7-8-2025 Appoquinimink School Board Meeting

001Good evening everybody and welcome to the July 8, 2025 ACUMC school district uh school board meeting. Um the board went into executive session at 5:30 on motion of Mr. Abrams uh second by Dr. Graham to discuss certain legal and personnel issues. We are now out of executive session and this is our regular meeting. We will start this meeting as we start all our meetings with the pledge of allegiance 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. All right, we have a uh fairly packed agenda tonight. Um but it's an exciting night in the sense that we are going to be swearing in a new school board member, Mr. Higgins. And this is our first meeting in

00210 years without uh Miss Wall, who did not run for reelection. Uh so uh we miss her already, but have every confidence in Tim. Um on the agenda tonight, we've got a special recognition, um public comment. We will swear in our new school board member. Once that occurs, uh, we will then elect officers for the coming school year and we'll do appointments to of the schoolboard members to certain committees that we sit on. There'll be some reports. We've got some old business, some new business, a personnel report, and then we've got meetings for August that we need to schedule. Um, there with respect to the public comment section on the agenda, I want to um adjust the agenda slightly. Um, we have one speaker who wants to speak about a certain topic involving IEPs and

003that's wonderful and fine. And then we've got a number of speakers who all want to speak about reassessment and tax rates. And so what I want to do just so everybody has as much information as possible when they when they speak to us, those who have signed up to speak, um I'm going to move the report about the reassessment and the tax rates. It's on the agenda as tax warrant. We will move that up uh right before public comment. So we will get that presentation. then we will have the public comment and then the board will go on and discuss the tax warrant and come to a decision. I just thought that would be better than um having public comment earlier in the meeting and then not getting to the tax warrant later and that

004way those who are commenting will have also had the benefit of seeing the presentation. So with that uh next up on the agenda we have I'm sorry is there an adjustment to the agenda Mr. Burr? Dr. um under item 12 letter I conversion of bonnet anticipation note to bonds that'll be tabled until next month. We're waiting on paperwork from the treasur's office. That's the state treasurer's office. Yes. Okay. All right. So with that one adjustment then uh we will go to our special recognition. the high school indoor indoor percussion. Good evening everyone. I'm Laura Sebastian, visual and performing arts coordinator for the district. And I have the pleasure of introducing the AOquin High School indoor percussion ensemble for recognition this evening for being recently named Atlantic Coast Champions um in their division. And before we

005recognize them, their fantastic band director, Ryan Mosley, is going to share a little bit about their accomplishment. Welcome, Ryan Mosley. Thank you everybody. It's a pleasure to be back up here in front of the board um being able to present uh more wonderful things that our students have done in our program. Um so I want to first off uh recognize up here what we have is members, not our entire but members from our 2025 indoor percussion ensemble. Um as well as their overall instructor Mike Pernell. Um, so this year's accomplishment is a little special because we actually have won our third championship in the past four years for indoor percussion in the top eight championship um in the Mid-Atlantic region. Um, which is a fantastic feat and accomplishment almost four for four. We won't talk

006about that. But just too close. But again, um due to the hard work of the students, um our instructors that aren't able to be here, um all of our parents that are some of them are here tonight, all their countless hours building props and moving the trailers and vans and things all around for all the students. Um but also the support from the district. Um and again, I do want to I don't want it to go um uh unnoticed or unsaid, but uh I cannot thank Mike for all his hard work. Mike is uh basically runs the indoor percussion. I kind of am the the King Charles or Queen Elizabeth kind of sign papers, things like that. But Mike does all the heavy lifting, organization, and we are p privileged to have one of the

007best percussion instructors in TUB in our district working with our students. So, um I would like to give him a special round of applause as well. [Applause] So, without further ado, um this is our uh C holding their uh this year's banner. You can see all of them displayed in the comments at Appin High School. Next time you go through, Emily has one quick thing to say. I'm sorry, I wasn't going to talk, but hello everyone. Um, it is an honor uh working with these groups of students and with Ryan Mosley and everyone at Aquinic High School. Um, on top of this recognition, the drum line also did play place third place in the East Coast region um in a organization called uh Wintergard uh International, which is WGS, a national organization. They placed third

008place, beating out some of the best high schools on the east coast, which is a testament to their hard work and the support from uh the community, from the district, and from the band director and the music program at Aquinic High School. So, thank you again um for the recognition. Um thank you for lending your students, those of you who do, um to our program and entrusting me, uh Mr. Mosley, with being able to lead this great group of students. Thank you. [Applause] forward. Good. Can we go down? Let the room clear out here for a moment. Okay. Next on the agenda, we have public comment. And the first person we're going to hear from is Miss Kim Tate. Yes. And you know, just for the record for public, this applies to all public comment.

009Um the board encourages speakers to be constructive in the spirit of identifying issues and solutions that will better serve st students in an effort to afford an opportunity to hear from all members of the community who wish to address the board. Comments are limited to three minutes or less per speaker. Uh time cannot be given to another speaker. If you're mids sentence or midthought at the three minute mark, I will let you finish that. I mean, but if it gets to be like 3 minutes and 20 seconds, please don't make me um gavvel you to a close. Public comment is an opportunity to address the board. The board will not participate in discussions or respond to public comments. U members of the public are urged to address concerns at the local school level or with

010district office staff prior to addressing the board and no person shall initiate charges or complaints against individual district employees at a board meeting. Such charges or complaints shall be presented to the superintendent or the board in writing signed by the complainant. any defamatory or abusive remark shall be ruled out of order and the speaker's privilege of addressing the board may be terminated. We have never had to do that and I don't anticipate that we're going to have to do that tonight, but just be forewarned. Um, in order to further student business and our mission, we will limit or eject attendees virtual or in person who disrupt the meeting or engage in vulgar or obscene expression. Again, we have never had to do that. I don't anticipate that we're going to have to do that tonight,

011but you are forewarned. So, with that, Miss Tate, you have three minutes and there'll be a little clock. See that little clock over there? That'll count you down. And uh the floor is yours. Okay. Try to speak quickly. Um first of all, I want to say hello to uh Dr. Burroughs. Dr. Burroughs and I go a long way back. Um, I've been with the school district for 24 plus years. So, I've had children, I've had grandchildren go through the school district. The reason I here I'm here tonight is for a couple of reasons. The first one being an issue that I was involved with involving a grandson that needed to be picked up due to illness. And uh, long story short, to stay within the three minutes, I was denied access to my grandson. And

012uh I have spoke with a number of members reportees to Dr. Burroughs and I did get an email just this evening that I just read that came out this afternoon and even with that email I feel the matter is still unresolved. Um it did it did come out that my grandson should have been released to me but he wasn't and I feel I'm owed a personal apology from Reading Middle School. Secondly, I have a grandson in the school district. Um, he has lived with me all his life. His name is Malachi Tate and he has been living in my home ever since he came home from the hospital. So, I feel that I represent him um the way my daughter would want me to represent him, but for some reason I'm not even being allowed

013to be a part of the IEPs or manifestation meetings and I have issue with that. So, um I don't know if there's a personal vendetta uh against me. Um, I do know that I've been very respectful of the school district ever since day one when my middle children um entered into Middletown High School. But um the thing that just bothers me most is that I feel that um my grandson's father and my grandson's mother who is my daughter um they have very busy schedules and you know how jobs are these days. Uh, too much absenteeism is not a good thing. So, I'm retired. Thank God I'm retired and have been for quite some time actually since 1996. So, you can count the years. But, um, those are just a few of my concerns. Um, Dr.

014Burroughs, I don't know why it's so hard to get in touch with you. Uh, I I I just hope my name doesn't scare you when you see it come across your desk, but I feel that I had the kind of rapport with you where you and I could talk about anything in a respectful way without um being deemed um coming in with the wrong tone or anything like that. So, let's see how many minutes I got left. Nine seconds. Eight, seven, six, five, four. Thank you very much guys for listening to my concerns. All right. Well, thank you very much and and somebody from the district will be getting back to you. Oh, I don't get an answer tonight. Oh, okay. Okay. The next set of public comments we have all deal with reassessment and

015the tax warrant. So before we hear that public comment, we will hear the presentation about the tax warrant. Um and so Matt, are you making that or is Scott making that? Okay. So the floor is yours. You want to go ahead and kick it off? Jump in. You want to go ahead and put the presentation up? Sorry, Steve. I should have told you we're going to adjust the schedule a little bit there. All right. Just before Scott, here it is. Kessle jumps in, I just want to um while we've been searching for a director of finance over the last over month, um Scott Kessle and Chuck Chuck Longfellow have stepped in to assist us um as we're in this transition. And so tonight, Scott Kessle will be presenting the tax warrant and I'll be jumping

016in at different points. Uh Chuck Longfellow is also online um and can chime in for questions or anything like that. Uh just a little background on myself. I was a former uh CFO for Brandy Wine School District and Caesar School District. So I'm here to uh help with this part of the presentation. Um we're going to talk about the tax warrant. Um, thanks. Uh, we're going to talk about the warrant, uh, the tax rate components. Then we're going to get into the rate calculations, the basis for the recommendations for the operating tax, uh, the debt service match and tuition taxes. Then we'll we'll come to a summary and then at the end we'll talk a little bit about the next steps. So, a little bit about the tax warrant. Uh, each year the, uh, tax

017warrant is due to Newcastle County by the second Thursday of each July. So, this year, that's July 10th. That's the purpose of this meeting, so that we can, uh, approve the tax warrant to go to them. Uh, the calculations are based on historical and projected revenue and expenditure data. It's also, uh, on the state budget, the bond bill, and tax data from Newcastle County. some of the major factor factors and assumptions that we took into consideration. Uh the school district uh total school taxable assessed property value for this year was 15.4 million uh billion dollars and that's a figure that we get from Newcastle County and we received that on July 7th which was just yesterday so it's pretty up to date. Uh this year was pretty unusual because it was the first time that

018reassessment since 1983. So we had to uh adjusted rate back in last year. The the uh amount of the total assessed value was 2.7 billion. Those are 1983 uh dollars and this is FY26. It's now 15.4 billion. So that'll change the tax rate dramatically. Um, so, uh, the school district assumes 2% for delinquencies, which amounts to, uh, $37 million. And we also take into consideration assessment values that are at risk that are under appeal, and that's, uh, $245 million. Continuing on the uh uh assumptions uh after accounting for those adjustments the 2% delinquencies and u uh the at risk the per penny value for uh the tax rate is $1.48 million per penny. Jump in with a quick That was ominous. Uh can I jump in with a quick question? Sure. You say after accounting

019for these adjustments the per penny is 1.4. Um if you go back to the previous slide. So I I get the fact we have to to adjust for delinquencies cuz for better or worse not everybody pays their tax bills and that's been true forever. But the next bullet point says that the appeals at risk are $245 million uh dollars. So that's the total value of all people who have property tax appeals pending right now with Newcastle County. Correct. Correct. But we don't believe or we're not using a formula that assumes that if they're successful in their appeals that much gets deleted from the overall assessment base, are we? Cuz that's not what people do when they file their appeals. So what are we assuming? Are we assuming that the average reduction saw is 25% 30%.

020We're we're using as standard practice has been to use the the whole amount at at risk. So, you're subtracting the whole amount at risk, correct? But even if I'm success, like let's I didn't file an appeal for my property, but I could have, I suppose. Um, but I mean, if my house is, let's say, assessed it now at 500,000 if I was appealing it, I might say it should be worth 400,000. I'm not saying it's worth nothing, right? Correct. So, should we have subtracted the whole amount? that that's that's what we have done standard in in across the Newcastle County. This the districts in in Newcastle County tend to typically reduce it by that that total amount. All right. Well, that's my question. Okay. Thank you. So, and and and on the other side of

021that, you know, the delinquencies could could range. We use 2%. They can range and we have an allowance up to 10%. We do 2% and that's that's pretty much a standard practice across Newcastle County as well. Well, I assume that's based on historical experience. Yes. I mean, we have no historical experience to speak of with reassessments because the last reassessment was 1983, correct? Yeah. Okay. So, we're back to the 1.48 uh million per penny. Next slide. All right. This is my slide. As we look at uh the budget for next year, we encounter a few things that have significantly impacted the budget for this year. So the first being increased utility cost. I think every homeowner and everyone can um empathize with that with the increased utility cost. We have 24 buildings. That increased utility

022cost is to the tune of about $1 million more than what was budgeted for this past year. The second item being rise rising special education population. Over the last few years, we've seen a special education population increase along with services are required to meet the needs of each and every student. We did not take into account in our FY25 budget the amount that this increase in special education population. That was about 1.3. We were um the costs were over budget there. The third being a national teacher shortage. We've worked hard to address the teacher shortages in our district. We are very thankful for a community that supported our teachers with a more competitive compensation. Even though we're still the lowest in Newcastle County, we became more competitive in that market. We were able to reduce

023what used to be over 100 teacher vacancies to 21 by the end of this school year, and we're thankful for that. We are still struggling as a district to find teachers in many of our special programs in particular in our RISE program. Those are the programs where students with autisms are students with autism are. We work to fill those openings and with that we've offered stipen stipens and bonuses to teachers and pair professionals to fill those positions. That cost was underestimated by about $2.8 8 million this past year. With these three items and with the inflation that we're all experiencing that has impacted the carryover line in our FY26 budget, we're going to have to do two things to address these three issues. One, we're going to have to look at cutting spending. We've identified

024over $2.5 million in cuts, which I will outline on the next slide. And we're going to have to look at increasing revenue. It's unfortunate that by not doing anything tonight um we will not meet our carryover balance for the next fiscal year even with the cuts that we're going to present that we're going to make for next year. Matter of fact, even with us not doing an increase of 10%, we're not going to be able to meet carryover without going to referendum and going out of referendum cycle. So, at this time, I'm going to look at the cuts that we have um are putting into action as we go in the next year. So, the $2.5 million in cuts, we're looking at a reduction of school budgets, which is about 10% to each of our

025school budgets, which is to an account of $136,500. Reducing department budgets by $610,000. We're doing staff reassignments out of district office, which will save us $260,000. And we're doing program initiative and position reductions, which is $1.5 million. Okay. So, now we're going to talk a little bit about the tax rate comp. Sure. Dr. you explained it um understanding the rising cost but not realizing the issue until May. Could you flush flesh that out for us please? Certainly. So in May the board well we'll start with in our May financial position report we were showing seven we was reported to us by our finance director that we had $7.9 million in carryover which is kind of like our savings account um that we need to have as a district. We need to have one month's payroll

026carryover according to state law. So one month's payroll for us is $4.3 million um carryover. So, we were in great shape. If you looked at the $7.9 million on that financial report since our uh financial director resigned, it has been identified that um underestimated payroll by one payroll and also within that is EER pays within that underestimate. So, Eer pays are extra pay for extra responsibility. So like it's like coaches, teachers are doing extra duties and things like that are included in that that was underestimated by $2.8 million. The other part of that is there's other expenses outside of a salaries. So everyone has a budget within our organization. At the time of the report, it was reported that we had $1.65 million out in other budgets. In fact, we had $3.3 million that was

