To:

Members, Board of Education

From:

Eric J. Becoats, Ed.D.
Sharon S. Ozment

Date:

June 20, 2008

RE:

Red Light Camera Money

As you may recall, the 2007-08 capital outlay budget approved by the Board of Education on September 22, 2007 contained $2,472,982 in red light camera money that was earmarked for securing one Guilford County Schools (GCS) administrative office/site.

The motion approving the proposed 2007-08 capital outlay budget included the caveat that “… the board would revisit the $2.5M in red light camera monies earmarked for securing one GCS administrative office/site to determine if some of these dollars should be used to address additional capital outlay/maintenance of facility needs that are not currently being addressed/funded.”

In order for these funds to be available for use/expenditure in 2008-09 for capital outlay, the Board of Education must take action to reserve $2,472,982 in fund balance in the General Fund so as to legally segregate these funds for a specific purpose. Reservations/designations of fund balance in the governmental fund financial statements represent amounts that are not available for appropriation for subsequent year’s expenditures because management has identified a specific purpose for these funds in the subsequent fiscal year.

RECOMMENDATION: We recommend that the Board approve reserving $2,472,982 in fund balance in the General Fund for the fiscal year ending June 30, 2008 for capital outlay purposes in fiscal year 2008-09.