All right, guys. Good evening, and it is 5:30, so we'll get this meeting started. We do have a quorum. All members are present. Will you please stand for the Pledge of Allegiance? Thank you. >> I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> All right, do I have a to approve the agenda? >> So moved. >> Thank you, Kate. I do have a second. >> I'll second. >> Thank you. Any Any discussion? Hearing none, all those in favor of approving the agenda, say aye. >> Aye. >> Opposed, the same sign. Motion carries. Consent agenda. We have approval of the previous minutes from June 15th. Do I have a motion to approve those? >> So moved. >> Thank you, Kate. I have a second. >> Second. >> Thank you, Aaron. Any discussion? All right, all those in favor, say aye. >> Aye. >> Opposed, the same sign. Motion carries. On to 4.1, discuss levy questions. Did anybody have any questions or anything they wanted to discuss? I do appreciate all the questions that you had for uh Superintendent Geis, myself, and and Bob truly To me, it means that this this board is truly engaged, and takes all the decisions we make uh seriously, and always uh the decisions we make uh are always really in what's best for our students. So, thank you. Was there question generated for the ballot? >> Um, what I did is and and Bob did uh we wrote separate letters and because your conversation was kind of a little bit between 400 and 500, we had them draft both. Um, just to be safe. Uh we have a little bit of time. We can make some of this at the next board meeting too a pretty one of those if you feel comfortable with tonight. We can certainly do that as well. Um, but I did draft the 400 and 500. If there's something else that needs to be done, again, we have a couple weeks. We can redraft something. But those are ready. You want me to want to look at those? >> So the discussion this meeting will be to determine >> Correct. >> That's what I'm I'm hopeful for. >> So we have the numbers right down here. What's What's the difference between the 500 and 400? >> Dollar >> I assume you mean yes. >> I guess per year. >> Okay, I got it. >> Do you want me to send you the thing? Oh, no, I won't. >> I I have a period so I can pull it up. >> I pulled it up. I can tell you. Um, for the 400 and 500 So for a $700,000 house with the the most that we saw in our graph, uh the $400 option was $35.83 a month. The $500 option was $44.83. So a little under $10. >> What was the total revenue revenue on >> Total uh >> Are you talking about the number of dollars that's generated >> Yeah, what would be generated per year? With that money? >> For 400, it's 858,000. For 500, it's 1.072 million. And these issues are not a cake. You said it was 35 for about $35 for a the 400 for a 700 >> For a $700,000 house, I think the median price range is more close to $450,000. Do you want that number? >> Actually, it told us it was 350 if you combine Manvel and Kemah. >> Okay, so for the three that makes sense of why it's in the middle. >> Okay. >> Um I was just going to the most like for $350,000 it'd be This is the smallest, by the way, number I've ever seen anyone put on something. $1,792 a month. And then the 500 um option is $2,242 a month. >> And that's just for the median house. >> That's just about $5 more and that's in the average $350,000 home, yeah. >> So that difference of 400 and 500 would net us almost an extra 200,000 about, right? Is that like in rough math? >> Well, it's just yeah, about two a little over $200,000 >> more in the year. >> Each year for 10 years. Looking at that, then we had talked about if that was if the 400 is not enough, we have to come back maybe a year or two later. And once you add that, so maybe that should be a big part of our decision, too. >> And even if we didn't pass anybody, and like you said, in about 5 years, we could be short up to 900 almost a million dollars per year, correct? >> Yeah. >> And that's not And that's including the right-sizing, making cuts. But even then, I mean, if we got to that point, right-sizing, making cuts, that's not just cutting out a director's position. That's not just cutting out a marketing team here to make up for it. So, I mean, that's a significant cut. >> And And it's based off enrollment. I mean, those are the projections we really look at. Right-sizing makes sense when you have less kids and things like that. It's the enrollment that progressively in the whole state of Minnesota continues to go down. >> I think it's important to talk about if like what kind of cuts would be made. But let's say we go for the 400 versus the 500. What I know that that's still not able to meet our budget exactly. So, what kind of cuts would we be looking at? >> You know, it's something we haven't really discussed. Um you always look at things that least impact kids. Um we have been really blessed with opportunities to add clubs and and things that maybe only 10 kids are a part of or something like that. Um you usually start places like that. We want our kids to be involved. We want them to be active. We know that's good for kids. I would think you would start looking there first. Um you always look at administration. Um but you know, we we ran all those numbers. We're very low in administration compared to other comparable-sized districts. Um you know, they they did a audit on our district office, I think it was 4 years ago, and they were, you know, "You don't have a human resources director. You don't have this, you know." Um each of our buildings have 750 kids approximately with one principal and a TLC. That serves as an assistant principal. We're not