027out in other budgets. Now, since May, the district has worked to pull back as much as that we possibly can, but the end of the fiscal year is um ends at the end of June. So, we pulled back as much as we possibly could at that time. Another area that was identified was for summer school. So, summer school salaries were put in a budget line that was showing $3.3 million. And so that covered summer school salaries. If you just looked at the overall budget, it looked like we had $1.7 million in that budget still after paying summer school salaries. But in fact, if you've delved into the lines and within that budget, only 20,000 of that was local money. The other amount of that was federal money, IDAB, IDAB money, which you can only use

028for specific things. And one of those not being summer school pay. So, it looked like we were great in that line, but we actually weren't. That got pushed into our local salary line. So, that accounts for why we're looking at a $3 million carryover at this point. Does that answer your question? Yes. Thank Okay, so we're going to jump back to the tax rate components. Uh you see on the slide here, we have four different tax types. We have operating tax. This is also known as the current expense tax. And this is revenue that uh we use for general operation of the district. Um specific programs that were voted on through referendum. Uh and then this act this tax rate requires a vote from a referendum to increase it. It stays the same if there's

029no vote. So uh the next uh uh component is the debt service. This is uh revenue that is set uh by the board by how much we need to cover the bond and interest interest payments for capital improvements uh major renovations, new buildings. Uh the match tax, this this is a a tax that could be levied by the board without a referendum for uh specific purposes and we'll talk a little bit about some of those in future slides. And then the last uh type of tax is a tuition tax. And this is tax that's related to our special education population for students that go out of state for placements uh for for services even within the district or uh uh placements outside in within the state. So we're going to talk a little bit here

030about the rate calculations and just kind of showing you the math behind this. Um so if you look at the general operations, we've determined that the tax rate appropriate to generate uh the revenue neutral plus the uh 10% uh for the reassessment allowance. You take the 15 billion uh dollar amount divide it by 100 and the tax rate that we converted was uh 35.41 cents to generate revenue of 54.4 million. And that's the the general operations tax. The next the next one is the debt service. And this one is done before we before we I mean I just want to sure stop there for a second. So the 35 what is that? Cents. Is that the way to refer to it? Correct. Correct. So the 35 cents that you're recommending here on this chart includes

031a 10% bump on operating expenses. Correct. And if that wasn't there, instead of 35 cents, it would be 30 roughly 32 cents. 31.9, I think, right? Correct. Okay. Somewhere around there. Yep. 32.8. Yeah. Okay. I just want to make sure I was reading that right. Yeah. We'll we'll is without the Well, take multiply that third.35 by like 0.9 norm. And that's what the rate would be if um correct. if you if you weren't going to have a 10% bump and you'll we'll we'll go over what the what the impact of that is on a future slide here. So, yeah, one other question. Um, sure. See, on general operations, we're not using the formula of subtracting any delinquencies or variances, but we are on the other ones. Could you explain that? Yes. And and there's two

032different uh references in in the code. One for this one and and one for the other three tax types. And this one here is in a year uh of a referend of a reassessment, which this is one of those years you're you have an allowance of the 10%. Where the other tax rates where you set them, the code allows for up to 10% in those, but we do the 2% for the um um uh delinquencies and the um the amount for the at risk assessments. Does that make sense? So operation budget is assuming 100% in this model of uh tax revenue collected for operational local operational expenses. Correct. Okay. Thank you. And so that and that actually has a different per penny value. It would be the it would be a little bit higher. So

033um I'll go ahead and continue. If you have more questions, just let me know. Uh so uh on the debt service tax the one we were talking about for the ma uh major capital improvements renovations and new buildings we we are we need to collect 11 million. So the tax rate that we set for that was the 7.5 cents and you can see the equation there with the 15 less the uh 2% delinquencies and the uh at risk assessments that is that's revenue neutral essentially. Correct. Correct. Yeah. Okay. And we'll we'll talk about that too in another slide. So, uh the next uh page we got is the tuition tax we talked about with the uh special education populations. It's basically the same for it's the same for formula for the previous one and we

034came up with a rate of 17.43 which generated revenue of 25.8 million. The match taxes calculate similar. We'll have we I'll show where that is broken down, but it's the same it's the same formula for that and it's 3.41 cents and that generated revenue of $5 million. This is generally to show you what the equation looks like on these numbers, tuition tax and match tax. Tuition tax is a tax that we always have the flexibility, if you will, to adjust every year because tuition tax covers, for those who are here or don't realize, it's special education costs, which by law we are required to pay whatever they are. And we had a presentation about this at our I think it was our April board meeting. Um, special education costs have um, skyrocketed in recent years.

035I think it's fair to say when I first joined the board, it was a very, very much smaller uh, line item in our budget. Um, it there has been a tremendous growth in special education costs, but our hands are essentially tied on this. We have to raise the money to pay the estimated cost, just so folks are aware. So, there's no 10% cap. There's no cap really at all. And this number, just so I'm clear, this number that you're recommending is so we can pay our special education costs. Correct. Okay. And then on the match tax, that is a tax that every year the general assembly puts aside a pot of money and it says if you raise a certain amount of money through the match tax, then we will match the money you raise

036and give you essentially extra money to pay on different things. And so that tax is driven by the formula set by the general assembly essentially. Correct. Correct. That's for minor capital improvements. So they have a 60/40. We we we put up we have to put up 40% to get that 60%. Right. But if we didn't do it, we wouldn't get any money. Correct. Yeah. Okay. To the match tax, I'd spoken to to Burough. So maybe Dr. Ro, you could speak on this. Um these programs in the match tax are all programs that are already implemented in our school district. So there isn't extra funding for new programs, correct? These are just this is money for programs that we already have which if we do the match tax the state is in essence paying 60% of

037what we're already doing in those programs. Is that correct? Correct. And Dr. Burrows. Yes. Dr. Graham. Um so I just wanted to comment as we progress um about the tuition tax and so far in the presentation we've heard a lot um of commentary around special education. I just want as a board obviously I know our perspective and I just want the community to understand that we are not at all blaming the needs of our students as it relates to special education. We recognize and we accept the responsibility to educate our students. And so I just wanted to be clear. I just wanted to make sure that I'm outwardly saying that because I think sometimes as we start to outline the reasons for the deficits, we've outlined that special education is one to the tune of

038about a million.3. And I just wanted to again explicitly state that we are not blaming our special education students in any kind of way and we happily and gladly accept the needs of each of our students and we remain committed to that. And then as we continue to progress through through this presentation that we keep that in mind that as u Mr. Forest just mentioned we are actually obviously required by law under our tuition tax to meet their needs but aside from that we do it happily. And so I just wanted to make that comment because as we continue to outline the reasons for where we are, we know that special education is a component of that. But it's it is just that a component of why we are in this situation. So I appreciate

039your explanation earlier, Dr. Bro, so I just wanted to chime in from the perspective of of the special education lens. No, I appreciate that. Thank you for bringing that to light. Right. And before we move on, for those who are here in person who suddenly heard a voice over the speaker system, I failed to mention at the start of the meeting that one of our members, Dr. Toshiba Graham, could not be here in person tonight, but she is participating by Zoom and that's whose voice you just heard. Uh, and I also want to say thank you uh Dr. Graham for making that point. I certainly hope I did not sound negative. um you know, kids with special education needs are entitled and need to get those needs met. And so um we do what we

040uh what we should do uh to help that population. Um it just costs money. And so I know a lot of people are here about the property tax rate that's going to be set tonight and I just want to make clear that that one's going to be set no matter what. Um we have to address those kids' needs. But but thank you for your comments. So thank you Mr. Forston. Right. And we would estimate those costs from year to year depending you know sometimes they can spike any year or so at the end of the year we see how much is less left and we always take that into consideration when we're estimating the the tax amount the total revenue we need for the following year. So it it's not like it builds up. It's

041it's included in the calculation for the following year as well whatever we carry forward. So have a comment. Dr. girls, can you please just give us an example of that spike like what it was to what it has increased in terms of the percentage special needs population and or need? Yes. So over the last um I'm trying to remember the chart that was presented in April, I think it was like 411% uh spike in particular in our students identified with autism. And that's is going to continue to increase as we move forward. Thank you. All right, guys. No private conversations. Okay. So question I have for the speaker norm. The number that we have [Music] few days ago from our assessment rate to today is different. Looks like it's from 5227. No, I can answer

042that question. I can too. Okay, I'll let Scott answer it. No, we just got we got a a new assessment which was higher which will So the new assessment that's come out where do we I understand where we got the number from but how did they get the new assessment number? So in other words they've added property in to increase that number. Yes. So they what they did is they took properties that hadn't been assessed and I think Mr. Forson's going to touch on this here. properties that weren't assessed all last year. For example, like Target, um, Sprouts, Dash in I don't want to take your thunder, Richard, so I won't say anything else about that. Any new house that was built in the last year, the county didn't assess. And so they went through,

043so basically all those properties got a free year of not paying taxes. And so they went in now and have assessed most of those properties. They still haven't assessed all those properties. And that's where that new number has come from. I and I understand that. So my question comes circles back around to then if we went from 24 to 25 with no as the district as the county did its assessment now we're into 26 we've now taken a number that includes Target sprouts when any new business that has come in. So then we're technically not comparing apples to apples. I mean, we're we're actually you're we're taking stuff that wasn't in the 24 rate and now we're putting in a 27 rate. So, Norm, let me see if I can answer the question. I go

044ahead and explain Yeah. kind of what it means cuz um so first off, what Dr. Dr. Burrus just said I said at the last our workshop and I think I might have even said at a meeting beforehand during the reassessment prop historically because Apoquin is growing every year new houses get built after and moved into after July 1st during the course of that fiscal year and new stores get built and when a certificate of occupancy is issued if it's issued in September if it's issued in November if it's whenever it's issued that triggers the county to go out and say Oh, you just built this new house. They estimate what it's worth. They assess it and they give you a tax bill. And the tax bill you pay is for essentially the remainder of that

045particular fiscal year. And then starting the next July 1st, you pay on a regular basis a yearly amount. Um, and so what happens is if if something gets built in the first quarter, it pays taxes starting at the beginning of the second quarter and pays three quarters of what it's normal fullyear assessment would be. If it gets built in the second quarter, pays half a year and and so on and so on. Um during the reassessment process, unbeknownsted to at least some of us in the district, um Newcastle County was so busy reassessing everybody's properties that they did not do any supplemental assessments during this last year and in fact I think even for some time before that. So for example, Target opened in October. I actually haven't been to that target yet, but but

046I hear it's very nice. Um, it was not assessed. And in fact, I called the county because I was curious one day in November and said, "I wonder what their assessment is. How much are they paying us?" Answer: none. Nothing. So I when I called the county and said, "What's going on?" That's when they told me this story about, you know, we're so busy with the reassessment, we're not doing any supplemental assessments. Sorry. We did alert your CFO to the fact you wouldn't be getting in any extra money. Historically, um, because APO is growing so much, we would get an additional 2 to 4% bump in our property tax revenues every year for all these new properties that would come online during the course of the tax year. That didn't happen this last year. And

047so if you assume that number was 2% that means that's on a $50 million that we would have ra that we otherwise raised that's another million uh that we didn't get in revenue because the county just didn't do these supplemental assessments. And when you look at just Target specifically for example Target has now been assessed effective July 1st 2025. Its assessment is $22 million. It's a nice store. It's a big store. $22 million. They would pay us roughly $130,000 a year in property taxes. If it had been assessed in last October when they went when they opened that they would have paid us threequarters of that, roughly $90,000 in change. And so that's $90,000 we didn't get just because of Target this past year. So, you know, I mean, we'll talk about this more later.

048I mean, we're in a very very precarious financial position right now because of some miscalculations. If we had had supplemental assessments during the this past year, we'd have at least another million dollars in the bank and our situation would be that much rosier. Now, there's no use crying over spilled milk. But what happened then, Norm, is last week, I'm sorry, maybe it was two weeks ago, we got a preliminary number from the county that said your new assessed value is going to be 15.2. 2 billion and change. And then was it uh Monday, I guess, maybe it was um we got it finally got a number from the county that said, "Oh, by the way, here's all the properties we didn't bother to assess the last year. They add up to approximately another $240 million

049in assessed value, which strikes me as low, but that's what they've told us. So add that to the number and it and then there were some other adjustments because the count uh the general assembly increased uh exemptions for seniors for properties they own. So then you have to adjust that just happened June 30th with the passage of the bond bill. So adjust that down. So that gives us a new assessed figure that we got on Monday of 15.3 billion. So things are moving quickly right now. But that's how we got to the figure that's on the slides. today. I I Okay, I'm with you to that. So, what's the what was the rate for the revenue neutral parts? There was 32 3.34. Uh, do you have a [Applause] speaker? Is that what you have? Uh

05032.48. Yeah. 327 48.48. So I'm just going to go back and just this if we've added all the new stuff that's come on since make sure I phrase this right. I thought when we went from the reassessment to today, we weren't counting anything that was added in to stay when the 32.48. So, we've added 10. You're we're adding that's how we got to 3541. I'm just making because that number is different than what I Just trying to make sure we got there. So numbers on that sheet is 15, right? Number 15.3 with the or 15.4 in essence with the new properties. So effectively by adding all the extra property that came in this week, you've lowered we're lowering the rate. Correct. as it goes up. So then I'm going to go back to our question.

