NEW Construction Capital Reserve Fund (2022)
The purpose of this reserve is to finance the construction of, and general improvements, reconstruction, renovations or additions to, the District’s buildings and grounds, including site work and the acquisition of original furnishings, equipment, machinery or apparatus required for the purpose for which such buildings are to be used.
The reserve is intended to reduce the impact to district residents of capital projects.
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, facility construction, equipment, etc.
Use of Reserve:
Use of this reserve requires voter approval. The proposition to use these funds must specifically establish the scope of the project 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 would be initially funded with the remaining balance in the Reserve for Debt, with the Board of Education authorized to fund the reserve up to a maximum amount of $3,000,000.
The duration of the reserve is ten years from the date of establishment. The reserve expires 10 years after creation based on the date of voter approval.
Same as above $3,000,000
Fund the reserve with the balance remaining in the Reserve for Debt and use the reserve funds to offset the cost of necessary construction projects beginning in 2022-2023.
Balance at June 30, 2021: