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Gilbert Unified finance staff present first monthly financial report; district highlights fund balances and potential capital funding
Summary
Gilbert Unified District finance staff presented the first monthly financial report for fiscal 2025–2026, citing a $1.3 million available M&O balance, ongoing variability in the classroom site fund, potential School Facilities Board roof funding, and projected drawdown in the employee benefit trust due to several high‑cost claims.
District finance staff presented the first monthly financial report for the 2025–2026 fiscal year, reviewing July activity and outlining several areas the governing board will watch during the year.
Bonnie Betts, associate superintendent, said available balances are calculated from the adopted budget the board approved in June and that July results reflect both paid expenditures and encumbrances, including salary and benefits. She said the district will present a first budget revision before Sept. 15 to account for legislative changes and to update maintenance and operations (M&O) and unrestricted capital.
Key points presented to the board:
- Maintenance & operations: The report showed an available M&O balance of about $1.3 million, better than earlier projections tied to staffing‑cost assumptions; Betts said lower average replacement salaries for retirees are a primary driver of improved balances.
- Classroom site fund: The district’s classroom site fund allocation for the year is $30.8 million; the available balance was reported at about $24.1 million and staff cautioned the fund depends on sales tax receipts and state land‑trust contributions and can vary year to year.
- Medicaid and indirect costs: The district has accumulated one‑time balances in Medicaid and indirect cost funds after several years of surpluses; staff warned that planned changes (for example, reduced ability to take full indirect from nutrition services) will draw down those balances over time.
- Unrestricted capital and facility needs: Unrestricted capital encumbrances included planned work at Desert Ridge High School and Gilbert High School. Betts said the district has submitted roof projects to the School Facilities Board (SFB) and, if awarded, could preserve $6–7 million in district funds. She cautioned that SFB requests total about $400 million while available SFB funds are around $250 million and allocation priorities are not yet known.
- Nutrition services: Nutrition services and community schools are enterprise funds intended to be self‑supporting. Nutrition services’ available balance was near $7.0 million—below prior years’ levels—and staff reported annual drawdowns of roughly $500,000–$900,000 (even after modest meal‑price increases). The district requested board approval under consent to authorize an emergency procurement with Fry’s Food Stores for special‑menu items used by students with dietary restrictions; nutrition services also has potential contracts with Walmart and Smart & Final.
- Employee Benefit Trust: The district’s employee benefit trust began the year with about $24.9 million. Staff reported six high‑cost claimants for which stop‑loss insurance will not cover some costs and projected a potential $8 million drawdown over the year. Even with that drawdown, staff said a projected remaining balance of about $17 million would keep the fund in a positive position.
- Debt service and arbitrage: Finance staff explained an IRS arbitrage calculation required repayment of approximately $272,000 related to two past bond series; the calculation fees were also noted. Staff said taxpayers were not adversely impacted by the repayment.
Board members asked questions about projections, the timing of SFB notices, the drivers of available balances, meal‑price decisions, and potential impacts of declining enrollment (staff said the district had seen an approximate net loss of 800 students cumulatively compared with prior years and that staffing reflects that trend). Staff said they will update the board during the September budget revision and provide more details as state and federal figures (including federal grant carryover) become final.
Action items surfaced during the report included routine questions and the emergency procurement for Fry’s listed in the consent agenda; the consent agenda passed later in the meeting.
No formal changes to appropriation or new tax actions were proposed at the meeting; staff emphasized monitoring capital needs and benefit‑trust claims going forward.
