Elmbrook board approves additional transfer into capital fund and tasks finance committee with final amount

The Elmbrook School District Board of Education voted to authorize a 2023–24 budget amendment to move an additional amount — not to exceed $6,500,000 — from Fund 10 into Fund 46, the district’s capital projects fund, with the Finance & Operations Committee to approve the final amount before any promissory note or tran is issued.

Kristin Sobocinski, the district’s finance lead, told the board the district currently has $14,800,000 sitting in Fund 10 set aside for capital projects and recommended moving a portion into Fund 46 so capital work can be funded without driving up tax rates next year. “The district has $14,800,000 in Fund 10 that’s set aside for capital projects,” Sobocinski said, describing the transfer as a timing strategy because state aid estimates come after the fiscal year ends.

The board’s discussion turned to cash-flow implications. Sobocinski warned the move will likely require increased short‑term cash‑flow borrowing, but said the current interest-rate environment might allow the district to earn interest on short-term investments and offset some borrowing costs. “If we had to borrow 2,900,000 last year and we’re taking $5,000,000 out of our fund balance, we’re going to have to borrow 8,000,000 next year,” she said while explaining cash-flow mechanics. Supporters including board member Sam argued current market conditions made a tran financially favorable, saying in part that the district could be “net neutral” or even gain interest income under certain scenarios.

Board member Mary voiced caution about moving large sums in one year: “I’m not comfortable with saying not to exceed the assigned fund balance of $14,000,000 because $14,000,000 as a transfer would make me extremely uncomfortable,” she said, and proposed a lower ceiling during debate. The board adopted an amendment that clarified the motion would be for an additional transfer (above a previously budgeted $2,300,000) and later added language requiring the F&O Committee to approve the final amount after staff runs the July 1 aid estimates and a cash-flow forecast.

The first vote approved the 10‑year capital improvement plan, then the amended transfer motion passed by voice vote with two recorded no votes. The board will return to approve a promissory note (if and when borrowing is required) in a future meeting after the F&O Committee recommends a specific dollar amount.

Votes at a glance - Motion: Approve 2023–24 budget amendment reflecting an additional transfer not to exceed $6,500,000 from Fund 10 to Fund 46, with the final amount to be approved by the Finance & Operations Committee. Outcome: Approved on voice vote; 2 no votes recorded. (Final dollar amount to be set by F&O.) - The board also approved the 10‑year long-range capital improvement plan and the 2024–25 preliminary budget later in the meeting.

What this means for taxpayers and projects Staff said the transfer aims to stabilize tax impact of foreseeable capital work by placing funds into Fund 46 in a year when aid estimates are favorable. Because money moved to Fund 46 is earmarked for capital and cannot be used for general operating cash flow, the district will rely more on short-term borrowing for operating needs until property tax collections and aid arrive; administration said that borrowing will come back to the board for approval when the exact amount is known.

Next steps The Finance & Operations Committee will run cash-flow scenarios after the July 1 aid estimate, determine the optimal transfer amount within the approved ceiling, and return a recommendation to the full board for final authorization of any promissory note.

Sources and provenance: board presentation and discussion (topic introduced SEG 864; debate and vote concluded SEG 2016–2021).