001Good. It's 7 o'clock, so let's start roll call. Brenda will be late, otherwise we have Molly zooming in and uh you'll stand with the pledge of allegiance. 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. Welcome everybody. We're going to do the meeting with lights today. [Music] And uh first item up will be to approve the meeting agenda. Anything we need to note on that? No, we just had a couple uh additional items since we emailed it out to uh the Pelican Compress and schoolboard members. We had a couple additions under consent items of acknowledgements of some staff. Okay. Right. I'll entertain a motion to approve the meeting agenda. So motion by Gray.
002A second second by Stacy. Any discussion on the agenda? Okay. Hearing no discussion. All those in favor of approving the agenda signify by saying I. I. I. Those opposed say. Agenda carries. Opportunity for visitors to address the board. Okay. Looks like we are good there. And let's go to number five. Acknowledgements. So we have the 2025 valadictorian valadictorians. We got William Pesh, Anna Royson, Brody Severson, Mariah Wisher, Saludiatoran, Daisy Hall. Activity workers for the 2425 school year. Substitutes from the 2425 school year, spring all state athletes. So we have softball academic all-star the silver track academic all state grace backroy Carlson Aiden Czecho Duza Andrew Czecho Duza Edwin Escobar Megan Guler Hazel Hog Hubland Ethan Eisman Morgan Corf Brody Severson and Jack Welch so all state was Aiden Czecho Duza and team academic all state
003boys and girls they had gold m anything to add there? Well, congratulations to our valictorians and saludiatoran. Want to thank all our activity workers for all their time and effort helping out making our events successful. Thank you to all our substitutes uh for subbing for us. Very appreciated and congratulations to all the teams and student athletes in the spring. Okay, anything else? All right, let's move on to presentations. So, we have Mr. Martinez and Mr. Steves for LTFM presentation where you want me. Okay. Um, go through this every year what our upcoming and actually we're well we're well under these list already. Um, been flipping along. So, we start with uh LTFM long-term facilities maintenance program. Um these are over and above our our maintenance that we do throughout the school year. So, this is
004stuff we try to get caught up ahead um do. Some of it is um kind of we do it every year we need to um and then there's there's a lot of new things on there too. So, um each softball field we we already built those new dugouts over there. I don't know if you've had a chance to drive by them. They're they're just like the west one. Turned out really nice for those guys over there. Um we have uh on the north end of the football bleachers, we have cement that's cracking up and lifting. We're going to replace it with some aluminum. Um so it looks it's kind of like docking. It looks like the uh the rest of the bleachers. So that's a project that we need to do yet. Um we had
005tennis courts. We got to keep up on the cracked ceiling and and some parking lots. will be done there. Um baseball uh replace some covers uh batting cages got to replace um indoor outdoor carpet for batting on those. Uh we want to roll down to the next one. Um elementary uh the two bathrooms by the office or right by the boiler room. Um they're used by a lot of the Head Start kids, little kids. We are kind of redoing those. um lowering the fixtures like the sink, urinal stuff um because those are pretty little kids. They use those. And then we're doing epoxy floor and all new fixtures in those two. Um the uh first grade kindergarten, that's southwest door three. We're replacing that outside door with a new aluminum storefront, aluminum doors on that
006just like we've done around that uh along that building already. um front landscape. That was a grant that I received at a at a Masmus um convention I was at. We're going to replace front bushes and um sweeten that up a little bit. Um Head Start replacing some sinks. Uh that roof duct piping is stuff you see as you drive by. We just always have to keep up on that. Um we replace and maintain that every year. um courtyards are trees are growing, so we had to keep those off the roof. Um sixth grade gets new sinks and countertops. Um we did a bunch of that last year in fifth grade area. Um new faucets. Um that kindergarten floor sensory path. Uh we're going to see if we can get that in this year. That
007floor was replaced last year. We didn't have it at that time. So we we'll see if they can put it in now. All right. Next one should be high school. Um we do the floors first week in August. Uh some doors to replace although this tuck pointing. This is the last of our fiveyear project. So we've tuck pointing is when they grind out the grout in between the bricks on the outside of the building. Um the last part we have to do is the east wall of the legend's gym. So that is the uh the last the five and we have spent uh about 50 grand a year on that. So we've done it over over five years and um it'll be nice to have that done. Security updates are things like card access uh
008camera systems that um cameras are little computers and they they uh go bad faster than they probably should, but we um keep up on those. Um, we did some work on a on a walking track. We had an area where we had a hole in the wall, so we added some FRP panel as is a fiberglass panel. Um, better wear and stuff. We got that in actually last week. Uh, locker rooms, they just started uh redoing the floors down there. They could do a new top coat on the epoxy. Um, we always have a bunch of touchup painting around and painting concessions. We're going to install a front display case. got to cut the brick, add some glass. Um, so it'll make it easier for them to serve and display what they're they're having kind
009of more like a theater. Uh, when you go to a movie, it'll look like that. Um, was working with the uh, uh, Mr. Poach on that, Mr. Tulsson, and we we got plans. So, we're going to get that in. Um, some ceiling on some sidewalks, uh, office area. We got some office moves. Going to be painting some stuff. um painting in the locker room, always classrooms and door moves. So, these are lists of stuff that that um you know, we prioritize. Then we also have room moves and daily things that come up and and uh stuff that happens around here. But yeah, another another busy year. Nothing real major like we've had in the past, but um fortunate we have a good work crew and you guys will be approving all them. So, they are