051Are we actually comparing everything the way we're supposed to compare it back to not adding anything in as we move forward into 20 into this year? So, Norma, if I understand your question correctly, I think well, and Scott and Matt check me on this. And I'm only just talking about the recommendation because quite frankly, I still don't know how I'm going to vote. But number last year, we raised 49 million and change through with our general operating tax rate and our assessment base that we had. Then you took the money we raised last year, 49 million in change, multiplied that by or added in 10% and that got you 54 million in change. Correct? And then you took that 54 million in change and said, here's our new assessment base. What should the rate be

052to equal that number? And the effect of that is essentially that as I do the math that individual people tax general operating tax rate doesn't actually go up a full 10% because there's additional properties that bring that number down. Not nearly as much as we'd like. I mean if if our assessment base had gone up 10% the tax rate would be exactly the same. it wouldn't change at all because you'd generate a full 10% of additional revenue based on the new assessments. But the assessment base seems to have gone up less than it should be should have. But you've added that in. So the the net increase is is less than a full 10% for for uh individual property owners on the general operating. Right. I mean correct. Okay. I mean from so with the

05310% increase if we went on the number that we had the 15.2 it would have been.3573 but since with the additional correct that came in right it's gone down to 3541. So it's gone down about um 10,000 right? Yeah. So then the per peny rate changed correct that's yeah it was 1.47 47 per penny rate. Thank you. Good. I'm good. Okay, we're going to move on to uh the next slide which is the recommendations for each of the tax taxes that we're we're putting forth. So, so the first one is the operating tax and uh April 23, 2024 was the last referendum that's included in this rate and we're adding in the uh uh the uh 10% for the allowance for the reassessment. Um that'll generate additional revenue of $5.2 million. And the tenative recommendation

054is for uh approval of the reassessment conversion rate plus the 10% converted rate plus 10% is 35.41 producing revenue total revenue of $54.4 million. So the next slide is for for debt service. Uh so this is the one where we we set the rate to what we need which is the 11.1 million. And when we we do the calculation, the recommendation, the tenative recommendation is to approve uh 7.5 cents to produce the the revenue of 11.1 million. And that and that is essentially revenue neutral. Correct. Correct. Okay. So the next one where this one is a little bit more involved because there's different types of match taxes that we've combined to get to the 3.41 41 cents and they're they're detailed here on this slide. The first one is the minor capital improvements which is

055the one we talked about with the 6040 match where the the district raises 40% of the revenue and the state gives us 60 60% and the rate for that particular match was 1.15 and we'll go over how much revenue that produces as well. Uh there's a technology match which was based on a a former state appropriation that we got and the state allows us to continue to match that and that came up to 27.27 of 1 cent about a quarter of a penny. Extra time is another one of those such uh appropriations where uh that that obviously the technology is used for technology. The extra time is used for uh extra supports for uh students. A lot of times folks use this for summer school. Um, and that one is uh a quarter of a

056penny 0.25. Uh, this uh the next one is math and reading specialists. Uh, the state uh used to have appropriations that we matched for reading specialists in elementary schools and math specialists in middle schools have chosen to continue that match and that is uh 1.1 cents. A new one from the state is the athletic trainer. It's uh and the match for that is point is very small 05 uh cents. Um the opportunity fund is uh we've added that in the past few years and the state allows us to match that it's around 30% and that comes out to 0.59 cents for the total of 3.41 cents. So if we move on if there's no questions on that we can move on to the next. Go ahead Jim. One question. Uh and Dr. B you might

057answer this better. Uh, do any of those sunset over the year or is that just a rolling two, three years or unknown? So, the funding doesn't go. It's been there ever since I've I've been around. So, yeah, I think it just keeps rolling from year to year until they until somebody takes action on it and they just have not. The only thing that um has changed a little bit the last few years, yeah, is they've offered enhanced minor cap the last few years just because the uh number of repairs that are out there for um the school buildings is more than that they can cover under the major cap. So, um the tenative recommendation for is for approval of the 3.41 41 cents uh producing a revenue of $5 million. And the increase in that

058is due to the opportunity grant match, the athletic trainer grant match uh and yeah, for those two that was the increase in the enhanced minor cap. Correct. So the final one is the uh tuition tax we talked about which was the for the special special education component and you can see a little bit of detail there of how what I described earlier. We do the estimate of how much uh it's going to cost we back and and we uh take into consideration whatever the carryover was and and we determined that we needed 25.8 8 million and the rate that we're ten tenative recommendation is 17.43 cents which would produce the required 25.8 million that we need for that uh for that uh revenue. So again um just to kind of reiterate my last point as

059I mentioned but I feel um important to underscore is that this is the part of the tax increase that we are required by um by law to ensure that we adhere to that supports our special education students. So I just again want to reiterate that for the general public um as we look to uh make recommendations and then obviously at some point we will vote on them. So I just wanted to continue to underscore the point of the tuition uh component of this. Thank you. So now we're going to move on to the summary and this just as a wrap up. It kind it shows what the total amount is of the 63.75 uh 75 cents per $100 of assessed value of the home. And you can see that the the four different rates there

060that we talked about 35.41 for operating producing the 5.2 million which and the reason for that is the the allowance and the debt service rate is 7.5 which is generally neutral. um uh the $57,000 increase. Um the match is 3.41 cents and the it produces an additional 882 uh,000 and the reason for that we talked about was the opportunity fund match that was added. Uh tuition is 17.43 cents and that generated 2.6 6 million additional and that was due to what we've we've estimated increased costs for uh salaries and inflation. And that produced a total tax um rate of 63.75 which would produce 8.8 million additional dollars of revenue in 2026. So, Scott, I always say I don't necessarily care what other school districts are doing, and I that applies to what I'm about to

061say, but just for comparison purposes, am I correct, and I think I am because I have the sheet in front of me, that right now, e right now if if we adopt the operating figure that you're showing of 35 cents as an operating uh as the operating tax rate for Aquinameck. That would be lower than the operating tax rate for any of the other school districts in Newcastle County. Correct. That would be correct. And that's before they decide I mean because they're all meeting tonight or this week as well. That's before any of them decide whether they want to raise take advantage of of this 10%. So just by way of example right now Randy Wine which has what 25% fewer kids than we do Matt and has a higher assessment base than we do

062their tax rate if they don't make any further adjustments their operating tax rate is 44.5. If our tax rate was 44.5 cents just back of the envelope, that would what raise us almost $10 million. If that had been our tax rate last year, we would have an extra 10 $10 million in the bank. If I said 10,000, I meant 10 million, right? Um Christina's tax rate strict revenue neutral is 46 35 cents which is 11 cents more than what you're recommending. Not that I agree with that recommendation, but it's 11 cents more than what you're recommending. And so 11 cents would raise what? $12 million additional revenue for us. We'd be well out of the hole if we had an extra $12 million. Colonial, which is uh to the north of us. Also, their unadjusted

063operating rate would be 37 cents, a little bit more than ours. If we go with this, 2 cents more. That would, if we used their rate, we'd generate an extra $3 million. If we had used their rate essentially last year, we would have had an extra what $7 million probably in revenue. And then Red Clay, which was where I graduated, their uh current unadjusted new tax rate would be 40.64% 40.64 cents, which is 5 cents more than what you're recommending, which would generate what, $8 million or more in revenue. Yeah. So I mean it continues to be the case if this recommendation is adapt adopted that Aquinameck in addition to having the lowest tax revenue base of the districts in the county would also have continue to have the lowest operating tax rate of any

064of the districts in the county. I mean, one way that we could easily solve our problem is just adopt one of these other tax rates from one of these other districts and then we'd be rolling in cash. We'd find ways to spend it, but because we, you know, government always finds ways to spend money, but um but I just want to make sure I understood that and I want to make sure our speakers here in a moment understand that even with your recommendation, we're still the lowest general operating tax in the county by a significant margin. I would say yes. Okay. All right. I interrupted you. I'm sorry. Is this the last slide for us? Uh I think we have one more that this is kind of the the next slide is the kind of

065slide that people like me like. There's a lot of detail to it and that's kind of the breakdown of all the different match taxes. There you can see how much the how much was generated in the prior year by each each one and then what the the rates are and what the revenue generated this year and kind of tying back to the previous slide down in the bottom right hand corner you see that $ 8.8 million number that ties back to the previous slide. So that's just a little bit of extra detail there. Anybody has any re any any comments on that? The the final slide is to recommend the approval of the resolution and the tax horn is presented and motioned and approved by the financial advisory committee. I forgot to mention that that

066this has run through the district's financial advisory committee which I attended a week ago and did similar presentation. All right. So, do any board members have any further questions at this time? Uh, if not, then we'll open it up to those who who signed up for public comment. Um, although, of course, as board members, we reserve the right to ask more questions anyway. And then once we've heard public comment, why don't we then actually engage? And well, we can't do that. We're going to have to swear Tim in before we actually vote, aren't we? So, um, so let's hear from the public now because you just heard the same presentation that we all heard. And you've heard my instructions or my instructions, our instructions, the board's instructions. You get three minutes. Please use the quorum.

067We've never had to uh shut anybody down. We've never had to any uh escort anybody out. Um, and um, you know, if you're at the 3 minute mark and you're midsentence or midthought, we'll allow you to finish, but please, you know, only use another 10 or 20 seconds. It's not an invitation to uh, keep speaking. We just don't want to shut anybody down mids sentence. So, I've got nine people. Um, and I'm just going to go here in the order they happen to be in in my hand. I don't know if it's doesn't look like it's alphabetical. Maybe it is. Um, so are you pardon? Oh. Oh, I'm reminded, right? A public comment is not the time to attack people or insult people or call people names. Obviously, I view that as a lack of

068decorum and I trust that everybody agrees with me. Um, we also don't discuss personnel issues as part of public comment. Um, again, I think that's common sense ground rule. Uh, so with all of that, I thank you, Michelle. Um, we will, uh, start with Carolyn BR and the speaker, the the speakers over there, the microphone. It's actually Carolyn Kennedy, but thank you. That's my maiden name. Um, it has been my experience in this school district that this board, the superintendent, our various principles and other school leadership are well acquainted with getting out emails to us. I get a monthly newsletter from Superintendent Burroughs that I read diligently. I promise we get daily emails when there is a referendum on the table. However, despite this usual overabundant communication, I was made aware this morning by a

069very short Well article that our school district is in a $5 million financial pickle. After reading this unfortunate news that I received by seeking out the Well Journalism, I followed up with a few friends who work at the district and my county councilman. I was distraught not by the news that we're in a pickle so much, but the utter lack of transparency from this board and our superintendent. I was made aware that this board and the superintendent have known for more than the current business day that we were in this pickle, as was my privilege. It feels as if all these problems are being pinpointed and solved by this body all between our beloved monthly newsletter update. I am here to remind you that we are not children who need to be sheltered from scary

070news. I am here to remind you in this, as with all political climates, really, you do not want to be the administration that hides scary news from its voters. I understand from many other resources besides this body that the board and the superintendent have a plan as you outlined for scrging up another $5 million from us taxpayers and our children's recently promised new resources. I am here to say as a parent of a high achieving and highly active students in this district that I appreciate your ability to problem solve and find the money. I'm also here to say that this is a tremend tremendously fiscally irresponsible situation that you allowed to happen and you all need to look really hard within this organization to determine how deep this problem really lies that it could have

071even been allowed to happen at all. I will conclude by saying I am above all else here to remind you that we are watching you. Our children are watching you and despite your very sad attempt to keep us in the dark, you failed at that also. Therefore, please in the future continue with the expected overabundant communication on important financial pickles rather than the recent approach of shoving the jar into the p into the back of the fridge. Please be upfront with us with the facts so you can continue doing the jobs we've elected you to do. In my opinion, this body has moved in such a way that this fiscal pickle has evolved into a full-blown coverup. And I am ashamed by it. I am ashamed to be part of it. I'm ashamed. And uh

072with that, I thank you for your time and I apologize for ducking out. My daughter did not intend to be here tonight right after work, so I have to go feed her dinner. Thank you so much. Not a problem. I will point out that this was all fully discussed two weeks ago at our board workshop for those who watched it. I don't know why the press waited until this morning to report the news. Well, maybe I can guess. Um, but I I do take the point as well about uh better emails and whatnot. Okay, so with that, we will move to James Metaf. Good evening. Uh I have been a resident of the Aquin School District for six years. Uh this is my first time attending a schoolboard meeting and first time speaking in the

073public comment section. I think I speak for a lot of people here when I say what happened. Why does the district have a budget hold that appeared unexpectedly out of nowhere? Prior to tonight's meeting, I was at I was advised to go back and watch the workshop video from the 26th, which I did to get more information. My first question is where did the $4.9 million go? Uh, according to the workshop video, there were sever there were several errors in the report that were discovered. How did the errors make it in the report? Did anybody check the report for errors? Uh, and if not, why was that not done? Um, also, how do you not know that there's a third payroll in May? Like, did someone not check the calendar for that? um it's just

074not adding up. My second qu my second question is with the summer school, how was that not listed correctly? Again, somebody was not doing their job. And when were these issues discovered? Was it in April? Was it in May? Was it in June? I don't know. And I don't think a lot of us want to know that same um those same answers, too. Um, I do have to say that with everything going on with higher energy bills, higher utility costs, insurance and everything, we all feel the weight of everything coming down. And when there seems to be an issue, the easiest thing to do is to go to us and say, "Nope, taxing you more." Eventually, like we did last year, the voters stood up and said, "No, the first time it passed the second

075time, it might not pass again." And, you know, there's only so far before the taxpayers say enough's enough. So, I'm hoping we can get some transparency about how this all happened and where the issues came about. And cuz to me, transparency is important because if you don't have trust with us, we can't trust you guys then. And I yield and I yield my time. Thank you. All right. Thank you. Next, we have Mr. Jamie Pile. Hello everyone. For those that know me, my name is Jamie Pile and I've been a proud resident of this district for over 19 years. Both my attended both my children attended Epicquinic Schools. My wife served as a dedicated teacher in this district for over 16 years. To say that we've supported this district over the years would be an

076understatement. I'm here tonight to share my concern regarding the district's current 4.9 million budget shortfall, and it could be even higher than that, up to 6 million. a gap to this date has not been fully acknowledged or explained publicly until you did so tonight. For I understand approximately 3.2 million of the shortfall is due to accounting errors, payroll entry that was emitted from the budget and a misallocation of summer program funds. That still leaves 1.7 million unaccounted for and really no clear explanation has been provided regarding where those funds are or what happened to them. In addition, the district is currently 1.2 million short of its 4.2 million reserve required by the state to cover two payroll cycles. This is a serious issue that demands immediate attention and transparency. In addition to this shortfall, the

077district has chosen to increase our current tax burden by approximately 3.3 million through its authority to raise both a tuition tax and match tax. an option is it that has exercised in each of at least the last two years and I I'm assuming many years prior to that without public acknowledgement. This includes a year following the most recently narrowly passed referendum in the spring of 24. I understand that that taxes are required um but there's not a whole lot of transparency that goes out about what they are and what that cost is going to be to the taxpayers every year. During the last referendum campaign, the district made a clear promise not to utilize the 10% property tax assessment if the measure passed. Now, just over a year later, the proposed 5.2 million increase tied

078to that assessment directly contradicts that promise. As a taxpayer and resident, I'm happy to support items that directly support teachers and the children of this district. However, this shortfall is not the fault of any resident, student, or even our growing community. This shortfall is a direct result of the failure of district leadership, and district leadership should be the ones that work in order to to work and make the hard decisions in order to fix it. The taxpayers should not be seen as the easy fix to your problem. They have been supported in the past, but please don't take that lightly. Let me be clear. The residents of this director of this district have consistently supported every referendum put forth over the 19 years that I've been a resident. A level of trust and community support

079that many other districts across the state have not enjoyed. But if this district leadership goes back on its word now, that trust will erode. Many residents, myself included, will find it difficult to support future referendums. And why should we if we can't rely on the promises made by our leaders? At a recent board meeting, one member shared that the board always puts kids first when making decisions. It's a commendable philosophy and one that I hope you continue to uphold. But ask yourself this, if this district moves forward with this tax increase in violation of the community's trust, how will you pass the next referendum? One that will secure vital funding for teachers, new school buildings, and other initiatives that you deem important. If that referendum fails, who suffers the most? The kids will. Please keep

080that in mind as you move forward. Thank you very much. Thank you. Thank you. Thank you. Next, we have Mr. Ray Connor. Uh, my name is Ray Connor. I've lived in this district all my life. I've seen things grow at this time at my age. When you start adding taxes on us, it's hard for us to pay. You depend on us. Who do I depend on to give me a raise in my pensions? who is going to help me with the electric bill and all these other added situation that we have in today's society. I understand that you need the money, but there should be a a better accountability and and and also for us to understand what you're doing. But uh but uh I'm looking at here. I'm 78 years old and I'm still

081trying to pay everything that you want. Who's going to pay me for what I want? Thank you. Thank you, Mr. Connor. Next, we have Gerald Gallagher. Good evening. Thank you for your service. Uh you have a job that at the moment is not very popular, but it's work that needs to be done and you're trying to do it. Uh, I also, like the rest of these people, have received this information on a very short notice. Um, my friend is on a radio station, Rick Jensen, and without him, he called me at home to tell me about this. So, I'm here tonight. I just have really one a couple quick comments. um the actuaries that you use. As we sat here tonight, almost from every person that spoke, I heard different numbers and it seemed to

082me that you're ready to vote on an issue that you have a lot of confusion amongst yourselves. That's fine. We have to pay for it. And I don't like to pay for confusion. I would like to pay what I owe, but I want to pay a fair share, which we were hammered into us for the past four years. Fair share. And I think we all pay a fair share at the moment. And because your actuary or actuaries, however many you employ, excuse me, ladies, they suck. I mean, they're they're inept. If my finances were run by the person that you use as an actuary, I'd be broke. Um, and I just like to say that adding on Yeah, I'm looking at the clock, too. No, no, no. I'm just I have to keep things moving.

