001I will call the regular board meeting school district December 8th to order. Um all is present besides Aaron Kudson and our admin is here. Let's rise for the pledge. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. All right, moving on to public comment. Anyone from the public like to come up and speak on an agenda item, please come so now. All right, no takers. Moving on to the consent agenda. Is there anything in the consent agenda you would like to be pulled out? Hearing none. Is there a motion approved? So moved. >> Second. Motion by Mossman, second by Mstead. Any discussion? All in favor say I. I. >> Sent agenda passed.
002Programs. Miss Nor. >> All righty. Good evening everyone. We have a few updates from the high school tonight. So the first one is about our CNA program. Actually, our first trimester students are taking their knowledge and skills test this week. So they spent a lot of time preparing for that and have worked incredibly hard. So we're really excited for them. And then right before Thanksgiving, we had our Tiger Path Speed mentoring event. Um, it was organized by Mrs. Moore and it went very good. Uh, the students really appreciated having the chance to talk with the mentors who took the time to listen, share advice, and encouraged them. It's a it created a really positive energy in the building, and it was a successful one this year. Mhm. And then looking ahead, Elanor and I are
003going to start a new round of student surveys within the next month so we can get a better sense of how students are feeling and what they're planning for the future in specific. We're hoping to bring some meaningful insight onto what our seniors are thinking postgraduation and how juniors are preparing for what comes next. Thank you everyone. >> Thank you. >> Can I ask something? Since you're filling out this survey or having people fill out the survey, um would it be of interest uh maybe of the people of the board that you ask students what they'd like board members to know? >> Oh, yeah. I could definitely add that in. Mhm. Yeah. Is there anything else in specific that you guys want to see within the next few months? We're hoping to make this like
004a regular thing. >> Not at this time, but we'll think about it. >> Well, you weren't ready for that follow-up question. >> Fantastic. Thanks. >> Thank you. All right, tiger time, Miss Holtz. >> All right, good evening. Good evening. I'm excited to talk about the middle school and especially honing in on our music department. It's a big night for us. Um, as it is the choir concert tonight at the high school. Um, but if for those of you that don't know, back in 2023, the beginning of the 2324 school year, the state enacted music standards. So that was the year then that I started but my predecessor had already um hired a music teacher an explored music teacher and Mr. Coupen Miners to bring these standards alive to the middle school. So I'm going to
005give you a little rundown of what our teachers are doing and what students are learning in those classes. So this is Mrs. Mr. Coopen Myers. Um he teaches Explore Music and he teaches sixth, seventh, and eighth grade. Um, in Explorer Music 6, the focus is bluegrass, Mottown, and students are using to use ukuleles. >> In Explorer Music 7, the focus is jazz and just how to be um a responsible music consumer. Um, how we listen to music, how it's changed throughout the time, how we purchase music, streaming services, things like that. And then our seventh graders start then on guitars. And in explore music 8, they're learning all about Minnesota music and also getting um year two with guitars. So explore music classes are for our students sixth, seventh and eighth grade who do not
006take band, choir or band and choir. So this is how they are getting the standards in music. Um next we have Mrs. Leopold. She is our choir teacher also teaching sixth, seventh and eighth grade. And tonight is our winter concert over at the high school at 7 o'clock. Um this February 6th, 7th, and 8th or 6th, 7th, and 8th of February at 7 will be the min or the it's the middle school musical Willy Wonka. And then in spring, she puts on another concert in May. Um again, 7 o'clock at the high school. And then last to round it out is Mrs. Simondet. She's our band teacher and she is super busy. She also has a winter concert next week on Tuesday at 7:00 at the high school. Um other things that she has planned
007for students um in different grades. February 28th is the regional Minnesota Honor Band Festival. So selected students attend that and then that's um a parent sponsored activity. So parents will bring kids to that um band festival. And then in April on the 14th, that's sixth grade will be going to orchestra hall um to the young people's concert. Spring performance for Tiger and West Elementary at the uh at the middle school. The eighth grade band will do that. We did that last year. So um West and Tiger teachers and students came in and the students were treated to um just a whole host of like hearing different musical instruments, hearing from different kids, and then of course listening to music as well. May 1st is the honor band festival. Um that's in Edina and that is
008where she's going to be bringing our eighth grade band in May. And then spring concert is also in May on the 14th at 7:00 at the high school. And then lastly, she also in addition to sixth, seventh, and eighth grade band also has two jazz bands going this year. Um one for seventh and eighth grade. That's Monday after school. And then sixth grade practices every Tuesday from 7 to 7:30 in the morning and that's bringing the music at the middle school. Any questions? >> I do the uh eighth graders that are learning about Minnesota music. Are they learning about musicians like Prince and >> Yes. It's all Minnesota based musicians in multiple different genres. >> Okay. Thanks. All right. >> Thank you. Have fun tonight. >> All right. On the truth and taxation hearing, Miss
009Bowl. >> So, we actually need to wait till 6:00. So, we should go to subsequent items and then we'll loop back. >> Okay. >> It's a state law and we we never know how long all these other things are going to take to know where to put them in here. So, >> thank you, Tina, for writing that on my agenda. >> All right. Can we do the final adoption? >> No. >> Can I just skip all the way down to something else? >> You have to go to uh Yeah. >> Sure. See, just making sure, Dan. >> All right. We'll just do the approval for the 902 facilities use agreements. Uh these can be done together. So, this is for volleyball and high tides. Uh, does anyone want to make a motion? >> So moved.
