like to call to order the Shocki School Board regular business meeting for June 23, 2025. Amber, can you please do the role? >> Sit >> here. >> Peterson >> here. >> Smith >> here. >> Aldrich >> here. Johnson >> here. >> Sha Roofy >> here. Please join me in the 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. Good evening. Welcome everybody to our last uh schoolboard meeting of the fiscal year. And we get to start with our favorite portion of the meeting, uh, Saber Pride. And leading off item 3.1 is our spring athletics presentation. And here to present is our athletics director, Matt Hansen. >> Welcome, Matt. >> Thank you. And first, we're going to start with our last team to go to state, and that's our boys track and field. and boys and girls, but we have a couple boys here. So, Coach Haskins is going to kind of give a recap and we got a couple students here as well. So, got Henry that showed up tonight as well. And so, I'll just read a little recap of the season here. Uh the 2025 track and field season was a huge success. The girls were a young and developing team, but even with a lot of youth, they had a few standouts on the girls side. The boys side saw a lot of returns with a few new faces as well. This year, the boys had one of their best seasons in the past two decades. The boys team qualified for the true team state beat as a team the second year in a row. Previously, the Shining team has not has not qualified for the true team state since the early 2000s. U finished 10th as a team at 3 state. They also finished second as a team at conference and won the section 8, which they have not done since the mid2010s. At the state meet, they finished 11th place as a team. And during the season, our athletes broke a total of seven school records, including the boys 200, the boys 4x1 relay, the boys 4x2 relay, the boys 1600, the boys 3200, the boys long jump, and the girls triple jump. This year, we also had one of the most successful seasons in getting athletes qualified for the state. On the boys side, we had 12 athletes qualify for state in 12 events. On the boys side, that is the most athletes we have ever qualified for the state and the most events we have ever qualified for. If you combine the both boys and girls. We have a total of 14 athletes qualified to state in 16 total events. That is the highest combined total events we have ever sent to state both boys and girls and the second most athletes we have sent to state ever. The same goal for athletes the athletes the events they competed in and their places at the state are as follows. Boys 100 finished in fourth place. In the voice of we had Sir Roy Miller finishing 10th place and Joseph finishing 15th place in the one mile finished fourth place and all state and also he was in the two mile and third place it was all state and set a new school record half the state within 9 and 12.28 second finish. In the boys 300 hurdles, we had Colinson who finished 10th and Alan Thomas who finished 12th. In the boys 4x100 meter relay, we had Christian Ferris, Emanuel Tay, Joseph T, and Sir Miller who finished fifth place and were all safe and set record of 41.77. In the boys 400 meter relay, we had Emanuel Tay, Jacko, Joseph T, and Sir Miller. They finished in fourth place and all state school record 126.26 26 and boy shots for 12th place and discus was tied for 26th place. The boys high jump horse for 26th place. Boys high jump for 26th place. Colin Hensson qualified the full 17th place and the girls 100 hurdles we had in 12th place and then Sammy cared three events and was all state in all three place in the high jump, seventh place in the long jump and seventh place in the triple jump. So overall this year I did such an amazing job both season and state. So great year and the two two guys we have here are Colin and Owen. So congratulations guys. All of this >> right there. >> We're there. >> How you doing? >> Congratulations. Congratulations. Congratulations. >> Thank you. Just a random horse. >> All right. Uh, moving on to our next sport to highlight is our adaptive softball team. So, the Southern Stars had another great season. Again, this is our co-op with Chesa, Chan, and Prior Lake. Uh they finished around 500 during the regular season, but they got hot uh at the end of the year, qualified for state. Uh they finished with the consolation prize, so two and one at the state tournament. Uh so it's a really fun year for our adaptive uh softball team. Our next group is our boys golf group. So, uh, we kind of talk about how good our conference and section is throughout all of our sports, but, uh, our boys golf team, they had the best, uh, first day qualifying score of 301. They did not make day two. So, to show how deep our our team or our section is, um, the state champion Chan Hass came out of our section and they were like 15 strokes better than that. So, it was ridiculously good. But we did have four athletes qualify for day two. Uh Adam Wagner, Max Brook, Ren Story, and Brandon Busher. Uh they did finish second place in the conference this year. Uh several top finishes throughout the season at invitationals and then throughout the conference season. So uh just a really really talented group of boys golfers in I was talking to a few people while we were at the section meet like how far boys golf in Minnesota has come. See, we we shot the best we've shot in years and years and years, and we weren't really close to making that day two. So, uh, boys golf. Uh, our girls golf team, little bit of a rebuilding year. Uh, unfortunately, we didn't have anybody come out of the first day of sections. Uh, coach Don Corto had this to say. He said, "We worked really hard with dedication. Uh, paid off. We improved our team average from the first meet to the end of the year by 30 strokes, which is really good." Uh they did have a couple student athletes that were all conference uh Emerson Young and Zoe Collins. So he says the future is bright uh with the girls working really hard. Uh next is our boys baseball team. So our boys baseball team traveled south for the first time this year. They did a spring trip in Nevada. Um maybe that's the reason for the success they had all year, but uh they end their season 18 and five. Uh they won the South Suburban Conference for the first time in 10 years. Uh they were seated number one in our section which is 248. Uh they ended up going one and two. They beat Jefferson in the first game and then lost. I don't know if anybody was there but it was an absolute heartbreaker and to Minnetonka who ended up going to state and getting second in state. Uh but they hit a two out uh two out two strike home run to tie it in the bottom of the seventh and then ended up losing in the top of the in the eighth inning. So uh but unfortunately that there's a little bit of a hangover there. They and they lost to Eden Burberry in the elimination round, but a very very very talented group of seniors led by Nick Johnson and Carson Schroeder, but really this was kind of senior heavy team uh similar to many of our boys teams this year throughout the entire year. Uh but just really really really great accomplishment winning the South Suburban Conference. Uh the one thing you'll notice in the next couple of groups that we talk about is on the academic side. So this team uh won the all state gold standard. So that's only eight teams in the entire state get this. So our boys baseball team was one of eight to get the all state gold standard, which is outstanding, not only on the field, but off the field as well. Uh our next group is our softball group. Uh this was a little bit of a rebuilding year. Uh we had a new coach, Coach Lindseay Van Lanningham. Uh record wasn't the greatest. We finished eighth in the Salt Sperling Conference. Uh this was a rebuilding year for sure for our team at one point. Uh we had two eighth graders, four ninth graders, and the 10th graders in the starting line. So uh just again uh one of the years we're going to rebuild. Uh but we were led by seniors Paris Wellander and juniors Bren Olse and Maddie Anderson. Um they look to bounce back next year, but similar to the boys uh the base, you know, similar to baseball team, the softball team excelled off the field as well. Uh they're in the running for one of the national fast pitch coaches associations academic awards. uh they had 11 of their 20 players had GPA of 3.7 or higher. So uh pretty impressive uh on the softball scene as well. And then our girls lacrosse, this was our first year coach coach Mitch Mitch Benson. Uh we had our first winning season regular season. We're seven and six. Uh it's our first winning season since 2019. So uh it was good to see a new coach and u our girls playing really well. Uh unfortunately we lost to Jefferson. Really close fun um first round match up. We did lose to Jefferson. Uh our team was led by Charlotte Holland and Rachel Suave. Um and they were just a really really solid team this year. It was fun to watch them throughout the year. So that was our girls. Uh our boys team was just under 500. So they were six and seven this year. Uh they were sixth place in the conference. Uh they received the six seed which is again we talked section in conference by far the toughest section in the state. The state champion ended up coming out in Dina. Uh but we played Rosemont. We were tied with like six minutes to go in the game. So it just shows the six seed was as close to the three seed which uh really gave the two seed a really good uh game in the next round. But they played well. The three seniors uh up top there Max goals Zack Doctor and Zack Lee. Uh we're our leaders. We had a couple really young kids as well. So the future is bright for our boys lacrosse team uh with the seniors exiting. But like I said, a lot of young firepower coming coming behind them. A couple more. Our boys tennis team uh had another really good season. They were eight and six. They were third place in the conference. Uh they ended up winning their first uh playoff game or the playoff match. Um they beat Prior Lake, which is always kind of a real fun thing as well. uh but ended up losing to the eventual state place winner which was Eden Prairie. On the individual side, we did send three to day two. So um Anuj who's a guy right in the middle there. He ended up uh just an epic epic match. Uh lost 7676 in his semifinal so he couldn't advance to state but he did finish in third place. Uh I don't think on the far left side is AE. He's a senior, but the other one's a junior. Uh they finished in fourth place as the number one double. So a really good showing for our tennis team. Similar to baseball and softball. Uh our tennis team, it's even hard to fathom, but uh they won the team gold award as well, and their G was 3.92 as so uh and that takes everybody who qualifies for the section team. So, uh, just a really, really, really outstanding accomplishment. Some really quality, uh, student athletes there. Uh, and then our final group, uh, the inaugural season for boys volleyball. Uh, they finished 23 and seven. They were second place finishers in the South Suburban Conference. U, not sure if anybody went to the playoff game at Jefferson, but it might have been one of the best volleyball matches I have ever watched. It was a five setter. Uh I think it was like 23 or 25 23 27 25 27 25 28 26 and then it was like 15 10. So it was just back and forth for three hours. Uh absolutely outstanding volleyball. Unfortunately we were just on the wrong side of it. U but a great year. When I asked uh coach Fleming if she could give me just a little bit of a highlight she said well we set a lot of records this year. Makes a lot of sense. But she was she was uh yeah she was she was very excited about the season and what's uh yet to come. Uh another one of our really quality student athlete teams. Uh they won the team silver academic award. So just really really quality outstanding um student athletes in the spring. I kind of made one quick note. I was doing like a by the numbers for the whole year. Uh we had six conference champions. We had nine programs of events to state. We had a runner-up finish in wrestling. We had two third place finishes in girls swimming and football. A fourth place finish in boys volleyball. Two fifth place finishes with boys hockey and adaptive softball. A triple AAA winner which was Colin who was here tonight. We had 40 athletes signed to play in college. Uh we also had a state champion uh Ari Zelen. Um so just like overall just a ton of pride and a lot to be proud of for this. I kind of joke to myself. I was doing a count through. I attended 100 evening events this year. So, it shows we were good. It led for a really busy year, but uh you throw a dream state in there um and hockey day and it just felt like the it was one of the probably the most successful seasons for the Sabers. So, it was fun to be a part of and maybe we won't quite replicate it, but it'd be fun to try to do it again next year. So, any any questions from the group at all? I always love these updates. Thank you for having me. >> Yeah, I just I was echo that. I just have a comment and I just want to thank you and and the other folks who work in your office because you you do just a great job staying on top of everything, keeping organized. People don't understand, especially in the spring with weather changes and all those extra things that are done for kids, the sendoffs, the state tournaments, those are incredibly special moments and you had a ton of those this year. And your team, your team in the athletics office just handled it brilliantly. So, thank you. >> It definitely takes a village. I know there's a lot of people who love uh send offs and all the fun things. So, that was was fun. All right. Thank you. [Music] >> Uh, next on our agenda is item 3.2, National Safety Month Partnership Spotlight. And here to present is Jimich, our assistant superintendent. >> Yes. Thank you, Chair Smith. Just in honor of National Safety Month, we wanted to take a minute to highlight a few of the things that take place in Shaki public schools. And you know, when you take a peek at this list, I would just say, you know, safety is something that we think about doortodoor every single day. Um, it's I tell people it's the most important thing that we do because everyone wants their child to go to school and have a safe and caring experience. It's everything from the the physical health to the mental health, making sure that we're prepared for any number of things that we we obviously hope um don't happen, but making sure that we have a response if in fact they do. Um, one of the most critical things that we have are amazing partnerships. You know, as usual, I want to highlight the Chak Police Department and just the open lines of communication and their willingness to to work with us on anything to plan ahead and when needed. Um, you know, make last minute adjustments. I think, you know, going forward, and I never thought I would say this, but we've got some exciting things coming up with the fire department and the way that we handle um some of those events that