Residents to consider proposal to establish capital reserve fund May 16

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When they go to the polls on Tuesday, May 16, qualified residents of the Broadalbin-Perth Central School District will consider a proposition to establish a capital reserve fund.

If the proposition is approved by voters, Broadalbin-Perth would establish a capital reserve fund that unspent money could be put into at the end of a fiscal year, subject to the approval of the Board of Education. This money would be set aside to help cover the local share of future capital projects. New York state pays approximately 83% of B-P’s capital project costs through state building aid, leaving the remaining 17% of capital project costs as the local share.

There is no increase to the tax levy associated with this proposition. The capital reserve would only be funded if there is unspent money left in the budget at the end of a fiscal year, and only if the Board of Education votes to allocate some or all of that unspent money to the capital reserve. The maximum amount that could be put into the proposed capital reserve is $10,000,000 over 10 years.

A capital reserve is one of many types of special savings accounts that school districts can have to set money aside to pay for future expenses. Unlike other types of reserves, a capital reserve requires voter approval both to establish the reserve and to expend money from the reserve.