Audit and Finance committee moves reallocation items forward, explains legal limits on phase‑4 sales-tax funds

The Audit and Finance Committee reported to the Committee of the Whole that it advanced several reallocation proposals to the full board and reiterated statutory limits on using phase‑4 education capital‑improvement sales‑tax funds, saying those revenues may be used for projects specifically named in the phase‑4 referendum or for capital maintenance but not for new building additions that were not listed.

That clarification matters because community members and trustees asked whether leftover or reallocated phase‑4 funds could pay for additions such as a multipurpose‑room extension at Frierson Elementary; staff said state law and Department of Revenue rules restrict how the district may reassign those dollars.

Committee chair Mrs. Watley told trustees the Audit and Finance Committee had considered multiple reallocation proposals, including a D4 stadium turf project and classroom expansion requests such as trailers at Brierson. “One thing I definitely wanted to bring out to the Board itself was on item the 2017‑22 phase 4 reallocation resolution,” she said, noting staff are working to close out that phase and that some proposals are funded by interest earned on the initiative rather than by the sales tax principal.

Facilities staff explained the statutory distinction between phase‑4 and phase‑5 funds. “The phase 4 project had distinct projects, specifically named projects that could be funded, or projects for capital maintenance, not building improvements,” said facilities staff member Mr. Barrowie, adding that Frierson’s multipurpose‑room extension is considered a new project and was not on the phase‑4 list of allowable projects. Barrowie said the district has a list of 37 new projects for phase‑5 valued at $470,000,000 and that 13 elementary schools do not currently have multipurpose rooms; some such projects can be funded only through a future referendum or phase‑5 allocations if they were listed.

Trustees asked whether funds remaining from completed phase‑4 projects could be repurposed. Barrowie and other staff said excess phase‑4 funds can either be applied to projects that were specifically listed in phase‑4 or used for capital maintenance or capital IT — but cannot be applied to new unlisted building additions without running afoul of the referendum and state rules.

Board members also discussed timing for a possible future referendum. Prentiss explained that the district’s current sales‑tax program runs 2023–2028 and, under state rules, the earliest a new ballot measure could be placed is 2026; the Department of Elections requires a resolution by Aug. 15 of the year the question would be placed on the ballot. “The earliest that CCSD could put a ballot measure out would be 2026,” Prentiss said; staff added that formal public outreach and facility condition assessments are already under way in preparation for future planning.

Committee members reported three reallocation action items will move to the regular board meeting for vote; specific approvals were not completed in the Committee of the Whole. Trustees who asked about a contested appropriation — a proposed $3,200,000 allocation for a Frierson multipurpose‑room extension — were told the item is not eligible for phase‑4 funds and would need to be considered through phase‑5 or a future referendum.

The committee also provided an update on an urgent expansion: RB Sal’s expansion project has begun, with interim trailers added to help classrooms while the permanent project is scheduled for completion in 2027; the project is programmed to raise capacity from about 1,440 to 1,977 seats. Staff said the interim reallocation covers trailers and temporary classroom space until construction is finished.