010really kicking things out. Um it seems like a lot of staff and it is but we have a lot of people that are working um three people are filling for a week. So one's working one day, two days, you know, three days like that. But um that's kind of how it is nowadays. But but they're showing up doing their work and they're they're very reliable. So any questions on any of that? Went through it pretty fast. Um but we continue to uh to keep up with things around here. keep a a nice looking safe building for our our students and staff and visitors. So, all right. Thank you, Mr. Martinez. Good morning, everyone. Still drinking my coffee. Trying to wake up. All right. So, LTFM, like Mr. Steve said uh is something that we approved
011annually is a report that we have to show to the state. Uh program started about um eight years ago and it really the initiative was to help schools help with all of their building and all of the needs because we know that in Minnesota we have uh aging buildings. So it helps to cover some of those gaps. Uh big update. Uh one of the big uh legislative uh uh pieces that were approved this year is they introduced LTF piece that approves what's called above the roof line. So in the past um in the past they used to limit us on how much we could um request an LTFM from the roof line. Why? because they know that roof projects are um very expensive. Uh new legislation does introduce us um and gives us the piece
012to uh to request additional dollars for any projects for roofing over 100K. So that was a big win for school districts. We're very happy for it. Uh the funding mechanism for LTFM is $380 per pupil unit. So remember when we talked about ADMs or student enrollment, the school or the state um uh turns our uh student count into pupil units. And they do that by um adding the number of uh uh giving us uh paying us at 120% from 7th grade to 12th grade. So our pupil units are always going to be higher than our actual enrollment. Um I say this every at every uh school meeting whether it's our levy, our budget. Uh um um you always hear me say this comment, but we are landrich uh in our school district meaning that we
013have a high high amount of um a high amount of uh uh value of land ownership or land or property value. And why is that important is because LTFM has an equalizing factor that gives the state the narrative to either be funded by state aid or funded by local levy. So because we are such we have such a high high proportionate of property value 100% of our LTFM actually gets funded highly dollars. So just wanted to make that clear. um in terms of the revenue that we are going to receive for uh fiscal year 27. So, believe it or not, we're actually we're actually uh requesting dollars for fiscal year 27. The projects will take place this summer, but again, the state uh um the state pays us at our reimbursement pays. So, the total
014number of dollars that we are anticipated to receive for fiscal year 27 is going to be $176. $176,000. I'm sorry. Uh in today's board agenda, you will approve what's called the 10-year projection uh revenue plan. And essentially what this is is the state uh telling us that we have to be fiscally responsible and every year we have to budget uh uh for the amount of LTFM dollars. Uh, one thing to note with LTFM is that it does have its own reserve account in our financial books and we are approved to go into deficit in this particular reserve account. When the program started about 10 years ago, school districts were going very severely in deficit into this particular reserve account and the state said, "Well, hold on. We can't do that because essentially you'll have to
015make it up over time." So they started giving us the spreadsheets in a 10y year uh in a 10-year lapse periods. Why? So we could budget more efficiently for it. So the the concept is you want to budget as close as possible as you can into the revenue that you are projected to receive. Um if you are going to go in deficit, you have to let the state know ahead of time why you're going into deficit. request pre-approval to go in deficit and then provide a corrective action plan on how you're going to get into deficit within a three-year uh funding period for your LTFM reserve account. So again, in this report in the revenue because it does has to be approved by the board for fiscal year 27, we want we're going to receive
016$176,000 um into our LTFM projects. Uh let's go on to the next page. Okay. So, we take everything that Shrev just gave you guys and then we cost it out. We start working with vendors, start looking with service providers, and then we cost everything out. And essentially what we do is then we budget the amount of revenue that we're going to get minus the expenditures that we are anticipated to receive and then we get that reserve. So, starting the year, we actually have about $22,000 in our LTFM reserve budget. We're going to receive $176,000 into our uh LTFM account. We're going to spend $168 and then we're going to hopefully end into a net of $30,000. Right. So, that's how we budget uh uh for LTFM. Um in the fall, hopefully ch will have then
017uh a follow-up presentation for you guys with pictures of all the projects that we've done. So, again, this is a report that you guys will have to approve today. Um and I'll entertain any questions. Anybody have any questions? All right. Thank you guys. Thank you. So we have Minnesota benefits. Great. So today I get to share with you guys a few of the different benefits provided to um employees within the state of Minnesota in regards to um extended leaves for the most part and sick leave. First we'll talk about FMLA which is the family medical be backed. Um, this is el this is for eligible employees only. So, we'll talk about what that means. Um, who work for covered employers, which we'll also talk about. Um, that allows them to take up to 12 weeks
018of unpaid or paid um job protected leave for different reasons that are specified um and continue their health insurance. An eligible employee must work for a covered employer for at least 12 months before they're eligible. And within those 12 months, they have to have worked at least 1,250 hours. A covered employer is um a public or private school or public agency or a private employer who has at least 50 employees during the le um during at least 20 work weeks in the current or previous calendar year. And those employees have to all work within 75 miles of the work location. So they make it really clear and easy. Um employees apply through their employer. So if somebody needs to be gone, they would contact me in the district office and we provide them with paperwork.
