001Well, it's not literally just [Music] Okay. Yeah, it is. Hi, could you please sign in? Thank you, boys. You had me. Okay, it's 7:00. I now call this board meeting order. Please rise for the pledge of allegiance. I aliance to the flag of the United States of America and to the republic for it stands one nation under God indivisible with liberty and justice for all. Miss Cook, will you please take role? Everyone is present. Okay. Thank you. Is there any new business to bring before the board? Okay. Hearing none, I would seek a motion for approval of the agenda. Second. I have a motion by Mr. Welch and a second by Mr. Guys, all those in favor signify by saying I. I. I. Post. Same sign. Motion carries. 70. Next item on the agenda is
002uh Mr. Hughes is here to present our state participant recognition. Spring sports, right? Yep. Spring sports. Okay. Hi. It's my pleasure and uh privilege to recognize our various activities that participated in a state tournament this spring. Uh we're going to start with uh boys golf. Of course, some people can't make it today. Um busy time of year, of course. Um in fact, our golfer was in a golf tournament today, so he is not around to to help out. But the state golf tournament was held at Ridges of St. Creek in Jordan on June 10th and 11th. And Austin Walker finished 58th place with a two-day total of 161. Finished with 78 first day and then a 83 day two. Dave Dave, coach Dave Hanzi said golfed well. It's a short game. Bet him down at
003a couple times throughout the day. So, uh, congratulations to Austin and turn. I know they have that they have that course set up pretty tough, too. It was hard. Yeah. Uh, next is Boys and Girls uh, track. I know Coach Ho is in England, so he's not able to join us tonight. And then coach Meyer must have been busy as well. But we had 23 athletes compete in 14 different events at the state meet um on Wednesday, June 11th and 12th at St. Michael Albertville. Came home with various medal winners. Our uh 200 meter in the girls 200 meter dash. Avery Nelson placed fifth in the girls high jump. Audrey Shindelar placed ninth and they do play they metal nine places. Um, girls discus, we came home with the state champion, Ella Thibo. Uh, in
004that same event, Danica Shindelar placed fifth. Um, the boys 4x2 meter relay was eighth place. Uh, that's Luke Eastman, Dylan Scandlin, Sawyer Wood, and Carson Meyer. Our boys 4x8 meter relay was eighth place. That's Josh Langf, Asher Langf, Nolan Shots, and Jack Owen. Where's Nolan? Come on up. Yay, Nolan. Come on up. The boy shot put uh Ridge Hats placed seventh in the same event. Tommy Laughman placed ninth and the two boys also placed in the discus. Ridge placed third with uh Tommy placing seventh. So congratulations uh Nolan on your wonderful achievements this season and at the state tournaments as well. I don't know if you have any questions or what you haven't anything to say, Nolan, but did you set the new school record? Well, hey, that's awesome. Okay, he's done. Many words. Um,
005okay, we'll move on to baseball tonight. We do have Coach Schmidz and two of his captains with us in Luke Heel and Jace Cl. So, guys, come on up. So, our baseball team competed in the state tournament for the first time in school history on June 11th and 12th, and that was in Jordan and Chaska. Uh, the team event uh lost their opening round game to the eventual runnerup, Mano East, and then lost their second game to Grand Rapids the next day, 10 to zero. While the results didn't go in the favor of these guys here, um, they did represent our community extremely well. So, congratulations, guys. Have a wonderful season. [Applause] I I don't know much to say other than the fact that we had a a fun year. Um you know, I think
006the guys learned that it's not necessarily how you start. We started out the season 0 and six. Um you know, and then eventually we ended up uh making the state. We played well. We met at the right time and it goes to the dedication of um we had a great group of senior leaders. Uh we don't have he said captains. I'm not going to play. We don't have captains cuz anyone can lead and these two are were great leaders for our team as well as the other four seniors and um because of their buy in they were able to you know keep everyone together through the tough times and eventually play ball with the best when it matters. So congratulations. Wait, did someone get a home run? Their first home run. It's so important. That
007was great. Thanks guys. And finally, we'll recognize Play Clay Target. So, Clay Target um competed really two week two weeks in a row. Um they competed in this the class 7A state with 25 teams um and the result um were in three different categories. So, in trap, they finished first in the 7A with a score of 490 out of 500. Um, and you'll find later that those top 40 teams then competed here um just the other day on the 20th. Um, and we'll figure out we'll we'll see how that turned out there. Top performers in in the trap uh category were Kaden Nagel with 100 out of 100. Uh Hunter Heisel had 99 out of 100. Jackson Huitt, Ty Brown, and Braden Steer finished at 97 out of 100. And then the novice uh they
008took second place overall as well. In the five stand uh results they placed first uh with a 392 out of 500. Top performance again Jackson Hwitt 80 out of 100. Ethan Nagel Logan Logan Johnson or Jackson sorry Hunter Heisel 79 out of 100 and Owen Cycle was 75 out of 100. And finally, the Sporting Clay results again finished first with a score of 415 out of 500. That's out of 20 teams. The top performers were Hunter Heisel 92, Ethan Nagel at 83, Kaden Nagel 100, I'm sorry, 81, Logan Jackson 80, and Owens at 79. And the results of the June 20th meet um at the state clay target uh competition. The Tigers finished fourth place out of the 39 teams that ended up going um which is an outstanding feat. They lost South Park Rapids,