trying to fool anyone. That's the rule. But with that, that's very, very low for that number of kids. So, you try and look at administration if you can. Um you try and look at you know, programs that maybe have been added on that aren't well attended. Um for some schools, that might be CTE. What if you could only get five kids that wanted to build a house? Not the case here. You know, we have waiting lists. People want to do those kinds of things. But, you would look at those programs that maybe just don't have a ton of interest. Um, a lot of transportation options get looked at. I've seen boards repeatedly look at walk zones. And we do certainly have those here, but you know, if well, Johnny needs a ride and you know, he's in kindergarten, we tend to pick them up. Um, things like that. We don't enforce every single corner of that. Um, we put a few more kids on buses, you know, looking at those kinds of things. I've seen districts look at um, prolonging purchasing things, which for example, the area transportation could be quite dangerous. Right now, we're We haven't purchased a bus in years, and that starts compounding. So, I can guarantee you none of those things have been talked about because it's your job to kind of decide where we're going to be at, but those are the things we gravitate to first. It's always things that impact students the least amount. Yeah, things like that. It is always not fun. Right sizing is just something that happens, and it works, and people leave the district, and then you don't get placed. Those kinds of things happen. Cutting would be new to K on the agenda. You know, it's hard. >> But, in all of the right sizing that you've done, uh, you've been proactive in the the way that you've done it, uh, about it, so that if we need to bring it back into play, we can bring it back. And and I love that aspect that when they come uh, >> I think we need to see the kids. >> Yeah. It's nice to see that because it it it it allows us to to ebb and flow where we need to. >> And as this goes on, I'll have Bud come in and do a presentation on this district has been remarkable at watching pennies. He's got it down to the like the LOR for example. He knows exactly what has been spent for the last 10 years and where that money has been accounted for. It's it's pretty remarkable. Not every district really watches their pennies as closely as that. You know, more recently with the decrease in enrollment, we've started doing that more. But this district has a history of being very good with their funds. Hence why you're one of the only districts that has never gone up for levy. I think that's something to be proud of. We just got to that point where we have all these great things. We just have less kids. That's no one's fault. That isn't a school board making bad choices or things like that. Whatever you decide tonight, we will come back with a plan. So your question is a good one. It's just probably a little premature. If the board decided tonight, you know, we're not going to do anything. I will be coming back to you with a plan to react to your decision. That's my job. Hopefully that makes sense. Ocean, can I add a couple of things? Mhm. >> What about the school funding and how it hasn't accounted for anything? That's been a big part of why we're going down this journey. >> Absolutely. >> That's not even individual, it's more rather than that, would you say? >> Oh, it's it's just everything we continue to do. I mean the latest one is the family medical leave. Great money, great for families, hard on schools. We need to get subs. Um a lot harder and just human insurance. I mean I can start rattling off things off the list. >> So one of the other things too, um and the next board meeting we'll vote on the LTFF fund present. That's done and has been operating at a deficit for 2 years because of funding. So that's just stuff to keep in mind looking at projections. It's harder and harder to be a school. When I started with that, there was a 23% fund balance. And now I think we're at eight, but don't quote me, but we're at a low number. We have and we have been moving around admin. We've been minimizing to the point that admin are nervous cuz it's hard to operate, but I think we have three down around the entire building now. Um while numbers are going up. So, it's just scary right now to be in public education. And I'm glad that we're being proactive and considering these things, but looking down the line, it's going to be harder. >> There's a big thing and I've got a list I'm going through cuz I know I'm putting everything together. The amount of revenue that we've gotten through grants just this year and last year, I mean, it's it's significant and I'm really proud of that. We should probably be talking about that more. So, I'm going to bring all of that information back to you because I like how many of our I mean, our taxpayers ask that question, "Where are you Are you getting money from anywhere else?" Yeah, maybe we should continue to talk about some of those grants that we are getting. If Jess goes here, it'll be Well, Jessica and the TLCs in general, Bob's always working on something. >> Yeah. And one more punch for the side. We do save a bunch of money because of that can go on grants the way we um >> instructional >> Yes. Well, certain instruction that we use that for or grants that cover like ELL, we share different staff resources. So, it's so beneficial cost-wise. >> effective to go through that too if that's developed in the building. >> It's good for us. Okay, I'm done talking. I'm just going to >> I was just going