From Dormant Reserves to Dynamic Planning

From Dormant Reserves to Dynamic Planning:  Reimagining Financial Strategy at Second City Heights Academy

Like many educational institutions, City Heights Academy prides itself on academic excellence, strong community ties, and prudent day-to-day financial management. However, beneath this operational success lay a quietly growing problem: the school’s reserve funds were earning almost nothing. Parked in a traditional savings account that barely outpaced inflation, these funds—earmarked for future capital improvements, emergency needs, and major infrastructure repairs—were slowly losing value.

For years, leadership at Second City Heights Academy focused on keeping operational budgets tight, maintaining classrooms and facilities, and supporting faculty without disruption. But the investment component of their reserves remained untouched, more so out of caution, than strategy. The prevailing sentiment was, “We can’t afford to lose it, so let’s not move it.” But as inflation crept higher and the costs of building repairs, transportation upgrades, and technology replacement increased, the impact of that passive approach became clear: their reserves were not growing fast enough to meet future needs.

Each budget season brought increasingly difficult questions. Should the school defer a needed HVAC replacement or delay investment in new science lab equipment? Should student programs be scaled back to preserve capital? Could they continue to provide the same level of education without finding new financial solutions? These challenges created mounting pressure on the board of trustees, finance committee and administrative team. Long-term sustainability was becoming more uncertain, even as enrollment and community expectations continued to grow.

A Turning Point: Building Firm Financial Foundations and a Strategic Partnership

Realizing the need for a more proactive financial strategy, the Academy’s leadership began exploring solutions. 

The March Group’s Goal began with a comprehensive evaluation of Second City Heights Academy’s financial landscape. This included a review of the school’s reserve goals, capital improvement timelines, risk tolerance, and liquidity needs. They collaborated with school leaders to develop a customized Investment Policy Statement (IPS) and document a formal strategy that would become the foundation for how reserve funds would be invested, monitored, and aligned with the school’s mission and planning cycles.

Key priorities of the new reserve strategy included:

• Preserving principal while perusing meaningful returns: Instead of allowing the funds to sit idle, the strategy sought low-risk, diversified investment opportunities tailored to a public education environment.
• Timing investments with anticipated capital expenditures: The reserve fund was segmented by specific timelines, so money would be available precisely when needed for upcoming projects—such as roof repairs, classroom renovations, or new transportation equipment.
• Enhancing financial forecasting and stakeholder transparency: By building a structured, documented approach to investment, the school could now provide clear updates to school board members, parents, and community partners, reinforcing trust in leadership and fiscal responsibility.

The Goal: From Passive Holding to Purpose-Driven Growth

The overall goal for Second City Heights Academy was to generate measurable improvements in reserve growth while maintaining relative safety. The secondary goal was restructuring the investment portfolio to provide a balance of liquidity, capital preservation, and modest growth.  With this structured approach the academy strives to outpace inflation while preserving access for emergencies or planned projects. 

This framework should enable the school to plan expenditures with greater confidence. Instead of delaying improvements or cutting program budgets, leadership has a clear roadmap for future financial needs. 

The shift to a “Needs-Based Analysis” process can also influence governance. Board meetings can now transition from reactive cost management to discussions centered on long-term priorities such as expanding STEAM initiatives, investing in sustainable infrastructure, and modernizing facilities. Stakeholders including teachers, staff, and parents should be able to observe benefits of disciplined financial planning, contributing to greater community confidence in the institution’s fiscal stewardship.

A Blueprint for Other Schools

Second City Heights Academy’s story is not unique, but their solution was. Too often, schools treat reserve funds as an untouchable asset, fearing volatility more than stagnation. But in doing so, they miss the opportunity to turn reserves into a strategic tool, one that can defend against uncertainty while actively supporting the school’s growth.

By partnering with The March Group, City Heights Academy redefined its approach to financial planning. The reserve fund is no longer a static backstop, it is a living breathing engine for sustainability, empowerment, and educational excellence.

For school systems across the country facing similar crossroads, the message is clear: you do not need to risk everything to improve outcomes. With the right guidance, your financial future and your students’ can be placed on stronger, smarter grounds.