All right. Um, so call the meeting to order. All right. Um, going to give a roll call for the board members. Mr. President, Mr. President, present. Excellent. Mr. Martin is absent. Um, uh, approval of the agenda. Motion to approve the May 15th agenda second. All right. Motion to approve the minutes from the previous meeting. Second. Very slow. Very quickly efficient. I have two more clients. And another 5:30. Yeah. 5:30. So uh as I shared um to some extent in in the weekly board update uh last Friday and and Mr. Harwin and I discussed uh today we had talked about the 20 uh 17 refinance when we completed the last refinance in the last fall. Um, we're also looking at the 2018 uh bonds that are going to be coming due. Um, and we're going to look to try to from a resolution side clear the deck and get that stuff taken care of for both of these. Uh, the 2017 is something that we think we'll be able to do in September or complete September. Uh, the 2018 would be I think in February. Is that a date given? Um so uh these the team is here to review that with us. We will meet at our next finance committee meeting just to approve sort of the resolution going forward. Uh and we'll seek to have that approved by the board on the 27th the last board meeting of the school year so that we can be actively working through this in the summer. Okay. actually turn it over to Tim and to Garrett. Well, great. Well, thanks again for being here just as a refresher. So, Garrett Moore, PFM, your financial advisor, and then Tim Care with PNC, the underwriter. So, this right here, accompanied with Eard Seammens, Bill Venzing is kind of the financing team. And Tom, I think you did a great job laying the groundwork. So, really kind of like what we discussed last year, this plan, if you will, is really just a copy and paste from last year. So, the numbers might not be quite as big. Um, you know, last year you saved about $4.1 million over the life. We're not talking about saving quite that much unfortunately with this issue, but as we'll get to in a little bit, still meaningful savings, you know, right around the half million to a million dollar range. Um, so with that, Tim, if you want to give a little bit of color on recent market movements and and and just I think so those I think they're still big numbers, right? And combi when you combine them together, it's probably over a million dollars in savings on top of the 4.1 billion that we just saved, right? Which is wonderful. And and I think the math is about $40,0004 to $50,000 a year in uh in debt service. Service reduction. Thank you. Right. So, I think you add those up, that could be another $100,000 in debt service reduction, which has been uh a recent our goal, right? We're trying to reduce uh uh that that number. Okay. Back to you. So, on page two here, Garrett has put together uh different charts as it relates to kind of how the municipal market has moved of late. Um I don't think this is going to be a shock to anybody, but the the financial markets have been a little bit volatile recently. um we all know it as it you know relates to different policies as they've been presented you know kind of shocking the system a little bit but good things are uh a the markets have kind of stabilized here that the the kind of tariff policies have rolled back or paused which has given the markets you they've kind of calm them come back in line and then two um the other benefit is we're not doing this right now we're going to be doing this in in September um which has the benefit of their the the markets both the federal and the municipal markets are predicting um at least two Federal Reserve rate cuts this year. The first one is most likely going to occur in June with the second one being probably around the time where we price if not in December time. Um, so we should have the benefit of of at least one rate cut and um, a rate cut in theory would increase the savings because we we would be moving to lower rates that we'd be refinancing at. So um, you know, hopefully we get a rate cut and we see that kind of flow through to the municipal market. But the the grand takeaway is the the volatility has subsided for now and we're kind of moving back into a sort of normalized environment. Um, and I think the takeaway too, I'm just looking at the bottom graph. You know, this go the bottom graph goes back to January of 24. So that would uh encapsulate the rates when we locked in the funding last year. And you know, while as rates as of today are slightly higher than where we locked rates in last year, you know, they're still in the same ballpark. We're not, you know, we're not in the six and a half% range like like you would see with a mortgage, for instance. You know, we're still in the same threshold that we were at last year. What did we refer to last year? What was our rate that we ended up three leg change? I do in the area. I don't Yeah, exactly. I say I know we didn't bottom out at like two and a half. I know we also didn't hit the 3.8s or anything like that. I think we were kind of around 331 or something. I was going to say 3.34 kind of sticks out in my mind, but Okay. hopping in the wayback machine, but we can uh we can go back and look at that email just to confirm. Um but nonetheless, you know, with this transaction, it will be kind of a copy and paste from last year. So, jumping to page three, kind of already talked about the top section. So, last year we financed the series A and B of 2016. This year, we would be looking at the series A, B, and D of 2017 bonds. Uh, and like I said, just like last year with this refinancing, all we're doing is going from higher interest rate to lower interest rate and generating savings. We're not restructuring any debt. We're not extending any debt. We're not, you know, contributing any district cash towards this refinancing. Um, it's simply going from a higher rate to a lower rate. The section that you see in the middle is just kind of a a highle summary of the three bonds that are outstanding. So, you know, all you know, in the four 89 million range, all of them have call dates in December of this year. And then all of them have 5% coupons on them. So again, going from a higher rate to a lower rate and at a high level, what we'll see on the next page is based off of some conservative market rates as of today, the district would look uh to be generating around $600,000 of savings. We'll get into kind of what those savings look like on subsequent pages. And that's without extending the terms. Yes, sir. Correct. We're just going from the higher rate to lower rate. Nothing goofy, squirrely, nothing. So, we're looking at two that we're sure in 2018, which will be coming off of our balance sheet. 2020. 