001tonight's agenda. Raise your hand and say, "I >> I >> opposed." Agenda passes. We'll move on to our consent agenda tonight. And you'll see items A through C. Uh, is there a motion to approve tonight's consent? >> Great. Director Lowour, and I saw with the second, >> all those in favor of approving tonight's consent agenda, items A through C, raise your hand and say I. I. >> I. >> Consent agenda passes. We're going to start tonight um with an action item. This is a resolution establishing dates for filing affidavit of candidacy. So you can see that on on the screen. Um we get all this information from the I'm assuming the county and so it's been verified. Um this is for our upcoming schoolboard election. Um and so if there is I'll go ahead and
002make a motion to approve. Is there a second? A second. >> Great. Director Theelander with a second. Uh any questions or comments? >> Just a comment. We have a an elections attorney who represents the district who's spec who that's his primary work is elections. So we just received this back um I think last night. So it's it's been fully vetted through legal. So um I feel comfortable with it. >> And this gets published in the paper as well at some point on >> Yep. >> Great. >> Yeah. I think we have till the end of the month to publish it, but she's someone's already working to get it out. >> Great. Okay, we have a motion and a second. Seeing no other questions, all those um or this is a roll call, so we will
003go ahead and have Joan do that. Uh Director Gersich, >> yes. >> Director Hawker, >> yes. >> Director Kelzenberg, >> Director Lowour, >> yes. >> Dr. Parker, >> yes. >> Director Theander, >> yes. >> Chair Sherman, >> yes. >> Resolution passes 60. >> Great. Thank you. Um, and then now we're going to have a report. This is our long-term facility maintenance plan, the 10-year review. This is just a report tonight and we'll take action on it at our next meeting. Welcome, Mark. >> Good evening, Chair Sherman, members of the board, Superintendent Funk. Tonight, we're here to share the uh FY2028 LTFM plan. Every year in June, we come here with our plan with upcoming next summer's projects. Just so you kind of know our timing, we're here tonight for a report. We're looking for action
004on um the next meeting, the last one in June. This is due to uh MDE at the end of July, but they need minutes from an actual board meeting. So, we'll need the board meeting minutes from July and then submit it once that's done with the plan here. So, tonight we're going to talk about a couple different things. We're going to talk about the 10-year plan and look more specifically at what are some of the projects we're looking at and anticipating here for next summer. So, as we look at the 10-year plan, what's up on your screen, it's also in your packet. As we put the 10-year uh plan together, we try to be mindful and balance between keeping our buildings and facilities looking nice and and u making sure they don't erode, but also
005looking at the burden of our taxpayers as well and striking that balance to try to keep that as stable as we can, but also keeping our projects and our buildings up to date um as much as we can. So, this is a very fluid document. It does change from year to year. Um but as we look at this 10-year plan, this isn't um just work we do in isolation. There's meetings that we have with our building principles, our head engineers at each of our sites. We talk with our architect team, our construction manager team, and try to look at what are some priorities that we need, what are some priorities in the building, um, and then come up with this plan here. So, if we look at the 10-year plan overall, so if you take
006a look what's on your screen, the FY28 is the plan that we're talking about here and the one we're approving. Next year, we'll bring another 10-year plan of of FY29. We're looking at 29 projects here specifically. So, we try to get it kind of categorized by um color. So, you can kind of see what it's not the whole project of it, but if you look at the uh orange things on your screen, those are mainly mechanical. There are some other things within the mechanical, but kind of what's the big ticket item for each of those buildings. The blue is kind of the classroom or interior work. Yellow is rooftop or um tuck pointing. And then um you can see restrooms and then there's also turf and track with the high school that's coming up here
007in a few years as we proc replacing the turf fields coming up here at Pony Stadium and the practice field. So that's our 10-year plan. Any questions on that before I start to dig into kind of next year's plan and kind of go building by building and look through >> um not nothing because I know there's a lot from staff that goes into evaluating what gets done and when. Can you explain just um when we approve the 10-year plan because I always think it's just good to remind people we we can't add once we approve the 10-year plan, we're locked in for um but you can't add new projects once like how does that process work once? >> So, this is the plan that we kind of there's a form that we'll get next time.