009Springrove, Lakeville South, um just to name a few there. But um congratulations to our trap um our our clay target participants that did a wonderful job at the tournaments. [Applause] And that's what we have for our state recognitions. Thank you. Thank you. That's awesome. Steve, it was great. It was a great spring. It sure was. Thank you for everything you guys have done. Thank you. or All right. Next item on the agenda would be consent agenda item 7 A through D. Is there any item any board member would like removed and discussed separately? Okay. Hearing none, I would seek a motion. So move. Second. I have a motion by Mr. Ravenhor and a second by Miss Kefir. All those in favor signify by saying I. I. Oppos same sign. Motion carries 70. Next item on
010the agenda is item eight. Consider and approve the retirement of Superintendent Belinda Sulers effective on June 30th, 2026. And the letter was attached which we appreciate. But is there just nothing anything just have to consider and approve? I mean, I would like to just say that I appreciate you giving us notice and um helping us get the ball rolling on next steps. The next steps, guidance, I guess, and then the board takes off. So, okay. Is there any other discussion or we can approve? I'll make the motion to approve uh Miss Suler's retirement on June 30th, 2026. I have a motion by Mr. Welch and a second by Mr. Lman. All those in favor signify by saying I. I post same sign. Motion carries. 70. Congrats. Yeah, congrats. Just one more year. Don't take my
011vote as a I want you to leave. Yeah. No. Okay. All right. Um, hi student achievement. Tonight we don't have anything. So, we'll skip down to item 10, a safe, welcoming learning environment. And we have several handbook revisions under item A. They're all together. These were all attached for you to look at. Is there any discussion questions? Those were just the changes, right? Yeah. The rest of the handbook would be the same, but attaching the entire volume of hand would be overwhelming. So, what they submitted were just any redactions, revisions, additions. When do they get finalized? I I'll admit I looked through them, but it was brief. um going through them again maybe a little bit more thoroughly when when would that so your approval tonight will give them the signal to start to make
012the changes um we hoping to get everything uploaded to the web pages by the first so if you have questions you can certainly reach out to the administrators that put those together that was a good question thank you if there is any other discussion I would seek a motion Second. I have a motion by Mr. G and a second by Mr. Ravenhorse. All those in favor signify by saying I. I. I. Same sign. Motion carries 70. Next item on the agenda is aim three, effective and efficient operations. First is item A, consider and approve the F food service contract with Taher. And this is a yearly decision, right? Um, the next time that this comes forward, you'll be going off the bid. This is the last year of the renewal. Are there any questions? Okay,
013I seek a motion. Second. There's a motion by Miss Kefir and a second by Mr. Gist. All those in favor signify by saying I. I. I. Same sign. Motion carries. 70. Next item on the agenda would be to consider and approve the transfer of ownership and contract from Grizz Bus Company to Schmidy and Suns Transportation Company and um this was attached and um we were all informed of the sale or sale I should say. Before we vote, um, we would like Katherine. Katherine and Bill are here from Schmidian Sons. And Bill has voted for Katherine to come up and speak. Um, good evening. Thank you, chair, and board members. My name is Katherine Forboard. Um, I'm here representing Chimian Sons. Uh, we are a employee owned company that's based here in Minnesota. Um we um
014are founded uh our operation is founded in Lakeville, Minnesota, so not too far away. Um but we um are very, you know, proud to hopefully move forward with this opportunity. Um uh we Bill and myself have had the pleasure of knowing the Grisoms um for for quite a while now through the industry. Um and so um we're really excited for this venture and to be able to work amongst all of you and um here to answer any questions um that you may have. But um we really really appreciate the opportunity to speak with you today and um we look forward to a long partnership here and um serving your community. So anybody have any questions for Catherine? We've met a couple of times and so administratively we're very comfortable with this moving forward and want
015to congratulate Kurt and Connie on many many years of service to our community and our kids. And um how many years? 41. Wow. So they'll still be they'll still be connected to the transportation for our kids. Um but the the ownership of the company transportation sons. So if you have questions, this would be a great opportunity for you to ask them Catherine face to face. So, I'm assuming for Connie and Brian are still going to do the day-to-day management. Yes. Yep. The the goal is to really keep everything, you know, intact as it is. Um, but um, you know, allow Kurt Connie the opportunity to, you know, you think he works. Every once in a while I do. Well, we're excited to welcome you to Stoville as a board and as a community. And I
016know that there's going to be a press release and a letter to the parents coming out with more info later this summer. But, um, we're excited to welcome you and for the remainder of the contract and hopefully many years to come. Thank you. Um after we vote if we could just get a picture since Jen's not here. Jen's not here. She's on vacation. Bill and Kurt and Connie get a picture. I mean, it's a it's a pretty big deal. I think that you know with Kurt and Connie doing this for so long. Yeah. We'll want to make sure we take a picture after we vote here. Okay. Thank you. Yeah. All right. So, I would uh seek a motion. Absolutely. Second. Go ahead. I have a motion by Mr. G and a second by Mr.
