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About The independent. (Vernonia, Or.) 1986-current | View Entire Issue (Jan. 15, 2004)
The INDEPENDENT, January 15, 2004 Page 11 decides on inter-fund lending system to complete athletic facility From page 10 Therefore, she said, the ad- ministration was proposing that part of the available funds be used to create a solution that would meet current needs while protecting the Buxton School Fund. McGlasson iden- tified three options for providing funding: • The board could desig- nate the project as a capitol improvement and expend money from the Buxton School fund (BSF). • The board could author- ize a loan from the BSF with a specific timeline for repay- ment. • The board could author- ize a loan from the BSF to be repaid at such time as S TRASSEL ’ S A UTO R EPAIR & H YDRAULIC H OSES 2-4-6 S PIRAL W IRE F LANGE H EAD • S UCTION H OSES A DAPTORS - 3/16” TO 2” B ULK O IL P RODUCTS 276 S UNSET , B ANKS 503-324-9808 SUNSET LAUNDRY Wash…$1.00 Dry…25¢ 180 S. Main St. Banks, Oregon Ye Olde Dingheiser Pub & Restaurant VISA - MC - ATM Access COCKTAILS • BEER • WINE FOOD, KEGS & ICE TO GO Lunch & Dinner Daily 11:00 am – Closing Breakfast Sat-Sun 9 am - Noon BINGO SUNDAYS 5-8 PM CASH PRIZES!! All Lottery Games CLOSED MONDAYS 47100 NW Sunset Hwy. Manning • 324-4848 the district reaches a specif- ic excess ending fund bal- ance, such as 10 percent of the operating expenses. McGlasson proposed using $65,350 from the BSF, utilizing one of the funding options above, to complete the building and create an indoor facility that could be used for wrestling, volleyball, basketball and other indoor recreational activities, including small com- petitions. The facility would in- clude an upgraded floor sur- face, Masonite lower wall cov- ering, portable bleachers, a stereo system and a score- board. Alley told the board that he had an additional $125,000 of donated labor and materials ready to begin work on com- pleting the building, but that sources of additional donations were unavailable. Kelly said that the only way that he would support expendi- ture from the BSF would be as a loan, that the board “cannot be [a good] steward of the com- munity unless the money from the sale of assets is used to fill a temporary need.” He empha- sized that the BSF should not be jeopardized as these funds were intended to serve as seed money for future needs. Kelly said that he recognized the need for the facility, but felt the district should establish a precedent that any money ex- pended from the fund be re- paid. Willis Meeuwsen countered that the board could make a strong statement to the effect that other volunteer groups should not begin a building with donations and expect to be bailed out by the board when they were unable to raise the necessary money. He said that each project would have to be evaluated on its own merit. Meeuwsen added that longtime board members – such as him- self, Kelly and Joe Evers – should not be able to dictate the actions of future board members. With the expenditure of $65,350, Meeuwsen said, the district would acquire a facility that will be valued in excess of $300,000, which would be a good use of the BSF for a proj- ect that was not in opposition to the board’s intent for the BSF. Further, he said, that the ex- pense from the fund should not have to be repaid and should be considered as an invest- ment. Duane Lundsten, the newest member of the board, indicated a willingness to identify the building as a capitol project. He said that the addition of a great facility to the district was well worth the reduction of a fund that would total $367,438 in 2004 when the balloon pay- ment is received (as required under the current contract). Joe Evers echoed Kelly’s concern about the potential for leakage from the BSF. Doug Nordholm, exercising considerable skill as board chair in moderating the discus- sion, supported the opinions of Lundsten and Meeuwsen and attempted to separate the is- sues of defining the use of the funds from the expense of com- pleting the building. “Doing nothing is irresponsible as well,” Nordholm said in re- sponse to Kelly’s repeated statement that he would be un- able to justify his actions to community members unless the expenditure from the BSF was treated as a loan. Finally, the board unani- mously accepted two resolu- tions establishing a Capitol Projects Fund with the pro- ceeds from the sale of the Bux- ton School and loaning $65,350 from the Capitol Pro- jects Fund for completion of the recreation building, to be repaid over the next five years. Audit Report Roger Noah and Gloria Mackey from Jones and Roth presented the annual audit of the 2002-2003 books to the board. Noah told the board that this would be the last audit to parallel the format of past au- dits. Next year the audit will be performed under a new stan- dard required by the state. Noah directed board attention to the ending cash balance of $1,288. Because the balance included the final payment of $175,000 for the state loan and a $720,000 reduction in antici- pated revenues, that the cash balance was “tight”, but still positive. McGlasson explained that the positive ending fund balance was the result of re- ducing expenditures by $393,000. Noah told the board that the district was in full compliance with all state and federal ac- counting practices with one mi- nor exception. The district did not report in the approved budget the unexpected receipt of $78,000 of grant funds. This has been reported to the state as required but, since the dis- trict had received all of the money that it spent, it will be noted as an accounting excep- tion. Next year’s audit will be more expensive, Mackey told the board, because of the con- version to the new method. Since the board is in the last group of state funded entities that are required to convert to the new system, there is a cer- tain level of experience in per- forming the conversion that should make it a smooth transi- tion. Though she called the re- quirement “another unfunded mandate,” Mackey told the board that the new statements more clearly show the relation- ship between taxes assessed and expenditures and, “…in the long run, will be more beneficial for everyone.” In other business the board: • Thanked Julie and Chuck Bradford for their donation of $5,000, which will be matched by Intel. The Bradfords have moved to Beijing for a new as- signment. • Approved the 2003-2004 NWRESD resolution plan. • Received notice that the district is in compliance with federal law as required. • Heard that the district of- fice, high school, junior high and community gym have been re-keyed in order to increase security. New keys have been issued that cannot be duplicat- ed easily. • Heard that the district has an adequate number of instruc- tional hours to meet the state standard, at this time.
