2025 ACFR.pdf (5,656 KB) · Boulder Politics

This is the text extracted from the file, without its layout, tables, or images. Use the original for anything that matters.

ANNUAL COMPREHENSIVE

FINANCIAL REPORT for the fiscal year ended June 30, 2025 Boulder, Colorado • Boulder • Broomfield • Gilpin Counties

ANNUAL COMPREHENSIVE FINANCIAL REPORT For the fiscal year ended June 30, 2025 • Boulder, Colorado

Prepared by: Business Services Division William A. Sutter, SFO Chief Financial Officer

Tip-arpar Karasudhi, MS, MBA Director of Finance and Accounting

BOULDER VALLEY SCHOOL DISTRICT RE-2 ANNUAL COMPREHENSIVE FINANCIAL REPORT For the fiscal year ended June 30, 2025 TABLE OF CONTENTS INTRODUCTORY SECTION

PAGE

Letter of Transmittal ........................................................................................................... 1 – 7 The Certificate of Excellence in Financial Reporting Award ................................................... 8 Certificate of Achievement for Excellence in Financial Reporting ............................................ 9 Organization Chart ................................................................................................................ 10 List of Elected and Appointed Officials .................................................................................. 11 FINANCIAL SECTION Independent Auditors’ Report ........................................................................................ 12 – 16 Management’s Discussion and Analysis........................................................................ 17 – 28 Basic Financial Statements: Statement of Net Position ........................................................................................... 31 Statement of Activities ........................................................................................ 32 – 33 Balance Sheet – Governmental Funds ............................................................... 34 – 35 Reconciliation of the Balance Sheet to the Statement of Net Position ........................ 37 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ..................................................................................... 38 – 39 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities .................... 40 Statement of Net Position – Proprietary Funds ........................................................... 41 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds .................................................................................................. 42 Statement of Cash Flows – Proprietary Funds ........................................................... 43 Statement of Fiduciary Net Position – Fiduciary Funds .............................................. 44 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ........................... 45 Notes to Basic Financial Statements .................................................................. 47 – 89 Required Supplementary Information: Budgetary Comparison Schedule – General Fund ..................................................... 92

TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued)

PAGE

Budgetary Comparison Schedule – Grants Fund ....................................................... 93 Schedule of the District’s Proportionate Share of the Net Pension and Other Post Employment Benefit Liabilities............................................................... 94 – 95 Schedule of Contributions and Related Ratios ................................................... 96 – 97 Notes to Required Supplementary Information ................................................... 98 – 99 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund..................................................... 104 – 105 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – General Fund .......................................................................... 106 – 107 Nonmajor Governmental Funds Descriptions ........................................................... 109 Combining Balance Sheet – Nonmajor Governmental Funds......................... 110 – 111 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .............................................. 112 – 113 Budgetary Comparison Schedule – Food Services Fund ......................................... 114 Budgetary Comparison Schedule – Student Activities Fund ..................................... 115 Budgetary Comparison Schedule – Transportation Fund ......................................... 116 Budgetary Comparison Schedule – Operations and Technology Fund .................... 117 Budgetary Comparison Schedule – Bond Redemption Fund.................................... 118 Budgetary Comparison Schedule – 2014 Building Fund........................................... 119 Budgetary Comparison Schedule – Capital Reserve Fund ....................................... 120 Internal Service Funds Descriptions ......................................................................... 121 Combining Statement of Net Position – Internal Service Funds ............................... 123 Combining Statement of Revenue, Expenses and Changes in Fund Net Position – Internal Service Funds ........................................................................ 124 Combining Statement of Cash Flows – Internal Service Funds ................................ 125 Budgetary Comparison Schedule – Health Insurance Fund ..................................... 126 Budgetary Comparison Schedule – Dental Insurance Fund ..................................... 127 Component Units Description ................................................................................... 129 Combining Statement of Net Position – Component Units.............................. 130 – 131 Combining Statement of Activities – Component Units ................................... 132 – 133

TABLE OF CONTENTS (Continued) STATISTICAL SECTION (Unaudited)

PAGE

Table of Contents .............................................................................................................. 137 Financial Trends Table 1 – Net Position by Component ............................................................ 138 – 139 Table 2 – Changes in Net Position................................................................. 140 – 141 Table 3 – Fund Balances of Governmental Funds .......................................... 142 – 143 Table 4 – Changes in Fund Balances of Governmental Funds....................... 144 – 145 Revenue Capacity Table 5 – Assessed Value and Estimated Actual Value of Taxable Property ..................................................................................................... 146 – 147 Table 6 – Property Tax Levies and Collections ......................................................... 149 Table 7 – Property Tax Rates – Direct and Overlapping Governments .......... 150 – 151 Table 8 – Principal Property Taxpayers .................................................................... 153 Debt Capacity Table 9 – Ratios of Outstanding Debt by Type ......................................................... 154 Table 10 – Ratios of General Bonded Debt Outstanding .......................................... 155 Table 11 – Legal Debt Margin Information ...................................................... 156 – 157 Table 12 – Computation of Direct and Overlapping General Obligation Debt ........... 158 Demographic and Economic Information Table 13 – Demographic and Economic Statistics .................................................... 159 Table 14 – Principal Employers ................................................................................ 161 Operating Information Table 15 – District Employees – Full Time Equivalents .................................. 162 – 163 Table 16 – School Building Information .......................................................... 164 – 171 Table 17 – Teacher Statistics ......................................................................... 172 – 173 Table 18 – Miscellaneous Statistical Data ...................................................... 174 – 175

TABLE OF CONTENTS (Continued) COMPLIANCE SECTION

PAGE

State Compliance Auditors Integrity Report ........................................................................................... 179

Business Services Division

December 8, 2025 Board of Education Members and Citizens of the Boulder Valley School District RE-2 and Dr. Rob Anderson, Superintendent of Schools Boulder, Colorado It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the Boulder Valley School District RE-2 (“the district”) for the fiscal year ended June 30, 2025. State law requires all local governments to publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited by a firm of licensed certified public accountants, in accordance with generally accepted auditing standards (GAAS). This report fulfills that requirement and has been submitted to both the Audit Committee and the Board of Education. Management assumes full responsibility for the accuracy and completeness of the information contained herein, based upon a comprehensive framework of internal controls designed to provide reasonable, though not absolute, assurance that the financial statements are free from material misstatement. The district’s independent auditors, CliftonLarsonAllen LLP, issued unmodified (“clean”) opinions on the district’s financial statements for FY2025. Single audit report will not be issued together this year due to the delay in the Compliance Supplement. No material weaknesses or compliance violations were identified. The Management’s Discussion and Analysis (MD&A), which follows the auditor’s report, provides a narrative overview and analysis of the financial results and should be read in conjunction with this transmittal letter. Profile of the Government The Boulder Valley School District (BVSD) is one of the most comprehensive public education systems in Colorado, spanning nearly 500 square miles across Boulder, Broomfield, and Gilpin Counties. The district operates 61 facilities totaling nearly five million square feet and manages more than 750 acres of property. The district serves the communities of Boulder, Broomfield, Erie, Lafayette, Louisville, Nederland, Superior, and Ward. For the 2024-25 school year, the district served approximately 27,000 funded full-time equivalent (FTE) students in 56 schools, including those enrolled in five charter schools - Summit Middle School, Boulder Preparatory High School, Horizons K-8, Justice High School, Peak to Peak K-12 Charter School, which are considered component units of the district and are funded based on enrollment through contractual agreements. The district provides a wide range of educational programs, including pre-kindergarten through grade 12 education, special education, career and technical education, culturally and linguistically diverse programs, early childhood education, and childcare programs. The district’s facilities range in age from brand-new, state-of-the-art buildings to the oldest continuously operating elementary school in Colorado at 146+ years old which is reflecting the

district’s deep history and ongoing commitment to maintaining safe and efficient learning environments. The Facilities Critical Needs Plan and the 2022 Bond Program continue to address deferred maintenance, safety improvements, and modernization needs to support 21stcentury education. Economic Conditions and Outlook Economic conditions in Colorado serve as a leading indicator of potential fiscal impacts for school districts. Fluctuations in income tax collections, property values, and population growth are beyond local control, so the district’s financial planning must anticipate economic shifts that can either strengthen or constrain funding. The Colorado Business Economic Outlook 2025, compiled by the Leeds School of Business at the University of Colorado Boulder, provides the foundation for the district’s 2025–26 Strategic Financial Plan. Colorado has demonstrated one of the strongest economies in the nation over the medium term. From 2008 to 2023, the state ranked 5th in real GDP and employment growth, 6th in population and labor force growth, and 3rd in personal income growth. However, recent performance has moderated. In 2024, Colorado’s growth rates were closer to national averages, ranking in the bottom 10 states for GDP and home-price appreciation, and in the bottom 20 for personal income and unemployment. While growth has slowed, the state continues to expand, adding jobs, population, and pay at steady rates. Employment in Colorado reached a record three million jobs in October 2024. The state added 72,300 jobs in 2023 (2.5%), with growth slowing to an estimated 46,800 jobs (1.6%) in 2024 and a projected 36,700 jobs (1.2%) in 2025. Education and Health Services, Government, and Construction are expected to lead job gains in 2025. Year-over-year growth was recorded in six of the seven metropolitan areas, including 1.4% job growth in Boulder. Small businesses remain vital to the state’s economy, representing 97% of establishments and nearly half (49%) of all jobs. Colorado’s population increased by 36,100 residents (0.6%) from July 2022 to July 2023, ranking 9th in total growth and 18th in percentage change. Growth is projected to continue but at a slower pace with 43,000 new residents (0.7%) in 2024 and 51,000 (0.8%) in 2025, driven by net migration of 33,000 and a natural increase of 19,000. Slower birth rates, higher deaths from an aging population, and reduced domestic migration all contribute to this moderation. For K–12 education, statewide enrollment is projected to decline by about 3,800 students (0.5%) in 2025–26, continuing the post-pandemic downward trend. Under the new School Finance Act, per-pupil funding will increase 2.5% (about $299 per student) to reflect inflation, but proposed adjustments to the formula may create funding volatility for districts facing declining enrollment. Boulder County’s economy remains diverse and resilient, supported by life sciences, technology, education, and outdoor recreation. In August 2024, the unemployment rate increased to 4.1%, similar to state and national levels, while median household income remained high at $95,363, exceeding both state and national averages and underscoring the area’s strong labor market and well-educated workforce. Fiscal Year 2025 Highlights The district’s state per pupil revenue (PPR) for 2024-25 was at $11,221, an increase of 7.1% from the prior year. However, the district’s enrollment decreased slightly, reflecting broader

demographic trends, which placed pressure on total revenue and required cost and operational alignment. Overall School Finance Act funding increased by 4.8%. During FY2024-25, the district revised its budget on a foundation of 27,471 student budgeted FTEs, with a beginning General Operating Fund balance (including all reserves) of $82.4M. These strong reserves have given the district flexibility, especially in the face of enrollment declines and rising costs. Projections for 2025-26 indicate a decline from 27,143 (official count) to 26,891 (K-12) or 252 fewer students. This decrease in enrollment reduces School Finance Act because funding is closely tied to student counts. To address increasing expenses, particularly compensation, inflationary pressures, and essential services, the budget incorporates both base (ongoing) adjustments and one-time resource allocations. The district continues to evaluate trade-offs and fund balance uses to maintain educational quality. By planning carefully and maintaining solid reserves, the district is positioned to absorb revenue fluctuations without abrupt service cuts, though maintaining fund balance will require continued attention in future years. Budgetary Control State law requires the Board of Education to adopt an annual budget prior to July 1 of each fiscal year. The district’s budget serves as the foundation for financial planning and control. The budget is prepared by fund and function and may be revised through January 31 based on updated revenue and expenditure projections. Budgetary transfers are governed by Board Policy DBJ and require superintendent approval. The district’s primary revenue sources include state equalization funding provided under the Colorado School Finance Act, local property taxes levied under state statute, and specific ownership taxes collected by counties. Additional revenues are generated through voterapproved mill levies, federal and state grants, and program service fees. The combination of these sources provides the district with a balanced and stable revenue structure to support ongoing operations and long-term educational goals. The district works closely with the Colorado Department of Education, the counties of Boulder, Broomfield, and Gilpin, and local municipalities that provide property assessment, collection, and shared service support. These intergovernmental partnerships are essential to maintaining accurate tax assessments, efficient funding flows, and coordinated capital improvement efforts across the region. Long-Term Financial Planning and Policies Each year, the Colorado General Assembly determines statewide K-12 funding under the School Finance Act. The district’s Board-adopted financial policies guide debt management, fund balance reserves, investments, and risk management in accordance with GFOA and ASBO best practices. In order to meet the challenges of school funding in Colorado, the board of education adopted Policy DB in 2009, which dictated a minimum level of year-end fund balance in order to ensure

