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District projects multi-year deficit, sells bonds and approves Rodan leaseback for office modernization
Summary
Trustees heard a preliminary 2025-26 budget showing a planned drawdown of reserves and a projected $5.3 million deficit; the district sold Measure P bonds and refunded Measure I, and the board approved proceeding with Rodan Builders as leaseback contractor for the district office modernization.
Belmont-Redwood Shores School District officials projected a multi-year budget deficit while presenting the preliminary 2025-26 budget, reported a successful bond sale and moved to select a leaseback contractor for the district office modernization project.
Chief Business Official (CBO) Matsumoto told the board the district is forecasting a $5.3 million deficit and plans to draw down reserves to sustain current per-pupil spending while enrollment declines. "We are forecasting a $5,300,000 deficit," the CBO said, adding that although the district continues to deficit-spend, leaders believe the district remains in a manageable position if spending is carefully monitored.
Why it matters: The budget preview affects staffing and program decisions and frames trustee choices about long-term fiscal sustainability. Staff emphasized two concurrent pressures: declining enrollment that reduces some per-pupil revenues and continuing state-mandated increases in employer retirement contributions (CalSTRS and CalPERS) and other statutory costs.
Bond sale and refunding: District financial staff reported that the district proceeded with a bond issuance for Measure P and a refunding of Measure I after delaying an April sale because market rates had recently been unfavorable. The district completed the sale and reported an estimated total taxpayer cost for Measure P of about $111.7 million and a refunding net savings of approximately $750,000 on Measure I.
Leaseback contract action: The board approved advancing Rodan Builders as the lease-leaseback contractor for the district office modernization project following a competitive RFP process. Staff said four proposals were scored, three finalists interviewed and Rodan was selected for a balance of cost and project experience. A formal construction contract will return on the June consent agenda. The board made the motion to move forward with the selected firm and the motion passed with no recorded nays.
Other notes: Staff outlined fund-by-fund details: fund 1 (general fund) assumptions include 4 percent property-tax growth and a modest state COLA; fund 13 (food services) may need transitional transfers depending on results of a vended-meal RFP and vendor selection; fund 21 (bond fund) will receive the proceeds of the recent issuance. Trustees and staff discussed vacancy reporting required under recent legislation and staffing recruitment challenges for paraprofessional and classified roles.
Ending: District leaders said they will return to the board in June to adopt the final 2025-26 budget. Trustees thanked staff for the bond work and asked for follow-up budget sensitivity analysis tied to enrollment scenarios and collective bargaining outcomes.
