School financially in good shape

Marlene Verdoes of Hoffman and Brobst last Tuesday presented the 2016-2017 audit to the Minneota School Board, indicating, “All together, all funds seem to be positive.”

Revenue was up and one of the reasons was an increase of Ivanhoe students from 47 to 50 this year. Ivanhoe students are bringing in over $94,000 more this year. This was the third year of a 10-year agreement with Ivanhoe.

But the general fund revenues and other financing sources exceeded expenditures for the year by $52,336 said Verdoes. Most that was from the Ivanhoe student increase.

The balance sheet showed Minneota had a total revenue of $7,015,911 last year as compared to $6,685,421 a year ago.

Expenses were $8,243,409, compared to $6,525,579 one year ago.

While the loss of $1,092,498 was shown, Verdoes explained, “The net position decreased $1,092,498 from the prior year primarily due to a change in the estimated discount rate used by the Teacher Retirement Association’s Net Pension Liability fund.”

The rate dropped from eight percent to 4.66 percent, bringing in less money to the district.

After deducting the beginning net position of $456,146, the district’s net position was a negative $636,352. During the year, the district completed the ventilation system improvement and sprinkling/fire alarm system replacement projects in the current year.

There was also an addition to the energy conservation and deferred maintenance projects. The fund balance was in compliance.

The district maintained 28 percent of the District’s General Fund operating budget. “Right now you are in a very favorable place with your cash flow,” Verdoes said.

“In August 2016, the school district issued $2,620,000 in general obligation alternative facilities refunding bonds. The proceeds of the issue were used to finance a partial advance refunding of the 2023 through 2028 maturity of the district’s $2,945,000 general obligation alternative facilities bonds.”

“Due to the nature of the partial advance refunding, the proceeds of this bond issue are being held in escrow lentil the 2018 call date of the bonds,” said Verdoes.

She added that the advance refunding was undertaken to reduce the district’s future debt service payments by $288,552, resulting in a present value savings of $260,337.

“For a small district and for having Tegan (Gillund, financial officer) doing all the (financial) duties, you’re doing quite well right now. Tegan does a very good job and completes everything for us,” Verdoes said.

And Verdoes added, “You have a very healthy fund balance.”