William discussed April's budget.

Bottom line is we have a surplus at this point.

Coverage Ratio Discussion:

Currently at 0.84, expected to be closer to 0.9 in near future, with lowering expenses.

(required ratio - 1.10)

Alyson: Bond holders are expecting full bond payments.

They're hiring their own consultant to verify all we've told them is true.

They'll be 'assessing the strength of SRCA and our partner organizations."

William suggested we tell them that we're going to finish the year below 1.0

Alyson: They should know this, from the budget we sent them already.

We have 70 days cash on hand (required = 45 days)

Testing: On June 30 each year.

Travis: Summer will cause the cash on hand to lower, but then back up when school begins again.

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Regarding FY 26/27 budget:

Alyson:

1. We've cut 1.3 million + off previous budget

2. ADM = 400,but working on 500+ income.

3. We made deep cuts

4. We will strive to not go over budget in next school year.

5. We went from >1 million deficit to ~200k surplus

6. The budget will flex (staff changes mostly), and we'll keep an eye on it through the year, and ensure we continue to be in balance.

William: 

Do we need to budget >10k for advertising?

Travis: likely we do.

Alyson: We're getting marketing/advertising help, but will need to hire a marketing firm.

William: cost is b/w 30-50k

We will budget for 50k, and aim to come in under.

If we need supplies this year, we may need to ask NEST to do supply drive(s).

Will need 9grades x $1,700 = $16,300

William: re: Lunch Program: Is our budget accurate?

Ben: Working to get reimbursed for spending. He's confident our out of pocket will go down possibly to 0 (not likely). In other works, the low number is in a good range.

William:

What do contingency plans look like?

Ben: No capital improvement scheduled.

Where are expenses shown for shutting down Dellwood?

Also, we need to increase expected contracted custodial services by ~20k (lost salaried, will need to contract another) This is actually a decrease from last year, as we're letting go Dellwood contracted custodial.

IF NEEDED, we can do a budget amendment mid-year.

Alyson: Bondholders do need to approve the sale of modulars. We can go to potential buyer & get an offer & clear by bondholders or we can come up with a price, and approve it with bondholders.

The appraisal is 3x as much as what the modulars will actually sell for.

(appraised = $85/sq ft. New modulars = $70/sq ft. Selling these used = $30 sq/ft

Butch will be asked to contact someone who can perform an appraisal to compare.