Grand County School District adopts revisions, shifts tax levies to rebuild capital fund

Grand County School Board members on Wednesday approved final revisions to the district's 2024–25 budget, adopted a tentative budget for 2025–26 and moved forward proposed tax rates that shift revenue from the debt levy into the capital levy while lowering the district's overall tax rate.

The actions followed a presentation by the district's finance staff showing only modest changes from the March budget revision, then a proposed 2025'26 budget that uses fund balance and a levy shift to pay down debt and restore capital reserves as HMK construction finishes.

Hamilton, who presented the financial materials, said the district expects to finish the fiscal year with roughly $14.2 million in overall fund balance, down slightly from an earlier projection. "Our overall fund balance is gonna — we anticipated it to be about 14,500,000.0. We're gonna close about 14.2," Hamilton said. He told the board the change was largely by design to cover salaries, benefits and one-time costs tied to construction and technology.

The board voted 5-0 to approve the district's budget revision for fiscal year 2024'25 and to approve proposed tax rates and the tentative 2025'26 budget subject to the truth-in-taxation process and final rate certification. Board members who made and seconded motions included Jenna Woodbury (mover) and Laura Lee Green (seconder) for the public hearing motions; the votes on final revisions and tentative budgets carried unanimously.

Why this matters: the district is moving to reduce the debt levy and increase the capital levy to rebuild capital reserves that will be largely depleted once the HMK remodel bills arrive. Hamilton said the shift reduces the district's overall tax rate by roughly 4.5 percent for the average taxpayer because the assessed valuation increases offset much of the levy change, though individual homeowners may see different results depending on county appraisal timing.

Key details - Fiscal-year 2024'25 revision: Revenues and expenditures changed only slightly from March's revision; local revenues rose a little while some one-time state revenues (e.g., safety and other one-time funding) fell. Hamilton told the board "we're gonna close about 14.2" million in fund balance.

- Tentative 2025'26 budget: The district projects about $1.5 million less revenue next year compared with 2024'25, largely because one-time federal and state funds (ESSER, safety grants, other one-time allocations) have expired. The proposed budget anticipates drawing roughly $700,000 from fund balance by design in 2026 as the district smooths the transition.

- Levy shift and tax-rate impact: Board discussion focused on moving $750,000 out of the debt levy and adding roughly $550,000 to the capital levy to rebuild capital reserves after HMK construction. Hamilton said the net effect is a projected 4.5 percent reduction in the district's overall tax rate; "At the end of the day, we're dropping our rate by 4 and a half percent," he said. The board approved proposed rates, which triggers required truth-in-taxation notices and hearings.

- Debt and capital: Hamilton told the board the district expects most current capital reserves to be spent on the HMK remodel; rebuilding the capital fund is a priority because the district faces continuing facility needs. The board discussed a 10-year facilities plan and the need to hold capital funds for future projects.

- Votes and next steps: The board approved the FY24'25 budget revision (5-0), approved proposed tax rates subject to the truth-in-taxation hearing (5-0), and approved the tentative FY25'26 budget subject to final tax-rate certification (5-0). The truth-in-taxation schedule will govern final adoption and required public notices.

Food services and collections: Hamilton and staff reported ongoing challenges with school meal program losses and parent account collections. The district had a large outstanding collections balance (roughly $136,000 cited for meal accounts), stemming in part from a PowerSchool transition that limited parent access to balances and from program costs that exceed student meal charges. Hamilton said the district is working on centralized purchasing, commodity use and collection campaigns; he estimated an initial high-end shortfall scenario but said some costs are overestimated and staff are pursuing operational changes to reduce the deficit.

What the board directed: board members approved the budget motions and asked staff for follow-up details on the final tax-rate certification and requested ongoing monthly updates on capital expenditures tied to HMK construction and on child-nutrition collection and cost-reduction plans.

Ending: The board's tentative budget and proposed tax rates now move into the required truth-in-taxation process; final adoption will follow rate certification and the public hearing timeline.