Trustees Approve Reserving
up to $3.3 Million
Long-term conservative budgeting and continued tight control of spending allowed Huntington School Board members to adopt a recommendation setting aside up to an additional $3.3 million in three separate reserve accounts. Trustees took the action at their June 6 meeting. When finalized next fall, the move will have the ultimate effect of holding down taxes.
Huntington's external auditing firm, Coughlin Foundotos Cullen and Danowski, recommended the School Board pass a resolution describing how the un-appropriated fund balance will be reserved at the conclusion of the current fiscal year on June 30.
"While this is an estimate at this time since the books have not been closed for June 30, 2011, the state comptroller also wants the Board of Education to reserve funds on or before the end of the fiscal year," said David H. Grackin, assistant superintendent for finance and management services.
Trustees voted to reserve no more than $2 million in the capital reserve fund, $500,000 in the worker's compensation fund and $800,000 in the unemployment insurance fund. These are amounts that will be added to the existing balance in each fund.
Trustees are also expected to appropriate $1.995 million from the reserves to help hold down property taxes when the 2011/12 tax rate is set next fall. Money set aside in the unemployment reserve fund will also be drawn down to pay unemployment benefits to dozens of current employees whose positions are being eliminated at the close of business on June 30.
"We will finalize these numbers once we set the tax rate in September 2011," Mr. Grackin explained. By setting aside money in reserve funds, the district uses current money to pay for various expenses that would otherwise require it to increase taxes and/or borrow money and pay interest for debt service.