Bentonville board approves close-period financial report and budget projection

The Bentonville School District board approved the district’s period-11 financial report and projections for the fiscal year ending June 30.

District finance staff reported an all-funds balance of $105,500,000—an increase of $4,700,000 over the prior year—and operating fund revenues of $240,500,000, up $14,900,000 year over year. The presenter said $3,300,000 of the revenue increase was attributable to student growth and the remainder to higher property assessments within district boundaries.

Expenditures were reported at $199,500,000, an increase the presenter described as $99,400,000 over the prior year, driven by additional students and salary increases. Revenues exceeded expenditures by $40,900,000, which the presenter said produced an operating fund balance of $80,300,000 (32.1%) at the time of the report. Staff projected final revenues to finish about 2.2% over budget (roughly $5,500,000) and expenditures about 3% under budget (roughly $7,500,000), producing a projected ending fund balance of roughly $53,400,000 (20.9%).

The presenter warned that timing of property tax receipts can materially change year-end balances; he said the district assumed 94% of tax receipts had been received but historical ranges as low as 87% could produce an $18,300,000 swing. He reminded the board that Arkansas Code 6-20-2210 limits a district’s fund balance to 20% and that district policy 7.1 sets a 15% lower target; staff said they expect to move some funds from operating to the building fund after the close of the fiscal year to support future construction while preserving operating budget integrity.

Board member Willie moved approval of the budget report; Jeremy seconded. The board voted unanimously to approve the item.

No additional action items were associated with the report beyond board approval of the financial recommendations.