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Unaudited 2023—24 actuals show stronger reserves; board approves transfers to reduce OPEB liability
Summary
Chief financial staff reported higher‑than‑budgeted restricted revenue (partly from CalSTRS entries), a $13.9M increase in unrestricted ending balance, restricted balances up $24.7M, and approved transfers including $10M from workers' comp and $11.2M to reduce OPEB liabilities; trustees praised improved reserve levels.
The Newport‑Mesa Unified School District board on Wednesday adopted the district's unaudited 2023—24 actuals, which district staff described as a strong financial year marked by increased reserves and targeted transfers to long‑term liabilities.
Chief financial staff said unrestricted revenue finished about 2.1% above budget, primarily from property tax and local support, while restricted revenue was notably higher (61.9%) because of state and other entries including CalSTRS benefit accounting. On the expenditure side, unrestricted spending was slightly lower than budgeted (about 2.5% lower) while restricted spending rose to align with increased restricted revenue.
Significant transfers and allocations included $10 million from the workers' compensation fund, $1.2 million from a retiree fund and an additional $10 million to a special reserve for capital facility projects. The district also planned a $11.2 million transfer to reduce its OPEB (other post‑employment benefits) liability.
"When you look at our reserve level, this is the highest I would say we've had in over 30 years," the district finance presenter told trustees, describing Moody's AA1 credit rating and a projected positive net position in the next audit. Trustees praised the focus on routine restricted maintenance and the board's earlier direction to shore up reserves.
Following discussion and trustee questions about the transfers and routine maintenance spending, the board approved the unaudited actuals by roll call.
Trustees asked staff to continue monitoring the district's financial activators and recommended continued transparency about transfers to reserves and obligations to employees.
