Dixon Unified accepts clean audits, adopts interim budget and passes package of financial resolutions

The Dixon Unified School District Governing Board on March 20 accepted both the district's financial audit and the Measure Q bond audit for fiscal year 2023-24, approved the district's second interim budget and adopted a group of resolutions designed to reduce a projected budget deficit and create ongoing reserves for maintenance, vehicle replacement and technology.

Auditor Spencer Blonda of James Marta & Company told the board the firm issued an unmodified opinion on the district's financial statements and the bond measure audit, a conclusion auditors described as a "clean opinion." Blonda said management cooperated with auditors and that the audit identified two internal-control discrepancies in receivables and payables that were corrected before the report was issued.

The board voted to accept the audits and to forward them as required. Accounting manager Hector Gonzales introduced the district's external auditors and described the audit process as a two-visit review including control testing in spring and financial testing in the fall.

The board also approved the district's second interim budget, which reflects updated revenue and expenditure assumptions through January and anticipates ongoing deficit spending in the multiyear projections. Assistant Superintendent Joanne Ayola (Chief Business Officer) reported an increase of $2.026 million in salary-and-benefit costs after recent settlement agreements and noted a net $85,000 drop in LCFF revenue after an increase in passthrough in-lieu property tax payments to Dixon Montessori. Restricted federal revenues rose about $662,000 due to unexpected medical-billing receipts; restricted special-education contractor staffing increased by roughly $1.2 million.

To address the district's projected shortfalls, the board adopted several resolutions and reallocated prior one-time commitments: - A deficit-reduction resolution responding to a request from the Solano County Office of Education asking the district to identify $2.5 million in reductions; the district reported $1.3 million in identified salary-and-benefit savings for 2025-26 and plans to identify an additional $1.2 million over the next two years. - A resolution to uncommit previously earmarked one-time general-fund amounts (original commitments from December 2022) so the district can reallocate them where most needed. - A five-year deferred-maintenance plan commitment, recommending an initial annual contribution of $500,000 and a prioritized maintenance plan to be finalized by maintenance staff. - A vehicle-replacement plan recommending a $100,000 annual commitment toward a five-year fleet replacement schedule. - A technology/device refresh plan recommending $175,000 annually to sustain Chromebook and infrastructure refresh cycles. - Establishment of a special reserve fund (Fund 17) with an initial funding transfer of $3,000,000 from the general fund to provide flexibility to respond to unforeseen economic shortfalls, litigation risks, or enrollment declines (funds designated for non-facilities contingencies).

Board members and staff said the package is intended to create a clearer, multiyear financial foundation while the district continues to negotiate salaries and plan facility and technology needs. CBO Ayola and Superintendent Brett Barley emphasized that the Solano County Office of Education's request was limited to addressing recent salary agreements and that additional planning would be required to balance ongoing salary increases and other obligations.

The board approved each item by voice vote or roll call; where a roll call was used the vote was unanimous. Trustees recorded their votes during multiple roll-call items as "aye" for each of the resolutions.

What the package does not do: board members noted that the adopted reductions and commitments do not by themselves resolve long-term salary or program needs; the district will continue budget development and present estimated actuals at the May/June adoption meetings.

Votes at a glance - Consent agenda: approved (voice vote; unanimous) - 2025-26 Governing Board meeting calendar: adopted (motion, unanimous) - Acceptance of external financial audit (FY 2023-24): approved (unmodified opinion; motion, unanimous) - Acceptance of Measure Q bond audit (06/30/2024): approved (unmodified opinion; motion, unanimous) - Second interim budget report (through January): approved (motion, unanimous) - Resolution directing deficit reductions (Solano County request): approved (roll call, unanimous) - Resolution to uncommit prior one-time general-fund earmarks: approved (roll call, unanimous) - Resolution committing annual contributions for deferred maintenance, fleet and technology: approved (roll call, unanimous) - Resolution establishing Fund 17 (special reserve) with initial funding of $3,000,000: approved (roll call, unanimous)

Board members and staff said they will return with prioritized plans and periodic reports to the board and the public on implementation of the five-year maintenance plan, vehicle replacement schedule and the technology refresh program.