Laconia council approves $757,000 to cover school insurance assessment and transfers $400,000 to capital reserve

The Laconia City Council on Nov. 10 approved a $757,000 supplemental appropriation to cover a special assessment levied against the Laconia School Department and separately authorized the transfer of $400,000 of FY2025 fund balance into the district—s capital reserve funds.

Diane Clary, business administrator for the school district, told the council that SchoolCare, the schools— insurance pool, "used up all the reserves and went into the negative $4,900,000," producing an assessment allocated to members by percentage. "Our percentage was 2.9 of their full business percent," Clary said, and the district—s assessment came as an unbudgeted surprise.

Clary said the school requested using unencumbered FY25 fund balance to pay part of the assessment and cover the immediate shortfall rather than issue debt. On the separate item, Clary explained the requested $400,000 transfer would rebuild a depleted facilities reserve and contribute to the planned high-school turf project.

Councilors asked for additional detail on fund balances. Councilor Soucy requested a staff summary of reserve accounts to be provided through the city manager for the next meeting; Clary agreed to provide that information.

Council action: after waiving full readings, the council conducted second readings and approved both measures. The supplemental appropriation (Resolution 2025-33) passed 6-0. The transfer to capital reserves (Resolution 2025-34) also passed 6-0.

What happens next: Council and school staff will account for the appropriation in the city—s fiscal records. Councilors asked staff to return with a clearer reserve-account breakdown at a subsequent meeting so the public and council can see how the funds were applied and how future reimbursements from the pool would be handled.