Board hears business offices fund-balance report and approves reserve recommendations to cover insurance and pension risk

The districts business office presented an end-of-year fund-balance report and recommended establishing or increasing several reserves to manage rising insurance deductibles, potential property losses and pension-rate volatility.

Rene (business official) told the board the district closed the fiscal year with roughly $11 million in fund balance and projected modest year-over-year growth. He said interest income and reimbursements (FEMA, remaining federal COVID funds) contributed to the surplus but emphasized the need to hold prudent reserves. "This would be almost fiscally irresponsible not to fund" an insurance reserve given recent insurance-deduction and property-loss trends, he said, and estimated the districts recommended insurance reserve would likely be "in the range of about $700,000" when the books are closed.

Rene reviewed the purpose of unassigned fund balance (the Office of the State Comptroller allows up to 4 percent of next years budget), and explained other reserve types (capital reserve, TRS/ERS reserves, liability reserve) used for long-range financial planning and to smooth budget impacts from sudden cost increases.

The board subsequently approved the business items that included fund reservations and other end-of-year actions as part of the consent agenda; voice votes recorded "Aye." Administrators noted the district is planning a capital referendum and wants to maintain flexibility while preserving reserves for unanticipated large losses.

Next steps: final reserve funding levels will be set at fiscal closeout and reported to the board; staff will proceed with the business-item approvals already adopted in the consent agenda.