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Farmersville Unified approves first interim report, finance staff warns of multi-year drop in restricted revenues
Summary
District finance staff presented a first interim report showing a current-year combined fund balance of about $21 million but projected declines to $17 million and $11 million over the next two years as restricted grants are spent down; the board approved the report and issued a positive certification.
The Farmersville Unified School District Board on Wednesday approved the first interim financial report and issued a positive certification of the district’s financial status after a presentation by district finance staff.
The presenter summarized the unrestricted general fund and restricted funds, noting LCFF (enrollment- and attendance-based funding) is the primary revenue source and that salaries and benefits represent about 82.8% of unrestricted expenditures. The finance presentation estimated a combined fund balance of approximately $21,000,000 for the current year, projecting an ending balance near $17,000,000 in year two and $11,000,000 in year three as one-time and restricted grant dollars are spent down.
Staff highlighted compliance measures including the district meeting the 3% minimum reserve requirement and maintaining positive cash flow (an ending cash balance shown as approximately $22,000,000 for the current fiscal year). The presenter also warned of an "approximately a 34% revenue decrease" on the restricted side over the multi-year outlook tied to grant expirations and recommended planning strategies to avoid using one-time funds for ongoing costs.
Trustees asked questions about the TK (transitional kindergarten) building and partner arrangements with the Tulare County Office of Education. Finance staff said projections indicate the TK project (Hester TK/Kinder) funding will cover costs, and described a partnership model with the county while the district plans for eventual takeover of operations.
By motion (John Alvarez) and second (Merced Zamora), the board approved the first interim report and accepted a positive certification on its financial status; the vote was 5-0.
The board also approved budget revision report number 3 and adopted resolution No. 6128-25 to participate in the classified employee summer assistance program (CSESAP).
