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District Reserves

Warwick Valley Central School District
District Reserves
2018-19

Workers Compensation Reserve Fund

Purpose: To pay Workers Compensation expenses, related medical expenses and self-insurance administrative costs

Duration: No Limit, BOE may terminate if district no longer self-insures

Funding Source: The reserve can be funded by budget appropriations and/or other funds that may be legally appropriated.

Restrictions: District that self-insures may establish reserve Funds remaining at the end of each school year in excess of requirement to pay all pending claims may be transferred within 6 days of the close of the school year to other reserve funds or applied to budget appropriations for new school year.

Board Goals: One year’s current calculated cost of workers compensation expense, plus the run off of claims that would be paid if the district has to abandon its self-insured plan.

Funding Target: Funding determined at end of year closing

Unemployment Insurance Reserve

Purpose: To pay the cost of reimbursement to the State Unemployment Insurance Fund for payments made to claimants where the school district uses the benefit reimbursement method.

Duration: No limit, BOE may terminate if district converts to tax contribution method of funding

Funding Source: Budget Appropriations or other funds that may be legally appropriated or funds from other reserves authorized in the GML or Ed. Law subject to permissive referendum

Restrictions: If district converts to tax contribution funding mechanism, balance exceeding the amount necessary to pay all outstanding claims may be transferred to any reserve fund(s) authorized by GML or Ed. Law §3651. Excess Funds remaining at the end of any school year may be transferred, within 60 days of the close of that school year, to other reserve funds(s) or applied to budgetary appropriations for the new school year

Board Goals: The uncertainty of revenue from State aid and School Taxes can cause a large reduction in staff in any given year. The reduction in staff makes the school district vulnerable to high levels of unemployment payments. Since the District has a self-funded unemployment fund, it is important to maintain an unemployment reserve to prevent large swings in the annual unemployment expense.

Funding Target: Funding determined at end of year closing

Reserve for Encumbrances

Purpose: Allows outstanding encumbrances remaining at the end of the school year to be carried over to the next school year.

Duration: Until such obligations are encumbered in the subsequent school year.

Funding Source: Revenue from prior school year

Restrictions: Encumbrances should represent bona fide obligations

Board Goals: Accounting method to carry over purchase order issues but not yet received at year end.

Funding Target: Determined at end of year closing

Retirement Contribution Reserve Fund

Purpose: To fund employer retirement contributions. I.e. any portion of the amount(s) payable by an eligible school district to the NY State and Local Employees’ Retirement System (ERS)

Duration: No Limit

Funding Source: Budgetary Appropriations or other funds that may be legally appropriated, revenue not restricted by Law to be paid to another fund or account or transfers from Tax Certiorari, Capital, or Repair Reserves.

Restrictions: Transfers from or back to other reserve funds require a public hearing with 15 days’ notice in official newspaper(s)

Board Goals: Three (3) times the five (5) year average to cover the escalating cost of Employee Retirement Contributions to help fund ERS when tax cap calculation doesn’t include the increase

Funding Target: Minimum of $50,000 or until fund is fully funded

Employee Benefit Accrued Liability Reserve

Purpose: To pay accrued benefits due employees upon termination of service for vacation, sick, leave, and personal leave.

Duration: No Limit

Funding Source: Budget Appropriations or other funds that may be legally appropriated or funds from other reserves authorized in the GML or Ed. Law subject to permissive referendum

Restrictions: Upon termination by BOE, balance not required to satisfy all incurred or accrued liabilities may be transferred to any other reserve fund(s) authorized by General Municipal Law (GML). May not be used to fund health or other post-retirement benefits

Board Goals: Three year projected cost of possible retirements known or anticipated by the district including all incentives and other contractual payouts

Funding Target: Minimum of $50,000 or until fund is fully funded

Tax Certiorari

Purpose: To pay judgments & claims in tax certiorari proceedings per Real Property Tax Law, Article 7

Duration: No Limit

Funding Source: Funding with budgetary appropriations or other funds that may be legally appropriated to the reserve. Monies held in reserve may not exceed amount necessary to meet anticipated judgments and claims.

