WEBSTER CENTRAL SCHOOL DISTRICT Brian Freeman, Assistant Superintendent for Business 119 South Avenue, Webster, NY 14580 (585) 216-0017 brian_freeman@webstercsd.org
1/23/2026 To: Brian Neenan, Superintendent From: Brian Freeman, Assistant Superintendent for Business Re: Capital Reserve Renewal Cc: Board of Education The Webster Central School District has a long-standing history of prudent financial management through the strategic use of capital reserves. As our current capital reserve has reached its established maximum funding level, it is recommended that the Board of Education put forth a proposition to the voters in May 2026 to establish a new Capital Reserve Fund in the amount of $45 million with a 10-year term. This will ensure the District continues to have the capacity for long-term facilities maintenance and large-scale renovations while maximizing State Aid and minimizing taxpayer impact. The District’s existing capital reserve, authorized at $15 million, has served as a vital tool for fiscal stability. As of June 30, 2025, the balance stood at $5,304,133, following a $10 million transfer to fund the 2023 Capital Project. This reserve is now fully funded relative to its voter-authorized limit. Under Education Law §3651, these funds are restricted for the construction, reconstruction, and improvement of District facilities. By using saved cash rather than borrowing, the District achieves two primary financial advantages. Cash financing eliminates the interest charges and debt issuance costs associated with traditional bonding. The current NYS building aid formula provides aid on cash expenditures as if the District had borrowed. Consequently, the District receives state aid on "avoided" interest, creating a future revenue stream to offset project costs. While the previous $15 million limit was effective, a district managing 14 different buildings and facilities requires a more robust reserve to address modern infrastructure needs. The average total capital reserve balance for school districts in Monroe County is approximately 16% of their operating budgets. For Webster, a target capital reserve of roughly $45 million is necessary to align with regional standards and maintain adequate capital planning capacity. A $45 million reserve over a 10-year term allows the District to save for significant upcoming renovations and repairs without the need for sudden, large-scale borrowing or tax spikes. This strategy and the benefits of state aid on avoided interest were reviewed and discussed with the District's external auditors and the Audit Committee in the fall, receiving support as a sound financial practice. I recommend the Board of Education authorize the necessary legal notices and ballot language to present this $45 million Capital Reserve Fund to the voters in May 2026. This action ensures that the District remains a good steward of taxpayer dollars while maintaining high-quality facilities for our students and community.
MEETING OF THE BOARD OF EDUCATION OF THE WEBSTER CENTRAL SCHOOL DISTRICT IN THE COUNTIES OF MONROE AND WAYNE, NEW YORK FEBRUARY 3, 2026
A regular meeting of the Board of Education of the Webster Central School District (the “School District”) in the Counties of Monroe and Wayne, New York was held at the Webster Central School District, on February 3, 2026, 2nd Floor Professional Development Center, 119 South Avenue, Webster, New York, at 5:00 o’clock p.m. (Prevailing Time).
There were present:
There were absent:
Others Also Present:
It was moved by _____ and seconded by _____ that the following resolutions be adopted:
BE IT RESOLVED, ON FEBRUARY 3, 2026, BY THE BOARD OF EDUCATION OF THE WEBSTER CENTRAL SCHOOL DISTRICT AS FOLLOWS: Section 1. The Webster Central School District, as a local agency pursuant to the New York State Environmental Quality Review Act (“SEQRA”), ECL Section 8-0101, et seq., and implementing regulations, 6 NYCRR Part 617 (the “Regulations”), having reviewed the impact of the establishing a capital reserve upon the environment, hereby determines that such action constitutes a “Type II Action” under the Regulations and is not subject to review under SEQRA. Section 2. The proposition hereinafter set forth is hereby authorized to be submitted for the approval of the qualified voters at the annual school district election to be held in said School District on May 19, 2026. Section 3. The School District Clerk is hereby authorized and directed to include as a part of the notice of the annual district meeting and election notice with reference to the submission of said proposition in substantially the following form: NOTICE IS HEREBY FURTHER GIVEN that at said annual election to be held on May 19, 2026, the following proposition will be submitted:
CAPITAL RESERVE PROPOSITION Shall the following resolution be adopted: RESOLVED, that the Board of Education of the Webster Central School District, Monroe and Wayne Counties, New York, is hereby authorized to establish a new ten-year capital reserve pursuant to Section 3651 of the Education Law in an amount not to exceed $45,000,000 to be used for renovations and additions to all District facilities, including purchase of equipment, technology upgrades, classroom equipment and/or school infrastructure equipment, site development, storm and sanitary sewer, driveways, and parking lots, such reserve fund to be funded from (i) a transfer of the unexpended balance currently on deposit in the District’s existing reserve fund approved by the District’s voters in May of 2016, to be terminated if this proposition is approved, (ii) year-end budget surplus funds known as unassigned fund balance, as available, for the fiscal year ended June 30, 2026 and each fiscal year thereafter for the term of the reserve fund, (iii) transfers of excess monies from Board of Education designated reserves, (iv) amounts from budgetary appropriations from time to time, and (v) New York State Aid received and made available by the Board of Education from time to time, all as permitted by law.
Section 4. This resolution shall take effect immediately. The adoption of the foregoing resolution was duly put to a vote on roll call, which resulted as follows: [Board Member] [Board Member] [Board Member] [Board Member] [Board Member] [Board Member] [Board Member]
Voting Voting Voting Voting Voting Voting Voting
[Yes/No] [Yes/No] [Yes/No] [Yes/No] [Yes/No] [Yes/No] [Yes/No]
The resolution was declared adopted.
State of New York ) ) ss. County of Monroe ) I, the undersigned District Clerk of the Webster Central School District, in the Counties of Monroe and Wayne, State of New York, HEREBY CERTIFY: That I have compared the annexed extract from the minutes of a meeting of the Board of Education of said School District, including the resolution contained therein, held on February 3, 2026, with the original thereof on file in my office, and that the same is a true, complete, and correct copy thereof and of the whole of said original minutes so far as the same relates to the subject matters therein referred to.
I FURTHER CERTIFY that all members of said Board had due notice of said meeting.
I FURTHER CERTIFY that, pursuant to Section 103 of the Public Officers Law (Open Meetings Law) said meeting was open to the general public. I FURTHER CERTIFY that, prior, to the time of said meeting, I duly caused a public notice of the time and place of said meeting to be given to the following newspapers and/or other news media as follows:
Newspaper and/or Other News Media
Date Given
Webster Herald
__________
I FURTHER CERTIFY that prior to the time of said meeting, I duly caused public notice of the time and place of said meeting to be conspicuously posted in the following designated public location(s) on the following dates:
Designated Location(s) of Posted Notice
Date of Posting
District Office Bulletin Board
__________
Webster Central School District Website
__________
IN WITNESS WHEREOF, I have hereunto set my hand and seal and affixed the corporate seal of the Webster Central School District, Counties of Monroe and Wayne, New York, this 3rd day of February, 2026.
[SEAL]
____________________________ Heather Murphy, District Clerk