017Ravenhurst. All those in favor signify by saying I. I. Closing sign. Motion carries. 70. You can grab a picture in case you want to scoot out or stay for the rest of the meeting. Whatever you want. Where are we at? Should be right in front of him. Yeah. Right in front of the monitor. No stories. I thought you were going to start dancing. Well, they had a big wedding this weekend. That's right. 4 o'clock on Saturday. Oh, lovely. Thank you. Congratulations. Welcome. Thank you for coming. Congratulations. And thank you Phil and Connie for all the decades, right? Thank you so much. We really have appreciate it. We love Stealth. We actually came here when we were 27. So you kind of put how old we are years of service. Well, I'm not going to say
018anything, but I graduated with your youngest, so I thank you very much. do know that we have found a great company to work to fit in with our drivers. That's going to be a just a sweet deal for our drivers also. So, thank you so much. Well, if you guys are okay with it, I'm no doubt that it's going to be great. So, yeah. Well, I thought you're going to say you want to drive. Yeah, we need some more driving back. We need Aaron back. Come on. Thank you for coming. Thank you very much. Appreciate it. Nice to meet you. Not changing the color of the buses. All right, we'll move on to um C. Consider and adopt a resolution for the designation of the identified official and authority for education. Identified official. Yeah. Identified
019official with authority for education identity access management as Belinda Sers, superintendent of schools. That's a tongue twister. This is a yearly thing as well. It's a yearly thing. So what it does is um anybody who needs access to secure reports at the MD website has to come through me and I provide them access or let them know that that's not information that they would need to. So you're just designating me as the gatekeeper. Any questions? Okay. Thank you. I would seek a motion. Second. I have a motion by Mr. Welch and a second by Mr. Ravenhorse. And this is a resolution. So, Miss Dook, hi. Mr. Gist. Hi, Miss Kefir. Hi, Mr. Lowman. Hi, Mr. Ravenhor. Hi, Mr. Welch. Hi. I for myself. Resolution carries seven with zero nay. Okay, next item on the agenda
020is D proposed budget for 2026 and Mr. Schroers here to present that to um Miss Silver. Does D and E go together then? So he'll present and then he is the vote. Okay. Sorry, I just making sure I read that right. Okay, Daniel just advance. Yep. We'll uh stay on this one for the majority of it. [Music] do that. Okay. So, what we need to do tonight is we need to go through and adopt the preliminary budget for 256 school year. Um, in your packets you had this summary page, then the detailed information behind it, and then a little summary at the end of the the items that had the most significant changes, whether they be um additions or or reductions at that point in time. This factors in the reductions that took place um
021back in the spring as we went through that process and worked into that. It also has a number of the legislative changes that took place, too. Not all of them are in here. Um, some of that information is still yet to come out to us. Um, has not released anything really yet as far as detailed information on the impacts of some of those decisions that were made um during the special session, but uh what we do feel took place and what we do know at this time is is being budgeted in this at this time. um on the unassigned fund balance in the top. So on the July 1st, 2025 pounds, those are all of our estimated numbers based off our FY25 budget. We'll finalize those um in August, September as we go through the
022audit process. So and then we got the revenues, the expenditures. The transfers are dealing with some of our restricted accounts and that we're going to utilize those which will then offset some of the expense that are unassigned. And that leads to our projected ending balance at the end of 2026. And then we have a net increase or decrease on the far right side. So uh on our honest sign the revenues we're looking at 23,630,000 and expenditures of 24,185 with about 419,000 in transfers between our restricted accounts. That leaves us with a balance of 2,370,248 which is about 8.61% um of our fund balance. So board fund balance policy is to is to maintain or be above the 8%. So this gets us uh very close to the bottom of that fund balance policy. It's a
023net decrease the deficit in our unassignment for the year of $135,291. Uh the next area deals with most restricted accounts. So uh a couple of these we'll touch on a little later um as I have a more formal presentation for those items. Uh operating capital and out of them will be a little bit later here in the meeting. But uh one of the bigger ones that we had to deal with uh partway down was basic skills or compensatory revenue. So that was a hot topic type situation legislatively this year. um making a change to the way that they calculated that formula. At this point in time, there's a one-year hold harmless that's going to take place. Um so, we factored that in. Um we did receive an email today explaining kind of how that's going
024to work, but they did not attach any runs to that situation to where we can see what the actual impact is at this point. supposed to happen next week sometime, but right now we're staying with 579,472 in basic skills and we utilize all of that each year. So, we'll use that to offset salaries and benefits. Um, library aid was another one that had some more discussion that that was a new thing that came out the last session. They allocated $40,000 to school districts. they have already now slashed that and pulled that back a little bit. So, right now I have 25,000 in there. Again, that's another piece that we don't exactly have the the final amounts on that part yet, but we use that then to just offset some of our costs within our media
025center. Um, say schools generate $36 per student for that. It's about 77,000 in revenue and we have 82,500 expenditures. So, some of the things that we do out of there, our security cameras, our secure entrances, um our cyber security insurance, those types of things all come out of that safe schools bucket. Um so, we're projecting that'll balance there just over 90,000 bucks from that account. Um the teacher comparing redact stuff, that was a one-time uh funding piece there. Um literacy incentive aid. So back up at the top here, we got that and then down here we have literacy aid. So two different things um which tend to confuse us a little bit because there's certain uses for each one each one of those but most of that stuff applies towards read type stuff um hiring
026literacy coaches those types of things. So that's how we utilize those dollars. um an LTFM. I'll talk about uh student support personnel. That's another one right now that supposedly like library aid is being reduced and pulled back, but I haven't seen any runs on that yet. Currently don't have anything that falls into that category as an eligible expense. There was some really restricted areas on how you can use those funds. So, we've carried the 40,000 over uh for the two years now. If they do pull back on that, not going to be significant hit to the district because I'm currently not using it at this point in time. Uh and then the last one, medical assistance. So I do have 80,000 in revenue built in there. A small amount of expenditures with a large balance
027then of 131,270. So that's an area that we're going to going to continue to take a look at to see how we can better utilize that. Um it's restricted really in ways that we can do that. A lot of it's on the special ed side of things, but what we have to be careful is as we reduce our special ed expenditures and use MA dollars that we potentially run into an issue with maintenance of effort type things, how they calculate our special revenue. So, it's a it's not a very clean way to do things. It's extremely complex, but um it's something during the audit then that we look at and try to basically move things around and best utilize our resources as well as we can in that area. But we do have we've had
028some pretty significant high need situations that have qualified for that type of stuff. So our our revenue has taken a pretty good jump and we one of the biggest things is to have somebody that can actually submit that stuff and knows what they're doing. That's half the battle. Um, we have somebody right now that's currently able to do that stuff. So, we're seeing a pretty good amount of set of things. Um, scroll down a little bit here. So, get into our assigned funds now. So, we still have curriculum in there. Uh, starting at the 1.1 1.15 million. I have about 80,375 right now in curriculum built in the budget that we would expend. Um, we have a severance amount of just under 65,000. The levy shortfall, we're bringing 100,000 back in. Um, and then the
029OPED loan repayment, 120,000 come out of there. That leaves us with a balance of 120,000. So, we have one more year before that thing goes away, which feels like it's been around for an eternity. Mhm. Um so total general fund just uh just under 26 and a.5 million in revenue and 27 a.5 million in expenditures. So just over a million dollars deficit as our whole general fund goes. But the majority of that is within our long-term facility maintenance is is half that loan by itself. Um, so that's it for fund one. Any questions on that? Just to clarify your question, the new legislation, you said there's some that's you included in there, some that's still outstanding. Did you So, did you estimate those or are those still to come? So, some of that's estimated just
030based on my best guess. So, some of the stuff that's included in here, and I should talk about that, it's the basic gain formula, the big one. Um, so that increase was 2.75% or $200 per hit. So, it's now went from 7,281 to 7,481. That one's for sure um in that piece. So, that one's built in there. Um, as I mentioned, the school library, that's in there as a reduction. So really the the basic skills is kind of the one that's still hanging out that's the largest that you don't have. But I I have it built in. Have it built in but not uh so we were scheduled initially the game. Right. So what was happening was when they sent out the initial runs based off the governor's proposal how they going to calculate this.
