Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance Reserves topic
No spam. Unsubscribe anytime.
Board reviews May treasurer's report and approves estimated reserve transfers; capital reserve partly spent in 2023-24
Summary
The board received the May treasurer's report, heard that short-term borrowing was used to support capital cash flow, and approved estimated reserve transfers required before the 2024-25 audit; the district used $10,000,000 from its capital reserve for a 2023 project.
The Webster Central School District Board of Education reviewed the May treasurer's report and approved estimated reserve transfers during its July 8 meeting.
Mr. Freeman (district official) presented the May report, saying the district is "continuing to do very well on our investment strategy" and that it is working with six banks to maximize rates. He told the board that the district signed short-term borrowing paperwork this week to increase cash flow for the capital project because high investment interest rates have changed cash-flow planning.
The board also approved the district's required estimated reserve transfers, a pre-audit procedure under State Education Department (SED) regulations. The administration told the board the capital reserve is fully funded and therefore no longer available for additional contributions; the district drew $10,000,000 from the capital reserve in 2023-24 to pay for an approved capital project. The administration said the district ranked 16th of 17 Monroe County districts in reserves as a percentage of operating expenditures in 2023-24; it was 14th the prior year.
Board members asked clarifying questions about cyber insurance and other reserves. Administration explained the district is building a self-insured cybersecurity reserve because commercial insurers are reducing coverage or raising premiums after costly incidents elsewhere. The administration said the final, audited reserve figures will be available in August after the auditors complete the annual audit.
Motion to approve the estimated reserve transfers was moved by Linda DeGardi, seconded by Michelle, and approved by voice vote.
The board was given additional context about the capital reserve's 10-year reauthorization process; administration said the next reauthorization vote would be in 2027. Specific dollar amounts for proposed transfers (other than the $10,000,000 draw already spent in 2023-24) were not itemized on the public record at the meeting.
