District finance staff told the Davenport Community School District board that the fiscal-year ending balances remain healthy but reflected the expected use of one-time funds and planned projects.

Kevin, a district finance presenter, said the district ended the fiscal year with an approximately $50 million ending fund balance and that the year-to-year cash position decreased by about $7.5 million. He reported an unspent authorized budget (UAB) ratio of about 18.5 percent and a solvency ratio of 24.2 percent, and he explained those figures reflect a move to spend down prior ESSER-funded purchases and other capital projects.

Why it matters

The UAB and solvency measures gauge how much of the district’s tax-authorized budget remains unspent (authority) and whether the district has cash reserves for operations and projects. Staff said the district expects to continue moving toward spending its budget authority as multi-year projects and capital work proceed.

Supporting details

• Fund and account movements: Finance staff said federal ESSER funds were heavier in FY23–24 than FY25, and the reduction in ESSER-related carryover contributed to revenue changes. Supplies and materials purchases tied to curriculum purchases in prior years were lower in FY25. A $1.0 million audit adjustment related to E-rate timing affected the reporting for one line item.

• Debt and capital: Staff reported the district’s first $80 million project loan is drawn down (approximate balance $42 million remaining) and that the board may consider a second $80 million borrowing in March 2026 for planned facilities projects. The sales-tax fund showed declines tied to project transfers to debt-service accounts.

• Other funds: The internal service (self-insurance) fund balance was about $20 million, and the nutrition fund balance was adjusted downward after a state audit recommendation. Staff said some food-service capital projects will reduce that fund balance further as planned kitchen work proceeds.

Board questions and next steps

Board members asked clarifying questions. Staff said the district will continue multi-year forecasting (five-year outlook) and monitor solvency; they expect to request appropriate authority and present agenda items related to planned borrowing and project funding in future meetings.

Ending

Finance staff described the fiscal position as “healthy” while noting planned spending on capital projects and timing differences that will affect reported balances over the next two fiscal years. The board asked staff to continue reporting key measures and to provide details on upcoming borrowing and project timelines.