Mayfield Central School Reserves Plan
December 19, 2017
Workers’ Compensation Reserve:
Purpose: To fund Workers’ compensation expenses, related medical expenses, and self-insurance administrative cost. The reserve was established through board resolution on June 16, 2009.
Balance on June 30, 2017: $96,555.64
Ideal Balance: The equivalent of two years’ of annual expenditure. The budgeted expenditure for 2016-17 is $45,000. The balance is currently ideal.
Unemployment 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. (General Municipal Law) This reserve was established by the board of education under resolution on March 18, 2014.
Balance June 30, 2017: $107,420.25
Ideal Balance: Approximately 1% of payroll. The budgeted payroll for 2016-17 year is approximately $7,500,000. The balance is currently ideal.
Tax Certiorari Reserve:
Purpose: The governing board of any school district, by resolution, may establish a reserve to refund taxes of the current year in tax certiorari proceedings. Establishing or expending the reserve does not require voter approval. Amounts not necessary to refund taxes must be returned to the unreserved fund balance of the general fund by the first day of the fourth fiscal year following the year for which the reserve was created unless claims are still open and not finally determined or otherwise terminated of disposed of after the exhaustion of all appeals.
Balance June 30, 2017: $0
Ideal Balance: The equivalent of pending tax certiorari claims.
Retirement Contribution Reserve:
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), but not TRS. Establishing or expending the reserve does not require voter approval. Expenditures may only be made pursuant to a board resolution and must be used to finance retirement contributions.
Balance June 30, 2017: $991,382.35
Ideal Balance: Approximately 5 years of planned ERS expenditures. The current projection for 2016-17 is approximately $295,000. The district will continue to fund this reserve yearly.
Employee Benefit Accrued Liability Reserve:
Purpose: The governing board of any school district, by resolution, may establish a reserve for the purpose of funding the monetary value of accrued but unused sick leave, personal leave, vacation time, and any other forms of payment of accrued but unliquidated time earned by employees. Establishing or expending the reserve does not require voter approval. Expenditures may only be made for allowed cash payments earned by employees due upon their termination of employment.
Balance June 30, 2017: $401,527.59
Ideal Balance: Equivalent to the calculated total of compensated absences less any monies expended from the general fund for this purpose.
Capital Reserve:
Purpose: The Capital Reserve is used to pay the cost of any object or purpose for which bonds may be issued. Voter authorization is required for both the establishment of the reserve and for payments from the reserve. The form of the required legal notice for the vote on establishing the reserve and the form of the proposition to be placed on the ballot are set forth in 3651 of Education Law. The reserve is intended to reduce the impact to District residents of capital projects.
Balance June 30, 2017: $600,000
Ideal Balance: May not exceed the voter approval of 1 million dollars or the 10 year limit. This reserve was established May 20, 2014.
Bus Reserve:
Purpose: The Bus Reserve Fund is a capital reserve specified to be used to pay for bus purchases. Voter authorization is required for both the establishment of the reserve and for payments from the reserve. The form of the required legal notice for the vote on establishing the reserve and the form of the proposition to be placed on the ballot are set forth in 3651 of Education Law. The reserve is intended to offset the local impact to District residents for the acquisition of transportation department vehicles.
Bus Reserve A Balance June 30, 2017: $ 790,851.36
Ideal Balance: This reserve may not exceed the voter authorization limit of 2 million dollars or the 10 year limit. This reserve was established May 19, 2015.
Insurance Reserve:
Purpose: To pay liability, casualty and other types of losses, except those incurred for which the following types of insurance may be purchased: life, accident, health, annuities, fidelity and surety, credit, title residual value and mortgage guarantee. Annual contribution(s) limited to greater of $33,000 or 5% of the budget. No limit on accumulated reserve balance. Cannot use money for any purpose covered by another special reserve. Settled or compromised claims up to $25,000 may be paid without judicial approval. Should BOE terminate this reserve, remaining funds in excess of incurred or accrued liabilities may be transferred to any other reserve fund authorized by the GML or Ed. Law §3651.
Balance June 30, 2017: $ 40,000.
Repair Reserve:
Purpose: For repairs to capital improvements or equipment not recurring annually or at shorter intervals. Reserve must be repaid in equal installments over next two school yrs. 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
Balance June 30, 2017: $265,000
Accepted by BOE: December 19, 2017