Finance director says 10% reserve is reasonable; board hears estimates for Manchester school district
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Summary
Finance staff recounted auditor guidance that a reserve around 10% of the district budget is reasonable; board members discussed earlier comments suggesting 15% as a conservative benchmark and reviewed current and projected reserve totals.
The Manchester School Committee on March 24, 2025, heard from the district finance director that an auditor advised a reserve target of "at least 10%" for a district of Manchester's size. The finance director, identified in the meeting as Karen, told the committee she had discussed the question with the auditor and that 10% "would be somewhere in the area of what she would expect."
Committee members discussed how that percentage translates into dollar amounts for the district. The finance director said the district currently has approximately $25 million in reserves and, depending on budget actions and the planned use of $4.5 million, could finish the year with about $20 million. Board members noted previous guidance that 15% is considered a comfortable upper benchmark by some financial advisers and bonding counsel.
No formal budget decision was made at the March 24 meeting; members said they will continue to monitor reserves as part of budget and finance work. Committee members also urged clearer public explanations of reserve policy and said they expected follow-up materials from the finance office and treasurer for future meetings.
