School board cuts capital-improvement retainage to 3% after debate over priorities

The Fair School Board voted to reduce the retainage in its capital-improvement formula to 3 percent, a change members approved by voice vote after extended debate over the district’s fiscal priorities.

Board member Mr. Roberts proposed lowering the retainage from the previously discussed 5 percent, saying a 3 percent rate better balances funding for capital outlay projects assigned to bonding districts and the general fund’s stability. Roberts and several supporters argued that a lower retainage would direct more of the district’s excess sales-tax collections into capital projects such as school repairs and new construction while still returning meaningful revenue to the general fund.

Opponents cautioned that the formula already includes a consumer-price-index (CPI) adjustment that will increase funds in later years, and raised concern about a looming post-hurricane debt burden that the district will need to address. Board members noted FEMA reimbursements and bond maturities but agreed that maintaining a capital outlay pool is important for projects tied to previously approved bonds.

After the discussion Mr. Roberts made the motion to set retainage at 3 percent; the motion was seconded by Mr. Haresty and carried on a voice vote. The transcript does not include a roll-call tally.

The change to retainage adjusts only the undesignated portion of excess sales-tax collections; dedicated sales-tax revenues earmarked for other purposes were not affected, board members said. The board agreed members may revisit the percentage in future meetings if conditions change.

Next steps: district staff will implement the 3 percent retainage in the capital-improvement fund calculations and reflect the change in upcoming financial reports and bond-related allocations.