Agenda Item #36
Reallocation of Unused Sales Surtax Funds to Contingency - Rockledge High School Structured Cabling (Category 650100)
The purpose of this agenda item is to address the reallocation of unused sales surtax funds when a project either doesn't require the allocated sales surtax amount or when a project is concluded under budget. These circumstances may occur either on an entire project or within a specific category.
In general, when this circumstance occurs, staff will request School Board authorization to reallocate the unused sales surtax funds to contingency within the group (district security, educational technology or facility renewal). This has been noted as the likely course of action to the Independent Citizens Oversight Committee (ICOC) in the past and will be a specific discussion item at their June 8, 2016 meeting.
$1,762,159 was budgeted in the sales surtax funded detail report (Attachment F) for the structured cabling portion of educational technology at Rockledge High School. On June 9, 2015, the Board approved the structured cabling project at Rockledge High School at a cost of $1,626,167.66 but only $804,178.06 of sales surtax funds were used because $821,989.60 in FY 2006 and FY 2008 capital funds restricted to technology cabling were allocated to the project. This project is substantially complete and will not require additional funds. Consequently, of the $1,762,159 budget allocated in Attachment F, $957,980.94 is available to reallocate to the educational technology contingency. Note that an additional reallocation to the educational technology contingency fund is likely following project close out since the sales surtax funding spent and encumbered to date is $740,719.58, not including 3rd and 4th quarter labor charges.
From a cash flow perspective, the reallocation will occur as project funding is needed from contingency. The allocation in Attachment F is budget authority, not actual cash. Funds will move from the educational technology revenue to educational technology contingency until the full allocation is reached.
Board approval is requested as a consent agenda item as contingency funding is needed for a critical structured cabling project at Atlantis Elementary School that is a concurrent agenda item for construction approval.
Approve the reallocation of $957,980.94 in sales surtax from Rockledge High School Category 650100 Technology Building Cabling to educational technology contingency.
Consent w/o Information - 6/14/2016
Authority for Action
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Agenda Item will not Require the Expenditure of Funds
Susan Hann, P.E., Director of Planning and Project Management
Attachment: Attachment F Rockledge HS.pdf