take place in schools and the way we run those drills. and we'll be around talking to you a little bit next year about some of the things that Canon and I are working on um right now to to sort of streamline the way we handle those emergencies or more so the the false emergencies that do do come up from time to time. And you can also see, you know, we've got any other any number of other partners up there, you know, from the county to our local healthc care facilities. And um I love you guys. We're always working with Palmer. We've got good things coming up there with Transfinder and other ways to make sure that parents are more connected with their kids than ever. >> You know, again, you can just see um you know, we're constantly trying to have kids be involved in this. We want to introduce them in positive ways to our local law enforcement, fire department, etc., etc., so that they have good relationships in the need they ever need uh ever need them in any circumstance. And want to highlight Hearts Safe Schools. We were the first hard-safe school district in the state. Uh we testified on behalf of uh a bill that did in fact become a law where heart having a hearts safe plan will now be required. We will be the only district in compliance with that uh law in about a week when it when it uh comes into effect. We anticipate being uh highlighted again by Care 11 for the work that has been done. And we are proud to announce a new AED partnership. Um, for those of you who are at Schleer Field, uh, Jenny Hendris had another AED donated to us. It's a tower style, um, uh, AED that will be placed at Schleer Stadium, um, at no cost to the district because, uh, as much as we had the AED donated, you'll see on the next slide that we also had a group known as AFA, which look that one up real quick. Um it is the um advanced first aid association which has donated us heart gel for the first four years and the city of Shakipi has partnered with us to have this device installed at Schleerfield. So we have another outdoor facility that will be covered by AEDs much like Bondfield and some of the other places that we have on campus. Uh we are continuing our reunification work. Um, just last week, uh, we had an event at the community center, making sure that we are, uh, make that we're ready for the possibility of needing to use that space, uh, should the high school ever need a reunification site. Um, in the meantime, it served as an opportunity for us to tabletop, um, you know, again, what a reunification would like look like at our high school. and we're constantly keeping that relationship with the city and county in a place where in the event we were to need to reunify, we are as ready to go as you possibly can be. Uh, another piece that we are pleased to announce, um, and I just received a an exciting email on this today is the safe routes to the school, which is something that we partner with both the city and the county on. Um in 2025 um in working with the department of transportation we identified a number of needs in our school district. And on the next slide you will see that we have been in conjunction with the city given the the following two grants. uh one of which is for roughly $70,000 and will help us to construct better uh ways of getting into the high school for students crossing the street and then also a significant amount of money to update um the crossings near Sweeney Elementary and also Lions Park. And I know I just walking into this meeting as a met and I were talking a little bit about who will be the primary contact going forward with the city and county working with principles to get these pieces in place as quickly as we possibly can and hopefully funds will continue to flow because we have other identified needs in the district as well. So, these are just some of the things that we're doing. Um, we're always excited to to share what we're doing with the board in the in the ways of safety. I think every time we develop a system, we've discovered two more that we should have. You know, sitting here tonight, I feel so much better than I did even three years ago. Um, and the work of, you know, the work of Canon, the work of our local law enforcement and other first responders is second to none. So, want to want to thank everybody who's involved. If there's any questions, I'm happy to take those. >> I just comment. I mean, the the safe schools, the AED program is it's just just amazing. I mean, Tim and I done um we have to get like CPR training for coaching and maybe others here have as well, but AEDs, they really are such a game changer. I mean, they the CPR training is now is just do it until somebody comes with an AED. I mean, it's just it's just changed everything and and having them available is it's just amazing. Well, I mean, my life was saved by an AED and that isn't something that's ever lost upon me. And the fact that we have these in our schools are something that I'm very pleased with and happy about. >> Mr. Chair, to expand on that, that's a perfect segue. Thank you for setting it up for me. In terms of who uh is certified and trained as part of the heart safe, is it certain staff uh from our student perspective, health and human services academy? Would there ever be training offered at a student level? What what's the scope? So right now um Tracy Cornier oversees uh and make sure that each school has a team. Building administrators are responsible for identifying a number of people within the school with the thought in mind that we want to make sure that there's always somebody there who has had the training. So we try to look across job descriptions. We try to look across fields so that we've got as many hours as possible covered within a building. I know um at both the middle level and the secondary level um we offer courses at the at the middle level. It's called Code Red. Code Red allows students to to leave with a certain level of first responder certification and they do in fact cover um you know both AD, CPR, all of those pieces. So um do we have students formally that are a part of the team? No. But do we have teams you know do do we have kids when I was in East Middle School who I would have been comfortable operating you know one of the devices on me? Absolutely. I think I remember doing first seventh grade, right? That's certainly way before the AED was even. But that was uh to your point, it's a game changer to have that technology and just to be comfortable using it. You hope you don't have to, but we're glad it was available for you. So, thank you for all that effort does. >> And a huge thanks because again, fund raise. Every penny of this has been at no cost to the district and again it's just been great teamwork and you know Tracy and her staff have done a wonderful job too. >> Are we fully as a district um staff is the right word but uh have a wherever we need them or are we still short and installed in our school? From a legal perspective, we have them everywhere we need them. And in fact, we probably have them in places such as Bonfield and Schleerfield where we're not even required to at this point. But yes, each of our sites has them. And again, depending on the size of the site, that would give you the number of a you know, I know you said we had at least two. Um I I'm not sure how many we have in high school, but yeah, we're >> I could add a little bit of that when I Early in my tenure here, I remember meeting with Ed Zat and with Janet and laying out what is, you know, what it project what our what it means to be, you know, ads in appropriate locations across the district. So, did that in partnership and again I think that goes above and beyond any standards for doing that, but certainly had Jany's input into that as well. And yeah, and she's just remarkable. I mean, she made that her goal and then it was the all right what about the ongoing recurring expenses and she's done that too and just a tremendous partner and it's really neat you know she didn't do it seeking any recognition but it's been really gratifying to see her get you know some local recognition and then even broader and then you see her effort is now being emulated which kind of Jim was referring to even in state laws and expectations for schools across the state I I think that's just speaks volumes. >> I know St. High School has a foundation that they give grants to schools for and I know they've also received money from the National Federation Foundation for a money as well. So, I know schools are taking advantage of what's up for free people safe. Thank you. Thank you. >> Next our agenda is item four. The consideration of the agenda as presented. >> So move a second. Have a motion by a second by Alder. Any discussion? Seeing none. All those in favor? I opposed. Motion carries. Next on our agenda is item five, public comment. This is the time where members of the public can participate in the meeting without being part of the meeting agenda. A member of the public may address the board on an agenda topic or on another topic pertaining to schoolboard business. We allocate a total of 15 minutes for public comment at this meeting. Each individual speaker may speak for up to 2.5 minutes. The sign up for public comment has been conducted online and in person prior to this evening's meeting. No one has signed up for public comment prior to this evening's meeting. We will move on to the next item on the agenda. Next in our agenda is item six, the consent items. And you can see Amber has up on the screen. We have several personnel items, minutes, bills, wires, and the school board advertising agreement. Motion to approve as presented. We have a motion by Peterson, a second by any discussion. One comment being new to the school board, I'm not sure if this is normal and this isn't necessarily something that needs to be answered today. We could do it offline too, but I'm just curious with the the numbers of resation numbers like 1920. Is that like a normal amount of attrition that we see? And there's a few departments in here that seem heavier than others. So I I I just want to acknowledge that it's in here and I know that a school of our size is going to naturally have some of this every year, but I was just curious if this is, you know, something that we need to have our radar on. This is something we can address. >> It it isn't it isn't an unusual amount. Some some of what you will see on this is people who were um probationary and not bringing back and you'll also some see people who will be resigning and some of that is a choice rather than so that so um in terms of voluntary leaving um not inordinate amount >> for those watching at home that was a Keep our director of human resources off here. So, thanks. >> Hey, Mr. Chair, just just a quick comment. I've had the great pleasure, short and sweet, working with uh Mary Jane over at Pearson Learning Center as a subcommittee assignment. Um got to meet you three times and then she decided to retire. I promise I didn't have any influence over that, but just wanted to wish her well in retirement and it was an honor to serve Further discussion? Seeing none, all those in favor? I opposed. Motion carries. Next on our agenda is item seven, some resolution for donations approval. And we have one one organization heart with a donation on there and this is a resolution. I would entertain a motion to approve. So move >> second motion by broine a second by Aldrich. Any discussion? Seeing none. Amber, can you please do the roll? >> Yes. >> Yes. >> Peterson. >> Yes. >> Smith. >> Yes. >> Aldrich. >> Yes. >> Johnson. >> Yes. >> Roie. Yes. Resolution passes. All right. Next up is the action portion of our meeting. We have eight items. Um in this section, item 8.1 is our community education census resolution. And here to present is Lisa Ron, our director of community education. Welcome, Lisa. >> Good evening. Thank you for appreciate being here. Um You may recall last year I was here uh at the June meeting with the the same resolution to update the district population. Um this year according to the state demographer our population has increased from 51,639 to 52,629. And by passing the resolution it does create more funding. There's new data that's been collected and shared by the Minnesota state demographer and um the demographer updates populations to help MDP disperse funds and our funding is based on district population. So um that resolution is is there for you to pass if you so choose and just go ahead Maybe it's in here. I didn't look at the resolution in detail. What would the state demographer give calls it snaps the chalk line? Uh what are they measuring that growth? Is there a specific you know is it January 1 to whatever or how are they computing that? >> It's for um it's a year computing. I'm not sure if it's a calendar year of January 1 to January one. Um, they release those June around June 1st. So, um, I can find that out for you. >> Yeah. And and then just a follow up, we don't have the answer today, but like what methodology are they using to even come up with population is it based on, you know, who's homesteading a house and not, you know, I just I'm curious how they come up with the, >> you know, the math, if you will, play. Well, that's good. So, >> we'll find out. >> Very good. Thank you so much. >> Further discussion motion. Motion by Peterson, a second by Brophie. Any further discussion? Seeing none, this is a resolution. Amber, can you please do >> Zitic? >> Yes. >> Bel, >> yes. >> Peterson, >> yes. Smith, >> yes. >> Aldrich, >> yes. Yes. Johnson. >> Yes. >> Yes. Resolution passes. Thank you, Lisa. >> And next on our agenda is item 8.2 uh Head Start program contract and Lisa will present again. >> Thank you. Um this also comes up once a year. um Head Start in room over at Pearson to uh for their program and um there very little changes to that uh lease. It's just an increase of $50 a month um over what it was last year. So any questions on that one? There are no questions. I'll make a motion to approve. Second motion by Aldrich and a second by Johnson. Any further discussion? See none. All those in favor. Oppos. Motion carries. And you're here for one more item. Item 8.3. I'm glad this was arranged this way. So, this is item 8.3 YMCA school age care contract. present together. >> Yes. So, this is an agreement for the YMCA to provide school age care at our elementary schools. Um, they do so for grades K through five and the the following are the changes that are in there. Um, they made updates to fees to families, um, which is pretty typical each year. um an update and then I updated the fees that were owed to Chak Public Schools as well as we added number 24 which was actually um uh you know if either party decides to terminate the agreement um it's pretty difficult to have in these sorts of agreements and realize we had that in there so we added that. Any questions about this one? These are year to year contracts >> year to year. Y >> and uh is there a summary of what the change are? And as you said, it's it's reasonable that everything >> Yes. >> Is there about a 4% increase in um