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Board presenters propose capital and PERS reserves after years of deficits
Summary
Finance staff proposed a new $500,000 capital improvement reserve and creation of a PERS reserve funded by payroll charges to rebuild long-term fiscal stability; presenters said PERS bonds historically saved taxpayers and some bond obligations will retire in 2027.
Presenters recommended creating a capital reserve and a PERS reserve as part of a multi-year recovery plan. The administration proposed a $500,000 transfer from the general fund to seed a new capital improvement fund specifically for roof replacements and other capital projects. Separately, the budget would establish a PERS reserve funded by a small payroll assessment intended to mitigate future pension cost increases.
Presenter reviewed debt service funds, noting that the Silverton High School bond remains on the levy and that PERS bond amortization and other debt schedules require predictable payments. As one presenter told the committee, the district's prior use of PERS side accounts and bonds produced cumulative savings in prior years, but the district is again facing higher PERS rates and needs to prepare for future volatility.
