001in order. Um, let's do a roll call. Wonder here. Vanic here. Stephus Gardin here. Campbell here. Dhan here. Hibboard here. All right. Please note, as a courtesy of members of the audience and the board of education, please silence your cell phones. Public will only be able to speak during public comment if signed up. Do we have anything for the budget? All right, great. Normally, we do do the pledge of allegiance, but uh we'll save that for our normal standard meeting. Skip that for these folks. Um first item is the approval of the agenda. Can I get a motion? So move support. All those in favor? Yes. Opposed? Motion passes. Uh item number two, future action item. The 2025 2026 proposed budgets for the general fund, food service fund, student activity fund, capital projects fund, syncing
002fund, the bond fund, and the debt fund. Okay. And we'll turn things over to Heather and she will uh review this for you. Not sure what it's doing. [Music] Any idea there, Justin? Why it's not a little bit rough on you? Yeah, it's it's on this screen but not on mine and then I turn it the other way. Okay, kind of good. Just getting started. So that's what mine should look like. There should be normal [Music] mark here. Okay. So, the purpose of this hearing is to um conform with the unified budget process um that we run through every year. Um, as part of that, the most important um thing that we'll go over is is the levies of the three um major funds um and the recommendations for those to be um uh passed
003in the next um in the next meeting at following this. Um and so we'll go over each fund and this is the most important slide of um the presentation. So, we are looking to levy 18 mills on non-h homestead properties for the general fund. Um 5.05 mills on all properties for debt service and 1.3502 mills on all properties for the syncing fund. And you'll note those levy expirations of December of 2026. And in the the previous meeting, we discussed um bringing a resolution to you soon um to put those back on the ballot in November for renewal. So um we've talked a lot about headley rollbacks and the good news is is this year in the uh general fund and the syncing fund we did not experience a Headley roll back. So um so that
004is good news and then um again we'll bring a resolution to you regarding uh syncing fund and operating at the next next meeting. Um just to give you a little history um it's it's been one of two numbers for pretty much my entire time here. So um which goes back to 2010. Um so 3.2 2 mills. Um, and then in uh, you know, November of 19, the community approved an increase to 5.05 mills, and that is where we will still reside for the 2526 school year. This is just a snapshot of where we fall within Kent County rankings when it comes to debt. So, we are the fourth lowest in the county. And then when you look at Ottawa County, we're the third lowest. Um I do want to highlight Grand Haven a little bit
005because um you know that's hard when that falls off. Um that will be tough to get back. Um so just kind of understanding that the importance of that and um I know I think they are um going back for something soon but um but that is and then obviously the opposite way we don't want to be above the seven because then you're you're in the borrowing potentially for um school bond loan fund and that type of stuff. So, um, Granville has not, to my knowledge, been in the school bond loan fund. Um, I know they haven't since probably Tim Rymer, like even before Tim Rymer, I don't think they. So, so what were the assumptions for the debt service fund? So, we're looking at um an increase of 6.5% in property tax values with revenues
006um of 12.8 million and expenditures of 12.6 6 million for a surplus of 204,000 giving us an ending fund balance of a million49. We did have the restructure of um the 2015 bonds. Um and so you'll see in your packets um when you get to that last part of the presentation, you can see how those debt payments are um allocated to principal and interest for the coming year. uh syncing fund. Same thing. The levy remains at the 1.3502. Again, 6.5% increase in taxable value and renewed through 12 of 26. Syncing fund provides about $62 per pupil. Um and used for projects around the district, primarily facility upgrades. And so far, um, projects that you've approved for the next school year include, uh, Centry Park boilers, a high school gym floor resurface, and then we will
007be looking to bring you a high school and admin elevators, um, in the coming months. Um, and then we always keep a little portion of set aside for emergency. And, um, and then so we we might be bringing you some paving as well. um revenues looking at 3.3 million with expenditures of 1.85. And know that looks light, but that has to do with project bond projects finishing up um and then planning for the ne the summer of 26 um and what we'll be bringing you then. So with so an ending fund balance of 1.8 8 million capital projects um funds we uh issued in 2024 the third and final series of that fund. The um projects left we are wrapping up transportation and maintenance um that is projected to open um in October of this
008year with the um Weller Bay opening uh for second semester. So, in January of of 26 and then we have a schedule for technology replacement and some other things and we I know we've brought you some of that already, but they'll there'll be more in the coming years. So, um the revenues really just are um based on interest earnings and the expenditures. um one of that 3 million 1.5 is um dedicated to tech and the other 1.5 to the finishing that transportation building. So the purpose of this fund you're always going to see typically a deficit unless you're issuing a series in a year but so 2.925 deficit with an ending fund balance of just under 2.35 million. Uh, food service is a self-supporting self-supporting program. Um, and we do have excess fund balance requirements
