Whitnall School District to be Nearly Debt Free by End of the Year

In an early morning special meeting of the Whitnall School Board last week, the board decided to make a financial move that will leave them nearly debt free for several years.

The board decided Sept. 7, the same day it approved the district’s 2011-12 preliminary budget, to use fund balance to pay down existing debt by the end of the year, with the exception of one outstanding small bond, according to interim business manager Doug Johnson, who addressed the issue at Monday’s .

“The district will be debt free,” Johnson said, “which will give us room under the revenue caps and additional money for spending on educational programs rather than on debt.”

According to Johnson, $8.3 million of the projected $12 million fund balance will be used to pay debt.

Paying off the debt, according to board treasurer TJ Anderson, frees up $800,000 per year that was coming out of the operating budget for debt to now be used for capital projects. Renovation of the high school pool appears to be high on that priority list.

“Prior to (paying the debt) we would not have enough money to capitalize anything more before the (facilities) project outside was done,” Anderson said. “The best-case going forward today was to pay down all of our debt.”

Through defeasance, it took out for the facilities project, and pay down referendum debt.

According to Anderson, the district anticipates an estimated $1.58 million budget surplus for 2011-12, not $2.3 million, . The district had $2.7 million surplus from last year added on to the fund balance of previous years.

“The surplus was a surprise to all of us,” Anderson said. “We’re getting rid of all of our debt; getting rid of debt now frees up money under revenue limits.”

As for the preliminary budget, it is expected to be approved at the budget hearing and annual meeting to be held at 6:30 p.m. Sept. 26, in the community room of the district building.