the district’s ongoing financial health. The policy restricts the district from using one-time money for ongoing expenditures. In addition, current policy specifies the amount to be held as a contingency reserve. Following the requirements of this policy means the district will have to make annual budget adjustments so that new expenditures do not exceed new revenues and a moderate level of reserves is maintained. This policy allows the district to make smaller adjustments over time rather than making dramatic cuts when the cost of programs has outgrown revenue sources. The two key elements of the policy are spending limitations and reserve requirements as follows: Spending Limitations:  The General Operating Fund budget will be developed so that the total of annual ongoing expenditures and transfers does not exceed annual revenues.  If the General Operating Fund ends any fiscal year with an ending balance beyond required reserves, this amount can only be used for one-time uses in subsequent years.  One-time uses are defined as expenditures, transfers and/or reserves committed by the district for a finite period of time, on a non-recurring basis. Reserve Requirements:  The General Operating Fund budget will be developed containing an ending fund balance equal to required reserves including the TABOR reserve plus a contingency reserve equal to a minimum of three percent of fiscal year spending.  The reserve has been set at four percent since 2019. The need for additional reserves shall be reviewed annually.  Funds in the contingency reserve shall not be spent without board approval. The request for approval must include a plan for ensuring that the expenditure will not exceed the fixed dollar amount approved by the board, and must also include a plan for replenishing the reserve within two years from first dispersal.  The budgets for all other funds will be developed to include, at a minimum, the required TABOR reserve.  The General Operating Fund budget will be developed on a generally accepted accounting principles (GAAP) basis. At June 30, 2025, the district is in compliance with these requirements. Strategic Initiatives The Boulder Valley School District’s All Together for All Students Strategic Plan, now in its seventh year, remains anchored in three long-term student outcomes, Inspire a love of learning in every student, Equip them with the knowledge and skills that will help to make them successful, give them the opportunities and connections so that they can Soar after high school in the college or career pathway of their choice. Much has changed since 2019 in the world of education and BVSD has celebrated the successful completion of many strategic goals. Following an independent review from a National expert in 2024, BVSD re-committed to the core tenets of our strategic plan with a narrowed focus on four key objectives critical to ensuring students in BVSD receive the highest quality education experience possible.

New Strategic Objectives    

No Limits: All students experience grade-level, standards-based instruction. Next Best Step: Educators and administrators implement & track tiered supports and instructional strategies to engage and grow all students, and monitor success in doing so. Define the Destination: Throughout their PK-12 career, all students access career exploration opportunities and earn at least one of the following: College Credit, Industry Certification, Work-Based Learning Experience or Seal of Biliteracy. Valued & Included: All students feel included and valued in their learning environments, schools engage in restorative practices with students when appropriate, and schools consistently apply recommended resolutions for specific disciplinary events (i.e., discipline framework).

Key Performance Indicators: The vision set though the long-term outcomes and strategic objectives are realized through intentional planning and support. In BVSD our strategic goals are embedded within the Unified Improvement Plans (UIP) where we are able to monitor the progress being made each year, within each strategic objective. Additionally, BVSD has committed to transparently tracking and communicating the metrics aligned to the strategic plan, also known as “Key Performance Indicators” or “KPIs”. This is accomplished through our all new KPI Dashboard, allowing all staff, students and community members to join BVSD in monitoring the progress being made within all four Strategic Objectives through an easily accessible online data visualization tool. Defined Success by 2029 The Boulder Valley School District is unwavering in our common vision for success by 2029:      

Increase achievement and growth scores overall, and for historically marginalized groups Appropriate growth of students receiving academic interventions Proportional rate of students identified for Special Education & Gifted and Talented Increase the percentage of students who graduate and obtain at least one GRAD+ recognition Increase fidelity to the BVSD Discipline framework Decrease Out of School Suspensions while reducing disproportionality Bond Program Progress

In November 2022, voters approved a ballot measure authorizing the district to issue $350M in general obligation debt to fund capital projects identified in the Facilities Critical Needs Plan, approved by the board of education in August 2022. The plan includes replacing New Vista High School and constructing a new elementary school in Erie, Colorado, among a variety of other deferred maintenance and educational enhancement projects across the district. To provide a high level of accountability and transparency in the implementation of the Bond Program, the board of education has appointed a Community Bond Oversight Committee (CBOC) that provides independent review of the capital improvement projects. The Community Bond Oversight Committee is comprised of voluntary representatives of the Boulder Valley School District community. The committee’s membership is designed to reflect the diversity of the district and its varied stakeholder interests. The 2022 General Obligation Bond continues to drive substantial improvements across the district through its Facilities Critical Needs Plan. This plan was developed to address deferred 5

maintenance, enhance safety, modernize classrooms, and ensure the district’s facilities support 21st-century teaching and learning. FY2025 marked significant progress in several key areas: New Vista High School Replacement: Work advanced on replacing the 70-year-old New Vista High School building with a modern facility designed to better support today’s instructional models and community needs. Replacing rather than renovating the structure was the most cost-effective solution due to the age, layout, and limitations of the existing facility. Career & Technical Education (CTE) Renovations: Multiple high schools are seeing focused investments aimed at expanding and modernizing CTE learning environments. For example, Centaurus High School has over $15M in projects, including around $2.86M specifically for CTE renovations (e.g. updated maker spaces, flexible labs, better alignment of classroom adjacency) to support county-level demand for technical skills. Similarly, Boulder High School’s bond project includes $2.86M for CTE space improvements, plus broader renovations to support specialized learning and program expansion. ADA and Playground Improvements: Many elementary schools received accessibility upgrades to ensure playgrounds and outdoor spaces are safe and usable for students of all abilities. These improvements reflect the district’s commitment to equity and inclusion. Critical Infrastructure and Safety Upgrades: Projects across schools such as Fireside Elementary, Horizons K-8, Monarch PK-8, and others included roof replacements, HVAC and fire protection system upgrades, plumbing and electrical enhancements, and other essential repairs that extend the life of facilities and reduce long-term maintenance costs. These investments are more than just construction projects, they are strategic commitments to the district’s future. Modern facilities reduce operational costs, enhance safety, and create environments that inspire learning. Expanded CTE spaces respond to the needs of the local economy, providing students with valuable skills while strengthening community partnerships. Accessibility improvements and playground updates ensure every student can fully participate in school life. Together, these projects reflect the community’s shared vision of education as a cornerstone of Boulder Valley’s vitality. Other Information Awards and Recognition For FY2024, the district received both the ASBO Certificate of Excellence in Financial Reporting and the GFOA Certificate of Achievement for Excellence in Financial Reporting. In order to be awarded a Certificate of Excellence and the Certificate of Achievement, the district must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. The Certificate of Excellence and Certificate of Achievement are valid for a period of one year only. The FY2025 ACFR will be submitted for consideration again. These awards reflect the district’s ongoing commitment to transparency, accountability, and excellence in financial management.

Acknowledgments The preparation of this report represents the collaborative efforts of the Business Services Division, the district leadership team, and the Audit Committee. We extend sincere appreciation to all staff whose dedication ensures the district remains financially sound and focused on its mission. We also thank CliftonLarsonAllen LLP for their professionalism in conducting the audit and providing valuable insights. Finally, we express gratitude to the Board of Education and Superintendent Dr. Rob Anderson for their leadership and commitment to the success of every student in Boulder Valley School District and Heather Grooters, CPA, Accounting Manager, for her assistance in the preparation of this document. Respectfully Submitted,

William A. Sutter, SFO Chief Financial Officer

Tip-arpar Karasudhi, MS, MBA Director of Finance & Accounting

The Certificate of Excellence in Financial Reporting is presented to

Boulder Valley School District for its Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024. The district report meets the criteria established for ASBO International’s Certificate of Excellence in Financial Reporting.

Ryan S. Stechschulte CAE, SFO President Director

James M. Rowan, CEO/Executive

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting Presented to

Boulder Valley School District RE-2 Colorado For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024

Executive Director/CEO

Director Budget

Director Finance & Accounting

Director Talent Acquisition & Retention

Director Non-Licensed Staff

Director IT Project Management

EMERALD MURPHY

Director Community Schools

STEPHANIE SANDERS

Director Federal Programs & Grants

Director IT Applications Solutions

KRISTI MULDOON

MIKE WILCOX

Director Student Enrollment

PAUL SQUILLACE

Director Supply Chain Management

Director Licensed Staff

BRIAN MUNOZ

TIP-ARPAR KARASUDHI

KARI ALBRIGHT

RUSS BENNETT

LAUREN LOUGH

CHRIS PASCHKE

Director IT Security

MATT ELDER

Director IT Business Operations

MARIA WILSON

BOB ROARK

DAVID JANAK

KRIS STOPPENHAGEN

Executive Director Bond Planning & Construction

BRENDAN SULLIVAN

Director Safety, Security & Emergency Services

CAROLYN VILLA

Director Food Services

CAREY JENSEN

Director Facilities

MARGARET HUFFMAN

Director Health Services

HEATHER HANSEN

Director Teaching & Learning, East

DAN RYAN

Executive Director East Network

EILEEN TRUJILLO

Director Teaching & Learning, NW

TAMARA ACEVEDO

Executive Director NW Network

JENNIFER GARFIELD

Director Teaching & Learning, SW

NEIL ANDERSON

Executive Director SW Network

SENNEN KNAUER

Director Student Support Services

Director Athletics

Director IT Service Delivery

MEGAN BANOLA

HARRY WATERMAN

Director Transportation

Director Benefits & Risk Management

Director Compensation

Director IT Hardware Services BRENDAN SULLIVAN

ROBBYN FERNANDEZ

KELLY DAVIS

Assistant p Superintendent Schools

BILL SUTTER ROB PRICE

DR. ROB ANDERSON

District Superintendent

District B

NICOLE RAJPAL, PRESIDENT

Director STEAM

JENNIFER SKROBELA

MICHELLE QAZI

Director e Literacy

THERESA CLEMENTS

Director Early Childhood Education

EMMA HERZOG

Executive Director Academics

SHANNON GAMBLE

Director MTSS

FLEURETTE KING

MATT DUDEK

Director Special Education, Affective Needs

TRAVIS U DUROCHER

Director e Special u Education, SW

LESLIE GAISER

Director e Special Education, East c

JENNIFER BOSSMAN

Director ec Special u Education, NW

Director Equity & Inclusive Teaching & Learning

Executive Director Special d Education

DR. NATIVITY MILLER

Chief Academic Officer

DR. LORA DE LA CRUZ

Deputy Superintendent

JORGE CHAVEZ

District G

MICHELLE BRENNER

Director CLDE

District D

LALENIA QUINLAN AWEIDA

KRISTEN NELSON-STEINHOFF

BOARD OF EDUCATION BETH NIZNIK, VICE PRESIDENT

District E

Assistant p Superintendent Operational Services

Chief Financial Officer

RANDY BARBER

KATHLEEN SULLIVAN

Assistant p Superintendent Human Resources

Chief Communications Officer

KITTY SARGENT

District F

Legal Counsel

ALEX MEDLER

District C

Director CTE

DR. ARLIE HUFFMAN

DR. BIANCA GALLEGOS

Executive Director Strategic Partnerships

DR. JONATHAN DINGS

JASON UNGER

District A

Executive Director Assessment & Program Eval

Boulder Valley School District

LEADERSHIP ORG CHART

JAMES HILL

FRANKIE ELMORE

Chief Information Officer

10 TAMMY LAWRENCE

Director Student Support Services

KATIE MILLS

Director Professional Learning

LYNN GERSHMAN

Director Academic Services

CHRIS BRECHT

Director Strategic Initiatives

DIRECTORS

SUPERINTENDENT CABINET LEVEL EXECUTIVE DIRECTOR

BOULDER VALLEY SCHOOL DISTRICT RE-2 List of Elected and Appointed Officials June 30, 2025

Board of Education

District C Alex Medler

District E Beth Niznik, Vice-President

District F Kitty Sargent

District D Lalenia Quinlan Aweida District B Nicole Rajpal, President

District A Jason Unger

District G Jorge Chavez

Superintendent’s Cabinet Rob Anderson, Ed.D……………….….………………….. Superintendent Lora De La Cruz, Ph.D..…………..….………..…Deputy Superintendent Frankie Elmore..….……………..…….…………Chief Information Officer Bill Sutter, SFO………………..………..…………..Chief Financial Officer Kathleen Sullivan, J.D....….……….…………………….... Legal Counsel Rob Price….………..…….Asst. Superintendent of Operational Services James Hill, Ph.D…….…….. Asst. Superintendent of Human Resources Robbyn Fernandez, Ed.D……...….….. Asst. Superintendent of Schools Nativity Miller, Ph.D............................................ Chief Academic Officer Randy Barber………............................… Chief Communications Officer David Stewart.…………Boulder Valley Education Association President Ginger Ramsey……………..……….....Broomfield High School Principal

(This page was left blank intentionally.)

