Capital Planning

While this plan attempts to recognize possible facility deficiencies and meet future demand for facility upgrades and programming needs, it is important to note that it is only advisory in nature. Ultimate funding amounts are determined by both School Board policy and the annual budgeting process. This plan is a collaborative vehicle for “smoothing” out capital costs over a number of years, in order to minimize the financial impact on the annual operating budget. Although this is a five year plan, it will be updated each year to reflect changing conditions and priorities.


Financing methods include the One-Year Appropriation, Non-lapsing Appropriation, Lease/Purchase, Capital Reserve or Bonding, as described below:
The One-Year Appropriation is the most common: it is an amount contained in the annual operating budget designated for a specific purpose (a roof replacement). Monies are raised through taxation. The amount may be contained within the operating budget, or listed on the warrant as a separate article.
A non-lapsing Appropriation is a separate article on the warrant. This article may be used for a specific purpose, and can be designated as “non-lapsing,” meaning that the money appropriated may be available for as long as it takes to complete the specific project. Funding for this article may be through taxation or the use of fund balance surplus, up to a sum certain.
Lease/Purchase agreements are multi-year agreements that allow for work to be done on, or the purchase of a capital asset. Unless there is a “non-appropriation” clause that allows the District to get out of the agreement, a lease/purchase must be placed on the warrant as a separate article.
Capital Reserve accounts require appropriations from surplus or other methods over several years. Appropriations to CR accounts must be placed on the warrant as separate articles. If the School Board has been designated as the agent to expend, appropriations from this fund may be expended after a public hearing on the matter.
Bonding is generally limited to the most expensive projects. The ability to bond must be voted on as a separate article on the warrant. Bonding allows for a project to be completed in a relatively short period, while spreading the cost (repayment) out over several years.
Other funding sources may include grants or public/private sponsorships. In these cases, an additional organization shares the cost of a particular item.