Flagler board approves 2025–26 annual financial and cost reports; general fund ends $11.2 million

The Flagler County School Board voted unanimously to approve the district's 2025'26 annual financial report and cost report at a special meeting, after finance presenter Patty Womack reported the district's general fund balance at $11,200,000, an unassigned balance of $10,200,000 and a financial condition ratio of 7.8%, within the board's 5% to 8% policy range. The board's action, made by Ms. Ruddy and seconded by Ms. Ramirez, passed without dissent. Womack said the submitted report will be filed with the Department of Education this week. Womack told the board the district used several strategies over the past year to build reserves, including holding open positions and not refilling certain roles, asking departments to take a 4% reduction in their budgets, and shifting capital and sales-tax resources where allowable. "Our general fund, fund balance is at 11,200,000.0. The unassigned amount is 10,200,000.0," Womack said during her presentation. Womack also described the district's major funds. Fund 290 is the debt service fund, she said, and the district continues to pay down about $5,000,000 of debt each year. She reiterated that the district refinanced its certificates of participation in 2024, producing about $700,000 in savings. Fund 370 (the 1.5-mill levy/half-cent sales tax and impact fees) remains healthy and is expected to grow as the Matanzas expansion project nears completion; impact fees will be used only for future expansions. Other governmental funds covered by the report include the school food service fund, which Womack said closed with a fund balance of zero, and smaller capital and debt funds. Womack noted an HVAC failure at FPC that cost about $6,000,000 and was not preapproved as an example of why the district keeps a significant fund balance for emergencies. Board members and staff emphasized the practical effect of the reserve: with roughly $5,000,000 per payroll, the 7.8% ratio provides a bridge for two payrolls and avoids reliance on short-term borrowing. Womack said the district has not taken out a tax anticipation note since 2021; previously such notes were commonly taken each summer (historically $10,000,000) and cost about $100,000 in interest annually when used. The board also discussed the school food service program and the sustainability of districtwide free breakfast and lunch if federal direct-certification numbers fall. Womack and other speakers said the district has about one year left under the current federal/grant arrangement and that the board will have to consider program models going forward. One option discussed was using two models within the district so some schools remain free while others return to paid or reduced-price meals; staff said families would receive advance notice of any change and that a new food services director starts Oct. 1 and will take on implementation. Womack said budget transfers and year-end revisions for June are required to close the fiscal year and that the electronic EFC and cost reports (ESE 348 and related forms) will be submitted through DOE's portal. With the board's approval, the district will finalize the submissions. No public commenters addressed the item at the meeting. The board chair and several members commended staff for the results and for avoiding the need for short-term tax anticipation borrowing, saying the interest savings can be redirected to instructional priorities. The board did not take other policy actions on cafeteria pricing at the meeting; members said further discussion and more detailed options will be brought forward as the district closes the fiscal year.