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: | 90 | 107 |
| Number of Schools: | 1 | 1 |
| FY 2020 | |
|---|---|
Desegregation |
0 |
Federal impact aid |
0 |
Small school adjustment |
551,102 |
Voter-approved budget overrides |
0 |
| Total less common revenues per pupil | 5,150 |
Analysis results
The District’s weighted student count has declined 10 percent since fiscal year (FY) 2017, including a 9.3 percent decline since FY 2020. These declines reduced its student-count-generated revenues and budget limits. By not cutting spending below available revenues in each year (i.e., negative operating margin), the District incurred a deficit General Fund balance of over $130,000 in FY 2017, and the deficit grew to over $417,000 at the end of FY 2019. While the District’s unaudited FY 2020 annual financial report included an increase in its General Fund balance, it still reported a deficit balance of over $300,000. The District’s primary property tax rate has been frozen since FY 2014, in part due to levying for its small school budget limit adjustment. That adjustment has allowed the District to spend, using lines of credit and other borrowing, without reporting any budgetary overspending, but that spending has left its nearly $150,000 reported operating budget limit reserve completely unfunded. If the District continues to spend up to its legally allowed budget capacity, without related revenues, its General Fund deficit may worsen, and it may exceed its borrowing capability.
The District was not required to provide a response to its identified financial risks as we notified the District of its highest-risk designation in November 2020 based on the most recent financial and student count data. We will begin periodic meetings with the District in early 2021 to discuss more about the actions they have taken or are evaluating to lessen their financial risk. If the District remains in the highest-risk category, we will require a response when this analysis is updated.
Change in weighted student count
| -9.3% | -10.0% |
|---|---|
| (1-year) | (4-year) |
| Fiscal year | Group A WSC |
|---|---|
| 2021 | 117 |
| 2020 | 129 |
| 2019 | 117 |
| 2018 | 111 |
| 2017 | 130 |
Operating budget limit reserve
| -4.6% | 100.0% |
|---|---|
| (1-year change) | (3-year change) |
| Fiscal year | Balance |
|---|---|
| 2020 | $148,624 |
| 2019 | $155,858 |
| 2018 | $18,503 |
| 2017 | $60,277 |
Capital budget limit reserve
| -3.0% | 100.0% |
|---|---|
| (1-year change) | (3-year change) |
| Fiscal year | Balance |
|---|---|
| 2020 | $120,608 |
| 2019 | $124,279 |
| 2018 | $4,935 |
| 2017 | $10,742 |
General Fund operating reserve ratio
| -31.3% | -36.9% |
|---|---|
| FY 2020 unaudited | 2019 audited |
| Fiscal year | Balance | Expenditures |
|---|---|---|
| 2020 unaudited | ($338,184) | $1,079,670 |
| 2019 audited | ($417,590) | $1,130,856 |
General Fund operating margin ratio
| 12.7% | -6.8% |
|---|---|
| FY 2020 unaudited | 2019 audited |
| Fiscal year | Revenue | Expenditures |
|---|---|---|
| 2020 unaudited | $1,236,595 | $1,079,670 |
| 2019 audited | $1,058,733 | $1,130,856 |
General Fund change in fund balance
| 31.2% | -26.0% |
|---|---|
| FY 2019 to FY 2020 unaudited | 2018 to 2019 audited |
| Fiscal year | Change amount |
|---|---|
| 2019 to 2020 unaudited | $153,092 |
| 2018 to 2019 audited | ($86,262) |
Capital monies redirected to operations
| 0.0% | 0.0% |
|---|---|
| (FY 2021) | (5-year average) |
| Fiscal Year | Capital monies | Amount redirected |
|---|---|---|
| 2021 | $52,840 | $0 |
| 2020 | $49,490 | $0 |
| 2019 | $42,764 | $0 |
| 2018 | $40,387 | $0 |
| 2017 | $39,853 | $0 |
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 | $551,102 |
| 2020 | $551,102 |
| 2019 | $551,102 |
| 2018 | $551,102 |
| 2017 | $551,102 |
Frozen tax rate
District's primary property tax rate has been frozen since FY 2014.
Receivership
District is not in receivership.