Reserve for Debt Service
This reserve was established to provide a source of funds to offset the local share of bond payments related to capital projects.
This fund would be used to segregate funds required for debt payments as well as to transfer the interest earned on proceeds of long-term debt as required. The purpose of the fund would be to hold the interest earned from borrowed funds during construction period and unexpended funds from the capital project completed in 2019. It is intended would be to offset the local cost of future debt service payments.
Gen. Municipal Law § 6-1;
Source of Funds:
This reserve was originally funded incorrectly from excess fund balance. Any future funding for such reserve must be the excess funds from sale of a building or property.
Use of Reserve:
Use of this reserve is authorized by BOE resolution.
BOE resolution authorized $515,000 from this reserve to be applied to BAN payments to reduce the local tax liability related to the 2016-2018 capital project.
This reserve was established by BOE resolution on October 20, 2014 and funded on November 4, 2014.
The reserve was initially funded at a level of $1,086,893
Funding for this reserve was increased by $363,626 by BOE resolution on August 15, 2007, effective June 30, 2007.
Funding for this reserve was increased by $549,481 by BOE resolution on October 20, 2014, bringing the total amount in the fund to $2,000,000
Ideal Balance: .
In 2021-2022, transfer funds to Capital Reserve for Construction to fund essential construction projects identified in the building condition survey with minimal impact to taxpayers, pending voter approval. This reserve will then be closed.
Balance at June 30, 2021: