Agenda - 11-12-2024; 3 - Additional Discussion on School Capital Funding Policy

Browse Search

5 Attachment A November 12, 2024 Other Capital Uses will be authorized by function or purpose, which group similar expenses into broad categories like "technology" or "athletic improvements". These will be allocated by school district staff each year through the Capital Investment Plan. Oversight and Amendments Per Statute § 115C-433 (b) districts may increase or decrease specific project budgets by a specified percentage as adopted by the BoCC. This policy specifies that the districts must seek prior approval to amend the county allocations for any allocations approved by purpose, function or project by a cumulative amount of 15% or more. The districts are still expected to submit budget amendments to county staff to rectify all changes throughout the year and reconcile both district's general ledgers to meet the statutory preaudit requirements. In addition, for all Major Projects, a working group of school and county staff should meet monthly to review progress on these major construction projects and their cost projections. This working group will include county budget staff and management, as well as school district operations and construction personnel. This working group will ensure that the county staff can advise the board on any change orders, delays or cost overruns. The construction allocation for Major Projects should be understood to be inclusive of all costs required to complete the construction of the facility, including owner's contingency, furniture, fixtures, and equipment. If any major projects require additional budget, above what can be resolved within the initial construction budget, the project budget will need to be amended by the Board of County Commissioners. Each district is required to identify funds within their share of bond and CIP funds to offset the increase. This will be presented in a board business meeting, and school staff should provide adequate notice based on the County's agenda process. School staff will need to identify the cause of the budget overage and detail the potential impact on the reallocation of their funding on other major projects and high priority needs. Emergencies This policy recognizes that adopting a project-based allocation method for High Priority Needs could restrict the districts' ability to react to sudden failures or emergency situations. Therefore, when emergencies or sudden failures occur, school staff are to provide a written request for immediate reallocation to the County Manager and the Budget Director. The county will then reallocate funds at the next available board meeting. Enrollment and Capacity The county will annually review student growth and enrollment as it relates to school capacity. The county is committed to provide adequate educational space for all levels of education in both districts. However, due to the significant investment already allocated towards school construction during the FY 25-35 period, the County will likely not be able to finance another significant expansion. District Staff should propose funding any expansion in capacity by redirecting Major Project or High Priority Needs funds prior to requesting additional funding.