Fremont City Schools reported a $237,000 surplus for the just‑closed fiscal year, but district financial leaders told the board on July meeting night that several state budget changes and accounting updates could affect future years.

Treasurer Stina said revenue rose about 12% while expenses rose about 16% for the year, and the district closed with roughly an 18% carryover of expenditures. "We ended the year with 18% carryover of our expenditures," Stina said. "So I was not one that was, 'oh my gosh.' This year I'm okay."

The treasurer outlined several items that could change the district's financial picture. State legislation discussed in the budget would impose a 15% cap on administrative costs for school districts; however, Stina said the state has not yet defined which expense codes will count for the cap or what penalties, if any, will apply. "They didn't define what the admin cost is. So how do you know if you're over or under because you don't even know what it is?" she said during the meeting.

Officials said being able to document why a district's administration percentage is higher will be important if the state asks for justification. Stina told the board the professional associations advising districts recommended tracking the local reasons for higher percentages so the district can "know your why. Why are your percentage up higher?"

On food service, the district moved to full Community Eligibility Provision (CEP) status this year. The treasurer said the food-service fund balance decreased by about $45,000 (from roughly $1.6 million to about $1.5 million), a reduction the district plans to sustain for a few years if reimbursements and timing do not change. "We only had to make up $45,000 this year," Stina said, describing the accounting impact of serving all students free meals under CEP.

Other fiscal details presented to the board included a one‑time commercial utility payment the district received this year (moved into a separate fund for planning), transfers into the capital projects fund (070) for building maintenance, and a transfer into a severance fund for long‑tenured employees. The permanent improvement fund covered safety upgrades, a forklift, computers, vehicles and tennis court work. The athletic fund paid for new bleachers in the auxiliary gym and related costs.

The board approved the June fiscal year financial report as item 7 on the agenda. Motion to approve: moved by Miss Lewis; second by Mrs. Bloom. Roll call votes recorded: Miss Lewis — yes; Mrs. Bloom — yes; Mr. Nalley — yes; Mr. Price — yes. Outcome: approved.

The treasurer also reported on the state's planned changes to how disadvantaged funding is calculated: for fiscal 2026 the formula will weight a district's labeled population at 75% and direct certification at 25%; future years will increase the weight for direct certification. Officials said the change was intended to smooth distortions caused by CEP status. The district encouraged families who want fee waivers to complete the district form so ODE can better determine local counts.

Finally, the board approved an appropriation change to move remaining bond/building funds into an appropriation for the Connector Building project so work and procurements can begin. Motion to approve item 8: moved by Mr. Nalley; second by Mrs. Bloom. Roll call votes recorded: Mr. Nalley — yes; Mrs. Bloom — yes; Miss Lewis — yes; Mr. Price — yes. Outcome: approved.

Board members asked staff to keep careful documentation of account coding and program justifications as the state continues to issue guidance on the new accounting codes and implementation details.

Less urgent fiscal details reported during the meeting included: salaries showing a 15% increase year over year largely because ESSER funds were written off last year; benefits down about 11%; and the district leaving $325,000 in its self‑insurance fund as a buffer against large, unplanned claims.

Treasurer Stina told the board to expect more state guidance in the fall and to maintain documentation for any explanations the state or auditors may request.