Norwich — In what one alderman called likely a “once in a generational” event, the City Council agreed to allow the school district to keep $1.68 million of a rare $3.58 million surplus from the 2020-21 school budget to cover capital needs and unexpected expenses.

In a city where school budgets have routinely ended with a deficit in recent years, School Business Administrator Robert Sirpenski told the City Council on Monday that the district expects to end the year with a $3,582,000 surplus. Final numbers will be calculated by Sept. 1, he said.

In anticipation of the surplus, the City Council in June approved a plan to create a nonlapsing account allowed in state statutes to receive all or a portion of the surplus funds to be used for capital expenses, equipment and unanticipated expenses. Statutes allow up to 2% of the annual school budget total to be placed into the account, which has no spending deadline.

Earlier this month, Superintendent Kristen Stringfellow formally requested that the full 2%, totaling $1.6 million, be placed into the nonlapsing fund. The council on Monday approved the request 5-0, with two aldermen absent. The remaining $1.89 million will be turned over to the city’s general fund.

School and city leaders praised the move as an example of the improved cooperation between the two entities.

“This is definitely a good start,” Council President Pro Tempore Mark Bettencourt said. “Obviously there are limits to these funds. This is probably a once in a generational kind of thing. I tend to doubt we’ll have this kind of opportunity next year. It would surprise me greatly if we did.”

Board of Education Chairwoman Heather Romanski brought other good news to the council Monday. A project to replace the antiquated and failing boiler at the John B. Stanton School will be easier and less costly than anticipated. The boiler has been failing for several years and could not wait for a major school renovation project in early planning stages.

The City Council had bonded $600,000 for the project, but Romanski said the final cost will be no more than $354,000 and will be covered in the 2020-21 school operating budget without needing city bonding. Sirpenski said the amount already had been subtracted from the surplus reported Monday.

“We are working and having success in turning the financial landscape of Norwich Public Schools around,” Romanski said. “We have more work to do but we have made gains.”

Sirpenski said Tuesday the surplus in part was the result of reduced transportation and school costs due to remote and hybrid learning last school year because of the coronavirus pandemic, a slight drop in building costs with no after-school and community use of the buildings, and efforts to cuts expenses. COVID-19 relief grants covered costs of needed new and upgraded equipment, personal protective equipment and cleaning supplies and improved ventilation.

There are no immediate expenses in mind for the surplus, Sirpenski said. Any spending from the account would have to be requested by the superintendent and approved by the Board of Education. The district has “many capital needs,” Sirpenski said, but must be prudent about major expenses with a school renovation project in the works.

c.bessette@theday.com