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Policy committee backs changing general fund target to a 10%–15% range
Summary
Waunakee Community School District policy committee agreed to send to the full board a revision that defines a 10%–15% general fund balance range; staff said the change reflects current reserves (about 11%) and would help debt-rating clarity while separate contingency goals must also be addressed.
The Waunakee Community School District Policy Committee voted to forward a proposed change to the district’s general fund balance policy that would specify a target range of 10% to 15% rather than a fixed 15% goal.
The change aims to align the district’s written policy with current reserves and provide clearer signals to external reviewers. Committee presenters said the district’s most recent publicly shared annual report showed an approximate 11% fund balance, below the existing 15% figure, and that rating agencies asked about the board’s intentions during borrowing for referendum funds.
Steve (staff member) told the committee the 15% number was a long-standing recommendation and that fund-balance norms vary by district: “There are districts with way less than 10. There's districts that are like 25% and above.” He said a 10% floor would give the board a minimum target while keeping 15% as an upper goal.
Committee discussion flagged that the fund-balance target is closely linked to the district’s contingency reserve. Presenters said the district currently sets aside $100,000 annually for contingencies, a figure they described as unchanged for more than 25 years and “no longer really reflective of the type of risks that can happen in any 1 year.” They proposed a multi-year goal to build contingency to about $500,000 so that the contingency and fund-balance goals support one another.
Committee members asked whether current budgeting and forecasts make the 10% floor achievable; staff said the contingency and fund-balance workstreams must proceed together, because legal bills and individual-student costs have recently used the contingency.
The committee chair moved to send the policy revision to the full board for consideration; members voted to forward the item.
Next steps: the proposed 10%–15% range will appear on the full board agenda for formal adoption and will be considered alongside proposed contingency adjustments in upcoming budget discussions.
