St. Vrain finance staff outline FY25 amended budget, warn $8 million in one-time revenue won’t recur

Justin (staff member) presented the St. Vrain Valley School District No. Re1J proposed amended budget for fiscal year 2025 during a board study session, saying the district’s amended general fund shows an improved spend-down but contains roughly $8 million in one-time revenues that will not carry into FY26. The board meeting packet will include the formal amended budget for adoption at the regular board meeting next Wednesday, with a Finance and Audit Committee review Tuesday.

The presentation laid out revenue and expenditure changes driving the amended budget. Justin said total revenues for the general fund increased by about $6.9 million from the adopted estimates; the projected spend-down decreased from about $20.7 million to $18.0 million, producing a projected ending fund balance of roughly $160 million before any outperformance. He emphasized that roughly $4.3 million tied to a land reimbursement and additional proceeds from the sale of replaced iPads — together with other one-time items — sum to about $8.0 million that will reverse in FY26.

Why it matters: the district’s near-term picture improves under the amended numbers, but staff cautioned trustees that recurring revenue is weaker when one-time items are removed. Justin and other staff framed that risk in the context of statewide uncertainty, including a reported state FY26 shortfall (about $900 million), Medicaid caseload pressure and recent reductions to COLA projections.

Key revenue and expenditure details presented: - Total program (state formula) remains the largest revenue source and was netted of charter flows; Justin attributed a modest program increase to growth of roughly seven students and a roughly $1 million increase tied to higher identification of students qualifying for at-risk funding. - A decrease in mill levy override revenue of $2.8 million was attributed largely to lower oil-and-gas valuations concentrated in Weld County; the presentation cited a net assessed value decline of about 12.2% for affected properties. - Categorical allocations from the state showed increases: special education (up nearly $1.0 million), transportation (up about $300,000), and career-and-technical education (about $500,000). Justin credited district teams with improving identification and E-rate reimbursements as additional revenue sources. - Federal Medicaid-related funds were projected up about $400,000, though staff noted complexity in estimating those allocations. - Interest earnings were estimated to be about $1.0 million higher than previously forecast due to sustained higher rates.

On expenditures, Justin summarized: - Net FTE additions and budget resets around vacancy budgeting produced a $3.3 million change; staff described the change as a budgeting policy shift to reduce year-to-year volatility by budgeting positions as if filled at average cost rather than recognizing vacancy savings midcycle. - Targeted staffing and discretionary adjustments (roughly $1.0 million) were described for site-based licensing changes, substitute coverage, and program launches to protect operations at schools experiencing enrollment shifts.

Capital- and debt-related items noted in the presentation included the bond redemption and building fund updates. Staff reported early call/refunding of prior bonds generated about $7.6 million in interest savings and that bond issuance premium and proceeds (including an estimated $34 million in premium) are reflected in capital projections. The presentation also noted a previously passed resolution to reimburse the general fund for a land purchase contingent on bond approval; that $4.3 million reimbursement is included this year and is one of the one-time items that will reverse next fiscal year.

Board process and next steps: The amended FY25 budget was slated for review at the Finance and Audit Committee meeting the day before the regular meeting, with formal adoption to come at the regular meeting the following Wednesday. Staff asked trustees to contact legislators about proposed changes to declining-enrollment averaging (removal of averaging), which staff said could reduce K–12 funding and create multi-million-dollar impacts for the district.

Quotes from the presentation included Justin’s summary of the one-time revenue issue: “There’s at least $8,000,000 between iPad sales and land reimbursement that’s going to go away” in FY26, and a characterization of state-level pressures: “There is a pretty significant state shortfall…driven largely by a Medicaid caseload that was unexpected.”

Ending: Trustees were invited to ask questions in subsequent committee and board meetings; staff stressed that the amended budget improves FY25 financial resources but that the district will need to plan conservatively for FY26 given the nonrecurring revenues and state funding uncertainty.