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Cohoes district borrowing comes in below budgeted rate; reserve recommendation expected in July
Summary
Officials told the board five bids on long-term borrowing produced an interest rate under 3.5%, below the 4.5% budgeted rate; staff will return with reserve funding recommendations in July and auditors will complete the financial-stage work in August.
District staff told the Board of Education on June 11 that long-term borrowing produced five bids and an interest rate that came in “under 3 and a half percent,” below the 4.5% the district had budgeted.
Stacy, a district staff member who presented the finance update, said the result “represents our strong financial standing.” She also told the board staff will return in July with recommendations to fund reserve accounts for the 2024–25 school year, with a focus on TRS funding and related items.
Stacy updated the board on the audit schedule: auditors identified as MMB completed internal-controls testing in May and will return in mid-August to complete the financial portion of the audit. She said Michael Wolf’s team will conduct a risk assessment for 2024–25 next week; that work follows completion of the 2023–24 audit work.
Stacy also said changes to accounting standards for compensated absences have introduced a new factor: a “sick bank” that will affect calculations of liabilities. She said she has been waiting for final guidance to calculate the compensated-absence liability and will present reserve recommendations in July.
These items were presented as informational updates; the board did not take formal action on borrowing or reserves at the June 11 meeting.
