Kenston treasurer: five‑year forecast shows modest near‑term surplus, cash balance declines by 2028 absent new revenue

Kenston Local School District Treasurer Seth Kales told the board on Oct. 13 that the district expects modest surpluses this year and next but will likely begin drawing down general‑fund cash beginning in fiscal 2027 unless revenues change or expenses are reduced.

Kales said the district finished the prior year with a $705,000 surplus and is projecting about $346,000 in surplus for the current fiscal year; he said those results add roughly $1 million to the district’s cash balance across two years. The presentation showed revenues (blue) and expenditures (orange) with projected deficit spending after 2026, and a declining “days cash on hand” metric that would fall below the district’s informal thresholds by 2029 under current assumptions.

Key factors cited: Kales listed benefit cost increases (modeled at 8 percent annually for planning), state funding uncertainty, county reappraisals and declining enrollment as the principal risks. He said local property taxes fund roughly 75 percent of the district’s general fund revenues and noted the 2025 PI (permanent improvement) levy has reduced the need to transfer general‑fund dollars for capital maintenance. The PI levy, he said, provides roughly $1.2 million per mill (district figure expressed in the presentation) and sunsets or requires renewal after five years.

Why it matters: Kales said the district has not needed an operating levy for 16 years and that the forecast indicates the district may need to consider an operating levy in the 2028–2030 window if current assumptions hold. He emphasized that legislative action at the state level (including proposed property‑tax reforms and county budget‑commission authority changes discussed earlier in the meeting) could materially change the projection.

Actions and fiscal management: the treasurer described steps the district is taking to stretch resources: seeking grant revenue where available, auditing third‑party contracts, reviewing purchased services (special‑education placements and ESC contracts) to determine if some services can be provided in‑district, and phasing curriculum purchases. He also described a conservative approach to modeling health‑care cost increases because the district is largely self‑insured.

Board reaction: members asked clarifying questions about bond roll‑offs (a high‑school bond exits in December 2029) and whether the bond schedule would affect the general‑fund forecast; Kales said the bond is accounted for in a separate fund and does not appear in the general‑fund five‑year forecast he presented.

Next steps: Kales said the district will continue to monitor enrollment, legislation, and health‑care claims and will report back. He encouraged board members to contact his office to review the forecast in more detail.