Larkspur-Corte Madera School District

First Interim Financial Reporting

Megan Atkins, Ed.D., District Business Official

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December 17, 2025

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230 Doherty Drive, Larkspur, CA 94939 / 415-927-6960

Strategic Priorities

• Foster healthy, inclusive, respectful, and safe learning environments. Promote the social, emotional, and intellectual growth of all community members.
• Inspire academic growth and civic responsibility through a rigorous, inquiry-based curriculum that is engaging and personalized.
• Attract, cultivate, and retain innovative, inspirational educators.
• Sustain the fiscal integrity and stability of the district.
• Facilitate collaborative partnerships between students, families, schools, and community.

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START

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CA Governor’s Budget Proposal

January 2025

Legislative Analyst’s Review and COLA Recalculation

Spring 2025

Life Cycle of 25-26 �Budget

FINISH

Purpose of 2025-26 First Interim Report:

The 2025-26 First Interim Budget Report provides a critical checkpoint in the District’s fiscal monitoring and planning process. This report includes actual financial activity from July 1 through October 31, 2025, and updates revenue and expenditure projections through the remainder of the fiscal year. It allows the District to identify and respond to any variances from the Adopted Budget and ensures timely adjustments are made to support fiscal solvency.

The First Interim reflects changes in enrollment and Average Daily Attendance (ADA), updated staffing and programmatic costs, and new guidance from the 2025-26 State Budget and Common Message. It also includes revised Multi-Year Projections (MYP) that allow the District to evaluate its long-term financial health and adjust future planning accordingly.

The First Interim Budget serves as a transparent and strategic tool for informed decision-making. It ensures compliance with state reporting timelines, supports alignment with Board and LCAP priorities, and reinforces the District’s commitment to proactive, student-centered financial stewardship.

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LCMSD Unaudited Actuals Analysis (General Fund 01 Combined)

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All Funds Balance Review

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Student Activity Special Revenue Fund (Fund 08):

Purpose: Accounts for student body activities that are District-managed

• Beginning Balance: $2,620
• Ending Balance: $2,620
• *Transactions are managed through Redwood Credit Union and will be updated at Unaudited Actuals

Cafeteria Special Revenue Fund (Fund 13):

Purpose: Manages nutrition services and the Universal Meals Program.

• Beginning Balance: $1,558
• Revenue: $326,375 (Federal and State meal reimbursements)
• Expenditures: $544,832 (Universal Meals program operations)

Deferred Maintenance Fund (Fund 14):

Purpose: Supports major facility repair and upkeep (roofing, HVAC, plumbing, etc.).

• Beginning Balance: $77,375�Revenue: $3,967 (Interest earnings)
• Expenditures: $0 (as of First Interim)
• Ending Balance: $81,342
• The balance reflects reserve growth through interest income, with projects expected in later quarters.

All Funds Balance Review, Cont’d

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Building Fund (Fund 21):

Purpose: Dedicated to Measure D modernization projects and other capital outlay work.

• Beginning Balance: $33,299
• Revenue: $1,447 (interest income)�Expenditures: $8,280 (capital outlay)
• Ending Balance: $26,466

Capital Facilities Fund (Developer Fees - Fund 25):

Purpose: Used for facility expansion, technology upgrades, and related capital improvements.

• Beginning Balance: $340,259
• Revenue: $39,300 (Developer fees and interest)
• Expenditures: $15,486 (Hall Classroom Furniture)
• Ending Balance: $364,073
• Activity aligns with continued investment in instructional technology and small-scale facility upgrades.

School Facilities Fund (Fund 35):

Purpose: Reserved for larger capital improvement projects outlined in the District’s Facilities Master Plan.

• Beginning Balance: $4,680,164
• Revenue: $212,766 (interest income)
• Expenditures: $337,928, including:
• $18,394 in materials/supplies; $274,008 in services (architects, consultants, etc.); $311,534 in capital outlay (equipment/buildings)
• Ending Balance: $4,317,788�This fund supports ongoing facilities planning and modernization projects across campuses.

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Multi-Year Projections (MYP) Highlights

Revenue Growth

• 2025-26 Total Revenue: $26,735,200
• 2026-27: $26,948,602
• 2027-28: $27,729,918�Modest annual increases are projected, primarily from LCFF growth and stable local revenues (e.g., parcel taxes and SPARK contributions).
• LCFF Revenue rises from $16.85M in 2025-26 to $17.85M by 2027-28, reflecting continued growth in property tax collections.

