The Garfield Re-2 school board meeting on Oct. 22 heard presentations on insurance, the District Accountability Committee, quarterly reports and a new security camera system for the district.

Board member Scott Bolitho announced his departure after completing his appointed term, which began when he replaced former board member Tony May in a recall election from 2024. Bolitho thanked district staff, students and administrators, including former assistant superintendent Lisa Pierce and former superintendent Heather Grumley. 

District Accountability Committee update

Kenneth Snead, a Rifle Middle School staff member and committee representative, said the District Accountability Committee has been reviewing and discussing Unified Improvement Plans (UIPs) for each of Re-2’s 10 schools. He said the plans have helped schools, families and staff feel more involved in improvement efforts, with data updated regularly to track progress.

The committee also conducted a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. Strengths included dedicated staff, strong parent engagement and the district’s strategic plan. Weaknesses included the region’s high cost of living and what Snead described as an overuse of acronyms. Opportunities identified were expanded collaboration with Colorado Mountain College and growth in Career and Technical Education (CTE) programs. Challenges included ongoing concerns about staffing shortages, funding and housing — issues shared across Garfield County and much of western Colorado.

Insurance presentation

Glenwood Insurance representatives Nettie Avery and Tom Jensen discussed district coverage provided through partnerships with Glatfelter Insurance Group and Pinnacol Assurance. They noted that national factors such as inflation, catastrophic weather events, cyber risk and supply chain disruptions are driving up commercial insurance costs.

“The good news is that inflation is down, so the rate of inflation is settling into the high 2% or 3% range,” Jensen said. “It’s not the ultimate goal — the federal government wants to get inflation down to 2% — but we anticipate inflation will probably hang around 3% for the foreseeable future.”

Jensen also spoke about social inflation, or the rising cost of insurance claims caused by factors such as third-party litigation funding and large jury verdicts exceeding $10 million. He said changing societal attitudes have also led juries to assign more blame to large organizations.

Avery said regional factors are also pushing up insurance costs, including wildfire risk, rising property values and higher medical and construction costs.

“Vail, Eagle, Aspen — our area — are very high in medical costs,” Avery said. “That will affect workers’ comp and auto.”

She commended Garfield Re-2 for maintaining stability and meeting state requirements to receive a discount on its workers’ compensation premiums.

Quarterly financial report

Finance Director Jason Lynch and Chief Financial Officer Jeff Blanford presented the district’s quarterly report and fund balance projections for fiscal years 2024-25 and 2025-26.

“This year we have deficit spending in the current budget,” Lynch said. “It’s important to understand you can only deficit spend so long before that piece that’s supporting you runs out. Cash flows will be a little tighter this year.”

Lynch said the district began the year with roughly $22 million in reserves, projected to decrease to about $20 million by the end of fiscal year 2025 and $18 million in 2026. The district spends about $6 million a month and brings in around $5 million, he said.

According to the district’s financial presentation, the total fund balance before board reserves is projected at $20 million for the 2024-25 fiscal year, decreasing to $18 million the following year. The unrestricted fund balance is expected to decline from $12 million to about $10 million during that time.

“The fund balance is at basically the highest it can be on June 30,” Blanford said. “It’s like just getting paid — think of your salary or your paycheck.”

The presentation noted that while the district should have sufficient cash to make it to property tax collections in late April or May 2025, it may not be able to do so the following year without adjustments.

Security camera system

The board also reviewed plans to install new Verkada Inc. security camera systems throughout Garfield Re-2 schools, excluding offices, locker rooms, bathrooms and classrooms. The proposed system includes bullet, fisheye and dome-style cameras.

The project’s total cost is estimated at $899,000, but with a Building Excellent Schools Today (BEST) grant of roughly $224,000 and a Garfield County Federal Mineral Lease District grant of $300,000, the district’s share will be about $375,000.