001Everybody, we are back in open session and I will entertain a motion to consider the consent agenda. I motion we consider the consent agenda. I second. Uh discussion. We have discussion because I know I want to discuss. Does anybody else want to discuss anything in the consent agenda? [Music] Um, a big thanks to all of our uh summer cleaners and uh staff working in the buildings to get them all tuned up for for next year. It's it's a lot of work in some warm buildings, I'm sure. So, very thankful for them. And this is the busiest season for repairs. This is when all the repairs over now, right? Yeah, in a very short amount of time. So, I know George and Sam aren't here, but thank them for their staffs, too. I would like to
002just make a point of showing off a couple pages from the financial reports which we look at every month but which I don't expect the community looks at terribly closely because this stuff has numbers with many zeros at the end so your eyes glaze over but this if you can zoom in is very important and we look at this every month and the other thing we look at every month is this. And what these two pages show are the cash balance at the end of every month in the school district over the course of several years. And if you look at the first drawing, you'll see that there are these lovely predictable peaks roundabout in August and roundabout in March, which is when all of us have to pay our real estate taxes. So, your
003property tax bill comes in the mail. Oo, mine came today. Um, and we have until whatever the date is, August 17th, to pay it. July maybe. Uh, July 17th. Sorry. Yes, my brain is gone. My brain seems to go a lot these days. So, this rise in every year's cash balances represents the influx of property taxes. And then we spend that money down over the next 6 months. And then we get another bolus of cash from the next payment of real estate taxes. And then we try not to spend it all down because we know that we've got to wait until the following year to get the next influx of cash. This is one of the basic principles of school funding financing is that we have to hold on to our cash balances in order
004to tide this over until the next influx. Um Molly just as a reference that's page six on in the document that is in board ducks for of the financial reports uh letter D sub one. The second page is the cash balance at the end of each fiscal year starting in fiscal year 2014 going into last fiscal year. And you can see that there was a nadier in fiscal year 1920 and 21 where we had much less money at the end of the fiscal year and then all of a sudden in fiscal year 22 we get this lovely big mountain that shows up. I mean, I'm oversimplifying this, but that's the revenue from the most recent levy, right? We voted on that levy. Well, it didn't pass the first time. It passed the second time in
005November of 2020. The money didn't show up until fiscal year 22. So, that's 2122, right? Because the payments are offset. The first year, we get half a year's revenue and then we get the full year's revenue. the following year. Um, these are cycles that are not of our making. This is the system that we live under and that we must follow. Um, so when the state house says things like, oh, school districts are sitting on heaps of cash. We need to make them return that money to property owners. They are deliberately ignoring the fact that they created this system and that we have no choice but to follow it. And if we did not save our pennies for when we those in between times, we wouldn't be able to make payroll. I mean, it's really
006that simple. And 80% of our budget is payroll, right? We pay people to work with our children. So, um, and then the last thing that I wanted to point out was you can see that they're overlaying mountains. Each one of those fiscal years is up and down and it actually correlates to the revenue from tax levies which we have voted on and approved. The state is trying to change what happens to money that has already been voted on and they are removing or they're attempting to remove local control over the funding mechanism that they created. So that's it for me to home rule. Home rule. Exactly. I have one question regarding the um advancement of funds. Does that mean it's from so for the next fiscal year is that where the advancement comes from? Yes.
007So no fund can end the year in a negative and so especially for mostly federal and state grant funds we have to spend first and ask for the reimbursement. So there will come a time at the end of the fiscal year where some of those um funds are in a deficit. Got we have to advance from the general fund and then uh the first thing we do on in July is return the advances back to the general fund from Got it. Okay. Thank you. Any other questions or comments about the consent agenda? No. Then Mr. Gainor. Miss Sereni. Yes. Mr. Trump. Yes. Miss Krenshaw. Yes. Miss Lewis. Yes. Before we move forward, I want to acknowledge two new administrative hirings and changes that were approved by the board tonight. First, I'm pleased to introduce Miss
008Courtney Gardner, who will be an assistant principal at Heights High School. Welcome. Welcome. Miss Gardner served for four years as a principal in the Cleveland City Schools and at Constellation Schools and as a high school teacher for six years in Lorraine County. So, we look forward to welcoming Miss Gardner to Heights High. And although she wasn't able to join us tonight, I also want to acknowledge Miss Alisa Levby who will be the Monaceel Middle School's new assistant principal. Miss Miss Levby most recently served for nine years as a principal and assistant principal in the Cleveland City Schools and as a middle school teacher for 15 years in Uklid. We look forward to welcoming Miss Levy to Monaceel. Wonderful. Excellent. So I think now M Dr. Lombardo Lombardo. Oh yes, sorry. It's your turn. All right.