031We had huge swings. um districts were gaining some districts were gaining upwards of almost $3 million. Others were losing that much type of thing. Those were large districts obviously. So, but your a lot of your smaller districts were losing. Um Stewartville would have been a a winner on that side of the thing. So, what we did was we kept it basically at where we were versus budgeting that increase. It's I didn't feel like there was any way that it wasn't going to be a whole harmless situation based off the the huge swings that we were seeing between districts. So, I don't know what it'll mean after this one year of holding harmless. They're putting together a committee which was the same thing they said they were going to do two years ago and they never
032actually accomplish anything. So, I don't know where it's going to go from there. So, so is there anything that is that came through in legislation that we don't have answers for that you didn't at least estimate for? I don't believe so. Is there any sort of but if there is it should not be significant the big pieces have been estimate at this point in time but really they're From a financial standpoint, it wasn't a ton of changes. Obviously, the the big talk was what was going to be taken away versus how much was going to be added because there just wasn't anything to work with there. So, um once that 2.74 2.75% took place, you know, everything else after that was pretty much okay, what are we going to lose going forward and how much
033is that going to be? So I think what's important to note is in the general fund when we made those recommendations in April to align our expenses with our revenues, we didn't know that the legislature was going to look at cut to school budgets, right, and school state aid. We made the assumption we were going to get 2.74 in the first year and 3% in the second year and that was going to be it. But they also reduced budgets for schools in the way of state aid. And so we're underwater 135,000. Our hope was that we would be at 9%. At the end of FY26, now we're going to be at 8.6. So originally, Mr. Guys, you were suggesting we should go more than 800, like closer to a million. If we had done 965,
034we probably would be at 9%. But we did 850. And so it was a total um it came out of left field that they were going to be looking at special ed reductions and library aid and student support personnel aid and the compensatory money being less than what we anticipated. We didn't see that coming. Those were not discussions in the legislature in April. That all came out at the end of May. It was moving. It was moving target. Moving target. Um I'm concerned that 8.6 is a concern. Um there's not a lot between 6. Yeah. And 810. I think that's kind of what me alluding to being that we're sitting with 61 to play with. Is there something outlying that could come in and just wipe that out? Yeah. So, um, we do not want
035to get below eight. That's our policy that we stay at eight and we're going to do everything we can to ensure that, but some of this is out of our control because legislators are making decisions that are impacting our bottom line. What happens when we get then the board is required to make alignments to get us back about eight? So it won't be recommendations at that point. It'd be required. Um it also impacts your ability to borrow. No, no, I'm just speaking out loud like Yep. It impacts your ability to borrow for if you had to bond something later on. Basically what Mr. Ray or Mr. Raven horse is indicating it affects our bond rating like a credit rating. So if um if your policy is to be at 8% and you go below that
036the credit rating for the school district will go down which makes your interest rates go up if you need to borrow money. So a couple things that are that are also have to be taken into account here. Number one, the first euro by any is always the most difficult to figure out. Number one, they don't have to finish their job on time. They still have to do ours on time. So, um that's just my shot politically. Shoot away. So, um that takes place. Uh we also are typically in a situation where we're in contract negotiations with our largest group. So there's an estimate built in here how that shakes out to drive that number. Yeah. Um so there's those types of things that are still really come into play. The second year is a is
037a much much easier situation because typically your funding is pretty well set. Your contract your larger contracts are in place. So you're a little better position to know where you're at. So just some some extra pieces there to easier but predictable a little more. Okay. Um food service fund two. So uh total food service we have about 1.262 million in revenue and just under 1.2 million expenditure. So then balance there is 56,000 uh uh increase of just under 65,000 a year uh community service um within the community ed piece. So this one right here would be the one that was problematic that we have since fixed the tiger time. So about 1.1 million in revenue and just over that 1.1 million in expenditures. Uh an increase in that area of about 30,000 for the year.
