POPLAR RIDGE - The Southern Cayuga Central School District Board of Education will take a hard look at the district's reserve accounts to ensure long-term financial stability.
Over the next several weeks and months, the board will study district reserves - a kind of savings account that is established and funded for a particular purpose - to see if the money set aside is put in the correct place or should be moved to a different fund.
“What's the best place to put the money so we can meet the needs over the next several years,” Business Administrator Martha Stevermer explained of the task at hand to the board during its meeting Monday.
Stevermer said the district has between $100,000 and $150,000 in a number of reserve accounts, but Superintendent Mary Kay Worth said there is no evidence money has been added to them in several years. In fact, there is no evidence that one account was even established legally.
By law, a capital reserve account - earmarked to pay for capital projects - needs voter approval for establishment. Worth said there is no evidence that happened when it was established years ago. During the next meeting Aug. 24, the board will vote on whether to declare this account defunct and use the money inside to pay down debt.
During that meeting, the board will also act on a measure to move $300,000 into a new capital reserve account approved by voters in May. Worth said that account is important, especially since the board is considering a proposed capital project to consolidate district buildings.
Other funds, such as the worker's compensation reserve, which currently has nearly $14,000, Worth said is unnecessary since the district is not self-insured.
But the district doesn't have a tax certiorari fund, which comes into play when taxpayers challenge their housing assessments and impact tax revenues. Stevermer said the district already has 20 such complaints.
These reserves are only one portion of district savings. In addition is the unappropriated fund balance - a rainy day fund - which is funded as much as the state allows - 4 percent of last year's operating budget. Worth calls this an achievement, given there was only $3,000 in the account when she started more than two years ago.
“That's a huge success,” she said. “It's definitely a very positive sign of improved financial health, a strong board and administrative leadership.”
This discussion followed a presentation made by William Duncombe, professor of public administration at Syracuse University's Maxwell School, during which he said the state's financial situation looks grim three to five years out, and districts have to be prepared for drastic state aid cuts.
The next board meeting is slated for 7 p.m. Aug. 24 in the high school library, Route 34B, Poplar Ridge.
Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net
“What's the best place to put the money so we can meet the needs over the next several years,” Business Administrator Martha Stevermer explained of the task at hand to the board during its meeting Monday.
Stevermer said the district has between $100,000 and $150,000 in a number of reserve accounts, but Superintendent Mary Kay Worth said there is no evidence money has been added to them in several years. In fact, there is no evidence that one account was even established legally.
By law, a capital reserve account - earmarked to pay for capital projects - needs voter approval for establishment. Worth said there is no evidence that happened when it was established years ago. During the next meeting Aug. 24, the board will vote on whether to declare this account defunct and use the money inside to pay down debt.
During that meeting, the board will also act on a measure to move $300,000 into a new capital reserve account approved by voters in May. Worth said that account is important, especially since the board is considering a proposed capital project to consolidate district buildings.
Other funds, such as the worker's compensation reserve, which currently has nearly $14,000, Worth said is unnecessary since the district is not self-insured.
But the district doesn't have a tax certiorari fund, which comes into play when taxpayers challenge their housing assessments and impact tax revenues. Stevermer said the district already has 20 such complaints.
These reserves are only one portion of district savings. In addition is the unappropriated fund balance - a rainy day fund - which is funded as much as the state allows - 4 percent of last year's operating budget. Worth calls this an achievement, given there was only $3,000 in the account when she started more than two years ago.
“That's a huge success,” she said. “It's definitely a very positive sign of improved financial health, a strong board and administrative leadership.”
This discussion followed a presentation made by William Duncombe, professor of public administration at Syracuse University's Maxwell School, during which he said the state's financial situation looks grim three to five years out, and districts have to be prepared for drastic state aid cuts.
The next board meeting is slated for 7 p.m. Aug. 24 in the high school library, Route 34B, Poplar Ridge.
Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net
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