009Good evening everyone. Good evening. Good evening. Good evening. A couple things to do tonight. The first on the agenda is the final reading of policy group E. There are three policies there. student supervision and welfare. This would be uh the final reading where you would take action if there are no questions. And these are three policies that are essentially the same, but they pertain to different groups of adults. That's correct. Any questions? No. Okay, Mr. Gainner, please. You know, I move that we I move that we approve the policies that have been presented. Second. Thank you. Now, Mr. Gainner, right, Mr. Trimble? Yes. Miss Krenshaw? Yes. Miss Lewis? Yes. Merin? Yes. All right. And I'm happy to say that our five unions have ratified um the contracts for three years. This is exciting news uh
010to get this done. Um we do have to approve these separately. So we'll go I'll go ahead and read each resolution topic and um and then we can go from there. Okay. So the first one is a resolution to approve the tenative agreement between Cleveland Heights University Heights City Schools Board of Education and the Cleveland Heights Teachers Union Local 795 effective July 1st, 2025 to June 30th, 2028. May I have a motion to consider this resolution, please? I motion we consider the resolution. Second. Any discussion? Just glad it's done. Glad it's done. Glad it's done. And um glad it's done as early as it was. I'm excited that we have a new contract in place before the end. Yes. Of the current contract. Agreed. A big thanks to the bargaining team uh from 795. Uh
011and uh yeah, looking forward to another great year next year. And happy it's a three-year. Yes. Yes, for sure. That gives us a lot of stability. I mean, we've those of us who've been on the board for a while were here when we would have like a one-year extension or a rollover, and it's that's very challenging. So, three years. Thank you. Absolutely. So, Mr. Gainner, Miss Krenshaw, yes. Miss Lewis, yes. Miss Serini, yes. Mr. Trimble, yes. All right. All right. The next is a resolution to approve tenative agreement between Cleveland Heights University Heights City School Board of Education and Ohio Association of Public School Employees, Oopsy Local 102, effective July 1st, 2025 to June 30th, 2028. We have a motion to consider this resolution, please. So moved. Second. Any comments? I'm glad it's done. I'm
012glad it's done. And I'm glad it's done and before the end of the current contract. Yes. Copy paste. Copy paste for the next comments. Yeah. Mr. Gainner. Miss Lewis. Yes. Miss Sereni. Yes. Mr. Trimble. Yes. Miss Grshaw. Yes. All right. Next resolution to approve the tenative agreement between the Cleveland Heights University Heights City Board of Education and Ohio Association of Public School Employees, Oopsy Local 617, effective July 1st, 2025 to June 30th, 2028. May I have a motion to consider this resolution? So moved. Second. Uhoh. Jinx the coin. More comments. the same thing. Ibid here. Here. Yep. Mr. Gainor. Miss Sereni. Yes. Mr. Trimble. Yes. Miss Crunchaw. Yes. Miss Lewis. Yes. All right. Next. Resolution to approve tenative agreement between the Cleveland Heights University Heights City School Board of Education and Educational Administrative and Professional
013Staff Council EAPSC effective July 1st, 2025 to June 30th, 2028. May I have a motion to consider this resolution? Consider No, I motion we consider the resolution. I second. And again, we got it done and everybody worked very hard to get to where we are today. So, thank you. Yes, Mr. Gayner. Miss Crunchaw. Yes. Miss Lewis, yes. Mr. Serini, yes. Mr. Trimble, yes. And finally, resolution to approve tenative agreement between Cleveland Heights University Heights City School Board of Education and the Monitors Unit effective July 1st, 2025 to June 30th, 2028. May I have a motion to consider this resolution, please? So moved. Second. Is this where we get up on the tables and dance? Yay! Wahoo! Okay, this is Mr. Gainer. Miss Lewis, yes. Mr. Serini, yes. Mr. Yes, Mr. Grenaw. Yes. So, we are
014incredibly grateful to everybody who participated in these negotiations. There was a level of respect and cordiality and a willingness to work together to get it done and it shows. So, thank you Dr. Lombardo for absolutely leading this. And I believe this is your last meeting, Dr. Lombardo until you uh go into your next position as a superintendent of Geneva. Yes. Um yeah, tomorrow will be my last day. Oh my goodness. I just want to thank you. This is a a great way to end um a long and uh hardworking career in the district and just want to thank you officially for the record uh for your contribution to work here in the district and your leadership. Well, it's been my pleasure to serve and I do want to thank the board, Liz and Scott. It's