010>> Second >> by Mossman, second by Mstead. Any discussion? >> Seeing none, all in favor say I. >> I. I. >> All right. Agreements passed. All right. Policy 304, 304 F, and 304 P. Um, is there a motion to approve the policies for their second and final rating? >> So moved. >> There's a motion by Miss Pullman. Is there a second? Second >> second by then and stopped working Diane. All right. Any discussion? All right. Hearing none. All in favor say I. >> I. >> Policies passed. >> Okay. Dan, I think we're going to jump to superintendent update. >> All right. Good evening. Uh strategic planning is going well. They've uh sent out we've met a lot of times. I know the board doesn't get involved until later again, but we've had several meetings. Um
011the the surveys have gone out to the staff. We've gotten those results back and those will be shared with about 65 uh staff members that are part of a bigger committee this Wednesday uh for three hours. We have a meeting. So looking forward to to seeing those results and kind of getting through them and and deciding where strengths and improvements can be made in the school district and we'll be doing that on Wednesday. And then uh later on the board will be wrapped back into some of that stuff once those things get done. Uh Diana and I attended the MEA conference uh November 16th to the 18th. It was in Brainer and uh it it was a very good conference. I ended up only being able to stay one night in one the ne that
012day and then I left all the things going on here but she stayed the second day. So uh but I attended many sessions that focused on leadership and helping connect with staff, students, parents and the community. Uh they dealt with how to act with integrity, humility, and vision. That was kind of the the theme of that that whole thing. Um, and then we also heard a legislative update from Sam Walsth, who is the MRA MEA lobbyist. Uh, he talked about what happened in the 2025 legislative session, and then previewed what might be coming in 2026, which is a lot of uncertainty. As you know, the numbers are really close between Republicans and Democrats, and so there's going to have to be a lot of collaboration, but there's no money. So, um, well, I guess if
013you think about it, there's a short-term amount of money, but if you go out to 202829, they're still looking at a 3 to3.5 billion problem. The good news is it was 6 billion. >> It's a little less now, but still a lot of money to be to not so they probably won't be able to spend a whole lot of money. Maybe a bonding bill, maybe. So, um, just kind of looking at that. We have a lot of outstanding things for schools. Like what I mean is like up in the air with our employment covering our summer unemployment and our compensatory money. There's still that sped special ed blue ribbon committee that's trying to cut $250 million or it's going to fall back on school districts. So there's a kind of a lot of things there
014that have to be looked at. And uh the unemployment is still good for next summer, but the compensatory um could hit us next year already if there's not a hold harmless again. So, uh kind of looked back at that and Sam's very good at uh doing what he does. So, we we like to listen to him and a lot of things he says happens to come true. Not always though cuz he he makes a lot of predictions and you just don't know with with politics, right? But um so that was great. And then um as I said last Friday they they did release another uh kind of short-term outlook and it did go down to like three to three half billion dollars. So um if if nothing else maybe that would allow them to hold
015harmless something again for schools because they would feel like they have a little less deficit than they had before. So that was MA and uh also the district is on track for implementation of the min uh Minnesota um uh the leave that's going to start on January 1st, 2026, the paid leave and uh this program will require some additional hours to be spent though making sure that we we have been uh putting additional hours into it. It will continue to make sure that we're implementing it correctly. Hopefully the state will be ready with all their forms and everything else that they have to be ready with. So that's that's been something that we've been working on. And then I was happy to attend the uh Christmas party for special education last Friday. Uh Diane was
016a big part of that getting that together. So thank thank you to her for all her work and everybody else that puts time into that. I think we're they're we're quickly outgrowing the VFW and I think they have other uh plans, right Diane? >> Yeah, this year we we had planned on 75 students and this year we got to 96. So when you got you've got 96 students and then you've got staff members and family members and just everybody that is needed to come in and help with a party, you're pretty close to getting to 200. and max capacity at the VFW is 200. So, we're probably going to have to move it to either the armory or someplace that's equally large like that. We don't want to we're definitely not planning on not doing
017a party. The other option is to break it into two chunks. I've heard that quite a bit. have the high school kids go first and then have the elementary kids go second because then the elementary kids can go home after the party because they do that a lot. Either way will work. Um but we'll have to get with uh the special the whole team because we want to make sure that we're addressing the needs of the kids. The fun part is actually shopping for the kids. And I thank the teachers and the staff members who help with that because 96 kids, I don't know what they want. I was thankful to get the Pokemon cards that the last kid wanted, but other than that, it's really hard to know what the kids want. And our
018parents and our teachers know what the kids want and the parents get to select, too. So, it really is helpful to have an idea as to what the kids want. Each kid got a gift at approximately 30 to $35 per kid. So that's quite an investment for the American Legion to fund and then the BFW does all the food. So yeah, it was a great party. Um I think the kids liked it. They they always seem to and they always get very excited and the staff I think enjoys it equally as much because they get to see all the kids having a great time. So it was good. >> Awesome. Well, it was a great day. It was fun. So, and then also uh that same day I attended the monthly meeting with Superior Transportation.
