Gina Zuttenhorst, Arlington School District’s executive director of financial services, presented financial highlights for the district through September and October and reviewed near‑term cash flow risks.

Zuttenhorst said she extrapolated the district’s OSPI financial indicator for FY24/25 and found an increase from 1.5 to 2.6. "We went from 1.5 to 2.6," she told the board, noting the tool is an external indicator and that the extrapolated 24/25 data had not yet been published by OSPI. She cautioned that enrollment and federal funding uncertainties could change the outlook.

The district began the year with a fund balance of about $2,900,000 and reported a $5,200,000 balance at October month end, driven in part by the timing of property tax collections collected by the Snohomish County treasurer. Zuttenhorst said the next large revenue collection is in April and that balances typically drop during winter months. "You can see that that has now eclipsed the level that we were at for the 2324 school year," she said.

Zuttenhorst briefly explained interfund loans the district has used in prior years to meet cash‑flow obligations during low‑revenue months and said it is likely an interfund loan will be necessary in June if certain timing and revenue assumptions hold. She said the district would repay such loans with interest from surplus capital project funds and that she plans to return in January with a formal resolution if necessary.

Board members asked whether the district expects to exit OSPI financial warning status; Zuttenhorst said that when the 24/25 score is published, the district will no longer be in financial warning and she does not expect a warning score for 25/26 barring changes in conditions.

The presentation also flagged broader statewide trends: Zuttenhorst cited the state auditor’s financial intelligence indicators and noted many districts are showing cautionary signals. She recommended continued conservative stewardship, noting multi‑year efforts are in place to rebuild fund balance.

No formal board action was taken on the financial presentation at this meeting; the board thanked staff for the update.