DEPARTMENT: Pre-K 4 SA
DEPARTMENT HEAD: Kathy Bruck, CEO
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Pre-K 4 SA FY 2015 Budget
SUMMARY:
During the May 14, 2014 "B" Session, staff will present the Pre-K 4 SA FY 2015 Annual Operating Budget which was adopted by the Early Childhood Education Development Corporation Board of Directors on April 28, 2014.
BACKGROUND INFORMATION:
The Early Childhood Municipal Development Corporation Board of Director approved the Pre-K 4 SA FY 2015 Operating Budget on April 28, 2014. The Corporation's fiscal year begins on July 1 and ends on June 30.
ISSUE:
City staff will provide City Council with an overview of the Pre-K 4 SA program's Board of Director's Adopted FY 2015 Annual Operating Budget. The Early Childhood Municipal Development Corporation Board of Director's bylaws, which were approved by City Council, require that the City Council approved the corporation's annual Budget on or before July 1 of each year. As stated in the Corporation's bylaws, an Annual Budget is required to be adopted by the Board by May 1 each year and approved by City Council prior to the start of the new program year on July 1. An item will be placed on the City Council May 15, 2014 Agenda for the Council's consideration of the Corporation's the Board of Director's Adopted FY 2015 Annual Budget.
Below is an overview of the Board of Director's Adopted Operating Budget for FY 2015 to include major program areas.
Operating Expenses |
Proposed Budget FY 2015 |
Administration |
$ 1,566,823 |
Public Relations / Marketing |
422,810 |
Sales Tax Collection Fee |
622,914 |
Pre-K Education Centers |
21,946,363 |
Pre-K Facility Leases |
5,159,826 |
Transportation |
966,248 |
Professional Development |
2,225,515 |
Program Assessment |
119,716 |
Transfers |
3,465,888 |
Total Budget |
$ 36,496,103 |
The FY 2015 proposed Board of Director's Adopted Annual Budget reflects a 59% increase from the FY 2014 Adopted Annual Budget. This increase reflects several major changes that will take place in FY 2015. First, Pre-K 4 SA will add two additional Education Centers on the east and west sides of San Antonio scheduled to open in August 2014. Pre-K 4 SA will accept a total of 1,500 students for the 2014-2015 school year, which reflects over a 45% increase in students from the goal for the 2013-2014 school year. Appropriations are required for the hiring of Education Center staff, food service, and other expenses required for the daily operations of each Education Center.
Second, additional appropriations are being requested to fund requirements to maintain the new facilities. Among these requests, are appropriations for additional custodial positions, funding for utility costs as well as funding for building maintenance and cleaning supplies.
Third, with the increase in enrollment for the 2014-2015 school year, additional funds will be needed to expand the transportation program. Additional depots and routes will be funded to accommodate the anticipated increase in students utilizing our transportation services.
Finally, Construction of the East and West Education Centers is funded through the issuance of a Tax Note pledged against sales tax revenues of the Corporation. As a result, the Corporation is required to fund the annual debt service payment through a monthly transfer of funds to the City.
The Board of Director's Adopted FY 2015 Annual Budget also includes two revenue enhancements. The first revenue enhancement establishes a $25/day fee for late student pickup during the program's extended day program. The second increases fees for non-sufficient funds (NSF) checks from $25 to $30 to match the City fee.
ALTERNATIVES:
The Board of Director's Adopted FY 2015 Proposed Budget will be placed on the agenda for the May 15, 2014 "A" Session. City Council could choose to not approve the Board of Director's Adopted FY 2015 Pre-K 4 SA Budget and request change to the budgets by the Corporation. In this event, the Corporation's Board of Directors would need to amend their adopted Budget(s) and forward the budget(s) to the City Council for approval.
FISCAL IMPACT:
This action will not impact the City's General Fund Budget. It does allow City Council to approve the fiscal year budgets for the Pre-K 4 SA program: the Board of Director's Adopted FY 2015 Budget.
RECOMMENDATION:
No action is required by City Council for the Board of Director's Adopted FY 2015 Proposed Budget presentation as it has been scheduled for presentation purposes only. The Board of Director's Adopted FY 2015 Budget Document will be provided to City Council at the May 15, 2014 "A" Session.