019Um Amy Rodilius also comes with she's our special education coordinator along with Michelle Mkins who's their manager and then Joe was there the owner. And topics that we talked about uh included special transportation, walk zones, training for bus riders, and communication between the bus garage and district administration. It's good to meet because we can always improve and do better. And just always the communication back and forth is good for the district and them so we're on the same page. And then I finished up u I know this was brought up here. I finished up the mentoring. The speed round is always fun to go and and be part of. And the next set for for mentoring is on December 19th. I'll be starting that on then. And then um also I want to wish everybody
020happy holidays. As far as a negotiation update for uh HESP and local 284 HESP, we've met around eight or nine times. Um language and financial proposals have been exchanged and counter proposals have been exchanged back and forth. There have been some tenative agreements on language items. Hess also filed for mediation and we are trying to get a date for that. We have not quite gotten one yet. We've both put in a day that works for the both sides. We're just waiting to hear back from the mediator as to whether that's actually going to work out or not. So, we'll wait to hear about that. And then our next meetings with HESP are December 15th, January 5th, and tenatively January 28th, depending on if we do mediation. Local 284, our custodians. Um, we've met six times.
021Same thing. Language and financial proposals have been exchanged. Counter proposals have been reviewed. There have been several tenative agreements with them and our next meeting um is coming on December 19th and we also have one scheduled for January 23rd. Any questions? Thanks. >> Thanks, Dan. All right, Dr. Scott. >> Okay, a couple highlights that came in and Dan had spoken to this one and Diane as well, but um wanted to say a big thank you to the community, staff, students for all their time and effort with for the Legion Christmas party. Um it was a great event. Um thanks to the Legion and the BFW for um supporting the location and helping uh put this all together. So it was on December 5th as was stated. So thanks everybody that um came together to put
022that on. Um, another special education um, highlight was a thank you to the special education early childhood team uh, for their outstanding efforts in ensuring uh, the documents that needed to be sent to MDE went smoothly and had their information uh, put together. Uh, they worked diligently throughout the year to complete the enter and exit reports for both parts C and B. uh which resulted in fewer students needing to be entered this cycle and them entering entering that quickly allowed to clean up all the data promptly. So thanks to that group that team um Tigerbots um had their tournament this past weekend and there's some number of highlights here. So there's three or four slides. So I had an outstanding um showing again. So the robot performance, the Tigerbots 2.0 know uh sixth graders had
023the highest scoring team in their division. Um note at the top there were 36 teams across three divisions. Then the Tiger Bots who are fourth and fifth graders had the highest scoring team in their division. Um so out of all the tournament participants across those divisions, Hutchinson's team had the top two scoring robots. Um and design award of the robot. Uh this is presented to the team who un understanding and application of sound mechanical principles produces the most solid predictable and dependable robot and the fourth and fifth grade team won uh the design award for their division. Um and then the champions award was presented to the team who embodies the uh Lego League values of community, positive role models, outreach and sportsmanship and an exceptional is exceptional in each category. So, our Tigerbots 2.0,
024the sixth grade team, earned the championship award for their division, and both of those teams get to advance to state um February 15th. So, sounds like they had a great um event, great showing, great teamwork, great coaching, great parents, great support, everything. So, everything's great and hopefully I can keep saying the same thing for the 15th. So, here are the team members listed up there on on the board. Um so, good luck to all of them. and Jason Durheim, the the head coach, as well as the I know Kyle Schrader and I think as a teacher at the high school that helps to volunteer and Emily Cedarstrom is an art teacher um at at Park and I think I've got everybody possibly on all that. So, good luck to the sixth grade team of Kaden
025Anderson, Maddox Smart Egg, Andrew um Shrader, and Elellanar Shrader. And then the fourth and fifth grade team of Ruth Camrath, Riley Mossman, Hildy Evenson, Emerson Olsen, Hope Dumer, Julia Shrader, Willie Colop, Michael Elton, Lydia Van Gorkham, and Willow Dino. So, good luck to everybody. Um, just a couple other just uh final updates just in the teaching and learning pieces other than the updates that we send to you monthly. um January 19th PD day schedules was sent out to all staff today to get them registered by next Friday before the break. Um so all staff um all of our certified staff that's a work day but all of our support staff also are um and every all the other staff that aren't scheduled to work that day can certainly attend and there's a number of um
026options for them for the morning from 7:30 to 11 uh as we've done in the past for a number of years and then the afternoon for teaching staff is um working in their buildings um in their PLC's um so uh looking forward to that day redact uh the phase two options are out and in review process I plan to want to get together here after the first of the year. I think I maybe said this January, February about uh what those options are for our secondary staff. I want to look at them a little more closely and get some feedback from them. Uh hear what other people might be doing in the region, but we're not going to start this till next next year. So, we got some time for that. Then we just have
027our curriculum review ongoing. um can hopefully go to the um former world's best or known as world's best workforce but the comprehensive achievement civic readiness team um here in the next month few months um by the spring anyway to be looking at what um renewals we might have for our curricular resources K12 for social studies and language arts. So I think that is it. Any questions? >> I just wanted to add one note about the Tigerbots um tournament. There were a total of 60 scored rounds and in those 60 scored rounds only seven teams scored 300 or higher and Hutchinson's students were five of those seven teams. So they they did really well. >> I'd like to see the robots if they could bring them in someday for one of the board meetings so they