in their rent for our facilities? And that's what we've done each year. And then in terms of the fees being charged their families, is that roughly the same percentage or is it slightly less than% by a second by Peterson. Any further discussion? Just have a real quick comment. My my daughters attended this all those years ago and it was great during the summer. It was a phenomenal experience for both of them. I'm just, you know, I'm glad that all those years later say that about my own kids, but that this is still strong. >> Lots of field trips. worth it in gold. >> See no further discussion. All those in favor? >> Post. Motion carries. Thank you, Lisa. >> Thank you very much. Uh, next on our agenda is item 8.4, uh, LTFM 10-year plan. And here to present is Bill Nazi, our director of finance and operations of Beni Architects and Engineers and Ed buildings and grounds manager. Welcome. Uh good evening. Uh on your screen you will see a presentation prepared by uh Ben at at W Architects and I will shortly hand it over to Ben. But before I do, I'd just like to ceue up this agenda item. Uh our LTF standing for long-term facilities maintenance um 10-year plan is an annual process as required by the Department of Education. Uh Ben is here to give an overview of our LTFM plan which is a summary for uh funding for projects like deferred maintenance, health and safety related projects, uh disabled accessibility type projects. Uh what you will see is our planning for both fiscal 2026 and next year and then a 10-year outlook. Um I should mention that LTFM is a restricted funding source. Um, and the projects, as Ben's going to go over, can be used specifically for deferred maintenance, health and safety, and disabled accessibility. You would not be able to use LTFM revenue for teaching and instruction or things of that nature. So, it's a restricted set aside specifically for that purpose. Um, I'm sure I'm paraphrasing much of this and so, uh, Ben is is here to, uh, to provide some clarity, and I should mention before handing it over to him, there there are a number of attachments in your, uh, schoolboard agenda. Uh, Ben is going to go over the presentation. And our intent here would be to not go over the great detail of the 10-year expenditure or revenue plan, but know that it does tie out and reconcile with the the document that Ben is going to share with you tonight. So, with that, we'll hand it over to that. >> Great. Well, thanks for having me. Again, Bill mentioned this is an annual process. So, as a district, you go through this every year. So, they do make you do the 10-year plan, but obviously every year you have a chance to reset it, revise it as you go. Why do we do this? uh pretty simple to get the money you have to approve the plan. So that's the reason why we do this and bring it to the board so you can receive the funding. Um there are a series of things that go with it um that are all the attachments that are on the board packet. Um and uh which with the resolution, the tenure plan itself, the expenditure plan and a statement of assurances all that LTFM has been around since 2015. As you'll mention, it's allowed expenditures deferred capital maintenance, increasing accessibility, and then health and safety projects. Um, it's not allowable expenditures for new facilities um or heavy remodeling. So, you can essentially it's it's intended so that you can replace the assets you current have. Example, if you have carpet in this room, it's deteriorated, you can replace it with uh so for uh this coming year, your revenue projected uh the first two lines is all about how much money will you have. So your revenue is projected just over 900,000. We currently projecting a fund balance of 1.4 million. Um and that then after that now comes the expenditures. Uh so we there is some set staff salary coded to LTFM as all expense. So we track that. There's annual inspections that that is you have to do every year on fire doors etc. So we track the budget for that. On the next July items, interior services, mechanical systems, those are allowances that we uh create just to give some wiggle room over the course of the year. We know things will come up. Um something breaks that we weren't intending what didn't project that needs to fix it uh and keep things moving. So those are some budgets to do that. And then there are also some identified projects that we uh try to do every year to try to maintain your assets. So door actuators at Pearson, those are um those are the automatic buttons that you push on a door that door opens automatically. Again, that would fall under the accessibility criteria. Um track maintenance that um is maintaining the track surfacing at field. Uh and then at West Middle School, the elevator is an aged um aged piece of equipment that has had several service calls. It's time to replacement there. And then the T room at West Middle School is also identified. I mean, those you last year, you might recall that we are currently working on the east middle school room. So, this is about expect schools. again that uh we projected that your remaining uh fund balance be 960,000 or so which as a general rule of thumb we try to do is keep your fun balance kind of equal to your projected revenue so we're falling right in that and then I often get asked um how do we come up with these projects and are we tracking this and do we have all this covered and are we trying to project things and the answer is Yes. Um there is a database um that we maintain for the district of projects that uh and anything that's talked about kind of gets thrown on that database. Uh so and it's come a couple different ways. So one certainly that team administration all have expertise in the building and kind of know where their problem spots are. So those are things that we track. um architects and engineers from old we walk the buildings and put things on the list that we're projecting are going to need attention in the coming years. Then third um we meet with building principles um and try to track their kind of pain points pinch points to make sure we have all those things tracked through that. Uh we created kind of the top top needs list as we kind of think about the next 10 years of what we're anticipating coming your way. Um, but that shouldn't minimize there's been a lot of great reinvestment. So that the blue arrows show that you've been kind of spreading the funding out across your facilities and be able to accomplish some really great projects recent. So just want to give you a little update on where I just like to add because those are leases. We can't use LTF for those. So >> yeah, good point. That said, um working with the landlord and I think a few few of the improvements needed over time. So working with the landlord still trying to find ways. So just to uh wrap this up and thanks for your presentation. where we would go from here should this be approved um in order to be eligible for funding we would turn this around and send uh the 10ear expenditure plan the 10ear revenue plan Dr. I've been assigned the statement of assurances and then the resolution to go along with that up to the Department of Education um by their their deadline in order to be eligible for uh the LTFM program and funding related to it. Um so Bill hypothetically we submit all this and it's approved state and something comes up we just submitted this 10ear plan are we you know is this written in stone or is there flexibility to make amendments that's again 10ear projection who knows what >> absolutely and thank you for asking that I should have mentioned that at the beginning uh no this this is flexible um the department of ed recognizes that this is is our best at this time, but things will change. And so, uh, we try to keep our one, two, maybe even three years as close as we can, knowing that there's going to be changes there, too. Um, when you get out into the year 7, 8, 9, 10. It's it's based off of building age more than anything else and and projecting that, okay, this building by year seven is going to be 25 years old. So typically that's when roofs and windows and boilers and things of that nature start to come due. Um so it it is it is flexible based off of just add on to that that it's not just flexible based on need but um you know none of none of these future projects are designed or have been publicly put out yet. So there are also things that could happen through the course of that process that we discover, hey, you know what, this bathroom that we thought was the best plan, that one really isn't, we should really do this one or maybe we get a construction market thing that happens that drives bids higher than we think is fair. So those things, there's flexibility built into all that so we can react to what happens. >> Well, and and somebody wanted to go on record. It's an annual process. Obviously, we have the experts in the room here that we're looking at it. We're making adjustments, but just wanted to make sure that that was that point was clarified. And then as a followup because I was going to ask a similar question for those non LTFM eligible eligible expenses, negotiate with the landlord, but if there's something the district has to come up with funding, maybe this is a question as well. What other funds are available? from a general fund. How how would we go about some of those projects? >> I will say that the projects that we're doing at the summer are being right now fully funded by the landlord as part of our lease agreement. Um if we exceeded that amount >> then other possibilities. >> Yeah, there there really would not be a funding mechanism for that. So it would be general fund. Um there's always operating capital would be an allowable use for for projects of that sort. Um but as we'll talk about when we we talk through the budget, we have some curriculum adoption expenditures are coming from that property capital allocation. Um or funding opportunities outside of our ongoing allocation. Right? So we're talking about parking lots. So that will be an abatement bond opportunity down the road. Um but again those are tax impact related things. So to answer your question directly outside of LTFM and projects that would not be eligible for LTFM more often than not. >> Thank you. >> I just have a quick question. Um I see on the chart here there's a lot of ventilation needs. Can you explain what that might be? >> Yeah, sure. Um so uh those two buildings in particular I think there's Long story short, uh you're actually should be uh your district's in very good shape ventilation wise in terms of age of systems and uh indoor air quality being provided. Most of your systems range in like the 20 year old range which or newer which is a really great spot to be. most school districts um they're often facing 50 year plus systems. So you're in a really great spot. There are a couple older systems um that Pearson and West might be one of these two um an older system about half the building upgraded. Um in all of those cases there still need to go back and get the rest of those facilities. So, we got a couple older systems left >> by upgrading the ventilation that that it saves us on the maintenance costs and it's also the newer systems are more efficient. >> So, we're saving money, you know, with the running and operating of those things. So, maybe where you're going is why isn't that done yet? And long story short, it's it's funding versus the possible projects are exceed your allocation every year. So um it continues and need to be deferred until there are other funding sources possibly available or you say I can imagine units to replace and I don't know what the something like that is but if we have 900,000 plus fun I'm sure that replacing something like that at one building up a lot of Maybe that would even be enough. I have no idea. I have no idea what a commercial air conditioner on a school building would cost, but I would imagine that it's a lot. >> Yes. >> Knowing how much it is to do it at a house, imagine how much one of those cost. >> Well, that brings a good question, Bill. Generally, we keep that fund as you mentioned that we keep it at cost in cost out. So, if we have a large ticket item like a roof or something like that coming, what is kind of general guidance on how hard on we would spend that account. >> Um 50,000 I mean obviously there's emergencies right keep money for >> yeah um I think we we have tried to keep it at about a year's revenue as I mentioned. So, we're we're about at the floor of that that there's nothing in in statute related to LT LTF that says you couldn't go lower than that. You can't deficit spend or have a deficit fund balance. Um, but you you could go lower than that temporarily. Um, I think some of the larger ticket items that that have been discussed maybe out into the early 2030s would be beyond the scope of our annual revenue for LTFN. we may have to as we discussed in the finance take a look at at how we're going to approach those larger projects because it would it would probably be outside the pay as you go here. >> I think that's where schools get trouble and then they kick the can down the road, you know, needs for their facilities and they get to the point where they they just they can't afford to replace them because the costs are so expensive and they didn't maintain it up front. to get more out of it, especially small school districts that don't have the LTM, >> but you know, like you said, Ben, we're in a good spot because we have a lot of newer facilities. So, we can't ignore upgrades that are needed as well. >> It's really not I always try to draw the parallel to probably what you do with your own house, you know, unless you unless you build a brand new you're in a house that's been around for some time. It it really is kind of parallel, right? You you'll save and go do a project and you'll save and go do a project. Something will break on you and you have to do something that um you maybe didn't weren't planning on spending the money on, but you've got some savings to do it. Um and then every once in a while you have to go to the bank and you have to get a loan to go do a bigger project on your home, right? And it really kind of is the similar concept with school districts. Um because just like at home, you know, you sure to win the lottery, right? You don't have all the funding available to do every little thing you possibly just a lot bigger scale, a lot more square feet. And that's why we like to keep that balance in there, Nick, is so if an emergency comes up, we have the money now to hopefully cover that emergency and not have to say, "Oh, we have to wait till next year." We have that there that balance there for emergency situations. Any further discussion motion? So move second a motion by a second by Aldridge. Any further discussion? Uh this is a resolution. Amber, can you please do the role? >> Zick. >> Yes. >> Valdez. >> Yes. Peterson, >> yes. >> Smith, >> yes. >> Aldrich, >> yes. >> Johnson, >> yes. >> Broy, >> yes. Resolution passes. Thank you. Thank you both. >> Bill will remain and present our next action