The Board of Education voted 7-2 to approve funding for Capital Reserve No. 3, a fund the district plans to use as it develops a potential capital project for voter consideration. The motion to approve funding for Capital Reserve No. 3 was made by Jim and seconded by Brent Bridal; the resolution passed by a 7-to-2 margin.

The vote follows more than an hour of discussion in which board members debated whether to allocate the district’s year-end surplus to capital reserves or keep the money available for academic programming or potential tax relief. Board member Christian said he would "probably be voting against this resolution" and argued for returning some funds to taxpayers or holding money for program needs. Christian noted that many districts exceed the four percent guideline and said, "if we're not gonna spend the money on the program … perhaps we should consider … keeping at least some of that money available for that purpose."

Supporters said funding the reserve prepares the district to present a capital project to voters without a proposed tax increase. Brent Bridal urged using the path the district has used before: fund a capital reserve and then seek voter approval for a project structured to avoid a tax increase, noting the community previously supported capital reserves. District finance staff member Mr. Fink clarified reserve accounting rules and explained that overages above the four percent guideline must be allocated to reserve funds and asked board members whether they intended to use the funds to reduce the levy next year.

Discussion also touched on past bond efforts and local practice. A board member noted past attempts to run bond measures in the traditional way had failed locally, and that a reserve-funded approach had previously enabled a successful capital project with no tax increase. Christian pressed the point that voters should have clarity and suggested that, where feasible, returning funds to taxpayers or reserving some for programmatic needs could be preferable.

Formal action: the board passed the resolution to fund Capital Reserve No. 3. Motion: "Resolution to approve funding of Capital Reserve No. 3." Mover: Jim. Second: Brent Bridal. Vote tally: yes 7, no 2. Board members who stated opposition during the discussion and are recorded as voting no were Christian and Eleanor. The motion passed 7–2.

The board directed staff to continue work on capital planning and to bring further detail on proposed projects and reserve accounting at future meetings so that the board can determine how to proceed with a potential voter measure.

The board also added and separately approved a consent-agenda item authorizing the board president and interim superintendent to communicate the board’s determination to the Cornwall Teachers Association regarding a Stage 3 grievance; that addition was handled earlier in the meeting and was approved by voice/roll-call as recorded during the consent portion of the meeting.

Board members emphasized that next steps include finalizing the capital project scope and costs and ensuring that any use of reserves conforms with state and auditor guidance. Several members asked staff to clarify whether and how unspent funds could be applied to reduce next year’s levy, and staff said they would consult auditors and return with a formal answer.