008So, when we come next time, there's four um things that we have to submit to MD. One is our revenue is kind of the plan of this 10-year plan as you see on the screen that we have to and it's um broken down by MDE categories. So we broken down here by buildings and saying we're replacing a rooftop unit or resealing the parking lot. When it comes to NDE, it's the individual FIN codes. We break that down into their terms to figure out same dollar amount, but we put that what we're going to spend in terms of different entities for their finance codes. So that's the expenditure one that we have. There's also the revenue side. Part of it is from the levy, the PGO levy that we have. Some of it is from our
009LTFM bonds. And then we have the statement of asurances kind of from the school district that states that we're going to do these projects. Here's what we're going to do. We say we're going to do them. We're going to get them done on time. And then there's a schoolboard resolution that goes with it as well. So there's kind of four pieces to the schoolboard approval for next week. >> Okay. Dr. Funk, >> the reason you can't add is the revenue side of this goes into our levy. So we create our long-term facilities plan which is then you know approved at the state level which is then calculated into our levy which you will approve in the fall. Um so that is why we can't suddenly okay after it's been through the process with department of
010education say well we're going to we want to add this project. So there's kind of a long timeline of uh when we do things. Um, so that's you're absolutely right. You cannot add to the to the thing after we approve it. >> Okay. Thank you, Ed. >> So, also we did work with finance as well to kind of keep the levy as flat as possible. So, if you look at the total amount of the projects is $14,628,860 and that's a portion of the levy as well as portion of the LTFM bonds as well that go into that. So, um, try to keep that as stable as we can. >> Great. >> Sorry, I just wanted to >> No, good question. No, good question. Anything else before you kind of dig into individual buildings and you
011know please feel free to um stop me or go through it from there. So just kind of looking here at Afton you're going to say a lot of the stuff I'm not going to go each individual line but just kind of the big ticket each building but if you have questions please feel free to stop me. So at Afton there's a lot of lines in there but the main one is and this is our last building is to switch from the steam boilers to the hot water. And so a lot of that is for energy efficiencies. It also helps us with the staffing our operational side of it as well. But this is the last building. We have a couple buildings this summer that we're doing. Afton's the last building next summer to make sure
012that we all get that conversion to the steam uh or to that hot water. And then the other part of Afton is seal coating the parking lot as well as the playground. So those are kind of the two big things that are happening at Aftton Lakeland. Moving down to Anderson um is tuckpointing. So tuck pointing for those of you that aren't familiar, it's basically replacing the mortar or the grout in between the bricks. Um it does a couple things. It helps with water resistant moisture, helps with the structure of the building, um, and also helps it look nice as well. The part that that really fits in nice here is when you do Tuck Point, if you ever had it and some of the schools that have had it before, it's extremely dusty inside. So,
013there's a lot of staff as they come back from the summer that they're cleaning a lot of their stuff. So, with the building being empty of just finishing this school year, it's a perfect time to get our tuck pointing in before we um repurpose what Anderson's going to be like moving forward. Um, Brookview Elementary. Um, just a little replace the sidewalk and the flooring, the sidewalk along the playground and the flooring in the K1 area. Um, some light fixtures at the central service building. Kind of moving to LED. Again, we're trying to do our energy efficiency. Um, changing our lights to LED and replacing the flooring just in the main hallway, some of those hightra um areas along there. Our early childhood building is again the light fixtures, changing that to to LED as well
014as placing the flooring in some of their hightraic areas and classrooms. um in the early childhood at Lily Lake, it's replacing the operable wall in the gym. Um replacing light fixtures and windows in the the K1 area and then seal coating the park or the playground, excuse me. Um it's kind of another one of the big tickets there at Lily Lake. At Oak Park here, there's two restrooms here at the end of the hall by the cafeteria. There's two staff restrooms. Um just replace the fixtures and the plumbing lines that go in there and the tile and then as well as seal coating the parking lot. So now kind of that the projects are done here with the ALC and the bridge. Now that kind of all that traffic is done in the parking lots,
015it's time to come back around and and seal coat those parking lots to finish off that that final part of that project. Um there's some flooring work at at Oakland Middle at Rutherford. It's replacing the plumbing and fixture lines for a restroom um downstairs by the media center. There's a restroom off of there that um needs some work. as well as there's some uh rooftop units by the gym and some of the larger ones over some of the classroom spaces that need to be um replaced at Rutherford. Looking at Stillwater High School, Stillwater High School is always a big ticket number just because the the size, but uh some of the main things is replacing the gym curtains in the main gym, not the pack, but in the main gym. Um also replacing the lights
016at Pony Stadium, moving that to LED again for energy efficiency. Um, and just those are original to the to the school, those lights at Pony Stadium. And then a lot of those other line items at the high school are HVAC controls and and some chiller and heating items in there. Moving on to Stillwater Middle. Um, replacing the pipes in the um, sprinkler pipes in the hallway, basically from the auditorium through kind of both sides of the media center to the front door. This is the second year. This FY28 is the second year of a multi-year project. So, it starts this year. We're replacing the sprinkler system and the pipes in the auditorium. And the next is kind of taking from the auditorium, taking the hallway down from the auditorium down to the main office area.