item. This is uh the LTFM resolution for Southwest Metro. >> Yes, thank you. Uh really the next two agenda items and we'll take them separate but they are obviously related um are also our annual proc and annual process related to Southwest Metro Intermediate 288. We are a proud metro uh member of Southwest Metro. Um and and as you know, Southwest Metro does not have a tax base um as an intermediate district. And so their member districts are authorized to levy on behalf of the Southwest Metro Intermediate District based off of utilization. And really the key um attachment here in in agenda item 8.5 is the third one that says pay 26 for fiscal 27 usage calculation levy allocation formula. Uh that will give an overview of uh the levy obligation based off of utilization. And you can see um that in that attachment shock v is uh Our usage is 26.65% of the total. So, um, our percentage of the LTFM levy, the lease levy, and the safe schools levy is based off of that utilization. Now, you may wonder how that utilization has changed from the prior year. Last year, it was 25.77%. So, the increase is just under 1% from last year. um this year based off of that utilization the total for those three categories again LTFM lease levy safe schools levy is $230,67945 last year was just about 216,000 so an increase of approximately 15,000 from the prior year based off of those three areas um again similar to the the previous agenda item if approved uh I We take this information and get the resolutions back over to Intermediate 288 and and then make this part of our levy information system data entry process later this summer and then part of our levy process for taxes payable in 2026 district revenue fiscal 27 uh next December as part of our truth and taxation here. That's that's really all I have for this one related to the LTFM project for Southwest Metro. I'll make a motion to approve this present. >> Second motion by Peterson. A second by Brophy. Any discussion? Seeing none, this is a resolution. Amber, can you please do the role? >> Sit. >> Yes. >> Valdez, >> Peterson, >> yes. Smith, >> yes. >> Aldridge, >> yes. >> Johnson, >> yes. >> Yes. >> Resolution passes. >> And then seging right into 8.6 schools le resolution for Southwest Metro. Bill will present again. >> Yes. So, um, similar to to Joby School District, we run a school resource officer program as assistant superintendent mentioned earlier tonight. Um, Southwest Metro also runs a a school resource officer program. And so that's what they use the safe schools levy portion for is a school resource officer safety equipment and then non-instructional technology hardware. And I'm just reading right from the resolution here. Uh, the total amount for that is budgeted at about 214,000 for next year. Again, based off of utilization. um our portion of that total would be just shy of 60,000. So $59,87 uh related to the safe schools levy for Southwest Metro 288. Just a quick comment just to differentiate this uh calling the re reunification work that's been going on. Are those separate and distinct? We when it comes to the reunification efforts, we partner with Southwest Metro. Uh remember they came to us some time ago and they were starting the plan and we just said, "Why don't you use our plan?" working under that umbrella, >> but it's a different >> it's a different this is this is we've approved these in the past and this is consistent with as you describe how Southwest works for them and and certainly this uh safety school. I just want to make that point that this is independent from the education partnership. >> Yep. as a as a school district and and joy we also receive um safe schools revenue and we we use uh coincidentally the safe schools revenue that we received for a school resource officer that's obviously an important part of that process. What we're asking the board to take action on tonight is the safe school portion specifically related to >> so obviously they're related but they're they're separate separate and I just want to make that clarification. >> Good question. With that, I'll make a motion to approve. >> A motion by Roie and a second by Peterson. Any further discussion? >> See none. This is a resolution. Amber, can you please do the role? >> Sit. >> Yes. >> Valdez, >> yes. >> Peterson, >> yes. >> Smith, >> yes. >> Albert, >> yes. >> Johnson, >> yes. >> Roi, >> yes. >> Resolution passes. Has one more item for us. The consideration 8.7 a consideration to approve the fiscal year 26 budget. >> Yes, thank you. And and specifically thanks to Amber for following along >> all the different attachments and and everything else. So u on your screen you will see the 202526 adopted budget presentation. Uh I will refer to this as probably 2526 adopted budget maybe fiscal 26. um toggle back and forth between those two. Uh but if I do that, know that I'm referring to the same year and that is next year. So the year started July 1st, so coming up next week. Um going to page two that's on your screen. Uh our budget process and timeline leading up to this point. We started this uh way back in in uh early January internally having these discussions, but from a forward- facing standpoint, the finance and facilities committee reviewed and discussed the 2526 fiscal 26 budget uh at both meetings in April, both on April 14th and April 28th. Uh the school board then had a chance to review and discuss the 2526 budget. uh on May 18th, that's when we really did a deep dive on not only the general fund, but our other funds as well on May 18th. Uh and there you see this the state statute that requires school districts to approve a budget prior to the start of the year on July 1st, which is why we're bringing this for approval uh on tonight on June 23rd. Um after this the budget is approved, it will be available. the budget in total will be available on the school district website. Um and then rather than go through the 40 some pages um that we reviewed on May 18th, I've just included select summary pages in this presentation. Uh but I did put at your place uh the completed budget in total. Um if you would like to read through that as well. So starting first with the letter of introduction, just a couple pilots not to read the complete letter of introduction but our finance team really does value the collaboration with the school board uh the school board finance and facilities committee um Dr. Redmond and also our community. As I mentioned previously, a budget is nothing more than developing some annual budget assumptions and that's what you have here on the letter of introduction. So, uh, on the bullet points down below, the major budget assumptions for next year's budget include an operating levy authority of $1,371.84 per pupil, which includes a 2.34% inflationary factor. And there you can see the cap there as well. Obviously, we're well below the state approved cap for fiscal 26. The state aid per pupil formula amount increased of 2.74%. Uh the formula allows for next year at $7,281 per pupil. And you'll see later on in the presentation what that actually means in terms of revenue related to that inflationary factor um when added to the the enrollment projection for next year. And then speaking of enrollment projection the third bullet point we have budget enrollment projection of 7,457 students which is a decrease of 82 students or about 1% from this year's projections. Um so as we've discussed in at length uh we're in a a period of natural decline in student enrollment um primarily driven by declining birth rates in Scott County which is obviously Chucky School District. Going now to really the meat and potatoes of this document our statement of operating and nonoperating funds. Starting at the top the way that this reads is by funds. You can see our general fund, food service fund, our community service fund, our debt service fund, our internal service fund, which is our self-funded funded health and dental, and then our trust fund, which is our op standing for other postemployment benefits, and our scholarship account. And you can see our projected fund balance as of July 1st of 2025 for each of those funds. And I should mention that that is the fund balance in total, right? So obviously the $31.9 million fund balance projected for the general fund includes not only our unassigned fund balance but of all of our categorical fund balances as well. And then you can see our projected revenue and expenditures and then our fund balance projection for June 30 of 2026. And so in total for next year we are projecting revenue of 167.3 million and expenditures of 174 million. Down below uh we can unpack the different components of fund balance. Starting first with the general fund unassigned fund balance which as we know is the overall measure of financial health in the general fund. The good news on this front is we are projected to remain at 10%. So next year as of June 30, 2026, we expect to be at 13.183 million, which is good for for 10% of our general fund expenditures. The non-spendable spendable category is just an accounting function to account for things like inventory and prepaid uh expenditures. I keep that amount the same because we just don't know what amounts will fall in each of those inventory or prepaid buckets at the end of the year. Uh you can see our account for long-term facilities maintenance is is projected to remain flat for next year. And then go to operating capital. So you see that we have expected deficit spending for operating capital of about 1.86 million. As we've talked about, we have a a curriculum adoption plan under our learning, teaching, and equity department. And that's a plan spend down related to those curriculum needs in fiscal 26. Our capital projects technology levy is expected to be balanced for next year which brings me to our restricted other and our assigned for district programming. So as you can see in order to remain at 10% for next year uh we are projecting a spend down a significant spend down and both our restricted and assigned categories. Um, as we've talked about, as we talked about in May and previously at our finance and facilities committee, that is a one-time opportunity um that we have in order to do that. We've we've talked in terms of utilizing that assign for district programming for a rainy day fund, for lack of a better term, and we are recommending to do that for next year. Now, the good news is that helps us remain at 10%. However, obviously that is a a one-time opportunity. we won't have a chance to do that in the next year being fiscal 27. Um going to the next page then and looking at the next two slides are enrollment. So obviously projecting enrollment is an integral part of of developing a budget process. Approximately 75% of our general fund revenue is from the state. A majority of this funding is based on student counts. So an understanding population trends is critical to overall budget plans. And you can see that dating back to fiscal year 2020, so during COVID times, our total ADM, which is student count, was 8,189 students. And then for next year, our budget, as I mentioned, is 7,457 students. Um, so a pretty significant decrease in enrollment over the last six years dating back to fiscal 2020. And as Dr. Edmond has mentioned in previous financial presentations and we've talked about at length, that's one of the main contributing factors is our decline in student enrollment that contributed to our structural imbalance along with the inflation that we talked about before. So then looking at projected enrollment, um we've developed the following enrollment assumptions for next year. And I'll just review those. Those are letters A through E. Our kindergarten projection of 424 students, which is an increase of four students from this year. Kindergarten through grade 8 growth projection based off of enrollment trend data. Uh we're including an increase of 68 students from grade 8 to grade nine primarily driven by um our non-public primarily stack students that enroll at the high school postsecary enrollment option PSL estimate of about 60 students based off of history again and then early childhood and tuition estimates based off of a fiveyear history and so you can see that our period of natural decline in student enrollment is forecast to continue um at least until fiscal year 2028 and most likely beyond that time period as well. Going now to slide seven um and just looking at at two pie charts showing revenue and expenditures for all funds. And this really underscores what a big piece of the pie the general fund is. As you can see on the on the revenue side, general fund revenue accounts for just over 75% of our total revenue for all funds. And then on the expenditure side, general fund expenditures account for 76% of all funds as well. The last two slides, I'd like to just talk through some of our general funds. So again looking at specifically the general fund uh and looking at our assumptions. So first on the revenue assumptions you can see at the top our general fund revenue is projected to decrease by about 728,000 or a negative.5% from this year. So anytime you're looking at general fund revenue which again is 75% of our total and the projection for year-over-year is actually a decrease in revenue. Um that is that is a challenge from a budget standpoint for sure. Uh from a state aid standpoint, our overall state aid is projected to increase by about 360,000 for next year, 4.4% from the 24.5 year. Our property tax revenue which again is based largely on on student enrollment is projected to decrease by about 457,000 or 1.7% from this year. The decrease is distributed to declining pupil unit student estimates as I mentioned and then our federal revenue was projected to decrease by about 209,000 or 9% from this year's levels. have a decrease in federal and distributed to budgeting for special education aid which is fairly conservative from a preliminary standpoint as well as the expiration of one-time pandemic related funds in the amount of 130,000. And then lastly at the bottom it was requested last year that I put together a revenue per student projection. And so you can see that this year based off of our enrollment projection of 7,539 and our general fund revenue amount of 126.2 million, the revenue per student that we would project this year would be 16,752 per student. And then looking at next year's projection, >> did I say million? >> Yes, you did. >> That'sful. Y be that would be great. >> Um 16 16,000. Thank you. Uh next year uh 7,457 students and you can see the general fund revenue projection. So the uh overall increase is about $87 per student from this year to next year. General fund. Going now to slide nine, general fund expenditure assumptions. You can see the general fund expenditures are projected to increase by about 5.26 million, which is 3.9% from this year. So although that 5.2 million figure is a large number, uh it's our our general fund expenditures are only projected to increase by about 3.9 or slightly less than 4%. Um, obviously salary, wages, and employee benefits is the largest chunk of the pie in the general