Understanding Capital Outlay Fund
By resolution the Board sets the annual tax levy at a mill rate not to exceed the statutorily prescribed rate for a period not to exceed five (5 years). The current mill levy rate is 8 mills or $8/Thousand dollar property valuation. We also receive revenue from the County tax collections on Motor Vehicle, Recreational Vehicle and In lieu of Tax Payments from Industrial Revenue Bonds. We used to receive State Aid but last year and this year the legislators eliminated that aid to help balance the States budget deficit.
The following expenditures may be paid from the capital outlay fund: acquisition, construction, reconstruction, repair, remodeling, additions to furnishing and equipping of buildings necessary for school district purposes, including housing and boarding pupils enrolled in an area vocational school operated under the board of education, architectural expenses incidental thereto, the acquisition of building sites, the undertaking and maintenance of asbestos control projects, the acquisition of school buses, and acquisition of other equipment. (K.S.A. 72-8804)
As you can see we are restricted from using this fund to pay items such as instructional and support staff salaries or benefits. The only time we can use these funds to pay salaries is hours that the maintenance staff would be remodeling the various facilities and grounds.
There is no restriction on the Fund Balance but it’s recommended to establish a five-year plan, which our district has done.