038So bringing that balance up to 95,000. Um ECF pretty much um keeping that one up as well. So they start at about 160,000 ending at 186,000. So decrease 26. And then school readiness, the one that's been a an issue is beginning at 118,000 and ending at $193,000 deficit. Um about $75,000 there. So what we'll look at too is still in FY25 is I'll look at the ECF and the readiness. So some of that's interchangeable. So we will be able to help offset that a little bit. Um, so between the two, we're relatively close to a break even at that point, but still continue to look at the school side of things and try to figure out how we can better get back closer to a break even. Um, I don't know that it's possible necessarily
039just based on the way that it's set up and the funding is for that. Uh, you'd have to increase your tuition as I mentioned before higher than you'd want to be able to continue to get kids to come here. So, um, and on that on that front too, you know, we have another program in the community that is no longer going to be going forward. So um we've seen an increase within the enrollment piece to where we're adding another class at this point. So um numbers there are going up but we also are have to increase that too to but that's where that piece stands currently. So, so within that um area with school readiness, one of the issues we have is we have significant number of students in our preschool program who would qualify
040for educational benefits and um the state will give scholarships for those students, but we're capped and so there's no what I would prefer is that the legislature would fund all those kids, but they only fund a number. And for us, it's about 15 and it's not enough. And so we still don't charge them full rates because they qualify for educational benefits. And that's where we have the loss. And so, um, it's a simple legislative fix. However, it's going to require funding to do it. And the current state of affairs won't let that happen. So there are voluntary prek seats that they fund and the majority of those go to the cities. There's rarely any districts outstate that get voluntary prek dollars. If they could act if we if they would let us access those, we
041would be able to deal with $193,000 deficit there. But do we raise rates, then kids can come. So, it's a double-edged sword. Yeah, that'd be quite a raise to make up the difference there. Yeah, most of that's driven by um students who qualify for educational benefits and don't pay well and the community's already lost one preschool program. We don't need to lose another. So, just some comments on that. Uh let me debt service. So this is where we make our bond principled interest payments. So under that service we about 2.8 million in revenue and 2.75 in expenditures maintain a balance there just to help offset any potential delinquency taxpayer type situations where maybe we would get all the revenue but that has never happened within this district. Um, and then the OPED revocable trust, which
042is used to pay for retiree benefits, have 150,000 there. So that's made up of $120,000 from the BCI street payment. And then 30,000 is interest earned on that balance that we have in that account. And then we have expenditures of 61,200. So, the reason I I know I mentioned this, but for those of you that don't know, the reason this negative number is yet to be reported that way within our audit for government financial type situations. So, that's not actually the amount we have in the OPED account as far as cash goes. It's more like 1.1 million. This is recording essentially the entire liability that we have offset that piece. questions. So Dan, do you want to just clarify that um if it's fund one, fund two, fund four or debt service, how that money
043cannot be moved around outside the funds? Yep. So fund one is obviously the mo most flexible if it's in the MSI. Basically use it for whatever we want. um restricted accounts all have a certain rate certain way they need to be spent um within that lease fund too has to be spent obviously within the food service area they have started to open the door a little bit on that now um we're able to pay for lunch tables out of there um let's see uh other so one of the other things that they used to do was if you purchase new equipment and you needed to like put any different electrical in or plumbing or anything like that, you couldn't use fun two for that. You had to take that out of fun one. It made
044no sense at all. Quite possible things. So, I order a new oven and I got to move an outlet and now you got to I got to pay for that on fund one type. So, that has changed and softened. Yes. Um, so there's a little bit of common sense that finally hit in that area. Um, so those types of things. Um, staffing as far as supervision of the cafeteria type thing that has been talked about. We'll find out if that was actually truly included in this one or not when details come out on that. But that's one that typically hasn't been in the past. So even though they're supervising specifically lunch, you still had to take that out of as well. So uh and then community ad within community ed you have the various different
045buckets of community ed. So the general community piece would be um tiger time, any community ed classes offered. Um those types of things for whether it be students or adults. Um, and then ECF would be any of our early childhood family ed programming. Um, which is an addition to really the school readiness preschool program. And then and then the school readiness is strictly this year preschool program that's housed in this building. And then debt service, there's not really anything you can do with that. That's basically there money to pay off principle and interest on your bonds. Um, if it gets if this 645 gets too high, there's a formula state uses to pull that back. You essentially return it through the levy process that way. You want to go through these or go to the
046summary page? Uh, you can go to the summary page unless somebody has a question on any of that. There's a lot of detail there, a lot of different line items. So the enrollment we use is 1941. That's K12 enrollment. As I mentioned earlier, the basic formula increase there. Um so that generates a total of 437 435,000 based on our current enrollment that we have. Um I mentioned the school library aid act. student support aid co-op. So we get we get student support aid for us and we also get it for the co-op for Zed. Okay. So instead of sending it directly to Z which will make way too much sense they send it to the school districts. Zed would then bill us. We would send it to them. So basically they're my understanding is that's
047going to go away and they're going to send that money directly to you now. So we won't have to play the middle that anymore on that piece. Um special education aid. So we have an increase there even though they're looking at cutting special transportation by 5% in 26 and 10% in 27 um along with also having to find $250 million in special ed savings um over the next is it the bianium or next year only bianium. Right. If they don't find that, then that will prorrate our special ed revenue even more. So, so I'm still expecting us to still receive more revenue and special ed just because our special ed numbers continue to climb. So, um then we do have other state aid. So, last this last fiscal year, we received our solar project reimbursement
048from the state. So, that was a one time thing. Um, general levy usually is dealing with prior levy adjustments as those come through. Student fees, we do have an increase there due to the open enroll transportation fee, the activity fee increases, and also the ACT fee. Um, that's being added. And then insurance recovery was for the central roof here payment we received this last fiscal year that we would have going forward. On the expense side, $49,000 increase in administration. So those are salary increases. License instruction. Um same thing there. Salary increases. It does. So normally our license instruction salary would be higher than that, but this is now taken into account. Reductions that also take place in there as far as staffing goes. Um speech pathologist salary increases for those individuals. uh pair of professionals.
