001okay thank you thank you C good morning everyone welcome to another day of potential snow getting figuring out where all my baseball gear is that needs to be ready for snow tomorrow maybe some rain we'll see how things go thanks for joining us all today we've got a few things to cover on the agenda today they we'll go briefly over the monitoring report even faster through 2.5.7 and then we have Margie on from our business services department and um Bobby's on as well to support to support in her presentations and then we'll switch back to working on the monitoring report as you know every every quarter we're giving to the board a monitoring report so this monitoring report was provided to the board on February 26th 2025 and we just want to walk that walk
002you through that over the next little bit of time and I always have to remember how to get rid of I those popups so they're not in my way there different parts of the monitoring report that also fall into play and one of those is that we also provide the um financial statements we do financial statements as required on a by statutorily required on a quarterly basis to be presented to the board and then give an overall presentation as well and in that presentation you that we've we've essentially kind of narrowed down the scope of the presentation over time in explaining where we are on the internal monitoring report and looking at the items of 2.4 you know that many of the things that we look at as part of fac is related to policy
0032.4 in its totality however not all of 2.4 necessarily is underneath uh fac or or is necessarily required to be and then fac looks beyond not just 2.4 but other pieces um but this particular one is be the district's requirement the superintendent's requirement to provide an internal monitoring report 2.4 to the board on a quarterly basis that coincides with providing financial statements as well the first piece that we talk about and have a different slide on this that we covered earlier in the earlier in the school year about overall fund balances the ones that are required by tabber or the Constitution the multi-year obligations then we have items that are required through contract so the bond Redemption fund through contract with our bond holders and then our food service nutrition fund is restricted based on
004on Federal Regulations after that we have a group of items that do then get assigned for a very specific purpose and it's can also be dependent upon the specific source of Revenue that is used so for example base those base monies are held within a base fund all the tuition that is generated from base stays within base and is spent on base same thing with pup activities Athletics and the like we also do set up assignments for example on on risk and we've talked about risk it and instructional materials as those key essential items that we want to make sure we are properly reserved for in the event that something happens so if we do a large instructional adoption we want to make sure that we have those funds already set aside years in advance
005because we know ahead of time what we want that schedule or that instructional adoption schedule to be that way when we get to the point when we're doing the adoption we don't then have to reduce expenditures somewhere else in order to pay for that adoption and the definition of unassigned is anything that isn't restricted or assigned so if it isn't that then it's unassigned the district does have a limit in 2.4 that limits the unassigned fund balance to no less than 4% and no more than 8% of general fund revenues and we tend to use the same terminology fiscal year spending uh that is used in the Constitution as part of the 3% Taber [Music] calculation so we show that we're in compliance with that piece that we show that our minimum fund balance percentage
006is meant of the 4% is met uh and we haven't been over that we do show the overall trend again this is through December 31st we also look at monitoring our cash position and liquidity and this year has been a very good year for liquidity overall because of an adjustment made on to statute that we've talked about in how we receive our state share payments so were really good on where we feel we're decent on cash liquidity we used to see a fairly fairly steep decline until property tax payments were being received but that is really no longer the case which allows us to have that investment policy comply with the investment policy to seek maturities that are are a little bit further out on the three to 5e time frame which then allows us
007to potentially generate more investment earnings here again we're in compliance with the mon with the Restriction that we do have uh significant enough funds then to cover the average monthly operating expenses as required under the policy um we've had presentations already this year with fact on counts payable in receivables but this is mostly the receivables and I think we talked okay I'm not going to put words in your mouth but let's just say it was last time because I can't remember last time it was but we thought um one or two meetings ago about receivables and Kelly had a really good question what generates those receivables and and where we have those around again it's mostly in in pupil activity it's in those student fee accounts very little now in nutrition because of of free
008meals and very little in base because we charge in advance generally we charging in advance prior to um kiddo being in the basee program so the bonds and the borrowing and we come back the next meeting we'll specifically talk about cop or not cop MLL sorry we'll specifically talk about mlo and uh mlo tracking and ensuring that what the district is spending funds on has been what's allowed and this is again through December 31st and we had not issued bonds out of the 2024 election at that point in time you've seen and heard already audit compliance and internal controls and that is the independent external independent audit which we're doing really well there and in fact I'm meeting with our auditor and a week or so to kick off the 2425 audit so I just
009did a little happy dance there because I'm really excited about getting started on another audit and again here is just what what we then do and what we're required to do as it relates to the quarterly financial statements we must compare to the same time period in the prior year so year-to date this year versus the same year to date prior year compare it against actual and then present an end of your forecast and that is exactly what we do U there's unless you really love um reading financial statements then uh what you'll see um we have those financial statements and we provide those to the board generally saying we are on we are on track and and providing any uh foresight into what may be causing any potential variances and remember variances positive or
