Determine whether the Board and District officials effectively managed the District’s general fund financial condition.
As of June 30, 2017 unrestricted fund balance exceeded the statutory limit by approximately $1.2 million, or 4 percent.
- The Board annually adopted budgets with overestimated appropriations averaging $2.8 million (10 percent).
- District officials overfunded two reserves that totaled about $5.3 million and did not use most of the debt reserve funds.
- Taxpayers might have realized $775,000 in cumulative tax savings if the Board maintained the same 2013-14 tax levy and used reserves to pay for related expenditures.
The Board and District officials should:
- Ensure unrestricted fund balance is in compliance with statute.
- Adopt realistic budgets based on historical or other known trends.
- Review reserves to determine whether they are necessary and reasonably funded and use the debt reserve funds to pay related debt.
District officials disagreed with us in many instances; however, they indicated they plan to take corrective action. Appendix B includes our comments on the issues raised in the District’s response letter.