Review Agenda Item
Meeting Date: 12/1/2016 - 6:00 PM
Category: Old Business and Action Items
Type: Action
Subject: Resolution to Transfer FY 2017 Operating Budget Funding to the CIP Budget for the New Elementary School
ACPS 2025 Strategic Plan Goal:
Objective 4.1 Optimal Learning Environments and Infrastructure
In collaboration with City partners, ACPS will move aggressively to modernize all learning environments, expand or otherwise adapt facilities to meet projected changes in school enrollment, and ensure equitable application of capital improvements throughout the school division.
Policy: FA - Facilities Development
Funding Source or Fiscal Impact (where applicable)
File Attachment:
161201_Memo_CIP_Budget_Transfer_Resolution.pdf
Agenda Item Summary:
Background: The School Board and staff have been actively performing the necessary due diligence with regards to the prospective purchase of a new elementary school at 1701 and 1705 North Beauregard Street. Staff has reviewed the building condition, academic programming feasibility, covenant modifications, and land use requirements to inform the School Board’s decision to proceed with this purchase. This building and adjacent garage became the most optimal solution for addressing elementary capacity given its square footage, location on the West End, and good building condition. At a sales price of $15.0 million and preliminary retrofit estimates of $23.2 million, the total cost of this project is approximately $38.2 million. Additionally, the total cost to establish a separate Pre-K Center at John Adams Elementary School is approximately $1.0 million.

With available Capital Improvement Program (CIP) funding of $24.3 million, an additional $14.9 million is required and anticipated to be covered through a reprioritization of capital improvement program projects, the use of school board reserves/ operating fund balance, and a transfer of operating funds to the ACPS Capital Improvement Program.

Use of Operating Funds

The FY 2017 Operating Budget includes $2,540,975 allocated for leasing and personnel costs related to the new elementary school and pre-k center. The Superintendent recommends that the School Board transfer this amount from the ACPS Operating Fund to the City’s Capital Projects Fund in support of the new elementary school and pre-k center projects.

To do this, the School Board will need to adopt a resolution to transfer $2,540,975 in FY 2017 Operating Budget Funding to the City’s Capital Projects Fund in support of the new school project (see Attachment 1). This resolution authorizes the following: (1) a reduction of the City’s operating appropriation to ACPS from $206,561,472 to $204,020,497, (2) a reduction in the ACPS operating expenditure budget by $2,540,975, to a total of $252,793,963 inclusive of the fund balance adjustment described in the concurrent “Resolution to Designate and Appropriate Fund Balance for the New Elementary School,” and (3) a request to further increase the City’s Capital Projects Fund by $2,540,975 to support the new elementary school and pre-k center, thereby increasing the FY 2017 ACPS Capital Improvement Program budget to $48,668,985, inclusive of the aforementioned fund balance allocation.

Supplemental Appr
Recommendation: The Superintendent recommends that the School Board adopt the attached resolution to reduce the FY 2017 City Appropriation by $2,540,975 in order to transfer these funds from the Operating Budget to the Capital Improvement Program Budget in support of the new elementary school and pre-k center projects. Adoption of both this resolution and the concurrent “Resolution to Designate Fund Balance for the New Elementary School” will result in a total of $4,475,434 additional CIP funding for the new elementary school and pre-k center.
Approvals:
Recommended By:
Signed By:
Final-Clerk of the Board - Proxy
Vote Results:

Original Motion
Member Ramee A. Gentry Moved, Member Christopher J. Lewis seconded to approve the Original motion 'The Superintendent recommends that the School Board adopt the attached resolution to reduce the FY 2017 City Appropriation by $2,540,975 in order to transfer these funds from the Operating Budget to the Capital Improvement Program Budget in support of the new elementary school and pre-k center projects. Adoption of both this resolution and the concurrent “Resolution to Designate Fund Balance for the New Elementary School” will result in a total of $4,475,434 additional CIP funding for the new elementary school and pre-k center.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 9 Nay: 0.
The motion Carried 9 - 0
   
Ronnie Campbell     Yes
William E. Campbell     Yes
Karen Graf     Yes
Christopher J. Lewis     Yes
Ramee A. Gentry     Yes
Henry E. Cardwell     Yes
Margaret Lorber     Yes
Cindy Anderson     Yes
Veronica R. Nolan     Yes

Amended Motion
Member Christopher J. Lewis Moved, Member Ramee A. Gentry seconded to approve the Amended motion '4. FURTHER, BE IT RESOLVED that the foregoing fund transfers by the School Board will be effective fourteen days prior to the scheduled closing date of the purchase contract for the property at 1701 and 1705 North Beauregard Street, as that date may be amended. '. Upon a Roll-Call Vote being taken, the vote was: Aye: 9 Nay: 0.
The motion Carried 9 - 0
   
Ronnie Campbell     Yes
Ramee A. Gentry     Yes
Margaret Lorber     Yes
Karen Graf     Yes
William E. Campbell     Yes
Cindy Anderson     Yes
Henry E. Cardwell     Yes
Veronica R. Nolan     Yes
Christopher J. Lewis     Yes