010negative and here I think our our biggest potential for a variance is on the net investment of earnings you'll see that as of December 31st our budget for net investment of earnings was $4.8 million and year to date we had already received 4.6 million so very obviously we're going over will be over our investment budget which is a good thing because we're talking about Revenue all the other pieces I still believe to be U really in line the issue with other is it's other and we don't no no one can budget other because it's other it's and in fact we have an an account that's called other miscellaneous other or something like that U so it's difficult to know what what it would be but we do look at overall Trends and and to adjust
011those numbers on the salaries and expense side probably a little over budgeted so we'll be under budget on benefits by just a little bit as we get through the end of the year and that is the mix of people who are taking health insurance benefits as well as the effective rate of par benefits that are paid and that it we go through this with every single fund of course the emphasis is on the general fund because that is the $600 million fund and I think one of the things that that gets lost is that we do and we will start spending quite a bit of time on how we spend $830 million in a bond project notice that we spend $830 million on a bond project over the life of the bonds somewhere in the
012neighborhood of8 years notice here we're spending $600 million every single year so I know that the emphasis gets put on the bond uh but uh we're inally managing that much of expense uh and we're tracking that much expense every single year uh so by adding the bonds we essentially um again we're not adding to the fact that we're already tracking uh almost a billion dollars of expenses overall on an annual basis so we do the same thing then on sort of subf funds of the general fund which include our instruction Reserve these are the monies that we set aside for curriculum adoption our it pieces for um device um implementation or device uh making sure device refresh sorry and then our risk fund here where you can see we try to end or we will
013end with a a fund balance in our risk fund which is an assigned fund balance of $5 million which we feel fairly represents the potential for guarding against any unknown risk we do the same pieces then on on uh the bond Redemption fund which has the the principal and interest payments on the Bond as well as then the building fund which will then be come as you see out to the forecasted side as we start looking at the actual first trunch that was issued in um January the first issuance or the series 2025 bonds that netted $185 million capital projects that's where Marty and Bobby will speak about a little bit today and then the rest of them and I won't I won't won't go through uh each of the individual ones but these are
014then grants base on nutrition and the like and those will get presented again on a corly basis to the board as well as essentially everything that we talk about over the life of of the school year where we ensure and put in writing that that the superintendent is in compliance with all of the policy pieces and we we covered all these on the PowerPoint presentation but this just shows in 14 pages more of the detail that we had shown uh in each of the individual pieces and we go over this at a at a high level one to make sure that we're showing you that we're in compliance with the fact that we do need to provide these to the board on a quarterly basis but what you'll note is that again this particular one
015proceeds of the bond being spent on allowable items that is the presentation that we will start receiving in upcoming months and so you see again as I mentioned at the offset at the outset that you see the majority of these policies in our work throughout the year so I'm going to pause there and see if we have um any questions on the superintendent's responsibility to present financial statements and all of these on different piece of paper then all of these are available and and posted on on board dos which I had open and now I don't know what I did with it um but we know that it was on on board docs and we know that it was the um late February presentation February uh 26th was when it was on the board agenda
016which is this monitoring report right here uh letter D monitoring reports so this was provided to the board on February 26th so now we want to move to a really a much easier one and I'm not sure need to this in different order no Gina is still on so what we want to do now is we're going to move into uh just uh we don't really we're just going to lay this out here and this is um a policy 2.5.7 and 2.5.7 if we take a look at 2.5.7 what you'll see here is that and hopefully hope that's readable yes it is Aon so this says that the we shall not or the superintendent shall not fail to provide or we will provide periodic procurement reports to the board the level of detail and the
017frequency of those reports will be established by feedback from the board and is intended to be flexible so this gets um this report gets to be very easy to you because we have received no requests for feedback from the board and we have received no requests for procurement reports from the board therefore we're in compliance with 2.5.7 while we didn't provide anything we weren't asked to provide anything so that's hard to say I don't know how to say um part of uh one of the questions that was asked and we'll get into this a little bit later in our working session is uh is we know that that the board hasn't asked for this information and so we know that uh we're in compliance so once we get into to working session we'll have a
018few more things to add there any questions on 2.5.7 easy way to make up speed when it's that easy to report so um now we head back to to our uh overall agenda for today's meeting and where we are right now is we're now we'll head to the Deferred maintenance um in funds with Margie and Bobby and the maintenance of plant um facilities uh with Margie as well so thanks Margie for joining us a little bit earlier I'm going to to stop sharing which will allow you then to drive your presentation happy to bring it up if you want me to uh but if you could share it might be easier for you to drive all right all right thank you eron good morning everyone uh my name is Margie Ammon and I our director
