Council approves resolution letting Winchester schools keep $1.8 million in unspent FY2025 funds

Winchester — The Winchester City Council voted on Nov. 12 to approve Resolution 2025-44, allowing Winchester Public Schools to retain unexpended local FY2025 operating funds for use on limited capital projects.

City staff and school officials said the memorandum of understanding (MOU), updated in August 2024 to reflect a state change, streamlines funding by letting the school division keep local carryover funds rather than return them to the city's general fund via journal entries and sub-appropriations. Staff reported an auditor-verified amount of roughly $1,800,000 available to remain with the school division for the 2025 fiscal year.

Why it matters: Supporters said the arrangement reduces administrative steps and helps the school division fund small, local capital needs — carpeting, painting and minor renovations — without repeatedly returning to the council for those limited expenses. "It really is a matter of efficiency to just allow him to keep the money and then move forward to get his projects done," a school official said.

Council action: Councilor Herbstree moved to approve the resolution; the motion was seconded and the clerk called the roll. The council indicated assent on the record and the resolution was approved. The finance committee had previously reviewed the item and forwarded it with a unanimous recommendation for approval.

Limits and oversight: Staff said the MOU contains limits on allowable uses and noted it applies to local funds only; the MOU and a historical look-back to FY2016 were provided as attachments for council review. The agreement is expected to be brought annually for council acknowledgment moving forward.

Next steps: The school division will retain the identified unexpended funds and use them for eligible minor capital projects under the MOU. The council did not attach additional conditions or a separate reporting requirement during the Nov. 12 meeting.