Pilot Point school trustees have unanimously approved a resolution to honor contractual agreements with staff and to end the district’s financial crisis.

For more than three years, the district has been in a state of financial exigency, which allowed it to take cost-cutting measures, such as breaking contractual agreements. The move was brought on by a November 2006 deficit of $800,000 caused by a decrease in student enrollment, overstaffing, state funding cuts and bookkeeping errors.

In recent years, the district’s finances have improved and school board members said they felt that it was time to forego the financial exigency declaration.

“Financially, we’re in a much better state than the district was before,” board President Larry Smith said.

Within recent years and with the help of the administration and a new superintendent brought on in 2007, Pilot Point has restored its financial credibility and stability, Smith said.

For three straight years, the district has approved balanced budgets. A local property tax rate increase approved by voters in 2008 has added additional money to fund balance reserves — the savings a district carries from year to year — as well as pay raises for staff and additional money to cover increased operating costs.

A recent audit revealed that the district has made good financial progress. Another sign that the district’s finances are improving is the recent announcement that Fitch Ratings upgraded the district’s rating from “BBB” to “BBB+” on about $19 million in outstanding school building bonds.

Superintendent Glenn Barber said he’s pleased and thanked those who stayed with the district and continued to work hard even in the face of a financial crisis.

Smith said the district plans to continue increasing its fund balance, which in turn will make things better for the district as a whole.

“We’re back to doing what we should be doing, and that’s educating our kids and not having our teachers worried about their contracts,” Smith said. “I just think everyone, the administrators and the board and especially the employees feel a lot better. There’s not as much financial pressure than it was in the past.”

BRITNEY TABOR can be reached at 940-566-6876. Her e-mail address is btabor@dentonrc.com.

IN OTHER ACTION

In other news in the Pilot Point school district:

* Chairs, desks and kitchen equipment are being cleared out of the district’s Gee School to be auctioned. Asbestos abatement is set to begin Jan. 4 on the facility, with demolition to start thereafter. Barber said that weather permitting, the building will be completely removed by Feb. 5.

* The 2010 graduation for Pilot Point High School seniors has been moved to the Stonebriar Community Church in Frisco. Graduation is May 21.