Half Hollow Hills
Capital Reserve Fund
At the Budget Vote and Board of Education Trustees Election on Tuesday, May 21, 2024, the residents of the Half Hollow Hills Central School District will have the opportunity to vote on a proposition to establish a capital reserve fund for improvements to buildings.
Reserve funds are separate accounts set up to finance various District expenses, and can be described as a savings account for a specific purpose. They enable a school district to put away money over time in order to finance expenses later, without having to borrow money. This eliminates the borrowing expense (fees and interest) that compounds on top of the money required to complete a project, making the total cost of the project much more expensive.
When thinking about reserve funds in comparison to a household budget, imagine you need to get your kitchen remodeled and you know you will not have the money in your budget to simply get that done immediately. Instead of borrowing by taking out a personal loan, a home equity loan or using a credit card, you would plan for the expense by setting aside money in a separate savings account so, over time, you could complete the project with available cash.
The creation of this reserve fund would allow for any additional unanticipated revenue received and unspent budget dollars remaining at the end of a fiscal year to have the option of being set aside for this purpose. The establishment of reserve funds gives the District an avenue to responsibly save money for projects that are anticipated to be required in the future.
The District is proposing the creation of the following capital reserve fund:
- Building Improvements Capital Reserve Fund - to finance the cost of District-wide improvements, renovations, construction, reconstruction, purchases and/or alterations to bathrooms, ceilings, lighting, interior flooring, windows, HVAC and building mechanical systems, parking lots and sidewalks, including original furnishings, equipment, machinery, apparatus, accessories, planning costs, site improvements, and incidental improvements and expenses in connection therewith.
- The ultimate amount of money that may be set aside into this reserve fund shall be $30 million.
- The maximum probable term during which this reserve can be funded will be 20 years, meaning no new funds can be added after June 30, 2045.
- Capital reserve funds are available to cover, in whole or in part, the cost of any object or purpose for which a school district may issue bonds pursuant to the Local Finance Law.
- Voter approval is required to establish such funds.
- Funds may be expended only with voter approval and only for the specific purpose for which the fund was established.
- Funds may be transferred with voter approval to other funds established pursuant to Section 3651 of the Education Law.
- The fund may be liquidated if voters determine the original purpose for which the fund was established is no longer needed.
- How does this help me, a taxpayer?
- How is this different than borrowing money?
- How much will this cost me?
- How much would it cost if we borrowed?
- Why $30 million?
- Why not borrow money and get it all done at once?
- Where does the money come from?
- What projects will the District complete with this money?
- What will I see when I come to vote?
- Why do I have to vote on this now?
- Why establish a capital reserve now?
- Don’t we have other reserves the District can use for capital projects?
- Why do some districts have multiple capital reserves?
- Full proposition language
- Presentations about the propositions
- State Comptroller Guide on Reserve Funds
For more information about Capital Reserves, please contact Anne Marie Marrone Caliendo, Assistant Superintendent for Business at 631-592-3030.
Please follow the links below to check if you are registered to vote and find out where you vote.