049Same thing as license instruction. We did have the salary increases built in um as well as accounting for the staffing reductions that took place assistance salary reduction there 40,000. So that's incorporating the increase as well as the reduction of the one administrative assistant position that we had and then TRA. So even though we're cutting sp transportation and all kinds of other things, TR pension rates are going to increase um and be paid for by the state. So uh it's going from 8.75 to 9.81%. Um so that that was part of that $128,000 increase is that percentage increase. The rest of it is tied to the increased amount of salary that we had. health insurance. We budget that based on the current enrollment um fees for services. We've got some contracted service pieces that are being
050reduced as well as um reducing some LTFM projects that we uh would have done in this past fiscal year. Co-op student support, that's just the offset to the revenue. So, budget neutral in that area. I've estimated an increase in property insurance of 222,000. um probably not enough, who knows? That one's been something that's been increasing quite significantly the last two years. Um and then 80,000 repairs and maintenance for some of the LTFM projects. I'll go through that stuff a little bit later. Um and then we had 167,000 reduction in payments to private agencies. So teachers on call, we have some of our parents were working directly for them. Um, so some of that has changed where they're now moving to the district side and we're also we also redu reduced one pair on the TLC
051and then equipment $43,000 increase there and that has to be some capital equipment which we will also talk about later on in the agenda. Any questions? The TR contribution. Um, you said that was the state's picking that up. I thought I misheard that. States pay for the increase. States pay for the increase. Oh, they are on our side. So then they're not they're not increasing. Okay. So this is an expense of 128 that the state is compensating this for. Okay. Is that it seems like well it's not this is that increase isn't all of that. So some of this is still tied to our our salary increases. Sure. Sure. So you've got you've got 75. I was looking at the percentage more than the dollar. Yeah. Um is that a that seems like a large
052increase from significant? Yes. I don't know what you know the past few prior but the one like a lot. So I think the last time they did it so they used to be at seven and a half I think. Then it went like 0.25 25 for I think four years increase. Um and then now it's making a sizable sizable jump and they're also bringing back the lowering your full retirement to 60 and 30 years of experience. So 60 years of age and 30 years of experience which is so originally they had 9.5%. When they lowered that full retirement age down they added another 31 in to cover that change. So which for us 31 isn't but factor that across the entire state right it's a few million dollars more. Thank you. So you would do
053E at this point before we get into LTFM. Are there any other questions about the proposed budget before we vote? Okay. I would seek a motion to consider and approve the proposed budget for fiscal year 26. Second. Uh sorry, Mr. Lman, were you first? Okay. I have a motion by Mr. Lman and a second by Mr. Gist. All those in favor signify by saying I. I post same sign. Motion carries 70. Thank you, Dan. But you can stay right there cuz next item on the agenda is long-term facility maintenance 10ear plan and we will be voting on this after. All right. So this is the annual thing that we need to do every year is to approve this, put this in place, and then this will end up on the levy in the fall and
054it will go into effect for fiscal year 27. So um what we have so for LTFM, it's based off our adjusted pupil units, which right now is the 2188 number. Um the district average building age which is 43.21 the formula is $380 that equates to 831,288. So these numbers that are moving forward are the next essentially basically the next 10 years. So they don't change anything with your pupil units even though that's not realistic. But um you have no way to know for the next 10 years really where you're going to end up and frankly we don't really care about get that far out. So um okay go back to the left. So scrolling down. Keep going. Keep going. So here's our total LTFM revenue for our individual or for our district projects. 1.391 million.
055If you scroll down on that, then they show all the breakdowns of what comes into play as far as how much is aid, how much is levy, how much is going towards that service. So we did the projects uh for the air handling units and all that stuff. There's a portion of our LTFM revenue now that goes to fund 7 pet service to pay off those funds that we sold that. So going down. Yep. So over here then you can see the total general fund revenue and then you can see how much of this is levy and how much of it is aid. Right now we don't have any aid until FY28. Um and then this is how much will be levied as well. So we go with no aid all the way through 31
056or 32. Oh 34 actually before it stops goes away again. So what ends up happening is there's an equalization type factor that comes into play here and we have some of our all facility bonds that were done a long time ago finally falling off after FY27. then some of the state aid equalization comes back in play. Um and then it'll go away again in 34 at that point. So that's the revenue side of it. And then I know it's small print, but this is a state form. They smashed up so much stuff into one document. Um this is a one page then that shows the expenditures over the course of the next 10 years. So these would be our health and safety things um that we have in play here. We have a base year
057of what we budgeted FY26 what we're currently budgeting and then I project that out for the next 10 years. A lot of these don't change. um they're just estimates at that point in time. Um if we know of something that's going to come up, like we know we're going to do a anesthesis project or something like that, I go ahead and build that in. Okay, you can scroll down. So here's our here's our in excuse me, indoor air quality. That would have been what's remained in FY25 for the construction projects that and high school needs and all that type of stuff. And this is what we would have in FY26 to utilize going forward would be the 844. Follow that down. These are the deferred maintenance categories that we would have under LTFM. So, one
058of the new ones that's being added in from the last legislative session is the roof system now. So, you could charge roof repairs to LTFM in the past, but now if you have one that exceeds 100,000, you can go ahead and levy for that amount beyond what you're currently getting in LTFM. Okay? So, that's a that's a change that's been talked about for a number of years and uh was finally put in place. This pending, it says pending because this document came out before their special session was over. So, but my understanding is that that one's in there. in the past. So, um that'll have a pretty significant impact on a lot of districts that are still in bad shape and just trying to patch and get by. So, but strategically too then they're going
059to have to look at their levies and know how to best manage that situation so you don't have huge increases and decreases and that type of stuff. So, um, so yeah, those are all the deferred maintenance situations that we put into place, and then that gets us down here a little bit further. So, here's our beginning fund balance in fund one, how much revenue we're going to get, how many expenditures, and this is our balance going forward. So, we do drop in FY26 into the negative amount um projected at this point in time. I'm hoping that this won't take place, but LTFM can go negative if it needs to. Um, there's no penalty or anything like that for doing that. Um, but as you see then as we go forward, that balance thing continues to