015It's been an awesome 12 years and I and I I'll be a tiger for the rest of my life. So, I really once a tiger, always a tiger. But I appreciate the support allowing me to grow and this it's been an amazing It's going to be hard to leave tomorrow. It really will be for me. Oh goodness. But thank you. But bigger and better things. Yeah. Well, Geneva is lucky to have you. I appreciate that, Jody. Thank you. They really will be lucky. So, next I believe it's Mr. Gainer's turn. Yes. Budget presentation. Joe, I promise we'll be quick. Uh and and fortunately, this is uh a similar presentation. You know, we've been around this block before, so everyone's seen this. Uh the documents are are all similar. Um uh just the numbers are slightly
016different. So we'll go through we'll go through the presentation and uh as as you have any questions along the way please feel free to jump in and ask those. Uh so again CHU strategic plan goal five operational resources ensuring that we have the necessary finances for student outcomes. Uh so tonight uh again quickly we'll go through uh just a quick introduction uh which we're we're doing now. The budget process we'll talk a little bit about um and remind you how that goes. Fiscal year 26 general fund budget. Uh show how that ties to the five-year forecast and then ask for your uh uh approval of the temporary appropriations for the upcoming school year. So we're here in June. We're both trying to get this fiscal year closed and get everything ready for the next fiscal
017year to start on July 1st. So, and it's made all the trickier by the fact that um you know the state banual budget is not in place, but also our federal grants are all over the place. So, the state is is implementing a new system. Liz and I got an email from Laura Bates today uh who attended a training where they're just the they're just saying right now just put something in. Just put something in. you know, the system ODW is not, you know, they don't know, they don't have the allocations from the feds yet. Um, you know, we rely on those grant funds to pay staff starting July 1, and we don't start doing that until the grants are substantially approved. So, you know, we're having we're having some issues trying to work through
018all of that, but we we have what we have been told to put in place and we're going to work from there. So, um, I just give you a little forewarning. Don't be surprised if if maybe we have to try to pull a quorum on June 30th. So, uh, Monday we we might we might have to do that, but we think we have everything in place at least as as u as we know it needs to be at this point in time. So, but it is definitely frustrating uh in particular as it comes as it relates to grant funds trying to know what we um have available to spend and and how to to budget for that and allocate for that. Uh so, as part of that introduction, just a reminder, and we've talked about
019this in in our three things before, you know, we have an accounting structure that we're mandated to use by the state. It has all the various dimensions that include departments and functions and operational units and objects which would be like supplies and materials or professional development or those kinds of things. So each of those components and dimensions mean something different and that way we're able to pull reports and and track data based on um you know those summaries which those different dimensions which al also roll up. So you can you know do summaries like if I want to know the cost of X at all elementary schools you know those kinds of things roll up in a in such a way and are designed in such a way that we can get at that data
020the USS manual and this will be a big project for um finance and for angel next year. You know, we talked about in the last three things where the auditor state has decided to update the USS manual and mandate certain special cost centers within the general fund to track DPIA and student wellness and success funds and all those things that they give us as part of the uh state funding that they want to see. You know, we we we can run reports and show how we spent the money. They want to mandate that it all be contained in a special cost center. The problem is that the accounting structure as it exists in our financial system won't accommodate what they want and how they've designed it to be. So that's going to be a whole
021big project next year is to try to figure out with our a site how do we make this happen to meet the the needs of the state and what the legislature is demanding versus what the software will allow. So uh that's that's going to be a big one. So, I'm sure Angel will come to you with that as one of her major goals for next year. But at least for this at this point in time, we have everything that we need and everything is is working the way we intended to um to be and everything is is similar. There were a few things that they phased out that they asked us to get rid of right away, but those are things that really don't uh that we weren't using to begin with at at Heights.
