• 703.99


    Code No.  703.99

    FISCAL MANAGEMENT

    Uncommitted General Fund Balance

    The district’s goal for its uncommitted general fund balance at June 30 is 10-15 percent of that year’s revenue.  To reach the minimum 10 percent level and to sustain a solvency ratio of 10 percent, the district shall certify annually a cash reserve levy that will enable it to maintain an uncommitted general fund balance between  10 and 15 percent, and to sustain it.  A fund balance in the 10-15 percent range enables the district to achieve the highest possible credit ratings from rating agencies, such as Moody’s and Standard and Poor’s.  The higher credit ratings are directly related to lower interest rates on long-term debt issued by the district.  Sufficient fund balances also (1) eliminate short-term borrowings and related interest expense in the general fund and (2) protects the district if the State of Iowa reduces funding mid-year.

    A report on meeting this target will be made annually to the Board.

    Unspent Balance

    The unspent balance is the remaining legal spending authority at the end of the fiscal year.  The district’s unrestricted unspent balance at June 30 shall be a range of 5 to 10 percent of its general fund budget (spending) authority.  Maintaining and adequate unspent balance provides legal authority to spend the unrestricted, uncommitted fund balance.  A report on meeting this target will be made annually to the Board. 

    Allowable Growth

    The district shall solicit from the School Budget Review Committee additional allowable growth where it may be available for items such as special education deficit, increasing enrollment, English as a Second Language, and any other lawful purposes.  Any award of allowable growth will be levied as a cash reserve levy, in full, in the next available budget year.  For recurring program deficits that are predictable and estimable, the district shall levy in advance for the immediately succeeding year as part of the general cash reserve levy.

    Approved:  05/23/2007

    Reviewed:  01/18/2007, 08/18/2016

    Revised:     09/22/2011