Financial Reserve Plan

INTENDED USE OF RESERVES
Reserve funds, like other savings plans, are mechanisms for accumulating cash for future capital outlays and other allowable purposes. The practice of planning ahead and systematically saving for capital acquisitions and other contingencies is considered prudent management. Savings for future capital needs can reduce or eliminate interest and other costs associated with debt issuances. Similarly, certain reserve funds can be utilized to help protect the budget against known risks (a potential lawsuit) or unknown risks (a major ice storm).
Most reserve funds are established to provide resources for an intended future use. An important concept to remember is that a reserve fund should be established with clear intent or plan in mind regarding the future purpose, use and, when appropriate, replenishment of funds from the reserve. Reserve funds should not be merely a “parking lot” for excess cash or fund balance. Local governments and school districts should balance the desirability of accumulating reserves for future needs with the obligation to make sure taxpayers are not overburdened by these practices. There should be a clear purpose or intent for reserve funds that aligns with statutory authorizations.
Each statute that authorizes a reserve fund sets forth a particular underlying purpose for the fund. For example, provisions of the General Municipal Law (the GML) and the Education Law allow municipalities and school districts, respectively, to establish capital reserves for future equipment purposes and capital improvements. The GML also authorizes the establishment of an employee benefit accrued liability reserve for the payment of the monetary value of accumulated, unused leave time to employees upon separation from service. Planning today and saving incrementally for expected future events can help mitigate the financial impact of major, nonrecurring or unforeseen expenditures on your annual operating budget. Establishing and funding allowable reserve funds for a clear purpose can help smooth out spokes in the annual budget and in the real property tax levy.
Source: Office of the New York State Comptroller-Local Management Guide for Reserves
http://www.osc.state.ny.us/localgov/pubs/lgmg/reservefunds.pdf

GENERAL FUND CAPITAL RESERVES:
Capital Reserve Funds are used to pay for the cost of any object or purpose for which bonds may be issued. The creation of a capital reserve fund requires voter authorization to establish the purpose of the reserve, the ultimate amounts, its probable term, and the source of the funds. Expenditures may be made from the reserve only for a specific purpose further authorized by the voters. These reserves are accounted for in the General Fund.
CAPITAL PROJECT RESERVE FUND – BUILDING
Voter Authorization 5/21/2019 (A87895)
Term 10 Years
Ultimate Limit $3,000,000 (fully funded)
Source of funds Annual budget, surplus funds
Balance June 30, 2024: $890,491.81
Deposits - interest: $41,069.96
Expenditures: $0.00
Balance June 30, 2025: $931,561.77
The 2019 Building Capital Reserve Fund was established to allow the District to set funds aside to finance the cost of construction and reconstruction of district facilities. Facilities planning is a continuous process that requires constant monitoring and oversight. The Capital Project Reserve Funds support the financing requirements for future capital improvement needs with the intent to minimize the impact on taxpayers as much as practically possible.
Funding goal: The reserve has been fully funded at $3,000,000.00 of which $870,622.00 remains plus
interest
Projected Need: $931,561.77 to partially fund the local share of a future capital project

CAPITAL PROJECT RESERVE FUND – BUILDING
Voter Authorization 5/17/2022 (A87896)
Term 10 Years
Ultimate Limit $4,000,000 (fully funded)
Source of funds Annual budget, surplus funds
Balance June 30, 2024: $3,522,406.00
Deposits - interest: $141,728.06
Deposits - from surplus: $516,828.79
Expenditures: $0.00
Balance June 30, 2025: $4,180,962.85
The 2022 Building Capital Reserve Fund was established to allow the District to set funds aside to finance the cost of construction and reconstruction of district facilities. Facilities planning is a continuous process that requires constant monitoring and oversight. The Capital Project Reserve Funds support the financing requirements for future capital improvement needs with the intent to minimize the impact on taxpayers as much as practically possible.
Funding goal: The reserve has been fully funded at $4,000,000.00 plus interest.
Projected Need: $4,180,962.85 to partially fund the local share of a future capital project

BUS PURCHASE RESERVE FUNDS
Voter Authorization 05/16/2017 (A87892)
Term 10 Years
Ultimate Limit $950,000 plus accrued interest (fully funded)
Source of Funds ERS Reserve Initial Deposit, Annual Budget, Surplus Funds
Balance June 30, 2024: $93,848.39
Deposits - interest: $3,847.51
Expenditures: $60,273.00
Transfer Out: $37,422.90
Balance June 30, 2025: $0.00
The Bus Purchase Reserve Funds were established to allow the District to set funds aside to finance the cost of transportation vehicles. This reserve has met the funding goal and is fully funded. On May 21, 2024 voters approved the purchase of one (1) new Chevrolet Suburban not to exceed the sum of $72,668.00 during the 2024-25 school year. On May 20, 2025, voters approved the transfer of $35,171 plus accrued interest to the new 2025 Transportation Vehicles Capital Reserve Fund (A87899).
Voter Authorization 05/16/2023 (A87897)
Term 10 Years
Ultimate Limit $950,000 plus accrued interest (fully funded)
Source of Funds Annual Budget, Surplus Funds
Balance June 30, 2024: $971,681.37
Deposits - interest: $44,814.44
Expenditures: $0.00
Balance June 30, 2025: $1,016,495.81
The Bus Purchase Reserve Funds were established to allow the District to set funds aside to finance the cost of transportation vehicles. This reserve has met the funding goal and is fully funded.
Projected Need: 2026-27 school year and following: approx. $1,016,495.81 towards bus replacements
Voter Authorization 05/20/2025 (A87899)
Term 10 Years
Ultimate Limit $950,000 plus accrued interest
Source of Funds Annual Budget, Surplus Funds
Balance June 30, 2024: $0.00
Transfers in: $87,422.90
Deposits - interest: $0.00
Deposits - from surplus: $799,999.02
Expenditures: $0.00
Balance June 30, 2025: $887,421.92