fund. And the budget for salary, wages, and employee benefits for next year is projected to be 102.3 million. And that includes salaries, wages, and benefits for all of our groups. Uh, increase overall of about 4.2% from fiscal 25. The budget for salary, wages, and employee benefits represent 77% of the total general fund budget. And you can see the status of employee contracts for next year. Um the three contracts that expire as of the end of this year are the chak education association, the sea, the principles, and the unaffiliated directors. That's why I have negotiations upcoming or in some cases started for each of those contracts. So with all of that um I would go to slide 10 which is the summary of acknowledgements. Um the budget publication that you see requires many hours of preparation, review and deliberation by the board. Uh our school board finance and facilities committee who had a chance to review this document uh ahead of the meeting tonight. Building and district administration and my finance department team. Um thank you to my team both in finance and payroll for uh their many hours of working on this and also the other stakeholders on our leadership team for their time and attention in looking at this budget document. Um overall the grand total budget revenues in or total all funds are 167326,700 and the grand total budget expenditures are 174,16,825. As I and as I reflect on on this budget, um I think I'd like to say that although it may not be the numbers that we all prefer, um in terms of the revenue and expenditure total, uh it I feel like the numbers on this document are numbers that can be relied upon for financial decisions and recommendations moving forward. With that, I'd be happy to take any questions if you have. I have a couple of questions, Bill. Um, hypothetical. If the federal government decides they're going to slash education budgets and funding to our schools and the state has a special session and they reduce education funding even further uh to schools for the next benium. Um, are we do you think would be allowed to go back and adjust our budgets accordingly or would we have to wait until January when we have to submit our revised budget to the state? I mean, how would we handle that sort of situation? I mean, we're we're approving a budget just like the legislature approved the budget. If the feds change, they're going to go back into a special session and adjust their budgets. >> How does that how do we handle that as a school? Yeah, I I think you know thinking about it specifically from the federal level. So we're talking about title one, two, three, federal special ed, things of that nature, I think the recommendation that I would that I would have would be to approve the budget based on what we know to be true, which is this, right? >> And then there's nothing that says um that a board could not revise a budget ahead of the January timeline that we usually have done that. Um if if the feds made a change in August or September, October, um the board could react to that and and do a a revised budget earlier. You can do a revised budget in October. Uh there's also nothing that says you couldn't do you have to you can only do just one revised budget, >> right? So you can do a revised budget in October and then do another one in May. There are school districts that that will do a final revised budget in late May. Just trying to get those variances down as much as possible related to the audit. Uh historically, we haven't done that, but there's nothing that says you got to just you can only do one by two. So, I don't know if that directly answers your question, but that's what >> I mean, it's kind of unprecedented, right? I've never seen that happen before where we had changes at the federal level that triple down with the state and then therefore the budgets get adjusted. Maybe it's happened in the past, but I was just curious on that point. And then the other item that I had [Music] the day on Monday. Um, >> one thing I was going to say on page 11 in the quote that you gave us, I think it would be important moving forward on the general education formula allowance chart to make a notation about that 2.7% if that was the start of the inflation index and that that really wasn't while it was an increase on the general formula, it was not specific like years past. So, And what I mean by that is that 2.7% was not supposed to be a replacement to the normal 2% allowance that you see in many previous years before that. >> Sure. >> I just think that would be an important item to note for future boards moving forward that may not have that history um to understand if somebody says typically we got 2.7. Well, really should have had 4.7 if you follow historical trends, but we only had 2.7, but that this is really the first year that we got that inflation index. So, I think that's >> that makes sense. I'll make that. Thank you. And then one thing that Bill and I exchanged messages about today was in regards to that 2.7% um that that is just on the general education uh formula that is not across all categories. So, I think that's also an important item for everybody to know is that that doesn't hit community ed that doesn't hit food service. All of the special categorical funding that does not tie to the general formula allowance um would not get that 2.74%. >> What's your distinction between this 2.7 and the other we have 11 years of business increases. So the other% >> so this 2.7% is actually what they gave us for inflation on the formula. We've not had that in years past. This is the very first year. >> That's not inflation. That was just what they allowed. >> So when that bill was passed a couple years ago, the intent was to give the inflation index on top of what they normally would give like the 2%. But that didn't happen. And that's what we school districts feared what would happen. And so it kind of was a replacement this time around and probably will be into the future has to change in order for that to fix. So while it looks like it's an increase, >> but it it if we want to have that inflation index, we probably would have too. >> So it it did save us, but the intent was not for it to be a replacement. It was supposed to be in addition to an increase on the inflation is supposed to be just that to help school districts close that gap on that chart that you see in a lot of our presentations on the financial position of how the formula increases and the amount of inflation just continues to run. So this was supposed to this 2.74 was 2.7 was supposed to close the gap but then they didn't give us the 2% on top of the 2.7 and so the gap continues. I'm generally an optimist too, Christie, by looking at 2.7 being the second highest in 11 years in the states allowed. I just notic, you know, optimistic that we're going to get or >> I don't think so. But I'm just saying that was the intent when that bill was passed. >> It was not a one or the other. It was in addition to to help close the gap. Further discussion I just have a comment on you know the general fun expenditure going up 2.9%. It's not bad. It's a it's a it's probably what most businesses would probably budget. I know that when I go through I do three or 4% on everything. It's it's the it's the revenue decreasing by 727,000. That's why we have such a massive $6 million gap. If it's just less students, which is reality. Um but you know, less students, you still have supplies, you still have the purchases, you still have 1,200 employees, you still have teachers. just one of those things that um it's unfortunate because I I quickly the amount of students that have uh we decreased where that page was it was 745 from it's in there somewhere but it's been 745 students since 2020 and that's just that's a hard number to make up because if you look at revenue per student at 16 um that's 745 and 16,000. I'm not going to do that math in my head, but >> yeah, I knew it was somewhere around 11. So, yeah, that's uh significant and that is reality, but it's just one of those things that anybody points out like our expenditures aren't going up 15% a year. It's just the the students and obviously if we had more students we'd have we'd have a greater expenditure more teachers but it's unfortunate. I do have one other question. >> Sure. >> On on the presentation we had when when when Bennett was here in the world, it had the uh LPFM balance like 14 and on here it was like it's 3.5. Is there two different funding mechanisms in that 35? >> No, it's timing. And I'm glad you brought it. It's timing related to summer projects where Ben had that in his and I don't have that. it's timing related to this summer's type projects. Um, and I I wish the Ben was because he had I asked Ben that very question. Um, so obviously the fiscal year July or June. So whether you have projects in June or July can drastically depend on what your fund balance is. And so that's what the difference is related to that time. >> Yeah. just earlier 35. >> I guess I have one more com, you know, to this topic that we're speaking on right now for next year's. It's clear that to the credit of everybody in this room that the financial health of the schools is is really pretty good right now going into next year, but it's a lot of that change has to happen. And so that we're It's nice that we have the ability to do what we're doing here to borrow or to run at a deficit and keep our our product intact, but I think it's clear to all of us that something's got to change. Like next year sitting here at this time, we will not have that ability to do that. So to me, the red flags up like something's got to change for sure and we all know what the options and tools are. I think that the fact that you guys have built this key that we can use, for lack of better terms, trying to always lower it down to my level here, you know, but um it's great honestly for our kids and for for our community, but entertain motion. I will make a motion to approve the 2526 adopted budget. >> Second motion by Aldrich and a second by Roie. Further discussion seeing none. All those in favor? I opposed. Motion carries real quick. >> I sit down. >> Please sit down. Um, I just I just want to thank Bill for for the years of service. I know we still have him for a couple of months, but since this is the last budget that he has to put forward, I just wanted to publicly acknowledge uh everything that you've done with the district or since 2019 >> at the end of 2019 when you came on board. And just, you know, you we've worked together really well for the last almost six years. And uh it's sad to see you go, but I'm glad for your future that you found a great landing spot and just just wanted to say thank you for everything that you done. >> Thanks. Appreciate that. And just say it sounds awkwardly. >> I'll echo the same thing. kind of started at the same time it feels like and knowing where we were as a district and your expertise and your your thoughts and creativity around getting us back to financial stability has been significant and a lot of that is just because of you and your knowledge and your abilities and you will be greatly missed in this district. Whoever replaces we'll have big shoes to build because we've done tremendous work here and I know our community feels the same way with the state of our district right now. So, thank you. >> Yeah, thank you for saying that. I one thing I I absolutely love about working in CH is the fact that that we talked about this at my board, our administration, they don't treat finance as a problem that pops up every few years and then you deal with it and then you just go away, right? It is an ongoing topic that we discuss and that makes me feel valued in my role. Um, and I can audit it. If if I was going to stay in the public education, I would be right here. This is where I want to be. I wouldn't go anywhere else. I would want to work with Dr. Redmond, the leadership team, this board. Um, this is very much feels like home, you know, with with the community here. So, thank those comments very very much appreciated. >> We'll have more opportunities. >> I'm not yet. >> We've got two more months. >> Thank you. >> Okay. Thank you. [Music] Our next item is another action item item 8.8 approval of the EPO agreement and Jim will present. Thank you chair Smith members of the board and this is the reapproval of the agreement. If you remember, two weeks ago, I brought it to you and mentioned that our attorneys were still ironing out final details, but given the time of year, the need for us to start moving forward with getting prayer information so our students can be enrolled through the fall, we needed something approved. Um, there were two clarifications in the contract of those. Um, both which I would say we believe to be true heading into the first contract. Um, the first one was just about what we are paying Prairie for the services, meaning we are paying them for the credits that these attempts. Um, and then also just a clarification of in the in the unfortunate case of student discipline that we would own the student if the student for any reason to ask the deal. Again, both of those were things that that we believe to be true prior to asking for the initial approval of the contract wanted to bring it back to you in the name of transparency. Questions? And this is a one year >> one year one year contract. And this um our attorneys are now completely done with it. And so this will be the last time you will see it until um sometime you know next late spring at which point we hope that this will become a longterm. >> As year by year maybe if it works out well five year agreement. >> Yes that is that is the stated goal. We've had that conversation with Eden Prairie and attorneys felt it was best for us to have a one-year period just and again there will be ongoing meetings between myself and the assistant superintendent about how this is working for just on that do you have metrics in mind in terms of measuring what that success is similar to how student achievement most things that would be measured otherwise I think we'll obviously be looking at those things. I think the reality is we know that we have a certain number of students looking for this type of programming and it benefits us to have a formal provider as opposed to the current process which is counselors scrambling and trying to figure out who will best meet student needs that we believe that EPO will meet the needs best of all of our students and again as we've stated provide them the opportunity to graduate with a shot diploma which isn't always the case sometimes students end up getting diplomas from other school districts but they would rather rem Motion to approve the contract as second motion by Peterson, a second by Aldridge. Any further discussion? Seeing none, all those in favor? Opposed? Motion carries. Thank you. Next on our agenda is an information item, item 9.1, district financial outlook. >> And Dr. You want to switch your room. >> That was pretty smooth. >> District financial update for this evening. And uh it's going to look pretty