Board reviews year-end fund balance; staff recommends up to $3.16M transfer to insurance reserve

Amherst Central School District officials presented year-end fund balance projections and recommended a resolution to transfer up to $3,158,772 from the general fund into the district's reserve for insurance claims.

Mrs. Bazinski, who presented the fund-balance report, said the district's revenue budget was about $80.5 million, year-to-date revenues stood at roughly $76 million and staff expected about $6 million more (largely from state-aid attribution) that would bring projected revenues to about $82.5 million. On expenditures, Bazinski said the budget was approximately $81.67 million (with accounting notes that adjust some lines) and that June payroll and outstanding purchase orders account for a large part of projected June spending. "With those estimates," she said, "we're expecting our revenues to land at about $82.5 million, which is 1.8 or 1.9 million above our estimates."

Bazinski outlined recommendations for the $1.6 million net change she said remained after accounting for appropriated fund balance, carryover encumbrances and a planned $1 million capital transfer tied to a voter-approved proposition. Her recommended allocations included increasing the unappropriated fund balance to 4% of next year's budget (about $216,000), covering estimated carryover encumbrances and placing the remainder into the reserve for insurance claims. She explained the resolution under consideration would be an "up to" authorization prior to audit that staff could act on within 60 days of fiscal-year end.

Staff displayed proposed resolution language authorizing a transfer of up to $3,158,772 to the district's reserve for insurance claims. The presenter said the 3.158 million figure represented the maximum permitted under the plan, and that staff did not anticipate moving the full amount. A board member moved the resolution and the transcript records the start of the voting sequence, but the provided transcript does not include a final vote tally or recorded outcome.

Bazinski and other staff noted the rationale for the recommended insurance reserve placement included self-funded health-insurance exposure and a potential increase in retiree-related obligations; they also reiterated the district's plan to place $1 million toward a capital project approved by voters to make a heating-system project tax-neutral.

The transcript did not document a completed vote or formal implementation date for the recommended transfer. The resolution language was available on the meeting screen and staff said they were prepared to present a blank resolution for board approval prior to June 30 if the board agreed with the recommendation.