CliftonLarsonAllen LLP CLAconnect.com

INDEPENDENT AUDITORS’ REPORT

Board of Education Boulder Valley School District Boulder, Colorado Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Boulder Valley School District (the District), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the District, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial statements of the component units were not audited in accordance with Government Auditing Standards. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

Board of Education Boulder Valley School District

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: 

Exercise professional judgment and maintain professional skepticism throughout the audit.



Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.



Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of District’s internal control. Accordingly, no such opinion is expressed.



Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.



Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Board of Education Boulder Valley School District

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison information for the General Fund and the Grants Fund, pension information, and OPEB information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The combining and individual fund financial statements and schedules and the Colorado Department of Education Auditors Integrity Report, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules and the Colorado Department of Education Auditors Integrity Report is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Board of Education Boulder Valley School District

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2025, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering District’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP Denver, Colorado December 2, 2025

Management’s Discussion and Analysis As management of the Boulder Valley School District RE‑2 (“the district”), we present this narrative overview and analysis of the district’s financial activities for the fiscal year ended June 30, 2025. Readers are encouraged to consider the information presented here alongside the Letter of Transmittal on pages 1–7 of this report. Financial Highlights •

At June 30, 2025, the district’s liabilities and deferred inflows of resources exceeded its assets and deferred outflows of resources by $398.97M (net position). This deficit is primarily attributed to the district’s net pension liability of $674.0M and related deferred inflows of $61.6M offset by $141.8M in deferred outflows, as required under GASB 68.

•

Total net position decreased $4.8M during FY2024-25, reflecting a reduction in assets and deferred outflows and an increase in deferred inflows of resources.

•

The district’s current and other assets (primarily cash and investments) decreased $74.2M due to a continued spending for capital projects under the Facilities Critical Needs Plan, including progress on New Vista High School. These capital investments increased total capital assets by $31.9M.

•

The district’s noncurrent liabilities decreased $36.3M, driven primarily by debt principal repayments and bond premium amortization.

•

At June 30, 2025, the district’s governmental funds reported a combined fund balance of $290.5M, a decrease of $85.3M from prior year, mainly due to construction activity under the Facilities Critical Needs Plan.

•

At June 30, 2025, the unassigned fund balance of the General Fund was $67.7M, representing 15.3% of total General Fund expenditures.

Overview of the Financial Statements Management’s discussion and analysis is intended to serve as an introduction to the district’s basic financial statements. The district’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. The government-wide statements provide a long-term view of the district’s finances, while the fund statements provide detailed information about individual funds. The notes explain significant accounting policies and provide additional detail on certain amounts appearing in the financial statements. The government-wide statements distinguish between activities that are primarily supported by taxes and intergovernmental revenues (governmental activities) and those that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). BVSD’s activities are primarily governmental. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers a broad overview of the district’s financial activities in a manner similar to a private sector business. The statement of net position presents information on all of the district’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. The difference between assets plus 17

deferred outflows of resources and liabilities plus deferred inflows of resources is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the district is improving or deteriorating. The statement of activities presents information on how the district’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). The government-wide financial statements include not only the district itself (known as the primary government), but also information about the district’s five charter schools (known as component units), for which the district has exclusive chartering authority under state statute. Financial information for the charter schools is presented separately from the primary government because the charter schools are legally separate from the district but are financially accountable to the district and provide services to the district’s students. The government-wide financial statements can be found on pages 31-33 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The district, like other governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the district have been divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported in the government-wide financial statements. However, unlike the governmentwide statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the district’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between the fund financial statements and the government-wide financial statements. The district reports four governmental funds that are considered major funds: the General Fund (which combines the district’s General Operating Fund, Risk Management Fund, Differentiated School Support Fund, Athletics Fund, Community Schools Fund and Preschool Fund), the Grants Fund, the Bond Redemption Fund and the Building Fund. They are presented separately in the fund financial statements with the remaining governmental funds combined into a single aggregated presentation labeled non-major governmental funds. Nonmajor funds include the Food Services Fund, the Student Activities Fund, the Transportation Fund, the Operations and Technology Fund and the Capital Reserve Fund. Individual fund information for the nonmajor funds is presented as combining and individual fund statements and schedules after the notes section of this report. The basic governmental fund financial statements can be found on pages 34-40 of this report. 18

Proprietary Funds: Internal service funds are used to accumulate and allocate costs internally among the district’s various functions. The district uses internal service funds to account for employee benefit programs for health and dental insurance. The basic proprietary fund financial statements can be found on pages 41-43 of this report. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because these sources of funds are not available to support the district’s direct educational programs. The accounting method used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 44-45 of this report. Notes to the Basic Financial Statements: The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found on pages 47-89 of this report. Other Information: In addition to the basic financial statements and accompanying notes, this report also contains other required supplementary information that includes budgetary comparison schedules for the General Fund and Grants Fund, certain supporting pension and other post-employment benefit schedules, and accompanying notes. Required supplementary information can be found on pages 92-99 of this report. Combining and individual fund statements and schedules can be found on pages 104-133 of this report. Government-wide Financial Analysis The following analysis highlights significant changes in the district’s financial position between FY2023-24 and FY2024-25. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The liabilities and deferred inflows of resources of the district exceeded its assets and deferred outflows of resources by $398.9M (net position) at June 30, 2025.

Current and other assets (primarily cash and investments) decreased by $74.2M, due to significant increase in spending for capital projects under Facilities Critical Needs Plan. Capital spending reduced current assets but increased capital assets by $31.9M. This reflects $140.9M in Facilities Critical Needs Plan project progress and $5.5M in new bus acquisitions, offset by $41.0M in depreciation and amortization and $70.7M in asset disposals. Noncurrent liabilities decreased $36.3M, due to the following: •

Debt principal repayments of $32.4M and bond premium amortization of $6.23M, offset by the following items; o net direct borrowing for 18 additional buses of $2.5M o net decrease in SBITAs ($2.5M) due to the district established a threshold of $300,000 per year effective July 1, 2024. Most prior SBITA agreements did not meet this threshold and were deleted out of this category o net increase in compensated absences (implementation of GASB 101) of $2.2M

The district’s net pension liability declined by $86.9M, along with related changes in deferred inflows and outflows of resources. These shifts primarily reflect updated actuarial assumptions, investment performance, and the district’s ongoing participation in the statewide pension system under GASB 68 and 71. The overall decrease indicates a modest improvement in the funded position of the plan and reduced long-term obligations for the district. At June 30, 2025, $21.2M of the district’s net position represents its investment in capital assets (e.g. land, land improvements, buildings, equipment, vehicles, and software-based information technology arrangements), less the outstanding debt used to acquire these assets. This balance decreased $13.0M from the prior year, reflecting ongoing depreciation and amortization expense on existing assets and timing differences between capital project spending and related debt repayments. The district utilizes capital assets to provide services to its constituents; consequently, these assets are not available for future spending. Although the district’s investment in capital assets is reported net of related debt, the resources necessary to repay the debt must be provided from other sources since the capital assets will not be liquidated to pay the debt. In addition, $99.4M of the district’s net position is subject to external restrictions on how the assets may be used. Restricted net position increased $4.7M over the prior year. The remaining unrestricted balance of net position is a deficit of $519.6M.

Governmental Activities: Overall, the district’s net position decreased $4.8M from the prior year compared to $11.4M in prior year. Notable changes from the prior year include the following: Capital Grants and Contributions: The $2.7M increase is due primarily to $3.8M contribution for capital project from Summit Middle School. State Equalization: Total program funding, as determined by the State, increased significantly from the prior year, along with an inflationary adjustment, due to legislative actions that increased the base per-pupil amount and reduced the Budget Stabilization Factor, resulting in a higher State contribution to school districts. Other Revenues: The $4.6M decrease is related primarily to a much higher insurance proceeds received during the prior year, lower indirect cost revenues from grants and miscellaneous local revenues in the current year. Instruction Expenses: The $16.5M increase (or 4.6% from prior year) in instruction expense is primarily due to the district provided a 4% cost of living adjustment, movement on negotiated salary schedules, and increase in health insurance costs. Supporting Services: Expenditures increased $14.4M (6.7%) primarily due to the 4% cost‑of‑living adjustment, negotiated step movements, and higher employer health‑insurance contributions. Financial Analysis of the Government’s Funds As noted earlier, the district uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the district’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the district’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as it represents the portion of fund balance that has not yet been limited to use for a particular purpose by either an external party, the district’s board of education, or an individual that has been delegated authority to assign resources for use for particular purposes by the district’s board of education. At June 30, 2025, the district’s governmental funds reported combined fund balances of $290.5M, a decrease of $85.3M from the prior year. Approximately 23.3% of this amount ($67.7M) constitutes unassigned fund balance, which is available for spending at the district’s discretion. Remaining fund balance is either non-spendable, restricted, or assigned to indicate that it is either not in a spendable form ($7.5M), restricted for particular purposes ($183.2M), or assigned for particular purposes ($32.0M). Additional information on the district’s ending fund balances can be found in Note 8 of this report. General Fund: The General Fund is the chief operating fund of the district. For reporting purposes, the General Fund includes the General Operating Fund, Risk Management Fund, Differentiated School Support Fund, Athletics Fund, Community Schools Fund and Preschool Fund. A Combining Balance Sheet and Combining Schedule of Revenues, Expenditures and Changes in Fund Balances of the General Fund are shown on pages 104-107 of this report. As of June 30, 2025, the General Fund reports ending fund balance of $102.1M, a decrease of $2.8M from the prior year. The following table reflects the amount of revenue from various sources.

Property Taxes: Property tax revenues were based upon a levy of 35.916 mills applied against an assessed valuation of $9,594.8M compared to 35.548 mills and an assessed valuation of $9,537.5M in the prior year. State Equalization: Total program funding increased notably from FY2023‑24 due to legislative changes that raised the base per‑pupil amount and further reduced the Budget Stabilization Factor, resulting in a larger State share of total program funding beyond standard inflation adjustments. Other State Revenue: Other state revenues rose $4.6M from the prior year, driven mainly by higher PERA on‑behalf payments. The State resumed its $225M annual contribution to PERA and made partial catch‑up payments. The district’s proportionate share increased to $5.6M in FY2024‑25, following $1.3M in FY2023‑24 and $15.6M in FY2022‑23. The following table reflects expenditures by major program area. Overall, expenditures increased by 7.6% from the previous year.

Approximately 90% of General Fund expenditures are for staff salaries and benefits. For FY202425, employees received a 4% cost-of-living increase and step increases for experience and education, in accordance with district approved salary schedules, and a 4.6% increase in district contributions to health insurance.

Grants Fund: The Grants Fund reported $0 fund balance, as revenues are only recognized as eligible expenditures are incurred. Revenues of $15.8M are lower than the prior year due to a completion of ESSER grants in FY2023-24. Bond Redemption Fund: The Bond Redemption Fund reported fund balance of $67.7M, an increase of $1.1M from the prior year. Property tax revenues of $70.5M in the current year were based upon a current year levy of 7.498 mills applied to an assessed valuation of $9,594.8M, compared to 7.711 mills and an assessed valuation of $9,537.5M in the prior year. The ending fund balance is necessary to have sufficient cash on hand to make debt service payments as they become due in the subsequent year. Property tax levies are based upon a calendar year cycle while debt service payments are made each fiscal year in December and June. Building Fund: The Building Fund accounts for the issuance of debt approved by voters. In November 2022, voters approved a ballot measure authorizing the district to issue $350.0M in general obligation debt to fund capital projects identified in the Facilities Critical Needs Plan. In April 2023, the district issued its first round of debt, $187.3M in General Obligation Bonds, Series 2023, including premium of $13.4M. No additional debt was issued in FY2023-24 nor FY2024-25. General Operating Fund Highlights The General Operating Fund is the core operating fund of the district. For the year ended June 30, 2025, fund balance of the General Operating Fund increased $6.6M to $82.4M. Changes in revenues and expenditures of the General Operating Fund have been explained above as they represent the predominant activity of the General Fund.

