Documents › Board of Education, 2026-06-29

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Also attached to this agenda item: Fund Balance and Reserves

Croton-Harmon Union Free School District Strategic Financial Stewardship Projected as of June 30, 2026 Fund Balance and Reserve Projections FUND BALANCE: PILLARS OF FINANCIAL STEWARDSHIP Stable Foundation P&L CHANGE: +$346,028 FUND BALANCE: $25.8M Strategic Reserves SECURED RESERVES: $18.5M $18.5M systematically secured for essential capital projects and future pension liabilities, protecting taxpayers from sudden levy spikes. Strict Compliance STATUTORY MAX: 4.00% Maintaining the 4.00% statutory maximum for unassigned funds, ensuring an emergency cushion while adhering to New York State law. Strategic configuration o fund balances and reserves fulfills our fiduciary duty, shields against unforeseen shortfalls, and protects our instructional vision. Category Amount Projected Revenues & Other Sources $59,828,661 Projected Expenditures & Other Uses -$59,482,633 Projected Current Year Profit/Loss $346,028 Description Amount Beginning Fund Balance (7/1/2025) $25,479,560 Current Year Profit/Loss $346,028 Projected Ending Fund Balance (6/30/2026) $25,825,588 Projected Current -Year Fund Balance Activity Projected Fund Balance Roll‑Forward The Architecture of the Fund Balance $18,538,317 71.2% $4,773,652 18.3% $2,510,512 9.6% <1% Restricted Reserves Strategic Savings Legally earmarked for specific, long-term future liabilities, primarily capital infrastructure and pensions. Assigned Reserves Planned Obligations Designated by the District for our immediate upcoming budget use and existing encumbrances. Unassigned Statutory Cushion Retained as an emergency safety net for cash flow and unanticipated occurrences.. *Note: Includes Non-Spendable Prepaid Expenses of $3,107.* Restricted Reserve Schedule: 7/1/2025 Usage Appropriated 26/27 Budget Reserve Increases Interest to-date Projected 6/30/2026 Net Change Tax Cert (NY-01-0005-0006) $ 1,937,621 $ (800,000) $ 105,726 $ 1,243,347 $ (694,274) Unemployment (NY-01-0005-0008) $ 225,410 $ (100,000) $ 50,000 $ 8,705 $ 184,115 $ (41,295) Workers Comp (NY-01-0005-0007) $ 407,689 $ (100,000) $ 15,745 $ 323,434 $ (84,255) Capital (2013 ) (NY-01-005-0004) $ 4,776,815 $ 1,661,800 $ 114,586 $ 5,528,564 $ 751,749 Capital (2016) (NY-01-005-0004) $ 2,996,324 $ 71,876 $ 3,068,200 $ 71,876 Capital Trans (2022) - (NY-01-0005-0013) $ 1,824,534 $ (630,802) $ 69,220 $ 1,262,951 $ (561,583) Liability Reserve (NY-01-0005-0012) $ 1,326,506 $ 39,644 $ 1,366,150 $ 39,644 Repair Reserve (NY-01-0005-0014) $ 262,315 $ (250,000) $ 7,382 $ 319,697 $ 57,382 Employee Benefit (NY-01-0005-0011) $ 546,092 $ 100,000 $ 20,928 $ 667,020 $ 120,928 ERS Reserve (NY-01-0005-0009) $ 1,854,165 $ (200,000) $ 400,000 $ 63,884 $ 2,118,049 $ 263,884 TRS Reserve (NY-01-0005-0010) $ 2,174,796 $ (289,925) $ 500,000 $ 75,108 $ 2,456,789 $ 281,994 $ 18,332,267 $ (1,170,727) $ (1,200,000) $ 2,211,800 $ 592,803 $ 18,538,317 $ 206,050 Restricted Reserve Activity FY 2025-26 $18.5M dedicated to long-term operational stability Roughly 71% of all restricted funds are concentrated in core capital infrastructure and mitigating the District’s liability in the area of pension obligations (TRS/ERS) and staff benefits . Capital 2013 $5,528,564 TRS Reserve $2,456,789 ERS Reserve $2,118,049 Capital 2016 $3,068,200 Liability $1.36M Capital Trans 2022 $1.26M Tax Cert $1.24M Employee Benefit $667k Workers Comp $323k Repair $319k Unemployment $184k Assigned Reserves: $4.77M designated for immediate obligations $4 ,773, 652 Appropriated for 26/27 Budget: $3,916,925 These funds bridge the structural gap between our limited revenue streams and the actual cost of our educational programs, thus reducing the taxpayer burden. Encumbrances: $856,727 Funds systematically carried over to fulfill prior, ongoing commitments and purchase orders from the previous fiscal year. Maintaining Strict Statutory Compliance 4.00% Limit $2,510,512 (Unassigned Funds)÷$62,762,808 (26/27 Budget) = 4.00% The Statutory Cushion This precise $2.51M balance serves as the district's operational emergency safety net. By maintaining exactly 4.00%, the district maximizes its financial security while adhering strictly to New York State legal maximums. A Sustainable Financial Posture for 2026 and Beyond Protecting Taxpayers Strategic reserves buffer against sudden tax levy spikes caused by revenue shortfalls, rising expenses, or unexpected liabilities. Funding the Future Capital reserves ensure our physical infrastructure keeps pace with our instructional vision without increasing taxes. Governing Responsibly Proactive risk and fund management, alongside passive interest generation and strict statutory compliance, demonstrate rigorous oversight to the Croton-Harmon community. Thank you! CROTON.© HARMON