Trustees Approve Reserve Fund Maximum Contributions

Huntington School Board members approved a resolution establishing the maximum amount of contributions into six separate reserve funds that have all been authorized by both law and district residents.

“Exact contributions will be adopted in the fall, based upon actual unreserved, unappropriated 2024-2025 fund balance as determined by the district's external auditors,” Superintendent Beth McCoy said.

Trustees authorized the following maximum contributions into these specific funds:

• Building Improvement (Capital Reserve) Fund (2022): $3,527.014

• Employee Benefits and Accrued Liabilities Reserve Fund: $1,000,000

• Workers Compensation Reserve Fund: $1,000,000

• Retirement Contribution Reserve Fund: $1,000,000

• Retirement Contribution Sub-Fund: $1,000,000

• Unemployment Insurance Payment Reserve Fund: $300,000

A reserve fund is like a savings account for the school district. A final decision on the exact amount of monies to be deposited into the reserve accounts will be made early next fall.

Maintaining a well-funded building improvement/capital reserve allows the district to avoid borrowing and incurring interest costs to upgrade its facilities. These monies can only be used for capital projects, including new school roofs, windows, doors, boilers, facility improvements, etc. Completed projects are eligible for state aid. District residents must approve any expenditure of funds.

The Employee Benefits Accrued Liability Reserve Fund covers the cost of unused accumulated leave time that is contractually provided to certain groups of employees when they separate from the district and are entitled to such payment.

The Workers’ Compensation Reserve Fund was created on June 19, 2006. It is used to pay actual claims related to employee medical costs and self-insurance administrative expenses. It cannot be used to pay for premiums.

The Retirement Contribution Reserve Fund is used to pay expenses related to the district’s obligation to the New York State Employees Retirement System.

The Retirement Contribution Reserve Sub-Fund was created on May 13, 2019 and is used to pay expenses related to the district’s mandated contributions to the Teachers Retirement System.

The Unemployment Insurance Payment Reserve Fund was created on June 7, 2010. It helps cover unemployment insurance claims submitted by employees who have been separated from service to the district.