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Board hears FY26 ASBR: district projects 10.7% reserves but flags $3.6M state funding shortfall
Summary
Finance staff told the board the unaudited FY26 ASBR shows a projected 10.7% reserve ratio at year end, with a state funding shortfall of about $3.6 million; trustees discussed legal fees, a possible tax‑anticipation note and potential bond prepayment strategies.
The business office presented the FY26 Annual School Budget Review (ASBR) and June financials and reported an unaudited year‑end operating reserve estimate of 10.7%. The presenter said the budget is balanced unaudited but flagged a roughly $3.6 million deficit driven by state funding that did not fully cover the formula, and cautioned that KPMG’s upcoming audit could make minor adjustments to those unaudited numbers. "We estimate we will end the year at 10.7%," the presenter said.
Trustees asked detailed questions about legal fee trends (monthly variation and a multi‑year annual run rate around $140,000–$150,000) and heard the business office’s plan to consult Raymond James about possible debt prepayment options at the August workshop. Staff also said they expect to request a tax‑anticipation note in October to cover November–December cash flow, and emphasized that any debt service fund prepayment would come from restricted debt service funds, not operating funds.
