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Finance committee report: district received final ESSER payment; fund balances and borrowing plans discussed
Summary
District finance staff reported receiving the last ESSER revenue in January, noted approximately $750,000 fewer ESSER expenditures in FY25 versus FY24, reviewed fund balances (including a $71.3 million balance in fund 31 tied to April–June projects) and discussed plans to borrow an additional $80 million to fund construction projects.
District finance staff reviewed the November and December finance reports and highlighted several items for the board.
Staff reported that the district received the last of its Elementary and Secondary School Emergency Relief (ESSER) revenue in January. Finance commentary said ESSER expenditures are starting to shift between fiscal years; the report described “approximately $750,000 less in ESSER expenditures in FY25 versus FY24” as projects and spending timing change. Staff emphasized the timing effects of state aid (noting state aid is paid on a multi-month schedule) as a reason apparent deficits can appear midyear on monthly reports.
On the district’s fund statements, staff called attention to fund 31 (other fund) which showed a $71,300,000 beginning balance tied to April–June activity and projects; staff said that balance will be drawn down as projects progress. Staff said the district expects to borrow a second $80,000,000 tranche to fund planned construction; earlier comments estimated borrowing might occur around October but staff said it could be closer to March.
Key financial health indicators discussed included an unspent authorized budget (UAB) in the low-90s that nudged to 94% and an estimated 20% UAB for certain measures; staff cautioned that moving from 90% to 100% spent can happen quickly and requires attention because 1 percentage point represents roughly $2,000,000 in spending. Staff said solvency measures are healthy but will trend lower as spending approaches 100% of authorized budgets.
Staff noted that some budget lines on the summarized pages reflect timing differences for construction and that a budget amendment might be required later in the year to align projections with actuals; staff said an amendment would not change tax levies, only update internal projections.
Board members asked clarifying questions about the red deficits listed for FY24/FY25 in the general fund; staff explained those reflect timing of state aid receipts, not an actual structural shortfall. The board received the finance reports and will review more detailed materials in upcoming committee meetings.
No formal finance votes were taken at this meeting; staff will return with further monthly reports and any recommended budget amendments.
