District's five-year financial plan shows manageable reserves but pressure from rising costs
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Summary
Donnegan Incorporated presented a five-year long-range plan projecting modest revenue growth, rising expenditures and planned use of reserves to smooth near-term gaps; transportation contract and state aid volatility were named key pressures.
Donnegan Incorporated's financial adviser told the Valley Central School District board that the district is in a relatively strong position but must plan for rising costs and a narrow revenue outlook. Jason Schwartz said the five-year plan projects roughly 2.6% average annual revenue growth and about 4.3% annual expenditure growth in some years, creating pressure the district will manage with reserves and careful spending choices.
The presentation framed the long-range plan as a planning tool rather than a budget. "We're really trying to take a look at projecting future revenues and expenses and use that information to kind of see where we expect fund balances to go," Schwartz said, adding that the district has built reserves that provide flexibility in the near term.
Why it matters: the plan outlines options trustees will consider during budget season, including controlling expenditures, using fund balance as a temporary measure, and, if necessary, increasing the tax levy within legal limits. Schwartz said the district aims to keep local share for capital projects near an approximate target of $550,000 to smooth tax-cap impacts and avoid sudden levy spikes.
Key details: the adviser noted bonds are likely for some projects in mid-2027 if bid and financing timing are favorable; building aid from recent capital projects is expected to ramp up and offset some local costs over time; and transportation contract rebids in 2026-27 are expected to raise costs. "You have kind of expenses outpacing revenues," Schwartz said, pointing to salary growth, insurance costs and transportation as primary drivers.
Board context and next steps: the assistant superintendent for business reiterated the board's calendar for budget development, with department presentations planned through March and a proposed budget to be presented March 23. Trustees discussed voter turnout (about 5% turnout in the prior year's budget vote) as a factor in future levy and outreach planning.
The presentation closed with a request that the board consider options in upcoming meetings; the district will post presentation materials online and continue public engagement as budget development proceeds.