District's reserve fund provides stability

Valerie Truesdale
Superintendent of Schools

Published Saturday, October 3, 2009

Comments (0) |

Feeds |

Much has been written in recent weeks about the Beaufort County School District's budget. At Monday's County Council meeting, it was stated that the district received $8 million more than needed.

The district offers the following information:

In fiscal year 2008, the district received an unexpected increase in sales tax revenue of $7.8 million. However, in fiscal year 2008, the tax revenue sent to the district by the county was short $8.8 million. The net of the two does not equal a "windfall" of $8 million. In fact, it causes a shortfall of $1 million. This can be verified by the district's fiscal year 2008 audited financial statements posted online at www.beaufort.k12.sc.us.

In 2007, County Council appropriately admonished the district for having an insufficient fund balance and recommended that it be increased to be ready to open three new schools in 2010.

During the 2007-08 school year, careful management of resources, coupled with savings in energy, transportation and other operational areas, increased the fund balance by $11.9 million.

During planning for the fiscal year 2009 budget, a portion of the fund balance was approved by County Council to pay down debt to benefit taxpayers.

In June of this year, during planning for the fiscal year 2010 budget, County Council suggested that the school district not pay down debt and keep the fund balance strong. Council also approved a $171.4 million budget unanimously, with a projected $28 million fund balance.

After finalizing collections in August, the fund balance is now $31 million.

Why is a fund balance important? It protects the district from emergencies, unstable revenues, state budget cuts, county collections shortfalls and prepares us to open three schools next year.Measuring the current status of a fund balance without considering long-range plans is not prudent. The economic downturn has taught us that shortsighted financial management can lead to disaster.

A key measure used by bond rating agencies to set a credit rating is the size of the fund balance.

Why is a favorable bond credit rating important? Favorable bond credit ratings yield favorable interest rates, which equate to significant interest savings to taxpayers; it is very similar to an individual's "credit score." The Beaufort County School District has the second highest credit rating in the state.

Several months ago, we refinanced and issued new debt at a 1.39 percent interest rate, saving more than $1 million in interest over the life of the loan.

The recent sale of $62 million in long-term debt yielded an interest rate of 3.03 percent. Bond advisers estimate that a district with a lower credit rating would have paid additional interest between $930,000 and $2.2 million over the term of the loan.

We watch the markets carefully, managing resources to minimize interest cost. For instance, when the market was volatile last year, the school district issued a one-year note rather than long-term debt, yielding a savings to our taxpayers of more than $17.7 million over the life of the loan.

The school district is committed to the 19,600 students who depend upon us for stability of services. We will continue to focus on maintaining successful long-range financial, capital and debt management plans.

It truly takes all of us to support great schools. Great schools are a hallmark of great communities.

Email Article | Print Article | RSS

Feeds |

| Search the Archive

For the latest legislative news from Columbia, visit S.C. Politics today:

Letters to the Editor

Letter guidelines

Letters to the editor are welcome. Letters must be 250 words or less and signed with your first and last names. Include your street address and daytime telephone number so we can verify the letter before publication. You are limited to one letter per 30 days. Letters may be edited for length, style, grammar, taste and libel. All letters submitted become the property of The Island Packet and The Beaufort Gazette and may be republished in any format. The Packet and the Gazette do not publish endorsement letters on the editorial page. Thank you letters are published in the Monday Lowcountry Life section.

How to reach us

Mail: P.O. Box 5727, Hilton Head Island, SC 29938
Fax: 843-706-3070
Hand-delivered: 10 Buck Island Road, Bluffton or 1556 Salem Road, Beaufort
E-mail: letters@islandpacket.com or letters@beaufortgazette.com

Your Elected Officials

U.S. Congress

Sen. Lindsey Graham (R)
U.S. Senate, 290 Russell, Washington, DC 20510
Office: (202) 224-5972 Fax: (202) 224-1189
Sen. Jim DeMint (R)
U.S. Senate, 290 Russell, Washington, DC 20510
Office: (202) 224-6121 Fax: (202) 228-5143
Rep. Joe Wilson (R-District 2)
U.S. House, 212 Cannon, Washington, DC 20515
Office: (202) 225-2452 Fax: (202) 225-2455
Track S.C. officials in Congress

State Government

Gov. Mark Sanford (R)
Governor’s Office, State House, P.O. Box 12267, Columbia, S.C. 29211
Office: (803) 734-2100 Fax: (803) 734-5167
Senator Tom Davis(R-District 46)
P.O. Drawer 1107, Beaufort, 29901-1107
(843) 252-8583
602 Gressette Bldg., Columbia, 29201
Bus. (803) 212-6008
Rep. Curtis Brantley (D-District 122)
194 Bees Creek Rd., Ridgeland, 29936
(843) 726-5998
314D Blatt Bldg., Columbia, 29201
(803) 734-2965
Rep. Richard Chalk (R-District 123)
326C Blatt Building, Columbia, S.C. 29211-1867
Office: (803) 734-3067; Home: (843) 842-5985
15 Goldfinch Lane, Hilton Head Island, S.C. 29928
Rep. Shannon S. Erickson (R-District 124)
(843) 986-1090
306A Blatt Bldg., Columbia, 29201
(803) 734-3261
Rep. Bill Herbkersman (R-District 118)
P.O. Box 11867, Columbia, S.C. 29211
Office: (803) 734-3063; Home: (843) 757-5424
151 Gascoigne Bluff, Bluffton, S.C. 29910
Rep. Kenneth F. Hodges (D-District 121)
PO Drawer 355, Green Pond, 29446
(843) 525-9006 Home (843) 844-8756
434B Blatt Bldg., Columbia, 29201
(803) 734-3062