General Operating Fund expenditures by function for the past five fiscal years are shown in the table above. The district has spent a minimum of 82.2% of General Operating Fund resources on instruction-related activities over the past five fiscal years. The decrease in school administration and operations expenditures from 2020 to 2023 is due primarily to an increased allocation of certain eligible General Operating Fund expenditures to the Operations and Technology Fund. An analysis of the district’s General Operating Fund ending fund balance is shown in the following chart. Over the ten-year period from FY2015-16 to FY2024-25, fund balance of the General Operating Fund has fluctuated from a low of $30.89M at June 30, 2016, to a high of $83.06M at June 30, 2025. 24

One of the primary factors causing fluctuations over time is that the district’s voters have approved numerous mill levy overrides, as allowed by Colorado Statute. In 1991, 1998 and 2002, the district’s voters approved mill levy overrides. In 2010 voters approved an additional mill levy override, which incorporates the previous voter approvals, and allows for a single indexed mill levy override that generates property tax revenues in an amount equal to 25% of the district’s total program funding (the maximum amount allowed by the current Colorado School Finance Act), plus a cost of living adjustment from 2002. This allows the override revenue amount to increase as the district’s total program increases. In addition, voters approved an Operations and Technology mill levy in November 2016. As discussed above, this allowed the district to allocate eligible expenses related to operations and maintenance and central support services from the General Operating Fund to the Operations and Technology Fund. General Fund Budgetary Highlights Colorado local government uniform accounting and budget laws require that a budget be adopted and reported for all funds. Total expenditures for each fund may not exceed the amount appropriated. Appropriations for a fund may be increased provided they are offset by unanticipated resources. All appropriations lapse at the end of the fiscal year. Supplemental appropriations that alter the total expenditures and transfers of any fund must be approved by the board of education. The board of education adopted the 2024-25 budget in June 2024 and approved the revised budget in January 2025. A surplus of approximately $36.1M (net of reserves) from FY2023-24 resulted in a higher-than-expected beginning fund balance used in developing the original FY2024-25 budget. The surplus was primarily the result of the following: • •

$10.1M carryover items from FY2023-24 $15.5M estimated in personnel savings at mid-year 25

• •

$2.0M in overbudgeted interest income $4.5M underbudgeted transfer to other funds

A Budgetary Comparison Schedule for the General Fund is included on page 92 of this report. Significant differences between final budgeted and actual revenues are as follows: •

•

Actual General Fund revenues totaled $453.7M, which was $0.9M (0.2%) higher than the final budget. The variance was mainly due to higher Specific Ownership Taxes ($1.3M), Tuition and Fees ($0.6M), and Federal Grants ($0.6M). These gains were partially offset by lower Property Taxes ($3.3M) and State Equalization ($0.2M). Other local and state revenues were slightly above projections. Actual expenditures were $443.4M, which was $78.3M (15.0%) below the final budget. The majority of the underspending occurred in Instructional, Central Support, and Operations and Maintenance functions due to timing of program spending, position vacancies, and delayed project activities. The district also maintained its full $33.7M budgeted reserves, contributing to the overall positive variance.

Capital Assets and Debt Administration Capital Assets: The district’s investment in capital assets as of June 30, 2025, and 2024, is summarized as follows:

Higher spending in current assets led to an overall $31.9M growth in capital assets. Total additions of $104.9M reflected $140.9M in project progress and $5.5M in bus acquisitions, offset by $41.0M in depreciation and $70.7M in asset disposals. Additional information on the district’s capital assets can be found in Note 5 of this report. Debt Administration: The district’s long-term debt as of June 30, 2025 and 2024, is summarized as follows:

During the current fiscal year, the district repaid $31.78M of principal on general obligation bonds and $4.16M of principal on other borrowing arrangements. At the most recent publicly disclosed rating action, the district maintained an “AA+” rating from Fitch Ratings, an “Aa1” rating from Moody’s Investors Services, and an “AA+” rating from Standard & Poor’s for its general obligation debt. These ratings remain among the highest of any Colorado school district. State statute limits the amount of general obligation debt a government may issue to 20% of its total assessed valuation. At June 30, 2025, the district’s legal debt limit is $1,918.97M, which exceeds the district’s total outstanding debt of $849.61M by $1,069.36M. Additional information on the district’s long-term obligations can be found in Note 7 of this report. Economic Factors and Next Year’s Budget Each year the state budget is crafted by the governor and legislature to determine how much of the total budget will be allocated to K-12 education. The state economic picture is important to the district because a major source of funding for the district’s General Operating Fund is determined through the state’s School Finance Act (SFA), established by the state legislature. After the state sets the total funding for K-12 public education, each local district determines how to fund its specific system and allocate resources to schools. The majority of the district’s General Operating Fund revenues are determined by state-level funding decisions. For FY2025-26, projected per-pupil revenue (PPR) is $11,576, up 3.2% from $11,221 in FY2024-25. Total program funding under the School Finance Act is projected to be $313.6M, an increase of $5.3M (1.7%) over the revised 2024-25 budget. For the fiscal year ended June 30, 2025 the district’s required contribution rate to Colorado PERA is 21.40% of covered payroll. Related to Senate Bill 18-200, there is no required change in the district’s contribution rate for FY2025-26. The funded pupil count is an important component of school funding. The SFA identifies a perpupil funding amount, and the number of full-time students enrolled in a district determines the amount of total funding. The funded pupil count refers to the number of full-time equivalent students enrolled in a district. Not all students attend school on a full-time basis; the funded pupil count is different from the total enrollment, or pupil membership. The official pupil count occurs each October 1 and results in the funded pupil count. 27

The budget implications are substantial if projected enrollment is not realized. If an unexpected shortfall in actual enrollment occurs, this information is generally received after the close of the first quarter of the fiscal year and many staffing and program changes cannot be made without significant impacts to students. For this reason, the district generally undertakes a reasonable, yet conservative, projection methodology to reduce the risk of a funding shortfall. Requests for Information This financial report provides a general overview of the Boulder Valley School District RE-2’s finances for all those interested parties. Additional financial data and transparency reports are also available on the district’s website at www.bvsd.org/about/financial-transparency. Questions or requests for additional information should be directed to: William A. Sutter, SFO, Chief Financial Officer Boulder Valley School District RE-2 6500 East Arapahoe P.O. Box 9011 Boulder, Colorado 80301

BASIC FINANCIAL STATEMENTS

(This page was left blank intentionally.)

Boulder Valley School District RE-2 STATEMENT OF NET POSITION June 30, 2025

PRIMARY GOVERNMENT GOVERNMENTAL ACTIVITIES ASSETS Cash and Investments Restricted Cash and Investments Accounts Receivable Taxes Receivable, Net Grants Receivable Lease Receivable Inventories Prepaid Items and Other Capital Assets, Not Being Depreciated/Amortized Capital Assets, Net of Accumulated Depreciation/Amortization

TOTAL ASSETS

171,037,407 177,464,862 3,257,783 17,024,563 2,729,511 422,772 3,051,744 5,610,423 78,433,169 772,507,568

COMPONENT UNITS CHARTER SCHOOLS $

18,093,922 4,418,901 114,968 205,809 14,945,214 23,162,528

1,231,539,802

60,941,342

DEFERRED OUTFLOWS OF RESOURCES Loss on Debt Refunding, Net of Accumulated Amortization Pension Related Items Other Post-Employment Benefits Related Items

139,856,402 1,927,110

1,711,713 9,227,625 183,504

TOTAL DEFERRED OUTFLOWS OF RESOURCES

141,783,512

11,122,842

30,073,392 8,768,737 34,083,053 1,456,043 3,242,647 2,541,013 47,800,457

172,093 1,351,714 181,613 204,281 1,191,101

896,708,709 674,013,378 11,958,899

11,632,392 43,941,003 779,638

1,710,646,328

59,453,835

422,772 53,442,011 7,757,029

2,861,432 467,626

61,621,812

3,329,058

21,241,788 65,825,105 315,100 1,508,417 17,536,589 14,232,043 (519,603,868)

27,386,637 2,323,894 933,896 1,294,523 1,650,849 9,385 915,145 150,000 326,993 272,897 (25,982,928)

LIABILITIES Accounts and Retainage Payable Accrued Liabilities Accrued Compensation and Benefits Unearned Revenues Accrued Interest Payable Claims Payable Noncurrent Liabilities, Due Within One Year Noncurrent Liabilities, Due in More Than One Year Long-Term Debt Net Pension Liability Net Other Post-Employment Benefits Liability TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Lease Pension Related Items Other Post-Employment Benefits Related Items TOTAL DEFERRED INFLOWS OF RESOURCES NET POSITION Net Investment in Capital Assets Restricted for Debt Service Restricted for Multiple Year Obligations Restricted for Medicaid Restricted for Operations and Technology Restricted for Emergencies Restricted for Scholarships Restricted for Advanced Placement Testing Restricted for Repair and Maintenance Restricted for Special Education Restricted for Capital Renewal Restricted for Donations Unrestricted TOTAL NET POSITION

(398,944,826)

The accompanying notes are an integral part of the financial statements. 31

9,281,291

Boulder Valley School District RE-2 STATEMENT OF ACTIVITIES Year Ended June 30, 2025

PROGRAM REVENUES

FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT Instruction Supporting Services Interest Expense TOTAL PRIMARY GOVERNMENT

EXPENSES

CHARGES FOR SERVICES

OPERATING GRANTS AND CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

376,023,126 228,156,477 34,234,498

14,639,636 11,045,329 -

49,124,133 21,522,651 -

58,924 4,039,857 -

638,414,101

25,684,965

70,646,784

4,098,781

COMPONENT UNITS Charter Schools

45,895,635

TOTAL COMPONENT UNITS

1,795,839

45,895,635

1,795,839

2,605,344 $

2,605,344

10,906,020 $

10,906,020

GENERAL REVENUES Local Property Taxes Specific Ownership Taxes State Equalization Grants and Contributions Not Restricted to Specific Programs Investment Earnings Per Pupil Revenues Other TOTAL GENERAL REVENUES CHANGE IN NET POSITION NET POSITION, Beginning NET POSITION, Ending

The accompanying notes are an integral part of the financial statements. 32

ACTIVITIES

NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION PRIMARY COMPONENT GOVERNMENT UNITS GOVERNMENTAL CHARTER ACTIVITIES SCHOOLS

(312,200,433) (191,548,640) (34,234,498)

(537,983,571)

(30,588,432) (30,588,432)

458,594,831 20,453,458 36,276,307 4,706 11,131,654 6,690,803

692,550 793,094 37,718,816 711,253

533,151,759

39,915,713

(4,831,812)

9,327,281

(394,113,014)

(45,990)

(398,944,826)

9,281,291

The accompanying notes are an integral part of the financial statements. 33

Boulder Valley School District RE-2 BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2025

GENERAL ASSETS Cash and Investments Restricted Cash and Investments Accounts Receivable Taxes Receivable, Net Grants Receivable Lease Receivable Due from Other Funds Inventories Prepaid Items Deposits TOTAL ASSETS LIABILITIES Accounts and Retainage Payable Accrued Liabilities Accrued Compensation and Benefits Due to Other Funds Unearned Revenues

BOND REDEMPTION

GRANTS

BUILDING

124,419,056 891,790 12,537,244 422,772 4,588,980 2,573,957 4,767,998 24,425

2,729,511 800,000

66,285,564 2,782,188 -

111,179,298 -

150,226,222

3,529,511

69,067,752

111,179,298

4,657,781 3,853,512

119,328 -

23,625,091 4,915,225

32,923,908 655,034

33,619 2,907,205 469,359

5,902 -

42,090,235

3,529,511

28,546,218

422,772 5,595,075

1,373,244

6,017,847

1,373,244

7,341,955 13,603,230 13,426,045 67,746,910

67,694,508 -

82,633,080 -

TOTAL FUND BALANCES

102,118,140

67,694,508

82,633,080

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $

150,226,222

TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Lease Property Tax Revenue TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES Nonspendable Restricted Assigned Unassigned

3,529,511

69,067,752

The accompanying notes are an integral part of the financial statements. 34

111,179,298

NONMAJOR GOVERNMENTAL FUNDS

TOTAL

38,037,447 2,365,993 1,705,131 477,787 18,000

162,456,503 177,464,862 3,257,783 17,024,563 2,729,511 422,772 4,588,980 3,051,744 4,767,998 842,425

42,604,358

376,607,141

640,667 -

29,042,867 8,768,737

1,116,393 1,681,775 331,650

34,079,822 4,588,980 1,456,043

3,770,485

77,936,449

817,237

422,772 7,785,556

817,237

8,208,328

124,095 19,302,940 18,589,601 -

7,466,050 183,233,758 32,015,646 67,746,910

38,016,636

290,462,364

42,604,358

376,607,141

The accompanying notes are an integral part of the financial statements. 35

(This page was left blank intentionally.)

Boulder Valley School District RE-2 RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2025 Amounts reported for governmental activities in the statement of net position are different because: Total Fund Balances

290,462,364

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.

