I'd like to call this meeting of the Robinsdale Area School Board to order. Today is Monday, December 1st. It is 6 PM. We're in the boardroom and this is the truth in taxation hearing and public comment. Before we uh before the actual roll call is taken, I would like to read the land acknowledgement. We acknowledge Robinsdale Area Schools is located on the homelands of the Dakota and Ojiway people. We recognize the painful history of genocide and forced assimilation of the indigenous inhabitants of this land. We honor and respect the many indigenous peoples who live on and hold sacred these lands. And we stand with members of these nations to fight injustice in all of its forms. We uphold the preservation of Dakota and Ajiway languages, land-based education, and tribal sovereignty. So, welcome everybody. And will the clerk please call the role? >> Thank you. Um, director Basset >> here. >> Director Bowman is here. Chair Evans Becker, >> I am here. >> Director Hillbrand >> here. >> Director Long >> here. >> Director Wuto >> here. >> Dr. Stallow >> here. >> Thank you very much. We definitely have a quorum. Okay. The first item is approval of our agenda. It's a brief brief one. Do I have a motion to approve our agenda for the truth and taxation part of the moved by director W. >> Seconded by Director Basset. All in favor of approving the agenda, please say I. >> I. Oppose. Say nay. All right. We have an agenda and we're going to move right ahead to the truth and taxation uh hearing and public comment. And I just want to make something really clear. Um after the presentation, public comment will begin immediately uh following this part of it. Uh for those who wish to provide comments, uh you'll be allotted three minutes to speak. Now, this is not listening time. Listening time will be after this. This is just going to be related to our truth in taxation. Okay. So, uh chief financial officer Kristen Hohheisel, take it away. >> Uh 25 pay 26 uh hearing. Just so it's clear, when we talk about 2025, the 2025 levy payable in 2026, what that means is for the taxpayer, it's what the taxpayer pays through calendar year 2026 and what then the school district receives as revenue for 2627. So, it's always a little bit off. The the rhythm of it is a little bit off. Our requirements of this hearing is to discuss the uh proposed property tax levy. The current year budget must be discussed. Now I will say the caveat to this is the last formal approved budget for the 2526 school year was done in June and that was our preliminary. We are working on a revise which hopefully we will have to the board soon. But just so everybody can understand that these are preliminary budget numbers that were done last spring. We can and the school board can adopt the levy at this meeting tonight and we must allow for public comments and questions as chair Evans Becker uh indicated. So, first is our school district budget. We have a number of funds and they are listed in front of you. The biggest fund and typically the fund that we always address um is the general fund. That is essentially the all most of the operations of our district uh as far as like teacher salaries, administrative costs, tech textbooks and equipment. We then have other funds. Fund two is uh food service or nutrition services as it's known in this district. We have fund four which is our community service fund. Fund six is building construction fund. This is also where long-term facility maintenance can be housed. uh debt service when we have issued debt in the past. This is how we make our payments or like I'd say our mortgage payments. Internal service, that's where we do um our self-insured health and dental plans. And then oped trust. OPED is other post-employment benefits and there is money set aside in a trust to help uh cover some of the costs of those retirement benefits. As you can see uh the preliminary budget for 2526 the breakdown of property taxes federal sources state sources and local revenue there is a percentage on the next slide too. So in case you're building calcul in in case you are calculating and this is for the general fund only that's itemized in that capacity for our general fund you're looking at approximately $24.9 million and then food service uh at 8.864 million community service at 12.3 million building construction 950,000. Now again, this is revenue. So the building construction, we're not issuing or we're not doing anything there. That's typically the interest that we anticipate receiving on investments until we spend that down. Debt service uh which is almost all collection of levy for 26 million. Internal services of revenue is 21 uh.45 million and again that would be coming mainly from um our employees. And then the trust again is interest earnings. And here is for those of you that just like to see the percentages, the breakdown of where our money typically comes from. Uh property taxes, which is what we're here to discuss tonight, come it brings in approximately 24.3% of our uh general fund revenue. The federal sources about 3%. State sources 71% and then local revenue is 1.6. That can be anywhere from um like admission to things, gate receipts, uh donations, what have you. That's the other collecting of anything that happens around our community. And then uh expenditures by program area. And when looking at this, it it's not maybe it's not as clear um as as it should be or you would think when looking at what is the revi or what is the preliminary budget when it speaks of administration. It is they categorize the way the department of education works is you categorize differently um depending on different programs. Administration is not all administration. Administration would be like the office of the superintendent, the school board, principals. Um those would be your administrative categories. But when you get into district support, you're talking other uh areas. If you think about it, who supports the overall operations, human resources, um business services, or the finance department. Those are more of your district support. So you could have administrators sitting in other categories um that aren't classified under administration. It's a little bit uh of a distinction there. And then you can see the vast majority of our uh general fund expenditure goes to reg regular and vocational instruction and special education instruction. Instructional support would comprise [clears throat] uh things like professional