District projects modest multiyear reserves and explains two‑phase $135M bond strategy
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Summary
Finance staff told the board the district split a $135 million bond into Phase 1 ($75M) and Phase 2 ($60M) to limit millage impact, reported a $36.2 million ending cash balance from the prior year, expects to eliminate a roughly $848,000 current‑year deficit, and projects a positive five‑year ending cash balance around $860,000 under current assumptions.
Finance staff reviewed the district’s five‑year forecast on Feb. 9 and explained why the bond program is phased. Officials said splitting the $135 million proposal into a $75 million Phase 1 and a $60 million Phase 2 reduces the millage asked of taxpayers now and times borrowing with project readiness and market conditions.
The presentation noted the district ended the last fiscal year with an ending cash balance of about $36.2 million (after transfers into capital and permanent improvement funds). Staff said current‑year collections are roughly $233,000 higher than anticipated in October (driven by new construction values) and that they are tracking a current‑year deficit near $848,000 that they expect to eliminate by year‑end through normal expenditure monitoring.
Looking at the five‑year forecast, staff reported a projected positive ending cash balance of roughly $860,000 under current assumptions but cautioned that legislative changes and market conditions (bond sale timing, vetoes) could change outcomes. Board members asked about moving funds between accounts and scenarios that would alter reserve balances; finance staff said the board could rescind some capital transfers if needed but recommended leaving funds where they are while certain state legislative actions remain unresolved.
The board recorded roll calls on treasurer items and budget appropriations during the meeting.