to maybe kind of tie in what Keith was saying about the funding formula. Now that we have all these different little pots of money like safe school money revenue that helps provide security and the SRO in the new building. The last time that that formula was changed was back in 2013-14. >> Yeah. >> Yeah. So, you start >> to look at how much cameras and security pieces have increased the cost of the SRO. That SRO continues to decline. That pot of money is getting smaller as well because it's based off of the number of kids you have. But your costs for providing the security and the SRO continue to increase every year, so then which just makes it that much more difficult to be able to provide the adequate things that you need in order to help kids feel safe. And that's just one example like we have those. >> One other thing that worries me is the cost of insurance rising. I know there were people working on it, but I mean even this year some of our staff took a pay cut even with a raise because the cost of insurance went up, which Mr. Wilke came and talked to a little bit about, but that's an ongoing struggle too for school districts to provide affordable benefits. So yeah, there I mean there's a lot of things to consider and worry about financially. >> In terms of the valuation for us, everyone's their feelings and their thoughts on that. And I can start them off. I personally am comfortable starting off at $500. And totally our resources and influence and information to campaign >> I would agree. I I want to go on top of that as a the main factor that I want to go with the 500, and I think that's where we have to go, Is that I don't want to come back to our city community and district and the people that expect us to to take care of things in two years and suddenly another bomb. I think it would be not productive of us to do that. And so I you know, I don't I don't Personally, I it would bomb his and everything that we've done would be over because I didn't even want to do one. But I've seen what we need to do. It's crucial. It's very evident. So but I feel like if we're going to do something, I don't I want to do it all, you know, we'll be going 100% so that we can make sure that the district in the future >> I was going to say that I I think that we should go with the 400. Um if I had my way, I would go for the like 500. I'd go for the highest number we could. Um but I felt like after speaking with the consultant we hired to help us make this decision, she made it very clear that she was comfortable with the $400 level and did not think that the $500 level would pass. Um so I would ask if the $500 level fails, what's the backup plan? Cuz that's where I get stuck on. I can't make a decision based on what I hope community members will vote for when we've been given this data from somebody who really has is an expert in this field. >> I think one of the things that I heard from our last meeting from the results was there's positive support from our community and there's also a group that needs more education or more information before they can make their decision. So, I think that's also our responsibility to make sure that we we go out and we share this information. You know, we have that knowledge you know, and that information that was given to us, but to really share that with the community. Back in 2014, I was part of the commitment to excellence. Um and when we did that, it was the same situation. There was a lot of questions from the community. Um and so, there was information sharing. Um a lot of support came out and that was passed back in 2014 for this beautiful building. Um and I think the same can be done with this. And this community is very supportive, but they want us to be responsible and they need the information so they can make that decision. >> Were you part of like the community outreach? >> Yeah. >> Okay. I thought you were part of that. >> Thanks. So, that was a group of um you know, community yeah, members that were supportive of it. We got together. We were given information on what what would be um just you know, with that ongoing through. And then we just had you know, spreadsheet and we reached out to people and we said, "Would you like to learn more and share the information?" And then just making sure that we have you know, meetings set up, you know, open meetings that people could come to and to learn more. So, it's a great community that we know and I learned a lot from you know, that back in 2014. >> And I also feel like with us Elizabeth addressed with them so I also think that we're doing this so early, so let's say we do have something that we have to do in a year and then we have to go maybe for that 400 at that point. This would be too good. I don't know. I don't think we'll have that issue. I think that we can address it with the committees and then also be in the Lions Clubs going and visiting those people, showing them what we've done and where we've been so far and then what the need is. I think we can do that. It's just It's going to take hard work, dedication, and time to convince. But I think we can. >> I think that's I love how positive our group is, though, cuz even when she was on the screen, we were like, "Wait, what about this? And what about this?" And I have significant like worries and fears about the finances, but it sounds which we were going through with her, she accounts for the percentage that would come up. So, I would rather have it pass than not pass. Um And I also like I'm going to start because there are a lot of districts that then in a couple years go for more. But in