is being reviewed to help us plan for educational offerings and physical space
needs.

III. SHARED SERVICE MODEL

The Academy operates under a shared services model whereby the municipal operations team provides
human resources, communications, 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. The shared services model was an integral part of the state charter application
process that helped bolster the Town’s case for having a community school. This model conserves
resources and avoids the duplication of efforts across the municipal and academic functions.

MUNICIPAL ALLOCATIONS Amended Proposed $ Increase % Increase
FY 2018/19 FY 2019/20 (Decrease) (Decrease)
Municipal-Transfer to WA Operating Budget $ 209,806 $ 287,661 $ 77,855 37.00%
Annual Debt Service (Municipal budget) 1,830,961 1,835,190 4,229 00.23%
Major Maintenance and Replacement 377,182 388,407 11,225 02.98%

In-direct Operating Costs 837,873 966,144 128,271 15.31%
Total Municipal Costs $ 3,255,822 $ 3,477,402 $ 221,580 06.81%

DEBT SERVICE - As part of the Academy’s unique financial structure the Town of Westlake is responsible for
debt service payments associated with the Academy’s capital infrastructure. The Municipal Debt Service
Fund is used to manage debt service payments, and Academy debt is accounted for in the annual municipal
budget.

CAPITAL PROJECTS - Note that there are no major capital projects budgeted or planned through FY 19/20,
and there are no future Academy capital projects discussed in the Town of Westlake’s Capital Improvement
Plan. This will be updated should the Board offer direction relative to the review of the existing facility
master planning document.

IV. FY19/20 GENERAL FUND BUDGET

This budget encompasses all teaching and extra-/co-curricular operating expenditures as well as State
public school funding, local funds, and private donations used to support and enhance the daily operations
of Westlake Academy. The SY 19/20 General Fund budget totals $9,717,933, which represents an 8.90%
increase from the prior year.

It is important to note that 50% of the annual State Facilities Allotment is being held in the Academy’s
“Undesignated” fund balance and accumulates throughout the years. It is our intent that these funds be
held in reserve in the event of an emergency. $34,000 is earmarked in the Academy’s fund balance for
Athletic uniform and equipment replacement and bus maintenance.
The FY 19/20 projections will increase fund balance by $145,431 for an ending unassigned fund balance of
$1,365,217 (including the Facilities Allotment funds). This balance represents 52 operating days.

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