Treasurer warns of widening shortfall; board shown levy options to shore up district finances
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Summary
Treasurer Kent Zeman told the board the district projects expenditures will exceed revenues by $4.5 million in fiscal 2026 and presented levy scenarios (5.9, 6.9, 7.9 mills) and timing options that affect the projected 'days cash' and when a levy would next be required.
Treasurer Kent Zeman told the Lakewood City Board of Education on Dec. 1 that the district’s financial forecast shows expenditures exceeding revenues and sketched several levy options to address the shortfall.
"In fiscal year 2026 ... expenditures are exceeding revenues by $4,500,000," Zeman said during his presentation, noting fiscal 2025 was the first year since the district’s 2020 levy in which expenditures outpaced revenues (just under $2 million). He said 63% of general‑fund revenue comes from local property taxes and 27% from the state, and reiterated the district’s status as a 'guaranteed' district under current state formulas.
Zeman showed 'days cash' metrics and a health assessment that placed 2026 at a projected 174 days of cash on hand under current assumptions—above the 90‑day best practice threshold—but warned the projection moves into a danger zone by 2030 without added revenue. He outlined three operating levy scenarios that would be presented as millages on the ballot (roughly 5.9, 6.9 or 7.9 mills) and explained a recent refunding lowered debt‑service millage by 2 mills; as a result, a 6.9‑mill operating levy would yield a net 4.9‑mill impact on taxpayers after the debt reduction.
Using the district's examples, Zeman said one mill on a $100,000 home costs $35; a 6.9‑mill levy would be shown on the ballot as producing $241.50 annually on a $100,000 home, but with the 2‑mill debt‑service reduction the net annual impact would be $171.50. Zeman said waiting to place a levy on a later ballot increases the millage required to achieve the same budget effect.
He offered three scenarios for the ballot timing and millage that would produce different levy cycle lengths and cash outcomes and emphasized the district will continue to pursue efficiency strategies (health‑insurance consortium changes, attrition) while recognizing those measures alone are unlikely to close the long‑term structural gap.
The board asked follow‑up questions about the timing and probable duration of any levy. Zeman said a 6.9‑mill request placed in calendar 2026 would likely postpone the need to return to voters until approximately 2030–2031 under current assumptions; a smaller levy would likely require an earlier return to the ballot. The board did not take a vote on placing a levy at the meeting.