019of facilities design and Bobby if you want to introduce yourself sure um Bobby I support the budget um and then through Business Services um support Margie and her team all right thanks Bobby I'm going to bring up my presentation here so bear with me for a minute to make sure I get the right thing going okay let me get to presentation mode here all right I need to go up a few okay does everybody see the cover sheet just want to make sure okay awesome so Bobby and I are reporting on 2.5.2 and 2 5.3 um which eron's already gone over the the monitoring period we are looking at is July 1st 20123 through June 30th of 2024 and Molly Brandt our coo has presented our monitoring report in January so Bobby and I are
020going to present those pieces to you just so that you're familiar with my role a little bit I in I co-lead our construction and Facilities design team with the director of construction my role is the director of facilities design and part of my role is that we manage all of our data for life cycle assessments for our buildings and we manage the database that holds all of that data so every one of our facilities is in that database and it helps us to calculate and estimate big picture what is the replacement value of our facilities and what is the Deferred maintenance or it could also be referred to as renewal and or replacement cost that's what we referred to uh deferred maintenance as in the bond we called it or in the blueprint planning process
021we called it renewal and replacement cost so I will try to not mix those terms up today uh it's easy to mix them up because they're they all mean the same thing but with that I'll get started uh the 2.5.2 state M uh in italics says that our projected cost of deferred maintenance shall not exceed the 10% of the total value of the district facilities replacement cost I believe this is the second year in a row it could be the third I don't recall that we are not in compliance we are currently at 14.34% um over the total value of the district's facilities uh replacement cost uh the goal hopefully is that with our new Bond uh about two uh 248 million dollars of that bond is to is to replace deferred maintenance items so
022we anticipate that things will look better in the future um what's what's hard to put in perspective is even though we're taking care of as many of those items as possible there are new things that become deferred because their life cycle ends so it's kind of a balance but we do believe that uh by the end of this Bond we hope to be back in compliance but definitely not a guarantee so just a quick overview our currently our uh re our total replacement cost of our facilities is about 1.3 billion and we at the reporting time our deferred maintenance renewal cost whatever you would like to refer to it as we were at 190 million just a little bit over 190 million and that's what got us o to that 14% And there are different
023factors that that bring us the increases we increased by 20 million this fiscal year in our deferred maintenance um it's inflation of construction and materials and Equipment it is also due to like I just mentioned that uh Parts and Equipment and components of buildings exceed their life so then they become part of the renewal costs and then also just the costs for materials themselves I think I did kind of mention that but besides escalation of construction itself and labor we also have equipment that becomes more and more expensive so those are really the main reasons why we feel that it increased by 20 million this past year I did want to let you know briefly so that you're prepared next year that we just finished a transition to a new software so all of the
024data I'm telling you about right now comes from cost laab that was our software that we had been using for about 16 years since I came here 17 years ago we chose to trans a couple years ago it was a pretty massive transition if you can imagine we have over 60 buildings and we had to take all of that data and transition it to a new system that looks at data a little bit differently and so when when we report next year it is I I want to say likely and I also want to say for sure that our deferred maintenance will increase at a at a noticeable uh cost it will have a not a quite noticeable increase however so will our replacement value so hopefully we'll be still in the range uh of
025the 14% over but I do caution that we could reach a higher level of not being in compliance because we're looking at our buildings differently in this new system and as we continue to dial it in I'm sure eron could speak to this too bringing on new softwares they aren't perfect for the first year you use them you're dialing them in the team's getting used to using the data uh we're we're reviewing the data with other stakeholders and massaging it so our hope is that as we get this software more up to speed we feel it's pretty good right now that it that we'll get our arms wrapped around it and by the end of the bond things are going to look pretty good but we are tracking data a little bit differently cost laab
026didn't allow us to track all data uh so now we're tracking more data in the system which definitely makes our replacement value and deferred maintenance go up so just be prepared next year um for those changes Michael looks like you have a question yeah just to understand that so is it that it's using different assumptions about useful lives or cost estimates or because I think what I heard you say is you're we're capturing more data does that mean that there are assets that are not being captured today that will be captured in the future and that's why the costs go up why does the why does the percentage change yes it so there there were items that we weren't tracking because cost lab didn't have them and we would have had to do a lot
027of customization and we just weren't able to do that so I can tell you if few things that uh just a few examples of items that are now in our new system our new system by the way is called vfa it's vfa facility we don't know what that acronym stands for we've asked them I don't even know if they know but it's uh it's a product that is owned by gordian uh a management software by gordian they are a pretty massive company they also are an industry known company because they also own RS means which is a nation Nationwide cost estimating system that is used by contractors by organizations by large uh property development companies to estimate costs for building buildings so this databas so they own that that data and update annually and it
