Park Hill presents FY2026 budget calendar and assumptions, proposes changing capital reserve metric

At its Feb. 13 meeting, Park Hill Board of Education finance staff presented the district's budget calendar and the assumptions that will guide preparation of the fiscal year 2026 budget.

The presentation, led by Doctor Kelly, laid out operating, special revenue (Fund 2), capital and debt-service fund balances, enrollment and assessed‑valuation projections, and specific budget assumptions recommended for the coming year. "This is not for action, but certainly if you see something that you have a question on or if you think that we may be headed down the wrong path, we certainly would need your feedback," Doctor Kelly said during the presentation.

The budget paper emphasized the district's long‑used operating reserve guideline of 18% to 22% of prior‑year operating expenditures. Kelly projected the district will finish the year with an operating fund balance near 20.1%, inside that range. By contrast, the district plans a large transfer to zero out Fund 2 (the district's certified payroll/special revenue fund); Kelly said staff anticipates bringing a transfer request of about $40,000,000 at the June board meeting to balance Fund 2 for fiscal year 2025.

Why it matters: Board members were asked to weigh a plan that would use accumulated capital balances to pay for a multi‑year program of facility work tied to the district's aging‑facilities goals. That choice affects near‑term tax levy allocation because debt service needs rise after a recent bond sale.

Key fiscal details and assumptions presented

- Operating fund balance guideline: 18%–22% of prior‑year operating expenditures; projected fiscal‑year end near 20.1% (projected). - Fund 2 (special revenue/teacher and certified compensation): staff said they expect to request approximately a $40,000,000 transfer in June to zero out the fund for fiscal 2025. - Debt service: staff identified an approximately $18,100,000 annual debt payment on the schedule next year and noted that the district's recent $77,000,000 bond sale raised annual debt service roughly $4–5 million from prior levels. Kelly said the likely response is to increase the debt‑service tax levy but keep the district's total tax rate unchanged. - Capital fund balance and proposed change: staff outlined a capital fund balance near $23,700,000 that the administration proposes to spend down to complete projects beyond the bond scope. Rather than the district's existing 65%–85% capital reserve guideline, Kelly recommended moving to a flat capital reserve target oriented around $5,000,000 (with a suggested range of $3.5 million to $6.5 million) so more capital funds are available for aging‑facilities work. - One‑time operating deficit: Kelly cautioned the planned capital spending will make next year's operating expenditures exceed revenue (a planned, one‑time deficit) because the funds already exist in savings and will be spent on capital projects. - Enrollment and assessed valuation: staff projected enrollment largely flat with a slight decline next year and advised the board that county property reassessment (an odd‑number year) is expected to increase assessed valuation by roughly 5% in the district's projection; Kelly called that a conservative forecast compared with prior reassessment years. - Tax rate: staff said there is no plan to raise the district's total tax rate overall but that a reallocation within the tax rate (more to debt service) will likely be necessary to cover higher debt payments. The presentation noted staff currently plans the budget without assuming any particular outcome of the April 8 ballot measures (Propositions G and O) and that the administration can pivot if the election results change revenue expectations.

Departmental budget assumptions described during the presentation

- Academic services (Doctor Bridewell): add elementary‑school gifted programming at each school, increase special education staffing to meet rising needs and severity, add English‑learner staffing (including newcomers), adopt new elementary and middle school math curriculum resources, add a seal of biliteracy coordinator at each high school, and expand early college offerings with Metropolitan Community College partnerships. - Human resources (Doctor Dillon): customary compensation increases, add a staff well‑being coordinator (district‑level social worker focused on staff mental‑health and well‑being programs), and increase activity/stipend riders to better align with neighboring districts (noting middle‑school stipends in several sports and extracurriculars). The staff well‑being coordinator was described as a nonadministrative social‑worker position. - Activities and safety (Doctor Dahn): add emerging activities into the budget (eSports, girls' flag football) and consider adding dedicated security personnel assigned to elementary schools; staff recommended issuing an RFP to contract or hire trained, vetted school safety personnel and initially assigning personnel to groups of three elementary schools with a plan to expand. - Operations and technology: cycle replacements for student devices, desktops, network hardware and expected routine capital work (doors, HVAC, masonry), and budgeted energy and transportation cost increases. - Communications: continue and expand the district recruitment advertising campaign based on results from the fall "You Belong Here" campaign, which staff said produced increased web traffic and application rates.

Board discussion and outlook

Board members asked clarifying questions about using the operating reserve and capital balances together as dual buffers. Kelly responded that he did not recommend changing the 18%–22% operating reserve guideline but favored lowering the capital reserve guideline to the proposed fixed dollar amount so capital funds are used on aging‑facility needs.

Next steps: staff said they will continue building the budget through spring, present demographic and enrollment projections in March, review draft budgets in April–May, and present a final budget for board approval on June 26. Kelly asked the board for feedback on assumptions so staff can refine projections ahead of the June transfer and final budget.