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Board holds required hearing and approves report on excess reserves
Summary
The district held the public hearing required to report reserves above the state's 4% minimum and approved the excess-reserves report. Staff noted that, as a basic-aid district, the state does not force a spend-down of excess reserves.
At the meeting the board conducted the public hearing required each budget cycle to report reserves in excess of the state's 4% minimum. Alicia explained the regulatory step and clarified that, because the district is a basic-aid district, there is no state mechanism to require spending down excess reserves.
"We are required to report out any reserve in excess of that 4% amount," Alicia said during the presentation. Trustees moved and seconded the required action and approved the report by roll call. The vote was recorded as unanimous.
Board members asked clarifying questions about whether reporting the excess carries any immediate restrictions for basic-aid districts; staff replied that reporting is a compliance step and does not alter the district's discretion to manage reserves under basic-aid rules. The board will consider a separate resolution to adjust the board-mandated minimum reserve from a static dollar amount to a phased percentage-based target in a future meeting.
