Granite School District details $311 million in reserves, explains limits on use

Superintendent Horstley said Granite School District had approximately $311,000,000 in reserve funds as of June 30, 2024, and outlined what the district holds those funds for and what they may not be used to pay for.

Horstley said the reserves are legally required in some cases and that maintaining them helps protect the district’s bond rating and long-term financial stability. "The district is legally required to maintain certain levels of reserve funds for certain purposes. Saving funds for future needs reflects very prudent financial planning and helps save taxpayers money in the long run," he said.

The superintendent provided a breakdown of the district’s fund balance. He said the largest portion — 26.7% of the fund balance — is reserved for the district’s employee benefits program. "Granite School District is a self funded health insurance organization and in order to provide a sustainable benefits package for our employees, we're required to maintain a certain amount of money in reserves to make sure we can cover those expenditures," Horstley said. He added that a separate capital projects and debt service fund balance accounts for about 25% of the reserve funds and is legally restricted to capital projects and bond payments.

Horstley described the special purpose fund as money raised by the Granite Education Foundation, by district fundraising and fees, and funds restricted for specific uses such as school meals and prepaid inventory; he did not provide a percentage for that category. The district’s rainy day fund is about 11.4% of the general fund balance, and funds for planned projects account for roughly 9% of the overall fund balance. Horstley said planned projects include a second employee wellness center and additional technology upgrades.

He emphasized limits on using reserves for recurring costs. "It's important to understand that these funds cannot be used for ongoing costs such as increasing our employees' wages since there would be no dedicated ongoing funding source to sustain that type of expenditure," Horstley said.

Horstley also said the district keeps reserves to cover costs associated with new laws, including anticipated school safety requirements and changes to school fees, and noted that some smaller portions of reserves are held for other unanticipated future needs. "These funds are more than just numbers," he said, adding they help keep schools safe and programs running.

No motions, votes, or formal board actions were recorded in the transcript. The presentation was a standalone financial snapshot rather than a board decision or agenda item.