017And then in subsequent years, we'll be moving that project down to other areas of the building. So this was part of a multi-phase project to um replace our fire sprinkler pipes at Stillwater Middle. Looking at Stonebridge, um it's replacing sinks, ceilings, lights, floorings, etc. and two of our sightbased programs and our EBD program at Stonebridge as well as the fire alarm system. Um it's many years old that needs to be replaced. And then also there's a chiller and a boiler that needs to be replaced at Stonebridge. And then lastly, districtwide um the JC ball fields. Um those lights need to be replaced as well as also the back stops at each of those fields. So those are kind of the two bigger items there at districtwide. So, um, again, I didn't highlight each one of
018those line items, but I'm open for any questions or comments that you may have about some of the projects that we have proposed for next summer. And most of these are not this summer. It'll be next summer, summer of 27. >> Great. Thank you for that explanation. Um, and then I should always back up. I know the board here knows this, but just for the community watching at home, these the long-term facility maintenance funding is only replacing like for like, correct? So you're the the people will look at this and say we're not doing new projects or add having additions put onto buildings. It's just a like forlike replacement. >> Correct. I should have led with that. Very good. Yeah. So this is just replacing things that are failing and things that are coming up
019that need to be looked at and replaced. So yes, thank you for that comment. >> Yes, Sarah. Um, just a general question about the the chart and I'm sorry if I missed this, but um why so the squares that aren't highlighted, what are those just >> you're talking in in the um in the 10ear plan. This one here. Yeah, >> we didn't do all of them um to every little thing. We just ones that have like a bigger ticket number to them. Okay. So, some of just kind of little things that add up. We just try to get the ones that are kind of closer to a million dollars or more per site. Got it. I'm kind of looking here some of the bigger ticket items that are happening there. >> Highlight those. Okay. >>
020Okay. Yes. Director Parker, >> can you walk through the first three items under districtwide and help it under help us understand what those are? >> Yep. So, um the first one is the um design project plan specification. That's our architect. So, as we do these things, sprinkler project, that's making sure that it's by code, making sure it has all the engineering and backing behind it. So, that's our architect fee. Um the second one, our project management is Krauss Anderson. So it's on site daily to make sure all these projects are run, answer questions, make sure the contract or the construction's done on time and on budget. And then the opener representation is district staff that work with LTFM. So myself, some other people in um as part of our salaries, myself, some other people in
021the operations department that work closely with the um LTFM projects. >> Thank you. >> Any other questions? >> Great. I think just again thank you and your team for all the work. I mean our buildings look wonderful and I know it's a lot because of the planning and the work you guys put into it on this and other areas. So thank you very much >> and I will be remiss Tony Wilgger who works in operation department is integral to this. He's the kind of the backbone of our department. So I remiss not to give him a props for the work he does in all of our buildings but also in in seeing these projects through. >> Great. Well, thank you very much. And um if you have any questions before the next meeting, um go
022ahead and send those to both Mark and uh Dr. Funk and we'll get them answered before we vote at our next meeting. So, thank you, Mark. >> All right, our next Oh, you're still here. Okay, we're going into the 96. I know. We have the 916's um long-term facility uh maintenance budget. I forgot about that. So to kind of piggyback this, the 916 with the intermediate school district has the ability to levy through their 13 member school districts for projects at their facilities as well. So of the 13 members, their total is 600,500 and then they do a proportion um basis of that for other 13 member districts. So the Stillwater portion of that would be $60,434. So each one of these 13 districts brings their um plan to the school board to get approval.
023And if all three 13 boards approve, then the 916 um will um go ahead with their project. So we're kind of a pass through for us to 916 for their LTFM funding. >> And this is an action item tonight. This is handled not by our staff. We're just contractually. This is our share of those fees. Um >> and there is a resolution that goes along with it. >> Yes. >> So I'll go ahead and um and make the motion to approve this. Is there a second? >> I'll second. Great. Any questions for Mark before we do roll call? >> I'll just add, you know, being the board representative to 916. So, it Yeah, this is a pay as you go allocation. We're the fourth largest u so our portion is 10% and it was vetted
024through, you know, the 13 member uh district representatives at the 9:16 board meeting, so I'm fully comfortable with it. >> Great. Thank you. Okay. Um with no other questions, uh Joan, roll call. >> Director Gusovich. >> Yes. Yes. >> Dr. Hawker. >> Yes. >> Dr. Kelzenberg. >> Dr. Lawauer. >> Yes. >> Director Parker. >> Yes. >> Dr. Thelander. >> Yes. >> Chair Sherman. >> Yes. >> Resolution passes 60. Great. Thank you. All right. Our next item is a follow-up item to our last meeting. our last meeting, we talked a little bit more in depth about the teaching assistant uh model for this upcoming year and needing some additional flexibility to just to grant some additional flexibility on the staffing model as staff works through this. So, Caitlyn's here um uh to answer any additional questions,
025but um right now uh we'll have a motion if we're going to allow flexibility and I'll go ahead and make that motion. Is there a second? >> I'll second. >> Great. Director Theander with a second. And now questions for Caitlyn. Okay. So, this will be that one-year kind of flexibility. Um, and you'll report back to us and just kind of let us know what's going on either in our email updates or back here with the board. And so, we appreciate you coming to us in advance. And, um, we want to make sure that we're being flexible. So, yes, >> I would recommend that we do a public update so that the public is aware of what's going on. >> Exactly. And this will then this flexibility will end when we start as we mentioned last
026week when we start the hiring process for the following year. So >> [snorts] >> um >> Yep. Unless we decide to continue it for yes whatever reason but we would decide publicly and have a conversation about that as well >> updates. Perfect. >> Okay. Well, we look forward to how this is going to work um and the updates that you'll bring forward to us. Uh so with that um all those in favor of a granting kind of this flexibility for this upcoming year raise your hand and say I >> I >> opposed. Motion passes. Thank you very much Caitlyn. >> All right. Um we have a report tonight on Q comp. And so with that we have Deb Van Cly coming up to give us an update. [snorts] Welcome. >> Thank you. Uh good evening,
