The committee reviewed the district’s current financial position. The October fund balance is 8.91%, which reflects the receipt of a portion of the district’s levy during that month. Despite this, the fund balance is projected to decrease to 3.76% in June, which is historically one of the district’s largest payroll months.

The committee emphasized the continued need for conservative spending as we move into the second half of the fiscal year. It was also noted that beginning in January, the district will be funded based on actual enrollment, which may impact revenue projections.

Bob recommended that the committee take a formal recommendation to the Board to increase the district’s fund balance target to at least 8% to ensure greater financial stability.

Diane shared that, based on current trends and anticipated expenditures, she is certain that a budget extension will be required this year.

The committee reviewed the district’s current enrollment trends. Enrollment is down 6 FTE in November compared to October. Historical data shows that over the past four years, the district has averaged a decrease of 31 FTE from October to June, with most of the decline occurring at the high school due to Running Start participation and Open Doors programs.

For the 2025–26 budget year, the district budgeted 2,540 FTE. Current enrollment stands at 2,643 FTE, and based on the average October-to-June trend, the district anticipates ending the year at approximately 2,619 FTE.

The committee reviewed long-range enrollment projections for the 2026–27 through 2029–30 fiscal years. After discussion, the committee agreed on the following projected budget enrollment figures:

2026–27: 2,575 FTE

2027–28: 2,580 FTE

2028–29: 2,585 FTE

2029–30: 2,580 FTE

The committee noted an expectation of modest growth, but overall steady enrollment, especially given that construction permits are significantly down, which may limit future housing-related enrollment increases.

These enrollment projections will be forwarded to the Board for approval in the December consent agenda as part of the budget development process.

The committee received an update on current property-related matters. Bids for the Johnson property are due on November 19. There has been considerable interest in the property, with multiple parties requesting tours. In accordance with statutory requirements, bids must be at least 90% of the appraised value in order to be accepted.

The committee also reviewed the status of the aquatic center easement. The signed easement agreement will be presented to the City Council at their next meeting.

In addition, the district is exploring the potential purchase of 30 acres located north of district-owned property off Crestview. This location is financially advantageous, as existing utilities and road access extend directly to the site, which would result in significant cost savings for future development.

PowerSchool Evaluation System

Ryan Mulvey presented the PowerSchool evaluation contract to the committee for review. He shared information on a new evaluation process used by other districts that promotes consistency across the district by utilizing the same process and forms for all evaluations.

PowerSchool has offered a significant discount if the district enters into a three-year agreement. As part of the contract, PowerSchool will also build the evaluation system for the district, a step that other districts strongly recommended based on their experience.

The new platform will eliminate paper forms, provide clear tracking of comprehensive versus focused evaluations, and maintain continuity even when administrator assignments change. The system is expected to be more efficient, user-friendly, and interactive for staff. Ryan noted that the proposal has already been shared with both administrators and PEA.

Legislative Update
Bob provided a brief update from the NEWASA meeting he and Ryan attended earlier in the day with nine legislative representatives. Topics discussed included special education funding, MSOCs, and small school modernization.

He reported that insurance and utility cost increases continue to place significant pressure on school district budgets. Legislators did not indicate that education is a top funding priority this session, though there is hope education won't be cut too much.

Diane emphasized the importance of continued conservative spending, noting that the fiscal outlook is unlikely to improve in the near term.