Celina board establishes fund for future capital projects

CELINA - School board members on Monday night unanimously voted to establish a capital project fund to save up for athletic facilities and other fixed assets, as well as to safeguard revenue should a legislative provision to cap school district's general fund carryover make it into the state's final biennium budget.

They'll determine just how much money to potentially transfer to the freshly minted capital project fund at next month's regular meeting. Monies can be transferred into the new fund from the general fund and permanent improvement fund, according to the resolution approved by board members at their regular meeting.

A capital project fund, often referred to by its accounting code of 070, can be used by school districts to set aside and accumulate money for one or more capital projects. The dollars must be spent within 10 years of the fund's establishment and can be moved back into the general fund with board approval, according to the State Auditor's Office.

Minster, Parkway and St. Marys schools districts have all recently voted to put in place capital project funds.

Though tremendous progress is being made on the new Celina grades 7-12 school building going up on East Wayne Street, questions remain about the future of long-standing district athletic facilities. Board members have generally agreed that some projects, such as a potential new football field, would have to be undertaken in phases over the next several years.

The overall building project, which also involved a new 115,000-square-foot addition for grades pre-K through 3 and the revamping of the Celina Intermediate School for grades 4-6, is a partnership between the school district and the Ohio Facilities Construction Commission.

It was budgeted at $106.6 million but ballooned to $121.7 million due to a host of factors, according to board member Mark Huelsman. Rather than ask voters to pony up more money, school officials ate into their Locally Funded Initiatives and made cuts where they could.

Board members in March voted to spare the life of the iconic but outdated Fieldhouse to make use of its locker rooms and other amenities, yet emphasized that high school basketball games will be played in a new gymnasium once the ongoing grades 7-12 school building is completed.

Keeping the Fieldhouse gives current and future school officials flexibility as they eventually plot out and commit to other facility projects down the road, such as a potential new football stadium, board member Jon Clouse said last month.

"It's good fiscal planning because we're going to have those expenses, so it's OK to plan for them," Huelsman said about creating an 070 fund. "It doesn't mean that we have to spend the money."

Under House Bill 96, school districts that carry forward more than 30% of their operating budget in unspent cash at the end of each year would see those funds distributed back to residents in the form of property tax relief.

The House and Senate versions of the budget will eventually undergo a process known as budget reconciliation. It's unclear at this point whether the 30% general fund carryover cap will make it into the Senate bill or through the reconciliation process.

Asked by Huelsman, school treasurer Michelle Mawer confirmed that school districts must be able to justify the transfer of large sums of money into a capital project fund.

"Right. There has to be a plan in place," she said. "You just can't move millions of dollars over into this fund without a plan in place."

Mawer said she guarantees that the State Auditor's Office will be taking a close look at such transfers, given that other school districts have moved to create capital project funds in the aftermath of the passage of House Bill 96.

"What we want to do is very legitimate," Huelsman said. "And if we don't do that, if this 30% thing passes, then they'll take money from us."

Board members' resolution states the purpose of the 070 fund is for "accumulating resources for the acquisition, construction, or improvements of fixed assets, including but not limited to bus purchases and athletic facilities, such as a new track and soccer field(s) improvements."

The school board meets next at 6 p.m. June 23 in the education complex.