019Um oftent times it's paperwork that they have to take to their healthc care provider to complete that states what is necessary for them. And then um like I said above, it's only required that the the leave be unpaid, but if they have leave available, then it could be paid. Um so it really depends on the employees paid leave plan. This has been around for quite some time and is provided by the US Department of Labor, wage and hour division. So this um doesn't say how much leave or anything or how much paid leave, anything like that. This really just provides them with job protection and ensures that they continue their health insurance coverage. Then we'll go on to ESST which is the earn sick and safe time. Um this is newer within the state of
020Minnesota came out in 2023 and um this is a specified or required amount of paid leave specific to like sick leave uh that an employer must provide their employee for certain reasons in Minnesota. You do have to be an eligible employee. Um, and that simply means that we must as an employer must anticipate that you'll work at least 80 hours in that year and you can't be an independent contractor. So, for example, um, our varsity officials are all independent contractors. So, they wouldn't qualify for ESST through us. Um, somebody who works at a sporting event for us and they only work at one sporting event, for example, track. Um, if they were tracks throughout the year, they're not going to take 80 hours. They wouldn't qualify. Um the biggest change for us as an employer
021was that our substitutes then qualified for sick leave for ESST. Um and this really is for all employers within the state of Minnesota. This was put in place to ensure that employees in Minnesota were receiving sick leave um and that they receive it in a certain amount or acral amount. um our sick leave that our teachers, paras, all of our regular school year staff, our 12-month employees, all of their sick leave um that they earn and acrew monthly was already meeting the requirements of ESST. So, there was no change there. The biggest change, like I said, was for our hourly paid employees, our substitutes, and they acrew ESST based on their hours worked, which is one hour of sick leave per 30 hours of work. And there's um we have it built into our payroll
022system. So each pay period when I process time, I also process do a step that processes their ESST approval. And this, like I said, was provided um in 2023, and that is from the Minnesota Department of Labor and Industry. It has kind of been ever changing, like there's there have been quite a few updates throughout the years, um last couple years. Um and finally, we're going to talk about paid family medical leave, which is probably something you guys have recently heard about locally. It is going to be new um starting in January of 2026. And this is part partial wage replacement and job protection for employees taking leave um basically seven or more days of work continue combined um for various family medical reasons. you do have to be an eligible employee and employer. Um,
023which is pretty much everybody in the state of Minnesota for the most part. Um, except for federal government employers, self-employed individuals. Um, and the employee has to have worked within the for the employer for at least 90 days. Um, it does cover medical leave for 12 weeks and family medical or family leave for 12 weeks with a combined maximum of 20. So, for example, if somebody's out for their own medical reason and then a family member ends up out too, they're not going to be gone for 24 weeks. It would be a combined max of 20 for that benefit year. And the benefit year would start at the beginning of the first leave. This will be a required tax that will be deducted through your payroll. Um so every check starting in January of 2026
024will be taxed um for the employee and employer and in 2026 the amount is set at 888% of taxable income. at least 50% of the amount due is taxed is has to be paid by the employer and the remaining amount paid by the employee. Like I said before, this is deducted from every payroll. That's regardless of if or when you use the benefit. So, it's not something that, oh, I need to take paid family medical leave now. I'm going to start paying the tax. Everybody will start paying January 26. Uh the payment is based on how much you normally earn. So if you request to take paid family medical leave, you'll request it through the state. A lot like Minnesota unemployment would be kind of through the same same steps or similar steps. Um and
025that payment based on how much you normally make. Um most people will receive between 55 to 90% of their regular wage. and it's based on a state average that will be updated annually. Currently, it's set at 1,372 per week. So, essentially, the lower the income, the higher percentage of payback they'll receive, and the higher the income, the lower percentage. Um, a lot of people look at this as being similar to short-term disabilities. There's a lot of discussion about what plans will remain employers or that employers provide for short-term disability and what will not because of this. And again, this is new coming in 2026 and this is through the Minnesota Department of Labor and Industry. Go to the next one. One more. Um, so FMLA, like we talked about is job protection paperwork that they
026fill out, help provider fills out. um through their employer that provides them a job protection for qualified leave continuing their insurance. ESST or sick and safe time is how much sick leave the state requires the employer to provide and paid family medical leave coming in January is a payment job protection and similar to short-term disability. All three of these benefits can be used in conjunction with another depending on the individual's um eligibility for each different one. I guess any questions there's one more. So anybody have questions? All right. Thank you. Thanks. So, Mr. Nelson, you got report for us. Good morning. We had 285 students had perfect attendance in May. So, finish strong again. uh fun to see the uh students get the excitement of getting a little reward. I sat in a webinar yesterday
027on attendance and uh one of the thing they talked about some type of rewards for the ones who have good attendance. I thought oh we're doing one thing right. So that was good to hear. Um I want to thank Anisa Berg for work as a PAR. Um she's going to be subbing for us moving forward in the future here. Uh teachers completed the unit 4 letters training on May 22nd. So the first four units are done and they've been working hard in uh the new language arts standards. We've had many groups in uh they do their first grade level. They meet and then they'll meet with the grade above them and below them with the scope and sequence to make sure we're not having gaps in our uh while we're teaching language arts with the
028new language arts standards that are going to be put in place for next year. And then with our reading core, we're in Reading Core is a federal program that is in our building. uh they're not run by us, but they're in our building. We had 10 students who scored high enough to graduate out of that program, which I think is the highest we've had. Um and so I want to thank Claudia and Jessica for their work and uh they were very dependable there every day and that's why we saw such growth as that consistency for those students. And so those 10 students um will be out of the reading court for next year. So any questions? I don't hear any. Thank you. Thanks. Yeah, I'll do a report. Yeah. Okay. Okay. High school report. Um