2020. Oh, yeah. 2020. Yeah. So, they're only three years out. Correct. That's good. Okay. Yeah. The uh the other thing to note is that it it's in here, but we're not discussing it in this sheet, but when EERT comes, your bond council comes um at the at the next meeting, they'll also have a resolution on the parameters for the 2018 bonds, okay? Which we talked about would be they'd be done next year, but it's just, you know, for simplicity sake, we pass all the resolutions all at once. And we did check already to make sure that we could do that and we can. So, yep. So, and as part of that um as part of that resolution, one of the things, one of the parameters, if you will, for both these 17 bonds that we're looking to refinance and the 18 bonds that we're looking to refinance next year would be a minimum savings target. So, put put bluntly, you know, the parameters would outline all the kind of framework in which we the financing team needs to work within. One of which being the minimum savings amount. So basically, it's it's the board's formal direction to only execute the refinancing if you meet those savings requirements. So it's not a it's not a blanket approval to just go and issue bonds whenever um the financing team feels like it. Rather, it's only we would only be able to go out and execute refinancing if those parameters are met. Page four again is just a summary of all of the district's existing debt. um as it stands today. So if you look in the bottom half, if you look in columns 13, 14, and 16, those are the bonds that we'd be looking to refinance with this issuance. As you'll know, one of the reasons why we're not including the series C of 2017 bonds is because, frankly, they're already paid off. There's no principle at the standing, so we're not able to refinance them, of course. And then column uh or excuse me column 17 is the series of 2018 bonds that again we would be looking to take out you know in the spring early February March time frame of next year. Page five uh is really frankly the the money page if you will. So starting from the top and working down this financing would be about 22 to 22.5 million. And again though, that would be refinancing the 17 A, B, and D bonds. You can see the principal amounts that we'd be refinancing um up top. And then again, the estimated annual savings or estimated total savings over the life is about $600,000. And again, to Tom's point, similar to last year, the goal being take those savings kind of over the life so that we're kind of permanently lowering the district's debt service line item in its budget. So when you look in column four, you can see that the $600,000 a year equates to about $40 to $50,000 annually. And again, that's just with this 17 refinancing. It doesn't include the the proposed 2018 refinancing that would occur next year. So again, and you know, kind of between us in this room, right, this $600,000 savings is conservative as of today because we know we have a few months before we can ultimately lock in rates. And uh if if if recent events have shown us anything, it's that markets can be relatively volatile um for even the seemingly the smallest of reasons. So again, if we were to be able to go and refinance the today, these savings might be closer to 78 $900,000. Um, but again, knowing that we have some time before we can get there, we wanted to leave a little bit of concern with this in these rates. You know what the rate is or thereabouts that you've used? This is probably Yeah, this is probably about four and a quarter, four and a half range. The benefit is, and this is kind of a testament um to the district, is your total debt outstanding is relatively short. If you look in column three, your debt is completely paid off really in in 13 years from now, right? Which, you know, when you compare that to other districts across the state, you know, some districts have debt that goes out 30 years. So, you know, when they're looking to do any sort of refinancing or or new money issuances, they really have to go out long. The fact that you're that this refinancing that we're contemplating here is, you know, 13 years long, that's kind of the sweet spot for for rates. You know, when you start going out much longer, the rates start getting up there, spending up more interest, and you really start losing some efficiencies. So it's again testament to you all testament to the districts for you know keeping your debt kind of portfolio on the shorter side when we pay off that last one the the series C from 2017 what type of effect is that going to have on our overall budget I think it's very I think they all these things are balanced right so the the as they go through and and move numbers back and forth, right? And allocate the funds. Yeah. The the impact doesn't isn't felt right away. Right. I'm saying so we pay off that the number four in the column. We pay that 1.5 million off. I mean, what's that going to equate to savings? You know that we see an adjustment in our budget for I will I will it probably won't be much. I don't think it's right when early when I was early here, you know, these guys were you know under under their wing, right? I'm like, I'll be done, right? And I looked at the next page and it was still the same amount, right? My debt service didn't change. That's the same. I mean, it's, you know, 1.5 million of 133 million. So, we're not talking as as sort of a rule, right? Learn, right? You've got to you've got to manage that, right? We can't do things that are going to to upset the equilibri. And that's why we have that that service fund to kind of equal out those so that we can smooth out what we're paying every year. So it may be helpful to look at column 11 or column 22 because that's what we call the aggregate debt service and that's kind of the 17 C's is just a part part of the puzzle. And so you kind of can look in 11 or or 22 the number is not really chang 10 million four in chain right. Exactly. We take the other pieces of the puzzle and wrap it around so that the column 11 or 22 is all one sort of steady stream and you can kind of budget accordingly. When we did the refinance we we we saw that number would have dropped. there was true impact uh to our our debt our debt service, right? But again, it's these guys smoothing that transition down the line. Yeah. I mean, well, you look at, you know, six of 26, it's 104 versus five or 95, 96. So, that's a decent amount. Yeah. So, the the column 22, that's what's called your local effort because you do get money from the state. Okay. And that that's net income, right? taking out what money you're getting because obviously you're not really these are the numbers we're paying right so from a budget perspective Tom I'm jumping into your world here you're probably budgeting on the expense side column 11 and then on the revenue side you're budgeting that difference coming in coming in from the state okay so the net effect is really column 22 right and and frankly that whole level structure that you see in pick one column 11 or 22 is a stipulation of the state. The state um requires any municipal issuers, whether it's a school district, the bureau, township, city, county, whatever, to have what they call level or declining debt service. So that no um issuer gets themselves in trouble because they have, you know, a debt service that goes like this and then up and down and then up and then down. So that's why it's it's at that level, that level state. Um jumping to page six, really just talking timeline here. Obviously, we're here today to give you all uh an update on 17 refinancings as well as we'll touch a little bit on the next page on the 18 refinancings that we'll do next year. Um and then I think as Tom had mentioned, you know, um