December 7, 2022
Assistant Superintendent Mr. Walukiewicz presented the 1st Interim Financial Report for budget year 2022-23. Property tax growth is now estimated to be 7%, an increase of $1.2 million compared to the original budget proposal. The state has also issued one-time grants to the district totaling $3.2 million. These funds are restricted in their use and a more detailed spending plan will be presented to the board next year. On the expenditure side, the Cafeteria Fund required an additional $513,000, primarily for the construction of serveries at each school site. The district also hired more therapists and behavioral specialists for students, which increased staffing costs by $1.6 million.
While the district is currently in a strong financial position, there was also some discussion of potential decreases in revenue and increases in expenditures in upcoming years. The housing market slowdown means that a lower estimate for property tax growth would be prudent. The most recent parcel tax could also expire in 2025 unless voters approve a renewal. Employer contribution rates to the CalSTRS and CalPERS benefits plans for teachers and staff have increased and could continue to do so if those portfolios underperform. General fund contributions toward Special Education have also increased by several million dollars.
Former Assistant Superintendent Randy Kenyon works as a consultant to the district and presented an update on the Measure N Bond Fund. In 2014, voters passed Measure N allowing the district to issue $150 million in bonds to finance school facilities projects. Major expenses paid for by Measure N include the purchase of 10th site ($115 million), portables for Bullis Charter School ($8.6 million), and roofing repairs at Egan ($2.7 million). The remaining balance is not sufficient to pay for the construction of a new school, which is estimated to cost over $150 million when including soft costs. The board hopes to recoup $79 million by selling Transfer of Development Rights (TDRs). Four agreements have been signed and if all goes according to plan, over $50 million in revenue is expected between next year and 2030. The district is also seeking additional buyers for the remaining TDRs. Board president Jessica Speiser confirmed that another bond will be necessary to finance the construction of a new school. Other projects that could be funded with Measure N include the 3-Year Deferred Maintenance Plan (lighting, HVAC and roof upgrades at all school sites).
The board approved an amendment to the agreement with Amy Skewes-Cox to provide consulting services for the 10th Site to comply with the California Environmental Quality Act (CEQA). The revised agreement will include an additional $53,000 in time and materials as well as a $25,000 contingency, bringing the total cost to $369,701. These services are paid for by Measure N.
Stella Kam, Observer