022So, the budget process, uh, and this is a graphic that Eric put together. It kind of works counterclockwise, counterclockwise. And remember, this is the general fund budget we're talking about. So, as a reminder, you know, the grant funds, um, the this budget document that you have in front of you, this is all general funds. This is what ties to the five-year forecast, which will show you that this is what the appropriations are. But the appropriation, you're also appropriating for all other funds. But when we're talking about this process, we're talking about the general fund only. Uh so we send budget documents out in the early spring to all budget leaders. Uh give them and and the whole process is is laid out in the budget document itself. We ask them to complete that zerobased budgeting.
023So we do provide allocation and history so that they can see what they've spent. Um, but then we, you know, kind of ask them to use that as a guideline, but really start with zero and and return a budget to us based on your your needs for the next school year. Um, and Phil, you will appreciate the fact that we did take your um your advice from last year and in terms of allocating additional money at the elementarymentaries, uh, you know, based on what we give a per pupil allocation at the building level. So it was different amounts for the elementaryaries, for the high school or middle school and then high school levels. And so what we did um for to differentiate at the elementary level was looked at the title one funding and group
024those buildings accordingly and then gave uh those buildings that had higher title one allocations and therefore likely greater need for additional resources additional per people. Wondering. Thank you. That's why Noble looks the way it does. Yes. Okay. Uh so then we go through a review process where everyone returns their budgets. We look at that for to make sure that everything's coded properly, that things aren't uh that nothing looks ary. If people ask for additional money outside of what their allocation is, we speak to Liz about that um and try to decide, you know, whether we're going to approve that or whether we'll, you know, try to try to find another source to fund those kinds of things or delay a purchase or something like that. Uh then Eric creates this budget document that you have
025before you and then we bring it to you for approval as we're doing tonight. So the general fund budget again just a reminder we're talking about general fund only. So that's a link in the presentation to this document um uh electronically. It goes through and and actually shows um by building and by department what everyone has submitted in terms of their budget requests. And then you know underneath all of this there's there there are just layers and layers of additional detail. Uh but this is kind of a a summary level by object that shows you you know this building or this department is asking for this much in professional development versus supplies and materials or uh electronics whatever they might be asking for. So um and I'll direct your attention to the last two pages.
026So pages 72 and 73 is really the the overall summary of the general fund budget and you see the total general fund budget for the year at 123,08340. So first I'll I'll reference here on this slide you know again this serves as as an initial resource and a guide for all the budget managers. Um it does highlight the the budget process and has links to a higher revised code code and board policy in terms of of budgeting and all that good stuff. But that 123 million is important. Well, and and then again we have a um uh a sample from this is human resources budget since Paul's here and it's his last day. We used his budget as an example for u what that looks like in the budget document itself. but wanted to make
027sure that you could see that what you're approving ties to the 5-year forecast. So, you know, I've given you a hard copy as well, but the link here will go directly to that forecast history where you'll see the 5-year forecast and I've highlighted for fiscal 26 the budget of 123,83,340. So the budget document and all the detail that is therein ties up to the 5-year forecast of 123083340. Um and then that ultimately you'll see in the third and final document that I have for you uh the temporary appropriations for general fund. I've highlighted again that $123 million. So you can see that everything lines up with what we're asking for versus the five-year forecast and also the budget document itself. the temporary appropriation document that you're looking at and there's a link uh in here
028to that as well has every other fund and the appropriations that we're asking for there with the other funds like I say you're seeing some some round numbers in some cases because those are these are strictly estimates at this point these are temporary appropriations that we're asking for to start the year out a lot of districts will go and we used to do this at one point just ask for 25% of the prior year as a starting point for a temporary appropriation. Um either way, we've tried to in recent years be a little more accurate in terms of what we think the actual final appropriations will be. So, this is close. Um there will be adjustments based on the union contracts that were approved that you've approved tonight. So, now once we have actual numbers
029as we wind up this fiscal year and then those new negotiated agreements, the 5-year forecast will change. It always does. That's why we bring it to you every month. But those changes will be embedded. And then when Angel brings you the the uh permanent appropriations in September, um again, she'll line that up to the 5-year forecast and you'll see how that's all changed there between now and September. Yes. How much change is there usually between typically there's not uh there's not much. Um but with the union contracts, so the all the all the contracts that have been settled, so there will absolutely be changes related to that and then there will um potentially be changes um based on what happens with the banual budget, which we'll know hopefully tomorrow what that's going to look like.
