LATC Reports Strong Revenues and Stable Cash Position in May Financial Update
- Steve Jurrens
- 4 days ago
- 2 min read
Northeast Radio SD News – Watertown, SD - Lake Area Technical College reported strong revenues and stable cash flow during its May 2026 financial period, according to a detailed update presented to the Watertown School Board. The report covered general fund activity, special education spending, K‑12 nutrition services, LATC enterprise operations, and the employee benefit trust.
Watertown School District Business Manager Heidi Clausen highlighted a mix of routine expenditures, seasonal revenue inflows, and strategic fund‑balance management as the district approaches the end of the fiscal year.
The district received its first major distribution of 2025 taxes payable in 2026, totaling $10.4 million across the general, capital outlay, and special education funds.
In the special education fund, disbursements for the month reached $805,000, reflecting typical staffing and service costs. The fund ended May with a $2.8 million cash balance, which administrators expect to rise once pending federal reimbursements arrive.
“Maintaining an appropriate fund balance position allows the district to maximize eligibility for state aid funding in fiscal year 2027,” Clausen noted.
Board members asked whether the district was nearing any state‑imposed limits on cash reserves. Administrators clarified that K‑12 nutrition services are the only area with a cap.
“There is for K‑12. Lake Area does not have that limitation, but K‑12 is three months of the prior year’s operating expenditures,” Clausen explained. When asked what that number would be, the response was clear: “Around $700,000… we’re at $200,000, so we’re a long ways from that.”
K‑12 Nutrition Services Shows Improved Financial Position
K‑12 nutrition services reported $183,000 in revenue, exceeding expenditures for the month and raising the ending cash balance to $204,000, an improvement over last year.
Careful staffing and food‑purchase management: “The improved financial position reflects continued efforts to effectively manage staffing levels and food purchases in alignment with budget expectations and operational needs.”
Lake Area Technical College reported $4.8 million in revenue for the period, including:
· $3.2 million in state aid
· $200,000 in federal revenue through the Manufacturing Technology Program
Total disbursements were $2.9 million, leaving LATC with a $10.9 million cash balance, consistent with the prior year.
“The strong cash position provides flexibility to meet operational needs while maintaining alignment with budgeted expectations,” Clausen said.
Enterprise funds — including the bookstore, Educare, and food service — were described as “strong and appropriate to maintain their respective operations.”
The employee benefit trust experienced a month where claims and administrative costs exceeded premium revenues, resulting in a $116,000 decrease in fund balance. Even so, the trust ended the month with $3.6 million, which remains higher than the same period last year.
Board Discussion: Cash Limits, Federal Funds, and Stability
One member, Jean Moulton, asked whether LATC or K‑12 nutrition services faced restrictions on how much cash they could hold. “Lake Area does not have that limitation,” Clausen confirmed. “K‑12 is three months of the prior year’s operating expenditures.”
No Board Action Required
Unlike many other agenda items, the financial report did not require a vote.
