District 88 audit shows declining fund balance

By GUY PRIEL

Journal Staff Writer

NEW ULM -- The annual audit report for District 88 confirmed concerns for dropping enrollments and a decreasing fund balance. The report was presented to the board on Thursday.

At the end of the 1998-1999 school year, the district had a total fund balance of $3,213,068, according to the audit. Expenses were $19,678,779, and revenues were $19,324,933. The fund balance at the end of the 1999-2000 was $2,859,222. Of the total amount, the reserved balance was $559,589.

Districts should have about two months worth of funds available in the general fund balance in unreserved funds, auditor Bob Qualset told the board. District 88 is at the low end of the recommended amount, which is about 40 operating days, meaning the district should have between $1.5 and $3 million, he said.

"All funds are positive, but you should be concerned about your decreasing fund balance," Qualset said.

The fund balance helps out when the state runs into funding issues, and provides smoothness in the case of a failed referendum so cuts are not immediate, he said.

The total net tax capacity for property taxes collectible in 2000 was $10,512,148. The total amount levied for 2000 was $3,846,995. This amount was down from the 1999 levied amount, which was $4,517,895.

"Financially, you are doing pretty well," Qualset said. "Any district with declining enrollments has a decreasing fund balance."

Audit figures are fairly close to what District 88 officials had estimated, Superintendent Harold Remme said.

"We have taken a conservative approach in maintaining our fund balance to this point," Remme said. "We are in the lower third in revenue in the state among all districts."

Enrollment

Enrollment figures for District 88, as of Sept. 30, indicate an overall decline from 1999-2000.

Figures released Thursday night indicate an overall enrollment of 2,631 students, 75 less than last year's 2,706. The largest declines are with the second and 10th grades. The largest increases are in the 11th and 12th grades.

There are 949 students at the high school; 449 students at the middle school; 563 at Washington Elementary; and 602 at Jefferson Elementary. The remaining students are enrolled at the Early Childhood Center, The Alternative Learning Center and the Juvenile Detention Center.

"We will continue to perform monthly monitoring to determine enrollment estimates as we begin the budget process," Remme said.

Upcoming budget

In preparation for the 2001-2002 budget, a series of surveys will be conducted through the end of November. Approximately 445 residents will be surveyed to determine how people view the district. Survey participants include a cross-section of community members, from parents to staff, Remme said.

Capital improvement

The board considered the five-year capital improvement plan that averages $500,000 per year worth of projects that should be considered if the money is available. The plan is required by the state each year, and it is updated for inflationary rates.

"The important thing to consider is how much money should be dedicated each year to work at the middle school," Remme said. "I would like us to consider moving capital improvement discussions up earlier in the budget process."

Over half the money estimated each year is for work at the middle school, Facilities Director Scott Hogen said.