Iowa City CSD finance director reports healthy capital balances, $6.9M projected unspent operating budget for FY25

The Iowa City Community School District presented its third‑quarter financial report at the June 10 board meeting, showing capital reserves sufficient to support upcoming facilities work and a projected unspent operating balance of roughly $6.9 million for fiscal year 2025.

Finance Director Adam (last name not provided) told the board the cash‑basis report explains why receipts often lag expenditures because many revenues arrive as later reimbursements. He drew attention to two capital funds: SAVE, with a Q3 balance of about $12 million, and PEPL with about $17.2 million; both will fluctuate as summer project spending occurs.

“For fiscal year 25, that is $6,900,000,” Adam said, describing the district’s unspent authorized budget amount used in multi‑year forecasting. He said that figure is slightly down from the Q2 projection but is within expectations given conservative forecasting assumptions.

Adam said the district’s forecast assumes an average enrollment decline of about 0.4 percent per year over a five‑year horizon and a 2 percent state support assumption (SSA) for revenue growth. He described several factors that supported a stronger cash position than originally forecast: mid‑year staffing savings, unfilled positions through attrition and conservative forecasting of savings.

The finance presentation also flagged two temporary negative balances that will resolve by year end: the capital projects general obligation balance (planned to reclassify into SAVE/PEPL) and the school‑based health clinics fund, which expects a disbursement from the Community Foundation of Johnson County.

Adam said the district expects expenditure growth for the fiscal year to finish near 3.75–4 percent, driven largely by special education and English language learner program costs that will be offset by authority and reimbursements. He said the district is monitoring state proposals affecting management fund growth limits and other fiscal policy changes at the state level.

Directors asked about the enrollment projection used; Adam confirmed he used the board‑recommended projection labeled “recommended.” Board members followed up on how savings were achieved and how the unspent balance accrued; Adam said cumulative savings from staffing and conservative assumptions led to the improved position.

Board members asked for continued updates as FY25 closes and future years’ forecasts are refined.