Nevada County Picayune and Gurdon Times Newspaper Archive

Board requests 4.7 new mills

The Prescott School Board will ask voters to approve a 4.7 mill increase in the September school election. That was the decision of the board during a special meeting held June 13.

The board voted 4-1 to ask for the increase with board vice president Shane Meador casting the dissenting vote. Meador said his vote wasnt against the millage increase, but was merely against that particular proposal. He said he favored a lower millage increase.

It wasnt a vote against the millage, Meador said following the meeting. There were six proposals laid out to us. That was just one proposal.

Meador was referring to six options presented to the board by Ray Beardsley, financial advisor for the district and vice president of Beardsley Public Finance.

Those options ranged from less than one mill to 4.7 mills, and listed expected revenues for various purposes.

The option approved by the board calls for 4.7 new mills bringing the district to a total of 39.8 mills. If the voters approve the measure, the district expects to enter into a bond agreement that will produce $1 million in revenue. Beardsley said that money could be available by November if the increase is approved in September.

In addition to the bond, the district will expect to receive some $140,000 in annual revenue to boost the schools declining balance.

Beardsley told the board members that there are two major problems facing the district - facilities and cash flow. The facility improvements have been mandated by the state and must be completed, though there are some opportunities to delay some of the projects or to shuffle the time frames for completion. Ultimately, if the district doesnt make the repairs, the state could place the district in facilities distress, which means the state would take control of specific issues in the district.

On the other hand, according to Beardsley, the district must also maintain a specific level of cash flow. Otherwise, the state can declare a state of fiscal distress and take over the district.

Beardsley told the board that the districts financial condition is not what it should be. He said Prescotts average expenditures range near $600,000 per month, and that the district should have enough to support them for two months on reserve at any given time. Prescott Superintendent Hyacinth Deon said she expects the districts ending balance for the current school year to be about $500,000 - less than half what Beardsley recommends. He said the legal ending balance for 2005 was $944,000.

Cash flow-wise, youre a long way from where you need to be, Beardsley said.

During a workshop prior to the official board meeting, Beardsley said he understands the boards reluctance to ask for a millage increase.

No one likes a millage increase, Beardsley said. But its where were at.

During the regular board meeting, the board was asked what would happen if they called for a millage increase that didnt pass. As one patron put it, Whats our plan B?

While theres been no direct answer to that question over the past several weeks as the board has continued to discuss the issue, the board did recently enter into a short-term loan agreement with a local bank in order to fund some of the mandated repairs.

The possibility of entering into similar agreements for repairs planned for the coming years has been discussed, but board members - including Jo Beth Glass - questioned the districts ability to repay those kinds of loans.

The declining student enrollment has caused some of the cash flow issues. Beardsley said the district has lost some 90 students over the past two years, and that amounts to about a half million dollars in state money.

Another concern brought up at the board meeting was the condition of the districts finances, and what measures are being taken to improve the situation. As one person put it, the coffee shop gossip is questioning the need for the additional money. The board was advised by several to get complete, accurate information ready for the public in order to gain public support.

Prescott School Board President Patricia Blake said the board should be united on the issue.

Whatever we decide, were going to have to stand together as a board, Blake said.

As the board discussed whether to ask for a millage, and how much to seek, Glass asked Deon about the cash flow issue.

Do you feel confident ... that our cash flow will sustain itself?

I wish I could say I was confident with that, but Im not, Deon replied.

Deon said the district is currently taking some steps to save money. She said she has not filled some positions, shifting existing personnel to cover whenever possible.

While she said she hadnt planned to make the alternatives public at this point, she said there are some steps the district can take to save additional money. Those included not renewing the extended part of some staff contracts and possibly eliminating some clerical positions. The called these steps painful, hurtful decisions.

Other possibilities on Deons list were changing the status of athletic programs. She said the alternative is to have volunteers as coaches and to have the programs operate after school, rather than during school hours.

That would save a ton of money, Deon said. If the community is not willing to fund us, there are some things we might need to look at.

Asked which of the proposed millage increases she approved, Deon said she favored the 4.7 mill increase that would also produce some money for the annual budget.

I dont see gas getting any cheaper, she said. I dont think expenses of having school are going to get any lower.

After a total of more than two hours of deliberation on June 13, Blake called for the vote. Glass paused to think before casting her affirmative vote for the 4.7 mill increase and Meador cast the only dissenting vote.

In other business, the board voted to approve district personnel policies. Deon said both the certified and classified personnel policy committees had approved the policies as presented.