Good news on the school finance front

Kendra Lieb, MCS Business Manager. Photo courtesy Kendra Lieb

It is Kendra Lieb’s second year as Business Manager at Manchester Community Schools and it has been an eventful time for both the district and for Lieb personally.

During her tenure the district has seen a very detailed (and somewhat nerve racking) audit, and ended last school year with a higher than anticipated fund balance. This increase in fund balance (which can be loosely compared to a “savings account”) can be attributed in part to excellent financial management and the ability to refinance some of the outstanding bonds held by the district, to obtain a lower interest rate that will save the schools as much as $500,000 on bond repayment.

“This is an amazing accomplishment,” said interim Superintendent Kevin Upton.

Lieb credits careful oversight by the district financial planners, Baker Tilly, as they help her stay apprised of lowering interest rates and advise her on the best time to refinance. The bonds include the 2001 debt retirement for the new high school, a $35 million bond which will be repaid by 2031, and the more recent $2.8 million technology bond, that passed by just one vote in August 2014 and is scheduled to be repaid in 2024. With an extended replacement schedule for the technology, the money should actually last beyond the expected payment period.

“By being fiscally responsible, we will basically be able to make that money last for 10-12 years,” Lieb said. “That way, once we are no longer making those bond payments, the district will be in a better position.”

With the additional savings generated by the energy bond approved by the board two years ago, the district has already saved approximately $50,000, which can be put right back into educating our students, which is every school’s priority for spending.

School finance is a complex issue and there is always the specter of a state takeover or consolidation looming if the district’s fund balance, the amount of money a school district has left over at the end of a school year, is too low. Current state recommendations are a minimum of 10 percent of the district’s annual budget. Manchester’s total annual budget for the 2019-2020 year is $10 million; Lieb projects that Manchester will end this school year well above that level. But that does not mean the district’s worries are over.

“We are still right-sizing,” she explained. “We will need to make some tough decisions as enrollment continues to decline.”

By continuing to practice sound business management, however, the district will be able to look forward to more “good news” in the future.

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by Marsha Chartrand

Marsha Johnson Chartrand, a founder, writer, and copy editor with the Manchester Mirror, is a 50-year resident of Manchester. She has a long history of volunteer and community involvement.