the scheme of things, if we could pass ordered and then when we need to do it again, it is showing fiscal responsibility of like we're doing the best we can, but we need to come back for more. Um it's hard cuz what it looks like like now being on the school board and seeing how much it takes and how much I remember when I came on and they were like, "Oh, you have your financial experience, that'll be helpful." And I was like, that was did not apply whatsoever. Are you kidding me? Like money comes in a year or two years later and you're projecting things that you don't always get reimbursed for things and it's very hard to maintain a district, but if you don't have strong schools, you also have to find an environment. People come to communities for strong schools. So, I do see the benefit of keeping everything we have and I don't want our community to lose things to then be reactive to it. I love that we're being proactive, but I think we're also being really positive in the way we were at the previous meeting of we can do this. If we all just buckle down, if we all just share the message. I feel that, too, but I also want to consider like what she said. I'd rather have something pass than go out and have a failed levy. Even though like when you asked about how much the the most on our graph, I mean, there's not many houses over 700,000, but it's less than $10 more a month. I have mixed feelings. That's what that came out as. >> Any questions or concerns or anything else you'd like to discuss? Do you have any thoughts on the difference between four and five year and the difference it would make on our school district or the troubles it would cause if you don't go to four hundred and five years or you know you know, we're at that point where we actually have still have 100 or 200,000 in terms of our deficit. >> Yeah, you know, there's the difference between governance and management. I will do whatever you guys decide tonight. I think this is a very intelligent group of people and you're going to make a great decision and I will make that work. Um I come from districts that have been in SOD and you know, you're kind of always trying to get out of that hole. I've been in districts that not just declining enrollment, but people are enrolling out. A little different case here. Every day, I mean, I think there were a couple more today that came in. They're enrolling into our district. We are definitely a district of people who want to be here. Um so with that positivity in my head, I feel like I can make anything work. If the board decides 400 is where we want to go, I'll get that through. We'll work We'll work our tails off and make sure that that gets through. Make sure our community knows what they're voting for. If the decision is 500, that's great, too. You know, that keeps us that one step ahead. Um anything else that might come your way, any more unfunded mandates or decisions that we are out of our control or our hands, those kinds of things. But if you decided on 400, we can we can make that work. There will be some right-sizing that goes along with that. Um that's not always fun, but we got a list of things that we did this year and we'll continue to look at things always as they come up. You know, that's not really my answer. Um my answer is whatever you decide to do as a governing board, I will I will get it through. Even if that's nothing, I will I will get it through. >> Okay, the other thing that just popped in my head Uh that was very eloquent of you, how you did that, by the way. Is that the next board will have three new members. So it might be hard to learn and hold this through. You know, like looking forward and then I know it's not fair about but having Bob is a a like to our benefit. He is so much information. Um just things to consider cuz in January, you know, it'll be a different board. And so if it doesn't go through, what does that look like planning futuristically? I don't want to make anything harder for our future groups, but just considering how hard it was to just learn school board coming on. Um things to consider. >> There's a lot of what ifs and if you you're going to end up doing that all night if you do that. >> Yeah. >> But it's the gubernatorial race, it's constitutional amendment, you know, there's there's going to be a lot of things on that ballot. I mean you could do what ifs all night. I think you just have to maybe decide with your gut and just whatever will be, you know, wherever you feel. You're not that far off. You don't have a group that's saying we need 900 and you don't have a group that's saying how much is 100. Yeah. You're talking a very, you know, four to five dollar difference per month. >> Yeah. >> So, and although that's a large amount to some people, I don't think you're as far off as you think you are. >> Yeah. I want some kind of confirmation that this is going to pass is what I'm trying to say. I just want assurances. And Bob used up our crystal ball. I told him not to. He looked into the crystal ball and yeah. So. >> I just want to stop there. That's all I'm going to say. You know. The difference of 100 dollars seems to make a big buffer, you know, 20,000 dollars is a big buffer. You don't know what's going to happen in five years, you know. I mean, whether they make it, like you said, whether they make it, whether they pass, you know. The 400 just covers us. 400 just covers our deficit on the 50 projected. You know, 200,000 gives us a little bit of buffer. And the way I'm seeing it, right, 10 years and then that 10 years we can just roll that into another 10 year without a