029a few things here uh for summer meals at the high school. Uh we want to thank Mrs. Coach and Mrs. Justin for the work in providing healthy meal options for all kids 18 years and younger at the high school. Meals are served Monday through Thursday through August 15th. Breakfast is served from 8:00 to 9:30 and lunch is served from 11 to 12:30. Summer school started on May 27th and it ended on June 12th. So, thank you to Mr. Rick, Mrs. Corp, and Mr. Hogood for helping students complete credits in math, social studies, and language arts. Thank you to Mr. Sturdivan and Mr. Schaefer for their years of service and commitment to the district. Your impact in the classroom, on the court, and on the field will last a lifetime. So, thank you to Mr. Sturdivan
030and Mr. Schaefer for the years of service here at ISD 548. Summer projects uh and for this coming school year, uh student staff handbook updates they're working on. uh finalizing the master schedule, staff development topics, uh developing an updated cell phone policy and collection procedure, and support Mr. Kosen in his new role. So, there's the high school report. Thank you. So, we have a new student school board representative. Would you like to introduce yourself to the board? Yeah. Um, hi everyone. My name is Mohammed and I'm upcoming new year at welcome aboard. Welcome. We didn't want to task you with a report quite yet. Okay. All right. Run is very involved in activities. Uh works hard, great attitude, um has a lot of friends, very involved with not only activities but a lot of different
031groups. So she'll bring a lot of good energy and want to thank you for being a member of the student school party. Appreciate you. Okay, Mr. Martinez, you want to present again? Yes. Here we go. Just want to add to uh the uh new role as assistant coach of the U12 soccer team. So, thanks for helping me, coach. All right, I'm going to try to um speed a lot of the reporting up just uh for the uh concept of time. Um since we got a lot to go through, but primarily uh we have our treasurer's report here. We have two consolidated months into one. Um I'll go very briefly here, but I will entertain any questions. Um again this is our budget to actual comparison. This is for the month of May. Um gives us
032a a a view uh from where we are from uh our uh approved budget to where we are in terms of revenue and expenditures. Um I added a new column for you guys a couple months ago just to kind of give you guys a a comparison value of where we were in the past to where we are this year. Uh so our budget uh was approved for $17 million. As of May 31st, we have recouped $15 million. Um that includes the second half our levy that came in uh in May. Uh for comparison wise, last year at the end of May, we were at 92% of collected revenue. This year we are at 89%. So, a little bit behind, but we're still on marker to uh get to our our targeted revenue. In terms of
033expenditures, we uh approve a budget of $16 million, $6.8 million in expenditures and so far we have about $14 million in recognized expenditures. Uh last year we were at 89%. Uh uh this year we were we are at 85%. Okay. uh we have one last month of our operating budget cycle which is the month of June. Uh so this number will go up dramatically and the reason why it will go up dramatically is because we go through a period called payoffs. Um and what we mean by payoffs is we pay our employees until August 31st but we have to recognize those expenditures in our fiscal year. So we bring them back to uh June 30th. Okay. So you will see that number go up significantly. Um any questions on our budget to actual before I
034move on to the second page. Okay, let's move on to the second page please. Uh in the second page we have our uh uh um uh the budget to actual for the month of April. Um um but again like I said I'm not going to spend much time here because these numbers are out by now are outdated. Just kind of giving you a synopsis that uh we were at 66% versus 70 and 78% versus 83%. So uh let's move on to the other page. Ann uh in terms of our cash flow um again cash flow this particular report gives you money come in money gone out. Okay. Uh it really measures the efficiency on how we manage our our cash on hand. We started our investment account with $4.5 million of which we received uh
035$2.7 million in revenues. Uh we withdrew 508,000 from our investment account, ending our investments at 6.8 million uh cash on hand in our checking account. We started with 120,000. We received $1.7 million uh into our uh account. Uh total accounts payable, total bills for the month of May were uh just a little over 700,000. Total payroll was 418. Uh adjustments were 308. And I'll go into adjustments here in a little bit. Uh for total cash on hand for uh 368,000 in our checking account. Total cash on hand investments plus checking account were just a little over $7 million. uh big rocks that happened in uh the month of May was the second part of our levy. So second part of our levy comes in uh um and that is uh what we approve the previous
036um the previous September. Okay. Um, we received the levy dollars into our checking account and then what I did was I transferred it over to our investment accounts. Why to capitalize more on dividends and interest? Okay. Uh, questions on any of the cash flow statements. Okay, perfect. Then we'll move on to the next page. Uh and again this is just the CA clash flow statement for uh the month of April. Uh just giving you guys uh again a synopsis that we ended our investment account with $4.5 million, $120,000 in our checking account for uh $4.6 million total cash on hand. You see from April to May a significant increase in dollars and that has to do with the levy that we received. Okay. Questions in April. All right. We'll move on to the next page.
037Okay. Uh between now and between now and September, you're going to see lots of journal entries. Uh and that has to do with our bulk cleanup. So, we just recently finished a food service audit. So, with the food service audit, again, the uh USDA and uh state of Minnesota come and they audit our food service. Uh they go through everything from operations to uh to dollars received, dollars gone out. Um they come on site. Uh they they uh make sure that we're operating everything in terms of uh serving students, the amount of uh uh food we're serving students, the quality of food. I mean, they go through everything. Uh but essentially at the end, we also have a fiscal piece where they go through our books and they go, "Oh, you know what? you didn't
038particularly classif uh uh qualify for the grant or you need to do this. So the first uh the first journal entries that you see here is our auditor saying oh you know what uh this particular expenditure didn't meet the uh fruit and veggie grant so you need to move it out of there. Uh the second one same thing it was oh we found some expenditures that don't classify for this particular grant so we got to move them out of there. Um and then if you scroll down Yep. Uh and same thing here. Uh it was uh some expenditures for labor cost uh that didn't meet a specific grant that they asked us to move out. Uh and then this is the levy transfer from our checking account to our investment account um just to capitalize
039on that. Um so now that the the special session for um uh for our education bill is now uh has been uh signed into law. Uh you're going to start to see a lot of the cleanups. Uh a lot of the work that we do start getting ready for our audit engagement. Uh the last two months I'm not going to spend any time on it, but it's pract practically two months worth of payables that go through all of our uh checking accounts. Okay. Any questions regarding the treasur's report for two months? Okay. Um, in today's meeting, uh, you guys get to approve the fiscal budget for fiscal year 26. Um, I hope you guys had a chance to read through it. Uh, we put a lot of work through it. It's about six months worth
