Board authorizes transfers for new middle school project and outlines FY25 closeout and FY26 risks

The Concord School District Board on June 25 approved multiple finance actions related to the new middle school project and the district’s year‑end budget. The board authorized a transfer from the facilities and renovation expendable trust fund to cover capital expenditures for the new middle school and adopted a declaration of official intent to reimburse certain project expenditures from future bond proceeds.

Specifically, the board approved a motion to transfer funds from the facilities and renovation trust fund to restore cash spent from the capital account up to the amount presented to the board; the motion passed. The board also voted to accept the declaration of official intent to reimburse preliminary expenditures from future borrowing; bond counsel advised that typical preliminary expenditures (architecture, engineering, acquisition) can generally be reimbursed and explained the documentation expectations for reimbursement when bonds are issued.

Budget context: administration presented an FY25 closeout snapshot and an early FY26 outlook. For FY25, staff noted carryover and encumbrance considerations and said they expect to reach the board’s carryover target of $2.8 million once trust‑fund transfers and finalized reconciliations are applied; staff will move only the amount necessary. For FY26 the presenter warned of potential state‑level risk: if the state adopts a continuing resolution at 90 percent of current education funding, the district could lose roughly $1.9 million; that risk compounds with projected declines in average daily membership (ADM), which would further reduce state aid.

Board discussion stressed careful documentation for reimbursements and that some schematic design costs will be examined by bond counsel to determine the reimbursable percentage because of site changes. Administration said it will return with finalized numbers and that the finance committee will follow up on any amendments that the city or state budget actions require.

Ending: The board’s actions permit the district to continue on the middle school project schedule while preserving the option to reimburse eligible costs from future bond proceeds; administration will bring updated FY25 closeout figures and FY26 recommendations to the board in August and the fall finance cycle.