Glenwood Herald

Caddo Hills asking for 4 mill increase to keep district viable September 10, 2008 - No reporter cited

By Michael G. Fox
Editor

NORMAN – About 70 patrons of the Caddo Hills School District heard the grim news at a public meeting last Thursday evening that if the millage increase does not pass, the district may be in the red financially in the next couple of years, which could then lead to a state take over of the district and possible consolidation.

The district is requesting a 4 mill increase in the annual school election next Tuesday, September 16.

These mills will be for debt service. The district is also asking for an extension of the existing 8.7 debt mills through 2038, which is a 10 year extension.

Right now, the millage rate is 33.7. The 4 mill increase will bring the millage up to 37.7. The state average is 36.25 mills.

By comparison, Mount Ida has a millage rate of 34 mills.

Ray Beardsley of Bearsley Financial Consultants of Little Rock addressed the crowd about the millage rate and bond issue.

“This is for debt restructuring. To improve cash flow. It will pay off two existing bond issues and two short term debt items,” Beardsley told the crowd.

“It is kind of like paying your mortgage and paying off some credit card debt,” he mused.

Two of the four new mills will be for cash flow into the district such as teachers salaries, diesel for busses, etc. If passed, it will not go into effect until the 2009-10 school year.

It will also include $200,000 in lump sum money for facilities only. So the district should not have to ask for another increase for the foreseeable future.

The increase will generate $3,370,000. Most of that will pay off bonds and pre-existing debt.

“If you own a $50,000 house, this will increase your taxes by $40 per year,” Beardsley said.

Next, Beardsley gave reasons for the millage increase.

“Number one, if you lose kids, you lose money,” he said.

Caddo Hills has lost 75 students since the 2003-04 school year. That is $440,000 per year that has been lost in state revenue.

In the Caddo Hills district, one mill generates $24,570. In comparison, at Mount Ida, one mill generates $51,270 and in the Little Rock School District, one mill generates about $3,000,000.

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