009that we need to hit. So, one of the projects that we'll be bringing you um is some remodeling to our high school cafeteria that will become that will come from the food service fund. So, a lot of the the freezer space, some of the HVAC um units, unit vents, and then um a little uh redesign of the serving line area as well. Um revenues consist of continuation of the free meal program. Um that has been in uh both budgets so far that have been released. Um revenues are will be around 4.5 million with expenditures of 4.8 um deficit of 219,000 and looking at an ending fund balance of just under a million dollars. So in the food service fund we do have um specific requirements on what can be charged there or not. So it
010does have to be all food service related. For instance, even if we were to buy new cafeteria tables, we can only charge a portion of that to the food service fund because those tables may be used for different events um not during the school day. So, there's formulas and stuff in place for that. Um and then we are looking at an indirect transfer from the food service fund to the general fund again of somewhere around $200,000. Uh student activity fund. This um fund is basically fundraising activities for various groups within the district. So it's really an in andout. It does tend to carry a balance. It just depend is dependent on the time of year of when those expenditures come. Usually in the spring that um that balance is higher because we've collected for prom
011and all those things and then those bills come due a little bit later. So um uh not a whole lot that changes in this fund. Usually you see a surplus, a small surplus and then um carries an ending fund balance of $767,000. Um a lot of those like are like specific to what has been fundraised. So um and then the general fund which is what we'll spend the majority of our time on um the state aid budget in Lancing. They're still working on a budget um to come to agreement. The assumptions in this uh presentation and what's in your packet are all based on the executive budget proposal um estimated a $392 increase to the foundation allowance. So that would be up from 9608 in the current school year to 10,000. We are estimating um
012flat enrollment. So looking at probably down about 34 students and still utilizing that 9010 blend at the state level for so fall count being the heaviest and most important in terms of count data. Um taxable value increase same 6.5%. There was no Headley override. And just as a reminder, the um tax taxes that we um claim for the general fund amount to $3,268 per pupil approximately. And that is how we maximize getting making sure we're getting that full 10,000 in state aid because there is if your taxable value increases your discretionary payment and your state aid your prop a payment goes down and it works vice versa. So, when there are like large um tax uh tribunals in Granville, think very large properties that maybe are looking to get a tax break. If that happens,
013the impact on the general fund is usually offset by the state. Now, timing wise, it doesn't line up always, but um but that is how that formula works. So, this budget also includes continuation of the mental health and uh security funding and a 4% increase at to at risk CTE um and um uh early lit um categorical funding. Um it does eliminate some one-time revenues approximately 2.1 million. um and the portion of that 2.1 million is actually offset on the expenditure side in 2526 with a lower retirement rate. So you'll remember the whole 3% issue and that the um the healthc care side of the pension fund was fully funded and what were they how were they going to give that money back to districts, right? So they gave us a categorical this year as
014revenue. Next year what they're doing is they're actually lowering the retirement rate. So the revenue goes away but the district will pay less on the retirement side of things. So there's that there from an offset perspective. Um so um assumptions on the expenditure side, salaries and benefits. We are currently negotiating with all groups. Um we do have a a TA with one and I think we're close with another group. Um but we have um been pretty purposeful in what we have made from an assumption standpoint for those wage scales and making sure that we're including step increases. Um our staffing levels have been address adjusted through attrition. We have um approximately 15.8 8ft FTE to date and that's mostly on the um uh teaching and admin side of things. Um where that though we've been
015able to gain some savings from that. Um the Meipers rate again I talk a little bit about it going down and usually when you look at the 2.991 that was the when the two funds were just Mip and basic and now there's a lot of different categories for people to fall into and MYIP and basic are closed. Nobody can enter those areas. So when you look at it on an individual employee basis, Granville's average on the retirement side is 27.95% and that's what was used in this um uh proposed budget as well. And then employer insurance cap that's increasing 2.9% um over the current year. Um other items that we um eliminated, we eliminated the bus purchase that you approved in November. Um and we there were other expenditures aligned with some grant funds that
016are no longer available. So overall you can see from 2425 to 2526 the reduction in the revenues and a lot of that is um the u changes in those state aid funding piece. So um 82.5 million uh in revenues and and on the expenditure side and that in expenditure side remember that does include the items that we're um talking about at the negotiation table is 83.3 million for a deficit of 810,180. Um the final for 2425 I'm projecting a $918,000 deficit. That did increase from the final amendment because there were two grants if you remember that. Um uh we were able to only claim so much before they were eliminated. So um so we're looking at for uh year end 2526 6 just under 6.3 million and that is based on expenditures of 7.55%. Um
017and I did do the adjusted fund balance for you again because like when we negotiate and stuff we don't we don't include any of that UAL or the federal dollars because it's all budget neutral, right? It's all money in money out. Um, so when you pull that out and you look at strictly is stuff that is not budget neutral, you're looking at 8.34% fund balance. And then this is just a historical um I know back in gosh I think it was like around the 2012 2013 school year um and it's no longer on here because it's falling off but um we were just below 5%. Um and that does present challenges. Um but even during that time we didn't have to um b or borrow from the state to make payroll. We did make some
