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Board approves moving FY24 fund-balance surplus above $7.9M to capital projects
Summary
Finance staff recommended transferring any FY24 fund-balance increase above $7,900,000 to the capital projects fund to preserve a roughly 20% reserve and support the district's AA1 credit rating. The board approved the measure unanimously.
The board unanimously approved a motion authorizing transfer of any FY24 increase in the general-fund balance above $7,900,000 into the capital projects fund.
Tanya Crosby explained the district's recommendation: maintaining a fund-balance target supports liquidity, avoids tax-anticipation borrowing and helps preserve a strong credit rating. Crosby said local tax revenues exceeded budget and staff estimated "an excess of at least $17,000,000" at June 30. "My recommendation" Crosby said, "that will be 22.7% fund balance," though she recommended the board maintain a 20% operating target and shift the excess to capital projects for board-directed uses such as buses or HVAC work.
Colonel Guyer read the motion and board members discussed timing and governance; the motion passed unanimously. Crosby said any transfer will be recorded in audited financial statements and returned to the board as a journal entry with details close to the November–December timeframe for final audit numbers.
Provenance: Discussion and motion from SEG 583 through SEG 1140.