040of work. Uh, uh, gives you guys a bird's eye view of everything that, uh, administratively and board we are working towards. uh and how do we uh how do we very responsibly budget our dollars? Uh so if we go down down the page, uh this is just introducing our uh district official. So thank you for your service. Um we'll keep going. Uh this is just introducing to you guys the administrative staff. Uh we do have one change. Um you'll see that our dean of students and activities director is now being introduced into our executive summary for budget proposal. Uh we'll keep going. Uh this is our uh um strategic plan that is currently in place for the school district. So I'm just taking it and giving you guys that we budget based on meeting all
041of this that's within our strategic plan. So we'll keep going. Okay. Still part of our strategic plan. Okay, perfect. Uh this is just Mr. Corp uh uh giving the districtwide uh very good narrative of what his vision is. Um it was also published in the voice which is our school newspaper. So pretty good edition. It's right behind there. If you guys haven't read it, I would say take one today. A lot of work that goes into it. Uh we'll keep going down. Uh perfect. So, uh, this year I introduced a little bit of a narrative to give you guys an idea on how to read the budget. Uh, gives you just a quick summary of which of which of our funds is, what it is, so it helps you read the budget. If you have
042any questions from the public that wants you to go into detail of things, you can go ahead and show him this document or you may so then answer the question. Okay, we'll keep going down. Okay. Um, this year I introduced this new concept which is expenditures by program. Um, and and I'll go into detail on the last few pages of what it is. So um in the finance committee I share with them the complexity of uh the uh the budgeting process and our accounting uh because we have to account for many different folks with many different regulations. Um and we and then we have significant amount of categories. Uh when we look at our budget, we look at the high level. When we look at expenditures by program, we're able to give you guys a
043different view of the budget, but identifying how we allocate those particular dollars. And I'll go into uh what it looks like. Uh this gives you again a a quick narrative of which each category by program is. So if you have more questions on it, you can go ahead and go into this narrative. Uh and then we'll go to the second page of this. And then again, because we have so many different ways that we can see our budget, you can see it from a department uh from a department standpoint or from an object standpoint. And I'll go into the differences here a little bit, but the main thing for us today is to approve an operating budget for fiscal year 26. Um, when you look at the budget narrative, it'll tell you that there's three
044years that we account for, right? How we ended last year, which is audited actual financials, how we're going to project we're going to end this year, and how we're going to estimate that we're going to uh end the following year. So, with that said, our general fund, which is our main operating uh fund, currently has $3.2 million in reserves. We are hoping to uh collect $12.6 million in revenue of which we're going to budget expenditures of 12.65 ending with reserves of 3,242,000. So, we're still in that sweet spot that our revenue is higher than our expenditures, which is very good. Our food service fund, um you can see how it's going to uh uh go here. you're going to see a slight decline and that decline has to do with meals being reimbursed uh and
045the rate of which we uh what we are being reimbursed. So in the current legislative bill that you guys saw that just uh went into uh went into law the free universal meal program that was introduced a couple years ago still going to offer students uh free meals. However, the reimbursement rate has gone down and I'll go into more detail on some of those impacts that are going to be. Um, the USDA hopefully will try to cover the difference, but that was signed into law. Great program to have, but the rate of reimbursement is going down. Okay. Uh, community service. Community service uh uh serves our greater community. everything from ECF uh which are early childhood classes uh to summer wreck uh uh to many other uh items uh uh you can see this particular
046fund being very fiscally managed going from $148 to $151,000. Uh construction we ended the last last year we had $62,000 in reserve uh which we knew we were going to uh uh have a residual value. This was from 3 years ago when we did the parking lots over at Chanty Martin and then we used the residual dollars to help cover the development um of the uh entryway here in the front. We no longer have any constructions uh so eventually this will sunset uh until we have another construction project. Of course uh our debt service uh think about it like our mortgage. So that when we introduce any type of public debt, we have to pay it back. Uh here is the amount of of of reserves that we have, $183,000. We're expected to receive 2.2
047million of which we're going to pay just a little over $2 million. And you're going to see the reserve uh particularly uh uh grow. And the reason why it grows is because the state pays us at 105% of our actual debt payment. Um and they do that because we have to pay many other fiscal concepts of it. We have to pay the people that manage our debt every single year in addition to um um any additional uh uh debt service uh fees that we might incur throughout the year. Um trust fund is our scholarship fund. So you can see our scholarship fund uh from uh last year has dramatically uh grown uh which is phenomenal job to uh Mrs. Le and Mrs. Jeneski who have really really pathway to uh engage with the community so
048we can get more scholarships. And thank you to all the donors. Um as you guys saw on the news uh um on our newspaper just a little little over $90,000 were awarded into students. That is phenomenal to to to to have in our school district our size. Uh student activities. Uh this is the student activities from all of our uh um all of our fundraising accounts, all of our sports accounts that uh um uh coaches and and uh coaches and uh uh um and advisors couldn't think of the word. um and adviserss go out and fund raise for specific things for their student activities. Okay, so total operating budget, this includes all of our funds, all of our inner uh inner district funds. Uh we currently set at $4.4 million. We are set to have
049$16 million in total revenue, $60 million in uh expenditures, leaving us with $4.6 million um in reserves. So, uh, pretty good place to be on. I'm going to stop here before I go into another bird's eye view on slicing our budget into different perspective and explaining to you guys what it means, how to read it. So, questions regarding our proposed operating budget. I don't hear any. Okay. Uh, let's go down a page. Okay, perfect. So, in this budget narrative, again, I go through everything that we do from an administrative point down to uh uh down to legislation in our finance committee. So, we met with our finance committee in March uh to talk about all the different pieces that we were going to include in our um operating budget. Our budget starts as early as
