Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
SUE BUITENHUIS, CPA for Gabridge and Company briefs the public and Bessemer Area School board Oct. 23 at the A.D. Johnston school.
By IAN MINIELLY
Bessemer - Gabridge and Company, represented by Sue Buitenhuis, provided a clean financial bill of health for the Bessemer Area Schools on Oct. 24.
Buitenhuis issued, "The highest opinion you can receive and this is the standard you should shoot for." She followed that statement by comparing the BAS to other school districts and saying Bessemer has a low amount of debt compared to other school districts.
The total long-term debt as of June 2017 for Bessemer was at $6,190,087. However, of that number, $5,486,532 is for the net pension liability for retired teachers and staff. Another $530,369 is owed on past loan and bond referendums.
- The district owes $183,750 on a 2012 term loan with Gogebic Range Bank. The interest on the note is 2.5 percent, with quarterly payments for $8,750.
- BAS owes $81,619 on a 2013 term loan taken out for roof repairs at A.D. Johnston School. The interest rate on the loan is 2.75 percent, with quarterly payments around $4,000.
- A 2003 bond for $2,380,000 to refund the 1993 school building and site costs that is scheduled to mature in 2019 had only $265,000 left on it as of last June. An interest only payment is due Nov. 1 each year with another principal and interest payment on May 1 through 2019.
Reviewing the revenue and expenditure sheet for fiscal year 2017, which ended in June, provides additional insight into how the district is funded.
Total expenditures for 2017 were $3,590,763, with the bulk of that figure made up as salary and supporting services at $2,323,472 and $1,050,648 respectively.
The school's revenue stream of $3,785,809 paid for those expenses, leaving the BAS $195,046 in the black. Property taxes only accounted for $548,118 of the district's general budget.
The state of Michigan kicked in the bulk of the money for the district at $2,969,115, with the federal government adding $231,355.
The district fund balance at the end of fiscal year 2017 was $585,677.
The positive cash flow for the BAS led the school board and staff to negotiate a 1.5 percent salary increase, which will cost an additional $25,586 per year, according to Annette Lillie, school board member.
The board also agreed to set aside an additional 5 percent of revenue for debt reduction.
