Reserve Funds

2020-2021 RESERVE PLAN

NORTH COLLINS CENTRAL SCHOOL DISTRICT

2021-2022 RESERVE PLAN

Unemployment Insurance Reserve

CreationThis reserve was created prior to 7/1/2007

PurposeThis reserve is used to reimburse the State for payments made to claimants where the district uses the benefit reimbursement method.  The District does subscribe to the benefit reimbursement method, meaning we reimburse the State for actual claims incurred.  We do not pay NYS a fixed premium for unemployment insurance coverage.

Funding MethodsFunds are placed in this reserve from budgetary appropriations or excess fund balance.

Use of ReserveThe district will begin to pay New York State Unemployment Claims through the use of the Unemployment Reserve.  The district will not appropriate funds for these expenses. 

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelAdditional funding to this account will be evaluated and determined at the close of each fiscal year.

Estimated Balance as of 06/30/2021:           $ 220,900

 

Employee Benefit Accrued Liability Reserve

CreationThis reserve was created through Board Resolution 06/27/2001

PurposeThis reserve is used to pay for unused accumulated leave time contractually provided to certain groups of employees.  This typically includes payment for unused sick and vacation pay.  This fund cannot be used to pay for items such as:  retirement incentives, FICA and Medicare payments and retiree health insurance.

Funding MethodsFunds are placed in this reserve from budgetary appropriations or excess fund balance.

Use of ReserveThe district will begin to fund the cost of retirements (accrued benefit costs) from the Employee Benefit Accrued Liability Reserve when service with the district is severed. The district has no plans to appropriate funds for these expenses. 

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelThis reserve can be funded at a level up to 100% of the accrued liability for unused accumulated leave time (compensated absences).  Funding to this account will be evaluated and determined by the table that will be prepared by the Actuarial hired by the district prior to the close of each fiscal year.

 Estimated Balance as of 06/30/2021:          $ 412,231

 

Property Loss Reserve

CreationThis reserve was created through Board Resolution on 06/26/2002

PurposeThis reserve is used to pay for property loss claims incurred.

Funding MethodsFunds are placed in this reserve from budgetary appropriations or excess fund balance.

Use of ReserveThis reserve would be used to pay any allowable claims, as described in the purpose for this reserve.

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelThere is no plan to contribute additional funds to the reserve at this time.

Estimated Balance as of 06/30/2021:           $93,178

 

Liability Loss Reserve

CreationThis reserve was created through Board Resolution on 06/26/2002

PurposeThis reserve is used to pay for liability loss claims incurred.

Funding MethodsFunds are placed in this reserve from budgetary appropriations or excess fund balance.

Use of ReserveThis reserve would be used to pay any allowable claims, as described in the purpose for this reserve.

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelThere is no plan to contribute additional funds to the reserve at this time.

Estimated Balance as of 06/30/2021:           $ 31,133

 

Capital Reserve 2017

CreationThe reserve was established though Voter Resolution on May 16, 2017.

Purpose This reserve may be used to fund the cost of any object or purpose for which bonds may be issued.

Funding MethodsVoter approval is required to establish and fund this reserve.  In accordance with the approved proposition, this reserve is funded from budgetary appropriations or excess fund balance.  At the end of each fiscal year, consideration will be given to transferring additional funds to this reserve for subsequent capital projects.

Use of ReserveUse of this reserve requires voter approval.  Consideration will be given to use of the balance of these funds for subsequent capital projects.

Monitoring of Reserve This reserve is monitored by the Chief Financial Officer.

Funding LevelAs stated in the approved proposition, this reserve was created with a maximum limit of $2,500,000 for a probable term of 10 years.  Transfer of funds into this reserve must cease at the earlier of reaching $2,500,000 or June 30, 2027.  The District is currently working with a financial analyst in conjunction with continual review of the 5 Year Building Condition Survey to determine what is in the best interest of the District and Taxpayers.

Estimated Balance as of 06/30/2021:           $0

This fund was completely expended on the Capital Project approved by Taxpayers on 12/11/2018.

Employees Retirement Contribution Reserve

CreationThis reserve was created through Board Resolution on 06/08/2005.

PurposeThis reserve is used to pay for district expenses to the NYS Employees Retirement System only.  Payment to the Teachers Retirement System are not allowed form this reserve.

Funding MethodsFunds are placed in this reserve from budgetary appropriations or excess fund balance.

Use of ReserveAs part of a three year financial plan, the district plans to expend this reserve to fund New York State Employee Retirement expenses (barring any unpredictable fluctuation in pension rate).                             

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding Level Funds will be available through budgetary appropriations or excess fund balance.  Any for-seeable additions to this reserve will be through an appropriate board resolution.

Estimated Balance as of 06/30/2021:           $ 323,041

Sub – Fund of Employees Retirement Contribution-Teachers Retirement Contribution Reserve

CreationA sub fund will be created pending Board of Education Approval, June, 2019.

Purpose – All aspects of this fund will mirror the above fund.  However, the sole purpose will be to offset expenses that must be paid on an annual basis to the Teacher’s Retirement System. 

Estimated Balance as of 06/30/2021:           $199,168

Capital Reserve for Bus & Vehicle Purchases

Creation The reserve was reestablished though Voter Resolution on May 16, 2017.

PurposeThis reserve is used to pay for the purchase of Buses and Vehicles. 

Funding MethodsVoter approval is required to establish and fund this reserve.  In accordance with the approved proposition, this reserve is funded from budgetary appropriations or excess fund balance.  At the end of each fiscal year, consideration will be given to transferring additional funds to this reserve for subsequent bus & vehicle purchases.

