BULLHEAD CITY — The Colorado River Union High School District board will hold a special meeting Thursday at 6 p.m. so members can further discuss, then decide, how to cover an anticipated short-term funding gap of about $720,000.
During Monday night’s regular board meeting, board members were asked to approve a credit line of $2 million from Wells Fargo to cover for expenses incurred while the district waits for money to arrive from government sources, grants and taxes, according to district staff.
Further complicating the budget process this year is COVID-19. Some revenue is slow in coming to the district, such as CARES Act funding, for virus-related expenses required of the district.
COVID-related reimbursement grants that haven’t arrived total $329,000.
Further, state aid has been reduced by $188,000. And the district’s COVID-19 shutdown also is bringing with it estimated revenue losses in daycare and food service totaling about $76,000.
Cash flow shortages aren’t unusual and the district in past years has asked for a credit line of $1.5 million. The debt is paid off once anticipated funds arrive.
The Anderson Auto Group Fieldhouse, originally thought to be in the black, turned out to be in deficit by about $103,000 because of a paperwork error by Fieldhouse General Manager Ed Catalfamo. The error was discovered by the district during a routine verification process known as reconciliation.
Catalfamo told the board on Monday that bookings at the fieldhouse for sports training activities should bring the facility’s finances back on track by Thanksgiving.
Board members split their vote to approve the motion 2-2, which left the matter unresolved and has required the board to revisit it.
Time is said to be of the essence for the board to take action because staff payroll begins next week.
Among topics resolved on Monday:
- Named Board Member Lori Crampton as the board clerk. That position had been held by Pat Young, who resigned from the board last week.
- Approved policy changes that require the wearing of face masks by staff, students and visitors until Gov. Doug Ducey rescinds his face mask order.