083I'm sorry. Remember the looking at the watch at the moment? I'm giving you an extra 10 seconds for inter. Thank you. Okay. Thanks. 10% does not grow on trees. Your entity made a mistake. And to compare it to pickles, I think is a disgrace to pickles. It's real money. It's money that many people don't have. My wife and I are very fortunate. We could pay it, but there's many people that I mean, they're tapped out and just every single day more and more and more comes as a burden in this tax-free state. Thank you. Thank you, Mr. Gallagher. Um, I used the term pickle at the workshop because I was trying not to use some of the words that you just used, but um, and I thought that I did not mean to insult pickles

084when I used that word. Um, this is a serious situation and and the entire board takes it seriously. Uh, okay. So, thank you for your comments. Next we have Jeff Bead, sorry. I'll make this uh short and sweet. Um I going to reiterate pretty much what everybody here has already said, but I got a late notice. I literally got this information today uh while I'm at work and it was important, right? It was epicquinamic looking to patch unexpected budget hole with tax increases. Uh that was written by a gentleman of Sean Green on the wddel.com website. Um oh my phone just went out. There we go. And what it basically says is what everybody here has said is that this board can't find 4.2 million $4.9 million. It was either mismanaged, right? It was misappropriated

085somewhere or for lack of better words, I'm going to say potentially stolen. No one has told us where this money is at. It's very ironic. Call it a coincidence. The director of finance was either just quit, was fired, maybe it was over this, I don't know. Don't care to know. But he wasn't the only person who was involved when it comes to finances, right? You have a whole team of people that are doing this. So, who else knew about this? What did they do? Who did they raise their hand to to say, "Hey, something's wrong here." Right? I hope this board is going to have an independent audit done on this. It should not be in, you know, internal cuz quite honestly, you guys throw up numbers there all day long. Gentleman over there, Mr.

086Kesler, right? Nobody here understands all those numbers. There's no way for anybody in here or in the entire district to back into those numbers. And quite honestly, I'm on a board and I understand that a lot of times you prey on the ignorance of the people that are there, right? Because they don't know. Nobody's going to have time to look into that information. And even if they did, were they going to get the data that you have, right? Um it is appalling and someone else said this that we refer to this as uh a financial pickle. Right? Again, it was a board member who said that. I don't say won't say who it is, but it's not a financial problem because we have to pay that. It's appalling to me that you guys come up

087here and talk about all these taxes yet you can't manage the money that you have right now. If $4.9 million is missing and then you come to us and say, "Give me more money." Why would I want to do that? And so I asked this board, "What are you going to do about it? You have completely lost my trust." And I'll be talking to my neighbors and everybody else and my state representatives about what you guys are doing about this. I've been to so many of these meetings and the referendums. Once this board and these referendums, you guys get what you want. There's no more communication. We asked for that. We're asking for transparency. You cannot tell me you didn't know about this back in January or February or March. I won't believe a per

088single person up here that says that. Okay? And then we just now find out about it. Manage our money properly just like you would. I want to be clear about something to the extent it hasn't been made clear already. Money's not missing. Right? We got a financial projection from our CFO at the time and it was reviewed by our financial advisory committee. So, you know, the process is and it came to us at our May meeting that said our carryover was going to be $7.9 million. That was a projection. It contained we subsequently discovered certain errors. It was missing a payroll in May which had three payrolls rather than two and that was the tune to the tune of 2.1 million. That money is not missing. it was spent on payroll but what it means

089is instead of having a 4.9 million uh of that 4.9 reduce that by 2.1 so money was spent nobody took it but the projection that we would have more money left over at the end of the year is the mistake that was made so to the extent that I or others have said $4.9 million is missing that's not accurate and I apologize for myself and anybody else who gave gave that impression. The projection that showed and and I will tell you, I mean, I looked at it, it looked great. Um, the projection that showed we would have that money left over carried over into next school year was in error, but the money was spent, it was spent on a valid public purpose, paying our teachers. Um, so it's not as though somebody absconded with

090it or or or went away with it. And you know, we get monthly financial reports and I read them. Um, and you know, the suggestion that we should have known about this in January or February, no. Um, and again, I'll take full credit or blame really it should be for using the word pickle. I was trying to use a more benign term, some might call it a euphemism, than a term that somebody else used, which is probably more accurate, but I didn't think was appropriate for public discourse. Um, and again, we discussed this at our workshop two weeks ago. So, I mean, it's not like we're hiding these things. I mean, we come, it's easy for us to forget. I I will apologize because I come to a board meeting once a month and because

091I have a lot of other meetings throughout the course of the month about school district issues, I'm naturally going to know more because I have more information. We do try to make this information available at our public meetings. documents are posted on our website. The presentation that you just saw is going to be, if it's not already, posted on our website. So, things are out there for people to look at. It's kind of a pain in the neck. I will give people that. And the woman who said we should do more emails, that's a good idea. There's been a call for a report. I already had plans to call for that during my board comments later this meeting anyway. Um, so I just want to clear up some of the confusion that's been caused by,

092I'll say, the last minute reporting. If the if the story had been reported to two weeks ago or a week and a half ago, there would have been more time for people to address these issues. Call me. I always answer calls at work from people. Um, it's unfortunate that it came up like this. We'll talk about this more when we have the board discussion uh in a moment or in a few moments. But I I do want to correct some of these misinter misimpressions that may have been inadvertently created. Now, I don't mean to suggest this is not a serious financial issue. It's not a failure in our reporting system. Um if I use the term pickle and that offends people, I apologize, but um it is serious. Uh, next on our list of speakers,

093we have Jacqueline Mlan. This is my first meeting uh that I've attended. um kind of embarrassed to say that, but um I as well found out about this budget shortfall on WDEL this morning and immediately felt overwhelmed. I've been a volunteer advocate in my community and in the town of Middletown for the last 20 years. I work with people who are disabled, disabled veterans, people with disabilities, people who are incurring medical debt, financial debts, and now I have a new segment that I'm dealing with. People who are struggling to pay their taxes, and they feel overwhelmed by this new resolution that's coming before us that we're going to be paying for. I just calculated my own taxes for the year. My recent increase, I paid 450 for the last referendum. Okay, that's not a big

094deal. This upcoming reassessment is going to cost me an additional 750. It's not revenue neutral for my household, and it's I'm sure it's not for many of our households here in attendance this evening. And you know, what is this next increase going to cost my household? This is just my household. I'm dealing with people who are barely making it as it is and you're expecting them to pay yet another tax increase. I don't know at what point you're going to realize people are taxed out. They're going to lose their homes and maybe they should budget better. Maybe that's your thought process on this. How can you budget for things that you can't predict? I can't. So you can because you're the numbers people, you know, you understand how all this works with shortfalls and all

095of this. But when you come to us without offering a plan B, just voting on it tonight, this is it's going to be a slam dunk. That's how I, you know, I compare it to. It's a slam dunk for you tonight to go ahead and vote on something that's so crucial. Why didn't it come to a referendum before you made this decision to impose yet another tax increase on residents who are already taxed to the max? And I'm not just talking about the compromised population that I help. I'm talking about the average citizen resident of this area. Thank you. All right. Thank you, Miss McClan, and thank you for your volunteer work with veterans and others. Next we have Mr. David Kisner. Good evening. My name is Dave Kzner. I'm up at Shannon Cove. Because

096my time is brief, I'm going to be direct to the point. We've I've had the privilege of dialoguing with Dr. Burroughs and M. first previously on similar topic back around the referendum and the same themes that we're hearing tonight from constituents right here are being brought up again. Similar themes were taxed out. Enough is enough. People on fixed incomes, retirees, forced retirees, cost of living, we went through this before. Cost of living is exponential increased. fixed income does not. My escrow went up 10% recently because of the because of the upandcoming assessment that's been projected and they're already uh figuring this into your mortgage payment. Now, the other thing that I'd like to know rhetorically for those who have medical exemptions, people with cancer, people that are vets, etc., etc., Everyone that falls into the

097exemption category, there's a school component. Well, while you're going to raise 10% tonight, is that component of the exemption from Newcastle County that includes a school component going to be commensurate with your increase? That's rhetorical question. Additionally, what I find disheartening at zero hour, this is when you're going to present this. I like others Well 3 o'clock this morning. I happened to be up and doing some work and read through the article. I was at my state rep's meeting today. I've been to my state senator meetings, my county rep, etc. This has never been brought up. As a matter of fact, I was told there was a conversation between you do between you, Dr. burrows and my state rep that said no this year we are not going to raise the 10%. And yet here

098we are at zero hour. That's troubling. So with that my time is almost up. I want to say thank you. Thank you for what you do. I appreciate that you're in this position. But I can also appreciate I don't know how myself and others cuz I'm a for I'm an aged out retiree person is going to be able to afford these continual squeezes. The optic is gouging. And just to touch back on the referendum, it didn't pass the first time. You didn't like that. So you went back again and said, "What about the children? What about the programs?" And now you build school campuses that equivalate to universities. You don't need to do that. There are ways that you can cut costs and put that money into the students who need help, special programs, etc.

099And I support the teachers. They have a tough job. I get that. But those that want to go outside Delaware because they think they can do better, they're paying taxes in two states instead of one state. So, are you really making more money by going out of state? Because they only have so many positions that they can fill out of state. So, maybe those people want to come to Delaware. But this should not be coming out of the backs of the constituents and the taxpayers of this epidamin school district. With that, I yield and appreciate your courtesy. Thank you, Mr. Kizner. All right. Next we have Timothy Burroughs. Good evening. Um I just maybe I'll be repeating what some other people have said, but uh previously was stated that the district would not utilize the

10010% increase and now just two days before that that you have to submit this. So, it's obviously not going to get passed on or thought about later. It's going to get decided tonight. Uh you're going to submit that that that you have to submit the tax warrant in two days. So, you're going to approve us tonight. We know it. Uh not much time for the public to absorb any of this information and then give educated comments on it. We're just going to we're responding. But uh to me as a taxpayers are being expected to cut their budgets so they can afford a 10% increase on a tax bill, it's only reasonable that that that the district could cut some expenses to minimize the need for 10% t tax bill. And I know you mentioned a

101few cuts that was 2.5 million or something, but there's got to be more areas that you're spending money that could be tightened up. Uh so I know this referendum coming, you know, this tax increase coming at the same time that the tax assessment bills are going to be coming. We're going to be getting them shortly of how much our taxes went up in the hole. Uh, and then on top of that, ah, let's just add another 10%. Because even if you just keep the rate you had before, most people in this area, their tax assessments went up more than the 510% average for the county. So, everybody's property taxes is going up, period. And then you're going to add another 10% on it. And a few lucky people that happen that theirs went down a

102little bit, this 10% is going to wipe that out. Last year, I finally got the 65 uh $500 deduction. It coincided with the rebate with the last referendum, which happened to increase mine by $500. So, it wiped that right out in one one referendum. So, you there's a lot of older people that live on fixed incomes and we can't just come up with the extra money. We have to take it from somewhere. We can't just say, "Hey, federal government, give me more money because my state wants more money. My city wants more money. My school district wants more money." So somewhere it's got to come besides just taxpayers. A little bit of forethought, a little bit of cut and reduction in excess management. You know, the money that's spent on administrator could probably pay for

103two teachers. You give me more money you spread out for the kids if that's what the goal is. With that, I yield my time. Thank you very much. All right. Thank you, uh, Mr. Burroughs. So, that brings us to the end of public comment. Um, and what I want to do now so that we can have a full board compliment, we have to do it anyway, is I'm going to say the happy moment of tonight's meeting, which is we get to swear in a new school board member. Um, and so this is, I think, one of the highlights for schoolboard meetings every year. Um, and tonight we are swearing in uh Tim Higgins as our newest school board member. So, we have a Bible somewhere. [Applause] Tim, do you want to have their wife or

104daughter come forward? All right, raise your right hand. We don't do this very often. So you see a little only once a year. Okay. So Tim, if you can repeat after me. I Tim Higgins I Tim Higgins do solemnly swear to support the Constitution of the United States of America to support the Constitution of the United States of America. the Constitution of the State of Delaware and the laws of Delaware governing public education and the laws of Delaware governing public education. And that I will faithfully discharge the duties of the office of schoolboard member the duties of the office of schoolboard member according to the best of my ability. And I do further solemnly swear And I do further further solemnly swear that I have not directly or indirectly paid I am not directly or

105indirectly paid offered or promised to pay contributed or offered to or promised to contribute any money or other valuable thing as consideration or reward. reward as consideration or reward for the giving or withholding a vote at the election at which I was elected to set office at the election at which I was elected to set office. So help me God. Congratulations. Welcome to the board. That oath is longer than the presidential oath. I think. All right. Next on the agenda, we have the election of new school board officers. Each year at our July meeting, we elect our president, our vice president, and our executive secretary. So, the chair will entertain a motion. Um, I motion to uh nominate uh Richard Farson as a president and uh Dr. Tisha Graham as vice president. And will you