060grow again as long as we don't have any unforeseen issues pop up. Um, but that's our intent is to go ahead and build that bounce back up. This would be your fund six. So starting in FY25 that was the balance remaining this is interest earned this is also this is the amount of expenditures so far today in FY25 that we have spent means we carry over a balance of that and then I put in the full expenditure at some point to zero that construction piece out that's it from the expenditure Any questions for Dan on LTFM revenue and this is a resolution. Can you vote? Okay. I have a motion by Mr. Ravenhurst and a second by Mr. Gist. Miss Cook. Hi, Mr. Mr. G. Hi, Miss Keeper. Hi, Mr. Lawman. Hi, Mr. Ravenh. Hi,
061Mr. Welch. Hi, and I for myself. Motion carries seven with zero name. Okay. Um, the last piece is capital. Okay. Yep. The last I'm going to make it bigger. capital outlay budget, but I don't see Oh, it's just this one's together. This one's a presentation. It's just a worksheet that you did. Okay. This this is all actually built into the bunch of that you approve as a whole, but we'll go into kind of detail of showing what that's what there is. I think you still want to approve it even. Yeah. Even though um So operating capital on that side beginning fund balance is 633,000. So we bring in about 329,000 in revenue. Plus we also have the lease le piece was set. So that's another 206,000 in revenue. Um going through that I did add
062on here it is not currently in the FY26 budget but I added that now forgot about that piece but the Eagle Rock donation that will happen for the next 10 years. So there will be 15,000 in revenue coming into the capital balance in FY26. So expenditure side we got technology. So we have 45,000 for the instructional devices and then one to one laptops another 65,000. So technology basically has 110,000 to work with and how they spread that between the various different bucks it's kind of up to them based on need in that current year. So, um, that number has been 110,000 for over many years. Even though prices have gone up, they still managed to make that $110,000 work. So, there's the Z building lease for 206,000. Then buildings and grounds. So, we have creat
06322 of those, $57,211. And that's going to get totally fun, too. So it will not I have it on here as a capital but it will not actually go to operating capital. We'll take that out of fund too now that that's an allowed expenditure. Then we have a th000 for menstrual products. We have more with attachments at bonner for 32,000 flares ranger for 8,000. So what we do on on that and also device more trying to think what we have the Bobcat. So on those typically we'll run those for a while and then we're going to trade in type of situation. Um so that's what we did there. Then we have the high school gym bleachers at 135,000. That's part of that eagle rock donation. Um, and then portable outdoor features at 98,000. Each building
064has a designated capital account that they have available if they need it beyond something that's already been approved. Okay, these are the instructional items that were requested and approved. Um, so library technology equipment 2030 there. So, we're changing from Celco, which is no longer going to happen, to a new program. Um, and part of that is getting some new updated uh technology, computers, not to be able to utilize that. Uh, BCI, we have some morph instruments. Bonner has some classroom rugs and a standing whiteboard. And we got some got a baritone and a music podium. and then some classroom tables and chairs at the right school as well. Then under activities, we have our athletic uniforms, our health reconditioning, the gym chairs and cart. Um, and then the high jump coal standards hurdles that's zeroed
065out. We're taking a year off from those. So for a while there we were doing eight every year and recycling some of the old crappy ones out of there. Um, so we're I've been told we're okay on that right now. So we took that back out and we have two portable scoreboards at $9,290. So our total capital expenditures $531,846 and then the lease of 206. So that gets us to a projected fund balance of 445,000 in capital. These are just some of the designated balances that we have on some things that we know ultimately have to happen. maintenance truck, which I think's been on this list for like 15 years. Um, we keep kicking that can, which is they're okay with it. So, I'm find two. Um, Toro wing mower, which we're putting away a
066little bit there for one of those at some point in time. I believe one of those is somewhere between 80 and 120,000. I know that's huge spread, but you are stashing a little bit away. We are trying to because we know that at some point in time. Yeah, we're probably going to need one. Uh music instruments then in FY27 will start to allocate 5,000 and ultimately what they do is then they determine what they need and what they can fit in that 5,000 that has to be replaced. Um and then same thing. questions on operating capitals. So that's 135,000 coming back in beyond this what this is showing right now. Yeah. just kind of up from that. Thank you for all three presentations for all your time. We appreciate it. Uh we would we need
067a motion to approve the capital outlay budget. Second. I have a motion by Mr. Welch and a second by Mr. Ravenhorst. All those in favor signify by saying I. I post same sign. Motion carries 70. Before you move on, could I just take a moment to recognize Dan's diligent attention to the work that he does um the consistent focus that he has on managing our revenues and expenditures with the late um release of the funding stream. the amount of time and effort that he's had to put in at the end of July here to get this all pulled together has been tremendous. And um even though I encourage him not to spend midnight and weekends doing this work, I know that that was happening. And I just really appreciate his focus on Steuartville and doing
068what he feels is in our best interest to keep our man our finances operable and in good condition. So kudos to Dan for all of the time and effort put into this. Thank you. Yes. Thank you. Thank you. Next item on the agenda is I consider and approve the authorization for administration to sell and or dispose of the gymnastics equipment and supplies in ordinance accordance with policy 802. And this is a decision and discussion. Um, prior to the board meeting, we did hear from some committee members and gymnasts um, on the importance of gymnastics in our community ed program and how beneficial that would be to keep around for the younger girls and our high school program. That vote had already been passed previously in the spring when we did cuts. Um, but tonight we're
069talking about to sell and or dispose of gymnastic equipment and supplies and discussion or need anybody have anything to add? I think we need to pump a little bit on that. Is there is there a buyer lined up already? We have people that want it. We can't engage until you get this permission. There's a um um the board can enter if anybody would like to make a motion. I'm not sure. Can chair make a motion? Um you would amend this. You make a motion to amend this. So I'm going to try as chair. I haven't made a motion yet. So I would make a motion to amend I and I would like to make a motion to amend I and then I would change it to please help me someone if I need it. Uh
070I would like to keep I would like administration administration to make the decision to keep the equipment necessary to keep the community ed program going in storebell. So they can sell what equipment isn't needed for the community ed program. Who would make that administration or So you authorize them to Yeah, I would authorize them to sell something. Sell something that they can do. Yes. That wouldn't be impactable to the community program. That wouldn't be impact. So did I. Okay. So I would make a motion that Chrissy, I'm sorry. That's exactly what I said. I just want to make a motion to What do you have? Okay. What are you going to say? Make a motion that administration can sell andor dispose of the gymnastics equipment not needed to operate the community program of gymnastics. And
071I that would might be my motion and then I would need a second. So the intent is to make sure that the community ed gymnastics program stays alive. Correct. Of that motion. Yes. I would second that. I have a motion by Miss Ray Maker and a second by Miss Cook. Can we read the motion back? She's still writing. Yes, I am too. I just want to make sure we're lined up. Okay. I have a motion by Miss R Major and a second by Miss Cook. Are we amending the We just need a motion. We're amending I to change it that administration can sell or dispose of equipment not needed but keep what is needed to run community that community. So here's what I have. Okay. Tony Motion by second by and I don't have the