Eert Seammens, uh your bond council would be here. Um excuse me, jumping ahead. Um the authorization to proceed would occur at your June 12th meeting. Um that would just give the financing team kind of the the informal thumbs up to begin drafting all the necessary documents. Um and then ultimately we would be or your bond council would be coming back on the June 24th meeting of the whole to present um for your consideration the parameters resolutions um for again both the 17th and the 18th rate vancings. Um, as you may recall from last year, when we provide the parameters schedules to you, you're approving an amount, the maximum amount. So, if you go back to page five, if we really think that the total principal amount for this financing that we're talking about for the 17s is 22.5 million, realistically, that parameter schedule that you see is going to be for some amount more than that. And that's just a requirement of the state um that we need to abide by that we need to provide both in aggregate and annually a maximum not to exceed amount. So the number that you see in mid June is is going to be at least for the 17 bonds is probably going to be um closer to 26 million 25 or 26 million but again it'll still have that minimum saving and employment in there. Um so assuming that all goes fine at the committee of the whole meeting on the 24th um we would get to work on the um information request and the official statement or preliminary official statement and um get to work on the credit rating process things of that nature and ultimately be targeting um a mid August pricing. Um that would be the date as you might recall when we would actually lock in the rates. Um and then ultimately settlement would occur about a month later. So really from kind of the board's perspective, the June 24th meeting where you're considering the parameters and then mid August kind of the two important key dates because that's what authorizes us to move forward with the financing upon meeting certain tests and then ultimately when we we would be locking in the rates. So the AR pricing is locking in the rates, right? They wouldn't move. You know, the whole world could end your your rates are not moving. of the day that Bryson signed the the bond purchase agreement. And that's when Tom will send you our um nifty little bond sale document which will have your final final final interest rates um savings amounts etc etc. That's really the meat of the our presentation. Um pages seven and eight are just what the 2018 refinancing um would look like. So, if you look on page eight in column 4, similar to the 17 refinancing with this one, we would be looking to potentially generate 40 to $50,000 additional per year in savings. Um, albeit issuing a much lower amount. So, instead of Yeah. Instead of issuing, you know, 20 some odd million dollars, we're we're in the $9 million range. And that's really because unlike with the 16 bonds that we refinanced last year, 17 bonds that we're here talking about today, there's only one series of bonds that we're refunding. It's the 2018 bonds. It's not the 18 A B CDE E FG bonds, you know. Um, so again to Tom's point, you know, when we get to, you know, springtime of 2018, hopefully we're able to lock in these rates and generate hopefully more savings than what we're showing you here. You know, when you look back, you all look back and at the 16 we're funding, the 17 refunding, and the 18 refunding, you know, those are going to be some some meaningful amounts that the district has been able to save over the last three years. and and hopefully, you know, that will be a nice reflection in the budget. Are the 18 bonds at a higher rate than what? So, like we look at the the 17 because I'm looking at it because I'm saying it's half as much, but the savings is three times as much. Yeah. So, yeah. So, the 18 bonds do have a slightly uh higher interest rate um with them. Okay. And um and they're longer a different rate that they would they would uh the rate assumed is it also this four and a quarter to four and a half you assuming a lower rate. No, we're still assuming kind of current rates as of today. So that's, you know, four, four and a quart, four and a half% rate. Just obviously the 18s there's a little bit more what we call interest rate risk, right? More time between today and when we're ultimately able to lock in rates on that one, which is, you know, February, but it could also work out. Absolutely. And again, I think that's the whole kind of point when we talk about the 18 bonds is let's kind of lay the groundwork here today to be able to execute the 2018 bonds. So when I say lay the groundwork, you know, having this discussion, um, having the board approve the parameters, which includes the 2018 refinancing, and then frankly January time frame, if not December time frame, you know, we're going to be reaching out to Tom as kind of a team here and saying, "Hey, Tom, based off of what we're seeing here today, full speed ahead, or we'll be saying, you know, gee, the market's really gone to hell in a hand basket. We think we need to just pump the brakes a little bit, wait to see what the market looks like over the next month, two months, three months before we start gearing up um to do anything because the last thing any of us want to do is start sending Tom a litany of of work to do or information requests and start the credit rating process just to hit the pause button or hit the stop button because the market has gone haywire. Is there any historical evidence that a particular time during the year is better to do this? In other words, like our rates lower in February than they might be in June or is it I mean I know there's so many I mean everything's in turmoil now. Yes. But I'm just looking historically. Do you you know is there any time of the year that's better to do this or it just depends on market conditions completely? There are periods of time that we you historically expect to see flows come in especially in the municipal market. There's it's called what reinvestment periods where old bonds mature and then you know these institutional entities have you know now now they have cash and they need to reinvest that. Okay. So uh we're actually coming up on one. It's called the June July reinvestment period. So um a lot of entities will have June or July interest payments or that's where they mature. So now all these funds are available and they bring them back to work. It also happens at the beginning of the year. Um that may work to our benefit. It may work if there's a flood of cash on the market or looking forward. We're going to get better days. The one thing I will say if you look I'm going to jump around a little bit just to pinpoint you think things on page four column 17 at the bottom where it says call date. So this is the call date for the 18 bond specifically. You see it's June 15th of 2026. If you might recall, um, when we do a refinancing, uh, in order to be compliant kind of with all the federal statutes, we can only settle on a refinancing 90 days or 3 months before the call date. Okay? So that's why when you look at the summary page on page 8, we're assuming a settlement of March of 26. So that's the earliest date in which we can