050September, you guys, and it starts with the process of our levy. So, in a couple months, you're going to hear me back up here and we're going to talk about the amount of dollars we're going to levy for. That is the first step of our budget. Uh, Mr. Corfish share with you guys practically our calendar agenda of what we do every month. And in that month, you see all the pieces that we work into. So, we start really talking with our staff as early as December. We start engaging our principles. What are you going to need? Meet with your leadership teams. Meet with your PLC's. meet with your teachers, bring that information back to us so then we can cuss it and then we can put it into our operating budget. And we go through
051that again for about 3, four, five months. We present to the finance committee. We get the uh finance committee recommendation which this budget does have. Then we sat in our desk and we monitor any legislative changes. Um and as you guys know, this particular session was was a tough one and it's only going to get tougher. And I mean that in the most sensible way that although we receive a little bit of an increase in funding, it does come with a big $420 million uh um budget reduction into public education in fiscal year 28 and 27. So the next next four years are going to be very tough when it comes to public education funding. Okay. uh with the current bianium budget. So fiscal year 26 and 27 um they're saying oh great great progress
052great things in some areas but the state as a whole is projected again uh was projected to be into a little over a2 billion deficit for fiscal year 28 and 27. So that is why they're looking into all the public sectors so they can try to uh the state balance their budget. Um here are some of the things that uh will impact us right. Um again uh the first bullet points talks about the funding formula increase the allocations of uh the allocation into public education. Uh but just do know that the devil's in the details. Uh there's going to be again $420 million in reductions in fiscal year 28 uh 28 and 29. Um we fought hard to try to get the funding formula to actually be tied to true inflation. So the current statute
053in place says that uh the funding formula is going to be tied to inflation but it gets capped at three. And that happened this particular uh the second year in our uh in our uh bianium where inflation was was at about uh 3.2 but the state was like well it's over three so we're only going to pay you three. Uh we lobbyed hard to try to get that to actually match the true inflation. Didn't pass. Um and again why because the state wants to balance their budget and where do they look at? to help us look into public education. Um, other things that are going to impact us, of course, is going to be special education. Uh, there's going to be a reduction in uh the reimbursement for transportation. Uh, they also established a blue
054ribbon cutting uh commission that's going to look at trying to save us $215 million in special education savings. This is a big one to worry about. Um, we don't know what it means. uh no one has really got into the details of what it means. Uh MDE doesn't know much about it. They just know that they've been tasked to try to figure out some 250,000 savings into that. Um and again, this comes from the narrative going all the way from the current administration coming down, right? Because we know that special education is under the federal protection. Uh some of that funding is being cut, which means the state then has less revenue to try to provide for special education. So what it means, I don't know you guys. I one of the areas that are
055going to be impacted in two years. We're going to start to find out. Uh library and student aid that was introduced a couple years ago is being reduced. Um again, it was it was a lowhanging fruit that legislators were like, well, you know, let's just cut this um uh other pieces uh um that are big for us. Um let's go down. I'm trying to look for it. Let's go down a page M. Uh, perfect. So, uh, compensatory was huge for us. So, um, uh, this was the one that really had me very stressed and worried. Uh, compensatory, uh, um, we receive about $1.3 million in revenue. Uh the way we get funded for it is all of our uh early excuse me all of our English learning students in addition to free and reduced students
056help us generate dollars for this. Um two years ago uh legislation that was introduced uh um took out of the equation lunch applications. Right? So in order for us to classify a student into a free and reduced category is by two ways. One which is a direct certified file from the county because that family is receiving some type of conne by the family applying for educational benefits through the lunch application. That's how we qualify a student into that free and reduced category which then generates funding for us. Well, somehow legislators thought that it would be a good idea to tape that piece because they said, "Well, the direct certified files should already give you that information." Well, no, because there's still so many families that don't receive benefits and are still within that margin to
057uh to be uh into the free and reduced category. So they took out the paper application out of the equation which netted us about $320,000 in less revenue and comp compensatory. So I was really stressing out. Um what was passed in this legislation was for uh uh fiscal year 26 they're going to approve a one-time allocation of 15 million that hopefully will help cover that deficit. But they didn't fix the problem. They just said, "Oh, we're going to introduce a task force as well to figure out how we can make this funding program better, but they're only going to allocate $110,000 to this tax for supposed to fix this tremendous tremendous issue that we have for compensatory funding." So, I don't know how that's going to work. So um we take everything that was signed
058into law which again was very delayed. They should have ended in May 19th but we know that neither side of the aisle was was meeting and uh planning nice. So it got pushed into special sessions and it got approved in June 10th. Today, Kathy Ericson, the finance director for uh uh MDE, is actually going to make her rounds to try to put all this new legislation into action. So, uh today, Mr. Corp and I go to Lakes Country Service Co-op um to hear about all the new funding pieces that Kathy Ericson is going to introduce to us. Uh which means, and I'm going to plant the seed, that later in the year, we will have a revised budget. uh because all the new calculations or I should say some of the very detailed calculations that
059the new legislative uh bienium bill has um hasn't been accounted for at the state level yet. We have the bill in paper, we just don't have the fiscal impact yet and we don't have what that means for us as of yet. Okay. Um then we'll keep going down. I'm not going to go through the 16 pages, you guys. I'm just going to give you guys some uh some some pieces for you guys to entertain. Uh again, we had a uh um analysis done by teamworks regarding our enrollment. Uh uh you can see our enrollment trend. Uh one thing to note though is I have ADMs versus actual headcount. So um uh please note the difference but again you can see um our trajectory and path and what we where we are trending which was then
060uh uh validated by teamworks in terms of uh the primary reason for our student enrollment as of the last couple of years has to do with bird rates in the area. So if you read the report that is a primary cause of it. Okay, we'll keep going down. Uh, here is the budget. Again, just reintroducing it. Now, we go into what I introduced earlier in the budget narrative, telling you guys how to read this, right? So, here's our in total, our total operating budget, right? $16 million. When we look at program, I'm giving you guys the same expenditures, but now I'm telling you guys, oh, look, out of the $16 million that we're budgeting for, there is here's how we're allocating by program. Okay, we'll keep going down. Okay, some of you guys are visual.
