Vashon Island school finance presenter flags budget revisions, previews levy certification and $19M bond payment

Justin, the district's finance presenter, told the Vashon Island School District board on Oct. 24 that staff are preparing a November budget revision after updating revenue and expenditure estimates.

The presenter said staff were proposing a $385,000 net increase in revenue in the draft revision and flagged several missed expenditures and grant adjustments, including roughly $664,000 in upgraded grants not previously accounted for. He also said the district identified a $90,000 cash error currently under review.

Why it matters: The fiscal preview matters because the district faces both near‑term cash management tasks and a large debt obligation next year. Justin told the board the district is projecting a balloon bond payment of $19,000,000 due Dec. 1, 2025, and that the district’s current unrestricted reserves are below commonly recommended targets.

Justin summarized the month-to-date visuals the board received: year‑to‑date revenue collection was about 6.83% of budget and expenditures about 7.91% — September numbers he cautioned can be misleading without multi‑year context. "Those visuals are pretty, but I'm not sure that they tell you," he said, urging the addition of five‑year trend benchmarks to make the graphics meaningful to trustees.

Trustees and staff discussed enrollment and FTE (full‑time equivalent) trends as a driver of revenue. The presenter noted the district budgeted 1,399 FTE and described cohort‑survival and demography models the district uses to project future enrollment. He also said regional birth rates, housing cost pressures and commuting patterns affect those projections.

On reserves and fiscal stability, Justin reiterated state guidance that districts should target approximately 30 days of operating expenditures in reserve and said the district’s current calculated balance (including restricted funds) falls short of that target. "We have to utilize fund balance to stabilize," he said, while cautioning that much remains preliminary.

Levy math and next steps: The presenter also introduced draft Resolution 8‑17 (first reading), which would certify levy requirements for calendar year 2025. Staff corrected an earlier 2024 assessed-value reporting error and said the corrected collection rate for levy illustrations is 49%; using current assessed values, the illustrative levy collection for 2024‑25 would be about $4,690,000 and a preliminary combined tax rate illustration was about $2.39 per $1,000 of assessed value (bond 95¢, capital 39¢, enhancement/general fund $1.05). The presenter stressed the district typically certifies the maximum allowable levy and relies on county/ESD rollback procedures.

Board direction and reporting: Trustees asked for clearer breakout pages and a reconciled bank‑to‑books matching (“a/b flags”) in future packets so they can see outstanding items and corrections month by month. Justin said staff will present a more detailed budget revision at the November meeting with finalized numbers after year‑end close.

Where it goes next: The district will present a fuller budget revision in November, pre‑file levy requirements with the county by Nov. 15 and submit final levy certification by Nov. 30; the board did not adopt the levy resolution on Oct. 24 but heard the first reading and direction to refine the materials.