District business staff presented the first interim financial report for 2025–26, describing revenue and reserve projections and steps staff are taking after a sharper-than-expected decline in the district’s alternative income form participation. Staff reported the district lost about 173 qualifying students in the district’s unduplicated pupil percentage (UPP) count, which translates into an estimated $500,000 loss in one year and roughly $1.5 million across the multiyear projection used for budgeting. Staff said they are conducting outreach to families to increase form completion before the next reporting window.

At the same time, staff reported an increase in local tax revenue and one-time state funds that partially offset the shortfall and left the district projecting an unrestricted reserve level around 13.35% for the current year (not accounting for unsettled labor raises). The board approved the first interim report by motion and roll call.

On facilities, staff presented the annual developer-fee/reports and a public hearing was opened and closed per law. Staff reported developer-fee activity raised the beginning balance for the fund and that fees collected in the year totaled about $2.1 million, bringing an ending balance of roughly $3.4 million as of June 30. The board approved the annual developer-fee report.

The board also approved a resolution accepting final completion of the Valley Oaks Elementary classroom building construction. Staff said the project, funded in part with developer fees and state facility reimbursements, completed ahead of schedule and came in almost $200,000 under the approved contract (final cost reported a little over $3.4 million). The board approved submitting the official notice of completion.

Separately, the board approved contracts or proposals to begin architectural and procurement work on several facility projects paid from Measure H bonds and other funds: parking/traffic reconfiguration studies at Greer and River Oaks, new relocatable classrooms for River Oaks, and a proposed playground replacement at Greer supported in part by a GameTime grant. The board approved the district’s Prop 28 arts-and-music annual report and school-site plans, which allocate roughly $1.1 million districtwide (including carryover) for arts instruction, instruments, field trips and after-school VAPA offerings.

Next steps: staff will continue outreach to increase alternative-income form completion, present second-interim projections in March and follow up on the architect/DSA steps and procurement timelines for approved facilities projects.