061So, here is how we allocate on a pie chart. Percentage per uh uh this is revenue. Uh down here is expenditures. You can see how we uh budget. Majority of our expenditure goes into regular instruction which is we are an educational uh institution. All the funding has to go there. Okay, we'll keep going down. Okay, same budget, different lens. Here's how much we're going to uh put into uh salaries and wages, uh purchase services, debt services, employee benefits, so on and so forth. Okay, if we go down p uh uh over 50% of our over 50% of of our uh uh budget goes into human capital, salaries and wages, which is what we want, right? We're here to teach. We're here to educate students. Okay, keep going down. uh fund balance again gives you a
062little bit of a synopsis of what it is, what we go through, what's in place, what policies help support this, why we do it, and kind of gives you a narrative of where we're going to be in the next uh two fiscal years with some of those new legislative pieces that were introduced. So, uh you have 16 pages to read on your time off. Um so, as you guys have any questions, uh uh feel free to reach out to Mr. Corp and then we'll get you guys an answer. Um, but I'll entertain any questions right now. Any questions for Rudy? We're good. Okay. A couple of other things that are going to be um in the board agenda we that we need your approval on, of course, is going to be the audit engagement letter
063by A. Bailey. uh believe it or not, we're gonna start the whole process again. So, we start engaging with them. Um our um audit is going to take the first place in September. Um which is very unfortunate because it's a very busy time. We have students coming back. We have teachers coming back. Uh and then we have the added on top of that. So, fun times in September. Um of course, we went through um our treasures report. We went through our LTFM reports that we need your approval on as well. And then the most important thing is our uh proposed operating budget. So, a couple of things for you guys to entertain today. Um, and like I said, we're always open if you guys have any questions. Uh, please uh email us and we'll get
064you guys the answer. Thank you for your time. I do have one question. Uh, so for the motion for the proposed budget, um, how should we word that or is there a dollar amount? Uh, no. You can just say approval of the fiscal year 26 proposed budget. Yeah, the one that was proposed. Yes. Thank you. Thanks. Okay, Mr. Core. Okay, a few items here. Uh, first enrollment, we ended the school year with 88 students, which is good. And October 1st enrollment was 809. So, we were one short from October 1st enrollment. uh summer activities update. Uh just you know a lot of activities um being offered here throughout the summertime. A lot of the activities are offered during summer wreck uh from June 2nd to July 10th. Um so we got a couple weeks left.
065So everything's going well. We're very thankful for all the staff that we have that u are putting in a lot of time hours and sweat uh working with our students which is good. Couple items with special ed. Uh co-op up update. Just so you know, this um last meeting was Mrs. Ericson's last meeting, Shannon Ericen's last meeting as the director of special ed. Our new special ed director was there. Alli Ruckman was there. Um so she introduced herself and um we welcomed her and very excited to be working with her. Uh a couple other items with special ed co-op. They're trying to secure mental health staff for their EBD classroom. So, they're hoping to have a plan uh for mental health support for our students uh starting in the fall. Uh just a reminder, I
066talked about the last meeting for special ed co-op. Um our administration uh time for next year has been reduced by.3. So, um special ed director is 1.0 and then we have um two um special ed coordinators that um are less than 1.0. So I think 7 and8 okay um other than that special ed co-op does offer services so do we we do here too we offer ESY for students that qualify that will be in July and August is ESY um here at Pelican Rapid Schools elementary and high school fall workshop update um got a couple things to iron out here for fall workshop u the district workshop. We're working on the afternoon schedule for our support staff. Got a couple uh trainings that we're trying to set up for them. Other than that, um I
067think we're looking pretty good. Just a reminder that we'll have the fall picnic on that Monday the August 25th, the staff picnic. And we'll talk more about that when when uh in August at the school board meeting. Uh 2526 planning our big rocks here coming up. Um it's been very busy. June's been very busy with a lot of meetings, a lot of wrap up with u administration, staff, technology, food service, um those types of meetings. We're hoping to finish up with some of our meet uh meetings for cleanup of the last school year here by mid July. We're also planning for next school year. So, um we also have um negotiations here this summer. Um we start with teacher negotiations and then support staff work with support staff and then administration after that. So it'll
068be a busy few months of negotiations for staff. Um policy committee expected policy committee u members probably late July August. Um so we'll be working our policies updating them. Um next item would be for marketing. We're going to have a marketing um presentation in July. Our marketing team's been working hard the last uh couple months on our summer advertisement and newsletters and brochures, items like that, but we'll present in July to give you more details on that long range plan. Um this past school year, we completed our enrollment analysis. Um, and then this coming school year, we'll be working on a needs assessment and we'll do a work session in the fall to discuss needs assessment, what that would look like, um, and go from there and kind of a timeline with that. So, um,
069we'll do a work session probably, I'm guessing, October, November, hoping to get most of the negotiations completed, um, by midfall. That's kind of our goal with everyone. So, and then we we'll focus on needs assessment starting in the fall agenda items. Um, a few acknowledgements on today's agenda. Um, with resignations. Um, again, thank you to Mr. Sturdivant, um, Mr. Schaefer, uh, Carlos Gutierz resigned from assistant wrestling coach. Thank you to um Carlos for all his work and time. Mr. Nelson um talked about Miss Berg and resignation. We have a few hires. Um looking at custodial, Mr. Steve's talked a little bit about that. Um there's some staff there in custodial. They're only doing a couple days a week. Um so working together, club bikes hires and kitchen staff for the summer and then summer rec
070staff um to hire. So, Mr. Martinez talked about uh audit engagement letter um approving uh accepting donations. That's the monthly that we do for um groups, people that have donated money to the district or groups schoolboard meeting schedule for the upcoming um school year. What we tried to do is looked at um all our dates and then we looked at the activities schedule um from all our activities and from including scholarship night and things like that. So what we did is try to make sure that the dates worked for everyone that have kids involved in different activities here on the school board. So that's what we started with and then the summertime would be in the morning and then starting September we'd go back to the evening. believe that's all I have any any questions.
