Trustees Approve Reserving up to
$6.4 Million
A tradition of conservative budgeting and ongoing stringent spending controls has allowed Huntington School Board members to adopt a recommendation setting aside up to an additional $6.4 million in six separate reserve accounts. Trustees took the action at their June 3 meeting. When finalized next fall, the move will have the ultimate effect of holding down taxes.
Huntington's external auditing firm, Cullen & Danowski, recommended the Huntington 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. The recent vote by trustees does not obligate the district to reserve any specific amount. The exact amount reserved will be determined at a later date.
"While this is an estimate at this time since the books have not been closed for June 30, 2013, the state comptroller also wants the Board of Education to reserve funds on or before the end of the fiscal year," said Sam Gergis, assistant superintendent for business.
Trustees voted to reserve no more than $2 million in the 2013 building reserve fund (which was created by residents last month); $1,656,376 in the 2008 building reserve fund (which has now reached its cap); $1 million in the Employees Retirement System reserve fund; $1 million in the employee benefits and accrued liabilities reserve fund; $500,000 in the worker's compensation fund and $250,000 in the unemployment insurance fund. These are amounts that will be added to the existing balance in each fund.
"We will finalize these numbers once we set the tax rate in September 2013," Mr. Gergis 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.