To:

Members, Board of Education

From:

Maurice O. Green, Superintendent
Sharon S. Ozment, Chief Financial Officer

Date:

June 23, 2009

RE:

Activity Bus Replacement Fee

On October 11, 2005, the Board of Education voted to approve an increase of twenty-five cents to the activity mileage fee to generate an activity bus replacement account.  Since that date no action has been taken to reserve funds for that purpose and the fee has become a part of the district’s undesignated fund balance at the end of each fiscal year. In order for these funds to be available to purchase activity buses from the capital outlay fund, the Board of Education must take action to reserve $366,115 in fund balance in the General Fund (Local Current Expense Fund) so as to legally segregate these funds for a specific purpose. Reservations/designations of fund balance in the governmental fund financial statements represent amounts that are not available for appropriation for subsequent year’s expenditures because management has identified a specific purpose for these funds in the subsequent fiscal year.

RECOMMENDATION: The administration requests board approval to reserve $366,115 in fund balance in the General Fund for the fiscal year ending June 30, 2009 for the purchase of activity buses.