071Okay, hear any questions? Thank you. We are going to move on to consent items. Approve board meeting minutes. May 19th, 2025 regular schoolboard meeting. B, financial claims, April and May bills. C, treasures report for April and May. D, personnel. Acknowledge the resignation of Hayden Sturdivan as social studies teacher at the high school. Acknowledge the resignation as Hayden Stur Sturdiv as assistant football coach high school. Acknowledge the regul the resignation as Car of Carlos Gutierrez as assistant wrestling coach at high school. Acknowledge the resignation of Ana Her as special education pair professional at the elementary. Acknowledge resignation of Cody Schaefer as English teacher at the high school. Acknowledge the resignation of Cody Schaefer as head boys track coach at the high school. And acknowledge resignation of Cody Schaeer as assistant girls basketball coach at the high
072school. Approve the hire of the following summer staff. We have club bites, Zay Arrow, Marina Davis, Lisa Epard, Maria Pablano, Antonio Matton, Colin Holland, Grady Larson. Custodial we have Marty Carlson, Tara Fitz Simmons, Todd Husby, Jenna Nava Pixley, Haley Pix Peasley, Dave Scholstead, Mitch Fdor, Connie Wfall, and Carson Weers. Kitchen we have Lizzy Brenule, Tina Jensen, and Ashley Olsen. Summer wreck. We have Zale Za Arrow, Ian Bachan, Chelsea Blakeway, Carla Green, David Dwey, Brendan Hansen, Emma Hansen, Hunter Hansen, Amber Hineer, Drew Holt, Desmond Lear, Yan Eric Lindberg, Parker Lip, Michaela Mowen, Anna Nelson, Naomi Peter, Phoebe, Phoebe, Peter, Leia Thomas, Byron Thomas, Madison Beager and Tristan W. Hopefully I didn't butcher those and the audit engagement letter with I 2024 2022. So do we have a motion for the consent items? Make that motion by
073Andrew. Second it. Second by Brenda. Any discussion? Hear no discussion. All those in favor of approving the consent item signify by saying I. I. We got to stop. We got to do this as a roll call. I'm sorry. Sorry, Molly. So, this is a roll call vote. So, uh, all those in favor of approving the consent items signify by saying I. And this will be by roll call. So, start with Andrew. Hi. Brenda. I. Molly. Hi. I'm an I. Hi. Stacy. Craig. Hi. Hi. Consent items carry. Business items. Item A, approve the resolution accepting donations. Do we have a motion in a second for that? And then I'll read the resolution. I'll move to approve the resolution accepting donations. Okay. I'll second. Motion by Greg, second by Stacy. So, this is a resolution resolution accepting
074donations. Whereas every such acceptance shall be by resolution of the governing board adopted by twothirds majority of its members expressing such terms in full. Therefore, be it resolved that the school board of Pelican Rapids public schools ISD 548 gratefully accept the following donations as identified below. So we have Laura Clem. She uh donated $100 to student accounts and also another $100 to the Virgin Boutique. Kathy Bergen, $20 to the high school scholarship fund in memory of Tammy Roststead. Lisa Peznik, $20 high school scholarship fund in memory of Paul Sturdivan and MVM Contracting, $1,000 to the PRHS softball team. So, this is a resolution. So, uh, Andrew, how do you resolve? Yes. Brenda? Yes. Molly? Yes. Yes. Stacy? Yes. Greg. Yes. Resolution carries. B. Approve the 27 fiscal year long-term facilities maintenance plan. And Mr. Martinez,
075do we need to order this one any? We don't. Just the LTFM plan. That's all we need. Okay. Do we have a motion? I'll make a motion to approve the 2027 fiscal year long-term facilities maintenance plan. Okay. Motion by Randa. We have a second. Second by Andrew. Okay. Any discussion? Okay. Hearing no discussion. All those in favor of approving the motion signify by saying I. This will be by roll call. So Andrew I. Brenda I. Molly I I Stacy I. Greg I. Those post same carries. Approve item C. approve the 202526 fiscal year proposed budget. Do we have a motion? I will make the motion to approve the 25 2025 2026 fiscal uh year proposed budget. Motion by Andrew. Do we have a second? I'll second. Second by Stacy. Any discussion on the proposed budget?
076Okay, hearing no discussion. This be roll call again. All those in favor of approving the proposed budget signify by saying I. And this will be a roll call. So Andrew, hi. Brenda, I. Molly, I. Stacy, hi. Greg, hi. Carries. Item D, approve the 2025 schoolboard meeting schedule. Do we? I'll make a motion to approve the 2025 2026 school board meeting schedule. Motion by Brenda. Do we have a second? Second. Second. Great. Any discussion on how those dates look for the board. That's kind of what we've done in the past, right? So, okay. Any discussion? Hearing no discussion. All those in favor of approving the meeting schedule signify by saying I. Let's be by roll call. So Andrew hi. Brenda I. Molly I. I'm an I. Stacy. Hi. And Greg. Hi. Carries. That concludes our business
077items. So we have upcoming meetings. So we have the July meeting and that'll be July 23rd. July 23rd 7 a.m. and the August meeting is August 20th. 20th at 7 a.m. We have a motion to adjurnn. That motion motion by Andrew. You have a second by Stacy. Any discussion? This will be a roll call again. All those in favor of journey signify by saying I. Greg I. Stacy I I Brenda. Hi Andrew. Hi. We're dirt. Thanks everybody. Frenchie.