106why don't you include Matt Burroughs as our executive secretary if you can? I apologize our executive secretary. All right. Is there a second to the motion? Second. Okay. Motion by Mr. Higgins, second by Miss Dit to elect Richard Forston as schoolboard president, Dr. Toshiba Graham as school board vice president, and Dr. Matt Burroughs as executive secretary. Any questions, comments, or discussion on the motion? No. Oh, Norm slipped out. Norm, are you gonna come? I'm sorry, I missed you. It slipped out. So, Norm, the motion is for me as president, Dr. Graham as vice president, and Matt as executive secretary. Any questions, comments, or discussion on the motion? Hearing none, all in favor signify by saying I. I. I. Any opposed? Motion carries. Okay. One other schoolboard member issue to take care of really quickly. Um

107we have a number of different committees and offices that uh schoolboard members serve on and again at our July meeting we uh typically uh make those selections. So um point of personal privilege. Mhm. Um, if anybody wants to head out from being here so long for me personally, I appreciate you coming and you don't have to stay here any longer if you don't like it. Thank Thank you. Okay. Um, so we have the Delaware School Board Association uh board of directors to select uh membership for the the Delaware School Board Association also has a legislative committee. Where's the rest of this one? What about the SBA ones? Oh, what about the financial advisory committee? We got that and the other committee and then uh combined school boards meeting, right? Okay. Well, let's just take these

108one at a time. So, for the Delaware School Board, Delaware School Board Association board of directors, um last year it was uh Dr. Graham as the member and Mr. Abrams as the alternate. is if that's acceptable, I'll make a motion that we continue those two in office. Uh Tshiva, is that okay with you? Yes. Okay. Norm. Yes. All right. So, somebody want to second my motion? Second. Motion by Mr. Forston, second by Miss Dit to have Toshiba Graham as our member on the Delaware School Board Association Board of Directors, and our alternate, Mr. Abrams. Any questions, comments, or discussion on the motion? No. Hearing none, all in favor signify by saying I. I. I. Any opposed? Motion carries. Next, the Delaware School Board Association has a legislative committee that meets uh once a month to

109review legislation uh affecting school districts and public education and also to propose legislation and to presumably lobby for legislation. Um, last year, uh, Michelle Wall was our main committee member and Miss Dit was our alternate committee member. So, I don't know, Michelle, what your thoughts might be. Do you want to maybe move up to be the the full member or do you want to keep being the alternate? Um, I would suggest that um our new board member could be um the legislative committee person since he's working closely with Michelle Wall as his mentor. She can help guide him specifically since he has two more years and I only have one so he'll be in that role. Okay. And then so you'll serve as the alternate. Correct. Okay. So I'll make that as you making the

110motion. Motion by Miss Dit for Tim Higgins to serve as our member on the DSBA legislative committee and uh Michelle Dit to serve as the alternate. Is there a second? Second. Second by Mr. Abrams. All uh any questions, comments, or discussion on the motion? Hearing none. All in favor signify by saying I. I. Any opposed? Motion carries. Okay. um financial advisory committee, you need a member and an alternate. Okay. So, one of the things that folks at this meeting don't see and I think one of the unsung heroes of uh a group of unsung heroes of the district is our financial advisory committee. This is a committee that typically meets the week before our schoolboard meeting to review the financial information from our CFO before it comes to us. Um last year, Mr. Abrams was

111our main member and who was our alternate norm. You had perfect attendance so I never had to go. Um so unless there's objection um I would move that we continue those uh memberships. Uh so motion by Mr. Forston, second by Mr. Abrams uh for Mr. Abrams to be the financial advisory committee member and for me to be the alternate. Any questions, comments, or discussion hearing? None. All in favor signify by saying I. I. Any opposed? Motion carries. We also have the combined school boards meeting which meets uh quarterly. Um I think technically we have a member and an alternate although any member is invited to uh attend. And what this is is three times a school year there is a breakfast meeting for all of the school districts, school boards in Newcastle County. we come

112together, no public business is conducted, but typically there's a speaker or a presentation about a public education issue and then each of the school districts will kind of give a five or 10 minute update on something that their district is doing and ideas to share ideas and foster collaboration and communication. I was the uh main member of that last year and then I was it Michelle who was the alternate last year for that or was it uh Dr. Graham? Was it Toshiba? Toshiba, were you the alternate for the combined school boards last year? I don't think so. We all just participated. All right. Well, then let's just let's just keep doing it that way. We don't have to have special membership for that. So, with that, our um committee assignments are complete and we can

113move on to reports. But what I'd like to do since we did have the presentation and uh public comment on the tax warrant issue, um I'd like to to move that up and do that first while everybody who spoke or just about everybody who spoke is still here so that you know rather than try to have it where it is on the agenda now which is further down. So we had the presentation of the tax warrants. I think the easiest or way to address this would be to do them I'm either going to say one at a time or do the debt service tuition tax and match tax first um because those are pretty much standard and don't really have any discretion on our part and and then say the general operations discussion and vote

114for second. So with that, the chair will entertain a motion regarding the debt service tax rate, the tuition tax rate, and the match tax rate. A motion. Okay. So is your motion to adopt three first and then do the operational. Okay. Individual. Okay. So that's what we'll do procedurally. Now I need a motion concerning the debt the first three, the debt service, the tuition tax, and the match tax. So does somebody want to make a motion about accept the recommendation? Yeah. Yeah. You can't make a motion. I'll just ask. Mr. President, I'll make a motion on the debt service component of tax as presented to go to 0.750. The tuition tax component to go to 1743 as presented. The match tax to go to 0341 as presented. Okay. Is there a second? Second. Okay. Motion

115by Mr. Abrams, second by Mr. Higgins to set the debt service tax rate at point well 7.5 cents, right? Or 075, correct? Yeah. So, it's a dollar symbol that way. Okay. So 0075 or 7.5 to set the tuition tax at.1743 or 17.43 cents and to set the match tax at uh 0341 or 3.41. Any questions, comments or discussion on the motion? Hearing none. All in favor signify by saying I. I. Any opposed? Motion carries. Okay. So those three rates are set. Now we come to the general operations tax rate for the coming year. Um does somebody want to make a motion? I'm the chair number 345 354. Mr. President, I'll make a motion on the general operations tax as presented to be 3541 as presented. Is there a second? Second. Motion by Mr. Abrams, second

116by Dr. Graham to set the general operation tax rate to.3541 or 35.41. Questions, comments, or discussion on the motion. Uh, I just personally can't square with doing the full 10%. Um, I believe personally without any public comment or any other pressure that I believe that we should as a as a district take a little bit of the brunt of that. I know that Dr. Bros has done a ton with his his his people and I do appreciate that. Um, but just personally, I just feel that we should take less than 10. So, I would um, you know, so that just that's my personal opinion. And so right now, of course, we have a motion and it's been seconded and we're gonna have to vote on it, but it's not actually 10, right? Technically, it's a

117little less than 10. Yeah. Right. I apologize. No, no, no. But um so I mean, we could vote on this motion, it could be defeated, and then someone will have to make a new motion. What is If it's not 10%, then what is your thinking as to what the number should be? I mean, is that you're is that appropriate for me to say during a motion or Well, we're having discussion, right? Yeah, Dr. Graham, I apologize. No, I was just going to say um Mr. Forest, if we can um act on the motion before us and then if it fails, we'll yield to Mr. Higgins for his updated uh proposal. So, we have uh the motion on the floor as presented. That has been seconded. And so if we can take a vote on that

118and then if like I said if it fails then we'll have some dialogue around it. I think we all understand the weight of this. Um I think even just during this meeting having dialogue with members of the community we certainly don't take this lightly but we recognize the crossroads that we are in currently and we have to respond to it one way or the other. So, I'm just asking that since we have a motion on the floor that we act on it one way or the other and then if it fails, Tim, uh, Mr. Higgins will yield to you for a new motion. That's fine. I mean, right now there's a motion that's been made and seconded. And so, you know, now we're in I'm going to say the discussion portion. Ordinarily, a lot of

119our motions, they're pretty wrote and so there isn't any discussion. But for this one, I I mean, you know, I'm just curious what Tim is thinking. But we can save that in in case this motion fails. Um, I mean, I want to start by saying thank you to everybody who came tonight. I want to start by saying thank you to the work that Scott and Matt's team has done the past couple of weeks. Um, you know, we did have a board workshop about this two weeks ago. I've been thinking about it a lot in the intervening two weeks and I don't know I mean you know I'll start by observing that in 15 years on the board I've never faced a situation like this and I hope we we're going to take steps that we

120never have to face a situation like this again. you know, three weeks, two months ago when we had our April meeting and even at our May meeting, we thought there was going to be a sufficient carryover and I had always I have always said we did. Don't laugh. Hey, pardon. Let me finish. Point of order. Michelle didn't get really get to comment yet at all. Did you have a comment before we all have dialogue? No, I don't. This is discussion on the motion. So, we can all talk at any time we want during discussion. So, um you know, look, three two four months ago, 5 months ago, 6 months ago, everything was tracking and it was tracking well and but for the fact at least in my mind that we are going to come in

121at a number carryover that's less than 4.2 2 million. Um, we wouldn't be having this conversation at all. Right? I mean, if we if we still had the $7.9 million carryover that was forecast, we wouldn't be having this conversation at all. But if we had a $6 million carryover, we wouldn't be having this conversation at all. Um, we really don't have any good options at this point. We have a significant budget shortfall. We are going to have a report that details how that came to happen. But right now, we just got to solve the problem. We'll worry about how we got here later. I I just want to say uh what I said was easy. Um I know everybody here has lost sleep over the last duration of time over this and I don't want

122to say anything lightly. For me to say that I didn't agree is a lot easier than agreeing. But I just that's kind of where I'm at. But I do want to acknowledge the fact that I understand that everybody here has lo I know has lost a lot of sleep over this. Well, I mean, we could do nothing, right, and not carry over 4.2 million. That carries severe consequences in terms of the state coming in running our finances for us in ways that we would then have no control over and has a lot of other uh negative consequences. And of course it's in violation of their regulations. Um we could utilize the special authority that we get once every 40 years when a reassessment is done to increase the tax rate. That solves at least for

123the next two years or so our budget issues. It creates other consequences. Um there is a lot of background to this that I mean you know we talked about it at our workshop um two weeks ago um that you know wasn't reported in the press and certainly not in social media which of course as we know is the worst place to get news. Um, but you know, if we had had to have this vote in April or even at our May meeting when everything looked good, I mean, we wouldn't be, I don't think, increasing tax rates one penny. Um, and I, anyone who talks to me knows that while referendums are hard work, I'm a big believer in the referendum process. I think that it is a good thing because it forces school districts to

124go out to their community and explain what we're doing and what we want to do and why we think we need more money to do it. And I'm going to say ordinarily for the most part we don't get a lot of attendance at our schoolboard meetings because ordinarily I think people are fairly pleased and not everybody of course. So, don't send me emails if you're one of those people who's upset about something, but ordinarily people are pleased with the way our school district runs. Um, this is a big issue and so people turn out to make their voices heard just like they do on a referendum and and we have ultimately always gotten referendums passed. Sometimes I think we have set the number too high and I've said that at the meetings. I think we're

125setting this number too high, but and and then we come back at a at a another number and that's part of the dialogue you have with the community. Um but this is this is a different kettle of fish right now. I mean, we've got shortfalls. There were major mistakes that for whatever reason were made that weren't picked up in our check and balance system. Well, there was an extra pay of 2.1 million and the one gentleman who spoke had it exactly right. How do you miss that? I don't know how you miss it. I mean, I wasn't involved in putting that report together, but I got the report. It had been reviewed and it it was missing that. How did the 1.1 million in um summer school expenses get paid or credited to a federal

126account to which they should not have been credited? I don't know. But that's not that's not something that the board is going to pick up when we get the summary report every month. Um so, you know, there were other things that were missed. there was an extra compensation uh payment for um what they call well for your coaches and everything that gets paid once in December, once in June and for whatever reason when they did the uh the calculations and the estimates that we were provided at the May meeting that was not included. Um I'd like to think somebody would have picked that up, but they didn't. And you and you add those things up and instead of having $7.9 million carryover, it's now approximately $3.1 million carryover, which is $1.1 million less than where

127it needs to be. So, we got to do something whether it's the full 10% or something less than 10%. Um because I don't think it's responsible at all and I think this board would be irresponsible if we did absolutely nothing. Um so that's kind of what I'm thinking right now. But Michelle, you look like you want to say something. Um I mean I'm just like you know the people that I'm looking at, right? like I too am, you know, I too am paying a higher mortgage. I too have lost a highpaying job and now resorted to a lower paying job. So I too face the difficulties of the financial picture of all of this. um you know almost with tears tears in my eyes when I hear people talking. Um so I'm I'm really you

128know at a a midway point as a board member and as a community person and as a parent and as somebody who really may have to leave this seat if I can't afford a next payment. So I get where we are. My question is what are really and if there are none Dr. Burls, you can say that. Do we have any other options? And while I know our chair, president, our president just talked about um what will happen if we don't accept the tax rate tonight. You went kind of fast. People are texting me like, "Well, what else can we do? What else can we do?" Can you discuss again what happens if we don't accept this by tonight or if there's really another hard deadline? Could we, you know, reconvene later and discuss tonight?

