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Londonderry board retains $3.4M in fund balance, earmarks $2M toward district office project and returns $1.37M to taxpayers
Summary
The board voted 5–0 to retain $3.4 million in undesignated fund balance for FY25, earmarking $2.0 million for a prospective district office project with the town and returning roughly $1,369,678.74 to reduce the tax rate. The business administrator presented FY25 year‑end results showing stronger than expected revenue and lower spending.
The Londonderry School Board voted unanimously on Sept. 2 to retain $3.4 million in the district’s undesignated fund balance for fiscal year 2025, including an earmark of $2.0 million toward a district office project under discussion with the town. The board also authorized returning approximately $1,369,678.74 to taxpayers as part of the calculation used to set the 2025 tax rate.
Business Administrator Amity presented the district’s FY25 fourth‑quarter and year‑end numbers, reporting roughly $900,000 in unanticipated revenue (including additional special‑education aid, transportation aid and Medicaid reimbursement) and about $2.5 million below the approved budget on the expenditure side. Those results left the district with roughly $5.1 million in general fund equity before designations; RSA guidance discussed at the meeting limits the amount the district may retain in an undesignated fund balance to a percentage of net assessment.
Board members and the administration discussed using retained funds to avoid a bond for the district office and to reduce interest costs. The board chair described a plan to pair town contributions with district funds so the district could fund most of the project without a long bond that would increase interest costs for taxpayers. "If we can do the brunt of it and need less from the town, hopefully a million or under, we can have that repaid to them in 4 years, 5 years tops," a board member said.
The motion to retain $3,400,000 in undesignated fund balance for FY25 was moved and seconded, and the roll‑call vote was 5–0 in favor. When the board later needs to expend earmarked funds for the district office project, the board must hold a public hearing before authorizing use of those monies, per the RSA cited during the discussion.
Why it matters: The board’s choices about the unassigned fund balance influence short‑term tax rates and the district’s ability to finance capital projects without long‑term borrowing. Administrators said the funds came from stronger revenue and savings driven largely by staffing turnover and unfilled positions, higher interest income and certain one‑time grants and reimbursements.
