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Budget sets aside funds for capital, PERS and unemployment reserves after years of deficit spending
Summary
The committee-approved budget creates a $500,000 capital reserve, a proposed PERS reserve funded by payroll assessment (~$338,000 projected) and maintains an unemployment reserve to cover potential claims; printing fund to be closed and balance transferred.
The Silver Falls budget proposal includes explicit, newly structured reserve accounts designed to reduce fiscal risk and fund deferred maintenance and retirement costs.
Administrators proposed and the committee approved the creation of a capital reserve fund with a planned initial transfer of $500,000 from the general fund. The capital reserve is being budgeted with appropriations so the district can spend on prioritized repairs or contracted capital work if needed; administration emphasized that unappropriated reserves are not normally accessible within the fiscal year without a disaster or extraordinary state permission.
A new PERS reserve fund (fund 6 40) was presented for future PERS liability mitigation. The administration proposed expensing a small percentage against payroll where that assessment would be recorded as revenue into the PERS reserve; finance staff projected about $338,000 could be deposited in the new reserve in 2025–26. Administrators framed this as best practice used by other districts to smooth PERS volatility in future biennia.
The budget also reflects a healthier position in the district’s unemployment/reduction-in-force account. After large reductions in prior years, administrators reported that recall lists and rehirings reduced anticipated unemployment claims; the proposed budget does not charge additional payroll for unemployment this year because projected reserves are sufficient to cover expected claims.
Administration recommended closing a small print-services fund (fund 6 30) and transferring its roughly $13,000 balance into the general fund to consolidate printing and enterprise costs that are now budgeted in the general fund.
Why it matters Dedicated reserves can make the district more resilient to swings in PERS rates, unexpected capital failures and the budgetary impacts of staffing changes. Administrators said the combined moves represent a shift from short-term crisis management toward multi-year fiscal planning.
Clarifying details - Capital reserve initial transfer proposed: $500,000. - Projected PERS reserve deposit: ~$338,000 (payroll-based assessment recorded as revenue into reserve fund). - Printing fund balance proposed to transfer: ~$13,000. - Unemployment reserve: administration reported current reserves sufficient to cover projected claims; no payroll charge proposed in 2025–26.
