NATCHEZ — The Natchez-Adams School District’s 16th section fund balance was $18,644,880 on Sept. 30, which is approximately $100,000 lower than the district’s goal.

District investment managers Smith, Shellnut and Wilson of Madison presented the last quarterly report to the school board Tuesday. A company spokesman said the district is in good shape, but with interest rates looking to increase, the company will be looking for opportunities to raise returns.

The portfolio’s yield was at 1.95 percent, which is up compared to what the U.S. Treasury yield would have been at 1.01 percent.

The fund is up from $18,193,507 on Sept. 20, 2013. The company became the district’s financial manager about 4 years ago.

Some of the interest gains on the fund are sent to the district each year to help pay bonds. While the district could use the funds to help with building a new school, Superintendent Fred Butcher said it would be at a loss.

Much of the money is in funds that have not matured, he said. In addition, Butcher said the district should not mortgage the future.

“When you are looking at something like a school project, it’s something you will be paying on for 20 years,” he said. “During that time, if something went haywire — and it would — you would have nothing to fall back on.”

The district is seeking to potentially build a new high school if funding can be obtained. Natchez High School was built in 1961, and the open layout poses security risks, district officials have said.

Sixteenth section comprises of trust land, vested in the state of Mississippi, to support public education. The land is leased for mineral and agricultural purposes.

In other news, Schneider Electric presented it could potentially save $150,000 annually on energy costs in the district.

The district is currently spending $729,138 on electricity, with the largest energy drain being Natchez High School at $178,186, or $1.54 per square foot.

If Schneider is brought on board and its engineers walk through the district, they will lock in a guaranteed annual savings that will pay for the project cost.

If the utility savings do not perform up to the guarantee, Schneider is obligated to foot the costs to make up the difference between actual savings and the guarantee mark.

Schneider has worked in several Mississippi school districts, including Biloxi, where it guaranteed an annual savings of $244,314; and Yazoo County, where the savings were projected to be $92,777.

Butcher said if the district did nothing but update its HVAC units, it would be helpful in saving money on energy, maintenance costs and also lower the amount of noise in the classrooms.

Butcher said the district would bring the idea to financial manager Tony Gaylor of Chambers & Gaylor in Jackson, to see if the savings could potentially help with building a school.