How many years will the savings pay for the capital improvements?
Funding for capital improvements in government are different than in the private sector. In the private sector capital improvements become long-term assets on the balance sheet. These long-term assets are then depreciated. The depreciation is an expense reported annually. In the government sector, the funds for building improvements are requested through a bond referendum. The improvements are placed in a separate fund and depreciated. They do not have any impact on the operational funds of the school district.