028can show them off. That would be kind of cool. >> All right. Thanks. Thank you guys for the update. Okay, let's roll on to resolutions. Um, you got the list. There we go. We'll go through the list. And as usual, thank you to the community and everyone that has donated to the schools. And we do appreciate the support you guys give the students for this. All right. Is there a motion to accept the resolutions as presented or donations? Excuse me. >> So moved. >> Second. >> All right. Motion by Pullman, second by Mstead. >> Um any discussion? All right. Hearing none. We'll do a roll call vote. Mstead >> I. >> Luans. I. Jenowski. >> I. Mossman. >> I. Oman. >> I. >> All right. Donations have been accepted. And thank you again. Okay. Can
029I >> if you could move to committee reports. >> Yep. That I'm on it. All right. We'll go down to committees. Mr. Olmstead, are you ready to lead facilities or are we going to move? Okay. >> Sure. We'll have fun with this one. Um, so talked about the ongoing windows at Tiger and moving forward on just figuring out how everything is going to get fixed in the future. Um, there's not much that we can really talk about because of directions that it's going um and stuff. But we also talked about the new um stuff we're putting down on the ground, the the liquid verse the salt that we used to always put down. Um, and that's coming along really good with um partnered with Jamie at Oh, who is that? What's this company again? But
030they're helping us with this whole project so that we can make sure that we really know how to do it to benefit to save money to cuz the less it's going to damage the floors and the buildings and stuff. That was a larger part of the topic of the conversation. >> Thank you. All right. Finance MP. >> So our revenues are on track at 39%. Our expenses are on track with 29%. Um, we reviewed uh the entire check registry for last month and any questions were answered. Um, we did preview the refunding bond resolution and the truth and taxation presentation, but you will all hear that tonight. Um, we would also like to make you aware that we are considering moving the main board meeting um to a different day or week of the month.
031This the reason that the finance committee would like to ask that is we're having some difficulty with um the finance department has to finalize all the reports. >> Then we need to get that information for a period of time before our meeting and then we need to get that all approved for this. and the time is a little too tight for the second Monday of the month when the second Monday is like the 8th and we're working through a weekend. So, um, so we're thinking about maybe switching to a different day of the week further on in the week or maybe switching and still doing the second and fourth, but maybe doing this meeting the fourth Monday of the month and our work sessions the second Monday of the month. So, we're discussing that um
032or I want you all to consider that and then we'll make those final decisions in January. But I kind of wanted to give you guys a heads up on that. Okay, that covers our meeting. >> Sarah said it probably too politely. The way we have the schedule set right now screws over the finance team. And then it frustrates the finance team, frustrates the board, and really it's unfair to to the all parties involved. And so we're just trying to find a way to get the information the board needs at a realistic time for the finance team. >> And we have tried to solve that on our own. Um but we've just we need to make a different solution or have a different solution. >> Deal. Thank you. Um anyone from the advent team want to
033give an update on parks? >> I can just say that I know their winter um brochure is out and I think people are starting to either sign up today or tomorrow. So um they're looking forward to having people sign up for that. That's just what Lynn had told me uh this morning. So Deal. Thank you. Technology which gentlemen wants to lead it. >> Uh very short uh technology took place this month the same time as another meeting and so it was very brief. We talked about um the security plus training that's been sent out. Um and and I think that was the entire topic of conversation. So the next one will have more detail. >> Thanks. All right. um whatever that long one is, civil readiness. >> I can do the one for uh the
034achievement and readiness. Um we had our meeting earlier today. Um it is my favorite because we get to uh learn about new curriculum, new classes. Um and boy, we had three new classes that are talk we're talking about doing for next year. Well, two new classes and one new curriculum. The first would be broadcasting at the high school level. Uh Mr. Carol was crazy excited about it and um and it would be an English elective. If you'd like to know more, I can share that. Um and then the second is like an add-on to a class called world to work class. So this is a class where the the students it's a current class that we have the students are um go to class maybe the first two weeks learn some basics about being an
035employee and then that period is like a a placeholder for them to go out into the community and work. Well, the add-on that they are proposing is to assist kids in getting their CDL license, which is what you need to drive a big truck. And um it it's just pretty exciting to see the things that we have in play at the high school to really have these students ready for either college or a job right after high school. um they they can't take this CDL lensure class until they're 17 and a half. So, this is only going to be for seniors and it just really puts them right there um ready to start their life. So, that's pretty exciting. And then the last um one was a um a program through the uh for the
036tap kids and um it it helps students uh with the transition you know from being a student to job life and I mean that's what the whole program is but this is a little bit more organized and what they're doing feels more like doing an internship instead of continuing to be a kid. This is a a really big thing for these students in the TAP program. They they're not kids anymore, but they still need that assistance. Um just that transition from high school into adulthood. So, um it the the primary difference is the opportunities. um the these kids are working a No, these young adults are working in our school district, but this is getting them out more into the community. And so that's pretty exciting. And they'll be working also um with uh the
037Tiger uh >> Tiger Path program. Thanks. >> One thing I would add to that um CDL, >> they can almost start at six figures. Yeah, >> like if they do this, there are jobs out there that start them at six figures. They'll have no They probably have no loan to repay. They're even talking about partnering. Maybe you said that, but they're talking about potentially having businesses in town partner who need truck drivers and would pay that amount if they made a commitment to them. So, this is a pretty unique exciting thing. So, >> yeah. And we do have the CNA program going on now for the certified nursing assistants. So, the CDL program is another program that's similar to that. And both of those programs would be at Ridgewwater. And if you can imagine, a