030But um so that could affect this in some way. It will probably certainly affect the forecast. It may not affect the appropriations as much, but it will affect the forecast and the revenue side of things as we, you know, and and again, we always ask the board to appropriate at the fund level. So, you're these are just budgets for spending. So, you're really not appropriating revenue. Mhm. Um, but the revenues in the 5-year forecast and the banial budget could change that. So that which would then change your whole forecast which then might result in you making different decisions or saying well then we need to dial the appropriations back a little bit or so it could result in some changes the appropriations but really this is this is the budget for next year as it
031stands and what we know it to be. So 123 million uh in general fund 172 all funds. Um so and again remember that the all funds that's you know your bond retirement fund for your debt 002 you'll see your permanent improvement fund food services there your self- insurance fund is invol is in that number $24 million so that's why that looks so high comparatively um you know in terms of that versus the general fund. So, any any questions I can answer about to your point, Malia, that you you mentioned earlier? Yes. The majority it's and I know we've talked about this before. This is one of those things where we spend a lot of time on this part of the general fund budget, but 80% of the budget is staffing. So, really, you've already set
032the majority of the budget through the the approvals that you've made of new staff along the way. Um, and so that's kind of the easy part for us in finance. Uh, but this is all the stuff that all those other accounts and all those other expenditures. Um, it's a lot of time for a much smaller portion of the budget, but that's the way it goes. So, and so everything is consistent in terms of percentages, uh, as they typically are. Roughly 80% of the budget is salary and benefits and then your other areas as well, right? And this is all an enormous amount of work that goes into preparing something which at the end we can't control what the state does, right? I mean the foundation program is our second maybe our third largest source of
033revenue after property taxes, right? Because Yeah. and the property taxes. That's what 75% of our budget and that we can predict fairly closely what's going to come in. But what comes from the state is a little insane because we don't know what they're doing. Well, and we're hopeful that the forecast itself won't change significantly um based on any of the inside millillage proposals that have been out there. That seems to have died. Um, so we're hopeful that that that won't be a problem. Otherwise, that's $7.5 million a year for us, right? That that just would go away. And so that's just, you know, kind of inconceivable. So, and I think that other entities who, you know, I I had a call from a city council member just this week and it was a question about
034inside millillage and just knowing that other entities get inside millage as well. And I think everyone kind of came together and said this is not the way to provide property tax relief to homeowners by getting rid of inside millage. that every entity relies on from your libraries to the park system to you know your school districts even though we have the majority of that and municipal government is also absolutely and many times that's how they fund the their pensions for police and fire so boy not a good look okay yeah yeah so so hopefully that won't happen the cash balance um issue you know as long as they keep it at at 50 or even 40% we're good. Um, you know, if they if they forced this 30% uh situation, that could be problematic. Um,
035and and I've also in one of the iterations they were kind of punting it back to the county and saying, "Oh, well, each county can decide whether or not they really want to enforce that, which could be ugly." Um, you know, and we know some counties are way more into that than others. Um, in Kaga County, not so much, but that could be problematic. You know, even if our district would be okay with a 50% cash balance cap, there are plenty of school districts all over the state who would be decimated by that. I think I heard uh I was on a call with that that Fleeter was on and he said that that I think that affects half of the districts the even at 50% that affects half. So if we were in a
