Financial Report Reveals Good News For Snowflake Unified School District

The primary tax rate decreased from $4.8242 per $100 in assessed valuation in 2014 to $4.3242 in 2015, and the secondary tax rate went from 95.65 cents in 2014 to $1.1052 in 2015.

Revenues declined from $18,047,305 in 2014 to $16,841,134 in 2015, and expenditures increased from $18,069,250 in 2014 to $20,784,591 in 2015.

Ollerton broke down where the revenues came from, explaining that the district had local revenues of $4,604,747 in 2015, down from $5,738,156 in 2014; Navajo County provided $534,103 in 2015, down from $602,700 in 2014; state revenues were $9,472,014 in 2015, down from $9,485,500 in 2014; and federal revenues were $2,230,269 in 2015, an increase from $2,190,513 in 2014.

Ollerton showed a pie chart delineating the percentage of the district’s revenues, including 13 percent federal, 28 percent local, three percent county and 56 percent state.

Debt service included $5,255,000 in outstanding principle, and retired principle in the amount $670,000, paying $253,195 in interest.

A total of 70.5 percent of the district’s budget goes to salaries and benefits, 20 percent to supplies such as utilities and food service, 10 percent to transportation, and 4.5 percent to furniture and equipment in the classroom.

The energy lease principle was $156,500. The district paid $95,851 in interest, leaving an outstanding principle of $2,188,800. The utility changes made by Midstate have saved the district money, but some of that is attributed to having mild winters the last two years. Ollerton is waiting for a report from Midstate that will take into account the good weather.

The carry forward budget capacity in the maintenance and operations fund went from $493,924 in 2014 to $475,278 in 2015. Assets totaled $40,920,938 in 2014 and $41,560,606 in 2015. The average daily membership declined from 2,335.33 in 2014 to 2,227.827 in 2015.

Ollerton also discussed auxiliary operations and tax credit donations.

Auxiliary operations funds come from high school and junior high school clubs and include kindergarten through sixth grade, including library and reading clubs, and field trips that are related to the students’ education. The auxiliary operations beginning balance was $161,292, with revenues of $322,265 and expenditures of $299,791 for an ending balance of $183,766.

Tax credit donations are those made to the school and deducted from the donors’ state income tax. Citizens can make donations and specify where they want those moneys to go. They typically go to things like music and sports, According to Superintendent Hollis Merrell.

Snowflake High School Principal Larry Titus noted that legislation was passed this year allowing tax credit donations to be used for testing, such as ACT and SAT tests.

Tax credit donations beginning balance was $18,048, with revenues of $30,445 and expenditures of $26,327 for an ending balance of $22,166.

Ollerton reported that 58 percent of the budget was spent in the classroom, 10 percent was spent on administration, which includes the superintendent, principals, assistant principals, school secretaries, the business office, the IT director, and the warehouse and copy center 12 percent was spent on student support service, which includes attendance, student discipline, the psychologist, speech therapist, vision therapist, occupational therapist, physical therapist, counselors and special ed directors, and 20 percent was spent on utilities, maintenance, transportation and food services.

“We started the year having to draw down against our budget carry forward nearly $283,000 to balance the budget,” Ollerton noted in his summary. “The board directed me to strive to carry over four percent for fiscal year 2015-16, as allowed by law.” He said that with the savings in utilities, transportation and other areas, this was accomplished. The district also was able to shore up vocational and forest fee funds.

District officials revised the fiscal year 2014-15 budget and transferred $231,947 in maintenance and operations funds to capital expenditures, which extended the life of unrestricted capital, reported Ollerton.

A summary of the financial report that will be submitted to the Arizona Department of Education and Navajo County School Superintendent Linda Morrow will be posted on the district website.