Board hears detailed cash-position briefing; treasurer cites $10 million real-estate receipt, spending freeze remains

Treasurer Patrick Gallano presented the district's January 2025 financial report and walked board members through cash balances, restricted grant timing and projections, and several fund-specific issues on Feb. 24.

Gallano explained that timing of state and county receipts affects month-to-month revenue and that some funds show temporary negative unencumbered balances because reimbursements and advance real-estate tax receipts are pending. He said permanent-improvement debt payments (roughly $1.5 million annually, per his explanation) are scheduled from that fund and that the fund is sometimes allowed to show a temporary deficit because the receipts are effectively guaranteed. He told the board the district had received a large real-estate tax remittance (described in the meeting as $10,000,000) that had not yet been posted to the report but would appear in the next month's accounting.

Gallano reviewed accounts and grant funds that fluctuated month to month in January: Title I, Title II-A and Title IV project cash draws; an athletics fund that has negative balances now but is historically balanced at fiscal year end; and a turf-replacement reserve (a capital-improvement fund) with a current balance the treasurer identified as about $203,000. He said some funds are negative temporarily while the district files project cash requests for reimbursement.

Board members asked for additional variance reporting that compares month-to-month and year-to-year numbers; Gallano said he will produce variance details and a cash-actuals chart so the board can see timing effects. Several board members thanked the treasurer for the spending freeze implemented to protect payroll and vendor payments while forecasts are addressed. Gallano said the freeze was applied to nonessential items and that most athletics fundraising and team funds have continued to be accessible for routine expenses; large-ticket purchases have required review.

The board approved multiple finance items during the meeting: correction of the October 2024 check register (vote recorded by roll call), approval of the January 2025 financial report, and a resolution accepting amounts and rates as determined by the budget commission and authorizing necessary tax levies (roll call votes recorded and passed). The treasurer also recommended the board approve the treasurer's consent agenda items; the board voted in favor.

Board discussion touched on the timing of levy renewals and replacements: Gallano and the superintendent said they will consult bond counsel about the emergency levy that expires in 2026 and report back with timing recommendations. The treasurer said he will add more explanatory variance lines to future reports, and the board asked that future packets explain object-code groupings (for example, “other objects”) and provide clearer visualizations of cash receipts and expenditures.

No staff layoffs, program eliminations or immediate service cuts were announced; the treasurer and superintendent emphasized the district will prioritize payroll and vendor payments and will bring specific recommendations to the board if further actions are required.