settle on a refinancing. So to your point, um we can certainly wait to do a refinancing, but we can't accelerate that any sooner. So one of the reinvestment periods, right, is in January, right? You know, people are banks are typically closing their books, you know, December, late December, and then kind of reopen them for business, paraphrasing, um for lack of a better word, in January. Um we would not be able to price in January or settle in January because we're we're locked in that 90 days. And it's 90 days to settle. Correct. Correct. Not to lock it. And it takes about a month um from pricing to settlement date to, you know, get the paperwork together, do all the legal documents, etc., etc. So that's why we're able to price in February. Like we the earliest we could go would be in February to lock in the rate because then it takes a month to settle, which is our 90-day window. Okay. Okay. Okay. and the parameters that uh bond council is going to come back with that provides us one of the great things about it is it provides us flexibility. Um you know we could and we saw it you know a month ago when the the turmoil hit that like there was plenty of issuers that were under parameters that were going to go to market that week everything became volatile and they said we don't want to we don't want to do this. So that parameters gave them flexibility to look at the market and say nope not today and then they came back you know a week or two later when everything calmed down and they were able to successfully in price. So the parameters in this market have just have really proven their worth. you know when you have a you have a stable market like we have for the previous few years where it's just you know little fluctuations every week um you know they still prove their value but it's less apparent than when you have these really volatile markets or in the case of early April when there was no market you know for there was about 7 to 10 days where nobody if they had the choice nobody was entering the market so people who had parameters then were able to access the market immediately when it reopened as opposed to if you didn't have a parameters and you were planning on pricing on April 5th. Well, gee, we can't price April 5th because there's nobody in the market. So, now we have to wait another month, you know, to the next board meeting before we can actually price. Is the federal rate having a bigger impact right now than it was? Because it seemed like there was little impact there. Yeah. Yeah. So, like back to early April, I mean it was the the biggest that I've ever seen, uh, you know, in one day we lost like 50 to 60 basis points. I think during COVID, the biggest was like 30. Um, you know, over the span of that week we lost 100 basis points, which was a full percentage. But then like the next the next day it swung back 60 16 basis points. It was like, you know, nobody knew what to do because nobody could could wrangle the market, right? And and know exactly what was market stability, right? Right. Exactly. Absolutely. Um, you know, the parameters I I would like it to insurance. You know, nobody wants to use it, but they're sure happy they have it when they need it. And you know during that time when everybody had to hit the pause button, everybody was very happy that you know they weren't forced to go into the market because you'd be you know at the whim of whatever you know somebody was bidding the district would the district have the opportunities I you know understand and I think getting all that sort of ducks in your row in a row together right is is really critical right but knowing the the craziness of of the market, right? You know, people are expecting something in June, right? Maybe in September, but then again at the end of the year, right? If if you got there and you said, you know what, June happened or it didn't, right? And it would get pushed off, right? We have the opportunity to to pump the brakes in anticipation of that next drop, right? if if you know if uh if they said okay June and September we're going to do it right we're going to go June September the end of the year on rate cuts. Yeah. And we actually experienced just that on the refunding last year if you remember. I think it was there was like a conversation of the following week was the Fed Fed meeting and the decision was well if they cut there are we going to miss out and it actually went the other way. They did cut, but the market I guess it it swung back the other way. It swung back like 50 basis points like directly after they cut. So, um, you know, you never you never know what the market's going to do. Right. Right. Right. I mean, as long as it's lower than what we're paying now and we recapture the amount, that's, you know, right that, you know, and having the conservative numbers in there at least gives us a baseline of what to expect or not. Yeah. So, Tom, the short answer is absolutely. we can pump the brakes. I would, and this is not a political statement, but we obviously know kind of with more certainty what the Fed does. What is sometimes even more impactful on our rates, the unknowns when it comes with announcements on trade tariffs or um you know, announcements on global policy, things of that nature. Those seemingly can happen overnight. Yeah. um and really either throw a wrench into things or be great and have a great impact. Um so it's it's we can certainly manage the known or what we think are the knowns, but sometimes those unknowns are even more impactful anymore. The only certain is the uncertain. Correct. Yes, sir. Taxes, right? Collection is right on their number saying, "Hey, you know, so we'll get that." Yeah. Thanks for the right thing. Do we need a motion to move this forward? We want to do one just to be safe or you can make a motion if you'd like to. I think that this is just a FYI too, right? Uh I shared the idea of the refinancing in our weekly update to the board. Um and I haven't gotten any questions, have you? No. Yeah. The thing that will need a motion probably is the uh is authorization proceed. So the next finance committee meeting will be seeking your sort of approval and confirmation that yes, we're going to move forward and they're going to start doing the work. Yeah. I see the authorization group. So and even that doesn't obligate anyone to anything. That's just the informal nod for us to start. Exactly. get the ball rolling on everything. Okay. All right. Anything else, gentlemen? Thank you very much, guys. Appreciate you all's time. Enjoy the lovely weather. Exactly. Swam here. A nice sunny drive home, right? My pool fell down last summer and the frogs are back this summer and I'm like like okay, thank you so much. all in the rain. Take care, gentlemen. Thank you. All right. So, on the budget, uh, so 25 budget update. Um, so okay. Uh so as as we've been sharing sort of update uh on the revenue through April um as we've talked about uh sort of working in the current year-to- date numbers and then we will include as we do uh in our budget updates uh the most current forecast on those numbers as well. Um, you know, I think not not, you know, as I type of my, you know, in the back of my mind, I feel like I need to create some other