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Consultant outlines Fund 46 option for capital projects; board to consider resolution next month
Summary
A consultant advised the board on creating a Fund 46 capital-project account that requires a resolution, a separate account and a five-year hold before spending; he recommended a small seed deposit and returning with a resolution for a vote next month.
Tony Stonehacker presented an overview of a 'Fund 46' capital-project fund and recommended the board consider creating the account at a future meeting.
Stonehacker told the board three steps are required to establish Fund 46: approve a resolution, deposit funds into a separate bank account and accept that the funds cannot be spent for five years. "For fund 46, once we start the clock, we cannot use any of the monies for 5 years," Stonehacker said. He recommended starting with a small deposit (he and administrators discussed a $1,000 minimum to avoid fees) so the clock begins but the district retains flexibility.
Stonehacker said Fund 46 can be used strategically to affect state equalization aid calculations but cautioned the approach depends on whether the district has a surplus to place into the fund. Board members asked whether additional deposits in later years change the five-year timing; Stonehacker said the five-year clock runs from the account’s creation, not from subsequent deposits.
The board did not adopt a resolution at this meeting; Stonehacker and administrators will present a draft resolution for board action next month.
