Photo by Jon Anderson
The Hoover City Schools flag flies outside the Farr Administration Building in Hoover, Alabama.
Hoover school officials plan to present a proposed budget for fiscal 2023 in two public hearings in September.
The first hearing will be Sept. 8 at noon, and the second will be Sept. 13 at 4:30 p.m., just prior to the Hoover school board’s regular September meeting at 5:30 p.m.
The budgets are due to the Alabama Department of Education by Sept. 15, so Hoover City Schools Chief Financial Officer Michele McCay is asking the school board to approve a budget on Sept. 13.
The budget approved for fiscal 2022 included expenditures of $229 million and revenues of $221 million. With about $800,000 in additional net funding sources, that would have meant the school system would be pulling about $7 million out of its reserves for fiscal 2022.
Actual expenditures for fiscal 2022 were at $153 million as of June 30, and actual revenues were $181 million, with three months left in the fiscal year. As of June 30, the school system had about $148 million in its overall fund balance, which is enough to cover 10.8 months of expenses.
McCay said she likes for the system to keep at least 5 months’ worth of expenses in its fund balance to keep bondholders happy. School officials watch those numbers carefully as they plan and approve capital projects.
The school board in June approved a plan to spend $75 million on capital projects over the next six years, including $12 million for theater upgrades at Hoover and Spain Park high schools and $4.5 million for a 10-classroom addition at Bluff Park Elementary in fiscal 2023 and $25 million for a new elementary school predicted to open in the fall of 2029.
However, the new theater for Hoover High School alone ending up costing $15.4 million, so school officials will continue to evaluate their ability to afford future capital projects and maintain a healthy fund balance.
