Upper Adams SD board directs staff to prepare preliminary budget at 4.9% ceiling as members urge expense review

At a meeting of Upper Adams School District committees, district staff presented the preliminary budget picture and asked the board for direction on how to present the preliminary budget for public review. Shelley, the district finance presenter, walked the board through revenue shifts, expense impacts and fund-balance constraints and asked how to prepare the preliminary budget ahead of the May 19 deadline.

Shelley said the district moved about $1.4 million from local revenue into state revenue to reflect homestead/farmstead credits and outlined how that change affects taxpayers. She also reviewed expense impact items (software renewals, a part-time executive director request from the Kanner Foundation, retirements requiring overlap staffing, and reductions tied to fewer vendor seats) and said unassigned fund balance is roughly $2.3 million with policy limits capping unassigned funds at 8% of expenditures.

On options to cover a projected variance, Shelley presented using fund balance, factoring in proposed state funding (which staff warned is uncertain), a tax increase, or a combination of those approaches. She cautioned that relying on proposed state allocations poses risk because the state budget has been passed late in recent years. "There's a risk if we would factor it in," Shelley said, referring to pending state proposals.

Board members discussed priorities and trade-offs for capital projects that have been proposed for 2026-27 including stage/auditorium lighting, window replacement (75% covered by a facilities grant), a dump truck, mower and other items. Administrators noted the capital reserve was about $3.1 million before known encumbrances (tower and other projects) and recommended keeping approximately $1 million reserved for emergencies.

Asked for direction, Shelley asked whether to prepare the preliminary budget at a particular tax-rate ceiling. Several members signaled support for preparing the preliminary budget with room to go as high as 4.9% (the maximum described by staff) while continuing to pursue expense reductions and additional analysis. "Go ahead and prepare the preliminary budget at a 4.9% and using unassigned?" Shelley asked; members voiced agreement and asked staff to seek further expense-savings options ahead of final adoption in June.

The committee also received routine finance and personnel items: a $2,500 donation for stadium improvements from Adams Electric Cooperative; listed contract renewals and vendor agreements (Chartwells renewal for 2026-27, energy/demand-response agreement with NRG, transportation contracts); appointments of auditors (Kochenauer, Ernest and Myers Berg) and treasurer (Neil Weigel); and a personnel report noting the retirement of Tina Fair (Human Resources Coordinator), seven supplemental contracts, two volunteer approvals and three summer internships at $10 per hour.

The chair reiterated that an executive session would follow the meeting to discuss ongoing negotiations with the Teacher Association.