Finance staff flags slight downward shift in property-tax pattern; recommends conservative budgeting

Alicia, the district's finance/business staff member, told trustees that the district's P2-to-annual property-tax difference for fiscal 2024–25 was a downward variance of $51,310 — the first downward shift of that kind in roughly a decade — though overall property-tax receipts were still about 6% higher than the prior year.

Alicia said the district receives three property-tax estimates from the county (P1, P2 and annual) and noted that, historically, districts' P2 estimates have trended upward to the annual totals. "Our p 2 property tax difference from p 2 to our annual is a reduction of $51,310," she said, and added "the sky is not falling," emphasizing the change as a pattern warranting attention rather than an emergency. Staff recommended maintaining a conservative assumption (about a 3.5% increase) when building the original 2025–26 budget and making adjustments at the first interim once updated numbers are available.

Board members asked clarifying questions about why the variance occurred; Alicia explained it reflects collection adjustments, waivers, and appeals that reduced some expected receipts and some prior-year negative transactions. She and trustees discussed reserve levels; the chair asked staff to fold a reserves-percentage presentation into the first-interim budget discussion.

Why it matters: Property-tax estimates drive local revenue planning for community-funded districts. A repeat of a downward P2-to-annual shift would lower available revenue compared with prior assumptions and would affect original-budget projections, reserve planning and hiring or capital decisions.