129Um what are really other options? If there are none, just say that and we we we're going to have to vote tonight or go with the second um option that um Mr. Higgins um proposed. But that's where that's where I am cuz I I really don't I'm really at a hard place right now. So So I mean I'll do my best to answer those questions that you um asked. So one thing is by uh regulation we have to have the tax rate to the county by Thursday. And so um Mr. For even asked for extension since we didn't receive our adjusted um assess values until Monday late uh morning. So there really isn't like another time to meet. That's one of the reasons why we had our um board workshop. um at the end of

130June to kind of work through that and talk through those uh things and answer any questions that were still out there in regards to it. Um we as mentioned uh have done $2.5 million in cuts. Um people may say just uh continue to cut. We did our very best with the cuts to not impact what was being delivered to kids. when you're in a situation where 80% of your um expenses, your local expenses or salaries, you can only cut so much where you're not getting in the people and it's going to um impact the classroom and the services that were able to be delivered. Um so yeah, we can continue to cut, but there's going to be impacts that are going to happen in the classrooms. Um and and Matt, am I correct that as

131part of the cut? First off, my recollection is, and I know cuz I ask you this question all the time, we have fewer administrators than any other school district in Newcastle County. Correct. That's correct. And part of your proposed savings here, the $2.5 million in cuts, is the elimination of an administrator position and the reassignment of that administrator to an open assistant principal position that was created by personnel turnover this year. Is that correct? That's correct. May the reassignments were um district office position some assigned back into reassigned back into buildings. Right. Um, and just to follow up on what Matt said, the the deadline that's established in the Delaware Code for us getting our tax numbers to the county because they're the ones who send out the tax bills um is the second Thursday

132of July. Now, it's a statute. What happens if you don't meet it? Who knows? But we did I pressed the issue with Newcastle County because we didn't get final numbers from them until Monday. So they give us numbers on Monday and they want us to give them they've had it the ability to do that forever and they want us to get back to them by Thursday, which I just think is outrageous. But I'm going to say we are where we are and the deadline for us to give those numbers or the new tax rates to the county is Thursday. It is set. they they can point at state law and say, "See, that's where it is." But, um, you know, if they gave us a little bit of extra time, I don't think anybody would

133complain, but they're not willing to do that. They don't want to do that. So, that's Michelle answering your question. We got to get the numbers into them by Thursday, which means if we don't vote tonight, we could reconvene tomorrow, I suppose. But, um, but that's the deadline. And if we don't, that means we'll have to have a someone from the state follow us through all of our financial matters. Is that what I heard, Dr. Burls? That's a possibility. Yes. It's not a bad thing, right? Um since someone you mentioned that you want to get an internal audit, right? Or Yeah. I mean the the point has been made and and I mean it's not anything that we haven't already thought of that we need to to drill down and figure out precisely how these errors

134occurred. I mean the big ones we know um but we not only have to get a complete list of all the errors that were made. We just need to make sure that the systems catch them in the future. That's a conversation for another day in the sense that we have to make a decision about the tax rates now and and get our financial house in order for for next year. So, first things first, we have to do that. Um but then we are going to hire a new financial director and um you know we'll we've got um Scott and we had our former CFO um Chuck Longfellow helping us out and providing guidance and uh recommendations to us as well. So I mean all of that's going to be addressed because as I said we're

135never going to be in this position again but we got to figure out what we want the tax rate to be. Right now, there's a motion on the floor to accept the general operating number um that has been recommended by um by Matt and Scott and and presumably the rest of the APO team. I mean, I will say not and it's it is what it is. I mean, I continue to to be proud. Maybe that's not the right word, and someone will give me a hard time for it, but the fact of the matter is, you know, we've got the third highest number of students of any of the five school districts in Newcastle County. We have the lowest assessment base. We have the lowest tax rate. Even if we accept the um the recommendation

136that's been made, we will still have the lowest tax rate of any of the school districts in Newcastle County. Uh you know, Miss Wall, who seems to have gotten off the board just in time, was always fond of saying that um that we operate our district on a shoestring budget uh compared to the others, right? I mean, give us $10 million or more that we would generate with a tax rate from one of the other school districts, we'd be living high on the hog, I think. Um, and uh and we don't need to be doing that. But, um, I mean, we run a very, very lean operation. We already have the fewest number of administrators and now we're going to reduce it by more with the cuts that have been proposed. Um, so doesn't really

137help in terms of voting on the motion. It's just with all due respect, that's that's a um a referendum question in my opinion, not a reassessment question. All that conversation is more about, you know, hey, we need more money. Let's go to the let's go to our, you know, our community and ask for more money. That's I mean, I I I appreciate that. I'm just I'm I'm saying we don't have the time, right? I mean, you presented this problem what, five, six weeks ago. This is where we're at tonight. Well, if we had a 42 to be here, right? I appreciate that. If we had a $4.2 million carryover, we would probably be going out for referendum this fall. I mean, that's the difference right now that we face. I mean, it's not enough, I

138think, to go out for a referendum this fall and not adjust the tax rate at all because we we'll run out of money this coming school year if we try to do that. So, that's the real conundrum I think that we find ourselves in. Um, and because quite frankly, that was my first instinct. I mean, let's just I like the referendum process. I think it's honest. I think it's fair. The residents have always responded and that's what we should do. Um, I don't think we have the luxury of doing that tonight. And so, the question is, do we want to right now the recommendation in the motion is to accept the recommendation as presented. Does anybody else want to have any further comments or shall we just call the question? I don't think anyone here

139wants to be here at where we're at. So we can sit here and pontificate all night long. Nobody wants to do this. But if we don't do this, then the kids are going to suffer. So either we do this tonight, get through this, and then as we rally back through the summer, come backwards, figure out how we got here, never get here again, and then figure out what cuts we can make further down the road to reduce the liability that we're asking the taxpayers to pay. Right now, I don't have that. We do not have that choice. The choice presented in front of us is here's what we have to do. Let's get through this and then come back this summer and let's figure out how we get back out of it. But at least

140right now, let's make sure this district continues that we serve these kids. I don't think the question is not serving the kids. I think it's the question is it's it's more than the kids. It's everybody. So maybe we need to go back tonight and talk about it to just make sure. But it's a very difficult decision as you're stating. I suggest we make a decision tonight. personally. I mean, whatever it's going to be, I suggest it be tonight personally just because one more day we've had a few weeks would be just one more day. You know what I'm saying? Well, I think Matt asked a good qu Dr. Barls asked a good question like what would be the good number for you since you Well, I mean I I I would give that number, but

141I was asked not to until we we we uh I mean, I don't have a problem not hiding anything. I would I would give it if wanted. I I would You're allowed to say it. I I was going to mention uh 5% instead of uh the the nine and I think that's worth discussing tonight even if we have to go back tonight and then make a decision. Well, we look we was a motion for so I don't want to point of order. So point of order. So, if if we're going to have discussion about a proposed new motion, we need to respond to the motion on the floor and let that die and then Tim, you can propose accordingly. I think I just want to make sure that we're following process as we're trying to

142get through this very difficult conversation. 100% agree. All right. Well, without objection, I'll call the question. Um, all in favor signify by saying I. I. All oppose say nay. Thank you. Dr. Burr, you want to pull the board? Mr. Abrams, Mr. Wit, can you speak louder? Mr. Hagen, sorry. Dr. Graham, I'm here. I'm just Oh, sorry. I'm just thinking. So, I'm going to I know I I supported it initially. I'm going to actually oppose this because I want to hear the dialogue around Mr. Hagen's newer motion. So, Mr. Forston, um Toshiba stole my strategy. I'm going to vote no on the motion at this time with the understanding that I reserve the right to change my mind and if the motion gets made again I might vote for it but I do want to talk

143about other scenarios. So yeah agreed. For now the motion is defeated and but before we make a motion on a specific percentage um Dr. Burroughs or or Scott, Mr. uh Mr. Kessle, are you in a position to or maybe now we take a fivem minute break and give you the time so to determine what some alternative rates might look like. So if you say 5% that's additional $2.6 million in cuts that we'll need to make. So I'll take your cuts to $5.1 million or I'm sorry, no. Yeah. $5.1 million. So, Dr. Burroughs, just for a point of clarity, um at 5% you would need to make an additional 2.6 million cut, $2.6 million in cuts on top of the 2.5 that you have already done. Did I understand that statement correctly? That's correct. And as

144I stated earlier, that would be I mean, that's people And I feel Bill, Scott and Chuck, feel free to chime in on the number, but I mean it's just the math. Revenues about $5.2 million from a 10% raise. So you figure it's half of that. So it's 2.6 million. I would agree. And and then you're also right. The biggest category is is people. Do you do you have a number? I mean I know in my opinion when we went straight for the 10% um which did come down because of the uh extra property value. My point was it was a convenient number to take 10% because is exactly the amount of money we could take. Um, and I felt and still feel and I'm new. I'm new and I'm not going to I don't have

145all the information and I I've just got here and I'm trying to learn as I go over the last uh month. But um in in saying that I I just felt that um we as a as a as a district should have um some skin in the game. But I I don't as everybody says I don't want to affect the kids. So is there a number between the five and the nine that or you're saying that anything below the exact number we have we're we're going into human resources. I mean there's no like um we're using 2% on the other end and I know there's different buckets um and we're using 0% on this right for the operating um delinquency delinquency gap. Um is is that is that number optimistic? uh like last year I

146think it was under 1% of our of the revenue we didn't receive right so I mean if we took that 1% is that it are we able to move that I'm not sure I understand the I uh this is Chuck can you hear me Hey Chuck sorry I didn't introduce you sooner no that's that's okay I've been I've been listening um we've done we've done like a what if sheet to figure to put in some different parameters um what is the um what are the raises that have been negotiated? What are the um non-salary cost escalation factors such as CPI? What are um generally the increase in um assessed value over time because we do have growth in the district. Houses and and businesses are being added all the time. And then we modeled in

147um what it would look like if we did the 10% and we had a um a parameter where we can make that anywhere from zero to 10. Um when we modeled it, if you do anything but 10, um I am very afraid for the district that you're going to end up having a financial recovery team appointed by the state. that financial recovery team which is outlined in Delaware code will have the authority to set your budgets, to set your tax rates, to um do things like make cuts. You're going to lose control of the district. The biggest chance you have to stay out of financial recovery is to show that you have a plan to rectify the the problem that you've been presented with. um every time we run it, anytime we use a number

148less than less than 10%. It it makes things worse. So, I would strongly um I I know uh Tim, you mentioned something about trying to stay out of people. There is no way that it stays out of people. Now, I think that um the best chance you have is to keep some unfilled positions unfilled. Um I don't know. I haven't seen a list of who is in the or what is in the 2.5 million. I've seen like a general cate categorical list, but um if if you don't do this, then I I believe the district is very certain to end up in financial recovery by the state. And I don't think you want that. Take a look at Delaware Code. I pulled a section up. Um it's uh 14 Delaware Code, section 1802 talks about

149the financial recovery team and the powers that they would have. Thank you. Thanks, Chuck. Well, Chuck, you've got a what sheet there. My recollection and understanding is that if we go to the full 10% ultimately, of course, we know, you know, we're going to have to go to a referendum eventually anyway, but that if we go to if we make the cuts that Matt has proposed to 2.5 million and increase the operating revenue as recommended, we we still end up going out for referendum when in the fall of 2027. We'd like to stretch it out to 1227 1227. But I mean that begs the question. I mean if we only had let's say an 8% increase, does that mean that you know we get through the next year or so but then we just go

150to a referendum sooner rather than later? You see my point? One of the problems you hit is that the lowest point in in the cash flow for Appeoquin School District is before the taxes come in in October. So unless you're unless you dig yourself out of the hole, it could be one year, it could be two years, you're not you're not going to make it to that um to that October time frame. So that's why you need the cuts immediately. And before the end of the fiscal year, we did advise um the district to close, you know, a number of purchase orders and things like that to preserve cash. Cash flow is your is your issue. And um you you got to preserve it going into October to make sure you're not negative. But one

151of the another one of the last things you want to do is be in a position where you've got to ask the state for a loan. Um, so you could you could you could trim percentage points off of here. We've calculated that for every percent that you trim off of this, then you need to find at least another half million in cuts, 495,000. The more the better. Um, but again, you've got some outstanding award-winning programs there. Um, you have to really take a look at that and and and um figure out figure how deep you deeply you really want to cut those. Just another thing, the for every um one of the metrics we use, the cost of a a let's just say a teacher all in is about $115,000. Uh roughly 70 of that

152is state, 35 of that is local. If you were to cut positions, not I'm not this is not a recommendation. This is just a kind of a u putting things in perspective. You only save the local share. You don't get to keep uh um the state share except in the case of this thing called the give back which we would look at as well. You can give back some of the state share but I don't know exactly I don't recall what this what the district is giving back um in that give back list. It's probably already maxed out. So um just keep that in mind too. 35 to $40,000 per teacher position. So what's 495 divided by 35? It's around 14 positions. Again, not a recommendation or not like a a not not saying that

153that's the solution, but that's just to put it in perspective. All right. Have I have a question. How many um districts have used the um financial recovery team um as a result of going through this? Is that do we know that? And how successful was that? Bur in the last 20 years only two districts have had to go through it and that's Christina and Red Clay. And as a result, have they been out of the you say Christina? Yes. Have they been out of the um have they been able to just manage your funds effectively since? I mean, I guess it depends on what you defined as effectively. Well, I mean, look, one of the things that could happen, people hear me harp on this, but I harp on it for a reason, right? If

154I was the financial advisory team coming in from the state of Delaware and I didn't really have much loyalty or my sole mission in life was to write the financial ship and make sure Appo had enough cash flow. It's easy. Just increase your tax rate to match red clay and your financial problems go away, right? And there can't be. How can you complain if you're paying the same tax rate as red clay? But the answer is well be a wash in money at that point and wouldn't know how well we find a way but we wouldn't know how to spend it all. I mean we do we do have the lowest tax rate and we will have the lowest tax rate even with the 10%. That doesn't mean that we should increase the full 10%.

155But I mean sometimes I you know we get criticized and I don't think sometimes people realize just how hard we work to keep our expenses down compared to these other districts. But that's what could that's one of the things that could happen in a nightmare scenario. Um, all right. Well, does somebody want to We don't Right now we're at a low. We don't have any motion in front of us. Does somebody want to make a motion? I'll make a motion that we follow the recommendation. Put my papers away, but the 10% lift as as given to us by the financial motion by Mr. Abrams to follow the recommendation of the well, I guess we'll call it the recommendation of the financial advisory committee because they've made it to us, right? All right. Is there a

156second? What's your plan? I I'll second. Motion by Mr. Abrams, second by Mr. Higgins to uh adopt the recommendation of the financial advisory committee for the operating expenses uh tax rate. Question, further questions, comments, or discussion on the motion? Um I just wanted to highlight uh what Chuck just said. And so for every percent that we would consider to cut, that percent translates to a half a million dollar allin a teacher if you will is a little over a hundred,000. His math tells us quickly that's 13 to 14 positions. We are not in a position to cut 13 to 14 positions at the very least. Right? That's the bare that's kind of like the least of it. And so again, none of us, to echo Mr. Abrams from earlier, none of us want to be

157in this position and we're committed to doing the work to make sure that we understand why more more why we we understand more why we are in this position to prevent it in the future. Um, I just, you know, it's it's tough. It's tough. I I understand and respect uh Mrs. the wit's comments as well as well as you know our community members that have uh come before us this evening. Um I certainly I dare not use the word pickle Mr. Forest but this is certainly a difficult situation for us to be in and um I'll support the motion that's on the floor. Any further questions, comments or discussion on the motion hearing? None. And all in favor signify by saying I. I. Any opposed? Motion carries. Did you go for it? You didn't give

158me a chance. I was thinking about it still. Oh, I'm sorry. I'm going to abstain. The motion passes for nothing or for nothing with one abstension. And I will say the only reason I'm voting for it is because I don't like the alternative. Not happy that we're here. Agreed. All right, back to our regular agenda. 10A superintendence report. Dr. Burroughs, thank you for everyone that came out tonight. Thank for the board. I know it was a tough decision and not a decision no one wanted to make and I appreciate that. I will say right now our as we presented last month uh our people system has changed over and we're kind of flying a little bit in the dark right now with uh knowing new students and what's coming in. Um our team's working hard