Beaufort County

Rick Caporale (R-District 1)
17 Salt Wind Way, Hilton Head Island, S.C. 29926
Office: 680-9999; fax: 681-6700
Steven Baer (R-District 2)
10 Heather Lane, Hilton Head Island, S.C. 29926
Office: 689-3570; fax: 689-3569
Stu Rodman (R-District 3)
27 Baynard Park, Hilton Head Island, S.C. 29928
Office: 363-470; fax: 363-6472
Weston J. Newton chairman (R-District 4)
P.O. Drawer 7049, Hilton Head Island, S.C. 29938
Office: 842-6111; fax: 706-9981
William McBride (D-District 5)
P.O. Box 77, St. Helena Island, SC 29920
Fax:(843)838-8303
Home:(843)838-2264
Gerald Dawson (D-District 6)
64-A Horace Dawsone Drive, Seabrook, SC 29940
Fax:(843)846-4738
Office:(843)846-4830
Paul Sommerville vice chairman (R-District 7)
1509 Pigeon Point Road, Beaufort, SC 29902
Fax:(843)379-7115
Office:(843)379-7114
Herbert N. Glaze (D-District 8)
P.O. Box 4053, Burton, SC 29903
Fax:(843)846-3601
Home:(843)846-2845
Brian Flewelling (R- District 9)
25 Petigru Drive, Beaufort, SC 29902
Fax:(843)379-9806
Office:(843)379-9805
Jerry Stewart (R-District 10)
11 Teaberry Lane, Bluffton, S.C. 29909
Office: 705-4753; fax: 705-4723
Laura Von Harten (D-District 11)
166 Fuller Parkway, Beaufort, SC 29902
Fax:(843)379-1380
Office:(843)379-1367

Beaufort County School District

District Office: 1300 King St., P.O. Drawer 309, Beaufort, SC 29902
Office: 322-2300; fax: 322-2371
Hilton Head Island office, 689-4635; fax: 689-4617

Beaufort County Board of Education members

Fred S. Washington chairman (District 11)
PO 325, 804 West Street, Beaufort, SC 29901
(C) 843-524-8404
Bob Arundell vice chairman (District 2)
198 Woodlake Villas, Hilton Head, S.C. 29926
Home: 681-8502; work: 7855-8040; fax: 785-3056;
Joan Deery (District 1)
5 old Fort Drive, Hilton Head, S.C. 29926
Home: 681-8968
Wayne Carbiener (District 3)
Home: 843-363-2113
Laura Bush (District 4)
P.O. Box 172, Bluffton, S.C. 29910
Home: 757-2638; fax: 757-2638
Michael F. Rivers, Sr. (District 5)
734 Seaside Road, St. Helena, SC 29920
(H) 843-838-2277
FAX 843-838-1192
Earl Campbell (District 6)
93 Bruce Smalls, Grays Hill, P.O. Box 768, Lobeco, SC 29931
(H) 843-846-4531
(C) 843-476-7512
FAX 843-846-1373
Jim Bequette (District 7)
4 Broomfield Lane 2532, Beaufort, SC 29907
(H/C) 843-263-8327
Herbert Burnes (District 8)
95 Pine Grove Road, Beaufort, SC 29906
(H) 843-846-445
(C) 843-263-2776
Ronald Speaks (District 9)
3121 Palomino Dr., Burton, SC 29906
(H) 843-525-1163
(W) 843-525-8277
FAX 843-525-1163
George Wilson (District 10)
20 Osprey Circle, Callawassie Island, S.C. 29909
Home: 987-1234; cell: 812-9870

City of Beaufort

Mayor Billy Keyserling
771 Ribaut Rd., Beaufort, SC 29902
(843) 986-2444 (Work)
(843) 521-2600 (Home)
Councilwoman Donnie Ann Beer
P.O. Box 1171, Beaufort, SC 29901
379-6099 (Home)
379-2750 (Work)
Councilman Gary Fordham
860 Ribaut Road, Beaufort, SC 29902
524-3334 (Home)
Councilman Mike Sutton
809 Craven St., Beaufort, SC 29902
252-5687
Councilman Mike McFee
2302 Wilson Dr. Beaufort, SC 29902
843-321-0556 (Work)
843-522-1528 (Home)

Town of Hilton Head Island

Town Hall: One Town Center Court, Hilton Head Island, SC 29928; 341-4600

Town Council

Mayor Thomas D. Peeples
4 Hartford Place, Hilton Head Island, SC 29928-3922
Home: 686-4138; office: 681-2600; fax: 689-3229
Bill Ferguson (Ward 1)
634 William Hilton Parkway, Hilton Head Island, SC 29928
Home: 686-2863
William Harkins (Ward 2)
3 Old Fort Lane Hilton Head Island, SC 29926
263-3261 - cell
Drew A. Laughlin (Ward 3)
5 McIntosh Road, Hilton Head Island, SC 29928
Home: 689-5723; work 689-5700; fax 689-9300
John Safay (Ward 4)
19 Starboard Tack, Hilton Head Island, SC 29928
Home: 785-4489; work: 785-4696; fax: 785-4696
George Williams (Ward 5)
8 Braddock Cove, Hilton Head Island, SC 29928
Home: 363-6601; fax: 363-6604
Ken S. Heitzke (Ward 6)
3 Audubon Place, Hilton Head Island, SC 29928
Home: 681-8182; fax: 681-9864