850,940,737

Other long-term assets are not available to pay for current year expenditures and, therefore, are reported as unavailable revenue in the funds.

7,785,556

An internal service fund is used by management to charge the costs of employee health and dental insurance to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position.

5,006,135

Long-term liabilities and related items, including bonds payable ($849,610,000), bond premium ($68,252,655), direct borrowing ($3,280,801), leases ($2,390,951), subscription-based information technology arrangements ($4,613,749) compensated absences ($16,361,010), and accrued interest payable ($3,242,647) are not due and payable in the current year and, therefore, are not reported in the funds.

(947,751,813)

Net pension ($674,013,378) and net OPEB ($11,958,899) liabilities are not due and payable in the current period and, therefore, are not reported in the funds.

(685,972,277)

Deferred outflows of resources related to pensions $139,856,402 and OPEB $1,927,110 used in governmental activities are not financial resources and, therefore, are not reported in the funds.

141,783,512

Deferred inflows of resources related to pensions ($53,442,011) and OPEB ($7,757,029) used in governmental activities are not due and payable in the current year and, therefore, are not reported in the funds.

(61,199,040)

Net Position of Governmental Activities

The accompanying notes are an integral part of the financial statements. 37

(398,944,826)

Boulder Valley School District RE-2 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended June 30, 2025

GENERAL REVENUES Local Sources State Sources Federal Sources

TOTAL REVENUES

386,843,685 63,569,374 3,241,732

BOND REDEMPTION

GRANTS $

465,163 3,775,472 11,031,834

BUILDING

73,018,164 -

8,996,571 -

453,654,791

15,272,469

73,018,164

8,996,571

313,082,910 128,932,760 67,284

9,327,130 5,945,339 -

2,540 -

94,479,039

1,041,165 248,068

31,780,000 40,158,194

TOTAL EXPENDITURES

443,372,187

15,272,469

71,940,734

94,479,039

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

10,282,604

1,077,430

(85,482,468)

788,733 444,486 (14,277,859)

TOTAL OTHER FINANCING SOURCES (USES)

(13,044,640)

NET CHANGE IN FUND BALANCES

(2,762,036)

1,077,430

(85,482,468)

104,880,176

66,617,078

168,115,548

EXPENDITURES Current Instruction Supporting Services Capital Outlay Debt Service Principal Interest

OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Asset Insurance Proceeds Debt Financing from Direct Borrowing Debt Financing from Leases and Software Transfers In Transfers Out

FUND BALANCES, Beginning FUND BALANCES, Ending

102,118,140

67,694,508

The accompanying notes are an integral part of the financial statements. 38

82,633,080

NONMAJOR GOVERNMENTAL FUNDS $

58,389,475 10,306,138 6,865,651

TOTAL $

527,713,058 77,650,984 21,139,217

75,561,264

626,503,259

13,368,349 68,033,439 7,780,477

335,778,389 202,914,078 102,326,800

1,216,779 99,235

34,037,944 40,505,497

90,498,279

715,562,708

(14,937,015)

(89,059,449)

294,542 1,766,536 2,456,664 512,236 11,777,859 -

294,542 2,555,269 2,456,664 956,722 11,777,859 (14,277,859)

16,807,837

3,763,197

1,870,822

(85,296,252)

36,145,814

375,758,616

38,016,636

290,462,364

The accompanying notes are an integral part of the financial statements. 39

Boulder Valley School District RE-2 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2025 Amounts reported for governmental activities in the statement of activities are different because: Net Change in Fund Balances

(85,296,252)

Capital outlays to acquire capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are reported as assets in the statement of net position and allocated over their estimated useful lives as annual depreciation/amortization expense in the statement of activities. This is the amount by which capital outlay, lease expense and SBITA expense of $90,836,752 exceeded depreciation/amortization expense ($42,392,703) in the current year. In addition, the district disposed of capital assets with a net book value of ($6,392,788), $1,904,963 of which is due to retired SBITAs, and contributed ($10,157,770) to a charter school.

33,798,454

Revenues that do not provide current financial resources are unavailable in the governmental fund financial statements but are recognized in the government-wide financial statements. This amount represents the change in unavailable property tax revenue.

4,229,219

Repayments of debt principal are expenditures in the governmental funds, but they reduce long-term liabilities in the statement of net position and do not affect the statement of activities.

34,037,944

Debt proceeds provide current financial resources to governmental funds, but issuing debt increases longterm liabilities in the statement of net position and does not affect the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt related items: amortization of bond premium $6,015,747, capital lease proceeds ($2,456,664), and debt financing from leases ($956,722).

2,602,361

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported expenditures in the governmental funds. This amount represents the change in accrued interest payable $255,252 and compensated absences ($2,199,361).

(1,944,109)

An internal service fund is used by management to charge the costs of employee health and dental insurance to individual funds. The net revenue of the internal service fund is included in governmental activities in the statement of activities.

(3,032,323)

Some items reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. This is the amount of net pension credit ($5,895,812) and net OPEB credit ($4,877,082) not reported in the governmental funds.

10,772,894

Change in Net Position of Governmental Activities

The accompanying notes are an integral part of the financial statements. 40

(4,831,812)

Boulder Valley School District RE-2 STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2025 GOVERNMENTAL ACTIVITIES INTERNAL SERVICE FUNDS ASSETS Current Cash and Investments

TOTAL ASSETS

8,580,904 8,580,904

LIABILITIES Current Accounts Payable Claims Payable Accrued Liabilities

1,030,525 2,541,013 3,231

TOTAL LIABILITIES

3,574,769

NET POSITION Unrestricted

5,006,135

TOTAL NET POSITION

The accompanying notes are an integral part of the financial statements. 41

5,006,135

Boulder Valley School District RE-2 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS Year Ended June 30, 2025 GOVERNMENTAL ACTIVITIES INTERNAL SERVICE FUNDS OPERATING REVENUES Premiums and Services Other

TOTAL OPERATING REVENUES

43,547,269 545,045 44,092,314

OPERATING EXPENSES Personnel Insurance Premiums and Claims Administrative Fees and Other

531,594 46,240,192 2,852,851

TOTAL OPERATING EXPENSES

49,624,637

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

(5,532,323)

OTHER FINANCING SOURCES Transfers In

2,500,000

CHANGE IN NET POSITION

(3,032,323)

NET POSITION, Beginning

8,038,458

NET POSITION, Ending

The accompanying notes are an integral part of the financial statements. 42

5,006,135

Boulder Valley School District RE-2 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2025 GOVERNMENTAL ACTIVITIES INTERNAL SERVICE FUNDS Cash Flows From Operating Activities Premiums Received and Other Receipts Cash Payments for Premiums, Claims and Other Expenses Cash Paid to Employees for Salaries and Benefits

46,592,314 (48,719,901) (528,363)

Net Cash Provided (Used) by Operating Activities

(2,655,950)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(2,655,950)

CASH AND CASH EQUIVALENTS, Beginning

11,236,854

CASH AND CASH EQUIVALENTS, Ending RECONCILIATION OF CHANGE IN NET POSITION TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Change in Net Position Adjustments to Reconcile Change in Net Position to Net Cash Provided (Used) by Operating Activities Changes in Assets and Liabilities Related to Operations Prepaid Items Accounts Payable Claims Payable Accrued Liabilities Net Cash Provided (Used) by Operating Activities

8,580,904

(3,032,323)

46,438 61,366 265,338 3,231 $

The accompanying notes are an integral part of the financial statements. 43

(2,655,950)

Boulder Valley School District RE-2 STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2025 PRIVATE PURPOSE TRUST FUND ASSETS Cash and Investments

TOTAL ASSETS

1,220,538 1,220,538

NET POSITION Restricted

1,220,538

TOTAL NET POSITION

The accompanying notes are an integral part of the financial statements. 44

1,220,538

Boulder Valley School District RE-2 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS Year Ended June 30, 2025 PRIVATE PURPOSE TRUST FUND ADDITIONS Contributions and Investment Earnings

64,205

FRONT RANGE BOCES CUSTODIAL FUND $

DEDUCTIONS Scholarships and Awards Purchased Services

3,000 91,927

TOTAL DEDUCTIONS

94,927

CHANGE IN FIDUCIARY NET POSITION

(30,722)

1,251,260

FIDUCIARY NET POSITION, Beginning FIDUCIARY NET POSITION, Ending

1,220,538

The accompanying notes are an integral part of the financial statements. 45

(This page was left blank intentionally.)

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of Boulder Valley School District RE-2 (the "district") conform to generally accepted accounting principles as applicable to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Following is a summary of the more significant policies. Reporting Entity The financial reporting entity consists of the district, organizations for which the district is financially accountable, and organizations that raise and hold economic resources for the direct benefit of the district. All funds, organizations, institutions, agencies, departments and offices that are not legally separate are part of the district. In addition, any legally separate organizations for which the district is financially accountable are considered part of the reporting entity. Financial accountability exists if the district appoints a voting majority of the organization's governing board or if the organization is fiscally dependent, and is able to impose its will on the organization, or if the organization provides benefits to, or imposes financial burdens on, the district. Based upon the application of this criteria, the district includes five charter schools within its reporting entity. The charter schools are public schools authorized by State statutes to provide alternatives for parents, pupils and teachers. The charter schools are fiscally dependent on the district and their exclusion would render the district's financial statements misleading. Since the charter schools have separately elected boards, the balances and transactions of the charter schools are discretely presented in the financial statements. Separate financial statements may be obtained by contacting the schools individually at the following addresses: Boulder Preparatory High School at 5075 Chaparral Court, Boulder, Colorado 80301; Horizons K-8 School at 4545 Sioux Drive, Boulder, Colorado 80303; Peak to Peak Charter School at 800 Merlin Drive, Lafayette, Colorado 80026; Summit Middle School at 4655 Hanover Avenue, Boulder, Colorado, 80305; and Justice High School at 805 Excalibur, Lafayette, Colorado 80026. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all nonfiduciary activities of the district and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the district is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of the given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students or other customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. 47

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds, proprietary funds, and the fiduciary fund, even though the latter are excluded from the district's government-wide financial statements. Major individual governmental and proprietary funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current year or soon enough thereafter to pay liabilities of the current year. For this purpose, the district considers revenues to be available if they are collected within 60 days of the end of the current year and within 180 days of the end of the current year for grants. Taxes, intergovernmental revenues, grants, and interest associated with the current year are considered to be susceptible to accrual and so have been recognized as revenues of the current year when measurable and available. All other revenues are considered to be measurable and available only when cash is received by the district. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the fund's principal ongoing operations. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for a specific use, it is the district's practice to use restricted resources first, then unrestricted resources as they are needed. The district reports the following major governmental funds: The General Fund is the district's primary operating fund. It accounts for all financial resources of the district, except those required to be accounted for in another fund. The Grants Fund accounts for monies received from various federal, state and local grant programs. 48

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The Bond Redemption Fund accounts for property taxes restricted for the payment of long-term debt obligations of the district. The Building Fund reports bond proceeds and other revenues to be used for major building repairs and renovations. Additionally, the district reports the following fund types: The Internal Service Funds account for the district's employee health and dental insurance programs, which are partially self-insured by the district. The Fiduciary Fund accounts for the activities of various scholarship accounts held by the district in a purely custodial capacity. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Fund Equity Cash and Investments - The district utilizes the pooled cash concept whereby cash balances of each of the district's funds and component units are pooled and invested by the district. It is the intention of the investment pool to maximize interest income, and securities are selected according to their risk, marketability, and diversification. Investments are reported at fair value, net asset value, or amortized cost depending on the type of investment. For purposes of the statement of cash flows, the district considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Investments in pooled cash are considered to be cash equivalents. Receivables - All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Property taxes levied in the current year but not received at year end are reported as taxes receivable and are presented net of an allowance for uncollectible taxes of 1% of the total levy. Interfund Receivables and Payables - During the course of operations, numerous transactions occur between individual funds. The resulting receivables and payables are classified on the balance sheet as due from other funds and due to other funds. Lease Receivable - The district, acting as lessor, leases property for a Modular Factory under a long-term, noncancelable lease agreement. The lease expires July 31, 2033, and provides an option to terminate on or after the sixtieth month following the commencement date, October 8, 2024, and is subject to remeasurement under GASB Statement No. 87, Leases if exercised. Inventories - Materials and supplies inventories are stated at average cost using the first-in/firstout (FIFO) method. Food Services Fund inventories consist of purchased and donated commodities. Donated commodities, received at no cost under a program supported by the federal government, are valued based upon the cost furnished by the federal government.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Fund Equity (Continued) Inventory is recorded as an asset when individual items are purchased. When they are consumed, they are recorded as expenses in the government-wide financial statements or as expenditures in the governmental fund financial statements. Prepaid Items - Payments made to vendors for services that will benefit subsequent years are recorded as prepaid items in the government-wide and fund financial statements using the consumption method. Capital Assets - Capital assets, which include property and equipment, are reported in the government-wide financial statements. Capital assets are defined by the district as assets that have initial lives extending beyond one fiscal year and have a unit cost of $10,000 or more, except for major capital outlays for buildings and improvements that shall have a total cost greater than $50,000 and SBITA assets with a total cost greater than $300,000 per fiscal year (effective July 1, 2024). Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets, the measurement of which is discussed in Note 1 below). Donated capital assets are recorded at acquisition price at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materiality extend asset lives are not capitalized. Property and equipment of the district is depreciated/amortized using the straight line method over the following estimated useful lives. Land Improvements Buildings Equipment and Vehicles Right-to-use Assets (Lease or SBITA)