159to make that transition at this point. So I don't have an update on kind of where we are with our number of students enrolled. If you remember, our projections were 13,100. We currently have 24 full-time teaching openings at this point um and the team is working um and collecting data. As you guys are aware, we have this thing called the um class size waiver uh that comes around and is voted on in November. And um this is just a new piece for you uh Mr. Higgins. um tradition. Well, in the first few years of me being superintendent, we signed between 44 and 54 class size waivers, which means from K to three, you're supposed to have class sizes of 22. Um if you have over a class size of 22, you have to ask for

160a class size waiver with the school board. Um last year, I believe we had two class size waivers. Um we were able to get that to the team meets through the summer. We're looking at numbers and we're looking at class sizes throughout the summer. Um, and then once school opens or when we have meet the teacher night, the class sizes are kind of set because no one wants their kid to have to be moved out of the class of the teacher they just met. And so, as I mentioned, the votes not until November. We continue to grow. So, sometimes we have to have class size waiverss in between then. We do everything we can through the summer um to make sure that we have those class sizes at 22. um and we will continue to

161do so. It's just a little more challenging this year with uh our just the system being transferred over. So, we'll keep you up to date. I'll update you again in the August meeting kind of where we are with uh waiverss. Um I believe so today we had four classes that we're looking at that were over that 20 um due number at this point and we'll continue to monitor. Any questions? Thank you, Mr. Forson. All right. Next on the agenda, we have the parent code of conduct, Dr. Gero. Good evening. Last month I was up here and uh we approved some changes to policy 6109 which um the the topic there was a parent code of conduct or having a civility clause within there. Since then, we've convened with our um civility or our parent code

162of conduct committee. And I just wanted to review some of the things that the committee decided on. And first I just want to say too um it was a really good committee. We had quite a diverse range of people from parents from all over the district. We had um administrators. We had teachers and staff and we had uh Mr. Forston was there as well to represent the school board. We had a lot of really good discussion and I think we arrived at a really good end product. So uh up here is just a summary of some of the things that we have. Um, if you can, it is live on our website right now under the families section. There's a parent code. Um, and it'll also appear within uh, appendix 10 of our student code

163of conduct as well as in the front of the student code of conduct with the signature page. There's reference to that this as well um, with the full version. So, parents and guardians and visitors are expected to and we have a number of things here. Uh and this again just summarizes but treating students, staff and others with respect using appropriate language and behavior. Uh we want them to comm communicate civily with school personnel, follow all school rules and policies and respect the learning environment. And the following are not permitted. Disruptive or threatening con conduct, harassment, bullying, verbal abuse, or racial slurs, physical aggression, recording or taking vote uh photos of students or staff without permission, refusal to follow staff directions, or uh not leaving when asked. I think it's legal to take pictures and photos

164of people in a public space as long as you're not going to use it for ne nefarious reasons. Yeah, it's outlined. So, here is just a general statement, but it's outlined a bit more in the full version. It's talking about um in classroom environments and in areas because we have photo consent and we have other permissions within the school environment. So, if you're at a sporting event or in a public space, then it would not apply. consequences, verbal or written warnings, uh revocation of event privileges, removal from property, or police involvement if necessary. And one of the things I think we specifically said in the code, again, this is just summary language, but if you go back to the last slide, Steve, when it says revocation of event privileges, if you're a parent and you

165show up and you know you throw a punch or do something else equally wrong, and you know it's wrong, and it's happened, and that's why we had to come up with this policy. You're not coming back. You're not coming back to a play. you're not coming back to a concert, probably not coming to graduation for your kid. We're not going to tolerate any violence on the part of parents. And it's a shame I have to say that, but I want to be clear and it is in the code specifically when it's listing um what revocation of event privileges means. So that there can't be any question that if some parent comes and gets involved in an assault or an altercation, that's it. I mean, and and it's a shame we have to have this code

166of conduct or we had to add this to our code of conduct, but you know, it happened once, then it happened twice, then it happened a third time. We're just not tolerating it anymore. And then lastly, we just want to work as partners, you know, with our our families and community to make sure our schools are safe, inclusive, and a positive environment. There any questions I can answer? And this is going to be now in the print edition, right? It is. It's in the online edition, the printed edition, and it's on the family tab of our website, right? So, I don't think there's anything we have to vote on, though. Correct. No, it's just a report. Yes. Thank you. Does anybody have any questions for Dr. Gerao? No, I as I said in the last

167meeting, um thank you for bringing um for suggesting this code of conduct for our parents considering um what our district dealt with the last couple of years um with parents. So, thank you. Shame we had to do it. Okay. Thank you, doctor. Thank you. Next on the agenda, we have the construction update. Mr. Hopkins. All right. Excuse the voice a little bit. We've lost our voice. Lewis Ready. All right. As you can see, we've completed the school at this point. We do have operation of the school. We're running school lunches out of it at at this point. The summer program, the office is is manned by our staff. We have complete control of the school. We have a full CL. You can see the demolition has started in the back. That's what the auditorium was.

168They're coming into the gymnasium this way. Now, this this is the storm water management pond. This has to come out and the school comes out and a parking lot will come right into the back of the school for our student drop off. We have a lot of work to do in about 54 days. But all the grass is in. We're looking good out front to ever sign up as you'll see later. Go ahead, Steve. This is a little better look at the demolition going on. They're they're starting to take this road, this temporary road we had in out. This pond increases and comes this way and then the parking lot will come into the back. This is kind of another view off of the gym. This parking lot goes away here and this parking lot

169continues out this way to service the gym and the multi-purpose area on this side of the building. This is look at the demolition starting out from ground level. This is back. They're loading up in the dumpsters. This is coming in. They took the band wing out and now they're coming into the gymnasium and moving that way. After they get done with the band wing, they'll go straight down this wing and take that out and that'll let us bring everything in. This is the front of the new building. Big glass opening in the front, the media center at the top, as you'll see a picture of that in a bit. New registration. We occupy everything now. Okay, Steve. This is looking to the left. You're standing at the building. It's kind of heading up up New

170Street to the left. It's a big long building. Let's kind of look on to the right. You have the gymnasium down here. Locker rooms in this area here. Classroom wing. This is looking This is for you, Tom. This is This is the sight lines that you can see all the way down for student movement. There's not a lot of spaces. I know you liked it, so I threw it in for you. Go ahead. This is your typical classroom layout. Glass marker boards. You know, everything's looking pretty well. Floors are getting waxed up and buffed up, so we're ready to occupy with kids, too. This is your typical science room. You have, you know, your eye wash here, your goggle sink, fire extinguishers, fire blanket. Typical band room in in the band area. All the furniture

171in. Everything's completed. This is the media center. This is what looks out over new street here with the wave ceiling in for acoustics. Kitchen's complete. This is the serving area with the kitchen area in the back. So, this will be the lines. This will be the registers here. This is area where we're serving kids. Now, this leads into that serving line area. This is the auditorium area here going into that side. Learning stairs coming up this way. This is one of the exam rooms in the nurses area. All furniture's in. They're occupying with their personal items. The C's an area for the kids to relax when they're not feeling well. This is the gymnasium again with the new Eagles logo here. It's all completed. Locker rooms are completed. This is the learning stairs. They've now

172got the wood fronts all on. So, we're complete here with the handrails above. This looks down onto the auditorium. So, you can use it for an extra space for learning. You get a lot of people here. And there's a projection screen in the front at the that you'll see in the next photo. That's deep. So, this is the area that it faces up here. You have a projection screen that'll drop down. You can use it for overflow for the auditorium andor separate events. There's our Louiswis reading sign. We're up and running. We're on time and we're on budget. The ribbon cutting is in August as I recall. Correct. It is August 27th. Yeah. All right. Well, we're all looking forward to that and it's going to be a great great facility and a great great

173school. Thank you. Anybody have any questions for Mr. Hopkins? logo. Okay. Next on the agenda, we have old business. The first item up is our new cell phone policy. Second reading for approval, Dr. Gero. Right. So, same content as last month, so I'll move through relatively quickly, but uh let me know if you have any questions about it, and I will be looking for a vote. Um so, really, uh this comes out of title 14 and um basically the proposed Senate Bill 106, uh wants to limit cell phone usage. uh and and a lot of the reason for that is research shows that students you know one it causes more disruptions and behavioral issues and secondly um it takes away from our academic success of our students. Next slide. So in this we're trying to

174achieve a um increase our student achievement as well as create a safe and respectful school community. Next slide. And really the limitations are specific to or concentrate most on instructional time or when students are learning. Any questions? So just I'm going to yeah kind of question observation. So you mentioned Senate Bill 106. We had actually started this process on our own even before correct the general assembly passed Senate Bill 106. Correct. Correct. And it's in House committee now. Oh, so it hasn't even passed. Senate did pass it, but it's in House committee to acknowledge. I lost track of the bill. Am I correct that we got grant money for the pilot programs we did? Correct. Is there any more grant money for us to try to get uh we had Yeah. 48,54 we received last

175year. The original governor's budget proposed 500,000 and that got reduced to 250,000. Uh I've been in contact with department of education this week to and there will be a similar process where districts won't just automatically get the money. We'll have to apply through a grant like we did last year. So there'll be some level of competition. Uh and then districts that haven't really done anything likely won't apply or will be less asking for less money. um if they don't have anything in place. So, it'll depend on how many districts and how that gets divided up. And I think I'm correct in remembering that the policy applies to middle schools where basically when you arrive at school, if you have a cell phone, it gets put in a pouch for a day for the whole school

176day. You don't get it back. But at high school, there'll be the wall hanger calculator pouches. Yeah. where when you walk into the classroom, you drop your phone in your pouch. So, you don't have access to your phone during the classroom. Period. But then when you leave, you can get your phone and presumably catch up while you're walking to your next class or the cafeteria. Correct. So, there is a difference at least right now between middle school and high school. Yes. And the cell phone committee will meet at some point to eval this coming school year to evaluate how it's going and see if we need to tweak it. Yes. And thankfully too, because we participated in the pilot last year and have all those pouches remaining from Appaquin High School, those 1,600 or so

177will be moved to the middle school and then we'll only have to purchase the difference there. Right. Okay. So, we have uh I want to ask you a question. I'm just trying. I apologize. So, the state funding is for the pouches, correct? Um, does that sunset? I didn't I'm sorry. I didn't catch that. Like I mean we don't really know that. So the initial pilot there was a pot of money and we received like I said a little over $48,000 there. This year uh with more districts participating I anticipate and $250,000 total. I would think our amount awarded will probably be a little bit less than that. Whether that gets approved every year in the budget I I don't know. It's not like an annual or a continuous line item. What what is the cost?

178You know, the total cost for like the project for the year or there's Yeah. So, we're looking at somewhere just north of $50,000 to supplement what we already have. Now, that'll be somewhat canceled out by whatever funds that we receive from the state. Okay. And then, but then once you have your pouches, you have minimal maintenance, right? It goes year to year to year. Yeah. So eighth grade student, teacher says put your cell phone away. Student says no. What it's really the same as any other behavior. So establish clear expectations. We communicate those expectations and then we give students reminders. We teach them because our focus is with any behavior. Our first our first response when students aren't following the expectation is to make sure they know what the expectation is and try to teach

179them what that expectation. So a lot of that comes through just communication with the student, working with the student and communicating with the family. And the majority of issues or concerns that we've had um because Apoquin Kai did pilot this last year, that's the way that they were resolved. And then for those cases, which are few, there aren't a whole a whole lot of them, but with any student or with any behavior or infraction, we do have students that do violate the code of conduct. So then it would it would escalate to a code infraction at some point because I know just inside information, I know one of the classes that did the pilot program, none of the kids followed it and nothing happened. And it's a pilot program, so there's tweaking. Um my my

180question is like what does success look like after the first year? Do we we're not naive to think that it's going to be 100%. Um and I think the younger grades five and under I think there shouldn't be a problem. Fifth grade and under shouldn't be a problem at all. Yeah, that's really nothing changes there. And and generally our rule I was an elementary school principal so generally the rule there is no phones or devices. I mean they have their one to one iPads but personal devices we don't have or we don't allow right um so that part's not really a change there um but when we went to we went to visit both Tally Middle School and conquered high school who have implemented some the two different strategies that we're using and really both

181of them said you know you're really striving for a good chunk or a high percentage immediately, but then you don't get everybody immediately in the first year. By year three, they felt like now there's really strong compliance. So, they worked for that 80 90% and really worked hard to get that and then they continued to refine it and improve. And once it becomes part of the culture, you know, that changes too. So immediately, yes, we may have some inconsistencies. We're working and doing everything we can um to make sure that we don't. But we know anything new there'll be a learning process. There'll be some acclamation. We had a uh 1-hour Zoom today with middle school principles talking through planning. We're going to each middle school walking the space, talking things out. Tomorrow we have

182a 1-hour Zoom scheduled with high school principles to talk through that process. uh and then we'll be going out there and and helping them as well. So, it's a continuous process, but we'll just we'll make sure they're supported and they get what they need and that it's successful. That's all I have. Any other questions for Dr. Gerau? Toshiba, any questions? No, thank you. Okay. Just Well, you're not forgotten just because you're not here. Um All right. Well, with no further questions, then um we do need to approve this. So, the chair will entertain a motion. Mr. President, I'll make a motion to approve the new cell phone policy 6123. Second. Motion by Mr. Abrams, second by Miss Dit to approve new cell phone policy 6123 as presented. Any questions, comments, or discussion on the motion?

