ANSWER:

The district's savings account. Money the district uses to pay expenses when the tax receipts are late.

The Board of Education adopted a goal to maintain at least 25% in reserves. This is necessary as tax receipts, which make up over 85% of our yearly revenues, are disbursed from the County Treasurer to us only twice a year. They are often months late with the distribution. Since District bills need to be paid monthly and payroll semi-monthly, money needs to be on hand to cover these expenses. If money is not available, short-term borrowings need to be made that cost the district interest thus deleting our cash even more. The 2004-2005 reserve goal minimum is $4,000,000.

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