familiar. um slides I think it was slides 3 to 26 last time were from the presentation the special school board meeting on June 4th we've added a slide so it's slides 3 to 27 are representing that June 4th special school board meeting the additional slide is a video of the meeting and I don't want to play it but I might be okay yeah which is which is early and I can go back these if there's questions but you've seen this presentation multiple times >> the slide with the graph of the inflationary gap because M as you were asking about that 2.7% and that's where Christie was making note if the funding formula would have included an inflationary component that gap would exist And what I'm going to do is try to summarize where I think we were on at our last board meeting on June 9th. Um, as the school board was was continuing to process things, looking at possible decisions. This slide is colorcoded on purpose to kind of lay out um you know possible schoolboard decisions or I think where we're you know on on track to to move. Uh the light blue shading on the top there would be for the 26 27th school year we're projecting a 7 to9 million deficit. In light blue it says 3 million expenditure reductions. the bulleted points. Those are, you know, typically driven by declining enrollment uh and staffing adjustments, transportation adjustments. And again, we're not talking about changing walking distances. And then trying to also match our our expenditures to state provided revenues. Some of those have changed, some changed again this most recent legislative session. And we have some areas in terms of the support we're providing um that you know should should also decrease some due to the enrollment decreases of uh the past few years. And then in yellow highlighted uh we'll see this on a couple slides, but uh 5 million in new revenue could be generated if the school board were to approve a ballot measure measure for November 4th, 2025 in the form of an operating levy, which need to be voted on by the community. Uh this this levy would be tax new tax neutral levy that would shift from current bond payments to new payments for operations. Uh in terms of what's being paid by Indian taxpayers and the other way of looking at that revenue would be $620 per pupil. And then there's a uh the the kind of a bold ore in the middle of that, you know, where we see the orange highlighted and that is where 5 million in budget cuts across the board. Uh that would be on top of the budget cuts that are highlighted in blue, the 3 million. And it the part in orange reads the additional five million in budget cuts uh are needed if the schoolboard elects not to run an operating levy on November 4th, 2025 or if that operating levy is run but is not approved by the voters. And then as you go down to the next section there highlighted in yellow, 2.3 million in new revenue uh would be a possibility if the uh school board were to approve a second question for the operating levy. There would be contingent on the first question. The second question uh would bring the district to the cap or the maximum allowed by the state of Minnesota for school district operating levies of this type. Uh this would new taxes to support $288 per pupil and additional revenue. Um, and the revenue would be used to make sure the budget is balanced from 2627. Uh, and then if there was, you know, additional funding there, additional revenues would be used to tackle part of the one to $4 million deficit projected for the 2728 school year. We got the small other with a question mark in the bottom left of that page. And then going into the 2728 school year, um you know, that 1 to4 million deficit projected in 2728, uh the 2.3 million in new revenue kind of continued. Uh if the school board, you know, placed on the ballot and if voters approved a second question, you know, that would that would tackle part of that 1 to4 million deficit projected in 2728. in the no matter what category in light blue. Uh typically we would make you know about a half million dollars in expenditure reductions if our projected decreases in enrollment for the 2728 school year uh exists then. Um and then again some of those declining enrollment uh transportation adjustments. Again not talking about changing walking distances but we have fewer kids going to school. We have fewer kids being transported in total by buses. Therefore, we need, you know, slightly fewer routes to do that year over year with declining enrollment. Uh, and then again, you know, Matt, making sure that district programming support is matching those decreases in revenue caused by decreases in enrollment. Uh, and then additional across the board budget cuts is needed to balance the budget. And currently the outlook for state funding on that for the 2829 bianium is concerning. Not focusing on the 2829 school year directly this evening but looking out uh that that future certainly has challenges it would appear. And then in in that burnt orange color additional budget cuts are needed at the second question on the operating levy is not approved by the voters on November 4th. And then you get into the years beyond 2728 school year. Um kind of repeat some of that in terms of you know the the possible options on on the table. If we to move this forward and and get into the discussion or a proposed action item tried to summarize um the light blue on the previous slide. Yeah. The expectation is for the 26 27 school year we'll make 3 million in permanent expenditure reductions. That takes care of 3 million of a projected 7 to9 million deficit. From my you know seat at our last meeting we kind of left off with a discussion of a possible action item and putting this out. This could obviously become a motion of its own. might become change and become some other kind of a motion but to give this group a a starting point from where to discuss. Uh most of the discussion at our June 9th meeting was kind of pointing towards the possibility of a two question operating levy with uh question one being the tax neutral part of that. The uh the 5 million or 5,52 uh in new annual operating revenue. uh that would be generated by a $620 per pupil uh amount for that operating levy. This would be tax neutral in in the sense it would be a shift from current bond payments uh that end after you know at the end of the 2025 calendar year to be replaced by new operating levy payments starting calendar year 26. Uh this levy question be linked to inflation. Final ballot language, knowing that we were going to have more discussions this evening, uh would be, you know, the board approves that this uh this this evening, we would then have the final ballot language and all the other parts of that election uh that are required by state law at our, you know, the formalities, if you will, that our July 28th uh upcoming board meeting. And then question two, uh, if a second question were asked, it would be contingent on approval of question one, meaning question one is not approved by the voters, it doesn't matter. The vote totals on question two, question two cannot pass. If the voters do not approve question one, uh, that would be approximately $288 per pupil in new revenue. That would is estimated to to provide approximately two 2,322,65 new annual operating revenue. This is because the Department of Education has not finalized exactly where the cap is for next school year. They'll be doing that in the next couple of weeks. Uh but that is the estimate given to us by our financial experts that work with PMA. Um this levy would also the levy amount would also be linked to inflation and again the final ballot language you know all those formalities for the election the exact dollar amounts would then be uh shared at the July 28th board being brought to the board for approval. So questions on anything or anything else in the information clarification I'm glad Bill's still here. Um, in in the budget you have the levy cap at $2,261.31. Is that the actual number or is that an approximation? >> That's the actual number for um for for taxes payable 2025. And so that's the number that will be out. >> So we don't know. All right. Correct. >> Yeah. >> That'll go up by the rate of inflation. But that is not the same calculation actually. for pupil a slightly different. It's kind of calculated in a similar way but slightly different >> because that difference was $8947 which would the the question too then that was part of it would be 27447 but inflation to 288. Yeah, it's a problem. But a great point. That's why instead of using 274, which would have held it flat, PMA trying to estimate what they think MDU will do gave us 288, which we think is probably a few dollars in either direction from accurate. >> And Dr. Edmond, just to clarify when we get into discussion, even though we're talking about this question one being tax neutral, uh can you confirm that the language on the ballot will still make it a tax increase because from a legally otherwise for state statute you can't use a this case the operating levy rolling off of the building off the bond offsetting the expense of the operating levy for general fund and that's just a point of clarification to the eyes of the indiv individual who's going to vote on question one or question whatever decisions we make tonight. The language on the ballot will say it's a tax increase. So we just have to be really clear in that messaging when we get to that point >> and the the answer to that is yes that language must be on the ballot by state law and it in essence what is happening is in 2025 we're paying off debt that tax ends officially at you know December 31 of 2025 the amount of that in terms of what taxpayer the total amount taxpayers are paying if they were to approve operating question Our total taxes would be the same in calendar year 2026 as they were in 2025. But one form of taxes is going, you know, decreasing by 5 million and it is a new operating levy that is added, you know, that a little bit over 5 million. And that is because it is a new operating levy, a new form of tax that's being added. That is why that ballot language would be, you know, that property tax increase language would be on the ballot for question one as it would be for question two. >> Mike, I have a question on the information you have on the screen of possible action item. Um, while this is specific to the ballot measure, um, I don't see anything about an action item to also include budget cuts of 3 million. That is still part of if if the board did approve the question two valid questions tonight, >> we would also be making $3 million of budget cuts no matter what. >> Yes. And whe Yeah. >> I just wanted to clarify that because right this looks like we wouldn't be doing that but no crystal clear that left on the previous page but highlighted in light blue saying that's no matter what. I think sometimes people get, oh, if we pass this, then we're not making the three million in budget cuts. Um, but but exactly, we are making 3 million in budget cuts no matter what. The question is whether we're making another 5 million to bring it to a total of 8 million and thought rather leaving this part where we would need to be an action item for the board at this time. If you wanted to make one that uh you know we're expecting to make three million in permanent budget cuts to that's fine. I just you know that's our plan to balance the budget. So you you will also approve it when we you know we bring forth that budget. Um and if it's not in there I would suggest not approving that budget. It'll be in there. >> Well I mean I just you know we've seen this information multiple times now in a lot of different ways. I just don't see a way around this. And I I guess I'll make a motion to approve what's on the screen to approve a ballot measure for a question one and with the information presented as well as a question two with the addition of $3 million in permanent budget cuts regardless of the success of the ballot questions. >> I will second. Um so we have have a motion in a second u as presented. So we do need to have the extra language of the 3 million budget cuts beyond what is on the screen here. um discussion >> Tim uh and I know there's been some conversation like would it's it's a almost a no-brainer. No one appreciates a tax increase. I get that to sustain the financial health of the district. We need to pursue maxing to the you know the total amount. Um we kind of talked about do it as a, you know, a question one, question two, or just one question on the ballot for all of it. I like this approach because you don't want to sacrifice the opportunity to get at least the 5 million. That feels like an easy conversation to have. So don't don't put 5 million at risk just to get the extra 2.3. So I'm I'm in favor of that for that reason, knowing full well that I'm going to Let's let's try to pass both. And I like how you bring in two with that additional. So the 3 million is is cut regardless. The question is do you have to cut another right? Do you the five plus the two right or do you cut an additional 2.3 because that that becomes 5.3 right? 