Board reviews first reading of proposed 2025–26 budget; district projects 23% unrestricted reserve

District Chief Business Officer and finance staff presented the first reading of the proposed 2025–26 budget and updated estimated actuals for the 2024–25 fiscal year.

Finance staff reported a modest increase in 2024–25 estimated revenues primarily from stronger-than-expected property-tax receipts and a Title I carryover approval; those adjustments raised estimated-year-end balances relative to the second interim report. Staff said estimated actuals increase district resources and raise the projected unrestricted general fund reserve to roughly 21.9% for 2024–25.

For 2025–26 the draft budget includes these key assumptions: a 4% increase in property tax revenue; continued on-behalf STRS payments; a proposed OPEB trust contribution; a $500-per-year increase in employee health/welfare budgeting (effective July 1) approved earlier in the compensation package; and continued funding from the Del Mar Schools Education Foundation (budgeted at $900,000 now, to be updated to $950,000 when final pledge details are available). Staff estimated total revenues around $81 million and total expenditures around $80–81 million, yielding a projected unrestricted general fund reserve near 23% after planned one-time uses of restricted funds.

CFO staff noted state budget proposals (May Revise) that could provide a discretionary block grant if finalized, but cautioned that state-level deliberations may still change. The board received the materials as a first read and will consider final adoption of multi-year projections and the budget at the June 18 meeting.

Ending: No adoption occurred; the board asked staff to return with the final multi-year projections and recommended budget for adoption at the June 18 regular meeting.