018pretty strategic changes at that point where we went from 26 pays we went to 24 with payments being on the 8th and the 23rd unless that it fell on the Friday before that or a holiday. Um, and that helped make sure that we had at that time enough money that we had our state aid payment to be able to make that second payroll payment. Um, so I think, you know, I know that Roger was here for that and we so I I I feel like yes, maybe we're going into a little bit of a tougher time, but um I think we're doing a lot of hard work to um keep us where we're at and being able to support students and um programming And that is all I have. So I open it up to
019questions. If I can do a comment first. Uh I mean first of all I just want to say Heather and Caleb have done an amazing job with the budget and our team has done an amazing job getting us to this point. Uh she mentioned attrition for people who wouldn't understand what we're talking about with that. um you know, we have somebody retire, instead of replacing that person, that position, we get creative in who can either pick that up or can we shift people around and eliminate some things to make it happen. And we were able to do that um amazingly to do it without any huge impact. You know, our people from the outside looking in really won't be able to see much difference. um of what what we have which uh again I think
020is amazing when we consider where we were at before we went into this. But fortunately with people retiring we were able to do a lot of that to take care of this challenge that we had uh major challenge going you know in January February as we were looking at this. So uh I applaud our team for that. Um I applaud our principles. at Plutter staff for a great, you know, they had some great ideas, too. Hey, instead of doing this, what if we did this? And and that's what you need is a group of people working together to make something like that happen. So, uh feel very good if you would have told me in January, we'd be where we're at right now without significant uh cuts, I would have said I, you know, I
021would have I would have done a cartwheel then if I would have known we were end up where we're at. So, we've ended up pretty well. Negotiations, as as Heather had mentioned, while we can't go into details, we feel really good. We don't know where we're going to land, but we're in the ballpark of where we're going to land. So, we're pretty confident in in uh the numbers that Heather is presenting that we're going to land somewhere in that area. So, yeah, Roger, I remember um there was concerns expressed by staff members regarding class size numbers in particular for um our kindergartens and stuff. Have some of those concerns been assuaged by reports or that have been issued to the staff regarding how this is so I think a couple things with that. You know,
022uh, kindergarten, I've been at this for 36 years, is always a wild card because you can be think your class sizes are great a week before school and you'll have 10 kids enroll like that and then you're going, "Oh my gosh, now what are we going to do?" So, uh, we feel good about, you know, we're we're trying to stay within our contractual numbers, stay below those contractual numbers. Um, we're also being creative with our schools of choice kids where, you know, we have so many students um, allotted for our schools of choice. We're we're not telling people which school they have if they're a schools of choice kid. Right now, we're waiting till later in the summer so that we can see where we have some areas where we can fill gaps versus saying,
023"Okay, you're going to because it's close by. You're going to Central." then find out all of a sudden Central has 29 kindergarteners which you're going to do something with. Right. So, uh we're being very strategic in that. Uh just making sure we're able to fill where we have uh space and not overload a spot where we end up in a I mean looking in the crystal ball would do you foresee our fund balance going down again next year or is this is the lowest that you would see it going? Wow. I find that uh I don't know what's going to happen, you know, uh at a federal level that will also impact the state level. Um so that combo um uh so I'm not sure I you know I we know that 7% is where
024we have policy on that that we won't go below that. So, if that's the case where we were going to go below that seven, we would have to look at everything we're doing and and uh and we do that early on. I mean, December, J, early January, we're looking at that. And so, we would have a pretty good uh you know, handle on that component of it, but there's so many unknowns. The budgets are unknown uh both at the state and the federal level. So, those are hard. So, I I couldn't give you a, you know, if I were a betting guy, I would say we're going to have to do probably something similar next year as far as um looking at our attrition numbers and maybe being creative with with some things. I think
025we're in that that time. Uh, you know, you go through cycles. I think we're in a cycle where every year we're going to have to look at everything we're doing, evaluate everything we're doing, try to get creative with some things, and maybe use some opportunities to to maybe not fill some things such as we did with Anna's job. So, I I think those types of things we'll have to continue to look at. And because we know that um you know I I think we're we're already in that mindset with everything. I mean everything from copies to you know do you really need to copy Google Docs? Um things like that. As a matter of fact, you'll hear me pretty soon talking about maybe we can go away from this for you guys if possible. So
