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District reports $2.3M surplus after one-time lease sale; staff recommends switching reserve to percentage
Summary
The Santa Ynez Valley Union High School District reported a $2.3 million surplus for 2024–25 driven largely by a $1.2 million sale of a Sprint lease and one-time revenues; staff proposed moving from a static $3 million reserve to a percentage-based minimum (20–35%).
The district's chief business official, Alicia, told the board the unaudited actuals for 2024–25 show a $2.3 million surplus after a sustained deficit-reduction effort. She said the surplus reflects a combination of underspending (about $650,000), one-time revenues including a $1.2 million sale of a Sprint lease, $16,000 in student device sales, a $32,000 class-action settlement, STRS reimbursements and higher-than-projected lottery and facility rental receipts.
"This was kind of the perfect storm," Alicia said, explaining that the Sprint lease sale and several other one-time items produced the large influx that accelerated the district's deficit reduction plan. She cautioned that the gain does not eliminate structural pressures and highlighted cash-flow timing issues that require prudent reserves; monthly payroll and benefits run around $700,000.
Staff recommended the board consider changing its reserve policy from a static $3,000,000 minimum to a percentage-based approach that grows with the budget. Alicia recommended considering a range of 25% to 35% and implementing any shift incrementally so program needs (such as filling hard-to-staff positions) are not immediately constrained. Board members questioned how quickly an incremental climb could be implemented without harming near-term hiring needs such as music or arts positions.
The board voted to approve the unaudited actuals and directed staff to return with language for a reserve-policy change and options for staged implementation.
