Board caucus directs administrators to set aside funds for ACTI and bolster capital reserve after $726,436 audit gain

At a Jan. 13 caucus meeting, Justin (business manager) reported the final 2023–24 audit showed a $726,436 increase to the district’s fund balance and asked the board for direction on how to allocate those funds. The board agreed to move $250,000 from the tax-index increase to support ACTI and to transfer a recommended $300,000 of the audit increase into the capital reserve.

The change follows a presentation from Justin that the district’s audited beginning fund balance for the current school year is $6,543,678 and that a one-time change in reimbursement distribution had temporarily boosted last year’s receipts. “The final audit shows an increase of $726,436,” Justin said, noting earned-income-tax growth and interest revenue as contributors.

Why it matters: Board members said they want to build a rainy-day cushion for known facility risks — Justin told the board that rooftop HVAC replacement work could cost in the millions and that the capital reserve should be replenished to avoid surprises. "My initial recommendation out of that $700,000 is an additional $300,000 being moved over to the cap reserve fund," Justin said. Several members pressed to step funding up over time so the district could amortize any future debt-service obligation.

ACTI funding: The board also discussed its commitment to ACTI (the regional technical institute). Justin noted a working estimate the district could be responsible for roughly $100,000 per $10 million borrowed on a project; a 60–80 million build could translate to an annual obligation of roughly $600,000–$800,000 for the district across member contributions. Board members agreed to begin adding money toward that obligation annually rather than waiting until a single year when the full payment becomes due.

Budget process and next steps: Justin said he would transfer $250,000 now and recommended adding a $350,000 line item to next year’s working budget so the district can step annually toward a larger commitment if needed. He emphasized that transfers to the capital reserve can be made at any time through June and that the board can adjust amounts during the budget cycle. The board did not take a formal roll-call vote during the caucus; members verbally expressed support and asked administration to reflect the direction in forthcoming budget documents.

Context and caveats: Justin warned the $726,436 figure contains some one-time timing effects from state reimbursements and that not all increases will recur. He also cautioned that transferring money into capital reserve reduces amounts available in the general fund used for annual budget balancing. The district will present updated budget projections in February and will finalize tax and budget choices in June.

What’s next: Administration will reflect the board’s direction in the draft 2025–26 budget materials and return updated projections at the next public meeting; board members asked for monthly updates on projections and for administration to continue pursuing external grant or state funding opportunities for major capital projects.