All funds not encumbered or spent by the end of the fiscal year (June 30th) shall be considered to be surplus funds for the year just ended. All surplus funds will be considered a part of the School Operating Fund Balance and will be maintained in the account records of the Lynchburg City Schools for the purposes of underwriting any occasional shortfalls from any of the various budgetary categories of direct State funding support as well as other applications, all based upon the required expenditure approval of the School Board. For information purposes, the Lynchburg City School Board will advise city council annually as to the amount of funding in such School Operating Fund Balance as of July 1 of each year so that Lynchburg City Council can reappropriate the unexpended funds to the city schools Operating Fund Balance.
Letter of Agreement between Lynchburg City Council and Lynchburg Board of School Trustees
"In accordance with the attached, duly-adopted Resolution, the Lynchburg City Council and the Lynchburg Board of School Trustees hereby agree that the creation and maintenance of a School Operating Fund Balance is desirable to the long-range financial interests of both entities and, even more importantly, to the citizens and the community which both bodies represent. Accordingly, the City Council supports such approach by indicating its willingness to reappropriate to such Fund Balance and duly-budgeted, non-debt service local funding which the Schools manage to avoid spending by the close of each fiscal year. Similarly, the School Board expresses its intention of continuing to exercise cautiousness in the expenditure of all budgeted, appropriated local funding to the Schools, and further understands that any such unexpended, non-debt service monies would become part of a Schools Operating Fund Balance.
The separate, above-mentioned Fund Balance would be maintained in the accounting records of the Lynchburg City Schools for the purpose of underwriting any occasional shortfalls from any of the various budgetary categories of direct State funding support as well as other applications, all based upon the required expenditure approval of the School Board. For informational purposes, the Lynchburg City School Board would advise City Council annually as to amount of funding in such School Operating Fund Balance as of July 1 of each fiscal year; and such information would be reflected in the overall financial information of the City of Lynchburg along with other customary fiscal data for the Lynchburg City Schools.
Based upon this understanding, the creation of the above-referenced Fund Balance would occur promptly and would include any unexpended, duly-budgeted, non-debt service local funding at the close of the current 1992-1993 fiscal year. It is understood that such practice would remain active in the years thereafter."
Signed by Julian R. Adams, mayor, for Lynchburg City Council, December 13, 1993. Signed by Julius A. Sigler, Jr., chairman, for Lynchburg City School Board, December 20, 1993.
Adopted by School Board: June 5, 1973
Revised by School Board: January 4, 2000
Revised by School Board: November 6, 2019
Code of Va., § 22.1-90. § 22.1-100.