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Expenditure Trends

• 2025-26 Expenditures: $27,700,777
• 2026-27: $27,624,574
• 2027-28: $27,859,628
• Overall expenditures remain relatively flat across the three years, with a slight drop in 2026-27 driven by reductions in staffing (3 intervention FTE and 1 due to declining enrollment).

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Multi-Year Projections (MYP) Highlights

Operating Deficit

• 2025-26: Projected deficit of ($965,577)
• 2026-27: Deficit narrows to ($675,972)
1. Increased due to Math Textbook Adoption and Increase in Employee Benefits
• 2027-28: Small deficit of ($129,710)
• Increase in Employee Benefits

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Expenditure Trends

• 2025-26: Projected total expenditures of $27,700,777, reflecting investments in staffing, benefits, and continued instructional support.
• 2026-27: Slight reduction to $27,624,574, primarily due to planned staff attrition and elimination of temporary positions intervention positions.
• 2027-28: Modest increase to $27,859,628, reflecting step-and-column increases, inflationary adjustments to services, and increased employee benefit costs.�

The overall trend indicates stable expenditure control, with the District maintaining strategic alignment with staffing needs, contractual obligations, and operational priorities across the three-year planning period.

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Revenue Assumptions

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• Property Tax Growth:
• 2025-26: 3.88%
• 2026-27 & 2027-28: 3.5% annually
• This continues to be the primary driver of LCFF revenue growth.�
• Parcel Tax Growth:
• Projected at 5% annually, consistent with the terms of the voter-approved parcel tax measure.�
• LCFF COLA Assumptions:
• 2025-26: 2.30%
• 2026-27: 3.02%
• 2027-28: 3.42%
• COLA is applied to the LCFF base and categorical programs.�
• Lottery Revenues:
• Unrestricted: $190/ADA
• Restricted (Instructional Materials): $82/ADA

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• Mandate Block Grant:
• Mirrors COLA percentages (2.3%, 3.02%, 3.42%) across the three years.

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• Other Local Revenues:
• Includes SPARK contributions, interest income, facility use fees, and developer fees, projected based on historical trends and conservative estimates.

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Expenditure Assumptions

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Staffing Costs:�

• 2025-26: Includes a 3% salary schedule increase across all employee groups.
• Step & Column: An additional 2% annual increase assumed for 2026-27 and 2027-28.
• Health & Welfare benefit costs are projected to rise 5% annually in the two out-years.�

STRS & PERS Rates:�

• STRS: Maintains a 19.10% employer contribution rate for all three years.
• PERS:
• 2025-26: 26.81%
• 2026-27: 26.90%
• 2027-28: 27.80%
• These reflect the state’s updated employer contribution schedules.

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Insurance and Other Benefit Costs:�

• Workers’ Compensation rate holds at 0.749%.
• Unemployment Insurance is projected to be 0.05% in 2026-27 and 2027-28.

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What’s Next - Second Interim 2025-26

The 2025-26 Second Interim Budget Report, due in March 2026, will provide the next formal opportunity to revise the District’s budget based on updated financial data and state guidance. It will reflect actual revenue and expenditure activity through January 31, 2026, and include updated projections through the end of the fiscal year.

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This report will account for:

• Enrollment and ADA adjustments based on spring counts
• Updated personnel costs, including mid-year staffing changes
• Revised revenue assumptions, including tax receipts and state apportionments
• New guidance from the Governor’s Proposed Budget and the Common Message

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The Second Interim ensures continued fiscal transparency and enables the District to:

• Monitor compliance with required reserve levels
• Adjust for unanticipated changes in local, state, or federal funding
• Plan proactively for the 2026-27 budget development cycle�

Once adopted by the Board of Trustees, the Second Interim will be submitted to the Marin County Office of Education for oversight and certification. This ensures the District remains on track to meet its financial obligations for the current and two subsequent fiscal years.

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Larkspur-Corte Madera School District

Interim Financial Reporting

Megan Atkins, Ed.D., District Business Official

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December 17, 2025

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230 Doherty Drive, Larkspur, CA 94939 / 415-927-6960