St. Vrain Valley presents FY26 amended budget showing $28.6M projected spenddown but large reserves remain

St. Vrain Valley School District officials briefed the Board of Education in a Jan. study session on the FY26 amended budget, reporting a revised projected spenddown of about $28.6 million and an estimated ending fund balance of roughly $145.8 million.

Justin Petrone, the district's executive director of budget and finance, told the board the adopted FY26 budget (approved in June) was updated after final assessed valuations, enrollment counts and legislative changes. "Since adoption we've seen about a $7.3 million increase in revenues and about a $7.0 million increase in expenditures," Petrone said, adding that the amended document's projected spenddown is calculated before any year-end outperformance.

The presentation placed the amended budget in context: the district began FY26 with approximately $174.4 million in reserves, Petrone said, and the $145.8 million projected year-end balance would still represent more than 28% of total expenditures. Staff described that level as high by statewide best-practice standards and noted it gives the district time and flexibility to manage multi-year risks.

Budget changes were driven by small enrollment shifts, updated assessed valuations and one-time timing items. Petrone said 28 additional funded pupil counts produced about $335,000 in new revenue. Most of the revenue increase came from a higher-than-projected mill-levy-override (MLO) collection after assessed-value updates; board actions to revert the MLO rate to its historical level also affected the update.

On the expenditure side, Petrone outlined roughly $1.9 million in FTE additions and changes (new classroom and special-education staffing, custodial hires and early staffing for a new school), about $2.1 million in benefit-cost increases largely tied to medical premiums, and approximately $2.4 million in one-time or timing items (including a multi-year firewall contract recording and a late SRO invoice). He described the benefits increase as driven by a difficult renewal cycle and rising medical costs.

Staff also highlighted that some federal revenues tracked in the general fund are volatile. "Medicaid is administered through the state and resides in our general fund," Petrone said, noting the program supports nurses and mental-health interventionists; he warned Medicaid funding could decline and said the district is exploring county-level offsets to sustain positions.

The briefing included a review of fund accounting, the role of the general fund (the district's largest operating fund), and the district's budgeting and reporting practices, including the Annual Comprehensive Financial Report and monthly and quarterly dashboards. Finance staff emphasized compliance with accounting rules, accuracy of systems and transparency to the public.

Board members asked clarifying questions; staff said they have stress-tested multiple multiyear scenarios and are monitoring revenue drivers and expense growth. No formal budget votes were taken at the study session. The district will present the amended budget document again at the upcoming regular meeting for any formal action required by statute or policy.