026there there are some things I mean we're looking at a lot of those things and I think we'll probably get some savings earlier in the year that'll obviously help us going into next year. And part of that planning, just in terms of our negotiations, we're we're working through trying to be like a a two-year agreement with a W3 opener for year two so that we can get a better sense of here's where we feel comfortable in the moment when we get to next year now that we know more about what our revenue is and what our expenditures are. Is there a different way that we need to from a wage standpoint look at that for the following year? So to your point, we're trying to create some of those proactive ways to to protect us
027going forward in terms of how much we we think we can spend next year because we're not sure what the budget is going to look like next year. So just so you know that we come back with at least the one TA um we have a wage reopener in that language to to help us. What's the headcount change? We talked about wages and we're, you know, absorbing some of the people that are retiring. What's our overall headcount now versus what it's going to be in terms of staffing? Yeah. So, and which in which group is taking the biggest hit? The teachers have taken the biggest hit. We reduced 15.8 FTE out of our teachers. Uh we reduced two full FTE out of our administrative group. We're about 11 FTE. It's hard to identify that as
028a a single person for our pair of professionals because as we're moving our way through we're looking at different roles and things like that but we've reduced that by 11 FTE and tried to hit the positions that also carry the insurance side of it that we had kind of added into in those moments. So, we've we've hit each thus far, we've hit each of those areas um to try to find ways to get to a place we're going into a ne a negoti negotiation year that we can negotiate in good faith with our folks, try to give them some form of meaningful wage increase as we work our way through it, but also like Roger said, not have the service that we're providing to our to our community, to our kids be dramatically impacted or
029potentially vis from the outside. So one of the questions and full disclosure I just I asked Roger before the meeting but I want to hear your response too is one of the biggest line items I saw in the general fund change was the capital outlay. Right? We've been spending anywhere from $850 to a million to a year and all of a sudden now we're saying we're going to go to 160, right? So a $650,000 difference in capital investment substantial. What um any anything that's causing that or Yeah. 450,000 of that is buses. We've also eliminated um and van. So, we also have line items for vans and maintenance vehicles. Those have been eliminated as well. I mean, that's not something and and then Ryan's here to talk later about um one of the proposals in
030the next meeting. But that's not something that is sustainable either. We understand that and we don't want to get into there. there's a replacement cycle in place for a reason, right? Um but you know, we've worked um and the mechanics are awesome. Um and we'll continue to work through that. But um yeah, that that's the big chunk of it. There's probably some um tech in there as well, but the other piece of it is like this year um you know, we opened Oakstown. We have a steam class there. we had to outfit that with some technology that would be in the cap out line item. So that was, you know, when I look at like their that's another piece, right? The onetime costs to open that is probably around $200,000 that came from the general
031fund on just materials and curriculum type stuff. Yeah. Okay. And you can see with uh the sinking fund, you know, if we pass that syncing fund, now buses are so that's going to offset some of that fun piece. You said there were two grants that had to once we got a little bit out of it and then they were cancelled. What were those two grants for? So the the one it was um part of a ESSER grant and it was for high school credit recovery. Okay. um for a summer program. We actually were paid for that in 2324 school year, but that came through and I don't know yet if the feds have taken that back from the state and if the state is going to in turn take that back. I think in the
032um the Senate's proposal that came out, they had a line item in there to help offset that. For us, it was like $26,000, but there were other districts that were doing construction projects that were already approved um for larger amounts. So, I I put that in there because I want to be conservative because if they take it back, I need to account for it. Um the other one was a health resource advocate grant. Um and that one was covering oh gosh, like 85% of one of our nurses. Um, and that around spring break is when the final draw on that was able to be had. So, or or reimbursed. So, that one's done. And then there's another one. It's called the Hill Grant, which helps um mentors young principles and um that one has also
033been eliminated at the federal level. I'm going to save my questions for the regular meeting. Okay. 31. So we can end on time. Okay. 317 31A grants. Have those been tapped into? I'm assuming. Yeah. Yep. So in the current school year and then rolling forward in the next school year, too. Yep. Just real quick, I guess. Um is there any line item on there that that you feel has the opportunity to flex the most that we should be concerned about and maybe attached to that? Um what's the one that you're most worried about when you look at this budget? What's keeping you up at night? Um, I don't know. It's just one line one line. And if it's not, that's all right. But it, you know, I think I I mean, am would I like
034to not be in this position? Yeah. But at the same time, like I like we've we've done a lot of we've done a lot of the work, so I'm pretty confident in in that piece. I guess the one line item would be the state revenue side of things and then potentially whatever happens at the federal level with Medicaid that those would be and those aren't like right those we can't make more widgets in our company right um so it's the revenue side that is is what makes me nervous thank you thanks all right any other questions thanks Heather there. Welcome. Thank you very much. Appreciate it. All right. Since no public comment, the next workshop meeting will occur after the budget hearing adjourns on June 2nd, 2025. And we'll soon or we'll start no sooner
035than 7 p.m. We are adjourned for the budget meeting.