District 196 School Board Approves Capital Budget

The Rosemount-Apple Valley-Eagan school district board Monday unanimously approved a capital expenditures budget of more than $10.53 million for the 2011-12 school year. Board members have discussed the budget multiple times in the past few months.

A memo from Jeff Solomon, director of finance and operations, shows about $10.21 million combined from revenues and 2010-11 fund balance, which would result in a fund deficit of about $325,000 by the end of the 2011-12 school year. But the district typically spends less than anticipated, the memo said.

Superintendent Jane Berenz said the district keeps a contingency — for example, to repair a boiler that breaks unexpectedly — so the fund likely won’t end the 2011-12 year in the red.

“We always try to have a bumper,” she said.

Solomon said in February that the capital expenditures budget, which changed only minimally from when it was introduced in February, was designed to provide flexibility in the uncertain funding situation.

“A great deal of the capital expenditure budget is fixed costs or is money that is spent as part of a longer-term contract," he said in February. "So we have worked to give ourselves as much flexibility as possible in this financially challenging period.”

A 99-cent increase in per-pupil aid for capital spending and an increase in number of students in the calculation should result in about $429,000 more in operating capital revenue than during 2010-11, according to the memo. 

Some major items for which the district has allotted its operating capital and lease levy funds for 2011-12 are:

• $3.12 million for classroom leases, including $237,000 for ice arena use.
• $2.93 million for career development and technical-education programs, and some instructional materials.
• $1.3 million for individual schools’ determination.
• $734,400 for administrative software programs.

The district also will move $1.7 million in technology support staff salaries from the general fund to the capital expenditure fund; this is the only type of position whose salary can be paid from this fund, rather than the general fund.

In healthier budget times — when the district isn’t cutting from the general fund — it would be preferable to have those salaries come out of the general fund to leave more money for other capital projects expenditures, Berenz said.

In addition to the overarching projects, nearly $913,000 is reserved for health and safety projects, such as removing asbestos or improving fire-safety measures.

A fund that’s separate from the capital expenditures but can be used for similar projects is an alternative facilities levy program of $6.64 million. The funds can be used for health and safety, improving access to buildings for people with disabilities and necessary maintenance to “prevent further erosion” of facilities, according to the memo.

Some of the projects these alternative funds will finance in Apple Valley schools are parking lot overlays, carpet replacement, HVAC parts and lighting and ceiling replacements.

Capital purchases often are made during the summer, which is why capital expenditures are finalized earlier than the rest of the budget, according to the memo.

The board will see a preliminary overall budget for 2011-12 in June.