DEPARTMENT: Pre-K 4 SA
DEPARTMENT HEAD: Kathy Bruck, CEO
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Pre-K 4 SA FY 2015 Budget
SUMMARY:
An Ordinance considering City Council approval of the Pre-K 4 SA program FY 2015 Annual Operating Budget adopted by the Early Childhood Education Development Corporation Board of Directors on April 28, 2014.
BACKGROUND INFORMATION:
City staff provided City Council with an overview of the Pre-K 4 SA program's FY 2015 Annual Operating Budget during the May 14 "B" session. The Early Childhood Municipal Development Corporation Board of Director's bylaws, which were approved by City Council, require that the City Council approve 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 before May 1 each year and approved by City Council prior to the start of the new program year on July 1.
ISSUE:
The Early Childhood Municipal Development Corporation Board of Director approved FY 2015 Operating Budget on April 28, 2014. This item is for City Council's consideration of the approval of the Corporation's FY 2015 annual operating Budgets.
The Pre-K 4 SA fiscal year begins July 1 and ends June 30 of each year.
Below is an overview of the 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 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 serve 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 added 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 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:
City Council could choose to not approve the FY 2015 Pre-K 4 SA Budget and request changes 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 FY 2015 budget.
RECOMMENDATION:
Staff recommends the City Council approve the FY 2015 Annual Budget as recommended and adopted by the Pre-K 4 SA Board of Directors on April 28, 2014.