story, but the story seems to be the same. So, these slides haven't changed much. Um, but I see 113% of the federal, did we get more money than we anticipated? Um, we we did we did as we talked about last year, right? It's really the SSR piece is the more, right? So it was really the close out um of the ESSER grants that produced that change, right? ESRE grants closed out. We lost a little bit of money on the title funds when they did their final in March. So we've dropped a little bit. Uh but that's that's that's been here and I think we've been targeting and talking about that for uh each of the months. But I think the state I think we're really sort of locked in on the state numbers u pretty tightly. So we'll we'll see if if that holds true. Uh the difference in the state is primarily the change in the budget, right? So the the impact of the new budget was worth about $300,000 at the end of the day. We're we're you know we're ahead by 400. So I think we were pretty uh on track on that. uh the local side. Um as we talked about last month, there's there's a lot of uh give and take in in the local numbers. Obviously, the increase in taxes uh is the biggest driver to our overall success. Everything else is going to be relatively flat. Um certainly when it looks at money, right? So these pictures all look the same, but the difference between this picture and this picture is le is is less than a million dollars. This to this is $3 million, right? So while graphs and pictures sometimes look good, the reality is it is just a picture and it's relative to what's next to it. Yeah. Right. Um so I think all of those are the case. Uh I think the earned income tax um is is strong. I think it is coming ahead in ahead. Uh that along with the transfer taxes is going to come in ahead of budget which is good. Uh there's a number of things that are going to be below the budget which will be not good. Um, I did reach out to Keystone uh again and got an updated uh number earlier this week that I'll put into the budget uh in antic in anticipation. So, they're estimating uh they'll estimate your EIT going forward. Uh and they're estimating that to be 7.6, which is uh 7.65 657,650,000 which is a little higher than we had in the in the working model. So trying to get most of the current updates as we go forward through that. Now we say $400 ahead of prior year. That doesn't mean we're getting $400,000 more from the state. It just means our collection from the state so far is $400,000 more. Um the $400,000 is is prior year. Yes. So yes, you're correct, right? Yeah. Yeah. I just don't want anybody to look at that saying they got an extra half a million from the state, right? But we did, you know, we did get, as I said, the new when the budget was finalized. So, last year's budget, right? So, last year, right? So, this is it's probably prior year and budget, right? So, we looked at when we budgeted, we probably budgeted a flat on the state side, right? Yeah, I think we did. When the special education number came in and the basic ed number, we got juice on that. um that move that number up. Okay. Um this continues to look at revenue. Again, it it sort of breaks it down. You can see the FY24 year-to- date amount through April where we are 2025 and then where how that compares to the budget uh for these uh the general revenue year-to date total 127 million through April of 2025. uh which is 3.6 million more uh than the prior year at the same time. Again, largely driven by real estate taxes uh as you look at them. Um if there's any other comments of of merit there, value uh as we talked about Mr. Godson's earlier question, the Fed piece is really the er close out. Um and it was great, you know, I continue to to read and continue to hear some horror stories on the clawback with the clothes and of the department of education, right? If it wasn't for Vera, I would have been one of those guys seeking in in extension, right? She worked tirelessly uh to organize and to to get those final fees in which was really uh you know in in the in the delay in in the between uh Beth Cruz leaving and Ver coming in there was three months of of work that was sort of piling up. I didn't tell her about that. should have asked that question next time. But she really did an incredible job at at organizing that data and information to make sure that we were ahead and on target. Um it was and I know the same point last year we were at 87.6 we're at 84 uh point what does that say 84.6 six couple of percentage points before Mr. Codson, you talked about, you know, sort of where we were against the budget at the last meeting. So, I added that as a bullet point just to give us a frame of reference. So, we're a little bit behind this year on the on the revenue collection compared to the budget. But then again, most of that is state and federal. It's not local, right? We're fortunate all that's coming. money that's coming at some point. The the federal is probably is is I think earlier pointed out, right? We're ahead, right? We're a little below on the state, but the state, you know, has it its calendar and it will catch itself up. We're 93% of the budgeted number on the local side of so you know of things it will be coming. So that we'll continue to get EIT uh and and record EIT uh probably for the next three or four months. Yeah, we had talked about that. And then back will continue to move, right? And you can see it's in here, it's at 60%, right? Most the other ones aren't. Yeah. You look at it's 2% difference, right? Yeah. You look at it, it's 2% difference. It's $3 million and our EIT is $3 million. Right. And I assume you can anticipate some transfer taxes as well. Yep. You you will you will it the the accounting for it, right? EIT, you'll be getting EIT that's for June into the beginning of August, right? And we will we will continue to account for them. Transfer taxes, there's sort of a hard line in the sand, right? You get to the end of the month, you're cut, right? So, end of June, you don't have that same sort of accounting process that you do with the IC. All right. Um, this is just the top 10. Uh, last time I showed where they were. The only two that changed this year are the are the bottom two. Um, and they they just switched places, right? So, our share of the social security recovery um you know I think stayed the same because we didn't have a filing in between and the ranch uh the transfer tax nudged up a little bit. Okay. I was going to say can you well sorry about that. That was worth try. Go up one. There we are. No, no, no. I'm in close to 90, not 80. There we go. Thank you. Uh, on the expense side, um, general fund expenses are 110,845,000 through April. um which is certainly is is more than uh through the same period last year. A lot of things uh play into that. Um year to date year-to- date difference is really driven as we've talked about professional services which is really our special education hour. uh than labor and benefits, right? Um I think the labor side is is a product of a few new people that were add at the beginning of the start of school year based on the elementary enrollment numbers. Yes. Uh as well as some special education support um in those same numbers. Right. So those are