The District’s goal for its undesignated, unreserved general fund balance at June 30 is 5% to 15% of that year’s revenue. The District will certify annually a cash reserve levy if needed to reach and/or sustain the desired fund balance. A fund balance of 5% to 15% enables the District to achieve the highest possible credit ratings from rating agencies, such as Moody’s and Standard & Poors. Higher credit ratings are directly related to lower interest rates on long-term debt issued by the District. Sufficient fund balances also eliminate short-term borrowings and related interest expense in the general fund and protect the District if the State of Iowa reduces funding mid-year. A report on meeting this target will be made annually to the Board.
The unspent budget authority is the remaining legal spending authority at the end of the fiscal year. The District’s unspent budget authority at June 30 shall be no less than $1,000 per student. Maintaining an adequate unspent budget authority provides legal authority to spend the undesignated, unreserved fund balance. A report on meeting this target will be made annually to the Board.
This District shall solicit from the School Budget Review Committee additional allowable growth where it may be available for items such as special education deficit, increasing enrollment, English as a Second Language, and any other lawful purposes. Any award of allowable growth will be levied as a cash reserve levy, in full, in the next available budget year. For recurring program deficits that are predictable, the District shall levy in advance for the immediately succeeding year as part of the general cash reserve levy.
Approved: December 2019 Reviewed November 2022 Revised