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Board reviews Fund 46 capital plan, current balance $458,286; long-term strategy emphasized
Summary
Finance staff walked the board through Fund 46 rules and strategy, explaining a five-year waiting period on deposits, a 10‑year capital plan, eligible project types, and a current Fund 46 balance of $458,286 with nearly $2 million placed there since inception.
Sean (speaker 17) gave a board education on the district’s Fund 46 long-term capital improvement account at the March 9 meeting, outlining restrictions, allowable uses and the account's current status.
Sean explained the difference between capital-related funds (41, 46, 48, 49), the five-year waiting period before deposits to Fund 46 become spendable under shared-cost rules, and that a district must show a capital plan (historically a 10‑year plan) when initiating the fund. He said the district moved modest initial deposits in 2016–17 and larger transfers (e.g., $400,000 in 2021) tied to defined projects such as a high-school science room; since inception roughly $2 million has been set aside and Fund 46 currently holds $458,286 and has earned about $82,000 in interest.
Sean reviewed eligible capital items (roof replacements, chillers, boilers, vehicles, machinery, IT/network equipment) and explained that transfers from the general fund into Fund 46 are the addable shared-cost portion that can generate approximately 30% reimbursement via state equalization aid. He said the district moved funds into a local government investment pool for better yield.
Board members discussed the long-term benefits of building Fund 46 to avoid large simultaneous capital needs (for example, roof replacements possibly coinciding decades ahead) and the prudence of accruing funds to minimize future levy increases. Sean said the board may change the capital plan over time and that funds must be in a separate account and cannot be used for general cash flow or transferred back into Fund 10.
No board action to change Fund 46 policy or transfers was taken at the meeting; the presentation was informational and staff will continue to present fund-balance options at year-end as part of routine financial planning.
