February 2022

District Financial Health

February is a good time to offer an update on the financial health of the school district. We will be preparing a budget for the 2022-2023 school year in just a few weeks, which leads eventually to the certification of a property tax by the school board. Pausing right now to report on the financial stability of the district should offer context for this upcoming process.

Key financial considerations:

• The General Fund cash balance continues to be healthy and slightly above the target of $2M, or the equivalent of three months of operating expenses.

• The solvency ratio, a calculation used to assess financial health, at the end of last year was 30%, which is also above the target range.

• Annual expenditures are approximately $7.5M, with about 80% dedicated to wages and benefits for employment of the various departments within the district.

• Annual expenditures continue to grow on average 3% a year, an increase that includes not only inflation but that is also directly related to our slow and steady growth in students, programming, and staffing.

• Valuation is growing at an average rate above 3.5% and is currently approximately $230M.

I once again want to express my respect for the work of our school board and staff, as well as support from our community that has helped us reach and maintain this position. Our goal is to be financially sound while providing a quality educational experience for our children.