What is a capital reserve fund?
A capital reserve fund allows the district to set aside money for future construction projects. The capital reserve fund is established with voter approval, can have a maximum of $10,000,000 and voter authorization is required to make withdrawals from the fund.
Will my taxes go up due to the establishment of a capital reserve fund?
No, your taxes will not increase due to the establishment of a capital reserve fund.
Why establish a capital reserve fund now? Didn’t the district just approve a building project? Why would we need to build more?
There are still areas within the district that need to be renovated and/or will need replacement in the future. Saving for these eventual projects now will help to offset any required funding in the future.
How will it be funded?
Once the reserve is voter authorized, the Board of Education may direct funds into the reserve by resolution at a regularly scheduled public meeting. These funds consist of unused operating funds at the end of the school year or through the transfer of unused funds from other reserve accounts.
Why do we need a capital reserve fund?
The district believes it is an effective and responsible fiscal management method to reduce the taxpayer share of future construction projects.
Category: District News