The Athens City School Board was presented with a lean budget Thursday that shouldn’t cut into exiting programs or teacher units.

Chief Financial Officer Serena Owsley referred to the fiscal 2019 budget as “very conservative.” The board will have one more budget hearing Sept. 13.

Superintendent Dr. Trey Holladay said board members have known for the last two years they would have to tighten the budget because of debt created by the new high school. In October, the system will start paying just short of $2 million in annual installments toward a bond issue for the new school. Those payments will last 20 years.

According to the proposed budget, the system can anticipate $41.4 million in revenues from multiple sources, including property and sales tax, state revenues, federal funding and other sources. Keeping in line with last year’s conservative spending, expenditures for fiscal year 2019 are slated to be $40.5 million, with few improvement projects planned. If all goes as expected, the system will finish out 2019 with a balance of $5.6 million.

“Right now we are pretty confident we will have a balanced budget,” Holladay said. “All in all, it was a pretty neutral budget with few increases in spending and some decreases.”

He was particularly pleased that although the board has shored up spending in most areas, cuts did not include programs or personnel.

State funding

The amount of money a school system receives is based on the previous year’s average daily membership or ADM. The city had an ADM of 4,2779.9 students in 2018, which was slightly down because of losses to the virtual school program.

A reduction in students will mean less dollars from the state this year. The system anticipates an enrollment of 4,580 students this year, so state dollars tied to ADM will increase in 2020.

Expenses

At approximately 60 percent, instructional costs comprise the largest portion of the district’s expenses.

Currently, the system supports 245.49 teachers, who have an average of 12.44 years of teaching experience. Fifty-four percent of Athens teachers possess advanced degrees. A first-year teacher with a bachelor’s degree can expect to make $39,301, which includes a 2.5 percent school employee raise approved by the Alabama Legislature earlier this year.

A first-year assistant principal makes about $76,800 annually, with an elementary principal earning slightly more at $80,057. At the high school level, a first-year principal can expect to make $92,000.

Land sold

In other business, the board unanimously approved the sale of 7.81 acres of district owned land located in front of Athens Intermediate School to St. Paul’s Catholic Church for $257,000. The district will retain ownership of the road that leads up to AIS, and the church has agreed to allow the school to keep their sign in its current location.

According to Shane Black, attorney for the city of Athens, a restrictive covenant was included in the contract, preventing the church from building a school on the purchased land.

Holladay said the church may use the land for a parking lot or playground.

The board also briefly discussed the fate of the old middle school on Clinton Street, currently being used as a temporary high school.

Holladay made it clear the system had received no serious offers on the property, but confirmed he has had inquiries from a handful of interested buyers who have proposed either tearing down or repurposing the facility. He added it is likely the district will hold onto the property, given its prime location and potential for use again in the future. Annual utilities for the facility average around $185,000, but Holladay believes adjustments can be made to bring the bill closer to $60,000 per year.