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Healdsburg Unified approves positive certification of 1st interim amid concerns about rising costs
Summary
Business services reported a positive certification for the 1st interim budget despite projected deficit spending driven by compensation increases, rising STRS/PERS costs, and the expiration of COVID relief funds; trustees voted to certify.
The district’s business officer presented the 1st interim report covering July 1 to October 31 and recommended a positive certification. The report showed an increased beginning balance and projected additional revenues of roughly $300,000 driven by grants and property tax updates, but also identified key cost pressures: a 9.5% compensation increase, rising STRS and PERS employer costs, increased contributions to special education, and higher utility and operating expenses.
The presenter noted the district’s unrestricted ending balance is conservatively projected at $883,000, leaving a reserve of roughly 13.77%, above the board’s 13.33% minimum but showing downward pressure in multi‑year projections. "We won't get some grant monies in the fiscal year until we show where we've expended them," the presenter said, noting cash‑flow and deferral timing as key uncertainties.
Trustees asked about revenue timing and whether changes in state budget projections could affect the forecast. Staff said the governor’s budget expected in January could change the outlook and that the district will present a 2nd interim forecast in March. The board moved and approved a positive certification of the 1st interim report by roll-call vote.
