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District presents long-range reserve plan and previews May capital authorization proposition
Summary
Acting clerk and assistant superintendent Mrs. Buzinski presented a working long-range reserve plan: key reserve balances, the effect of GASB 101 raising accrued liability to about $10.4 million, and a preview of a May Proposition 2 to expand capital authorization to $12.5 million that would be tax-neutral and partly funded by reserves.
Mrs. Buzinski, acting clerk and assistant superintendent, presented the district—s working long-range reserve plan, outlining reserve purposes, current balances and options for funding over the next budget cycle.
"This is a working document. It's our first look at some decisions that we need to make this upcoming year with our reserves," she said, walking the board through each restricted reserve and several fund-balance categories.
Key figures provided by staff include: an Employee Retirement System (ERS) reserve ending the year just over $1 million; a TRS subfund balance of about $1.7 million with a 2% per-year deposit limit under current rules; an increased accrued liability (due to GASB 101 implementation) of about $10.4 million, which affected the calculation for the employee-benefit accrued liability reserve; unemployment-insurance funds of just under $300,000; and a capital reserve established in 2021 with a current balance near $1.7 million and a voter authorization cap of $10 million.
Buzinski noted the district would present a possible voter proposition in May (referred to as Proposition 2) to increase capital authorization to $12.5 million. "The proposition number 2 will be $12,500,000 that's tax neutral to the voters," she said, explaining the plan envisioned $5 million in district funds (a combination of the capital reserve and other available funds) and about $3.2 million from other available sources. She emphasized the item was included as a reminder in the working document and not yet a finalized part of the plan.
The staff presentation explained the difference between restricted reserves and fund-balance categories, highlighted constraints (such as statutory limits on some reserve deposits) and described how bond premiums and debt-service funds can be applied across budget years to help stabilize tax-cap calculations.
If the board has no changes, staff said they will bring the reserve plan for formal adoption at the December meeting (Dec. 9) and post the final document on the district website for public review.
No formal motions on the reserve plan were recorded at this meeting.
