The SRVUSD Board of Education is set to continue grappling with the district’s financial struggles Tuesday as it reviews an annual financial report and multiple resolutions and discussion items that seek to address an ongoing structural deficit.
According to a report prepared for the upcoming meeting, the district’s unaudited actuals report does not consist of any major surprises – numbers from the unaudited actuals are “very closely matched” to year-end estimates – but does point to the need to tackle its structural deficit.
The deficit persists despite a budget reduction plan that was implemented earlier this year, and despite an $8 million block grant from the state that allowed for some restorations to cuts in the budget reduction plan.
The final balance for the district’s general fund stands at $32,737,944 according to the unaudited actuals report, a majority of which consists of restricted funds. The unrestricted balance is at $1,456,387.
In addition to reviewing the grim state of finances facing the district, the board is set to vote on a proposed resolution that would institute a minimum reserves policy, which was first introduced at last month’s meeting.
“A significant benefit of establishing a fiscal reserve policy is the ability to provide a consistent level of service by providing a financial buffer during economic downturns, unexpected one-time expenses, as well as during once-in-a-generation incidents outside of the district’s control (e.g. natural disasters, pandemics, etc.),” Superintendent of Business Services Danny Hillman wrote in a staff report.
“Overall, the fiscal reserve policy is intended to help mitigate the effects of periodic volatility in State or Federal funding and allow the district to manage economic uncertainty. It is recommended that this policy be reviewed annually,” he added.
The proposed new board policy would set the minimum for reserves at 7%, a level that will take some time to achieve from where the district’s finances stand now.
“The combined 7% percent reserve is expected to be achieved over a period of time by incrementally growing the reserve balance in Fund 17,” district staff wrote in the proposed new policy. “Staff shall report on the status of the reserve annually to inform the Board of Education of the progress made toward achieving the reserve target.”
The board is also set to vote on a resolution for an additional furlough day for Superintendent CJ Cammack, which would reduce costs by $1,787.33.
In addition to those two resolutions, the board is set to discuss two different real estate negotiations during its closed session. One conference consists of negotiations with developer Bates Stringer on price and terms for payment for the property at 699 Old Orchard Road — the site of the district’s headquarters.
The second conference is with Sunset Development on price and terms of payment for 2600 Camino Ramon, home to Sunset’s Roundhouse Conference Center.
The SRVUSD Board of Education is set to meet at 6 p.m. Tuesday (Sept. 16). The agenda is available here.