development uh curriculum that would be those would be things that fall into the category of supporting our instructors. Um it might also include uh administration for curriculum or teaching and learning type of things that don't qualify under the admin the first administrative category. Pupil support lends itself to anything from um again supporting the pupil something like transportation um counselors psychology psychologists social workers health services that's what falls into those categories operations and maintenance it's that's pretty self-explanatory again that LTFM can fall under that and then fiscal and other fisc fixed costs and that's mainly um our property and liability insurance. And again, the percentage by by breakdown, you can see uh regular and vocational instruction and special education instruction are are the vast majority of our uh uh expenditures in the general fund. That is the budget piece of the presentation. Moving on to the levy side of uh tonight's hearing. There are two ways that a school district can um may issue a tax levy. It's either set by state formula or it's voter approved. Those are two options. [snorts] And what happens is is when looking at these columns, this is how it works its way through um the Minnesota Department of Revenue and our counties. Um, and as as constituents get their notices, this is the timeline of how all the things as a taxpayer work. Uh, if you're going to uh contest your valuation notice, that starts in the spring. But now we've moved into the middle column, which is the November 10th through the 24th. You've received uh your proposed property taxes. We are now, school districts are now in the middle of truth and taxation hearings based on what you received. And then in March, you will receive a statement [clears throat] from uh the counties for what you will what will be finalized as what you would owe as a taxpayer. And this is you can never make this slide quite big enough for everyone to read. Um this is our proposed property tax levy by uh fund. You can see the top largest grouping is the general fund uh at just over 50 million, community services at just under 2.8 million, and then debt service at 22.7 million. Overall, um our proposed property tax levy is 76 uh,522,867. What I would like to point out is from the time that the school board had we had had a preliminary um levy meeting uh in in September and they had looked at the levy and decided to certify at the maximum. The only changes uh that had happened since that time were under the operating referendum and the adjustments and abatements. It was just over $50,000. Again, it was some tweaking in formulas and numbers. Um, and it essentially, again, it upped us by about $50,000, which is pretty darn close to uh the increase that we're showing of 44,729 compared to last year. And our property taxes then are relatively flat at a 0.06%. So what we are asking our taxpayer for is essent is close to the exact same dollar amount that we had requested last year. Now when looking at this back to the different funds um we there is a change in our general fund proposed from prior year of just under 1.9 million and community service is just over $200,000 increase and then debt service is actually a decrease of uh about $2 million. Why the changes in the general fund? It was we rece we receive additional money based on uh inflation growth on our per pupil formula. So even though our enrollment is going down uh the amount that we can levy per pupil actually increases based on inflation and that is a change. We also um different levy categories. You can either dish issue debt for long-term facility maintenance or you can do a pay as you go or you'll see it there planned payo um to cover some of your long-term facility maintenance needs two in the fall of 24 and November of 24. We did issue debt for long-term facility maintenance. We have not done that this year. seen that most of our projects are um are slowed to allow for the all of our facility work to play out, but we are um going to be doing a few million dollars at least and doing that as a pay as you go instead of issuing debt. And then our debt service uh is is decreasing uh because principal interest is we're paying that off and that is going down. And so you can see the net is what creates essentially a very close to balanced um comparison to last year. There are different categories and this is more along the when people look at their tax statement and what can happen. Why why can it look like my district portion um of my property tax statement is going up or is going down when you're saying that we're flat? There's different categories of taxation depending on depending on and I'll go back depending on where we are in if you look at the general fund um all of those categories. your operating referendum is um the based on referendum market value and then you take something like um reemployment insurance and that's based off of net tax capacity. So depending on the category it is here depends on how it gets taxed in the referendum market value. And the way I view it is if we were out to our voters um for any sort of increase that would fall under referendum market value uh because agricultural land and seasonal wreck property aren't taxed in that capacity. They're essentially saying if you're going to approve this money, we're going to have arguably um the people that are full-time property owners supporting or not supporting that referendum. the other categories it's uh most property types pay on that. Another difference with the referendum market value is to the best of their ability all properties are treated equal. Meaning if you had commercial industrial property or you had uh an apartment they there's class rates that are assigned to those um or homestead or non-h homestead. There's different class rates that are assigned for net tax capacity. So net tax capacity takes into account the type of property you have and it weights it based on that. Commercial industrial has a different waiting than a residential home. Referendum market value doesn't care. They're just saying if you have a $100,000 piece of property, we're going to tax you the same whether you're commercial or residential. So there's different formulas that come into play um that how we get to the total amount and that gets figured out depending on the category it falls into. Um and then you can see if things in if net tax capacity increased and