038big trucking company wouldn't have to be in town in order to sponsor some kids to get their CDL license. I think it's a great idea. And I think and they also the the young people, the seniors who are going into this also have to maintain their attendance in school and they have to pass the rest of their classes. They can't just go on this and say, "Well, I'm just going to blow off school." So, just so you know, this is this adds value to the kids exper uh the young people's experience and gets them ready for the next phase. So, I think it's a great program. >> Good job. Good report. All right, Miss Bull, are you ready to roll back to the top? >> Good evening. So we will begin now with the truth
039and taxation hearing for fiscal year 2027. So this is taxes received by the county and payable by constituents during the 2026 calendar year. Um so as a reminder, this is revenue for the upcoming school year budget, not the current school year budget. Um the state law is pretty prescriptive about what we must include uh when we present this hearing. We need to talk about the current year budget, how last year's revenues and expenses turned out. I will go pretty quickly though because the auditor was here and went over that information on November 10th. Um we'll talk about our proposed property tax levy um dollar amount, the percentage change over year. This year we are reporting a a proposed decrease and then we will have an opportunity for questions and answers should there be any this
040evening. So coming out of the 2025 fiscal year, we reported a break even year um with respect to revenues revenues and expenses. Revenues outpaced um expenses by approximately $330,000 in the general fund. For 2026, we're projecting to be break even. Um we're projecting a modest modest decline in the unassigned fund balance. Um, we expected to decline about $200,000 from the 11.5 million that we currently have recorded on the books. We did make $1.3 million in expense reductions last spring ahead of the July 1 budgetary requirement to have a school district budget in place. Um, our school district continues to be committed to living within our means and matching revenues with expenses. Um, you do have a summary of the school district's funds. The funds are how we account for funding streams. Um the state lets
041us know exactly how we have to account for them. For example, we have to keep the general fund separate from food service. So each line up there um is state required to be tracked separately from each other. The levy impacts the general fund, the community service fund, um capital which is a part of general fund on the screen although we do track that separately um locally and then the debt service fund as well. So as you know um 81% of the school district's revenue budget is derived from state state aids. Um we're projecting 40.2 million for 2526. Um the primary drivers of the majority of our revenue are the number of students and the per pupil formula allowance. Um however, we wouldn't be able to provide all the programs and services that we do provide
042to our students and to our staff if we didn't have the 11% of total revenue coming from our local constituents. So we really appreciate their support. Um without that, like I said, our current level of programming would be impacted. On the flip side of the equation, we are projecting 41.6 6 million in expenses for 2526 school year. 78% of that or the largest percentage of our overall expense budget relates to salary and benefits um regarding the programs and services that we provide to our students. This year we are anticipating a decline in the school district's levy um from 2025. the 2026 um decline year-over-year is $69,39466 which is a decrease of 5.9%. Um so right there was the second um and third legal requirement that we have to share this evening. We are going to
043get into the largest components of that change and so we'll go over each of them individually next up on the slide um the slides are intended to stand alone to meet legal requirements. So, I'm not going to go through every line on every slide, but just know that I'm going to touch on the highlights in the coming coming minutes here. Before we do that, I just wanted to provide a summary by major area of the levy. We recommend setting the general fund levy at 4.6 million, which is a decrease of 9%. And again, we'll talk about the reasons for that. One of them is a one-time um health and safety project that's not going to recur, but that was posted in the 2025 levy. We recommend setting the community service levy at 145,000 which is
044a decrease of 10.85%. And we recommend setting the debt service levy at 4.9 million which is a decrease of 2.53%. The total levy then for the upcoming levy cycle or fiscal year 27 revenue is 9.7 million a decrease of 5.9 million. It's oftentimes asked of us what does this look like over time? I apologize. I'm going to get to that in a minute. Let's talk about the main changes. Um, local optional revenue. Um, the general fund um is where these dollars um are put to use. We fund personnel and general operations with it. The decline of $125,75762 relates to a decline in student enrollment. Um for the last school year we saw a decline of 48 students. Um what we see happening is larger cohorts are graduating than entering in the system. So for example
045we may have 200 210 students graduating out from um 12th grade. Meanwhile we have anywhere from 165 to 180 kindergarteners when you look at the K through six class sizes um at the very beginning of the the K12 system. Um I had mentioned that we have a health and safety project. Um it related to Park Elementary. This is in the previous year levy or the base levy 2025. We um levied for an additional 236,16.68 to help us complete the park asbestous abatement when we were remodeling our elementary schools. So these costs were one time. We don't have anywhere near that magnitude of a project slated for fiscal 27. So there's going to be a decrease in that pay as you go health and safety levy by that amount. But there isn't going to be those
046expenses either. So when we see revenues fall, we won't have expenses to try to pay for with any other revenue stream. Um ECF, we haven't seen a change in our early childhood family education levy um in a very long time. We're anticipating a $12,691.98 decline. There's two things happening there. We have our early childhood census which has been gradually declining as birth rates decline, but there's a much sharper decline um as we look into fiscal year 27 and who would be on the early childhood census at that point in time. We would have 1,175 students instead of 1,210, which has been pretty stable for our region. Um, another new, um, trend that we're seeing is a decrease in the tax rate since the adjusted next net net tax capacity grew statewide for this levy category.
