Board approves $400,000 deposit to capital improvement trust (Fund 46) to pre‑fund future projects

The Germantown School District Board on July 15 voted to deposit $400,000 into its Fund 46 capital improvement trust, a vehicle the district uses to accumulate funds for long-range capital projects. The finance committee presented background on Fund 46 and the way the state treats deposits and large capital expenditures. The committee explained the account allows districts to spread savings over multiple years rather than record a single large capital purchase that could reduce state aid in future years. The speaker noted the state created Fund 46 in 2015 to give negatively aided districts an option to save for capital needs; the district established its Fund 46 with an initial $1 deposit in 2020 to start the statutory clock for eligibility. The motion to deposit $400,000 into Fund 46 was approved by the board by voice vote with no member recorded as opposed. The finance presentation said the deposit will raise Fund 46 to roughly $900,000 (district balance as of June 16 was cited at about $500,000) and that Fund 46 can be spent only on items enumerated in the district's 10-year capital plan; the district will update that plan following its new long-range facilities assessment. Officials described the deposit as a strategic, long-term move: small annual deposits reduce the percentage impact on state aid in any single year and allow the district to save for larger projects (for example, building expansion or major renovations) without a single-year spike in capital spending. The presentation noted that while deposits are part of shared-cost accounting, using the trust in this manner can be less damaging to a district's long-term state-aid picture than recording one large capital outlay in a single fiscal year. Board members asked whether the funds could later be used to offset referendum costs; administrators confirmed Fund 46 balances could be applied to capital projects and could reduce amounts financed by a referendum, but any spending must match the approved 10-year capital plan. A motion to approve the deposit passed unanimously by voice vote.