There are three main reasons to carry adequate balances for operating funds. July - Dec. This district relies heavily on local tax collections. Retaining appropriated reserves insures that the district will not have to borrow to meet December expenses. Funds obtained through the sale of bonds for capital projects must be spent on identified projects. Receipts form an April 1999 bond issue will have been expended by the summer of 2001.
State regulations recognize that a one year balance is appropriate in the debt payment category.
A bequest for Etta Miller estate specifies that these monies be used only for the construction of a fine arts facility. This understanding has been formalized by subsequent legal opinions. Consistently spending toward lower balances threatens the stability of the district. It would be unwise to commit further reserves to continuing expenditures. Any balances in the Capital Projects, Debt Service or Etta S. Miller funds are completely restricted for designated purposes.