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District #299 audit report will bring challenges to school board
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By Craig Moorhead
For the Caledonia Argus
Darwin Viker of Larson Allen Weishair & Company, LLP, appeared before the Caledonia School Board on Nov. 24 with the school audit report. The company Viker represents specializes in this type of audit, doing reports for approximately 100 school districts.
The news was not good. The report cites rising costs due to state mandated programs. Anticipated state funding for some of these programs has not occurred. Extra winter related expenditures from last year (colder and snowier than average) and the “decision to add an additional section of middle school reading instruction” have taken their toll on the budget. At the same time state per pupil funding is rising at a lower rate than inflation. In addition, declining enrollment will cost the district as far as future state funding is concerned.
The report states that the district’s policy is to maintain an eight percent (of expenditures) reserve balance in the general fund. Because of the problems listed above the reserve has fallen to 2.2 percent of expenditures. That represents a drop of $391,676. The audit report states that “The district will need to look at significant reductions in services or an increase in the operating referendum if it hopes to return to that eight percent general fund balance.”
Not all bad news
The report was not all bad news. Building bonds issued in 2000 were refunded “to obtain a more favorable interest rate.” This is expected to save taxpayers $708,705 over the remaining 13-year life of the bonds.
Personnel issues
The board voted to approve junior high wrestling coaching contracts for Dan Goergen and Spencer Yohe. The board also approved the hiring of Merle Hanson as junior high girls basketball coach. Part-time employee Greta Mierau requested family leave for the second semester. This was approved by the board.
Free passes to varsity games?
The Boys Basketball Booster Club requested that seventh and eighth grade players be given free admission to varsity games. This brought discussion from board members as to the fairness involved since some sporting events are held in one venue (both junior high and high school) and some are not, requiring some students to pay to get in while others do not.
As Superintendent Mike Moriarty explained, “Once kids are admitted, you can’t expect them to leave and come back in, just so that they can pay.” Board members discussed options and decided that the issue should be tabled until June of 2009.
New neighbors
The board discussed Houston County’s plan to develop a 20 acre parcel located north of the middle school/high school campus. This site would house the new county Highway Department.
The county is proposing a 90 foot setback from school property. Since a city ordinance would require a 150 foot setback, the school district would need to approve the proposed plan. After discussion board members agreed to endorse the county’s plan. The fact that the county would be building an access drive which eventually (although not initially), may tie in with school property was brought up, and was viewed as advantageous to the school district.
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