047Um, with respect to the school district's bonded debt, every year when we input what our principal and interest payments are anticipated to be, state statute requires that we levy 5% more than what we're anticipating to pay out um, in our bonded debt. So when we recalculate based on what debt service is upcoming, there could be an increase or decrease in the levy amount based on that formula. So when we put in the actual principal and interest payments that we're anticipating for fiscal year 27, apply the 5%, we have a calculation adjustment and we're anticipating a decline of 71,000 in the voter approved category and $38,000 decline in the reduction for debt excess category. So, this is the the chart that I started to speak about before because a lot of times we'll have constituents ask
048us what what is our target and what are our goals. Um, over time as a school district, we've tried to make sure that our levy stays in that zero to 3% range when we're looking at a 5-year rolling average. Over time, you can see that when you factor in fiscal 27, um, we'll have a 5-year rolling average of a 1.1% increase. Um, however, like I mentioned, the current year, fiscal year 27, um, levy is anticipated to decline 5.9% largely related to that one-time project that's not recurring. So, as you know, there are many variables that impact taxes. um for constituents. Um changes in value of individual property um property reclassification either at the county or the state level. Um changes in total value of all property in the school district and then increases or decreases
049in the levy amounts caused by changes in the state funding formulas or the overall state um property value. case in point was that early childhood um limit which was impacted based on the overall net tax capacity in the whole state growing. And then of course when you pass um whether you pass an operating referendum or a bond all of those things also factor into property taxes which we did not have any of that um impacting fiscal year 27. And then state credits, the most well-known one is the egg to school credit. Um whereby the state sends a higher proportion of overall revenue as aid, which is a local levy or a tax break um to our constituents. So depending on what is happening with that, that also has a pretty significant impact on our taxpayers.
050I'm going to run through some charts that just show what the tax impact um means for taxpayers assuming we decrease our levy by 5.9%. Um factored into these examples is the fact that there is an 11% increase in total property value. But so that we can see a true picture of what the school district is really influencing or impacting taxes with. We're not assuming that the property value changes, increases, or decreases because that's something that's determined by the market or by the county assessor. So, we carve that variable off so that we can give a true picture of what our influence truly is doing to property taxes. So, up on the screen, we have a chart that goes through various types of property. Um we can go through um any number of examples, but the
051average home value in our county or our school district is about $300,000. And as you can see um as you work your way towards the right, it's comparing actual taxes payable in 2023 to what we're estimating should this levy be certified at a 5.9% decline for payable 26 fiscal 27. You can see that there would then be an anticipated decline from $1,184 owed back in 23 to $1,53 owed in 2026. The next chart just shows and illustrates how we compare to a pure group of school districts. So, you can see that for total school property taxes payable in 2026, assuming that average home value of 300,000, Hutchinson um is near the middle of the pack, but in the lower end of what we charge our constituents. Um ACGC um has total taxes uh for this
052value of home of $851 as compared to St. Peter at the high end of $1,621. And so this includes bonded debt for each school district as well as the operating referendum that may be passed or currently in place. >> Can you pause there? Back up the screen. >> Sure. >> Well, I may have to pick on Dan on this one cuz this has been a I think a topic for the board for a few years is how do we stand with the rest of the schools up there? Can anyone speak to the infrastructure of those other school districts and the value that the Hutch has compared to those? I know Wilmer's passing, but it's more of also amount we've invested into the school district and the number of buildings versus is that largely operating. >>
053These are total, right? >> Total taxes. If you look at our operating referendum, we're low, of course, because we have $300. Um, but if you look at total taxes, which this is, you have to take into account we're a regional center. Um, our our values of some of our things are probably a little bit more than if you go to Atwater, Cosmos, or Grow City to buy a house. Uh, and they and and, uh, so there's a lot of factors that go into this. And I like to see this slide, too, because it it has everything, all the taxes, not just one piece of it. So, kind of gives you a better view of how Hutchinson uh and I know like Marshall um they don't have an operating referendum. They tried to they tried one
054just a month ago and it didn't go through. So, that would be why they'd be probably a little less than us cuz we have a little bit more of one. So, I don't know if you want to add anything to that. >> I just was going to say the very next slide kind of zooms in and digs a little bit deeper into what your question is um as the chair. So you can see here now we're carving out the bonded debt piece and we're looking strictly at the voter approved referendum. So the the dollars that our constituents are are paying in order to supplement state and federal aid. This is the piece where Dan was referencing, Superintendent Diet was referencing that Marshall does not have one. And as you can see relative to the peer
