Board debates preserving $20M facilities reserve as finance staff warn of enrollment-driven fund drawdown

Finance staff presented a 2024–25 financial update and the proposed budget development guidelines for 2026–27. The district closed 2024–25 with an actual ending fund balance of $45.9 million, near projection, and staff forecast a planned drawdown of roughly $6.0–6.2 million tied to programmed investments.

Staff reported a significant one‑year enrollment decline (about 560 students for 2025–26) driven largely by family migration and lower kindergarten counts; this and planned investments put pressure on the unreserved fund balance and prompted staff recommendations to preserve equity‑based program investments and to consider reducing the $20 million future‑school facilities reservation to $10 million as construction timing becomes clearer.

Board members debated preserving the full $20 million reservation to protect future facility work versus holding more unreserved funds to maintain the board’s 3–7% unreserved‑fund balance target. Several directors said they favored retaining the $20 million reserve while acknowledging the need for contingency language and the possibility of a temporary board exception if reserves dip below policy thresholds.

Separately, the board appointed pro and con committees for three upcoming levy propositions (bus levy, capital projects levy, and educational programs & operations levy). The board named pro‑panel members (including Kelly Munn and others) and con‑panel members (Jeff Boardman and Michelle Williams) by motion; each nomination was approved by voice vote.

Next steps: staff will refine the budget‑development guidelines, continue multiyear forecasting, and return with spring updates to fund‑balance projections and implementation options; pro/con panels will begin drafting statements for the upcoming ballot.