5.3 in a hurry. And what does that mean for call up the 26 or the 2728 school year? I just wanted to call that out because I had spoken previously about we just need all of it. We need to go to the cap. Uh but I like this approach because it at least affords the you know the taxpayers and those in the district to um see the transparency. Um, and I'll make one more uh comment. When we start talking about we did some of those like what's the net tax impact per average median price and those things uh and Dr. can confirm this but I just want to call it out. You have to look at it in current state that it's the net tax capacity and all the homes and all the things you have to show the numbers as it is today. We're talking about really call it years two and three from now assuming there's no grow of the district, right? So the tax burden, the tax impact would get spread over a larger tax base. Um so that's another way to look at it like yes, it's still a tax increase but by year two by year three at 20 28 conceptually voters approving question would they would see less of that by that time frame. That's exactly how we framed it several years ago where Yeah. It's $7.3 million, but it's $7.3 million on all the all all property in in the district. >> We're building houses, we're building hotels, >> industrial, it's all it's all it's all combined. So, >> are >> Oh, you know, and I had not even uh I had not even considered that, right? There was a there were a lot of tips particularly in the industrial space um fundamental math but the denominator keeps getting bigger and the amount that we can le is just based on student population. So in a sense the numerator states we use the word fixed we know that that's not the case but um the amount of money that's going from a revenue perspective based on levy is relatively unchanged but the denominator as the district grows, as the community grows, but you can't use that in part of your messaging. >> You have to leave the denominator >> at a point in time and I don't know if that's as of November when Secretary the official language is, but Dr. Rman, if you want to offer some context there as well. >> That's all called out. We'll have all that July 28th, but there are specific dates when you've got to have the ballot language in. There's specific ways it has to be written. And we look at, you know, to your point, it's not a choice. It's the expectation state laws. We present everything as though it's static moving forward, which typically becomes a, you know, in a growing community in terms of a growing total tax base tends to become a conservative projection. But we're not we're not allowed nor would I think it'd be prudent to uh you have individual districts try to make their own estimates of what the future is going to happen in a local economy. So it makes sense but you know some folks who have a deeper understanding of economics get that yeah the total pies getting bigger their own individual share get smaller they're making assumption that there will be no >> correct >> and be happy because there might not be any >> over the last two years >> what did we just vote on earlier having to do >> in the last two years my school says on my house which is valued at $400,000. So that's the average. My school taxes have dropped $1602. If both question one and two pass, my taxes go up $93 or 97. >> So >> I'm still under I'm still paying less and that is again considering or making an assumption there's no growth. And I anecdotally, that's why I was asking how the state demographer comes up with population increase because we just saw an extra thousand people show up uh and what would be considered shock problem. And so if that's any indication, I just like to understand as a timeline, you know, again, it'd be it's not for us to determine what that looks like, but I think it's reasonable to expect the district's going to continue to grow at a healthy >> and since 2020, it's dropped $231. And that's the levy that passed in the increase in 2022. That's that's really good context, too. >> Well, one of the thoughts I had on this is the challenge and the great points have been brought up about what we can actually put on the ballot and what the community is going to know, right? So, we're going to have to make decisions in here based even if approving this. I myself as a voter five years ago, not recall if I voted yes or no. running around with my chicken with my head cut out, paying attention to what I wanted to pay attention to, just looking at myself as an average voter or whatever. So, I mean, without a conscious effort of a lot of communication going out about all the things we're talking about, the tax base, the the the bond falling off, you know, it being a neutral thing. when you when people walk into the polls and they read that one question how that will go after having done this now a few times in our community concerns me. So I think that you know there's going to take a concerted effort to to to get that done. I mean you guys would know better. What are we the are we the largest employer in Scott County or track be something that we're >> third largest. Okay. St. Fair enough. But we drive our income off of really taxes. We can't just shut down a department or whatever when the numbers don't add up. So without diminishing our product, I keep saying that our service right is our staff and we proven 80% of our budget goes to that. I'm all for this. I sure hope that it actually the community realizes that it is needed. It's not >> I don't think you don't make a commission, do you? I haven't been a part of >> me. >> Yeah. No, >> I don't think there's any other reason. >> I just do a lot of extra work presenting and sharing information that isn't always pleasant for people to hear. So my brain just >> that was a joke. >> I can say that just some feedback over the weekend that I got in in my neighborhood about talking about this decision that we were having to make tonight. Um the board has school district has a whole lot more credibility today than we had with the last levy because of the performance of our being good steward of the taxpayer dollar and that almost came out verbatim. Um and that when I said you know if you did this this is about what the tax impact would be and they were like oh >> don't just say that because somebody but I'm just saying that was the feedback that I got everybody's going to feel >> the challenge is that like we have to now we have a PR campaign that we have to run to educate people on all of this because we're so limited and hamstrung by the required language. So now um priorities are do we have enough energized people that we can rely on to help with that effort because that's just a must because you know because when we say it that way if you talk to like most reasonable people oh yeah that's that's totally worth it but but now we have to we're in charge of in 2020 when we went for the first one and it failed at 5743 584 something like that I was not surprised that was three years after >> it was during co during the presidential campaign >> but it was also I don't think after what happened in 2017 28 you know during the during that debacle for lack of a better term that that shot to the district more money to as I heard people say how are you going to misspend this money what we did I think in 2020 it's like okay this hasn't passed this is this is the cut and then we did that in 21 both uh the two questions passed I believe 67% 63 to 67 the the tech levy last year passed at about the same level I I think and I I said this earlier today, you know, you you build up trust and you build up trust and you can lose that very quickly. like way it takes 10 years to build up the trust you lose it on that and I think if we just keep doing what we've said what we're going to do that the community should be able to put their trust in us and the district for doing the the right thing and by putting this out there on the ballot as I said at a different meeting we're allowing shock to determine what kind of school district that they want. And just to add on to that, I mean spot on because the district has done so well to manage the resources that we like pandemic resources and uh development designs and train developing our talent within putting us in a position where we don't have to make significant cuts this year next year. Right? So you look at the health of the district. I think the other um I don't want to call it an advantage. It's unfortunate case in funding in Minnesota public education. But you look at our 11 neighboring districts that are cutting have significant budget cuts on their horizon. We're not alone. Uh we've also because we didn't max the capital. That's it's a tool on the tool. But again, no one wants to vote for a tax increase, but given the good stewardship, given the savings in terms of refunding bonds and giving taxpayers dollars back, you know, the evidence that yeah, your your home value might have appreciated, but the net tax that you're paying over that time frame has actually been reduced by some of this. So, I'm hoping that messaging is clear. This is an investment. and this is there's a return on investment. Anecdotally, why is Shock be growing if it's growing? Where do people want to go? They want to close the parks, recreation, and what's the other thing? Oh, a healthy school district, right? I'm hoping that that's part of this messaging. But it isn't just Shock needs more money. All of the schools need more revenue. and we're just in a place where what we're asking for isn't suiting for the moon. It seems reasonable and I'm hoping we've built that trust with the community that says you can you can invest and and feel confident it's a wise investment. We'll use those dollars. Well, >> I think we do a really great job at educating. So, we really proud of our school district for being transparent, educating um the public of what we need, but what if I have a question. What if question two does not have I like how we're made more cuts. >> That's that was brings up a good point like adding the 3 million into this none of that's going to be determined prior to the potential November 4th election, right? We're not should be voting on any of those particular cuts between now and then >> possibly >> outside of the attrition. You said there's 600,000 built in that you would do anytime that you're declining, right? >> Yeah, I think it's a commitment to doing that. I think Caroline to answer your question, we still have we would have again we've got a 7 to9 million gap three million in permanent budget cuts plus 5 million in new operating levy in question one gets us right in the middle of that seven to n. Now we might have another billion to cut for the 20 the 26 27 school year and then 2728 we do have 1 to 4 million projected. So we'll know better, you know, the further we get out, you know, enrollment, you know, the data, you know that. But yeah, if question if question one passes and question two doesn't, you know, we have to figure out how we're going to attack that 2728, but we have 34 days before we have to next year's adopted budget. >> I think one point of clarification on the screen, the make 3 million and reductions, I think that should be permanent. expenditure that it's not something that we back. >> I've been using that word. Well, we'll see how I can type, but I've struggled so far. >> I'm in agreement with that, but are we pigeonholding ourselves? I mean, this this is what we're telling our the public, right? Essentially, it's not going to be on the ballot. So, decisions we'd have to make any year >> potentially 3 million in permanent reduction, >> right? >> Knowing we have no additional revenue. So, being 4.2, it might be 2.8, I don't know. You know, whatever it ends up being, not knowing what our revenue is based on this, not knowing our enrollment, not so many other variables. I think if we're all under the understanding that these are the potential things that we're going to have to do, what does this change anything if we vote for this now? Is this make it to where we have to have exactly a minimum of maybe you do want to put in? I know that we already have a motion in a second with the term 3 million in there. >> I mean the details the details are obviously to be determined. I mean if we feel that strongly about it we could do an amendment to change that. >> If you feel that there's 3 million that is relatively easy to cut at this moment >> then then you can do that. >> Yeah. I don't think any anything easy to cut. I think it's that is a if we look at what we know, you know, for the 26 27 school year, that's 7 to 9 million um budget shortfall range appears to be a very good estimate. You know, that could change. Uh I think, you know, I think it's a very reasonable expectation that we'll need to make at least three million in budget cuts. I think if something dramatically changes uh in a positive factor, you know, enrollment instead of decreasing by whatever ends up being 100 students higher than projected, you know, we don't see that coming. We don't know that if that I think there's always that ability. Uh I think this we're you know we're making a commitment that we recognize that there should be some expenditure reductions in the mix that we can do that. Will that impact our level of services? Yes. But that is not going to have anywhere near the impact if we end up making a total of 8 million in permanent budget cuts in in 26 27. Some of these are things where the the state has targeted funding that has changed or shifted or not. You know, it's been at zero. Um, and some of them are areas where as we continue to dig in. We do make some of our adjustments in our budget are kind of automatic for decreasing enrollment. These are others where you're going to take it a step further. Um and when you factor in then that 27 28-year projection and some of the outyear projections watched our legislature their big discussion in education funding was how long were they trying to balance the budget for the governor and the senate wanted to you know they wanted deeper they wanted less spending in the ne next two years so that they felt they had a better chance of balancing the two out years fiscal 28 and 29. So I think with that as a backdrop, I think the three million is, you know, setting that as an expectation. Um I'm more concerned that we might have to end up going higher than that, especially as we go into 2728. >> All this is just for the 26 27 school year. So it's a one time, >> right? >> So we could say for the if it comes to that, we could at the year from now say for the 27 28 We need to make another basis and action. [Music] >> Yeah. And I'm okay. I mean, the original was put up here didn't have the expenditure reductions. I think it's really important for the board to acknowledge that district leadership that, you know, we believe we're going to make three million in expenditure reductions for the 26 27 school year. And that's part of why I left that off because you start getting into the specifics of something that's a year from now. Um, you know, >> but I do think the community needs to know that if we're going to make permanent budget cuts, they need to know that and they need to know what that dollar amount is. And I do still believe that they need to have some sort of framework as to what is part of that 3 million. I mean, you have to know approximately what the 3 million in budget cuts would be, unless you just pull the number out of the sky. There has to be some sort of plan behind that number of how we would get there. >> Well, I think some of it was truly off of you could have a tax neutral question. One would raise 5 million to get the middle of 7 to n 3 million. I think we know there are some places we have not done that deep analysis. But I do believe in looking at our budget and knowing how we work through different areas that when you look at right sizing based on student enrollment there there are some places to to make those type of permanent reductions but that is that's kind of that's our next phase if you talk about our finance department um digging in going through and even taking in I mean you know you're well aware because I think you sent me the data Christie part of balancing the budget for the next bianium at the state legislature. There were some targeted funding cuts and you know student support services and I think media related services and we've still got to go through uh both Jim and I spent some time online with AMSD and Breite Works today where they're going through the legislative thing. I know Bill Manazi was where you've got to go all right they literally just after we staff cut our funding for some of those positions. we're locked in on that staffing for the next school year. So, I think it's with that sort of a mindset that we know those things exist. Um, you know, but we've got to go through and do the math and be able to call that out and have a rationale and total that up and heading to to Mike's point. I mean, this whole thing is such an unprecedented target cited