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Crestwood financial update: fund balance rises to $2.7M; governor's preliminary plan would add $953,000
Summary
School business officials told the board the district's fund balance rose to $2.7 million and cash reserves to $6.3 million as of June 30, 2024; administrators cautioned many gains were one-time and noted the governor's preliminary proposal would add about $953,000, part of which is grant-based and not guaranteed.
District finance staff delivered a midyear fiscal briefing that showed material improvements but cautioned the board against assuming all recent gains are recurring.
The presenter reported the district's fund balance increased from roughly $1.4 million on June 30, 2023, to $2.7 million on June 30, 2024, a $1.3 million gain. Cash reserves rose from $4.5 million to $6.3 million over the same period. The presenter emphasized that fund balance is an accounting measure (assets minus liabilities) and not the same as cash; liquidity and monthly cash flow remain central to bond-rating and borrowing decisions.
Budget-to-actual results for FY23–24 were close to targets: expenses came in near budget and revenue exceeded budget by about $1.3 million (approx. 2.9%). The presenter identified several drivers of the revenue improvement that are largely one-time: unbudgeted state reimbursements (PlanCon), a PCCD grant, and stronger investment earnings.
For 2024–25 midyear (through Dec. 31), the district is close to budget overall; healthcare costs were $1.3 million lower year-over-year through the first half, but officials warned healthcare is volatile. This is the first year since the expiration of certain federal recovery funds that the district is operating without that additional federal support.
Looking ahead to 2025–26, the presenter outlined the budget timeline (first presentation in April, proposed final in May, adoption in June) and noted the governor's preliminary budget proposal would add about $953,000 to the district's recurring resources. Officials cautioned that roughly one portion of that amount sits in an adequacy-gap grant component that requires yearly appropriation and therefore carries more uncertainty than a change to the basic education subsidy.
Board members pressed on liquidity targets, borrowing practices (district applied for a $4.5 million TR borrowing line, historically drawing about $3 million), and bond ratings; the presenter estimated the district's bond rating in the 'BBB+' neighborhood and said ratings assess liquidity, fund-balance trend and capital reserves. The presenter flagged capital infrastructure as the primary unresolved need (track/turf, roofs and parking projects) and recommended balancing capital projects with protections for operating reserves and debt-service levels.
The finance office will include startup estimates for any new program requests (including the Art & Humanities proposal discussed in committee) when building the April preliminary budget.
