BENTONVILLE -- The School Board used a work session Thursday to discuss finances and get a preview of the budget for next fiscal year.
Scott Beardsley, a financial adviser to the district, reviewed with board members how much money is flowing to the schools through a combination of local and state sources.
Dave Perozek can be reached by email at [email protected]
The district has a millage rate of 46.6, one of the highest rates in the state. The average rate among Arkansas districts is 37.5 and the highest is 49, Beardsley said.
The board decided last year to start setting aside money to pay for another elementary school through a second lien rather than another millage increase. This year's budget includes $400,000 set aside for that school. Next year's budget will have $800,000 set aside. The year after that, $1.2 million will be set aside. Officials have estimated the new school would cost about $17 million.
The district is aiming to open that school in time for the 2017-18 school year, but still needs to find and buy land for it. Michael Poore, superintendent, said he hopes to present land options next month.
The district is projected to collect slightly more than 98 percent of the local taxes owed to it this year, Beardsley said. Any amount the district collects above 98 percent on its first 25 mills must be sent back to the state, but the district may keep the full amount on the rest of its millage rate -- 21.6 mills.
The state bases its payments to school districts on enrollment during the previous school year's third quarter. The state also provides "growth funds" to districts based on how much enrollment grows over the course of a year. Bentonville's average enrollment during last quarter was 15,453, an increase of a few hundred from the year before. The district projects receiving $1.4 million in growth money this year.
Sterling Ming, district finance director, presented an updated budget assessment for this fiscal year, which ends June 30.
Staff raises the board approved in November, retroactive to July 1, cost the district an extra $2.3 million, bringing the total projected expenditures to $140.7 million. That's about $30,000 more than what's expected in revenues. The district would end this fiscal year with a fund balance of about $24 million.
Ming also presented, at the board's request, a glimpse at the budget for the 2015-16 school year. He cautioned it's "really early" to present such figures. That budget shows expenses exceeding revenues by about $1.3 million, which would draw the fund balance down to $23 million.
He based his projection on student growth of 154 students and no salary increases, he said.
Poore said he thought the reports from Beardsley and Ming showed the district to be in good financial health.
"I thought it was another positive report any way you slice it," Poore said.
NW News on 01/23/2015