District 5 Reserve Fund Level to Increase

Lexington-Richland 5 school board has revised its policy concerning the percentage of funds the district would place in its reserve account. 

At the board's recent meeting, five of the board's seven members approved changing the policy to reflect an increase in the percentage from 8.5 percent to a range from 15 to 18 percent.

The district already maintained the fund at a higher percentage than the 8.5 percent the policy called for.

The reserve fund or "fund balance" can be used for operating during months when "minimal taxes are collected" and can be considered for other events such as mid-year budget cuts. The fund should not be used for recurring budget items. The fund balance is also monitored by credit rating agencies.

Those supporting the change said it was a sound fiscal policy and that it helps to have the money should the district have to face tough financial times. 

Board members Jim Turner and Kim Murphy voted against the policy revision.

Murphy said the 8.5 percent was more than adequate.

She said the district should return the money to the taxpayers when more revenue comes in beyond what is needed to pay operating costs. 

Board member Ed White disagreed, saying the fund helped the district get through budget cuts and the economy crashing.

"We would not have survived (without the reserve fund)," White said. 

In addition to being a fund to help school districts pay for nonrecurring costs, the fund level also helps when interest rates on bond debt is factored, school officials said. 

Board briefs

• Dr. Christina Melton, the district's director of elementary education, has been hired as chief instructional services officer. Melton will begin her new position when Helen Anderson retires at the end of the school year.
• The board approved a property and facilities use agreement with the Irmo-Chapin Recreation Commission.
• The board approved a change order request for technology infrastructure at Spring Hill High in the amount of $213,210 and phase II of the school's staffing plan.
• The board also discussed two resolutions for technology equipment and the sale of 8 percent capital bonds; a technology task force report, the 2013-2014 capital budget and course requests for Spring Hill. (see attached.)