Watertown School Board Reviews August Financial Report, Lake Area Tech Revenue Tops $7.7 Million

Northeast Radio SD News – Watertown, SD - The Watertown School Board on Monday received the August 2026 financial report, with Business Manager Heidi Clausen detailing routine early‑year cash‑flow patterns, federal reimbursements, and significant revenue activity at Lake Area Technical College.

Clausen noted that several district funds experienced lower cash balances compared to the prior year, but all remained aligned with budget expectations and planned spending cycles.

General Fund Ends Month at $5.2 Million

The General Fund recorded $1.6 million in revenue and $2.3 million in expenditures, a pattern Clausen said is typical early in the fiscal year.

“Monthly expenditures exceeded revenues as anticipated due to the timing of annual operating expenses and tax remittances,” she told the board.

The fund ended August with a $5.2 million cash balance, slightly lower than last year but consistent with budget priorities.

Capital Outlay Fund Supported by Temporary Transfer

Capital Outlay revenue totaled $34,000 for the month. Clausen reported that a temporary $1.5 million transfer from the General Fund was made to support cash flow until property tax revenue arrives in November.

“The temporary transfer will provide sufficient cash flow to meet ongoing project payments and will be repaid once the November property tax revenues are received,” she said.

The Capital Outlay Fund ended August with $791,000 on hand.

Special Education Fund Reflects Planned Drawdown

The Special Education Fund received $385,000 in revenue, including $220,000 in IDEA federal reimbursements. The ending cash balance was $2.3 million, lower than the prior year but “reflective of the planned use of available funds throughout the year,” Clausen said.

Lake Area Tech Reports $7.7 Million in Revenue

Lake Area Technical College saw a strong month, with $7.7 million in revenue and $2.6 million in expenditures.

Key revenue components included:

·         $3.2 million in first‑quarter state aid

·         $2.2 million in tuition

·         $150,000 in contributions from Reliabank and Sanford

Clausen noted that state aid arrived in September last year, making this year’s cash balance appear higher in comparison.

A new LATC campus plan sub‑account has been established to set aside funds for future renovations and maintenance facility construction. LATC ended August with $11.8 million, higher than the same period last year due to timing of reimbursements and designated capital reserves.

Enterprise Funds and Employee Benefit Trust Stable

District enterprise operations reported moderate activity and maintained sufficient balances for ongoing operations.

The Employee Benefit Trust posted a modest operating gain, with premium reserves exceeding claims and administrative costs. The trust’s cash balance increased by $86,000, ending the month at $3.7 million, higher than the prior two years.