036different way to educate kids in Ohio going to come from it's would be bad. And then just a reminder that in the five-year forecast, we have never anticipated any additional fair school funding for this bienium. So, you know, if they give us nothing, the forecast remains as it is. And if they give us, you know, something which is highly unlikely at this point, but that that will be all to the good. Um, you know, which again has happened in the past. the last two bianial budgets at this point in time we would have anticipated zero you know because that's the conservative approach to take you know and then as as you know we kind of ran into that where people will then look back at a previous forecast and say oh my gosh look how
037far off the forecast is based on what actually happened well depends on at what point in time you're looking and that's why we update the forecast every time something becomes known that's substantive so that you know if people are actually watching as the time as time goes on they can see the evolution of that versus looking at now, you know, now versus 5 years ago and saying, "Well, gosh, that's really far off what happened." Well, four years of fair school funding happened and and you know, COVID happened and so the ESSER money that we received happened and that kind of stuff. Well, thank Eric for putting this document together. Um, the artwork is wonderful that he included. Um, also, uh, the explanation of the budget process is really trans transparent and straightforward. Um, and so
038I appreciate that as well. I was wondering why the elementary budgets were a little different. Phil, thank you for um, you know, for adding that tidbit um, to our financial process. Yeah, absolutely. And as those things come up, if there's anything that, you know, anyone sees, I'm sure, you know, and Angel as well would want to hear any feedback because that, you know, when you brought that up, Phil, it was like, yeah, that's makesense. That's right. You know, I mean, you know, I think I think in our mind it was always, well, there are other services that are, you know, and other sources of funding that we're trying to address, you know, issues in the buildings. You know, that's why some buildings have more title funding than others and others have additional resources in terms
039of staffing. But even from the non- salary perspective, it made sense to to do that. So, it's nice to provide uh true legal equity in our school district whenever possible. There we go. Absolutely. Absolutely. Yeah. Um, also I I also did love the the art and I uh I sent a text message to Mr. Rossi whose daughter Margot was one of the artists. So, I said, "Oh, I didn't realize." I said, um, I guess we should look more closely at the name. So, your your daughter has a very prestigious, uh, publication credit. Ah, there we go. Yeah. And we as a kindergartener. Well, and what we do, you know, and my so Sandra Clark, you know, my Edmond and and finance, she actually, you know, at the beginning of every year reaches out to Toya,
040who then reaches out to every building and and collects art as the programs start each year. And we include student art in in the comprehensive report or in the budget report or anything we can to kind of, you know, bring it back to why we're here. It does remind us of why we do this. Absolutely. Otherwise, it's just a bunch of numbers and it's boring. Well, yeah. People's eyes glaze over if it's more than 25 cents. Um, so thank you. Yes. So we would ask for your approval of the temporary appropriations tonight and then as I said then the permanence will be coming your way in September. Okay. May I have a motion to approve the temporary appro appropriations for fiscal year 2026? I move that we approve the temporary appropriations for fiscal year 26.
041Second. Mr. Gainer, will you call the role? Miss Lewis? Yes. Miss Serini? Yes. Mr. Trimble? Yes. Miss Crunchaw? Yes. How many years left on our bond? A lot. Many. Okay. Thanks. I just look at that and I keep like wishful thinking. Could we just make it go away? No. I think I think what because we did refinance it. So it it's a lot less used. It's it's less it's less money, but still a similar term. So there there's probably at least a good 20 to 25 years left on that. Okay. Cuz is that originally a 35-year bond? It was. Yeah. Okay. Oh, well, I just look at that number and go, it'd be nice to see that go away. Yes. So, wonderful. Um, any other business before this meeting? Then I will entertain a motion
042to adjurnn, please. A motion. We adjourn. I second. Mr. Gayer. Miss Sereni. Yes. Mr. Trimble. Yes. Miss Grshaw. Yes. Miss Lewis. Yes. Thank you everybody and good night. [Music]