District reports $6.07 million unaudited general‑fund balance; below target by $3.8 million
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Summary
Chief finance staff told the board the preliminary, unaudited fiscal‑year 2025 ending general fund balance was $6,067,000, below the district’s 8% minimum target by about $3.8 million. Auditors begin field work next week and the district plans a December update.
Lake Oswego School District staff presented a preliminary unaudited year‑end general fund report showing a June 30, 2025 ending fund balance of $6,067,000 and outlined next steps for district budgeting.
Mister Ketzler, presenting the report, said the district moved proactively during the fiscal year to limit staffing and other spending where possible and that those measures, along with some better‑than‑expected revenue flows, helped produce the positive result. “The ending fund balance ended up being over $6,000,000,” Ketzler said.
Ketzler noted the district remains below its policy target: the 8% minimum fund balance would require roughly $3.8 million more than the current balance. He advised the board this is likely a multiyear challenge and said his earlier projections had estimated a lower balance until the district executed targeted savings and revenue improvements.
The report highlighted two specific areas of year‑over‑year change: psychological services spending (a roughly $975,000 increase tied to contractor usage) and computer network/device repair costs (about $250,000 higher, reflecting a shift from an external ESD service provider to in‑district repairs). Ketzler also emphasized the numbers shown are unaudited and that external auditors will begin field work the week after the meeting.
Board members asked when the district would provide an updated multi‑year financial model. Ketzler said the board can expect an update after the state’s next revenue forecast and the district’s December adjustments — typically after October 1 enrollment, county property tax runs, and the state’s in‑year reconciliation — and that he expects to present a revised outlook in December.
Ketzler also told the board the district’s approximate cash burn is about $10 million per month. He warned that if state funding were to stop abruptly, the district would face difficult operational choices.
Next steps: auditors’ field work is scheduled to begin next week; staff will present a revised financial outlook once the state revenue forecast and tax/reconciliation data are available.