Half Hollow Hills Roof Replacement Capital Reserve Fund

At the Budget Vote and Board of Education Trustees Election on Tuesday, May 17, 2022, 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 roof replacements.

Reserve funds are separate accounts set up to finance various District expenses, and can been 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. 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:

• Roof Replacement Reserve Fund - to finance the cost of renovations, construction, reconstruction and improvements to roofs across the District.
  • The maximum probable term for this reserve fund will be 20 years, meaning it will expire on June 30, 2042.
  • The ultimate amount of money that may be set aside into this reserve fund shall be $40 million.

For more information, please visit: www.hhh.k12.ny.us/capitalreserve.