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3 <br /> 1 Rodney Trice said his immediate focus is on what he has control over, which is ensuring <br /> 2 students have a meaningful and robust learning experience. He thanked teachers, school leaders, <br /> 3 bus drivers, cafeteria workers, and all others who keep schools running daily. <br /> 4 Jonathon Scott, CHCCS Chief Financial Officer, continued the presentation: <br /> 5 <br /> 6 Slide #3 <br /> Fund Balance Status Update <br /> Fund Balance Trend <br /> • FY 2022:$S.OM� FY 2023: $3.6M —>FY 2024: Nearly$0 <br /> • Drivers: structural deficit from decreasing enrollment,salary/benefit growth,inflation <br /> • FY 2025 preliminary: -$200K increase—>Indicates structural deficit removed <br /> Replenishment Strategy <br /> • Board approved three-tier reductions: <br /> o Personnel freezes and attrition (avoid abrupt layoffs) <br /> o Position allotment formula adjustments <br /> o Tier III projected to yield --$4M additional savings(implemented Judy 1, 2025) <br /> • Goal: rebuild reserves above 5.57 BOCC policy minimum threshold <br /> Ch.p.1Hair—b—City S.h-1.I�hc -g THINK (AND ACT) <br /> 7 <br /> 8 Jonathon Scott reported that the district had successfully addressed several years of <br /> 9 structural deficits that had emerged since the pandemic, caused by declining enrollment, <br /> 10 increased salary and benefit costs, and inflation. He said the district's fund balance declined from <br /> 11 $5 million in 2022 to $3.6 million in 2023, and was nearly depleted by the end of the previous <br /> 12 fiscal year. He said to address this crisis, the CHCCS Board of Education adopted a three-tier <br /> 13 reduction approach focusing on attrition where possible. He reported preliminary numbers <br /> 14 showing the district would add approximately $200,000 to the fund balance. He said the district <br /> 15 anticipated savings of about $4 million annually from tier 3 reductions that began July 1, 2025. <br /> 16 <br /> 17 <br />