Board hears five‑year financial forecast; adopts district tax rate as presented
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Summary
Assistant Superintendent Marasco presented a five‑year fiscal forecast showing revenue/expenditure trends, recent foundation aid increases, projected debt drop in 2029, and a projected average tax increase of about 2.13% over five years; the board approved the recommended tax rate unanimously.
Assistant Superintendent Marasco presented the district's long‑range financial forecast at the Aug. 5 board meeting and recommended the adoption of the district tax rate; the board approved the tax rate unanimously.
Why it matters: The multi‑year forecast helps the district plan budgets, capital projects and levy strategies under the state tax cap and capital exclusions. The presentation explained how recent foundation aid increases and upcoming debt retirements affect future levy capacity.
Presentation summary: Marasco reviewed 10 years of revenue history, noting state aid as the district's main variable revenue source and the tax levy as the largest revenue source. She said foundation aid contributed a higher‑than‑usual increase for 2025–26 (about 10% year‑over‑year), improving the revenue picture but leaving uncertainty about future state aid. Expenditure patterns remain concentrated in instruction, general support and employee benefits (over 70% of the budget).
Marasco showed a five‑year forecast that projected a modest operating deficit in the first forecast year and a reduction of debt service in 2029 that improves the levy picture thereafter. She highlighted the district's low tax base growth factor (limited local assessment growth compared with neighboring jurisdictions) and noted capital projects and bus replacement (including electric bus costs) as factors affecting future debt and tax capacity. Her model assumed taxing to the cap each year and estimated an average tax increase of 2.13% over five years.
Action: Marasco recommended the adoption of the district tax rate; Leanne moved and Fred seconded the motion and the board approved the tax rate unanimously.
Next steps: Administration will continue to refine the forecast (including final audited reserve balances) and present detailed budgetary items at the September meeting; Marasco emphasized the need to plan capital work to take advantage of debt retirement windows.