027board chair Sherman, members of the board, and superintendent Punk. It's a pleasure to be here. Uh here tonight to give our annual report on our QC comp program. Get used to this here. Just a quick review of what Q Comp is. Um, it's the alternative teacher professional pay system, but in our district we commonly known it as Q comp. And we use it to recruit and retain educators, support educators with strategies [clears throat] to improve student achievement. There are four components to the program that the state has uh directed us and that's what you'll see on the left hand side of the table. The right hand side of the table shares with you how we in Stillwater use the funding for our educators. The numbers behind mentors PLC leads those are the number of staff
028that you know are impacted with the use of those funds. Uh a large part of what we do is really around the job embedded professional development and teacher evaluation plan. uh using that money to provide educators time for planning uh developing assessments and then our instructional coaches working with educators and I'll talk about that a little bit more um to take what they learn on professional development whether it be implementing a new curriculum things like that and turning it into an application uh into their spaces. Our focus this year was continued alignment of all things professional development. a lot of ways we do that. Uh we spent a lot of time this year implementing our new evaluation rubric and it really is foundational to all the professional development that that we offered. Uh we've done
029some work with the you know learning more around tier one instruction and parts of our rubric really support that growth for our educators around instructional design and delivery data informed assessment and culturally responsive practices. So, it's really been a focus for us to get started in the work and we'll continue to do that work. Wanted to share with you some of the data uh that we collect. Uh at the beginning of every school year, our educators develop a professional growth plan that's aligned to our district and building goals. Our instructional coaches um really support our educators in that work, but we collect data to monitor that what we're doing is working. Is it supporting educators in their growth? is it supporting student growth? So, we're constantly collecting that because we want to make sure the
030program and model we're developing. Uh just a reminder, we're in year two of our centralized coaching model that it's working and we're moving in the right direction. So, just wanted to share some of that uh data with you and how we're continuing to grow the program that is just finishing year two. At the last schoolboard meeting, I believe um excuse [clears throat] me, teaching and learning supervisor Hookstra mentioned some of the work collaborative work we've been doing with Forest Lake School District and our coaches were really instrumental in that partnership with Forest Lake in developing it and bringing it here. And this is example of our literacy curriculum and a book tasting where our students get to kind of, you know, see the different books. They move from table to table. So, I just thought
031it's nice to see like this is kind of what it looks like in application in some of our spaces. When you think about the work our coaches are doing, it's grounded in uh Jim Knight's research uh over 30 years of of instructional coaching. And this is what our educators and feedback are giving us some of that qualitative data around the work we're doing to support their learning. You know, the work we do helps strengthen my instruction, which we then know improves student engagement. This collaboration increases my confidence, which then increases competence. Right? Those two things always go together. And also providing a space where there's a lot of research around learning from one another and providing that space for educators to get into each other's spaces to see it, talk to one another, learn from
032one another as experts in that space. Our focus for next year is to go deeper. Lot of not a lot of things different than what we did this year. We recognize that the data we are collecting is making a collective impact and we want to continue to build that strong foundation um and culture of learning. So with that any questions? >> Great. Thank you very much. Um, so this is just a report this time. We'll vote on it kind of a statutory requirement that we vote on outright to this annually. Um, so any questions? >> So historically Deb does this at the business meeting in June and then you vote on it the same night. So we've moved it up ahead so you can see it and process it a little bit more and then
033vote it >> at the second meeting. Little different. >> Great. >> Yes. Um, do we for the QC components? I'm not sure what slide number it is, but the one that the four components. >> Yeah, that one. Thank you. Um, do we benchmark this with other districts or other players? You said we partnered with Forest Lake on some stuff. Is this Do we know what Force Lake does for this or do we know what other districts are doing here? >> Yeah. Um I currently sit on a um a collaborative board in the north metro where there are 12 different QC comp districts but there's actuallyund and there's a lot more than that or whatever >> 30 I don't know what the number is >> um and we do a lot of comparison but the beauty
034of the program is that we're able to develop something that works here in Still Water to support our educators. So that's kind of like that lefthand side those are the core pieces but the right hand side we really get to develop that model. as a as sort of a newbie here on the board, I think of the performance pay as somewhat out outcomes based >> and it looks like only 10% of the pay is outcomes based. Um so I I don't know like that that's I was just wondering understand is that normal is that >> yes it really is. You know I think when Governor Palente moved forward with this plan I think it was back in 2006 it really was a payfor-performance type initiative. Um, I've been part of QC comp districts now for
035probably 15 years and yeah, that's a great question because I've had the same question and and really I think that the uh the strength of QC comp is the professionalism and the professional side of the development and the state and districts had just moved away from the performance pay piece of it. Um, so that's very common. I've seen it in some other places as $1, you know, in in in some cases. So um yeah that is that is common and the other thing is uh related to your question you know there's over 100 districts I think in the state that that are part of Q comp and it's voluntary on the part of the district to do it and different districts take there is no identical approach to how districts are are utilizing their U
