School district hits money troubles
 Colorado City has maxed credit line of $900,000
 
Staff and wire reports
The Spectrum
 
KINGMAN, Ariz. -- Checks from the Colorado City Unified School District began bouncing Oct. 18, a top Mohave County school official said.

The district's line of credit with Wells Fargo Bank was frozen Monday, when there were no funds to pay district employees, said Mohave County School Superintendent Mike File.

The district maxed its line of credit some time ago, File said, a line of credit totaling approximately $900,000.

File signs checks for all public schools in Mohave County except for the Kingman Unified School District and charter schools.

"They (the Colorado City district) have no money in their cash treasurer's account," File was quoted as saying in the Kingman Daily Miner.

Debra Herbert of the Mohave County Attorney's Office civil division confirmed the district "has reached its credit limit."

"We're taking steps to try to increase the cash flow to try to receive advance distribution of state appropriations," said Alvin Barlow, the Colorado City district's superintendent.

Barlow said the district is also trying to expedite approval of federal projects and programs so federal funds can be released.

The district also is trying to increase the credit line with the bank.

The United Effort Plan is one of the biggest taxpayers in Colorado City because it owns most of the land. They haven't paid their tax bills yet, File said. However Herbert said that school property taxes are due Monday.

The lack of funds is affecting payroll checks for some 60 school district employees, including 40 teachers.

File said the district is having problems because it essentially did not balance its check book. As the superintendent of the Mohave County School, File said he audits and monitors the funds of the district.

When the district was maxed out on its credit, the superintendent knew they were in trouble and let it know.

"We don't want to baby-sit these people," File said.

The district then issued checks knowing there was no money.

Colorado City and neighboring Hildale, Utah, are heavily populated with members of the polygamist Fundamentalist Church of Jesus Christ of Latter-day Saints, a splinter offshoot of the mainline Church of Jesus Christ of Latter-day Saints, which disavowed polygamy in 1890 and excommunicates those who practice plural marriage.

Spectrum Reporter Rachel Olsen contributed to this story.
 
TheSpectrum.com
Originally published Thursday, October 28, 2004
 
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