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HILLSBORO R-III presents financial snapshot: major debt reduction, low local tax rate and steady enrollment declines
Summary
District administrators told the HILLSBORO R-III board the district has reduced general obligation debt from about $29 million in 2019 to roughly $6.2 million in 2025, maintains a low tax rate compared with the county, and expects continued enrollment declines while tracking operating revenues and investment earnings.
District administration delivered a comprehensive financial report showing a materially improved balance sheet and several trends that will shape budgeting.
Speaker 2 told the board the district’s total general obligation debt stands around $6,200,000, down from roughly $29,000,000 in 2019. "We significantly reduced our debt from $29,000,000 in 2019 to approximately $6,000,000 in 2025," the presenter said during the recognition segment and finance overview. Administrators attributed the reduction to planned prepayments tied to bond schedules and strategic fiscal management.
Operating revenues are a blend of local, state and federal sources; Speaker 2 said local revenue constitutes roughly 49% of operating revenue while state sources are approximately 41%, making the district sensitive to state funding shifts. The presentation noted operating funds spend about 59.5% on salaries and 17.7% on benefits—about 77% of operating funds overall.
Speaker 2 also reviewed investment income and cash‑management strategy: the district recorded strong interest earnings in earlier months (examples cited as several months with five-figure to six-figure returns), with nearly $1,000,000 in investment earnings year-to-date, and discussed locking funds for short maturities to preserve payroll cash flow while earning higher rates.
Enrollment trends were described as a steady decline; administrators noted a new subdivision could moderate that trend, and open-enrollment legislation (House Bill 711) could affect short-term enrollment patterns. The financial packet and investment exhibits were made available on the district website for public review.
The board heard the report without formal action; administrators said they will continue monitoring revenues and expenditures as budget planning continues.
