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Board approves Measure B2 budget adjustments to cover rising construction costs and reallocate carryover funds
Summary
Trustees approved staff recommendations to reallocate Measure B2 funds and use part of the program reserve after the district realized higher interest income and greater-than-expected carryover expenditures; adjustments cover gym/locker modernization, VAPA/TE classroom work, and site security fencing.
San Rafael City Schools trustees approved budget adjustments May 19 for the Measure B2 high school district program after staff reported higher interest income and the need to align project budgets with contracts and increased construction costs.
Bill Savage of the district’s construction management team said the district had realized substantially higher interest income on bond funds held with the county and that some earlier carryover from the 2015 bond was consumed to complete outstanding projects. "We have increased income from bond funds on deposit," Savage said, and explained the program needed to realign budgets to cover scope already in contracts and to prepare for continued cost escalation in construction markets.
Key adjustments approved by the board include: moving funds into the Centerfall gym, aquatics and locker modernization project to cover unexpected underground and structural repairs and additional soil mitigation; transferring $5 million from a campus modernization line into the VAPA/TE modernization contract so that classroom modernization can be completed under a single construction contract; deferring a rooftop mechanical screen at a science building as lower‑priority work; and absorbing an $800,000 contract increase at Terralinda High after a planned modular vendor was unable to meet plumbing requirements and the district shifted to masonry construction.
Staff also proposed using half of the program reserve as a prudent buffer against ongoing escalation; after the transfer the high school program would retain an estimated $2.4 million in reserve. Project managers told the board they had sought competitive bond pricing and sold a series earlier this year that produced favorable terms, allowing the district to bring additional funds forward for use in the program.
Trustees asked detailed questions about specific scopes and roofing work; staff said the adjustments align project budgets with the work underway and will be reflected in updated project summaries.