referendum market value increased. Again, we're only asking for a specific dollar amount, but how that gets distributed to our taxpayers is like a pie. And the the amount of pi that each individual pays is based on all of the different values that play out throughout our everything that is available for taxing to us. So conceptually speaking, what this is saying is you'll see the or the orange line right in the middle that says if you have a property value increase of zero, all things being equal, nothing changed from last year. Your your valuation didn't go up or down. Um, we didn't change our levy. Theoretically speaking, you should see a slight decrease, dollars of decrease depending on your residential homestead property based on how things play out with the referendum market value and the net tax capacity. But that's typically not reality for most people and there is some form of a proper uh property valuation increase or decrease. So, if we were to look at 4% and your estimated home value, let's say it was $324,500 a year ago, now it's with 4% it's $337,480. You're probably going to see a $45 change overall um in your property tax bill from the school, even though we've done nothing. It's just how the structure lays out um as far as the taxing how the taxes roll through and the valuation increase. So sometimes you may see an increase or a decrease just based on your share of the pie, if you will, of of of the total dollar amount that we're asking. And so when [clears throat] looking at the estimated impacts, we're presuming a value increase both in residential homestead and commercial industrial of approximately uh 1.8%. 8%. And what that does to our to our uh taxpayers, whether that taxpayer, again, this would be more net tax capacity where the where it divides between commercial, industrial, and residential homestead. Um, and the impact of what that means to them or what they could anticipate. Again, even though the school district um is essentially not changing what we are collecting as far as total dollar amount. So the things that we uh may or may not control changes in market value that um that would be the assessor. So back to the slide that indicated it was the five columns that said if you're going to question your market value, you want to start that process in the spring and and get a hold of your assessor's office and and um petition that that would be the time to do that. Change in class rate and history. again, are you going from um a homesteaded area to an uh non-homesteaded market value credit voter approved referendums would be the one where a school district would um and we had seen this a year ago when the school or when the voters approved our uh capital projects levy for technology and safety and then their state adjustments. So that's why you uh may or may not see increases or decreases in in what is on your tax statement that you received the proposed in November and we'll get the final um in March. And at this time I will open it up either to the school board or to the public for questions or comments. Okay. Uh schoolboard people, does anyone have a question? No. No. No. >> The public first. All right, Director Basset says you're passing for now. >> I'll pass for now. >> All right, so then we'll open it up to the public and um it will be limited to up to three minutes and um will be our timer. Okay. So, if you're interested in making a comment in this part of the evening about truth and tax, taxation, levy, finance, want to raise your hand, stand up. Okay, DJ. DJ, you have a question. >> You need to be on the mic. You need to be on the mic. me soon. >> I think the people in the room would love to understand that I there's a fairly large administrative decrease um both in district services and administration from this year to next year. Just speak to what that means >> last year to this year. So what was on this was last year's and they're now audited numbers. What was the budget um for 2425 a year ago versus the budget uh the preliminary budget today is reflective of changes uh of reductions that we had made last spring. So when looking at and again when looking at administration and district support when you look at those two numbers you're talking 19 million to 16.6 though that was over $3 million in reductions that had come last spring um as presented through the spring. And it varies. It it's uh again bu it can be building level principles. It's most employees in this building would fall probably under administration or district administration, not all, but a significant component of it um where those reductions were made. So, when talking and and you know, I'd love nothing more than to pull up the old slides and go over that again, but I'm sure we'll be afforded another opportunity of of the reductions that were made a year ago. Um, as we look at the revised budget, I'll highlight I'll make sure that I highlight the difference of exactly what happened. But, thank you for that. But I again when you see a difference in columns, you're seeing reductions that have played through from a year from um last spring that are were were part of the preliminary budget rolling into this year. And again, we will have a revised budget. Those where those numbers would change. I'd like to be cautiously optimistic that they'll go down, but maybe not. But that's that's the difference between how we were operating a year ago versus how we intended on operating this year. >> Thank you. All right. Put your hand up. Stand up. Okay. In the back. Come on up with your Miss White. Uh, hi Ailen White. Um, I'm glad you brought up the last levy, the technology and security levy. Um, if you're going to be asking us as a community to support referendum, support levies, why are we not seeing those monies in operation? Will we see how or what percentage of technology was that levy was used for technology? Will we see what was used for security? Will we seek what kind of safety and security has been happening in our buildings? Because I know where I sit now as a community member stakeholder, where I see my neighbors go to school, where I see them with their kids being a little bit apprehensive about sending kids to our schools. I would like to know how those levy funds are being used and if we are going to hear about them on a regular basis when you produce the monthly financials because those are currently not shown anywhere. We just see I think in the budget we see property taxes. So