15 to 20 years 50 years 5 to 20 years 2 to 10 years

Right-to-use assets are initially measured as the sum of the present value of payments expected to be made during the subscription or lease term, payments associated with the contract made to the vendor at the commencement of the subscription or lease term, when applicable, and capitalizable implementation costs, less any vendor incentives received from the vendor at the commencement of the term. Right-to-use assets are amortized in a systemic and rational manner over the shorter of the subscription or lease term or the useful life of the underlying right-to-use assets. Deferred Outflows of Resources - In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The district reports certain items in this category related to its defined benefit pension and OPEB plans (see Notes 10 and 11). Accrued Compensation and Benefits - Salaries and benefits of certain contractually employed personnel are paid over a twelve month period from August to July, but are earned during a school year of approximately nine to ten months. The salaries and benefits earned, but unpaid, at June 30, are reflected as a liability in the accompanying financial statements. 50

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Fund Equity (Continued) Unearned Revenues - Unearned revenues include grant funds that have been collected but the eligibility requirements have not been met, and tuition and fees received in advance. Compensated Absences - The district recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable. District policy allows unlimited accumulation of sick time and accumulation of vacation time to a maximum of 40 days for certain personnel classifications. Accrued sick leave is paid to those eligible employees upon termination of employment at varying rates based upon longevity and/or classification. Eligible employee groups include administration, professional technical, clerical, service, paraeducators, and teacher frozen sick. A liability for the estimated value of sick leave that will be used by employees as time off is also included in the liability for compensated absences. Accrued vacation is paid to those eligible employees upon termination of employment. Compensated absences are recognized as current salary costs when earned in the proprietary funds and when due in the governmental funds. A long-term liability has been recorded in the government-wide financial statements for accrued compensated absences. Long-Term Debt - In the government-wide financial statements and the proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Debt premiums, discounts and accounting losses resulting from debt refundings are deferred and amortized over the life of the debt using the effective interest method. In the governmental fund financial statements, the face amount of debt issued is reported as other financing sources in the year debt is issued. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Leases and SBITAs - The district is a lessee for noncancellable leases of equipment and has entered into a SBITA. The district recognizes a lease or SBITA liability and an intangible right-touse asset (lease or SBITA asset) in the applicable governmental activities in the governmentwide financial statements. At the commencement of a lease or SBITA, the district initially measures the lease or SBITA liability at the present value of payments expected to be made during the term. Subsequently, the liability is reduced by the principal portion of payments made. The lease or SBITA asset is initially measured as the initial amount of the lease or SBITA liability, adjusted for payments made at or before the commencement date, plus certain initial direct costs. Subsequently, the lease or SBITA asset is amortized on a straight-line basis over the shorter of the contract term or its useful life. 51

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Fund Equity (Continued) Key estimates and judgments related to leases and SBITAs include how the district determines (1) the discount rate, (2) term, and (3) payments. • The district uses the interest rate charged by the third party as the discount rate. When the

interest rate charged by the third party is not provided, the district generally uses its estimated incremental borrowing rate as the discount rate. • The term includes the noncancellable period of the lease or SBITA. • Lease or SBITA payments included in the measurement of the related liability are composed of

fixed payments and the purchase option price that the district is reasonably certain to exercise. The district monitors changes in circumstances that would require a remeasurement of its lease or SBITA and will remeasure the related asset and liability if certain changes occur that are expected to significantly affect the amount of the lease or SBITA liability. Lease and SBITA assets are reported with other capital assets on the statement of net position. Lease and SBITA liabilities are reported with long-term debt on the statement of net position. Issuance costs, whether or not withheld from the debt proceeds, are reported as current expenses or expenditures. Net Pension Liability - The district reports a net pension liability for its proportionate share of PERA's unfunded pension liability, which is expected to be liquidated primarily with resources of the General Fund. See Note 10 for additional information. Net OPEB Liability - The district reports a net OPEB liability for its proportionate share of PERA's unfunded OPEB liability, which is expected to be liquidated primarily with resources of the General Fund. See Note 11 for additional information. Deferred Inflows of Resources - In addition to liabilities, the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The governmental funds report as deferred inflows of resources unavailable revenues from property taxes and leases which are deferred and recognized as an inflow of resources in the period that the amounts are earned. In the statement of net position, the district reports certain items in this category related to its defined benefit pension and OPEB plans (see Notes 10 and 11). Fund Equity - At the governmental fund financial reporting level, fund equity is classified as fund balance . For all other reporting, it is classified as net position.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Fund Equity (Continued) Net Position - Net investment in capital assets represent the district’s capital assets net of accumulated depreciation and amortization and outstanding principal balances of debt attributable to the acquisition, construction, or improvement of those assets. Restricted net position represents resources with legal or contractual obligations to spend in accordance with restrictions imposed by external third parties. The unrestricted classification includes all net position not invested in capital assets or restricted. Fund Balance - In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the district is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are classified as follows: • Nonspendable fund balance - Amounts that are not in a spendable form or are either legally or

contractually required to be maintained intact. Examples include prepaid items and supplies inventory. Certain food inventories are excluded as they will be sold rather than consumed. • Restricted fund balance - Amounts constrained to specific purposes by their providers (such as

grantors, bondholders, and higher levels of government), through constitutional provisions, contract provisions, or by enabling legislation. • Committed fund balance - Amounts constrained to specific purposes through resolution by the

board of education are reported as committed. Amounts cannot be used for any other purpose unless the board takes the same action to modify or rescind the commitment. • Assigned fund balance - Amounts constrained by the district for specific purposes, but are

neither restricted nor committed. Through resolution, the board of education has authorized the district's superintendent to assign fund balances. • Unassigned fund balance - The residual amount reported when the balances do not meet any

of the above criterion. The district reports positive unassigned fund balance only in the general fund. Negative unassigned balances may be reported in all funds. Fund Balance Policy - The district's policy is to have a sufficient balance in the General Fund with sufficient working capital and a margin of safety to address local and regional emergencies without borrowing. The district shall strive to maintain a yearly fund balance in the General Operating Fund in which the total fund balance is 3% of the total operating expenditures in addition to any amounts required by statute. At June 30, 2025, unassigned fund balance of the General Operating Fund was sufficient to meet this policy. Flow Assumptions - In circumstances where an expenditure is to be made for a purpose for which amounts are available in multiple fund balance classifications, the order in which resources will be expended is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenues Property Taxes - Property taxes for a calendar year are certified in arrears on December 10 and attached as a lien on the property the previous January 1. For example, property taxes owed in 2025 are certified by the district to the county in December 2024 and are available for collection on the levy date, January 1. Property taxes are payable in full by April 30 or in two equal installments due February 28 and June 15. Property tax receipts collected by the county are generally remitted to the district in the subsequent month. State Revenues - The district receives unrestricted state equalization revenues and the charter schools receive capital construction funding as required by state statutes. Interest Income - Interest income earned on pooled cash is recorded as revenue in the General Fund. Interest income from the Bond Redemption Fund, Building Fund, Operations and Technology Fund and certain Fiduciary Fund accounts is recorded when earned in the related fund. On-behalf Payments GAAP requires that direct on-behalf payments for fringe benefits and salaries made by one entity to a third party recipient for the employees of another, legally separate entity be recognized as revenue and expenditures by the employer government. The State of Colorado makes direct onbehalf payments for retirement benefits to Public Employees’ Retirement Association of Colorado (PERA). Beginning on July 1, 2018, the State of Colorado is required to make a payment to PERA each year equal to $225 million. PERA allocates the contribution to the trust funds of the State, School, Denver Public Schools, and Judicial Division Trust Funds of PERA, as proportionate to the annual payroll of each division. This annual payment is required on July 1st of each year thereafter until there are no unfunded actuarial accrued liabilities of any division of PERA that receives the direct distribution. The amount of on-behalf payments made for the district by the State of Colorado is recorded in the fund financial statements. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 2:

CASH AND INVESTMENTS At June 30, 2025, the district had the following cash and investments: Cash on Hand Deposits Investments

36,433 3,556,089 350,603,331

Total

354,195,853

171,037,407 177,464,862 1,220,538 4,473,046

354,195,853

Cash and investments are reported in the financial statements as follows: Primary Government Cash and Investments Primary Government Restricted Cash and Investments Fiduciary Funds Cash and Investments Charter School Cash Held by District* Total

* Charter schools hold additional cash in accounts outside the district's pooled accounts. Deposits The Colorado Public Deposit Protection Act (PDPA) requires all local government entities to deposit cash in eligible public depositories. Eligibility is determined by state regulations. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. The PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all uninsured public deposits as a group. The fair value of the collateral must be at least equal to 102% of the uninsured deposits.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 2:

CASH AND INVESTMENTS (Continued) Investments The district is required to comply with state statutes and district policy which specify investment instruments meeting defined rating, maturity, and concentration risk criteria in which local governments may invest, which include the following. State statutes do not address custodial risk. • Obligations of the United States and certain U.S. Agency securities • Certain international agency securities • General obligation and revenue bonds of U.S. local government entities • Bankers' acceptance of certain banks • Commercial paper • Written repurchase agreements collateralized by certain authorized securities • Certain money market funds • Guaranteed investment contracts • Local government investment pools

The district had the following investments at June 30, 2025: Maturity

Maturity

Governmental Activities

Less than 1 year

1 to 5 years

Money Market Mutual Fund

19,018,003

RatingTotal $

Rating Agency

19,018,003

AAAm-S&P

Colotrust LGIP

130,113,455

AAAm-S&P

CSIP LGIP CSLIP LGIP

11,868 201,460,005

AAAm-S&P AAAm-S&P

350,603,331

149,143,326

1,084,873

Component Units Money Market Mutual Fund

AAAm-S&P

Certificates of Deposit

104,115

A+-S&P

CSAFE - Cash Fund

1,734,474

AAAmmf-Fitch

CSAFE - Core Fund Local Government Investment Pool

942,266 9,283,033 13,148,761

AAAf/S1-Fitch AAAm-S&P

Interest Rate Risk - State statutes generally limit the maturity date of investment securities to five years from the date of purchase unless the governing board authorizes the investment for a period in excess of five years. Credit Risk - The district has no policy toward credit risk other than to follow State statutes, which limit certain investments to those with specified ratings provided by nationally recognized statistical rating organizations, depending on the type of investment. Concentration of Credit Risk - State statutes do not limit the amount the district may invest in one issuer, except for corporate debt securities.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 2:

CASH AND INVESTMENTS (Continued) Investments (Continued) Local Government Investment Pool (LGIP) - At June 30, 2025, the district had $130,113,455 invested in the Colorado Local Government Liquid Asset Trust (Colotrust), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces the requirements of creating and operating LGIPs. The pools operate in conformity with the Securities and Exchange Commission's Rule 2a-7 as promulgated under the Investment Company Act of 1940, as amended, which includes the maintenance of each share equal in value to $1.00. Investments within the pools are limited to those allowed by state statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodians' internal records identify the investments owned by the participating governments. This district's investments in LGIPs are measured using net asset value. There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. Colorado Statewide Investment Program (CSIP) - At June 30, 2025, the district had $11,868 invested in CSIP as an investment vehicle established for local government entities in Colorado to pool surplus funds within the investment policies and limitations set forth in CRS 24-75-601. The State Securities Commissioner administers and enforces all State statutes governing CSIP. CSIP operates similarly to a money market fund and each share is equal in value to $1.00. CSIP Liquid Portfolio is rated AAAm by Standard & Poor’s and is valued at amortized cost. Based on the valuation method, additional disclosures are not required under GASB Statement No. 72. CSIP Term Series offers the ability for participants to invest in shares of fixed-rate, fixed-term investments, rated AAAf by Fitch Ratings. There are no unfunded commitments, the redemption period is planned at maturity, and the redemption period is a sixty-day minimum and one-year maximum. Colorado Statewide Liquid Investment Program (CSLIP) - At June 30, 2025, the district had $201,460,005 invested in the Colorado Statewide Liquid Asset Trust (CSLIP), a local government investment pool created to provide Colorado municipalities, school districts, and other public entities with a safe and efficient means to invest surplus funds. CSLIP is governed by Colorado Revised Statutes §24-75-601 and managed under the oversight of a Board of Trustees composed of representatives from participating local governments. The program’s investment objectives emphasize safety, liquidity, and yield in accordance with state statutes governing the investment of public funds. CSLIP’s portfolios primarily invest in high-quality, short-term instruments such as U.S. government obligations, repurchase agreements, and certificates of deposit. The CSLIP Liquid Portfolio operates similarly to a money market fund, maintaining a stable $1.00 net asset value, and is rated AAAm by Standard & Poor’s. Securities in the Liquid Portfolio are valued at amortized cost, which approximates fair value in accordance with GASB Statement No. 79. For fiscal year 2025, the District held investments, in addition to operating accounts at USBank and Colotrust, in both the Colorado Statewide Investment Program (CSIP) and Colorado Statewide Liquid Asset Trust (CSLIP), consistent with the District’s investment policy and state statutory requirements.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 2:

CASH AND INVESTMENTS (Continued) Fair Value of Investments The district categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) in active markets for an identical asset or liability that a government can access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1, that are observable for an asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, matrix pricing to value securities based on the securities' relationship to benchmark quoted prices, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs for an asset or liability. The following table presents the fair value of measurements of assets recognized in the accompanying statement of net position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025.

