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Finance chief reports $123.5 million in restricted reserves; board hears plan for capital, buses and electric-bus uncertainty
Summary
Assistant Superintendent Romeo Khalili reviewed the district’s reserve balances, explained how reserves lowered borrowing costs, and described options the board will consider for capital building and electric‑bus infrastructure funding.
Romeo Khalili, the district’s assistant superintendent for finance and administrative services, told the Greece Central School District Board of Education that the district entered the 2023–24 fiscal year with strong reserve fund balances and reported roughly $123,500,000 in restricted reserves as of the fiscal-year end.
Khalili said the district’s strong reserves have helped maintain a favorable credit rating and reduce borrowing costs. He told the board that recent bond issues benefitted from the district’s AA3 rating, lowering interest costs by roughly $355,000 on a $26 million 2021 issuance and roughly $550,000 on a $31 million 2022 issuance compared with similar‑sized borrowers with lower ratings.
Khalili walked the board through individual reserve balances and uses: workers’ compensation ($27.8 million) and unemployment reserves (about $21.6 million) are intentionally sizable because they are flexible and can be transferred with board approval within 60 days of the fiscal year end; the district’s insurance reserve was described as $9 million to cover claims and cyber exposures; the employee retirement system reserve holds about $29.3 million; the teacher retirement reserve is near its cap at about $9.8 million; building and bus reserves are lower and will require replenishment for upcoming capital needs.
Khalili said the district may ask voters to authorize a new capital building reserve (voter approval required) large enough to cover remaining building work after the LevelUp capital project and potential electric‑bus infrastructure costs. He told the board the district is still modeling figures but outlined a planning scenario that could require approximately $25–30 million for building local share and $20 million to begin electric‑bus purchases and infrastructure — a combined local need that could reach $45 million. He emphasized that the electric‑bus mandate and infrastructure costs remain uncertain and that the district will aim to preserve local taxpayers’ levy impacts through conservative planning.
Board members asked whether transferring funds from workers’ compensation and unemployment reserves would leave the district exposed; Khalili said the proposed transfers would maintain sufficient balances for operations. He also explained reserve mechanics, caps, and the need to reestablish new voter-approved reserves as older reserves are depleted. Khalili said food service fund balance declined modestly and noted state changes to allowable food-service reserve thresholds.
No formal vote was required; Khalili said staff will return with more detailed proposals and timing for voter action if needed.
