Downingtown Area SD officials warn capital fund near depletion as board reviews $10.5 million in projects

Downingtown Area School District officials told the Board of Directors on Feb. 12 that the district’s capital fund is shrinking and that planned projects for next year total roughly $10.5 million, even as the district projects only about $2.3 million will remain in the fund by the end of the next fiscal year.

The presentation, led by district staff and introduced by Superintendent Bob O’Donnell, reviewed a five-year capital outlook that calls for a target transfer of about $10 million per year from the general fund into capital — though staff said an ideal level would be $15 million annually.

The capital presentation matters because the district is managing multiple large construction projects and recurrent facility needs while local revenue sources have weakened. “We’re trying to hit that $10,000,000 target,” a district presenter summarized during the meeting. Staff projected that, after recent projects and expected expenditures, the capital fund balance would be about $2,300,000 by the end of the upcoming school year.

District staff walked the board through where the money was going and why the fund has contracted. The district reported an audited capital fund balance of $122,400,000 at June 30, 2022 and said the fund has been drawn down by major projects, including prior east/west high school construction and current projects at Beavercreek and West Bradford. Recent revenue sources that bolstered the fund included transfers from a now-closed debt service fund (described in the presentation…