Special Vote - November 24
Details & Answers to Questions
Proposition 2:
Establish a capital reserve
fund
The district is seeking approval to
establish a capital reserve fund where unspent budget
allocations could be saved for the next 10 years to offset the
costs of a future school building.
Why does the district need to create this
type of fund?
ANSWER:
The district needs
to prepare for the future. A reserve account would allow the
district to save money over time for the specific purpose of
constructing a new school. The account - and the interest it
would accrue over 10 years - would save taxpayers money by
eliminating or greatly reducing the amount needed to finance a
new school.
Where would
the money for the proposed fund come from?
ANSWER:
The capital reserve account would be funded by excess funds
available at year end or by a budget line item. At this time, no
funds have been allocated to a reserve account.
Why does
the district want to save money now - before the size, location,
and grade-level configuration are determined?
ANSWER:
The
Board of Education and administration are concerned that a new
school will be needed in the near future. The Sullivan Avenue
School, built in 1918, was closed in 2004 due to structural and
code concerns. Port Jervis Middle School, built four years after
the Sullivan Avenue School, is now facing many of the same
architectural and educational space issues. The school board
wants to be prepared in order to minimize the taxpayer impact.
How would
the proposed fund benefit our community?
ANSWER:
The fund would allow the district
to set aside funds, when available, for the specific purpose of
offsetting the local taxpayer share. The goal is to save enough
funds, over time, to minimize the cost of building a new school.
Why doesn’t
the district use unallocated funds to reduce the annual budget?
ANSWER:
The district
already uses a managed amount of unallocated funds at the end of
each year to help offset taxes for the coming budget year. This
process will continue if the Capital Reserve account is
established.
•
Referenda
Community Presentation
(Adobe PDF File)
•
Project Details - $14 million Building
Renovation Project
•
Capital Project & Reserve Fund Newsletter,
Nov. 2009 (PDF) |
