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Board previews $25 million capital reserve proposition for May ballot
Summary
Administrators described a proposed capital reserve ballot proposition that would create a new 15-year reserve with a $25 million maximum and up to $2 million in annual deposits; any specific projects would require separate board approval and a future public vote.
As part of the budget presentation, administration outlined a proposition to create a new capital reserve fund and explained how existing balances could be transferred into it.
"The proposed reserve would include a $25,000,000 maximum, a 15 year term, and an annual funding of $2,000,000," the presenter said. The district stressed that the proposition would authorize only the creation and funding parameters for a reserve; separate board approvals and, if required, additional community votes would be necessary to approve individual projects.
Administration clarified that the $2,000,000 annual deposit limit applies to future deposits and does not prevent an initial transfer of the current reserve balance into a newly authorized reserve. Proposed capital projects discussed as possible uses of a reserve included auditorium rigging renovations, hot-water heater replacement, air conditioning for the Vernon Gymnasium, playground equipment for pre-K, a scoreboard replacement at Memorial Stadium and abandoning an unused oil tank at a school; those projects would be evaluated and require subsequent board action.
Why it matters: If approved by the board and placed on the ballot, the proposition would set a long-term funding vehicle for capital needs that may reduce the need for emergency borrowing and allow multiyear planning, but any actual project spending would still be governed by the board and, where required, community votes.
