FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
title
MOTION to appropriate and transfer the Board of Education Fiscal Year 2021/2022 audited surplus of $448,253 from unrestricted fund balance as follows:
* $381,015 to Account #21070101-58250 (BOE Reserve Fund) in accordance with "Resolution Creating a Funding Mechanism for Making Annual Appropriations to a Capital Reserve Fund for the Board of Education" adopted on September 28, 1988; and
* $67,238 to Account #21070101-58262 (Track & Field Rental Reserve) (15% when surplus exceeds $250,000) in accordance with "Resolution Regarding The Establishment Of An Account For The Revenues Received From Leasing the Ledyard High School Multi-Use Facility" adopted on April 22, 2020.
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Background:
See attached resolutions
Department Comment/Recommendation:
Finance Director Comment/Recommendation:
Account #21070101-58250 (BOE Reserve Fund) currently has an unencumbered balance of $13,271
Account #21070101-58262 (Track & Field Rental Reserve) currently has an unencumbered balance of $85,664
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Mayor Comment/Recommendation:
I support this motion and hope that in the future, the BoE will realize revenues as projected for the use of the turf field to other entities.
Additional Background/Notes:
The Town Council adopted a resolution on September 28, 1988 that established a separate line item within the Town Capital Reserve Fund for Capital Expenditures for the Board of Education. Per the resolution, all surplus funds returned to the General Fund by the Board of Education are to be deposited in the Capital Reserve Fund for the Board of Education. Surplus funds shall be defined as reserves accumulated by the Board of Education according to their year-end audit statement.
Department Comment/Recommendation:
The General Fund ended Fiscal Year 21-22 with an overall operating deficit of $43,375. The deficit reduced fund balance at year end to $4,971,207. The biggest factor leading to the deficit was the under budge...
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