East Kingston finance report: projected $27,546 year-end fund balance; limited options for use

The East Kingston School District business office reported a projected fund balance of $27,546 at the end of the fiscal year after accounting for April encumbrances and estimated investment earnings.

Business/finance staff Miss Milan told the board that at the end of last month the district had remaining expenses of $26,267. After adding encumbrances for supplies and facilities, the district spent an additional $6,721 during the month, leaving $19,546 in remaining expendable funds at that point. The district is projecting $8,000 more in revenue than planned from investment earnings, which would raise the projected fund balance to $27,546.

Board members asked whether that surplus could be moved into a trust fund or otherwise retained for future use. Miss Milan responded: "You cannot put it into a trust fund. The only way to put money into a trust fund is having the warrant that people have to vote on that." She explained that, unless the board obtains voter authorization via a warrant article, the typical options are (1) return the surplus to taxpayers through the tax-rate calculation, or (2) pre-authorize a project that can be completed before June 30 by securing quotes and creating a purchase order prior to year end.

Miss Milan said the district would present any proposed use of end-of-year funds to the board for a motion and approval. If no board action is taken, the surplus would reduce the tax rate as part of the standard municipal tax-rate calculation rather than being distributed directly as a refund to taxpayers.

Clarifying figures from the business report: remaining expense prior to month activity: $26,267; additional month spending: $6,721; remaining after spending: $19,546; projected additional revenue: $8,000; projected fund balance: $27,546.