School district financial risk analysisDecember 2020

District

Demographic information

Less common revenues

County: Cochise County
Operational peer group (FY 2020): 11
Legislative district(s): 14
FY 2019 FY 2020
Students attending: 37 32
Number of Schools: 1 1
FY 2020
Desegregation
0
Federal impact aid
0
Small school adjustment
150,000
Voter-approved budget overrides
0
Total less common revenues per pupil
4,688

Analysis results

Summary of risks identified:

The District’s weighted student count has declined 14 percent in recent years, reducing its student-count-generated revenues and budget limits. By not cutting spending below available revenues in fiscal years (FY) 2019 and 2020 (i.e., negative operating margin), the District incurred a deficit General Fund balance of just over $218,000 by June 30, 2020. The District also overspent its operating budget limit in FYs 2019 and 2020 by over $42,000 and $60,000, respectively. The District’s primary property tax rate has been frozen since FY 2016, leaving each years’ small school budget limit adjustment partially unfunded. If the District continues to spend up to its allowed budget capacity, using lines of credit or other borrowing to accommodate its cash deficit, the District’s General Fund deficit may worsen. Between FYs 2017 and 2021, the District redirected 72 percent of its capital monies, including 100 percent in FYs 2020 and 2021, to operational spending to lessen the severity of the operating budget overspending. However, those redirected monies limited the District’s ability to meet large capital spending needs.

District response:

In an effort to move forward and eliminate overspending, the district has taken the following steps:

To address a decline in student enrollment, Double Adobe school district has reached out to the community via household mailers, advertising, flyers, and our Facebook and webpages. We have increased student membership over the previous year, however we have to be conscious of class sizes due to COVID-19 and CDC guidelines. We have a list of potential students, who we contact as space becomes available. We will continue our parents/community outreach in the spring to garner potential students.

Due to attrition, we have a cost savings of over $52,000 plus insurance benefits. We did not refill this position and instead combined the kindergarten and first grade into one classroom. In addition, another teacher retired and came back through ESI, which has also saved us insurance costs.

The current BUDG 25 shows that no revision is required of our budget to be within our budget limit.

Change in weighted student count
11.1% -13.8%
(1-year) (4-year)
Fiscal year Group A WSC
2021 50
2020 45
2019 52
2018 55
2017 58
Operating budget limit reserve
-41.4% -100.0%
(1-year change) (3-year change)
Fiscal year Balance
2020 ($60,127)
2019 ($42,527)
2018 $23,593
2017 $18,153
Capital budget limit reserve
-2.8% -7.5%
(1-year change) (3-year change)
Fiscal year Balance
2020 $137,945
2019 $141,884
2018 $126,394
2017 $149,080
General Fund operating reserve ratio
-34.6% -26.3%
FY 2020 unaudited 2019 unaudited
Fiscal year Balance Expenditures
2020 unaudited ($218,260) $630,336
2019 unaudited ($186,279) $709,580
General Fund operating margin ratio
-5.3% -19.2%
FY 2020 unaudited 2019 unaudited
Fiscal year Revenue Expenditures
2020 unaudited $598,635 $630,336
2019 unaudited $595,126 $709,580
General Fund change in fund balance
-17.2% -100.0%
FY 2019 to FY 2020 unaudited 2018 to 2019 unaudited
Fiscal year Change amount
2019 to 2020 unaudited ($31,981)
2018 to 2019 unaudited ($120,449)
Capital monies redirected to operations
100.0% 72.3%
(FY 2021) (5-year average)
Fiscal Year Capital monies Amount redirected
2021 $17,337 $17,337
2020 $20,302 $20,302
2019 $21,357 $0
2018 $16,096 $9,879
2017 $22,392 $22,392
Small school budget limit adjustment

District's small school budget adjustment is not fully funded because of a frozen tax rate.

Fiscal year Adjustment
2021 $150,000
2020 $150,000
2019 $138,000
2018 $150,000
2017 $136,436
Frozen tax rate

District's primary property tax rate has been frozen since FY 2016.

Receivership

District is not in receivership.