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CFO details reserve funds, underfunded liability and proposes 2026 capital reserve proposition
Summary
Dr. Gonzales reviewed reserve fund types and balances, said the liability reserve is about $1.5M short against a ~$3M claim, and proposed a voter proposition in 2026 to create an approximately $10M capital reserve to fund future projects.
Dr. Gonzales, the district’s finance lead, gave a briefing on Nov. 18 about reserve fund management and the role reserves play in smoothing spikes in the general fund and improving bond ratings.
He explained the variety of reserve types used by school districts, the legal rules for creating and dissolving them, and current Rome balances. He said the district’s unemployment reserve is overfunded by about $600,000 and can be used over coming years; by contrast the liability reserve is underfunded by about $1.5 million relative to a pending claim the CFO estimated could be about $3 million.
To address long‑term capital needs, Gonzales proposed placing a proposition before voters in 2026 to establish a new capital reserve with an approximate authorization of $10,000,000; he recommended rolling remaining funds from prior capital reserves into the new reserve if voters approve. He suggested budgeting incremental contributions to the liability reserve (about $500,000 annually over several years) to close the shortfall and said he does not recommend transferring funds between reserves at this time.
Board members confirmed the external audit and committee schedules are posted and available; Gonzales and committee members described forthcoming finance reviews and the importance of reserves for bond ratings and fiscal stability.
