Supervisors review cost overrun for elementary school air-handling project; staff to handle funding in FY2026 budget

The Madison County Board of Supervisors reviewed a low-bid cost overrun on an elementary school air-handling and controller replacement project and considered whether to appropriate additional capital funds immediately or treat the gap in the FY2026 budget.

County staff said the school division bid solicitation produced a single bidder whose price exceeded the FY2025 estimate by about $455,000. Jennifer Warren, finance director, told the board that updated audit figures reduced an expected FY2024 carryover from $557,517 to $311,832, which narrowed the shortfall in the county capital plan. Warren summarized the options: appropriate an additional $364,299 today to cover the full shortfall in FY2025 capital appropriations, or permit the school division to sign the contract and include the additional appropriation in FY2026.

During discussion, supervisors asked whether interest earnings on unspent fund balance would materially change the calculus; staff replied any interim interest would be modest and would not cover the gap. Board members also asked about project timing. Schools staff indicated lead times on major equipment can be lengthy and that much of the cash drawdown is expected in FY2026, so the payments would not be immediate.

Outcome and next steps: The board did not make a final appropriation vote at the meeting. County staff and supervisors agreed that it is reasonable to allow the school division to sign the contract and to address the remaining appropriation during the FY2026 budget process; staff will confirm whether $188,000 in an insurance claim has been applied by the school division and will report back. The finance director will incorporate the school request in next year—s budget discussions.