Board adopts Resolution 25-10 to account for insurance payout for Shelton High repairs

The Shelton School District Board of Directors voted to adopt Resolution 25-10, extending the district's 2025'26 capital projects fund budget to account for an insurance payment tied to flood-related repairs at Shelton High School.

Clinton Sherman, district staff presenting the item, told the board the insurer issued a single payment that the district received and is routing to the contractor who completed the reconstruction. Sherman said the amount to be recorded in the capital projects fund is roughly $489,000 to cover the remaining reconstruction costs. "It's really just flowing through the insurance check that came in," Sherman said, explaining the district must recognize the associated revenue and expense so the transaction is audit-ready.

A board member moved to adopt the resolution and another board member seconded. The motion passed on a voice vote; the transcript records members saying "Aye," and the president declared the resolution passed. The board noted staff have backup documentation, including walkthroughs and photos, to support the expense recognition.

Board members asked why the payment was made to the district rather than directly to vendors; Sherman said the insurer chose a flow-through to allow the district to verify the work. The board confirmed that recognizing the insurance proceeds and the related expenditure in the capital projects fund is standard accounting practice when the district receives funds to pay vendors on behalf of a project.

The resolution adoption was the only formal action recorded in the meeting minutes for capital projects. The board did not conduct a roll-call vote in the segments recorded; individual board votes were not listed in the public transcript.