Year-end report: Southeast Polk revenues top $100 million; solvency ratio 9.6% as board prepares for bond referendum

District finance staff presented the fiscal year 2025 year-end financial report at the Oct. 2 board meeting, reporting revenues above $100 million and a solvency ratio of 9.6 percent.

The presenter, identified in documents and remarks as Mr. Bakam (speaker 10), summarized that general fund revenues increased about 1.9% and total expenditures were approximately $106 million, a 4.7% increase from the prior year. Personnel accounted for roughly 82% of functional spending, with wage and benefit costs rising about 6.6% over the previous year. Bakam said federal COVID-related ESSER funds have largely expired and noted shifts in Title funds, Medicaid revenue drops and the previous year's $92 million bond issuances that have reduced capital-fund balances.

Bakam said the fund balance remains strong at about $8.4 million and the solvency ratio, measured on the general fund, is 9.6% (within the IASB recommended range). He recommended conservative staffing and leveraging other funds as the district evaluates projects and prepares for a bond referendum in November; staff cautioned that property-tax reform or changes in state aid could affect future revenues.

Board members asked about the loss of AEA flow-through funding and the district's options; Bakam said the district now retains a share of AEA dollars to purchase services but must manage higher direct costs for those services and plans to pursue additional spending authority from the SBRC as appropriate.