I'd like to see a breakdown of all those taxes, property taxes, when they expire, when they're up for renewal, so on so forth. If you're having my tax dollars, I think it's not a lot to ask. Another hand or a stand up going once twice. Three times. Director Basset, did you want to ask your question? >> I do. And actually, it's probably going to go to that same slide because my questions were about the increases that went up. Um, so I flipped away from it to look at this other question, but uh, on the same one where the previous speaker, not Miss White, but the previous speaker had asked a question about the administrative costs going down. Um, the costs that are down there, um, I think it's pupil services, people, those last three, they actually went up. And is there a general comment you can make about that? and um went up significantly. The big the biggest outlier in people's support is transportation. um transport and again I I I would without seeing the individual budget breakdown I would say transportation is a a probably more than 50% of that increase uh with the increased cost of our transportation services that would fall under under pupil support um operation and maintenance again this isn't just employees this is the entire cost of how we do business. Um the shift to uh to um trying to think health and safety would be falling under operation and maintenance. We can I mean obviously fiscal costs like I said that's just our property liability cyber crime umbrella all of those insuranceances. Um and then the rest of the break to get an itemized breakdown. Uh, Director Bass said, I would be more comfortable in being able to provide that with you than standing here and trying to troubleshoot exactly what is I can tell you what's within those categories and the likelihood of what it is, but I don't I don't want to be in a >> No. Well, CFO who I'm not really expecting that. So, but thank you for just I just wanted to highlight that and raise that up. Sure. Because they're significantly higher and this is a preliminary budget. >> It is. So it's going to come back to us again. I do think that when this budget comes back, detail about how what those costs are would be important. I actually also am interested in seeing about this administration. One of the concerns or one of the questions that come to the board quite often are about administrative costs and you know I myself have questions. So given that that's the case when this comes back again I I think and you mentioned the fact that some of the administrative costs are folded into the district support. Uh I think it becomes important to tease out what's what. There are some things we all value very highly. We value it all but there's some things that it's important for us to understand if there's a change in it what the impact might be. It's very difficult to understand and see that when they're kind of crossed back and forth or integrated in a category that's not pure. So if it's administrative, even if it's a pullout chart, if it's being captured as administrative, it would be helpful for us to know what that is. Those costs uh for district support uh they went down significantly uh based on this preliminary budget. when it comes back it will be good to see what's included in those categories you know and so uh certainly I'm around you [clears throat] if there's some you know challenge with that let me know but we're not looking at that tonight >> well I did come um moderately prepared because for the viewing audience we do have a 2526 preliminary budget book that is available on our website >> and within that book it does give a description of the categories Um, when looking at uh did you when looking at pupil support, it says the increase of 2,5,792 from the 2425 revised budget is primarily due to an increase in our transportation contracts with vendors and contractual steps. So, we do have contractual steps built in there for employees operations and maintenance. An increase of $3,9,631 from the 2425 revised budget involves many reasons. A few of them being fully staffed with our custodians, road assessments, and an increase in equipment purchases. Um, and then fiscal, as explained, is an increase of $61,141 from the revised is due to an expected increase in property and liability insurance. And so we do have uh the details of all of it within that document. when we do the revised budget, those details will also be prevalent in that document as well. >> So, which was to my point, when the revised budget comes back and it's the final budget that we're asked to pass, if that's a little clearer, that would be helpful. That really was my point. But thank you so much. I appreciate that. >> Well, of course. Yeah. And I and I do I would encourage anyone um to go out to the website because when I I changing changing form a little bit um from what has been done in the past. I I do value these documents because it does provide a a nice little road map of what's happened and historical information too. So I would encourage anybody to go out there and review it uh if they if they so choose. >> Thank you. And good news about the the end result for the public is that we're not the the school district is not going up very much. at this at this moment. >> Okay, this is the final uh time I'm asking. If anybody has another question or comment related to the truth and taxation public hearing, please raise your hand or stand now. Now Okay, seeing none. >> Oh, director Bman. Yeah. I could you sort of just ver verbally give us a a road mapap to where that is in our website? Which section is that in our website? >> Uh I'm gonna look to Molly a little bit because or Derek >> because he has it's under business services. >> Under discover >> you go to discover and then you go to business services and then there it is. >> Perfect. if you look for budgets and our audit too in case you want some light reading with that as well. [gasps] >> How much fun. >> Okay. Is there a move to adjourn this meeting? >> Is there a move to adjourn this meeting? >> So moved. >> Moved by Director Ruto, seconded by Director Bowman. All in favor, please say I. >> I. Oppose. Say nay. Okay. So the truth and taxation public hearing is now over. Listening time will begin in five minutes. And so if you are interested in talking at listening time, pick up a form, fill it out, and get it to Molly over there. Okay, >> ready, set. >> This is a journ. That's five minutes to listen.