055group which is a pretty representative sample um we have the lowest amount of operating referendum that's voter approved at $311 per pupil as compared to Dasoko which is at 808. So when you put the two pieces of information together you can see that the majority of our taxes that we're collecting does go towards bonded debt. But if you were to break out each of those previous school districts pieces, it's typically more half and half just to kind of share that perspective. Does that answer your question? >> Yes. >> Good question. Um, it's really hard to tell a financial story for a school district or a business in just a couple of slides. So, I added a couple of others that we don't typically talk about, but I just wanted it to speak to um the
056seriousness that we put into balancing our budget annually and trying to make sure that as a school district and as community, we're contributing to living within our means. So, I wanted to show here the fact that we have one of the lowest operating referendum amounts per pupil in our peer group. However, we are doing a really good job with monitoring our general fund expenses because you can see we're in the top four with respect to that. Um, and you're probably asking yourself, what do we provide that others don't? Um, as compared to Delano' be fun to have a conversation with them, but what we know about a lot of people in this peer group, including Delano and Asco, they are not um regional hubs for special education. So special education is a key piece that
057boosts up our total operating expenditure per pupil relative to some of the other districts. And then we're also a career in tech leader in our region. So they don't have those they don't have as robust programs in those two arenas like what we do. So it's just kind of a good opportunity to talk about the story behind the numbers and just share what that can look like service-wise um in each district. And with that, um, we can accept public comments. Um, any board member can, I can, the superintendent can. Um, and then we would recommend certifying the 26 property tax levy at a recommended 9,713,3144. And we do need to certify a very specific that specific amount to send over to Mloud County. Are there any questions? What date does it have? >> Let them
058come up and speak first. You might want to come up and >> did you you mention the paid leave program? >> Paid leave. And >> what's the other half of it? >> It's Minnesota paid leave. It starts on January 1st. Y >> have you estimated what the cost that's going to be for this for the school district? Boy, I I don't know if we have an actual cost yet because we need to kind of see how it's going to roll out, but we'd have some ideas. Yes, it's going to definitely add labor hours to our school district. It's just it already has all the preparation of getting ready for it before January 1st and then it's going to add even more after, but I don't know that we have specific numbers. Um what I can
059share >> to budget >> to her point >> um what we can share at this point with respect to the analysis of the cost is the employer share of the premium so it's a premium that's shared between the employee 50% and the employer 50% it depends on total payroll right >> excuse me 50% who and whom >> um the employee pays 50% of the payroll tax and the employer pays the other 50%. So, >> so that's a payroll deduction. >> Yeah. So, it's it's it's 83 and we and the employees share half of the83 and the employer has to pay the other half of the83. >> That's kind of what she's saying. Yep. >> Yep. And so our estimated share of the payroll tax is approximately $135,000 that we added to our budget for the
060upcoming school year >> at least. Well, that's Yeah. And that's just that part. Yeah. There's a lot, you know, a lot more of that has to go into it with labor hours. Yeah. Thank you. Yeah. Thank you. >> Could you state your name for us? >> Thank you for your time and your question. >> Are there any other questions? >> Okay. >> Did you have one, Diane? >> Um, I was just going to ask how how much time the public will have to give us comments or questions on that, but I don't know if there is a time frame. >> It's right now >> and then it's done. There's no >> Yep. They got it ahead of time with it would have come in the mail and then this is our hearing that we're having
061right now and this is and it was published on that >> Yep. And it's right now. They can always ask questions after though. Of course, we're happy to answer them. >> Just curious. Good question. >> All right. If there's no other you guys got something over there you put >> Yep. Leave that dollar amount up. >> All right. Is there a motion to approve the final adoption of the 25 payable 26 levy for set dollar amount on the screen? >> So moved. >> Motion by Danny, second by Sarah Pullman. Any discussion? All in favor say I. >> I. >> Final adoption of Levy passed. >> Thank you. >> All right. Let's roll back down to 2025A refunding bond sale date report. >> Hi. >> So Beth DS is a municipal adviser with Ellers and she
062works very closely with Jod Zesba. Um Jod had other commitments this evening. So, I'd like to introduce Beth and she's going to walk through the sale day um report as well as the resolution to pass through the refining the refunding debt. The >> do you need? >> No, I'm just um on the agenda. >> Yes, >> we do. And then each board member has a paper copy of the sale day report. >> Thank you. >> Hi. Thanks for adjusting for me a little bit. I would have been here slightly earlier, but you get stuck behind someone and then you go 40. So, I appreciate uh moving the agenda around a little bit tonight. So, we have the results from um last week's sale of the 15.6 million refunding bonds, and we were really, really happy
