Santa Rosa City Schools posts improved closeout but remains below required reserve; board accepts 2024–25 unaudited actuals

The Santa Rosa City Schools Board of Education accepted the district's unaudited actuals for fiscal year 2024'25 on Sept. 10, approving the final closeout figures after a presentation by interim associate superintendent Luz Carreras and executive director of fiscal services Joel Dontos.

Board members were told the district closed the year in a stronger position than expected, but not yet solvent: the district's unrestricted (general) fund balance remains negative, though by about $2 million less than earlier estimates, and the district still falls short of the 3% reserve required for economic uncertainties.

The unaudited report matters because it's the last internal accounting point before external auditors review the books. "This is the last point in time that we will be reporting to you from within ourselves about our books," Carreras said as she introduced the presentation. Joel Dontos highlighted increased revenues from the Local Control Funding Formula (LCFF) and higher-than-expected transportation reimbursements that helped the bottom line.

Key figures and context: the district reported an increase in restricted fund balances to about $15 million at closeout, larger than the $10 million projected at the prior estimated-actuals stage. That swing reflects restricted dollars the district received but did not spend in 2024'25; those amounts carry over and become available to spend in 2025'26. On the unrestricted side, the district recorded an improved deficit but still finished the year approximately $1.1 million in the red for the general fund and is roughly $9.2 million short of the board's 3% reserve target.

Dontos said LCFF revenue came in stronger than estimated and noted a roughly $800,000 positive variance in LCFF-related receipts, though about $300,000 of that was special-education property taxes restricted to that program. The presentation also called out final adjustments in special-education expenditures and transportation reimbursements as major drivers of the better-than-expected closeout.

Board members and staff discussed next steps. Carreras and Joel said the unaudited actuals will be handed to the district's external auditor for review; the independent audit report is expected in December and will be presented to the board in January. Staff also said carryover restricted dollars will be posted in the district's October accounting cycle and then reflected in the first-interim budget report.

Trustee Rocco Medina moved to accept the 2024'25 unaudited actuals; Trustee Christy De La Torre seconded. The motion passed on a roll-call vote with all trustees voting aye.

District staff said their near-term work will focus on updating the multi-year projection with the closed books, examining utility-cost increases that exceeded expectations, and developing options to restore the unrestricted fund to a positive position and reach the board's reserve targets. The board asked staff for regular updates and additional details at the December first-interim report.