Fallbrook board adopts developer-fees resolution and approves first interim financial report with "positive" certification

The Fallbrook Union Elementary School District board voted to adopt the annual and five-year developer fees report and approved the district's first interim financial report for 2025-26, which staff presented as a "positive" certification.

Assistant Superintendent of Business Services Armando Farrillos summarized the first interim report and said the district retains a positive certification, indicating it can meet its financial obligations for the current fiscal year and the following two years. Farrillos said revenue changes since budget adoption included approximately a $1,000,000 increase in LCFF (Local Control Funding Formula), about $139,000 in additional federal revenue (Title I carryover and other grants), and roughly $2,600,000 from other state sources related to student-support and professional-development block grants.

Farrillos noted expenditure adjustments, including a decrease in salary and benefit costs of about $50,000, an increase in instructional materials spending (about $1.7M) for a potential math-textbook adoption, and changes tied to posted carryover balances. The district reported a required 3% reserve for economic uncertainties (about $3.2M) and a current reserve of approximately 16.5%.

During the meeting the board opened and closed the public hearing for the 2024-25 annual developer fees report with no public speakers and then adopted Resolution 10/2025-26 to adopt the annual and five-year developer fees report. The board later voted to approve the 2025-26 first interim report; the motion passed and a positive certification was recorded.

Farrillos said the district will monitor the governor's January budget and return in March for the second interim report as required by state timelines.