036comp dollars so they're structured in different manners. >> Thank you. >> Yeah. and is the the bulk of our QC comp plan is going for that staffing correct the PLC leads the instructional coaches that we have in our buildings because I know for a while what we tried to do um and it was tough was one it's a it's a program that's funded from the state and um a local levy um so it's kind of a shared expense but then also for we had to really make sure Q comping was paying for Q comp which if I recall all early on unfortunately did reduce some of our coaching staff. Um but now Q comp sustains our coaching staff, our PLC's, our mentors and our instruct um >> this position that I >> Yes. And your
037position, sorry. Okay. >> And that's where the bulk of the funding comes from. And then there's a stipen for going through a cycle. >> Yep. And that's right that pay for performance. >> Okay. Yeah. So, so the the other piece of that I think the board needs to be aware of um I believe in the governor's budget last year his initial budget one of his initiatives was to eliminate UC comp. >> Yes. >> So, as we are continuing to face some headwinds at the state level with with uh budgets um this may come up again in at sometime in the next next bianium. And that would be really I mean I think that's going to be important for the board as we talk to our legislators to have them understand what we use these funds
038for and what that would mean at the building level for you know a variety of job embedded coaching efforts. So >> any other questions or comments for Deb? >> Great. >> Thank you very much opportunity. Yes. Thank you. >> Okay. And um now we're going to go to an update on the 2627 budget. Different year this time this good evening. So uh before you this evening um is an update on the preliminary um fiscal year 27 budget. Um again, the numbers should be close to what you'll see in the final. We've been working through um many changes, many updates. Um budgets pretty fluid. Um as you know with the legislature, um things that um are proposed sometimes change, sometimes don't. and um some of those influencing factors that we've been looking at um most of
039the year now. Um our priority based budgeting framework um aligning our resources to our strategic plan. We had a lot of strategic initiatives, a lot of changes this year um within our school district. Enrollment changes. Um again, our projections are still based on the 8,081 that was projected in our document. um budget plan few few presentations ago on inflation. Um that continues to uh change um just with everything going on um throughout the uh whole nation itself. Um but again we are using different factors for that accounting for things that even impact our materials, supplies, transportation. uh fiscal year-end projections. Um those were provided. Um again, we're watching those, making sure that our fund balance um those expenditures are not going to negatively impact us at all or we'll need to make some type of
040adjustments. Contractual settlements again with salaries, uh ensuring that those are accounted for um not only in the salary but benefits as well. legislative changes um that can impact your revenue and your expenditures as well. We have to account for um all areas of that within the proposed budget. And then funding, that's one time only. And again, I just want to speak to that because there are some federal grants um that we do have to make some assumptions for with our uh federal entitlements. Again, uh at the national level, we we make those assumptions until we receive information from MDE. Um but we also have other grants that we receive uh locally and we make some assumptions there. Some are not built into the budget until we do a spring revision or a fall revision with
041the board. >> Yes. Uh, regarding inflation, are any of our major contracts, whether they're contractual settlements or just general contracts, inflation adjusted, like are they directly tied to a inflation or >> some of those are? Yes, they have inflation. >> Transportation has a fuel cost that if it gets to a certain price of fuel, which I'm sure we're over right now, uh, it's a shared cost as far as the increase over that number. And some of our licenses too, our um software licenses have a a couple year contract with um built-in inflationary increases. >> Thank you. >> So again, you've seen this slide before. Um the priority based budgeting framework. Again, we're we're getting close um to that final budget document. Um again that will be provided um very soon within the next um about
042a week week and a half out um that will be provided to um the board and again that highlights um all the funds um it also highlights changes to the budget um and all the different areas of the district. So again um just highlighting uh the overall uh preliminary budget and comparing that. Again this looks different than last year. Uh last year we um had a use of our restricted fund balance for the curriculum. This year we do not plan on uh utilizing our restricted operating capital budget for curriculum. So we are planning um to have a balanced budget uh without that use of fund balance this year. So again uh that estimated revenue um at this time of 156.8 million uh we will have that uh same expenditure level in our general fund. Um
043and again there is a um small plan to have uh a use of about close to 200,000 for our AU uh curriculum built in with our operating capital funds. So I'm going to walk uh through some of the revenue categories and just kind of talk through some of these differences. So, uh, the blue column again is the budget, uh, the [snorts] 156.8 in the general fund, but I'm just going to walk through just overall what some of those, uh, larger differences are. And I'll start with our property tax, uh, levy that again was approved, uh, last December. And so, it it funds or um, seeds the budget for July um, of our next fiscal year. So the levy uh itself um some of the differences here um are our other postemployment benefit levy. Um that
044was uh there was a decrease in that levy close to a million dollar overall and our long-term facility maintenance uh payo funding uh was down overall by about $400,000. And then we had other increases um smaller increases in the overall levy and they were too small to um account for. So it was about 300,000 overall and other lines. But there's about a 38 page document um that compiles that overall levy. And so those are the major changes were the two was OPEB and LTFM this year. Sometimes our referendum is another one, but for this year because our enrollment's um stable um there wasn't any large um factors there for that. And then in our state aids and credits um and that includes some uh smaller state aid funds we get um like for instance uh
045we get some uh paraprofessional reimbursements for training and things like that. There's a there's a lot that goes into the state aid bucket or operating capital funds. Um the larger areas here was the formula increase of 2.69 69 uh% um and also uh we do get voluntary prek funds. We had a slight increase in the voluntary prek students. Uh so that those totals relate to that um was 1.8 million of our 3.1 million increase you see there. The other area because specialled aid, we received that based on our previous fiscal year. Uh we had a larger increase in our transportation expenditures last year. And so um we're seeing a larger um >> projection of reimbursement. And so that was about 1.1 million um projected estimate of aid for next year. Again, that's one we're going