183Hearing none. All in favor signify by saying I. I. Any opposed? Motion carries. Thank you. Thank you. Next on the agenda, we have social media policy 3115, second reading for approval. Dr. Small. Good evening. I'm here with the second reading of the social media policy or electronic communication and social media policy after which I will be asking for a vote. Um, so as you can see from this slide, we did our report in May, our first reading in June, and our second reading tonight. Next slide. The current scope for this policy. These slides will be the same as our our last month's meeting slides. Um, essentially it covers all employees, all technology at any time. Next slide. The recommended addition to the policy in red there essentially talks about the idea that the social media

184is dynamic. It's always changing and we need a policy that makes sure that it can capture the changes without having to make changes to the policy each time there's a change that occurs in the the social media universe. Next slide. So this slide speaks to the idea that social media use by our staff members would be not intended for personal use during work hours. So we want to make sure that if social media use is occurring, it's for the benefit of our students or our school district. Next slide. This uh is recommended the uh writing that's in red font. We're recommending that we delete it because of the fact that it's outdated based on the use of social media as far as our school district is concerned. Next slide. And but that change is a

185change you've been recommending all along. It's not a change from the first reading. No, it's it's been recommended the entire time. And are all these changes the same as they were in the first reading? So, we haven't had any changes since the first reading. All the same changes. Okay. This is a recommended revision to the policy. based on the fact that we believe the communication with students should be um educationally legitimate and appropriate and it should be discoverable. Next slide. With that, we are asking for your vote for adopting this policy. All right. So, we have the I'll say revised social media policy 3115. It's had its second reading. The chairman will entertain a motion for approval. A motion to approve the social media policy 3115 is right. Second. Motion by Mr. Higgins, second by

186Mr. Abrams to approve social media policy 3115 as presented and as revised. Any questions, comments, or discussion on the motion? Hearing none. All in favor signify by saying I. I. Any opposed? Motion carries. Thank you. All right. Um, missing from the agenda, but purely oversight is board comments. So, why don't we do our board comments before we get to new business? Um, Mr. Abrams, board comments. I just like to thank everybody that came out tonight. Um, appre I appreciate all the speakers that spoke. My 17 years here tonight was the toughest thing we've had to do. Although what may appear to be the easiest thing to do actually was the hardest thing to do. The work, however, does not stop tonight. We have to figure out how we got here, how we're going to get

187on from here, and figure out where we're going to go. So, yes, tonight was just the first step. We'll move through this and we'll figure out how we got here, get out of here, and then move on from there. Thank you. Okay. Thank you, Miss Dit. I I too would like to thank all the nine people that came out tonight and um uh did a public comment. Um congratulations to all the people who got reward, all the students that got an award or received recognition today. Um thank you all for people out there that decided to say and have this long meeting with us. I know that's difficult. Tonight was difficult as um Mr. Abram stated um but this role does require making difficult decisions. So, um thank you for uh staying in with us

188and hang hanging out there with us. We appreciate you. All right. Thank you, Mr. Higgins. Your first set of board comments. The floor is yours. Uh well, it's funny. I wrote comments down and this whole meeting kind of changed the mood of my comments. But um I do want to thank number one everybody um who helped me get to where I am. Uh the people that believed in me including my mostly my wife and my family and my uh sister-in-law Cara I mean sister-in-law Debbie and her and her and her daughter Cara and then coming in. I thank Michelle for helping me drink, take a drink out of a fire hose with what we had come to know. Literally the minute I was not even sw an hour after I got sworn in have to

189make these decisions. And I just want to um tell everybody, thank you. I appreciate everything, every comment that was made. Um I I made my decision on the information that I had. Um I will stand by my decision. Um, but I let everybody know that any decision I make on anything, I will study, as my wife can attest, for hours trying to figure out what's the best thing for our community, mostly for our kids. Um, and the point of transparency, uh, I am going to continue with what Michelle Walls do was walls doing with bagels for board members. So, um, tomorrow morning and every Wednesday after a board meeting, I will be at Manhattan Bagel at 8:30 in the morning. Uh, anybody wants to stop by, I'm gonna have a bag on coffee. I'm not

190buying you a bagel or coffee because I'm a volunteer. But, um, I'll be there. If you have questions or comments, I'll I'll be there. My my cell phone is on the, uh, website. I want to be as open, as transparent as I could possibly be. And, um, thank you. All right. Well, thank you, Tim. And we look forward to more board comments uh, from you, Dr. Graham. Just because you're in cyerspace doesn't mean you don't get to give board comments. Um yes, thank you. Thanks for the opportunity. Um so just a few quick thoughts. Um I want to acknowledge the commentary that we've heard uh this evening. I think one word that continues to um resonate with me is this ongoing community desire for transparency. And as committed as we all are to being um

191transparent and um deliberate in our actions to not um communicate with um hyperbole or conjecture, we too want to ensure that we are uh responding to the community um in an appropriate way and obviously in the most important way is is through transparency. And so from a board perspective, we remain committed to that. And I think as Mr. Abrams said, it we're certainly in this position that none of us want to be in, but we're committed to doing the work to ensure that we, as I said earlier, to ensure that we understand it and that we we further understand it. Um, and that we are putting ourselves and our community in a position to not be here. Um, again, u, Mr. Higgins, I appreciate your uh participation this evening. Um just you just jumped right

192in, right? And this is certainly like drinking from um a fire hydrant, if you will, especially this July meeting because there's so so much that is needed from the board uh going forward. So, I just wanted to recognize your participation tonight. Um and so I I thank you for that and I look forward to continuing to work with you over the coming years. And then lastly for the community, thank you. Thank you for your comments. Thank you for um being um I think confident and um comfortable with coming forward and giving us your feedback. And we like I said earlier, we remain committed to responding to it. And so with that, I will conclude. as we have now reached the 10 p.m. hour. We've had longer board meetings. Um I I say that in a

193joke. I want to join in welcoming Tim and I think he's already uh demonstrated his thoughtfulness uh and his comments and his approach tonight and that's great. Um there were two good things on the agenda tonight that'll probably be overshadowed in the reporting on this meeting. um we adopted a cell phone policy. Uh and again for those who have been coming to the meetings or you can go back and watch the meetings because they're all on YouTube now. Um that's something I've been clamoring for for a long time and I'm really excited to see that we have finally put it in place for the coming school year. And if you go out and read the literature and there's several really good books on the subject, this is the start. It'll take a little while, but

194long term, I think this is really going to benefit our kids and our educational uh process. Um, the other thing that we adopted tonight, and it's disappointing that we had to do it, but we had to do it, was we adopted a parent code of conduct. And so, um, that's now in place. And, you know, um, it's a sh I said it earlier and I'll just say it one more time. I mean, it's a shame we had to do it, but I feel good that we've done it now because now if something happens, we can point to the code. There's no question about it, and you're going to get sanctioned. Um, so I'm I'm glad we got that done. I'm glad we got it done in time to be in the printed version, among other

195places, of the code of conduct because that gets handed out to students. Parents have to sign for it, as I recall. And so, uh, that's all to the good. So, those are two good things that happened tonight. And then of course um we had to vote on the tax issue. Um I will join in thanking everyone who turned out tonight. Um it was suggested and I was going to make this ask anyway. Um so Dr. Bros, we need to get a detailed report um about exactly what the mistakes were that were made, when they were made, how they were made, so it never happens again. I'd like to get that report. I mean, we've got a new CFO who's going to be coming in. Um and um we have Dr. Longfellow, I still think in

196cyerspace. And um and of course we've got Scott uh here as well if he's willing to assist. Um but I'd like to get that at least a preliminary report and update at our September meeting and maybe a final report that we can post on our website by October. Um I think Chuck may have proposed that in the financial meeting. Chuck, right to your point. Um and then find suggestions on how to fix it. Right. But this is a report not just for the board uh and for our new CFO. I mean this is a report that is for the public. I mean, you know, I don't like getting accused of not being transparent. We did have a meeting two weeks ago where we discussed these issues. Um and so it's it's you know, we didn't

197just I mean it may have come to people's attention today, but um but we we weren't trying to hide this. This was all part of a public discussion that we had two weeks ago. I also agree the one woman made uh comments during board comments that we probably ought to take better or make even better use of our email communications with parents and the APO family. Um so we'll do that too. But first things first, let's you know, we've gotten a solution to the financial issue. Now we need to get a detailed report so this never happens again. So, we put even more protections in place than already exist. I mean, Norm's been on the board 17 years. I've been on the board, this is my 15th year. We've never had an issue like this

198come up before. And so, why did our checks and balances and they're there, why didn't they work? Um, so if we can get something, Mr. Porson, can I add one thing? Our union CFOs will be hired this evening. Not to put the individual in the spotlight, but we have two gentlemen that have done this job that are outside of us, Mr. Scott and Mr. Long. Yeah. No, and I I think I asked for them to be I'm sorry. I I I can't hear from this side when you're speaking that way. I'm sorry. No, no. I was just going to recommend maybe we could if they would be willing since they understand it. and Scott nodded his head, so I took that as a yes. Even if he was uh dozing off and trying to like

199bob his head back up, that's still a yes. Um now, I'm not happy about the vote that we I'm not happy that we had to have it. I'm not happy that we had to cast it. I'm not really happy that I had to vote the way I did, such as life. Um, I think that the board had two bad alternatives in front of it and I think ultimately we landed on the lesser of two evils, but um, our goal now is to make sure we're never in this position again. And by the way, I mean hopefully perhaps other districts can learn from this as well. So, so that's where we are. So, I don't want to add my end my board comments on a depressing note. I mean, I'll say it's the summer. It's been

200hot, but I hope pe people are enjoying the summer. August is going to be here sooner than we think. We're going to get to do a ribbon cutting in August for the new um the new Lewis Shredding Middle School. That's going to be very exciting. Those photos, Keith looked fabulous. In fact, I thought maybe I was looking at models or an artist rendering. I mean, the building looks so crisp and clean in those photos. Um it looks great. So, I'm really looking forward to getting to the building and seeing it now that it's completed. Um, our uh and with that, we'll move on to new business. Um, so new business. First thing in front of us is the June 10, 2025 board of education meeting minutes for approval. Mr. President, I'll make a motion to

201approve the June 10th, 2025 board of education minutes as presented. Second. Motion by Mr. Abrams, second by Miss Dit to approve the June 10, 2025 uh school board meeting minutes as presented. Any questions, comments, or discussion on the motion? Hearing none, all in favor signify by saying I. I. Any opposed? Motion carries. Next on the agenda, we have the June 20 25, 2025 board workshop minutes for approval. The chair will entertain a motion. Mr. President, I'll make a motion to approve the June 25, 2025 board workshop minutes as presented. Second motion by Mr. Abram, second by Miss Dwit to approve the June 25, 2025 board workshop minutes as presented. Any questions, comments, or discussion on the motion? Hearing none, all in favor signify by saying I. I. Any opposed? Motion carries. Next, in front of

202us, we have the monthly financial report for April 2025. Mr. Kessle, I'm I'm not sure how you want to handle this. The the April, May, and the the next four items were all discussed at the financial advisory committee and they made a recommendation to approve those. So, I would put forth that their recommendation to uh make a motion to approve those. Mr. President, I'll make a motion to approve from the monthly from the financial advisory committee's recommendation for approval monthly financial report April 2025. the monthly financial report May for April 2025, May 2025, and then the two internal accounts for April and May of 2025. All four were seen by the financial advisory committee and approved. Is there a second? Second. Motion by Mr. Abrams, second by Miss Dit to approve the monthly financial reports

203for April and May 2025 as presented and as recommended by the financial advisory committee and also to approve the internal accounts report for April and May 2025 as presented and recommended for approval by the financial advisory committee. Any questions, comments or discussion on the motion hearing? None. All in favor signify by saying I. I. Any opposed? Motion carries. cancel. Yeah. Yeah. We're skipping G because we did we moved G up. So now we're on item H. So we have the preliminary budget for fiscal year 26 for approval. You're free to Okay. So in front of us we have the preliminary budget fiscal year 26 for approval. Mr. Kessle. Yes. Similar comments from the other reports. This was also reviewed by the financial advisory committee and recommended for approval. I will say that this is a

204very preliminary budget. We're getting a CFO on and we're uh going to work on the you can expect amendments to this, but what we wanted to get something with you so that the superintendent would have the authority to begin the year and start with budgets. We did it at 75% of last year's budget to be conservative. So I I would recommend that you take the recommendation of the financial advisory committee to approve this uh preliminary budget. It's preliminary. So we always we have the right since it's preliminary to make changes when we adopt the final budget. Also this incorporates the five the $2.5 million in cuts that we already discussed uh earlier this evening. Correct. 2.5. So it does not um it does not reflect that because it's a 75% budget across the yeah it's

205not specific in there as we build the new budget or the once we have a new CFO those will be incorporated into that. Okay. So right now this is still preliminary when we get the revised final budget then it'll be in the final budget. Correct. So I'm assuming we normally get our next budget in February for the final. We'll probably see one in September, October then, right? I mean, depending on how long it takes a new CFO on board and right get going. So, yes. Right. And this kind of goes along with your comments about, you know, finding out what happened and, you know, kind of making those projections and figuring out what, you know, what what the each budget line really should be. Mr. President, I'll make a motion to approve the preliminary budget

206for fiscal year 26 as presented. Second motion by Mr. Abrams, second by Miss Dit to approve the preliminary budget for fiscal year 26 as presented and as recommended by the financial advisory committee. Any questions, comments, or discussion on the motion? Hearing none, all in favor signify by saying I. I. Any opposed? Motion carries. Next on the agenda, we have the conversion of bond anticipation note to bonds. Mr. Kessle, we trans we tabled that to July, right? You tabled that, right? You Yeah, you scratch that. Oh, did I for I didn't write that down on my agenda. Sorry. Okay. Well, that's easy. Next, uh on the agenda, we have overnight field trips for approval. The chair will entertain a motion here. He's got him. Tim's got him. Tim's got him. I'd like to make a motion

207to uh approve trip ID 10827 uh for August 25th, a uh Middleton High School cheerleaders uh cheerleading camp in uh Beach Lake, uh Pennsylvania. Okay. Just one second. Motion by Mr. Higgins, second by Mr. Abrams to approve trip overnight trip ID 10827 as presented. Any questions, comments, or discussion on the motion? Hearing none, all in favor signify by saying I. I. Any opposed? Motion carries. Next on the agenda, we have change orders for approval. Mr. Hopkins recommending uh change orders for approval as submitted. Some of the ones of note would be uh we had to add some tamper proof uh outlets to to the changes in the international building code for the amount of 51,000. Then there was also some premium time we had to do uh pay the electricians an amount of about 18,000.

208Make sure we got in the building on time. With that, I'm recommending these changes for approval and seeking your approval. Mr. President, I'll make a motion to approve the change orders as presented. Second. Motion by Mr. Abrams, second by Miss Dit to approve the change orders as presented and as recommended by Mr. Hopkins. Any questions, comments, or discussion on the motion? I think you said this, but let me confirm. We're still on time and and on budget, right? You are. Okay. Okay. Any further questions? Hearing none. All in favor signify by saying I. I. Any opposed? Motion carries. Next on the agenda, we have the personnel report for approval. Dr. Small. Good evening again. The personnel report for the July board meeting has been presented for your approval. Tonight, we are asking for your approval

209along with the names from executive session. Mr. Mr. President, I'll make a motion to approve the personnel report as presented with the additional name from tonight's executive session. Second. Motion by Mr. Abrams, second by Miss Dit to approve the personnel report as presented with the addition of the name from executive session. Any questions, comments, or discussion on the motion? Hearing none, all in favor signify by saying I. I. Any opposed? Motion carries. Next on the agenda is establishment of meeting dates. And for the record, the financial advisory committee will meet at 6 PM on Monday, August 4th, uh in the Maran Profit Training Center. They're going to meet up here instead of down the hill. Okay. So, Monday, August 4th at 6 p.m. the financial advisory committee will be meeting here in this building. Our

210next regular board of education meeting is Tuesday, August 12th at 7 p.m. here in this room. Uh so you can attend in person or you can watch on YouTube. Um but please attend one way or the other. Um with that we are adjourned. Thank you all for coming and welcome Mr. Higgins.