School finishes year in sound financial shape

— Gentry School District finished out the 2010-2011 school year in good financial shape, and the school board approved a budget for the current school year which should maintain a healthy end-ofyear balance.

School superintendent Randy Barrett reported to the board a closing balance for the 2011 fiscal year of $1,577,612. The closing balance does not include money transferred into the district’s building fund priorto the closing of last year’s report.

In a budget adopted by the board on Sept. 19, the year-end balance is projected at $1.7 million, slightly higher than the actual closing balance for last year.

End-of-year balance figures include money in the operating fund and not the building fund and other special funds. An ending balance of approximately $1.5 million is needed to keep the district in good financial standing with the Arkansas Board of Education.

The Gentry School Boardalso gave final approval to the refinancing of a 2005 issue bond of $1,380,000 at a lower interest rate, resulting in a net savings to the district of $105,044.46.

Five investment firms bid on the new bond, with the lowest interest rate being 3.31085 percent in the bid of Ross, Sinclaire & Associates, Inc.

In a letter sent to Barrett by Dennis Hunt, senior vice president of Stephens, Inc., he said the district would realize $62,154 in savings by April 1, 2012, with the rest realized over the length of the bond which is scheduled to be paid in full in the 2033-2034 fiscal year.

The board had initially given Hunt the approval to go ahead and seek bids on a new bond when he anticipated savings of approximately $75,000 to the district a year ago. With interest rates coming in even lower than originally anticipated, the savings will be greater.

Barrett said the district is now in maintenance mode due to lower student numbers and uncertainties about future revenue. Rather than planning to build new facilities, we are taking care of what we have, Barrett explained.

School News, Pages 11 on 10/05/2011