Middletown board approves increase to capital reserve, adopts financial memorandum

The Middletown City School District Board of Education voted unanimously Thursday to adopt a financial memorandum that increases the district's capital reserve to $12,000,000 and makes additional reserve allocations and routine financial approvals.

School officials said the increase is intended to ensure funding for upcoming capital projects and to maintain the district's credit standing. "we are putting aside, $12,000,000 in the, capital reserve, and that will allow us to be able to fund capital projects going forward," Dr. Connell said when the board discussed the measure. He also said the memorandum includes roughly $1 million for TRS and ERS reserves to keep the district liquid while planning for future obligations.

The board asked for clarification about the change. Board member Moore noted the district's capital reserve was already at $8,000,000 and the action increases it to $12,000,000 rather than creating a new $12,000,000 account. "So the public understand is not that we just had a $12,000,000 into a new reserve account. It's already at 8. We're just increasing it to 12. Correct?" Moore asked. Dr. Connell confirmed the increase.

Acting Superintendent Adoma and board members stressed the fiscal rationale: maintaining healthy reserves, they said, supports a strong credit rating and lowers future borrowing costs for taxpayers. The motion to approve the financial memorandum (listed in the board agenda as financial memorandum 10 d, numbers 1'9) passed 8'0.

The financial memorandum was considered alongside other consent and personnel items on the agenda; none of the members present opposed the measure. The board's vote advances the district's planning for capital work in the coming year and formalizes the reserve allocations reported during the meeting.

Board documents and the final minutes will be posted on the district's website after the meeting.