Investments by Fair Value Levels Component Units Endowment (held with Community First Foundation) Common Stock Total

Balance June 30, 2025

$ $

1,627,712 71,203 1,698,915

Fair Value Measurement Using Level 1 Level 2 Level 3

$ $

71,203 71,203

$ $

1,627,712 1,627,712

Money market mutual funds held by the district and component unit are valued at amortized cost. Component unit investments also include a $1,627,712 endowment, the value for which is based on unobservable inputs including information from owner-to-owner transactions and the endowment's own assumptions. Restricted Cash and Investments Restricted cash and investments include $66,285,564 in the Bond Redemption Fund restricted for future debt service payments and $111,179,298 in the Building Fund for unspent bond proceeds restricted for capital projects.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 3:

LEASE RECEIVABLE On October 8, 2024, the district entered into a long-term lease with the City of Boulder to provide property for a Modular Housing Factory. The lease term ends on July 31, 2033 with payments required semi-annually. In fiscal year 2025, the district recognized $27,703 of lease revenue and $2,297 of interest revenue related to the lease. As of June 30, 2025, the district's lease receivable and deferred inflow of resources associated with the lease to be recognized as revenue over the remaining terms of the lease is $422,772. Principal and interest requirements to maturity under lease agreements are as follows: Year Ended June 30,

NOTE 4:

Principal

Interest

Total

2026 2027 2028 2029 2030 2031 - 2033

47,363 48,835 50,352 51,916 53,530 170,776

12,637 11,165 9,648 8,084 6,470 9,224

60,000 60,000 60,000 60,000 60,000 180,000

Total

422,772

57,228

480,000

INTERFUND TRANSFERS Due from Other Funds

Due to Other Funds

General Fund General Fund

Grants Fund Food Services Fund

Total

Balance $

2,907,205 1,681,775

4,588,980

The internal balance above represents a negative cash balance in the Grants Fund and Food Services Fund, which will be satisfied from operations in the subsequent year.

Transfers In

Transfers Out

Capital Reserve Fund Transportation Fund Food Services Fund Health Insurance Fund

General Fund General Fund General Fund General Fund

Total

Balance $

2,802,961 6,926,629 2,048,269 2,500,000

$ 14,277,859

The General Fund transfers a portion of its funding to the Capital Reserve Fund to be used for capital purposes. The General Fund subsidizes the student transportation program reported in the Transportation Fund, food services program reported in the Food Services Fund, and health services reported in the Health Insurance Fund. 59

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 5:

CAPITAL ASSETS Capital asset activity for the year ended June 30, 2025, is summarized below. Balances 7/1/24 Governmental Activities Capital Assets, Not Being Depreciated Land Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated Land Improvements Buildings Equipment Vehicles Total Capital Assets, Being Depreciated

10,550,854 44,838,779 55,389,633

Additions

Balances 6/30/25

Deletions

76,400 84,338,253 84,414,653

(61,371,117) (61,371,117)

10,627,254 67,805,915 78,433,169

68,537,872 1,098,657,717 12,508,911 24,936,892 1,204,641,392

3,059,278 47,001,304 1,160,499 5,457,643 56,678,724

(7,603,775) (36,763) (2,820,460) (10,460,998)

71,597,150 1,138,055,246 13,632,647 27,574,075 1,250,859,118

Less Accumulated Depreciation For Land Improvements Buildings Equipment Vehicles Total Accumulated Depreciation

38,887,247 384,816,410 7,000,528 19,561,916 450,266,101

4,100,537 34,604,939 1,035,598 1,282,055 41,023,129

(3,545,856) (30,329) (2,820,460) (6,396,645)

42,987,784 415,875,493 8,005,797 18,023,511 484,892,585

Total Capital Assets, Being Depreciated, Net

754,375,291

15,655,595

(4,064,353)

765,966,533

Lease Assets, Being Amortized Equipment Vehicles Total Lease Assets, Being Amortized

1,086,631 2,611,779 3,698,410

444,486 512,236 956,722

(473,933) (633,429) (1,107,362)

1,057,184 2,490,586 3,547,770

Less Accumulated Amortization For Equipment Vehicles Total Accumulated Amortization

616,008 957,833 1,573,841

179,684 480,758 660,442

(357,749) (496,815) (854,564)

437,943 941,776 1,379,719

Total Lease Assets, Being Amortized, Net

2,124,569

296,280

(252,798)

2,168,051

SBITAs, Being Amortized SBITAs

9,352,087

(2,969,895)

6,382,192

Less Accumulated Amortization For SBITAs

2,194,334

709,132

(894,258)

2,009,208

Total SBITAs, Being Amortized, Net

7,157,753

(709,132)

(2,075,637)

4,372,984

99,657,396

$ (67,763,905)

$ 850,940,737

Governmental Activities Capital Assets, Net

$ 819,047,246

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 5:

CAPITAL ASSETS (Continued) Depreciation/amortization expense was charged to programs of the district as follows: Governmental Activities Instruction Supporting Services

$ 36,881,652 5,511,051

Total

$ 42,392,703 Balances 6/30/24

Component Units Capital Assets, Not Being Depreciated Land Construction in Progress Total Capital Assets, Not Being Depreciated

2,864,384 1,739,247 4,603,631

Additions

Balances 6/30/25

Deletions

10,417,983 10,417,983

(76,400) (76,400)

2,787,984 12,157,230 14,945,214

Capital Assets, Being Depreciated Land Improvements Buildings Equipment Total Capital Assets, Being Depreciated

5,032,171 29,682,977 1,141,250 35,856,398

966,285 966,285

(447,547) (20,000) (467,547)

5,032,171 29,235,430 2,087,535 36,355,136

Less Accumulated Depreciation For Land Improvements Buildings Equipment Total Accumulated Depreciation

2,687,522 10,164,213 479,266 13,331,001

209,992 603,351 149,149 962,492

(174,905) (15,416) (190,321)

2,897,514 10,592,659 612,999 14,103,172

Total Capital Assets, Being Depreciated, Net

22,525,397

3,793

(277,226)

22,251,964

Lease Assets Being Amortized Equipment Vehicles Total Lease Assets, Being Amortized

65,165 1,220,837 1,286,002

Less Accumulated Amortization For Equipment Vehicles Total Accumulated Amortization

28,645 212,290 240,935

16,291 122,084 138,375

44,936 334,374 379,310

1,045,067

(138,375)

906,692

SBITAs Being Amortized SBITAs

69,716

Less Accumulated Amortization For SBITAs

42,605

23,239

65,844

Total SBITAs, Being Amortized, Net

27,111

(23,239)

3,872

Total Lease Assets, Being Amortized, Net

Component Units Capital Assets, Net

28,201,206

10,260,162

(353,626)

38,107,742

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 6:

SHORT-TERM DEBT During the year ended June 30, 2025, the district borrowed $96,227,463 from the state-sponsored interest-free loan program to provide cash flow throughout the fiscal year. The loan was paid in full by June 30, 2025, from property taxes received primarily from February through June. The schedule of changes is summarized below. Balances 6/30/24 State-sponsored interest-free loan Total

NOTE 7:

Additions

Balances 6/30/25

Payments

96,227,463

LONG-TERM DEBT Following is a summary of long-term debt transactions of the district for the year ended June 30, 2025. Balances 7/1/24 Governmental Activities General Obligation Bonds $ Bond Premium Direct Borrowing Leases SBITAs Compensated Absences* Total

Additions

Balances 6/30/25

Payments

Due Within One Year

881,390,000 74,268,402 1,538,820 2,354,951 7,141,251 14,161,649

2,456,664 956,722 2,199,361

31,780,000 6,015,747 714,683 920,722 2,527,502 -

849,610,000 68,252,655 3,280,801 2,390,951 4,613,749 16,361,010

33,675,000 666,426 799,208 649,452 12,010,371

980,855,073

5,612,747

41,958,654

944,509,166

47,800,457

*GASB Statement No. 101, Compensated Absences allows for the netting of activity.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 7:

LONG-TERM DEBT (Continued) General Obligation Bonds General obligation bonds payable at June 30, 2025, are comprised of the following issues: $187,335,000 General Obligation Bonds, Series 2023. Issued to implement a district-wide capital construction and improvement program. Principal payments due on December 1 and interest payments due on December 1 and June 1, through 2052. Interest accrues at rates ranging from 4.125% to 5.50%. $ 160,285,000 $136,520,000 General Obligation Bonds, Series 2019A. Issued to implement a district-wide capital construction and improvement program. Principal payments due on December 1 and interest payments due on December 1 $ 108,860,000 and June 1, through 2048. Interest accrues at rates ranging from 5.00% to 6.00%. $162,745,000 General Obligation Refunding Bonds, Series 2019B. Issued to refund the General Obligation Bonds, Series 2009. Principal payments due on December 1 and interest payments due on December 1 and June 1, through 2034. Interest accrues at rates ranging from 3.00% to 5.00%.

118,335,000

$190,000,000 General Obligation Bonds, Series 2017A. Issued to implement a district-wide capital construction and improvement program. Principal payments due on December 1 and interest payments due on December 1 and June 1, through 2047. Interest accrues at rates ranging from 5.00% to 5.25%.

190,000,000

$93,740,000 General Obligation Refunding Bonds, Series 2017B. Issued to refund the General Obligation Bonds, Series 2007. Principal payments due on December 1 and interest payments due on December 1 and June 1, through 2028. Interest accrues at rates ranging from 2.00% to 4.00%.

37,130,000

$250,000,000 General Obligation Bonds, Series 2015. Issued to implement a district-wide capital construction and improvement program. Principal payments due on December 1 and interest payments due on December 1 and June 1, through 2044. Interest accrues at rates ranging from 4.00% to 5.00%.