046to watch because it's one time only. Um and again, what they're doing at the state level, we don't know what the plan is for special ed funding um going into the future. So again, this will mitigate the costs in our special ed uh program currently because we are not fully funded there. >> Really quick, so this would because there's that two-year lag, this does not include the cuts that the state has for this year like that will be in >> correct. Okay, sure. >> Got it. >> And um as I mentioned, the third category here is the federal um grants and title programs. So that's your entitlements uh title one two um also includes some of our grants that we had at the federal level and one of those for example is um like a
047Carl Perkins um so again based on initial estimates and these again are rough estimates that we um have again the budgeted revision will include um more updated amounts but one that we did get was an immigration aid grant that uh we're not sure if that will renew. Um but again that was you know around 50ome,000. So again um these are initial estimates. Um you'll see that's why the difference there is just a little less. Um and again that will be updated again in a revision but again we account for the expenditures. They do match on the other side. So, um we're accounting for those um expenditures as well. And then the other category, this is where um the district accounts for interest. Um we account for the athletics. Um this is also where student activities,
048donations, um all of our miscellaneous revenue. So again, um partnership donations are initially not or the partnership plan grants are not accounted for here uh as we build this because they are not awarded until the fall. Um >> summer will go up with the revised budget. >> This will go up with the revised um budget that was um close to 300,000. Um we also have uh less interest as we um do spend down some of those donated funds. Um and then we also have uh Minnesota Department of Education. There's a couple grants expiring. Um our MTSS and our technology uh had a one-year grant. So that was about $300,000 as well. So again, those expenditures will not be there as well. So, it's just accounting for those, like I said, one time only things um
049that we make sure are not also in the budget. So, that's on the revenue side. As you can see from our revised budget to the preliminary, that's about a $1.1 million >> um increase overall in revenue. Before we move on um to the expenditures, any additional questions for Marie on the revenue. Okay. >> And in the budget book, I'll just highlight that this will be detailed out by line. So it'll you'll see more detail with notes if anyone wants to look at the different lines or sources of revenue. we we kind of highlighted here for the board, but we'll have more >> it's more of the narative >> detail and we'll have actual and revised more laid out. >> Great. >> So on the expenditure side um again this was just a way to highlight
050um our revised and then just putting a couple additional categories. So uh the inflation and other adjustments. So accounting for the inflation other adjustments again is um if we had for example in the supplies material and other um long-term facility maintenance um we had an adjustment there to our levy. So we had to also adjust um accordingly in making a budget [snorts] adjustment there. um the revenue was limited. So we also had made an adjustment in that column. It was sort of an inflationary adjustment um not a priority based budgeting adjustment uh with our strategic plan. So it's level setting the budget um according to the levy revenue that we received for PIGO. So that's one example of an other adjustment and those columns will be in the budget book as well >> and that's
051back when we as a board established the levy and we set that LTFM a little bit lower. Correct. Okay. >> Correct. >> So again just walking you through those differences and I'll also highlight some of those inflation and other adjustments and priority based budgeting adjustments. So starting with salaries overall um priority based budgeting um so highlighting the inflation and other adjustments. Um again the inflation um comes from the salaries um acknowledging the contracts that we have and what we set as a board um and as a district for salaries for fiscal year 27. It also includes steps or lanes um and those increases. Um again, the priority based budgeting adjustments. I'm just going to highlight some of the different areas that um were highlighted in previous um slides or updates. So, some of these larger
052areas include the elementary staffing model, uh, high school staffing changes overall, which includes the high school schedule, the PSO adjustments. Um, we had, uh, specialed uh, reductions. And I just want to highlight when you make special ed, um, reductions to the budget, there's also an impact on the revenue um, because we are reimbursed. So, and then uh we had support staff uh reductions and um we also had administrative reductions um as a whole. We also in that line um had middle school um athletics program. Um there was a change to that. Um that impacted some of our salaries. Um and again that's a change in the way we provide the service. Um but it does impact the general fund and uh also positions that are expiring on grants. So that's again overall >> just a
053clarification >> the salaries will still be paid but through community education not the general fund. >> Thank you. >> Just to restate that. Yep. >> So again that overall um you see the inflation there of $2.4 $4 million. And then that priority based budgeting adjustment, which is a lot of what I just um highlighted as high level. Uh that difference there of 1 to$1.3 million is what's making up those salary lines. Again, in the budget document, you'll see a lot more detail of what those lines make up. and they're all of our um account code 100s. There'll be more detail on that and again with prior year actual numbers and um current budget numbers. And so I'll highlight uh the benefits uh the benefits this year um again there's about $2.2 $2 million of inflation
054and other adjustments. I'll highlight that includes our new insurance rates that the district is covering. Um, and I'll just highlight that's about $1.3 million um additional costs to the district including uh FICA TRA. So there's other um costs um when salaries increase we pay FICA TRA PR. We're also paying a full year now of the paid family medical leave uh percentage, not a half year like it was this current year. >> Um and then uh we're also um in that priority based budgeting adjustment column that negative 181,000 is um a single coverage insurance contribution. That's the estimate or the final estimate um of that contribution um of the uh single coverage. So that overall difference there of 2,56 on that last column is what our benefits budget overall is increasing um in our general fund.
