ANCHORAGE SCHOOL DISTRICT
ANCHORAGE, ALASKA

OTHER FUNDS

Food Service Fund— This fund is used to budget and account for operations of the Student Nutrition Program. The budget for this fund covers both the direct and indirect cost of providing meals to students. These costs include all payroll costs, including increased hours for staff, food costs, the cost of support services, equipment repair and replacement costs, and overhead charges. The FY 2004-2005 budget has been increased from $13.363 million to $13.785 million to accommodate the opening of South Anchorage High School, employee-negotiated contracts, the mandated classified retirement increase from 9.25 percent to 14.25 percent, upward movement in food costs, and any adjustments to the indirect cost rate.

The revenue sources for the Food Service Fund budget includes revenue from meal sales, Federal reimbursement for meals served, and the undesignated fund balance. This budget projects increases in meal sales and reimbursement revenue.

The Administration is recommending the use of Food Service Fund fund balance for the FY 2004 2005 Food Service Fund budget. The undesignated fund balance for the Food Service Fund as of June 30, 2003 was approximately $1.213 million. Of this amount, $319,550 was approved in August 2003 to support the FY 2003-2004 Food Service Fund budget. Use of the undesignated fund balance of $225,000 is being recommended to support the FY 2004-2005 Food Service budget. This will leave an approximate amount of $668,100, which is 4.8 percent of the FY 2004-2005 Food Service Fund budget as presented in this memorandum. These projections do not reflect any changes in the meal prices and it is projected that no local tax support will be required for the Food Service Fund in FY 2004-2005.

Debt Service Fund— This fund is used to budget and account for principal and interest payments on existing school bonds as well as the revenues necessary to fund these expenditures. Some of the District’s bonds receive State debt reimbursement, which varies depending on the year in which the bond proposition was approved. Due to savings incurred from the sale of new bonds at lower than anticipated interest rates and refinancing outstanding bonds, the District was able to use $11.5 million of fund balance as a revenue source in current year and has included in the FY 2004-2005 projections the use of $3.4 million of fund balance as a revenue source, thereby reducing the amount of local taxes. In addition, approximately $100,000 will be transferred from General Fund State Pupil Transportation revenues for 20 buses that were funded by April 2002 and April 2003 bonds. Potential bond propositions for April 2004 have not been included in the projections.

Local / State / Federal Projects Fund— Expenditures in the Local/State/Federal Projects Fund are offset by matching revenues. The District continues to be successful in increasing grant funding from various State and Federal agencies and other sources. Revenues available through grants for these projects include competitively awarded grant funds—most of which are subject to Federal and State annual appropriations. It is projected that budgets for FY 2004-2005 grants may increase approximately $1 million based on discussion with the grant writers and the amount of grants already received this year.

PERTINENT FACTS

THE BUDGETING PROCESS

BUDGET DEVELOPMENT

STUDENT ENROLLMENT PROJECTIONS

GENERAL FUND

• Revenues
• Expenditures

OTHER FUNDS

FISCAL YEAR BUDGET COMPARISON

STUDENT ENROLLMENT PROJECTIONS

SUMMARY