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Frontier feels Wayne payment whiplash

NEW MATAMORAS – Higher expenses and lower revenues were the bottom line in a report presented to the Frontier Local Schools Board of Education Monday night.

Treasurer Lee Howard delivered a financial forecast calculated about halfway through the fiscal year that estimated revenues would be down by 3.3 percent and expenditures would increase by 5 percent compared to the previous year. The district’s fiscal year runs from July 1 to June 30.

A negative swing in the amount paid in lieu of taxes by the Wayne National Forest accounted for much of the $242,000 decline in revenue between the first five months of fiscal year 2018 – July through December of 2017 – and the same period in the current fiscal year, she said.

“Last year by this time we had received $194,472.60 from the Wayne National Forest, and this year they made us pay some back, $698.27, so we’re actually in the negative,” she said. “I have not figured out during my time here any way to determine from one year to the next what we will get from the Wayne.”

Because a substantial part of the Frontier district land base is occupied by the national forest, its potential tax base growth is limited and it depends to a greater extent than other Washington County districts on payments from the federal government operated lands, although the payments amount to a small fraction of its total annual revenue. Still, the difference in payments from the national forest accounted for a large proportion of the year-over-year revenue decline, she said.

“I don’t know if we’ll get anything from them this year,” she said. “It’s based on what they get from timber sales, camping fees … last year we got $252,000, which was by far the most we ever received from them. This year, so far, it looks like we’ll get by far the least.”

Howard said after the meeting that the amount is not large enough to impact programs or other operating expenditures in the district, but it could over time affect the cash balance the district holds.

Howard told the board that expenses are on track to increase by five percent compared to the previous year, and a major contributor to the increase is health insurance.

“The premiums are 16 percent higher than last year,” she said. “Rates are set on the previous year’s claims, and I’ve already been notified that our claims have gone up.”

Board member Justin Hoff remarked, “So that means our rates will go up again in July.”

The board also discussed a pending levy proposal.

Howard told them that if the board wanted to put the levy – a substitute levy for an emergency operating levy due to expire in two years – on the ballot in May, it would have to pay the entire $20,000 cost of the election because no other vote is scheduled in 2019.

“Well, we can take that off the board,” Hoff said.

Howard said the district’s legal counsel recommended putting it on the November ballot, and the board agreed.

The current levy, which is less than 2 mills, is a 10-year emergency levy. If voters approve the substitute levy, it would become permanent at the same rate.

Hoff said it brings in about $124,000 in operating funds a year through property taxes.

In other business, the board:

¯Received an update on efforts to recruit a Spanish language teacher. Rentsch said the district might have an opportunity to bring a Mandarin language teacher from Beijing, China, into the district through a distance education system, and might also be able to participate in a lottery for a Spanish language teacher from either Peru or Spain to intern in the district for a year or two. Spanish language needs are currently being met through an online system, he said. “The kids seem very receptive to having Mandarin available,” he said.

¯Approved an administration request to sign contracts with Pioneer Group to complete the final phase of ventilation system repairs in the district’s three buildings for a total of $46,344.

The board agreed to schedule its next meeting for 7 p.m. Feb. 18 in the media center at Frontier High and Middle School.

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