District staff outline supplemental budget adjustments to align audited balances and cover rising costs

District staff briefed the board on a supplemental budget to align beginning fund balances with audited results and adjust revenue and expenditure projections across major funds.

Staff said the general fund will see an increase in local revenue because a hotel‑related tax source expired and property‑tax adjustments increased local receipts, with a modest offset to state allocations. Support services expenditures will increase where capital project funds no longer cover costs and community services expenses rose. In the special revenue fund, higher intermediate revenues (e.g., ESD/county sources) support increased enterprise and nutrition expenditures as food‑service costs rise. Capital projects saw higher interest gains than budgeted, producing additional available funds; staff proposed using those balances for planned projects. For the debt service fund, auditors recommended technical adjustments moving contingency into unappropriated fund balance.

Staff provided high‑level figures during the briefing and said a detailed package with line‑item numbers is available to board members; they noted an approximate capital fund increase (staff described an earlier expectation of roughly $1.5 million but reported being closer to $5 million after last‑year adjustments). The board was invited to ask questions and was told the supplemental will be presented and voted on at the end of the month with required public‑hearing notices and processes to follow.

Board members asked about reserve strategy and possible use of proceeds from planned asset sales to bolster reserves; staff said they would return with options in future sessions.