SAU 21 Article 6: Fund Balance Retention (No New Taxes)

To see if the School District will vote to authorize, indefinitely until rescinded, to retain year-end unassigned general funds in an amount not to exceed, in any fiscal year, 5 percent of the current fiscal year’s net assessment, in accordance with RS198:4-b, II. (Majority vote required)

What it means: The School Board proposes the adoption of a fund balance retention to safeguard the District from unusual circumstances that may result in potential over-expenditure of appropriations, or to help stabilize the tax rate by smoothing out appropriations and fluctuations in revenue over time.

Those in favor say: The fund balance retention warrant article will allow the school district to retain up to 5% of the annual operating budget as a contingency in the event of emergency or over-expenditure and/or to assist in return of fund balance for tax rate setting purposes.

 Those opposed say: No one spoke against this Article at Deliberative Session.

Fiscal Impact: There is no direct tax impact for this Article.