Restrictions: Funds not expended for judgment & claims in the year deposited, must be returned to the General Fund on or before the 1st day of the 4th school year after deposit of such monies into the reserve unless claim(s) are still open and not finally determined or otherwise terminated or disposed of after the exhaustion of all appeals

Board Goals: Funds reviewed and adjusted to actual pending Tax Certiorari on an annual basis

Funding Target: Funding determined at end of year closing

Capital Reserve

Purpose: To pay the cost of any object or purpose for which bonds may be issued

Duration: Limited to term or life approved by voters may extend term only before end date. Reserve(s) defunct after term(s) expire, except to spend remaining funds with voter approval

Funding Source: Proposition(s) put before voters must specify purpose(s), ultimate $ amount(s), probable term(s) or life/lives and source(s) of funds to be deposited into the reserve (s).

Restrictions: Purpose must be specific. Total expensed over life of each reserve may not exceed voter approved maximum. Funds may be transferred to other reserves only with voter approval. Voter approval required to terminate reserve before specified expiration date. Remaining funds must first be applied to district’s outstanding bonded indebtedness and secondarily to reduce the tax levy.

Board Goals: Capital Reserve funds are used to purchase buses and to address capital issues found in the district’s Building Condition Survey (5 year plan)

Funding Target: Minimum of $250,000 per year projects and $50,000 for Bus

Repair Reserve

Purpose: To pay the cost of repairs (that do not recur annually) to capital improvements and equipment

Duration: No Limit

Funding Source: Voter Approval required funding this Reserve

Restrictions: Reserves must be repaid over next two school years if expenses are made without holding a public hearing. Emergency spending requires 2/3 majority vote of BOE. Legal notice required 5 days in advance of hearing. Unneeded balance may be transferred to Capital, Tax Certiorari or Retirement Contribution Reserves.

Board Goals: The Warwick Valley CSD has two closed school buildings that are rented. At some point these buildings will need repairs and the repair reserve will allow the District to fund these future repairs.

Funding Target: Minimum of $50,000 per year.

Mandatory Reserve for Debt Service

Purpose: To cover debt service payments on outstanding obligations (bonds, BANS), after the sale of district capital assets or improvements

Duration: Terminated once outstanding obligations are repaid

Funding Source: Proceeds from the sale of capital assets and improvements as defined in GML §6-c. Includes but not limited to land, building, equipment and vehicles

Restrictions: Applicable State or Federal Aid must also be deposited into the reserve fund if proceeds from sale are not sufficient to repay all outstanding obligations. Proceeds of sale in excess of indebtedness may be expended for any other lawful district purposes

Board Goals: Pay Capital debt when bonds become due or callable

Funding Target: No Funding, balance to be used when allowed until exhausted

Reserve for Tax Reduction

Purpose: To allow for the gradual use of proceeds from the sale of district real property.

Duration: Up to 10 Years

Funding Source: Proceeds from the sale of real property in excess of what is required to repay outstanding debt (Bonds, BANS)

Restrictions: Proceeds must be placed in Reserve for Debt Service in amount necessary to retire all outstanding obligations before BOE may establish Reserve for Tax Reduction

Board Goals: Warwick Valley CSD sold a piece of real property referred to as the Albert Wisner Public Library. The proceeds will be used to pay down Library debt when bonds become callable.

Funding Target: Used when library debt becomes callable.

 

2018 Reserve Funds

Reserves as of March 31, 2018

Capital Reserve
Beginning Balance: $4,000,000
Receipts: 5,577
Disbursements: ($128,240)
Ending Balance: $3,877,337

Bus Reserve
Beginning Balance: $500,000
Receipts: $330
Ending Balance: $500,330

Repair Reserve
Beginning Balance: $250,552
Receipts: $280
Ending Balance: $250,832

Workers Comp Reserve
Beginning Balance: $250,072
Receipts: $279
Ending Balance: $250,351

Employee Benefit Accrued Liability
Beginning Balance: $275,897
Receipts: $272
Ending Balance: $276,168

Retirement Contribution Reserve
Beginning Balance: $2,395,000
Receipts: $4,262
Disbursements: ($272,809)
Ending Balance: $2,126,453

Tax Certiorari Reserve
Beginning Balance: $2,757,235
Receipts: $4,696
Ending Balance: $2,761,930

Unemployment Reserve
Beginning Balance: $25,223
Receipts: $31
Ending Balance: $25,254

Total

Total Beginning Balance: $10,453,978

Total Receipts: $15,727

Total Disbursements: ($401,049)

Total Ending Balance: $10,068,656