On Tuesday, May 15, Liberty Central School District residents will head to the polls to vote on a proposed budget for the 2018-19 school year and new board of education members. Residents will also vote on a no-cost referendum which will allow the district to spend the remaining balance of its Capital Reserve Fund. This balance, which will not exceed $1,650,000, will be used to pay down expenses from the Phase II Capital Project.
Just like a savings account, a capital reserve fund allows the district to set aside money for future construction projects and major purchases. The fund cannot be established without voter approval and the money cannot be spent without voter approval. Click here to learn more about the different types of reserve funds and how they are established to save money for the future
District residents authorized the creation of the capital reserve fund in 2011. The district now seeks additional authorization to use the remaining balance to avoid interest costs from the Phase II Capital Project.
The proposition will read:
Shall the Board of Education be authorized to expend, in addition to amounts previously authorized, the remaining balance of the 2011 Capital Reserve Fund, which shall not exceed $1,650,000, to pay expenses associated with the 2015 Phase II Capital Project in lieu of incurring debt to finance the payment of those expenses?