055purchase services. Um that includes um the main costs there um is not only some of our uh fixed costs. Uh think of like our um some of our areas that we have for our facilities. um you like our snow like our snow plowing services, things like that, but also transportation, >> some of those areas. Uh we have some areas within our long-term facility maintenance budget. About half of the uh inflation and other adjustments uh is our transportation. So again, um like Director Parker mentioned, um is inflation included? Yes, in that contract. Um what's interesting this year is the inflationary cost uh for transportation uh was actually offset by the reductions transportation was able to make this year. So, um, their budget's about level and that's, um, kudos to transportation, um, for being able to, um,
056cost contain some of the services. So, um, their reductions actually offset that overall inflation. Um, other areas are our insurance, property and liability insurance costs. um there is about $200,000. We'll be receiving a final estimate um within the next week. So um depending on what that is. Um and then also our paid family medical leave um substitute coverage. Um we had added some additional um in our priority based budgeting adjustment there. >> Marie um director Lowour had a quick question. just wondering about subcosts. I mean, how how has how has that been increasing? I have no like just historically is is that >> Yeah, that budget has been increasing over time and I'll I'll defer to uh Chris if you have any additional I you know I've been seeing it increase um just overall on
057our regular substitutes. I don't know if you've been able to see a trend. >> We haven't really seen we haven't daily sub rate in a couple of years. So that's holding steady. The volume is increasing. Um and some of that is due to you know Minnesota people taking days off. Um some not everybody takes like the full like 20 weeks. Sometimes people just take a two week time period or whatever. So those those costs are increasing. Um but overall I think I shared previously that we were kind of at about the same number of like maternity leaves um at at point in time um I think it was the spring as we were the previous year. So we're not seeing a ton of um increase in leaves but those leaves are much longer and so
058there is a there is an increase but not opportunity to dive into the whole thing. And how about the rate the the cost of of you know the hourly cost of the sub is that >> so the the daily rate of this that we pay daily subs is the same as it's been for two years that hasn't that hasn't >> we'll bring if we're going to change it we'll bring it to you for a board action to set the rate at a at a higher rate. I think it would be good to once we and there's a lot of unknown with some of the legislative changes from the state, but it would be good to get a handle on some of the sub impact um you know with the paid family medical leave expansion things
059like that just to see I'm assuming we're going to incur more costs for longer leave. So >> yes, >> yeah, I would just piggyback on that uh with Director Lowour. Um you know it's just an unknown variable. I think that just kind of scares me, but just gives me some pause just not knowing what that's going to look like because we don't really get much of a notice. I don't I don't imagine, but you know, it's kind of a triple hit for us financially. You know, we pay into the program, we pay subs, and we pay salaries. So, it's just something that's a big expenditure that it's hard to quantify. So, appreciate your work around trying to best gauge that based on this new landscape that we're working within. >> Thank you. And then the
060last category up there is our supplies, materials, and the other is equipment um and our debt. We have a a debt account in there which is our um our lease levy uh that um it covers one of our certificates participation. And so what we have um in that inflation another adjustment that is one of um not only our our lease, we have one of our lease levy adjustments. It's on um some of our uh like our ice ice arena and some of our other pieces of our um long-term facility maintenance costs as well. So there's about uh $1.2 2 million of LTFM that's being adjusted there um in addition to some of our uh lease levy adjustments. Um but we're also adding um some of our other costs um that have changed within there that
061have increased um in the materials. Uh there's some construction um within our operating capital. Um and then the curriculum for uh AEU which is close to about 200,000 and then there's some other reductions within um our applications and our lensure and um some materials. So that overall is just there's a lot going on in that category um overall but just accounting for all those pieces and some of those adjustments. So quick question. So when we um priority based budgeting process we needed to cut like I think we were targeting 5.4. So does this the four >> four 4.6 Six is the final. And the reason why is a couple of the priority based budgeting items were actually um part of more of a chargeback or revenue. There was a $100,000 for uh athletic fees for
062athletic >> Okay. >> And then there were a couple chargebacks um for not only nutrition services but community education. So they're not treated as um expenditures. They're more of a revenue piece >> adjustment >> or a chargeback adjustment. >> So we're still >> you're not seeing the full >> piece there. >> So you're able to code that somewhere else basically. >> Correct. >> Okay. >> It more offsets your Okay. >> your cost. >> Thank you. >> Any other questions before we move on here on expenditures? Yes. >> Um thank you. this is super helpful and I'm looking forward to the the detailed report. >> Um the one maybe request for the detailed report is and I was just reviewing last year's and it was really good. So thank you for that. The portion I'd love
063to see is some of the um drivers. So like a headcount of teachers, headcount of paras from the preliminary budget to whatever the preliminary or I don't know if it's a preliminary or final budget that we're going to be reviewing next. But um that'd be good to see some of the key drivers uh for some of those major assumptions. Thank you. So then what the final um piece here this evening is just giving you a a big picture of um what we're projecting our July 1 fund balance to be and again these are preliminary estimates um again the general fund uh is about 6.1 million of our fund balance and then putting those pieces together what we're projecting next June 30th um ending fund balance to be what I'll say about the general fund is