072means to approve the authorization for administration to sell and or dispose of gymnastics equipment and supplies not needed community and gymnastics program. Yep. You have a motion. Motion and a second. As long as we have that motion and a second. Is everybody aware what the motion is before we go forward? Who makes the decision? No. We do. We vote no on the equipment. Oh, administration that whatever administration so whatever's not needed if there is no do we know what is needed or not that be an administrative decision. Yeah, that's not our decision. We don't I didn't know. Yeah. I would imagine there are going to be discussions between them and so we have community director, community coordinator, an athletic director, business manager, myself. No, nobody knows right now exactly what we need until they decide
073what is needed to we need to authorize them to make those decisions first. Like I said, I think the whole intent here is to make sure that the community that gymnastics program stays going. That makes sense to me. I have a motion and a second to authorize administration to sell whatever equipment isn't needed for community ed program to keep going. Any other discussion? All those in favor signify by saying I I post same sign. Motion carries 70. Next item on the agenda is 12 superintendent update. So, I have an enrollment update for you. This will be the last enrollment. We just um put it together last Thursday. Uh the high school ended it with 588, the middle school 478, K441, and elementary 17 with a total enrollment of 1924. I did want to spend a
074little bit of time on the legislative update. As you learned in Dan's presentation, the inflationary increase will be 2.74 for FY26 and 3.0% 0% for FY27. This is the only increase we'll see in state aid. Um, this inflationary increase was included in our projections that we did in April. There are several areas of state aid in which reductions were made by the legislators. When we made our recommendations in April, these were not included. We did not have an awareness that this was going to happen until the end of May. So when those uh revenues were cut, we didn't correspond with expenditures in the same way. So what we're going to see is we're projecting that compensatory aid is going to go down almost $54,000. Um then there'd be no change in FY27. That's what we're
075hearing. And again, this is from the Minnesota House release, not MDE. What happens is between the legislative release and MDE, MDE interprets all the legislation and then they figure out what the amounts will be. But projected is $54,000 less. We're still going to have these expenses, which means this 54,000 comes out of our general fund. Special ed, we're anticipating an increase of 43,000 in the first year, 71,000 in the second year for 114 over two years. Less revenue than what we thought we'd get. The library is 175 in the first year, 181 in the second year for almost 36,000 over two years. Student support aid is almost 41,000 in year 1, just under 40,000 in year two for just over 80,000 for the total. 155,000 less in revenue. Um Dan's budget was 135 less in
076over expenditures. Um but that compensatory number is going to be the one that drives that. 129 is anticipated for FY27 reductions and then the total reductions over the two years is 284. This decrease in revenue is likely going to result in more alignments next spring. Um and I'm anticipating anywhere from 250 to 300 in alignments. That means we will need to reduce our expenditures going into FY27 by that amount at a minimum because already next year we're going to be spending more than what we get. So we'll be upside down in FY26 and then in the spring of 26 what this board will have to decide is how to rectify that being upside down and spending in the negative and then to prevent spending in the negative for FI27. So, it's not all good news.
077Uh, we're very grateful for the increase in state aid, but um feel a little blindsided by the reductions that were passed by the legislator. We did not see that coming. There any questions? So, in the budget proposal, enrollment 1941. Yeah. And then this is obviously 1924 which if it's like 7,000 what like 20ome thousand even shorter potentially if that's what our enrollment is in the fall what do you anticipate that in a year will that go up do you think I mean historically does that go up by the time school actually starts from the end I'm going to give credit to Dan on this he has done an amazing job of pinpointing where we enrollment and he's within less than you should work for you don't right well I mean you don't make up you
078could be a man we knew our enrollment our recommendations in April were based on that projected enrollment that so you made adjustments for that what we didn't adjust for is this So, and I keep going back to what Mr. G said, we should go closer to a million. And you know, we administratively felt like that was just too much, but in the end now 850 and 150 is 1 million. You were right on the [Laughter] speechless. So, you may not hear it often, but you were right. You were right. You're right. Oh, shoot. Well, what's what's left? That's a good question. That's it's tough. I mean, just just so the community realizes what what's left. Okay, let's cut another 350,000 so we make sure we don't fall below 8%. And I said 350 probably should
079be 450. So we have some sort of cushion. Well, you got to start making you know and Dan did make a very student point. The second year of the bienium is easier because we know all the numbers. Yeah. The first year of the bienium this kind of surprises you. We just I never anticipated they would reduce this but it's just [Applause] what's left. Nothing's safe. I mean, more more tough decisions to be made. Very tough decisions. I would say, you know, people say you're trimming fat. Well, there's no fat. It's all meat, right? So, that's what's left. We don't know what it is, but it will be important and impactful. So, all right. Thank you, Miss Alers. Um, item 13 tonight, board committee updates. facilities being conferred just negotiations. Yeah. Um so we have one
080negotiations meeting scheduled with the teachers. I have not gotten confirmation from the SCSPs or the SAPs on a date yet. Uh local 70 is willing to wait until those three groups are done. I said move on to policy. Yes. Yes. So Paul There'll be many many policies now coming down the pipe. Um most of them are going to be legislative changes based on statute. Those are pretty easy. Uh we learned from MSBA that you can do those in one meeting instead of have first reading, second reading if they're based on statute. We can't have policy that conflicts with statute. Statute would supersede that policy anyway. So as uh Laura and I read through those, we'll be bringing those forward. I don't think it'll be in July. There's a lot. And so we'll be looking to
081do that in August and September. Okay. Beginning of Okay. Is there any other board committee updates? We has a meeting this. Okay. Okay. I went to the last meeting. I'm trying to remember what happened. I had notes and I can't find um it was a lot of ending end of year stuff. So they were going over like you know the graduations and stuff like that. It wasn't like anything really major in the decision purchases stuff like that. I think the meeting that I done was looking I had no to an old meeting back in February where they bought a van but I don't there wasn't a whole lot. It was a lot of it was a good meeting because it was a lot of feel good stuff and a year you know. Yeah. I went
082to the online governing board meeting too and it was um enrollment increased. They're offering a couple new classes, you know, nothing earthshattering, but just, you know, kind of same end of the year. Here's what our numbers were. This was, you know, something newer, that type of thing. So, nothing major to share, but their numbers have gone up. So, great. Okay, awesome. Thank you for the updates. Um, next item on the agenda would be adjournment. I would seek a motion. Second. I have a motion by Mr. Lman and a second by Mr. Gist. All those in favor signify by saying I. I. Same sign. Meeting is adjourned at 8:20 p.m.