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Board approves transfer of half of estimated surplus into Fund 46 to support capital needs
Summary
Facing an anticipated unaudited surplus of about $450,000, the New London School District board voted to transfer 50% into Fund 46 for capital and facilities needs and retain the remainder for general fund stability after debate over percentages and tax impacts.
The New London School District board voted to transfer half of an anticipated unaudited surplus into Fund 46 to support capital projects and retain the remaining half for the general fund.
Staff reported an estimated unaudited surplus of approximately $450,000 at the close of the fiscal year and recommended allocating roughly 50% to Fund 46, which funds facilities projects such as the Bulldog Stadium bathrooms and concessions just approved by the board. "The board has the discretion to decide what to do for fund balance," the staff presenter said, describing the mechanics and tax‑aid implications.
Board members debated alternatives, with proposals ranging from placing 30%–40% into the capital improvements fund to a straight 50/50 split. Discussions touched on how transfers affect equalization aid calculations and property taxes; staff cautioned that moving funds to another fund is recorded as an expenditure for that fiscal year and can influence shared‑aid calculations. Several trustees favored a 50/50 split to balance capital needs and general fund sustainability; the board approved that motion and recorded the vote.
The board instructed staff to report exact transfer amounts and finalize entries when the audit and year‑end closing entries are completed and to communicate the final numbers at the August update.
