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District finance chief walks board through unaudited 06/30/2025 balance sheet; $18M earmarked for capital
Summary
District finance staff presented the unaudited 06/30/2025 balance sheet, noting $7.2M in cash, $11M in capital-reserve funds and $7M in bond funds, much of which is committed or restricted; staff warned some bond proceeds face IRS arbitrage rules and said a tax increase remains possible as budget work continues.
Belinda, the district finance presenter, told the Gettysburg Area School District board the unaudited balance sheet for the fiscal year ending June 30, 2025, shows significant cash and reserve balances but also material restrictions that limit how that money can be used.
"First and foremost the cash and cash equivalents, the number that's listed there, specific point in time again $7,200,000," Belinda said, adding that the district also holds investments in PSLAF/PLGIT and flex CDs.
Why it matters: The statement is a point-in-time snapshot of what the district owns, owes and has available for education, Belinda said, and does not represent free cash for recurring operational expenses. She noted the district uses fund accounting to segregate capital, debt service, special revenue and other restricted funds.
Belinda walked the board through fund-balance categories — nonspendable, restricted, committed, assigned and unassigned — and listed several committed or assigned items: a capital-improvement commitment of about $7.1 million, a $3.0 million PCERS reserve set aside years ago, an assigned 2526 budgetary reserve of $1.6 million, technology improvements ($700,000 from ESSER) and an unassigned general-fund balance of roughly $4.7 million. "This money still sits there, at this particular point in time," she said, but emphasized much of it is bound by legal or board commitments.
On bonds and arbitrage: Belinda explained that some bond proceeds remain unspent because of project timing and COVID/ESSER delays. Under tax rules she cited, the district must track interest earnings on unspent bond proceeds and may need to return earnings to the IRS if project spending does not meet the regulatory timing (often a three-year spend-down). She said the district has already remitted a check to address some arbitrage and currently earmarks at least $1 million for that purpose.
Board members pressed for detail on how investments and capital-reserve accounts flow through the balance sheet. Mike (speaker 4) asked whether the capital-reserve amounts are restricted; Belinda replied they are committed by prior board actions and generally cannot be returned to general operations without board action.
What comes next: Belinda said remaining audit detail appears in the district's full annual financial report (page 18 contains the balance sheet) and that administration will continue to provide budget updates as the board finalizes decisions tied to the five-year capital improvement plan and pending bids.
The board approved routine financial and HR items after the presentation and moved on to budget and facilities discussion.