vote, right? Community vote. >> Um, that did did get an amendment. >> it passed some of them in the future vote or you know, that's a >> Well, it still can decide to always take it back to the voters. A lot do. >> But But I guess my point is that I mean, that's if we get 500 passed, you know, we go out, we do our work. I mean, that's a big chunk of money for the next ideally 20 years that we secure the school district and secure the kids the future or so on. I I would lean towards I mean going for the 500 and then I hope we can get the community behind it. That's as far as I see it. >> And I think like I kind of I would agree like I want to say like I want the 500, too. It's not I'm not trying to be like a Debbie Downer about it. I just also when I have to make a hard decision, I go back to what is the data that I have because I'm a very hopeful optimistic person. So, if I make every decision based on that like nothing would come true. So, um that's where I I lean back on the 400. I hope the 500 would pass. I just I I go more on what the information she gave us. One more question. What I know you've worked with her before. Do you know if Have you had experience with districts that went against her recommendation? >> Um no. Uh there's a 4% margin of error I've seen in the survey the off to 4%. So, that can make you a little nervous with you know, we were at 53 or whatever it was. Um Surveys are they're just surveys, you know, um but no, I have not seen anyone that has actually gone against that. I have seen um districts uh Camp Bowden was an example where they didn't pass, but next year they went for a higher amount and it passed. That's because they did make some reductions. >> Yeah, that's the feeling the pain and then >> We'll have to discuss strategy on you know, do you want those ahead of time? Um some people believe that having a list of things ahead of time is the way to go. I will follow their lead on that. Um if we just want to see how the the vote goes first, we can do that. There's lots of different groups. But I guess I I can't think of a district that has gone against that. Um I I can't certainly look into that for sure for you. >> Yeah, just curious. >> Yeah, I am now, too. >> I have another question. If we went for the 500 and it did not pass, um I know you can't say what would be the plan, but what would be the plan? Like, I know a new board would decide that, but would you just go out the following year? What would that look like? Was it all or nothing or here? >> Yeah, you you would always want to go the following year. That That I can say pretty confidently. >> Okay. >> You just have to find that $258,000 difference. I think I'm right on my number on that. Um and then rerun that next levy. Um trying to figure that out. You want your projection. That's why looking at Bob's materials are so important, how big that gets >> Yeah. >> over time. And you never want to get away from that. You don't want to say, "Oh, okay, we we won't do anything. >> Yeah. >> We'll go for a lower amount next year." Because all that does is compound. And you know, we can we can have a separate finance meeting on that. We can do whatever and it can show it can show you how it compounds. So, we have to look at some things, but we're doing this at a time where we're trying to look ahead. We are not in frantic mode. >> Yeah. >> We've got good open enrollment coming in. Um our kindergarten numbers are back to where, you know, we we used the crystal ball, that's what it was for, for the kindergarten numbers. Um kids are, you know, they're just not registered for kindergarten right away. We need to be patient. Um So, I can't tell you what the plan would be, but I would certainly encourage you to go out the following year. This is a tough year because it's a high vote year. Um it's a lot of states are in the same situation. >> Yeah. And it sounds like every district could have something on the ballot either this year or next year. >> I'm not sure of any other than um there's districts that maybe have a data center or something like that, you know, bringing in funds, but everyone else is going up. >> Exactly. We will not be alone. >> No. >> I'm about to say it is, but you're not a dead man walking. I appreciate it. I really do. You know that. That's what we want to know about. I'm ready to Is it okay if I make a motion? >> Um yeah, you can. I just wanted to say something. It's like you know, it's like I appreciate the survey. Um the biggest thing is like you need to It shows we do have a lot of support from the from the community. Um but the survey is a survey. It's not a It's not on the ballot. And it's not talking to our building community members in the grocery stores or at church. And the experience I've had is overwhelmingly is in support of a levy. So, um Mr. Mesa, >> I'd like to make a motion with a 500 >> Okay, we have a motion to uh to the 500 per student levy. Do I have a second? >> I'll second. >> I have a second, Mr. Harris. Uh any further discussion? Hearing none, all those in favor say aye. Aye. All those same sign. >> Aye. >> Motion carries. Thank you. On to 5.1 action items. We have And the last is informational. I think we have a regular school board meeting on July 20th in this room here. And a special school board meeting uh August 3rd, same room. So, I'll take a motion to adjourn. >> So moved. >> Thank you, Kate. Do I have a second? >> I'll second. >> Thank you, Elizabeth. All those in favor say aye. >> Aye. >> All those same sign. Motion carries. Good night, all. >> I won't be here on the 20th. We'll be at >> I'm going to be here.