Board moves $33.12 million into insurance reserve, authorizes elementary generator replacements

The Carmel Central School District Board voted Oct. 7 to transfer $33,120,000 from an insurance liability account into the district’s insurance reserve after outside auditors concluded the amount should be treated as an asset rather than a liability.

Acting Superintendent explained that the auditors — a new firm retained by the board — found the previously held liability balance actually represents funds available to offset health‑insurance premium equivalents. The board approved dissolving the liability and moving the money into the insurance reserve; administration said roughly $1 million of that reserve is expected to be used in the 2026‑27 budget to reduce premium equivalents and thus lower taxpayer pressure in the coming year.

“Putting a million dollars in, even if we did it every year, we would have this for six years,” an administrator said, adding the board could replenish the reserve from year‑end fund balance as needed. Trustees debated the appropriate use and duration of the reserve but approved the transfer.

Separately, the board approved using approximately $235,000 from an unused capital account to replace emergency generators at the district’s three elementary schools. Trustees confirmed the vendor was selected through a procurement process and that the vendor is the district’s procured electrical contractor.

Both actions were approved by the board during the Oct. 7 meeting; administration said they would proceed with procurement and the planned use of the reserve in the upcoming budget.