The School district needs to maintain adequate financial cash reserves in order to demonstrate a strong fiscal position, solid financial planning, and sound fiscal management. The financial cash reserve portion of fund balance should be at a level that supports attaining district long-range goals for the community’s children. The district recognizes the importance of maintaining a prudent fund balance in the general fund to ensure operational cash flow needs are met, to set aside resources for known obligations and to help protect against unforeseen circumstances.
CSD Board Policy 6022 directs the District to present an annual budget with sufficient balance to meet the intent above. The District budget process uses a figure of 10% of budgeted expenditures as the annual fund balance target. This target is meant to ensure that sufficient balance remains to support long-range planning and unforeseen circumstances.
The below chart shows the ending General Fund balance for 2019-20, with future projected surplus/deficits applied in out-years. This is representative of flattening revenues and increasing expenditures, but does not yet factor savings/costs due to COVID. It highlights the need for prudent expenditure controls in out-years to maintain a sufficient fund balance.
