NEW Capital (Bus Purchase) Reserve Fund (2022)
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
The voters authorized this reserve in August 2021.
The reserve can be funded by Board Resolution, up to an authorized maximum level of $3,000,000, pending voter approval.
The voter-approved resolution will authorize the BOE to deposit state aid received for bus purchases into the reserve annually. In addition, the voter-approved resolution will authorize the BOE to deposit unallocated fund balance and unused funds 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 state aid received for bus purchases, beginning in the 2021-2022 school year.
Balance at June 30, 2021: