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District finance report: $2.75 million IRS rebate, health trust refund and other one‑time revenues could restore reserves; staff recommends moving $2M to CIP
Summary
Finance director and superintendent reported unexpected or late-year revenues — including a $2.75 million IRS rebate tied to Boardwalk geothermal, a $619,600 health-trust refund to the district, a $184,000 NSTAR energy rebate and stronger investment income — and proposed using part of the receipts to shore up capital reserves.
Sherry, the district’s director of finance, reported a materially stronger-than-expected third-quarter financial position driven largely by one-time or late-arriving revenues and rebates.
Sherry told the committee the district expects an IRS rebate of $2,750,000 related to the Boardwalk campus geothermal well system, pending receipt of an official treasury payment. She also said the district will receive a health insurance trust refund; the district’s share is $619,600, with the town receiving about $180,400. The district already received an energy rebate of $184,000 from NSTAR and projects about $395,000 in additional investment income compared with budget.
“By May, we are supposed to be receiving an IRS rebate check in the amount of 2,750,000.00 for the geothermal well system at the Boardwalk campus,” Sherry said. She added the health trust refund is expected to be processed by the trust this week and will be recorded via journal entries consistent with DESE guidance because the expense was incurred in FY25.
Sherry recommended the committee vote in June, after the funds clear, to move $2,000,000 of the IRS rebate into the district’s capital (CIP) revolving fund to avoid breaching the district’s five-percent limit on excess and deficiency (E&D) balances. The recommendation is intended to preserve flexibility for upcoming capital needs, including a projected high‑school rooftop project that administrators estimate could exceed $4 million.
The finance report also described projections for increased circuit breaker and regional transportation reimbursements from the state, but Sherry cautioned those amounts were not final and would pass through different accounting mechanisms (circuit breaker funds flow into a designated account, she said).
Committee members asked about exposure to market volatility and about a sizable utilities overspend; Sherry and Peter said some utility pricing has been renegotiated and noted heating- and rooftop-related capital needs as priorities for the CIP account should the committee approve the transfer. Committee members thanked staff and legislators for recent advocacy that contributed to higher-than-expected state support.