the numbers that are at Clay. I I think the the benefit math I'm not sure I I got a good number in there in my own work. Uh, so I think we're going to lag and we're going to see that in the projection as well. So, so a question. I mean, I know you know on Tuesday we approved the IU budget of 8.7 million. Yep. How did that compare to what we approved last year? It's less, right? Significantly less than what we approved last year. If you look at the W seats seats for I just didn't know but you know I got a couple of questions that said that's an astronomical but that can go up if we have a half a dozen students not move in we may have to buy six more seats. It is what it is right ultimately you pay for it now that the IU has adjusted their accounting. You pay for it in the same year that you're going to make that decision. I mean and you look at it too we spent close to a million dollars on special placements as well. four or five resolutions. So, as we've been watching those placements, whether it's at the IU or anywhere else, uh they have been holding, right? I think we've actually lost a number of students who were we're doing a great job. Special education is doing a great job. Um and it all comes down to what we're going to forecast. So, we looked at the that budget. I worked it with uh with Dr. Ross and particular as we looked at the contract, right? And I I my voice I said I'd rather be a little light, right, than not have enough, right, or have too much, right? So instead of having that $2.7 million credit coming back to us, right? So we did we did drop that budget down a little bit. Uh we're looking at other areas as we talked about several months ago, looking at a special ed contingency uh potentially to offset some of that and whether we move anticipated expense into that contingency um just to to get it out of that special ed number. Right? There's a downside to that when you when you calculate charter school tuition, right? So charter school thinks you're going to spend that 2.7 million and we're getting back there's never a change. Okay. Um so those are the areas we're at 73% uh of our expenses. We have uh you know in this two months and change to play. Uh but knowing that in June is your highest payroll because you have a summer payout and we acrew for those who get paid out during the summer. We acrew all the teacher contracts back to June which is their contract is a 10-month contract. Um and you know let's say graphs these get a little hard to see. It does show the current year and the prior year. This looks at where we stand expenditures uh by fund between the budget, the projection and the actual. And you know the difference I think the actual is is pretty pretty close obviously right. Uh this is our forecast. Um again I think the revenue numbers seem to be right on track uh on the top side right the with 300,000 of the 400,000 coming on the state side just based on knowledge we didn't have in June when they budgeted in July uh and the difference then in our ESSER funding uh with a little bit of a a drop based on the change in title funding the expenditures I think to me they they look pretty straight pretty on track uh a little more or less in in certain spots. Um but you know it has it has the salary number uh carried out as well as a higher benefit number. Overall we're you know it's a instead of a zero we're sure $25,000. This does include just to make sure we're caught right it includes that transfer from the general fund uh from the debt service to offset the deficit that we had projected originally. Right. So that was a part of last year's plan. Um we we moved we had a move from debt service as we plan to do I think going forward to the general fund to make a whole our refinancing. Right. So last year we we're going to save around 250,000. We're going to add $250,000 so that there's a $500,000 reduction expenses. We'll continue that. The balance of that is money that we use to offset the deficit, right? Um, and as we talked about at the April uh board meeting, that number um we can we can maybe not make that move happen, not spend that and look to recover the 2.7 that we're going to be getting back from the IU because we needed in this accounting window. That should that should clear the board, right? That will keep us level. And then if we need to offset next year as part of the 2526 budget, we can use that that at that point. So I I see that the salaries are in the red. Is that due to us hiring more staff than we anticipated? It is. Right. So as we talked about looking through April, right, we hired uh a couple of teachers coming in on the elementary side uh because of of the the process that we had. All right. And again, I I I we wouldn't have brought it up if if we didn't think it was meaningful, right? But the board sort of rejected that out of hand. Uh I think we've got to uh we've got to begin to look at at areas. Uh we'll talk about the budgets in a second, but we're we're looking at people and budgets and staff. The money is all in in in in staffing, right? So, I've got to look and make sure that when we're forecasting that that one teacher, one person, one individual, one finance guy, right? Those all have an impact. Special education as you know, uh, right, those are really required and and mandated, but when we looked at some of those enrollments, right, we're looking at projections whether that projection happens or doesn't um really comes back. Uh so we'll look to uh to have that you know sort of potentially more transparent in the future. So that gets these last two bottom bullet points. Okay. Uh on the budget as I said we are there's a lot in progress right now. Um uh so as I shared in the in the last Friday's update, if you had a chance of looking at looking at that, I sort of laid out a new calendar of of where we're at. Uh we're finalizing that proposed finalizing the proposed final budget uh which is the number uh and an act one increase that we can't go below, right? Or we can't go above, right? Um I think that number when you see it is going to be 4%. uh as we are moving forward. Uh but that will look to bring that to the board meeting on the 27th. Uh that is an important date. I can't it seems to be the last two meetings, right? There's a lot going on. So uh but I it needs to be on there and it needs to be approved so that the clock starts running, right? It allow us to get final budget done by the middle of June. uh if we were if we were so lucky as the board meeting dates go that are on the calendar uh already the June 10th uh we'll be able to have any further discussion and dialogue around that budget. Um but we won't be able to approve it until uh the 16th. We'd have to add a meeting to make that date because you've got to be uh days away from when that may be right for so long. Exactly. Exactly. So we'll be doing all of that. So the next one is really that June 24th unless we had an earlier meeting to move that forward. So that's sort of the the work that we're doing. As I mentioned, um I didn't the April work session. Uh I didn't feel like we got a lot accomplished at that one. That one didn't seem to uh to be as productive as as one would have hoped. Um but we have you know we have been working uh