Capital (Bus Purchase) Reserve Fund (2015)
This reserve may be used to fund the cost of acquisition of school buses and vehicles. As a form of a capital reserve fund, this fund is used to pay the cost of any object or purpose for which bonds may be issued.
The reserve is intended to reduce the impact to district residents for the purchase of buses.
Education Law, §3651
Source of Funds:
Voter approval is required to establish and fund this reserve.
Voter authorization is required to establish the reserve and to spend from the reserve. The form of the required legal notice for the vote on establishing the reserve and the form of the proposition to be placed on the ballot are set forth in §3651 of the Education Law. Expenditures must be specific i.e., to purchase school buses.
Use of Reserve:
Use of this reserve requires voter approval. The proposition to use these funds must specifically establish the nature of the purchase and maximum dollar amount.
Unexpended funds may be transferred to other funds only with voter approval.
Reserve may be liquidated by approval of voters if funds are no longer needed for the original purpose.
Proceeds must be applied first to outstanding bond indebtedness then to tax levy
This reserve was authorized by BOE resolution on March 19, 2015, approved by voters on May 19, 2015 and established on July 1, 2015.
The reserve was initially funded at a level of $1,500,000 authorized up to a maximum level of $3,000,000.
The voter-approved resolution authorized the BOE to deposit unallocated fund balance and unused funds from the Employee Benefit Accrued Liability Reserve for nine fiscal years following the date of establishment.
The duration of the reserve is ten years from the date of establishment.
Ideal Balance: .
Fund the reserve with an additional $1,480,000 from unassigned fund balance to make future bus purchases with no impact to the tax levy. Use funds from the reserve to purchase buses annually in accordance with the District’s Bus Purchase Plan through 2024-2025.
Balance at June 30, 2021: