Acton-Boxborough Regional School District Management’s Discussion and Analysis June 30, 2024
The District adopts an annual budget for the General Fund in conformity with the guidelines described above. The original 2024 approved budget for the General Fund authorized $106.7 million in appropriations, which includes $762,000 of encumbrances carried over from the prior year. The District approved supplemental appropriations totaling $364,000 during the year. Actual revenues were $469,000 more than budgeted, which was principally due to investment income coming in higher than expected. Actual expenditures plus encumbrances were $505,000 under budget. This was due to the net effect of various line-items being over/under budget. The most significant line-items that were under budget were classroom and specialist teachers, instructional materials, programs with other districts and capital outlay. Capital Asset and Debt Administration At June 30, 2024, the District had $70.3 million of outstanding long term debt, bearing interest rates ranging from 2.0% to 5.0%, maturing through 2050. The “coupon” rates for these bonds, in particular the bonds issued (with a significant premium) in March 2020 to fund the Douglas & Gates elementary school construction project, are higher than the effective interest rate on the borrowed funds. During the year, the District incurred $5.4 million of expenditures that qualified for capitalization. This included construction costs related to the Douglas & Gates elementary school, right to use leased school busses, machinery and equipment, vehicles, and improvements. The District has been approved for a $38.0 million capital grant from the Commonwealth’s school building assistance program for the Douglas & Gates elementary school construction project. Under this program, assistance is paid to support construction costs and reduce the total debt service of the District. The MSBA has approved a 49.70% reimbursement rate for approved construction costs. The District has recorded a receivable totaling $1.0 million related to reimbursable costs incurred in 2024.
Please refer to Notes 4 through 7 for further discussion of the capital asset and debt activity.
Requests for Information
This financial report is designed to provide a general overview of the District’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance and Operations, Acton-Boxborough Regional School District, 15 Charter Road, Acton, MA 01720.
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