diligently on the budgets is the feedback coming back is we want to see reductions. Um we are doing that across the board all the school budgets uh on on the uh on the general expense side not the labor side but the general expense side and this the slide they talked about uh where the money was and what you control that's certainly the smaller pot of money uh is we are reducing them um across the board uh except in cases like the it right it we deferred our refresh I can't defer it again and I've actually need to pay for last year's refresh this year and do this year's refresh. Um, so we are uh we're not we're not we're not necessarily able to get that that 5% savings, right? We're working in other areas really it's an aggregate to try to get that down. I mean it's more of an aggregate than it is an actual sure and it's a bit unfortunately as you well know right things in technology are expensive right so it's not it's not a small number right all over the place right now it is and and talk about e economics right I mean it is it's really a volatile a volatile situation on on the economy side okay any questions regard to that um and I I think those are the how it will ultimately play out. Uh and you know as we talked about in April I think our deficit uh if we moved the the move from debt service to then I think we were about uh 1.6 million 1.4 million deficit. Including that we're about a 4.3 million sort of operating deficit which is the truer of those numbers. Right. Okay. You guys have any brainstorms in the middle of the night? You want to talk about the budget? We're no longer sleeping. I'm no longer sleeping. So, let's uh you know, feel free any of the board, right? You have an idea. Certainly share it. Yeah, we'll buy uh what's the what's the mega billions up to? We need warm win. Yeah, we do. We do need to We we will need to bring closure on that um the act 93 agreement. I'm going to uh send back around the questions that we had for the board. Um that's not getting any traction. So I'm going to try to ask it in a different way. Okay? Because they're really questions that you the board need to decide, right? They're not necessarily legal questions. They're positionary questions. And since we're not in the d not in the room having those discussions, what does the appendix that has, you know, minimum midmax mean, right? If someone is below it, do they get moved up to it? Those kind of things we need to hear from you so that we make sure that we're interpreting what you are committing to uh in real time. Right? So that's when Dr. Wilson and I went through and asked those questions, that's what we were trying to get at again and understanding from those in the room. I know you're My my understanding was you whatever people were placed on now you know mid those ranges and it were only for future employees right but that that that's that's an important thing to know right so your own employ but but then your own employees will fall behind potentially right so you you'll show that and the current employees will fall behind right so they may be below the mean um and and how do we manage that right we've also talked about the the challenges of a of a flat increase committed to over a period of time um given the declining act one. So we are be we'll need to at at a full act one you won't be able to fund the agreement the contract agreement so all the other expenses have to sort of reduce themselves somehow. Uh but that is um so items presented for information. Uh we have these four uh the uh PISLAF reports uh added in here the consumer price index update which came out yesterday. Uh as well as the latest Bureau of Labor Statisticsformationally um which came out the last one of those was April 30th. So that last report that we looked at in uh the budget discussions was a December number just gives us uh the latest number. Right. There is two be approved that we'll be seeking your approval for. So yes. So on the the first one yes on the backup it said 3,5,000 but we're coming in at 219. Right. So I it is actually it's like 25page document. I couldn't find it in there, but I fig I'd just ask. Right. So, I mean, I like it. The difference is is a a uh financing that we provide money to them. So, that's the difference. Okay. Um I think if I look at um the attachment, yeah, the backups originally like the header on the backup said 3, right? So, I think 3.3 million. I I think I had fixed it here and didn't fix it there. Okay, that's good connection, right? Yeah, I see the three. Yeah, right. That you had. I will make sure. So, thank you for calling out. Make that and this is the breakdown. I mean, like I said, I'd like to see it. I mean, it's, you know, Yep. It's almost a million dollars or $100,000 less. So, those are the numbers that we looked at, right? So, this initial piece is is the budget, right? It's 3% more than the last. This is 197. That's the least rental debt that we have that we fund each of the squirrels do. Um and then a prior year reconciliation which is the 38,000. So NBIT in total the number is $3 million. So we don't need to come back and include each of those pieces. Is ambiting bonds that you know no they're not right anything recently. Right. This will be uh this doesn't include this 3 million doesn't include the previously approved $120,000 which is the final capital installment. Okay. uh from the districts, right? Um I was at M uh MBIT uh two weeks ago, three weeks ago. Um had a tour, we talked to them uh and and one of the things that you know that sort of their refrain and I called it out in in their presentations, right? Is is they want to be sort of the seventh centennial building, right? They want us to think of them as our buildings, right? So, uh, they they they are cracking through things that they're going to be spending money on, right? They've spent a good deal of the $8 million we had committed to them. Uh, there's a couple of key projects that they think they will be able to get done inside of that number. One that is more flexible is uh is the electrical service coming into the building. Um, that there is some concern about. Um but you know their their their story is able to be considered one of every everyone's you know citizens advisory last month how it did today. So it is a it's a tough one. I was sort of in a tough spot. Um in terms of of how that happens right now uh all the schools pony up cash up front. Um I think I don't know if you were on the board when we I think you were Yeah, I think because I I would have I think we did it previously in like 09 or 10% every time because it was at a time when interest rates were really low. Exactly. And and uh and and so that 120 that we made the payment in July 2025, that's the next budget year and that's the end of that contract. So, but the one thing they did get, you know, is they did get 2 million to do all the HVAC units that's sitting on top of the roof. Um, which should help, you know, and and not you tap into Sure. They they have money for that. They got money for some of the asbestous um Yeah. I mean, they do a good job looking for Yep. for bonds and grand parking lot and driveway that no long list right I'm glad they're making headway through it and I'm glad they had money