District financial report: $50,000 water heater, rising diesel costs and special‑education pressures noted

District finance staff told the Farmington Board of Education on April 7 that the operating budget remains generally healthy but that a pair of unexpected expenses and ongoing service costs will affect year‑end projections.

The assistant superintendent of finance and operations reported that a 22‑year‑old central‑office water heater needs replacement and that the district has a quote for roughly $50,000. Staff said they expect to absorb the cost within the operating budget but are monitoring encumbrances and might consider non‑lapsing or capital options if needed.

The district is also tracking higher diesel prices for buses and estimated an additional fuel cost of about $50,000 for the remainder of the fiscal year. Administrators said they are preparing for that increase in the operating forecast.

Finance staff noted a services deficit driven primarily by private tuition for outplaced special‑education students and placement costs (reporting about $579,000 in the services category). The assistant superintendent said the district will apply excess‑cost reimbursement and student‑activities funds where appropriate; staff expect to apply student activity funds to cover advisers’ and coaches’ shortfall (reported as about $114,987) after spring sport registration closes.

Board members asked whether savings on recent capital projects (discussed elsewhere on the agenda) could offset operating encumbrances. Finance staff said some capital‑referendum savings will reduce bond borrowing needs but noted many facility savings are restricted to capital accounts and not available to operating expenses.

The board approved the February 2026 financial statements as presented.