On May 16, 2017 the Troy City School District community will vote on a proposition to authorize the creation of a Capital Reserve Fund for the purpose of financing future capital projects. This item will be included on the ballot along with the proposed 2017-2018 budget and Board of Education election.

The Board of Education held a special meeting on Monday, March 27 to discuss how such a proposition would aid in the District’s long-term financial planning and commitment to taxpayers. The Board unanimously voted in favor to include the proposition on the May ballot.

The Capital Reserve Fund is a savings account that the District will fund over the course of 10 years for the purpose of financing the local share of any future construction or reconstruction projects of its facilities. It will ensure that future capital projects will not become the financial burden of taxpayers. Should voters approve the resolution, it simply gives the District the authority to establish such a fund.  The reserve may be funded up to a maximum of $4.5 million.

Much like the Infrastructure Upgrade Capital Project approved by voters last year, the reserve would be funded by setting aside one-time revenues and any surplus funds. There is no tax increase to create or fund the reserve and the Board of Education must approve any funds set aside for this account.

Superintendent John Carmello first presented the idea to the Board during the March 22 meeting. He referred back to the Building Condition survey that identified more than $50 million in needed improvements to buildings. A large portion of these improvements will be completed through the current capital project. This project was funded without any increase in taxes and Carmello said the goal is for the future projects to be also be completed at no additional expense to the taxpayers

“As a financially responsible district we have to continually plan ahead for capital projects that will provide safe and modern learning environments for our students,” said Carmello. “By establishing a Capital Reserve Fund, we can be proactive, rather than reactive by putting aside money and leveraging state funding for those additional and necessary projects identified in the survey at no cost to taxpayers.”

The resolution will appear on the ballot as follows:

“SHALL the Board of Education be authorized to establish a Capital Reserve Fund (savings account) in an amount not to exceed $4,500,000, with a probable term of ten years, for the purpose of financing the construction of additions to, and reconstruction of, various School District buildings, site work, and acquisition of land, original furnishings, equipment, machinery or apparatus, required for the purposes for which such buildings are to be used, with such Capital Reserve Fund being funded with such portion of the available funds as may be determined from time to time by the Board of Education?”