left over right you know and I think things come on and off a year ago when they were sort of in transition in their business office right we weren't sure if they were going to you know to get done the list of things they needed to get done um at the time thought they were going go over I think they the need concept of need changes I guess under pressure so some of the needs maybe have fallen off uh other ones were added to it so it was good to hear that that was uh that was happening so that is uh that's that number um the second is uh asking to have a procurement card issued to Lori Denny Loriy's our food service manager she gets cap caught in um in some catering work that she needs to do or helping our caterer out. The caterer has a card issued to them. They've had it forever. Uh but that would be a help for her. Uh the third one is a stipulation. This this may or may not come to play out. where they're in the final negotiations, but instead of having it dropped to June and potentially the last meeting in June to approve, which could be a little dicey, uh I want to keep it on and you know, it's a draft today. We're working through it. Um and as that gets solved, I will uh I will let you know as I spoke to um the Mr. hardline the other day. Uh we've had a number of tax assessment challenges that have reduced the assessment of late. This is one for the Lidle building which is now the Tesla service station on York Road. Right. This is a significant increase in the assessed value and the market value as that building has changed hands a couple of times in its recent existence. Um, so we're we're anticipating uh additional collections of uh $238,000. This is just a one time it it's into the future, right? So we have a period that we filed our first challenge in 2020 when we first got going with this. So that 2020 for the tax years 2019 through the 2024 year right varying because that was still some period of that time it was still just a parking lot with a building on top of it right that market value didn't change but it did change a little right there there was assessment was 361 it went to 551 right so you can see where it was and where it went to at the bottom um at the end of the year right the change from where We are right. It's plus $71,000 in this upcoming final school year. An annual increase. Yep. And it would be that going forward. So, okay. Basically, it's half the teacher. So, that's a great that was a great win for us, right? And it's and it is, you know, it's also offsetting a declining number. I think as I mentioned to you, right, our assessed value as a community, yet I get a report regularly, um, that number has been going down. So this is a good lift uh in in in the right direction. Okay. Yep. Um the next one is these are ones that we do each year. Uh so we have participation um in the joint purchasing programs that we have every year and our last is the RFP uh for uh musical rental equipment. Okay. Does Yes. Does it pay us to rent them? I mean or is type of thing where we need to start looking at maybe purchasing them to buy them? I I think we do. This one is for students, right? That that we are we're negotiating for them. Okay. So, this is music arts or whatever. We are we are continuous our students to $45, right? No cost because it's it's paid by the family, right? I always wanted to be the saxophone player. I had a brother of mine who played the trombone. He he played it until he bought it, right? parents paid enough and he bought it and he didn't play it anymore. She came down to me two kids later she's like nope a guitar that was your guitar. Right. So uh yeah and we rolled it from one instrument to another to another till we ended up on a trombone. So Right. Right. That's the final looking but we do and have been investing in instruments for the right because I knew that we did at the high school continue to make sure that marching band has has the their equipment and their tools to uh to go. So we'd like to get a a motion to approve those five and bring them forward to uh the board uh to vote on at the committee of the whole meeting. I will second it. All right. Our next meeting is next meeting is June 12th. Uh is uh we will have bond council here at that meeting. Um that we'll have uh you know May's updates financial through May. We'll also then have where we are with the budget. So we'll be able to be talking about that and getting your feedback. And again, if you have any thoughts, feedback, uh, relative to the budget, uh, I'm I'm all ears. You know, districts certainly do approve budgets, uh, with deficits in them, but, you know, there's there's only a limited period of time that you can continue. Yeah. Same spot we were last year. Y, you're in the same then then you're sort of even with the world, right? Right. Exactly. But I don't like being with the numbers that we are projecting from the state are pretty much the same here. We could get a little bit more. We are the forecast on where the budget is now and what we're getting from the state as well as what we're getting from the Department of Education and Pasel is it is flat, right? If not down a little bit. Yeah. Unless unless there's some legislative move significant. Yeah. There are there are schools getting increased money, right? But it's not us. But it's not us, right? I mean, you know, if they manage to push something through for charter schools, if they manage to push something through for a significant special ed change, you know, but right now everything is in appropriations. Nothing's moving. The the only thing that I think you have a chance at is the charter number. I think there's been enough publicity uh with regard to charter schools and and the allocation of their funds uh that have people scratching their head and saying, "Hey, this isn't necessarily right." Um so maybe maybe there's a cap on special education costs, right? So if they cap enrollment at 8,000 the governor proposals for 10,000. Yeah. Uh those are numbers less than we're paying today that would be helpful. Keeping in mind too that we still also provide services to those students as well. What's that? We also provide services sometimes to those students as well. Even though they're in a charter school, we still provide some services. Do we not get driven to school? We drive still drive them to school. We still charter schools are different than if if I was at if I was homeschooled, right? Or if I went through CDLA, right? Uh charter schools are in fact their own school, right? So you you participate in athletics within your charter school, right? You graduate within your charter school, right? Um you know, you don't go to the well tennet prom because I live here, but I go there. It's not I think you go to school, go your prom, right? Exactly. Right. Those are differences in that in that relationship. Right. Charter schools are all licensed, certified schools in their own merit. The only thing that we are doing is funding them. Uh because that's how the math was put together back in the 70s when they you know they didn't know any bad and and lack of transparency and reporting. Okay. All right. All righty. So motion to adjurnn. Second. Awesome. Thank you all. Gentlemen, thank you very much. Uh