potential federal, you know, federal funding cuts. You know, it could impact state. you talk about targeted cuts, you know, we're still unpacking. Now we get the the compensatory revenue patch. I mean, there's there's never been a time where there's been more moving parts and less predictability. And I think that the thing about this is we are trying to address the out years. And I think that that's, you know, it's easy to look at one year or two years. I think it's looking at those out years and trying to get yourself back to a place where there is more balance. I think that that's what this proposal gives us the opportunity to do. >> And I think you've got the four bullet points under the three million expenditure reductions of what you looking at and that's and you know declining enrollment staffing adjustments, transportation adjustments, not the walking distances but other areas reductions in specific areas to match expenditures to state provided revenues which you just talked about with the support services and and there's others over the last two weeks. >> So, I mean, they're all kind of listed there. So, to me, they gave me the impression that by doing all four of those that would total approximately. >> Yeah, I think we have a decent level of confidence that it will. We just have not gone and done the deep work that's needed to do that. >> To be honest, some of those are driven by too. So, >> and and it also Sorry. calls out the difference of, you know, that we think are adjustments that we absolutely should be making in terms of right sizing, in terms of ongoing revenue, having a structure, working to do the best we can to have a structurally balanced budget where when we call out, and it's not on here, but we call out on the previous screens where you know the pieces in orange, well, those are those are across the board. Those are that is a different nature of budget cuts. You know, should question one not be voted on or not be approved by the voters? If you're making 5 million in budget cuts after those other three million which are kind of targeted towards, you know, state funding shifts and declining enrollment kind of adjustments. There's no way to cut that five million and not do that as across the board budget cuts which then impact things like class sizes and our number of teachers. It impacts probably walking distances. It impacts programs that we offer where you're not you're not able to offer as many programs or you know you have to do those how we provide services is impacted I would say differently and on a more profound level if that makes sense. Sorry I didn't mean to touch and I was just going to flip the script. Let's assume no no no new revenue starting the 26 27 school year adding it up to correct my math but wouldn't that be 10.3 million right 5 plus 2.3 is 7.3 plus 3 million would we have to cut 10.3 >> well part of question two's going into 27 28 Right. So that that's mitigating some of that. But let's assume no new revenue in 20 the 26 27th story >> in the 2-year bianium. >> Yeah. >> They're it's been approved >> 3%. >> Okay. >> So >> So so it's not as maybe not as but we're talking you're going to cut 3 million regardless. And then this additional that's the 7 to9 million >> three is included in this is >> okay >> so the subderee this is just as a citizen when the last the cuts you guys had to make most around this board were felt I mean like literally everyone knew specifically we're going to lose this we're going to lose that and then happened and then whoa, what do we do? And you know, we've gotten better results on the lease since then. I think us as a as a board and as school district have to be heard and figuring out what we're going to do prior to this election as far as if this doesn't pass and have some idea of where these cuts are going to have to go. I don't expect that now or even by the end of the summer. I don't know how long that takes, but we got to figure out a realistic solution and plan for the worst. as we talking about finance meetings and things like that. Like >> that goes back kind of what Chad said earlier and Caroline too about educating educating the public on the consequences one way or another. >> I think I think I understand what you mean back about the three millions. It's not easy to cut, but there are ways to do it without dimmission permanent programs and things of that nature. Is that is that kind of what you mean by that? and doing the best you can to do that and doing it where >> you've got declining enrollment state funding >> doesn't compensate for that >> you can't just roll you can't roll expenditures forward year over year in that reality I said some of that automatically adjusts and certainly we we can begin to you know we can begin that work that takes time and effort thought to do that you know over the really probably into August and September and again first analysis is kind of finance team let's go through and sort out even what what is actually to in there because we got a 2.7% per pupil funding increase we also saw a reduction in special ed transportation revenue we saw some other places where you know So that that's some of the stuff that we got to sort out and then even look at what what's kind of the just ended that was similar to that. But then absolutely you know the board's direction leadership is in agreement with that we can begin to give a better sense of when we use paper like the across the board budget cuts what does that look like and some of that will look a lot like in the uh that anchor spreadsheet when we talk about where we make our expenditures now some stuff you know operating capital for curriculum That's we can't take and spend that on salaries and benefits. But the other things, you know, those cost areas that are salaries and benefits and have some flexibility within them. You basically take that total 5 million and you go what percentages of that and you look at that by the first lenses across the board knowing that some categories are difficult to reduce. Special education due to maintenance of effort laws and other things. You can't just unilaterally go, hey, we're going to offer 10% or 5% less in special ed services because that's against the law. You'd have to have a maintenance of effort. And so you're kind of taking that's a pretty big chunk of the budget that not you're not taking completely off the table, but you're making at most some smaller marginal reductions. And then everything else you're kind of doing, all right, we've got to cut x% of that, knowing full well that the bulk of that is what we pay people. salaries and benefits and I think there's you know we got to try to find that right balance we don't want to cause undo alarm but we also want to yeah this is a very real thing we talk about across the you know across the entire budget what does that look like we'll certainly do that work apologize for asking this question this setting but if this if the community doesn't get this message and this doesn't We don't have this additional revenue between December. I'm just kind of looking for between December of this year till this time next year. Do we as a school board vote on what cuts need to be made or do you present them specifically or do you just say we're going to cut million in a certain >> I shared um and I can I can reset that in a in a wrap. I think about a month ago. We shared those previous ones. we went to that specificity of what was going to be cut and we'll certainly be able to call that out and we will do that. Uh and then yes the board does part of the budget the board approves the budget cuts which we budget >> but those cuts will have to be made before next year at this time. >> Yes. We do our staffing >> has to be part of our staffing in the spring and I think that >> and that's kind of why I'm advocating for the two question approach is it feels like you can at least get support for question one you have almost another vote out for the following year the bance one question that fails you're a year away from having another opportunity for it. >> Is there a third question you can ask? It's in your nature. you put the tip button out there. >> So that's my exactly my concern is if you frame it as question one, question two, a lot of people are going to see as yes on two as the moderate approach and that's the middle of the road sensible Minnesota. >> I think we have Yeah, sorry. just just that but I just I mean it just I go around and around with it because on one hand uh it's very risky to go to just one question and if we lose that's a huge risk on the other hand I'm skeptical of both we we have a very similar discussion in 2021 okay because there are two questions on the ballot in 2021 and um and and and both and both passed but but obviously the two had a lower success rate than one did not worry too much credit >> well I hear what you're saying like do you want at all three question any interest at all no partially funed Or do you want to go all in? >> Well, especially that both questions have to say by voting. Yes, you are tax increase. But that that that language has to be stuck to those questions. Even in 2020 when it didn't pass and it was it was replacing basically a bond and it was tax neutral. It still had to say this is a tax increase because it is because at the end of 26 25 what year is this? 25. Um let's all run together. It is that that money on the bond gone on the 2026 taxes. So this is a tax increase. >> Well, >> but they don't know that the taxes are coming down. >> There's no law that requires that. >> But that's that's just >> that's just the way it is. >> All right. So any further discussion for the group here? We're starting to splinter off. You have little Further discussion toward the vote or we >> can I just ask a word amendment or not? I was going to say I think we either need to acknowledge that we I tried to clean the language up based on what you said and is this an accurate representation of the intended motion or do we need >> I would accept >> I'm not Robert's rules of >> I think that because I made the motion I can accept the additional word that was added in it without having to the motion that was originally made. >> I'm fine with that. Yeah, I mean if if you think that reflects the motion you made and I second it as well. So we have the question before us that it's been uh uh motioned by uh Peterson seconded by Smith uh as stated on the screen which you can all read. So I'm not going to read the whole thing. uh question one and question two and the and the uh the bullet to recognize $3 million in permanent expenditure reductions for 2627. Uh any further discussion? Seeing none, all those in favor? >> I opposed. Motion carries unanimously. >> Thank youmber >> disembark. That didn't have to be >> if if uh wasn't dealt >> what's the word >> division we had division. Uh, next on our agenda is item 11, uh, committee reports and other information. Let's start with Tim. Uh, no committee reports. I will say I'm looking forward to season number five, coaching with Dr. I think and I gave just weeks away. Here we go. What could possibly go? Looking forward to watching you this year. >> Thank you, Chad. Um, I also do not have any committee reports. Quiet on that point. I'm excited for activities. >> What kind of activities? >> We just had Andy Brown. >> Well, I was I was going to brag. My son was uh filling on the fishing team for a couple weekends and a couple weeks ago he filled in not part of the team but went fishing with his buddy. They came in six out of 40. They came in first. >> I love it. >> I didn't know that your son had filled in. I saw the fishing team financing facilities earlier. We went over and the budget and that's it. Uh same plans and facilities and uh Chrissy. >> Um couple things in negotiations last week, our kickoff meeting. Um so that is underway. Um at Southwest Metro board meeting last Tuesday night where we approved our budget. Um and that budget, just so everybody knows, is 42,668,789 for next school year. that does assume a 3% increase in inflation costs as well as a 3% increase in fee structure um for services. One of the things that we did note that we lost because of the changes in legislation, we lost $195,000 grant for mental health for students. Um so that hurts the budget a little bit. um had a scale meeting, executive committee meeting on last Friday. We've already started the process for the legislative platform for 2026 for all county government entities. And the last thing I have on my list is when they safety conference in St. Louis. reports facilities as well. I don't think partially this morning. >> Yeah, you know, June is a strangely busy time. Um we actually had the first bit of our leadership retreat last week where we had our entire cabinet principles, assistant principles, deans um did some really good work around collective advocacy and getting folks to have a higher level of understanding of what that is and how to lead with it. And I know we'll have some people come to the board and talk a little bit about what we've done at our leadership retreat. Tomorrow's actually day three. There'll be an elementary section and a secondary section. Elementary will be very focused on wait time um and literacy adoption. Secondary will be very focused on assessment for learning and some of those components. So um our our leaders are extremely busy up until the Fourth of July break and we hope they get away a little bit of July with their vacation time because we will be having our August 4th back to to school meeting with our leaders before we before we know it. And frankly we're already working on it too. Nothing for me today. >> I've spoken. >> All right. Thank you. Uh, next up is upcoming meetings and important dates. I just want to note that our next school board meeting, either committees or business meeting is not till July 28th. So everybody gets to enjoy some time between any other uh needs or important dates anyone wants to bring attention to want to discuss the training in August that we talked about a few months ago um phase three and phase four training I got some information from Katie today on that and she does have placeholders on her calendar for phase three for us if you to proceed with that. Um, and that would be >> your 9th and 16th and 16th 23rd report as well. So those were kind of the weekends that we have discussed >> and one of those right actually the 23rd also >> the 16th right? >> So 16th and 23rd year so nine. >> So I guess we have a little time. when do we need to confirm by >> um she has it on her calendar so >> so yeah I mean I'm not going to put everybody on the spot this minute but we can follow up with with everybody and see if the nine works because that would be great to have all seven of us uh if we can't all be present the value is greatly diminished so um so again don't need an answer right this second but We'll follow up with you soon. Thank you. Anything else? I would entertain a motion to move. Motion by Aldrich and a second by Peterson. Any discussion? See none. All those in favor? Opposed? [Music]