Craig Daily Press

Craig — Forces beyond Moffat County School District’s control could impact the financial future.

With more full-time enrollment and higher-than-expected county mineral lease revenue, the school district ended the 2008 fiscal year on a good note, district finance director Mark Rydberg said.

However, whether the school district will have smooth sailing could depend on several factors, including a judge’s decision and future energy industry activity.

The school district ended the 2008 fiscal year in June with an estimated $609,332 surplus.

“I think that it’s possible (that number) could be lower,” Rydberg said, adding that additional year-end accounting entries, including teacher salaries, could reduce the surplus by $150,000 to $200,000.

Still, that would leave about $400,000 in additional funds for the school district.

The majority of the more than $600,000 surplus comes from county mineral lease dollars. This year, the school district received $687,317, or about $430,000 more than budgeted, according to district records.

Rydberg said he is planning on those numbers going down next year, budgeting for $400,000 in mineral lease dollars for the next fiscal year.

That number matches the estimates produced by Jeff Comstock, Moffat County Natural Resources Department director.

In a letter addressed to Rydberg, Comstock and Dan Davidson, Museum of Northwest Colorado director, explained why mineral lease revenue is difficult to estimate.

“Mineral lease and royalty revenues from Moffat County-owned minerals are some of the most volatile and unpredictable revenues Moffat County and its associated taxing districts receive,” they said.

New rules passed by the general assembly last year —requiring tighter regulations on wildlife preservation and public health on drilling operations — have caused two major companies operating in Moffat County to decrease their operating budget for the 2008-09 year, they said.

Still, a drop in mineral lease funds isn’t Rydberg’s main concern, he said.

“The strongest strength of our school district is that we have a healthy reserve,” he said, adding that the district aims to maintain 30 percent of its operating expenses in a reserve fund.

“We’re going to get by,” Rydberg said, even if the school district’s mineral lease revenue tops out at $200,000 next year, or about one-third of what the district received this year.

“The thing that really worries me is what is up in the legislature and in the courts,” Rydberg said.

Each year, the school district receives about $500,000 in funds generated by a mil levy stabilization passed by the Legislature in 2007. The action, also known as a freeze, prevents mil levies on property taxes from changing for school districts, including those for whom the mil levy would normally drop. According to the 1992 School Finance Act, school districts statewide are guaranteed funding, which is provided by the state and local tax revenue.

The freeze prevents the mil levys in some districts from dropping, thereby saving the state money.

Recently, several school programs funded by the state have gone into effect, including adding more slots to the Colorado Preschool Program and beginning to phase in all-day kindergarten programs.

“It’s not off mark to say that those monies for those programs were freed up in part because of the mil stabilization,” Rydberg said.

The school district already has budgeted for these programs, he said, and has hired employees to staff them.

“And, if those monies (resulting from the mil levy stabilization) go away, the board will have some tough decisions on what to do,” Rydberg said.