Albany board reallocates year‑end fund balance, amends tax‑certiorari and capital reserves

The City School District of Albany Board of Education on June 4 approved an amended year‑end fund balance transfer, reallocating surplus operating fund dollars into designated reserves.

District finance staff told the board the year‑end estimate was higher than earlier projections and moved to return excess above the 4% undesignated fund balance into reserve accounts. Board discussion focused on how much to hold in the tax certiorari reserve (set aside to cover potential successful tax challenges or payments) versus the new capital reserve established last year for future projects.

After discussion, a board member moved to amend the proposal on the floor: reduce the deposit into the tax certiorari reserve to $1.25 million and direct $2.0 million into the capital reserve; the board approved the amended resolution. The superintendent explained the district uses the tax certiorari reserve to avoid needing to pay large refunds from the general fund if a long‑running property payment dispute is resolved against the district. Finance staff noted that sums placed in a tax certiorari reserve are subject to a three‑year rotation back to the general fund if not used.

Board members debated the tradeoffs: some preferred greater caution for tax certiorari exposure, others preferred shifting more into capital to support planned facilities work. The amendment was approved and the chair announced the motion passed.

The board recorded the action as an approval of the amended fund balance transfer; detailed dollar amounts and the final board vote were recorded during the meeting. Staff said any additional surplus discovered after the audit could be added to the capital reserve.