Rome City School District board approves placing $10 million capital reserve proposition on May ballot

The Rome City School District Board of Education voted unanimously on March 24 to submit a proposition to voters on May 20, 2025 to establish a 10-year capital reserve fund not to exceed $10,000,000, the board heard.

The move follows a presentation from CFO Georgia Gonzales outlining a five-year financial forecast that the district used to plan reserves, capital needs and staffing costs. Gonzales said the district is projecting next-year revenues of about $160 million and projected next-year expenditures of about $153 million, leaving an unrestricted fund balance she estimated at roughly $7 million and overall restricted balances near $32–33 million. "We have approximately $10,000,000 almost 10 and a half million dollars in restricted fund balance," Gonzales said during the presentation.

Why it matters: the proposition, if approved by voters, would create a fund to pay for construction, reconstruction, renovations, equipment and site work across district facilities, and would allow the district to dedicate surplus above the allowable 4% unrestricted fund‑balance cap to long‑term capital planning rather than returning those dollars to taxpayers immediately.

Gonzales explained the forecast assumptions used to reach those conclusions: an assumed tax‑levy target of 2.56% for the coming year (subject to board approval), about 2% annual enrollment/economic growth in the model, a 4% salary escalation assumption (midpoint of statewide contract ranges), a 7% assumed rise in benefits/healthcare costs, and technology cost increases of roughly 5% driven by device and software needs. On federal aid she said, "Federal funding, it's kind of a wild card," noting that UPK funding was one program expected to rise.

Board discussion touched on the use of historical data (Gonzales said she excluded most COVID‑era years for expenditure projections) and on the schedule of upcoming budget forums to engage the public. The board also discussed a minor discrepancy in a published tax‑levy percentage the comptroller's site displayed; Gonzales said the dollar totals matched and she would correct the displayed percentage.

The resolution approved by the board directs the district clerk to include the capital reserve proposition on the notice for the annual school district election and specifies the proposition text: a 10‑year fund, titled "2025 capital reserve fund," to be funded from year‑end unassigned balances and other permitted sources up to $10 million (inclusive of interest and earnings), to be used for construction, reconstruction, improvements and equipment across district facilities.

Next steps: the proposition will appear on the May 20, 2025 ballot; absentee and early‑voting application deadlines and procedures were published in the resolution. If voters approve the proposition, the district plans an initial funding transfer (Gonzales discussed proposing about $1.1 million in June) and will continue the five‑year forecasting process and community budget forums to refine long‑term planning.

Provenance: discussion and forecast presentation began with the CFO at SEG 111 and the board read and approved the capital reserve resolution at SEG 733–837.