Gravette finance report: $5.01 million bond proceeds, cash position and 20% retention limit explained

District finance staff presented year-end results and the calculation used to ensure the district remains within the statutory 20% retention limit on net legal revenues.

Highlights given on the record: the district closed bond proceeds with net receipts of $5,008,004 on June 26; June property-tax receipts were about $523,000; gross payroll for the month was near $2 million (some employees received two checks); year-to-date expenditures were about $26.6 million; and total cash at month-end was cited at about $10.2 million.

Why it matters: Arkansas law limits how much operating cash a district may retain (board discussion referred to a 20% statutory cap on net legal revenues). The business manager explained the mechanics of the calculation and noted that certain funds coded to operating — including $877,000 at Legacy Bank — are not operationally available and therefore reduce the district’s usable legal balance.

Board takeaways: the business manager said July 14 net legal balance was approximately $2.7 million (about 11.36% before subtracting unavailable Legacy Bank funds), which the staff calculated would leave the district under the 20% cap after accounting for the unavailable $877,000 (bringing the practical percentage to about 7.73%). He recommended not making a bill-to-file transfer at this time and noted the district typically moves some funds to the building fund in July or August to remain in compliance.

Ending: Board approved the financial report and audit. Staff will continue to monitor cash, signatory authority and vehicle for temporarily parking funds for yield while complying with statutory limits.