Tuesday, October 1, 2024
OCONTO FALLS – Flush with referendum funds to build a new middle school building, the Oconto Falls School Board is aiming to reduce debt and increase its fund balance keep its financial picture healthy.
At its Annual Meeting held Sept. 16, School Board Treasurer Ginny O’Harrow reported a fund balance – or reserve fund – of $3.7 million, up from about $500,000 in 2014-15.
O’Harrow considers this good news for the district’s future. “As the fund balance goes up, we minimize the amount we have to borrow,” O’Harrow said. This should reduce the burden on taxpayers over time.
The district’s budget should be helped by rising property values. Information presented at the Annual Meeting indicates statewide equalized fair market values rose 7.8% year over year, while Oconto County achieved a 15.2% increase, which Oconto Falls School District Business Manager Kim Sinclair was the most growth of any county in Wisconsin.
The district’s estimated equalized valuation for 2024 is $1.75 billion, up from $1.52 billion in 2023. The Town of Spruce achieved the largest increase percentage at 38.5%.
Among the 10 municipalities in the county, Oconto Falls grew 15%, according to materials presented at the meeting. “We are property richer, which will impact us over time,” Sinclair said.
This year’s general fund of $27.4 million represents a slight decline from $27.5 million in 2023-24. The largest category of revenue remains equalization aid from the state of Wisconsin at $13.8 million, up from $13.4 million a year ago, according to school district documents.
Property tax revenue is expected to generate about $9.5 million for the school district, up from $8.9 million a year ago. This will allow the fund balance to remain at about $3.7 million, representing 13.6% of expenditures, and should result in a stronger fiscal picture for the district.
The dollar amount of the total school levy is staying at about $12.5 million for the third year in a row, according to school district documents. While the general fund is rising to $9.4 million, the referendum debt is expected to drop to $2.5 million this year from $3.4 million. A non-referendum debt service fund is expected to rise to $536,000 from $49,000, the school district said.
The shrinking referendum debt is in the best interest of taxpayers, district officials said. “If we didn’t pay it off early, we wouldn’t be managing the money of taxpayers as well,” said Superintendent Dean Hess.
Hess noted High School Principal Stuart Ross is in a program to earn a superintendent’s license. Preparing the district for future growth, including sufficient teachers and administrators, is another ongoing task discussed at the meeting.
“We are facing workforce challenges at the district. Like many industries, we are working diligently to attract and retain top talent in a competitive market,” Ross said. “I believe this issue has hit crisis level for other districts in the state. We’re extremely fortunate to have brought on the talent we have. The challenge of filling future vacancies remains something that we need to be mindful of as we move forward.”
Of the total $27 million budget, about $16.9 million is used for salary and benefits.
A separate fund provides for continuing education for staff development. This year, it could include training on artificial intelligence. “We are embracing artificial intelligence to enhance learning and identify best practices in this ever-changing technology, so stay tuned,” Ross said.
He also said the community support for Oconto Falls public schools is what’s allow the district to improve. “I can’t stress how fortunate we are as a district to have the community’s willingness to invest in our district. It allows us the opportunity to better serve our students. Without it, we wouldn’t be in the position we currently are to address some of the challenges we face,” Ross said.
About 38% of the student population qualifies for free and reduce school meals, according to the school district. The district receives federal aid for the meals and other educational programs as well, so parents are encouraged submit applications for their program, which is based on income.
The district is moving from contracted foodservice to in-house foodservice, which Hess described as a “monster” project.
The board agreed to continue to retain investment manager PMA Asset Management LLC to manage its assets. The investment return on about $1.8 million in WI OPEB post employment benefits was $328,934 or about 18%.
Hess said the district is continuing to be prudent in its use of $37.63 million in capital improvement funds from a 2022 referendum. About $35.5 million was earmarked for construction of the middle school on 90 acres adjacent to the elementary and high schools, according to a Sept. 21, 2022 Peshtigo Times story. The rest was to be used for roofing and secure entrances at the district’s schools. The roofing project is completed.
Hess described a cafeteria for Abrams Elementary School as a “need,” rather than a want because the school was built without one and it was sorely missed. But he said he’s also conscious of keeping the overall footprint of a school efficient to avoid a spike in maintenance costs.
“We have a lot more things we’d like to support than we have the fiscal means to do so,” he said, noting that inflation has been rising at a faster rate than new revenue for education.
The district currently has about $12.2 million in elective expenditures for future needs, according to documents presented at the meeting. Recommended projects account for about $3.7 million. Other expenditures would need board approval.
Hess said the elementary school roofing project is completed. The middle school is on schedule to open in 2025. About 62% of the project is completed, and the district has used about 30% of contingency fund.
Members of the school community commented on plans for furnishing the new middle school, such as the size of new desks and chairs for teachers. Board member Sarah Schindel said, “The teacher’s desk kind of makes me cringe. It just looks real small.”
The decision on which desks to purchase was made largely on price, Hess said, noting the furniture for the middle school is under budget by $30,000.
School Specialty is providing the furniture and installation. The company’s bid was lowest in cost, he said. Some desks are $1,200 and they also step up to $4,800. Teachers’ desks come with an extension arm and a table on the side. They also will have bookshelves, he said.
The district has some discretionary funds for specific requests, such as extra storage for certain classrooms.