Use of ReserveUse of this reserve requires voter approval.  Consideration will be given to use of the balance of these funds each year and a proposition will be presented to the voters.  At this time the District plans to continue annual rotation of our fleet of buses.  In order to maintain a current fleet the District will evaluate annually and replenish funds that are used as available. 

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelAs stated in the approved proposition, this reserve was created with a maximum limit of $2,500,000 for a probable term of 10 years.  Transfer of funds into this reserve must cease at the earlier of reaching $2,500,000 or June 30, 2027

Estimated Balance as of 06/30/2021:           $1,147,921

Repair Reserve

CreationThis reserve was created through Board Resolution on 07/09/2009.

PurposeThis reserve is used to pay for repairs to capital improvements or equipment of a type that does not recur annually or at shorter intervals.

Funding MethodsFunds are placed in this reserve from budgetary appropriations or excess fund balance.

Use of ReserveThis reserve will be used to pay for repairs as described in the purpose above.  A public hearing is required whenever there is a plan to expend funds from this reserve. 

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelThere is no plan to contribute additional funds to the reserve at this time.

Estimated Balance as of 06/30/2021:           $ 57,519

Capital Reserve 2019

CreationThe reserve was established by voter approval on May 21, 2019

PurposeThis reserve, if approved may be used to fund the cost of any object or purpose for which bonds may be issued.

Funding MethodsVoter approval is required to establish and fund this reserve.  In accordance with the approved proposition, this reserve will be funded from budgetary appropriations or excess fund balance.  At the end of each fiscal year, consideration will be given to transferring additional funds to this reserve for subsequent capital projects.

Use of ReserveUse of this reserve requires voter approval.  Consideration will be given to use of the balance of these funds for subsequent capital projects.

Monitoring of ReserveThis reserve is monitored by the Chief Financial Officer.

Funding LevelAs stated in the proposition, this reserve was created with a maximum limit of $2,500,000 for a probable term of 10 years.  Transfer of funds into this reserve must cease at the earlier of reaching $2,500,000 or June 30, 2029.  The District is currently working with a financial analyst in conjunction with continual review of the 5 Year Building Condition Survey to determine what is in the best interest of the District and Taxpayers.

Estimated Balance as of 06/30/2021:           $1,501,159

 

The following four items are not reserve accounts, but are fund balance components that are equally as important in planning revenues for the District.

Unassigned Fund Balance

CreationRetention of these funds are allowed by law.

PurposeThese funds are unrestricted and may be used for any valid purpose.

Funding MethodsThese funds have been accumulated from excess fund balance.

Use of FundsIt is recommended that these funds not be used except for an emergent, unanticipated expense, or revenue shortfall, that cannot be handled either in the budget or with other available reserves.

Monitoring of BalanceThese funds are monitored by the Chief Financial Officer.

Funding LevelThe maximum legal limit is recommended at 4% of the ensuing budget.  The district is committed to keep the unassigned fund balance at 4%.

Estimated Balance as of 06/30/2021            $625,648

Assigned Appropriated Fund Balance

CreationThese funds are fund balance that have been set aside for a particular purpose, namely to reduce the tax levy required to support an ensuing years budget.

PurposeThese funds are set aside and returned to the community by lowering the required tax levy to support the district’s budget.

Funding MethodsThese funds are fund balance that is assigned for a particular purpose.

Use of FundsIt is recommended that the practice of returning these funds continue each year, as budgets permit.  In the future, tighter budgets may restrict the amount of excess available to be returned in a subsequent year.

Monitoring of BalanceThe balance of these funds are monitored by the Chief Financial Officer.

Funding LevelThe funding level for the ensuing year will be determined by fund balance of the previous year.  

Estimated Balance as of 06/30/2021            $700,000

Assigned Unappropriated Fund Balance (Reserve for Encumbrances)

CreationThese funds are fund balance that have been set aside for a particular purpose, namely to pay for outstanding encumbrances remaining at the end of a school year.

Purpose These funds are used to pay for outstanding encumbrances remaining at the end of a school year.

Funding MethodsThese funds are fund balance that are assigned for a particular purpose.

Use of FundsThese funds will be expended during the subsequent year for the purpose for which they were encumbered.  It is recommended that the practice of assigning fund balance for the purpose of carryover encumbrances continue each year.  This practice appropriately matches revenue with the appropriations that it was intended to support.

Monitoring of BalanceThe estimating and recording of these fund is monitored by the Chief Financial Officer.

Funding LevelThe funding level should be minimal as most expenses attributable to a particular year are appropriated in that year.

Estimated Balance as of 06/30/2021            $60,000

Non-spendable Fund Balance

CreationThese funds are fund balance that have been set aside for a particular purpose, namely for long-term receivables from other funds.

PurposeThese funds must be maintained intact because they represent long-term receivable balances due from other funds (School Lunch and Federal Funds).

Funding MethodsThese funds are fund balance that are inherently non-spendable in the current year.

Use of FundsThese funds will not be expended during the year, but will be adjusted at the end of each year to the current balances due from other funds.

Monitoring of BalanceThe calculating and recording of these funds is monitored by the Chief Financial Officer.

Funding LevelThe funding level is 100% of the long-term receivable from other funds at the end of each year.

Estimated Balance as of 06/30/2021            $300,000

Website by SchoolMessenger Presence. © 2021 Intrado Corporation. All rights reserved.