Council Bluffs reports consecutive general-fund deficits and low reserves

What happened

The district’s general fund recorded a $4.4 million shortfall in FY2025 and a further $1.162 million shortfall in FY2026, leaving its fund balance at about $4.3 million. The reported solvency ratio was 2.68%, below the 5% floor discussed with new financial-metrics policies at their first reading.

Why it matters to families

Two years of spending above revenues and reserves below the stated minimum point to material ongoing budget pressure. Officials said a separate effort to recover about $806,000 in previously undercounted English-learner costs was still subject to state review.

The evidence

In the FY2025–26 certified annual report presentation, the CFO said FY2025 expenses exceeded revenues by $4.4 million and the fund balance fell to about $5.4 million; FY2026 expenses exceeded revenues by $1.162 million and the balance was about $4.3 million. The reported solvency ratio was 2.68%, while the financial-metrics discussion described a 5% minimum. The superintendent said recovery of an additional $806,000 in prior-year EL costs depended on SBRC review. (Transcript at 00:25:33–00:26:50, 00:28:34–00:29:50, 00:42:54–00:43:28, 00:45:11–00:45:24.)

The source