064um in that um one update we provided um on our projections we are seeing a little bit of a shift in our um unassigned fund balance in the positive direction of about a half million and um we could be looking at you know 1.3% ending the fiscal year um And again, yes, and then growing that. Um, >> and so we're we're trending the right way. I think we'll see some um growth again um in what we're doing here as well. And we just we need to work through um some of the enrollment pieces as well as a district. Um and then for food service and community service funds, again at the time of the projection here, we're still working with both departments. Um these were estimates done from the finance team. Uh again, both funds
065uh continue to see um some significant um uh they're they're growing in positive direction. um where in the past uh back in the co years um they weren't um as um I would say positive and so um food service again um they're utilizing some of their uh funds to invest um not only in salary um in the past they've done equipment um in the kitchens and then community service fund um they are again the middle school athletics program um that they're providing that service and again they're um also uh planning for it uh within their next year budget as well and um they're also planning some changes in their program building construction um this will be um little bit trickier to project this one um because of the projects and how they're the timing and
066the end how they'll be ending with the school school building bonds. Um we do plan on uh utilizing the balance of the school building bonds um both what we issued in 2024 and 2026 the current year funds. So, uh, what we'll have remaining, um, at the end of June of next year will mainly be the LTFM bonds. So, that's where Mark came up here >> this evening and started talking about utilizing LTFM bonds. That's what you see there, that projection. When we issue those LTFM bonds, it's usually to pulse funds in over a couple years to help balance out the PO. So that's what you see there with that 18.2 million debt service fund is what pays it back for the LTFM and school building bonds over the timing of those bonds over those years
067and we have schedules. So those have been put together. We do sometimes have a projected fund balance because we levy 105% and so we use the debt excess against our levy um when we can which helps reduce that overall. And then the custodial fund is not the custod it's it's a scholarship fund that we as a district are the pass through and we manage that. So again as needed we we pass through the funds um to the students or the colleges um as well. So again um what we're looking at here um this is preliminary and again may change um within some of these categories but again overall right now the revenue um and preliminary expenditures are there. Again, we are being mindful. We are spending down the restricted fund gap balance categories in a
068couple of those funds and um some are growing. Um but again, overall what you see there is what we're projecting right now. might change some by June 23 when we come to you with the final, but we will have updates in the budget document for you as well. >> Great. So again, um the timeline before you June 23rd, uh we'll be coming with a more it'll be briefer uh the presentation uh for your approval, but we do plan to get a budget document out to you. >> What What's your anticipated delivery date on that? Um, I would probably about a week and a half out. >> Okay. >> Enough time for the board to have [clears throat] >> enough time to review. >> I had one question and I did not ask this in advance
069so I do not expect an answer here and now, but um, watching some of the legislative session that just took place and I think Dr. Funk has talked about it in his legislative update. There are some districts that have individually passed legislation to take fund balance from food service and apply it into other aspects of their budget. Is that something that the two of you ever dis I mean like I don't exactly know 4 million seems a little excessive for a food service balance. I don't know what a healthy one would be. You guys might have a better sense to that. Is that ever something that we >> we could >> would want to pursue legislatively? >> Again, I I think we could at the district level. I also think this should be something at
070the state level that this should be addressed. >> Yes, I and I totally agree with you. I just know that it seems like the ones that are passing are the individual >> Yeah. But I don't know how much that's been food service. I think it's been they've had money left over from a bond and they want to they want to transfer to operating capital. >> Okay. >> Um so I don't know if I've seen a food service one. Um >> Okay. >> But but they have Yeah, there are some that have you know um restricted that they've been able to to transfer. But again, I think it's a worth the conversation. >> Yeah. >> At the uh and we could I could certainly give it a run at the at the food service. I think
071we, you know, Marie does a great job of looking at chargebacks. What can we charge back as far as what the ALC, what the state allows us to do within something like food service >> and we've been discussing internally some different options too because I still think there's some options we can do internally before we go to the legislature. >> Okay. Okay. [snorts] >> And I I it might be true that the next legislative session will be more amendable to that. >> Yes. that type of activity on a broader level >> could be >> but something to >> for better for worse >> right [laughter] and if we could just start running numbers theories or ideas to start thinking about that in advance but >> great well thank you for this update um I know
072we asked questions as we went along but yes >> but one other thing um I just want to say the I know I've been brought up the restrict or unrestricted fund balance quite frequently um and it seeing that uptake is pretty cool thing. So that's the first time in I think five years of that going positive. So that's a awesome thing. Thank you. >> You believe it when the audit comes in. [laughter] >> Right. >> Yeah. No, great job, Marie. >> Thank you, Marie. >> Okay. Our next um item is moving into a close session. And so I will read this. Um pursuant to Minnesota statute 13D.03, 03. The governing body of a public employer may by a majority vote in public meeting decide to hold a closed meeting to consider strategy for labor negotiations
073including negotiation strategies or developments or discussion and review of labor negotiation proposals pursuant conducted pursuant to sections 179A.01 to 179A.25. I will go ahead and make that motion to adjurnn to closed. Can I get a second? >> I'll second. Second. All those in favor of moving to close session, raise your hand and say I. >> I. >> Opposed. We will move to close session.