County may crack down on school district spending
 
By Jim Seckler
Mohave Daily News
 
KINGMAN -- The Mohave County Board of Supervisors will hold a special meeting Wednesday to discuss changing a line of credit agreement involving the Colorado City Unified School District.

The county and Wells Fargo entered into an agreement in 2000 for a line of credit with the school district.

Under discussion today is amending the agreement to convert the revolving line of credit to a non-revolving line of credit, Chief Civil Deputy County Attorney Deborah Herbert said.

That would mean any non-restricted money would go first to pay off the line of credit, which currently is $958,000.

Non-restricted funding is money raised from sources such as property taxes for the school district. Restricted funding is federal or state grants specifically earmarked for district.

Herbert said Wells Fargo believes the school district will not pay off its line of credit by June 30, 2005 when the agreement expires.

A non-revolving line of credit would not allow the school district to re-borrow additional money without paying off the existing line of credit first.

The Arizona School Risk Retention Trust would oversee the repayment of the line of credit by the school district.

The trust provides an insurance pool for 244 school districts in the state, covering 700,000 students.

Colorado City, a community of about 7,000 located on the Arizona/Utah border, is home to a polygamous sect called the Fundamentalist Church of Jesus Christ of Latter Day Saints.

National attention has focused on reports of arranged marriages of underage girls to married church leaders in the polygamous community.

The school district has about 411 students from kindergarten to high school at its three schools.

Reports of improper spending by the school district have surfaced.

The supervisors will meet at 9 a.m. at the board meeting room at 809 Beale Street in Kingman.
 
mohavedailynews.com
Originally published December 22, 2004
 
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