BOARD OF EDUCATION CAPITAL IMPROVEMENT POLICY #58 On a motion by Mrs. Pesce, seconded by Mr. Farley, the Board voted unanimously to discuss the Board of Education Capital Improvement Policy. Mayor Bingham explained the Board of Education Capital Improvement Policy was set up to address concerns of the Board of Finance regarding cuts to that account, projects being delayed, and to allow proper financial planning. It will make use of one-time influxes
of money from unanticipated reimbursements only. Mrs. Traub said she is concerned about procedures being included in the policy and feels they should be left to the Administration's choice. She added that the Mayor and Board of Education should have the leeway to review projects on an annual basis, not have them set up automatically, leaving the City's hands tied in the future. Mr. Arum said this has not been approved by the Board of Education yet; he wanted the Board of Finance's approval first. He wanted the policy set up with automatic procedures to avoid having to make annual decisions. Mayor Bingham recommended wording the policy so that projects go on the Board of Finance docket much like any other revenue. Mr. Zeller said he is not sure how much oversight the Board of Finance wants to have over projects that are entrusted to the Board of Education Comptroller Proulx said the monies would show up in the General Fund revenue and be transferred into a Capital Reserve Fund, where the Board of Education would have its own line item designated to them. The transfer would be approved by the Board of Finance. Mr. Farley asked what happens when deficits occur in the General Fund. Mr. Arum listed the Board of Education's recent cost savings including reduced tipping fees, the lowest electricity contract and the lowest paper prices in the state. Mrs. Traub said she didn't like the City being tied to this policy without a 'what-if' clause. Mrs. Pesce said there isn't any
point in a policy that isn't a commitment. Mr. Arum clarified that this fund would be only for reimbursable projects funds received back from the State, and used only for further projects that are also reimbursable. A discussion ensued regarding the ability to further add to this fund in surplus years, the opportunity to hold over Board of Education funds for proper budget planning, setting up the fund to resemble the vehicle replacement fund, the approval of capital projects if funds are on the city side, reporting revenue, and the capital projects line item. Mayor Bingham suggested redrafting the policy. Mr. Arum agreed.
On a motion by Mrs. Traub, seconded by Mr. Scoville, the Board voted unanimously to table acceptance of this policy.
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