Total

235,000,000 $ 849,610,000

Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ended June 30,

Principal

2026 2027 2028 2029 2030 2031 - 2035 2036 - 2040 2041 - 2045 2046 - 2050 2051 - 2053

Total

$ 63

33,675,000

Interest $

38,578,819

Total $

72,253,819

23,525,000

37,207,094

60,732,094

24,645,000

36,062,519

60,707,519

25,815,000

34,901,593

60,716,593

26,960,000

33,668,875

60,628,875

155,125,000

147,970,850

303,095,850

193,410,000

108,196,094

301,606,094

246,075,000

54,719,872

300,794,872

94,250,000

14,105,831

108,355,831

26,130,000

1,696,600

27,826,600

507,108,147

$ 1,356,718,147

849,610,000

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 7:

LONG-TERM DEBT (Continued) Direct Borrowing The district purchases school buses under a master purchase agreement, by which a portion of the purchase price is financed. The titles to the buses are held by the creditor and will be released to the district when the debts are fully repaid. On December 4, 2019, the district financed 16 school buses in the amount of $526,650, with a fixed interest rate of 2.44% per year to be repaid over 7 years. On October 12, 2023, the district financed 8 school buses in the amount of $1,108,024, with a fixed interest rate of 4.723% per year to be repaid over 7 years. On February 27, 2024, the district financed 5 school buses in the amount of $714,876, with a fixed interest rate of 4.227% per year to be repaid over 7 years. On January 7, 2025, the district financed 18 school buses in the amount of $2,456,664, with a fixed interest rate of 4.463% per year to be repaid over 7 years. Annual debt service requirements to maturity for direct borrowing agreements are as follows: Year Ended June 30,

Principal

Interest

Total

2026 2027 2028 2029 2030 2031

666,426 565,344 590,755 617,308 466,528 374,440

97,659 116,990 91,580 65,026 37,277 16,711

764,085 682,334 682,335 682,334 503,805 391,151

Total

3,280,801

425,243

3,706,044

Lease obligations The district leases copiers and certain vehicles for various terms under long-term non-cancellable lease agreements. The district recognizes a lease liability and an intangible right-to-use lease asset in the government-wide financial statements. At the commencement of the lease, the district measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of the lease payments made. The lease asset is initially measured at the initial amount of the lease liability, adjusted for lease payments made on or before the lease commencement date, plus certain initial indirect costs. Subsequently, the lease asset is amortized on a straight line basis over its useful life. Lease assets are reported with other capital assets and lease liabilities are reported with other long-term debt on the statement of net position. The leases expire at various dates through 2030 and require monthly debt service payments at interest rates ranging from 2.7% per year to 4.2% per year. Copier lease payment require additional variable rate payments based on the number of copies made on each machine, ranging from $0.00399 to $0.0395 per copy.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 7:

LONG-TERM DEBT (Continued) Lease obligations (Continued) Annual debt service requirements to maturity for lease agreements are as follows: Year Ended June 30,

Principal

Interest

Total

2026 2027 2028 2029 2030

799,208 572,606 517,824 417,126 84,187

56,229 37,163 21,721 8,077 1,161

855,437 609,769 539,545 425,203 85,348

Total

2,390,951

124,351

2,515,302

Subscription-Based Information Technology Arrangements The district has entered into a SBITA for it's Enterprise Resource Planning (ERP) System, which expires at 2031 and provides renewal options. As of June 30, 2025, SBITA assets and the related accumulated amortization totaled $6,382,192 and $2,009,208, respectively. The future subscription payments under SBITA agreements are as follows: Year Ended June 30,

Principal

Interest

Total

2026 2027 2028 2029 2030 2031 - 2032

649,452 677,530 706,823 779,827 858,110 942,007

167,164 139,086 109,793 77,620 42,209 3,328

816,616 816,616 816,616 857,447 900,319 945,335

Total

4,613,749

539,200

5,152,949

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 7:

LONG-TERM DEBT (Continued) Component Units Changes in long-term debt of the Component Units for the year ended June 30, 2025, were as follows: Balances 6/30/24 Bonds Payable Bond Premium Leases: Vehicles Equipment SBITAs Compensated Absences* Total

$ 11,795,000 639,596

Additions $

Balances 6/30/25

Deletions -

900,000 63,960

$ 10,895,000 575,636

Due Within One Year $

870,000 -

1,050,159 37,736 25,481

109,984 15,729 25,481

940,175 22,007 -

113,966 16,391 -

397,522

6,847

390,675

190,744

1,122,001

$ 12,823,493

$ 13,945,494

1,191,101

*GASB Statement No. 101, Compensated Absences allows for the netting of activity. Component unit loan, note, and bonds payable consist of the following at June 30, 2025: $17,880,000 Charter School Refunding Revenue Bonds, July 15, 2014. Issued to refund the Series 2004 Charter School Revenue and Refunding Bonds. Due in annual installments ranging from $470,000 to $1,350,000 through August 2034; interest (ranging from 2.00% to 5.00%) payable semi-annually on August 15 and February 15.

Total

10,895,000 $ 10,895,000

Annual debt service requirements to maturity for outstanding bonds payable are as follows: Year Ended June 30,

Principal

Interest

2026 2027 2028 2029 2030 2031 - 2035

870,000 915,000 960,000 1,010,000 1,060,000 6,080,000

523,000 478,375 431,500 382,500 330,500 782,500

Total

$ 10,895,000

2,928,375

Total $

1,393,000 1,393,375 1,391,500 1,392,500 1,390,500 6,862,500

$ 13,823,375

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 7:

LONG-TERM DEBT (Continued) Component Units (Continued) Annual debt service requirements to maturity for vehicle lease agreements are as follows: Year Ended June 30,

Principal

2026 2027 2028 2029 2030

Total

113,966 118,091 122,295 126,793 131,383 327,647

34,034 29,909 25,705 21,207 16,617 19,287

148,000 148,000 148,000 148,000 148,000 346,934

940,175

146,759

1,086,934

2031 - 2034 Total

Interest

Annual debt service requirements to maturity for equipment lease agreements are as follows: Year Ended June 30,

Principal

Interest

Total

2026 2027

16,391 5,616

602 49

16,993 5,665

Total

22,007

651

22,658

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 8:

FUND BALANCES The following table portrays the detailed fund balance classifications which are summarized on the Governmental Funds Balance Sheet. NONMAJOR BOND GENERAL

GOVERNMENTAL

REDEMPTION

BUILDING

FUNDS

TOTAL

FUND BALANCES Nonspendable: Inventories Prepaid Items

2,573,957

124,095

2,698,052

4,767,998

7,341,955

124,095

7,466,050

Debt Service

67,694,508

Capital Projects

82,633,080

315,100

Technology

16,850,610

Emergencies

11,779,713

2,452,330

14,232,043

Total Nonspendable Restricted For:

Multiple Year Obligations Operations and

Medicaid

1,508,417

13,603,230

67,694,508

82,633,080

19,302,940

183,233,758

13,053,573

372,472

Food Service

48,710

Student Activities

8,480,992

Transportation

976,099

Capital Projects

9,083,800

Total Assigned

13,426,045

18,589,601

32,015,646

Total Restricted Assigned To: Subsequent Year Budget CDE Repayment

Unassigned, Reported In General Fund

67,746,910

Total Unassigned

67,746,910

Total Fund Balances

$ 102,118,140

$ 67,694,508

82,633,080

38,016,636

290,462,364

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 9:

RISK MANAGEMENT The district is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The district plans to provide for or restore the economic damages of those losses through risk retention and risk transfer. Joint School District Worker's Compensation Self-Insurance Pool The district, along with Aurora, Cherry Creek, and Littleton School Districts, combined to form the Joint School District Workers' Compensation Self-Insurance Pool (the JSD Pool) which is a public entity risk pool currently operating as a common risk management and insurance program for the school district members noted above. The JSD Pool is administered by a Board of Directors consisting of one individual from each of the four school districts. The JSD Pool board exercises control over the Pool and has contracted the management of the Pool operations to third parties. The participating districts make annual contributions to the JSD Pool based on the size of their respective payrolls. The contributions are retroactively adjusted based on each districts' actual loss experience. Each member of the JSD Pool is responsible for the first $100,000 of each loss. Losses between $100,000 and $550,000 are pooled between the member districts, and losses in excess of $550,000 are reinsured for up to statutory limits. There is no current or long-term debt associated with the JSD Pool. The contributions are determined on an actuarial basis and are sufficient to provide for the estimated claims and losses as determined by the actuarial computation. No settlements exceeded insurance coverage for each of the past three fiscal years. Colorado School Districts Self Insurance Pool The Colorado School Districts Self Insurance Pool (CSDSIP) operates as a self-insurance pool comprised of various school districts and other related public educational entities within the State of Colorado. The CSDSIP is administered by the Pool Board. The district pays an annual premium to the CSDSIP for various types of property and liability insurance coverage. The Pool Agreement provides that the CSDSIP will be self-sustaining through member premiums and will reinsure through a duly authorized insurer. The reinsurance covers claims against the CSDSIP in excess of specific claim amounts and in the aggregate in an amount and at limits determined by the CSDSIP to be adequate to protect the solvency of the CSDSIP. The district did not have any significant reductions in insurance coverage in the prior year, nor did it have any insurance settlements exceed insurance coverage in the past three years. Health and Dental Self-Insurance Under the district's employee health insurance plan and dental insurance plan, the district provides coverage for its employees and optional coverage for dependents. Claims liabilities are reported in each fund respectively if information available prior to the issuance of the financial statements indicates that it is probable that the liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. Changes in claims payable for the employee health insurance plan and dental insurance plan were as follows:

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 9:

RISK MANAGEMENT (Continued) Health and Dental Self-Insurance (Continued)

Claims Payable, June 30, 2023 Claims Incurred and Adjustments Payments Claims Payable, June 30, 2024 Claims Incurred and Adjustments Payments

Claims Payable, June 30, 2025

Health Insurance 2,123,866 26,069,071 (26,113,143) 2,079,794 31,704,271 (31,366,553) 2,417,512

Dental Insurance 198,555 2,351,894 (2,354,568) 195,881 2,326,051 (2,398,431) 123,501

Claims payable at June 30, 2025 are expected to be liquidated within the next fiscal year.

NOTE 10:

DEFINED BENEFIT PENSION PLAN Summary of Significant Accounting Policies Pensions. The district participates in the School Division Trust Fund (SCHDTF), a cost-sharing multiple-employer defined benefit pension plan administered by the Public Employees’ Retirement Association of Colorado (PERA). The net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position (FNP) and additions to/deductions from the FNP of the SCHDTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. General Information about the Pension Plan Plan Description. Eligible employees of the district are provided with pensions through the School Division Trust Fund (SCHDTF)—a cost-sharing multiple-employer defined benefit pension plan administered by PERA. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.copera.org/forms-resources/financial-reportsand-studies. Benefits provided as of December 31, 2024. PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined by the amount of service credit earned and/or purchased, highest average salary, the benefit structure(s) under which the member retires, the benefit option selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713, and 1714.

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 10:

DEFINED BENEFIT PENSION PLAN (Continued) General Information about the Pension Plan (Continued) The lifetime retirement benefit for all eligible retiring employees under the PERA Benefit Structure is the greater of the: • Highest average salary multiplied by 2.5% and then multiplied by years of service credit. • The value of the retiring employee’s member contribution account plus a 100% match on

eligible amounts as of the retirement date. This amount is then annuitized into a monthly benefit based on life expectancy and other actuarial factors. In all cases the service retirement benefit is limited to 100% of highest average salary and cannot exceed the maximum benefit allowed by federal Internal Revenue Code. Members may elect to withdraw their member contribution accounts upon termination of employment with all PERA employers; waiving rights to any lifetime retirement benefits earned. If eligible, the member may receive a match of either 50% or 100% on eligible amounts depending on when contributions were remitted to PERA, the date employment was terminated, whether 5 years of service credit have been obtained and the benefit structure under which contributions were made. Upon meeting certain criteria, benefit recipients who elect to receive a lifetime retirement benefit generally receive post-retirement cost-of-living adjustments, referred to as annual increases in the C.R.S. Subject to the automatic adjustment provision (AAP) under C.R.S. § 24-51-413, eligible benefit recipients under the PERA benefit structure who began membership before January 1, 2007. Eligible benefit recipients under the PERA benefit structure who began membership on or after January 1, 2007, will receive the lesser of an annual increase of the 1.00% AI cap or the average increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the prior calendar year, not to exceed a determined increase that would exhaust 10% of PERA’s Annual Increase Reserve (AIR) for the SCHDTF. The AAP may raise or lower the aforementioned AI cap by up to 0.25% based on the parameters specified C.R.S. § 2451-413. Disability benefits are available for eligible employees once they reach five years of earned service credit and are determined to meet the definition of disability. The disability benefit amount is based on the lifetime retirement benefit formula(s) shown above considering a minimum 20 years of service credit, if deemed disabled. Survivor benefits are determined by several factors, which include the amount of earned service credit, highest average salary of the deceased, the benefit structure(s) under which service credit was obtained, and the qualified survivor(s) who will receive the benefits. Contributions provisions as of June 30, 2025. Eligible employees of the district and the State are required to contribute to the SCHDTF at a rate set by Colorado statute. The contribution requirements for the SCHDTF are established under C.R.S. § 24-51-401, et seq . and § 24-51413. Eligible employees are required to contribute 11.0% of their PERA-includable salary during the period of July 1, 2024 through June 30, 2025. Employer contribution requirements are summarized in the table below:

Boulder Valley School District RE-2 NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE 10:

DEFINED BENEFIT PENSION PLAN (Continued) General Information about the Pension Plan (Continued) July 1, 2024 Through June 30, 2025 11.40%

Employer contribution rate Amount of employer contribution apportioned to the Health Care Trust Fund as specified in C.R.S. § 24-51-208(1)(f) Amount apportioned to the SCHDTF Amortization Equalization Disbursement (AED) as specified in C.R.S. § 24-51-411 Supplemental Amortization Equalization Disbursement (SAED) as specified in C.R.S. § 24-51-411 Total employer contribution rate to the SCHDTF

(1.02)% 10.38% 4.50% 5.50% 20.38%

Contribution rates for the SCHDTF are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42).