063with um results. It's been really volatile the past two months. Um, you know, we we were thinking we'd be around 400,000 when we first started looking at this bond. When we got pre-sale last month, we were more like 199,000 of savings. And then last week, we saw 399,000 of savings. So, it's just been really volatile. So, we're really happy, very, very happy with the results. So, um, in the packet is the breakdown of the bond. And again, this is refunding your 2016 a thank you. Your um election was in November bond sale was in um 2016 of those school building bonds that were mostly for your high school. So I think if you want to just jump to page seven of this report, we've got some bid tabulations and some other items, but page seven
064shows the debt service comparison and in particular the savings um you're going to see. So we are just refunding a portion of that 2016 bond. So we are refunding the maturities that were due 2027 through 2035. So, there are still um six more years of payments left. And the reason we're only doing those certain uh maturities is because the coupons, those coupon rates were lower um out in later years. So, we're not going to see any benefit from refunding the whole thing. So, we're doing a a partial refunding it's called. So, um these funds will go into escrow. They'll sit until February 1st. Um and then that will pay off the old portion of the bonds and then the new ones will go will go on your book. So, um, on the very right side
065column there, you'll see the savings amount. So, we're really not seeing, um, the savings come through until about pay 2032. Um, and there is a a reason they're um, built that way is we've got some debt that's falling off. Um, in 2035 36 that tax rate was coming down and so we wanted to push that earlier for you. Um, as you know, we like to wrap, you know, if you have new debt, we wrap that around your old debt. So, we'd like to see that um that cliff or that capacity come up for you so that if you guys are needing to look at another project soon or something going on that you've got some ability um to do some projects with lesser of a a tax impact either board approved or voter approved. So,
066about $400,000 overall for a savings. Um the last part of the report is the Moody's rating action. So, when we're selling bonds, the district um your superintendent and Rebecca have to go through um ratings, calls, answer a lot of questions about the district, really be steward. So, the the district has a um double A2 or double A3 rating. So, that's basically three notches below AAA. So, the state of Minnesota would be a AAA, for example. There's a handful of districts in the state that get that. Um where we're talking about pretty big metro districts. So for the size of Hutchinson and the um geographical area that we're in, that double A3 rating, double A3 rating is really is really good. So it's just a a good reminder of the, you know, when you have good
067stewardship of your funds, good reserves, things are healthy like that, um it really does help you overall because the the better of a a rating you get, the lower interest rate that you get because you're considered less risky of an investment. So, it's a it's a kudos to you for the board and for your administration. So, this part of um the report is justformational for you. The resolution is actually um the item that needs action, but I am happy to answer any questions before you look at taking action on that resolution. I just want to re-echo that page eight ratings rational that first paragraph just again good job to the district staff all the way around all you guys to have that one comment I really do think as a private citizen knowing that's a
068very powerful statement it's like a good credit score for the district so good job to everyone at the district >> what do you find the average district's rating is >> um so it varies pretty considerably in Minnesota depending on your geographical reach region what your fund balance looks like. Like I said, um those higher ratings we see are generally those bigger metro districts for our small districts, um more outstate Minnesota, especially as you get into more of our farming communities. They are more like a single A1, A2, that's pretty it's pretty common. Um so for you guys to be in that double A is really good. >> We also had 10 biders which was I mean that's that's a really good amount of bids that you >> Yeah, correct. Yeah, we like to see at
069least three. And considering this is a a refunding bond and not new money, 10 biders is excellent. >> Nice work. Nice work. Anyone got questions? Okay. Anything from staff on this one? All right. Let's roll on down to the resolution ratifying. Is there a motion to ratify the bond series as presented? >> So moved. Motion by Mossman. Is there a second? >> Second by Dan Holstead. Any more discussion? >> I think there's just one more thing I'd like to state. Um this almost $400,000 is not money that we the bo, not the board, the school district keeps and gets to use out of its general fund. This money is going back to the taxpayers. So, it's just important that our taxpayers know that. >> Thank you. >> Correct. Good. Good point. All right, we'll move
070on to roll call. Mr. Olmstead, start it up again. >> I >> Luans I. Jenowski >> I. >> Mossman >> I. >> Miss Bowman >> I. >> All right, we have it. Passed. Thank you guys. >> Thank you. >> And thank you, Beth. >> Okay, rolling down. Uh, I'm getting there, boss. All right, we have our board meeting January 12th. We'll be basically reorganing then and then hopefully majority of the board will be off to training that week. MSBA and then we had the upcoming committee meetings and now we're going to do uh close the meeting for negotiation strategies. Is there a motion to close the meeting? >> So move. >> Motion by Mossman. Is there a second? >> Second. >> All right. Second by Homestead. All in favor? I meeting closed.