028is part of this database um the cost lab did did not have ours means they had their own database of construction costs and material costs so we feel that's going to be more accurate and what that allows them to do is provide more options for items we can include so some items that are trackable now that we're not in cost lab are landscape elements such as um grass areas um irrigation playgrounds scoreboards dugout storage buildings so these are just a few of the items that we didn't have in cost lab another large difference is we in cost lab everything is was in by components so our so rooftop units were their own individual components we even had light switches and Outlets as individual components and they were estimated per building right we've chosen to go
029with more of a system based approach so instead of having separate outlets and parts and pieces pieces of electrical systems which we didn't have them all in will have an electrical system for a building that includes all of those items as RS means items so they've created those systems for us BFA has and they're they cover more elements and more which then creates a higher replacement value and a higher deferred maintenance if it's out of its life cycle okay so let me rephrase my question and make sure that I'm clear about this so the way I read this policy statement and Aon please weigh in it makes no mention of how we track the the items right so my worry in what you said is if if there's a difference in the assumptions around useful
030lives or the different in assumptions around replacement costs and that's what changes the total value of the facilities or it changes the value of the maintenance deferred maintenance that I understand if there's new stuff that we're capturing that's not in the system now do we have to account for the stuff that's not in a system now because as you mentioned dugouts and scoreboards and landscape and irrigation that sounds like it might be fairly sizable in dollar amount is that is that a concern for us that we have to account for in the report today it's in the system now for next fiscal year but it wasn't prior I guess what I'm saying is for the current fiscal year the one that we're reviewing and Reporting on now okay go ahead ER and I think we
031can we'll talk about that uh Michael in the in the followup at the end but no so we are looking currently just at the current definition or the current way it was replaced and then I think as we look to towards suggestions for next year we'll put this as an aster of things that we'll we'll be on on the lookout for next year as we understand the definition of deferred maintenance and what is in what's what's the definition of or what's in the total of those assets that are and Facilities that are being tracked okay I I think as a followup I think it'd be helpful for me just to understand you know just marking to your point like to understand if those are now in the system what are the items and how much
032do they add up to I'm just curious you know we don't have to do it now on the call but maybe it's a followup to understand you know just sizing is it bigger than a bread box type thing I'd just be curious to know what the scope is of the stuff that's that's not in the system today I mean if it's the Minimus and you know immaterial that's that's fine um but the list of stuff sounded like it might be something to think about yeah I think we could come up with a list for the future and I'll I'll let eron and Gina tell us when we should do that and also I just want to mention to uh Michael that the what I tried to explain is in the sh's 2.5.2 the we didn't
033want to put all that on these slide presentations but I believe you guys do have the full monitoring report so feel free to also refer back to that to read it again and maybe it'll make more sense but I do believe next year when we report if or if we could probably answer those questions questions or eron and if we want to come up with a list sooner than later to report to this team I'm happy to work with you all to do that great thank you okay if there are any other questions I'll um go to the next slide for Bobby sure um thanks Mary so kind of the other part of this one um is essentially almost like a a cap on it um so the the verbiage is on there basically a
034maximum 3% that we hold um you know within Replacements um within the capital reserve we have earmarked within there um within a certain project um plant basically contingencies um with that it's as Margie said our our denominator basically is 1.3 billion uh correct Margie for our replacement costs um so hitting 3% over of that is a lofty achievement on that um so as you can see kind of in the little subtext there that out of the 3% we're at 03 um so we're well within you know under that cap um one thing to note is that we did use 1.4 million of that one for part of North Stadium um approved by Boe um within you know that period um so kind of a again I think and Erin if you want have color commentary
035on it the way I always understand this one is that this is basically to keep districts from keeping a huge amount of fund balance um and that they're you know constant recycling These funds and it's not just sitting there um and it's a reasonable amount that we're you know kind of putting away in contingency for Planet replacement I think that's about it on that one Mar you just want to all right thanks Bobby any questions for Bobby then let me go to the next slide here all right so the next one is that we shall not that we shall not fail to maintain uh the facility uh to be open 99% of available instructional hours and during the fiscal year that we're reporting we did we were out of compliance for uh one of our
036building buildings and it was on Martin Luther King day when we had the the freeze issue um not this year it happened to come this year too but the previous year and some water lines broke and flooded parts of Centennial Elementary School and it did uh have to be closed for some time so it was um operational for less than what it should have been um but believe they made it up somehow I don't know those Logistics but since then we put in protocols to avoid that and those were used this fiscal year and it was very successful and we didn't have the same issues so we just wanted to report on that piece and that is also in the TW point in the monitoring the full monitoring report any questions about that Marie um
037while you put in these mitigations at Centennial Elementary School were any other schools considered realizing that they didn't have the same type of pipe breaking and flooding issue but just curious if that is something that should be considered to be expanded to other schools or any thoughts on that yeah great question Kelly that so the protocols that were put in place were districtwide um it included custodial teams going and checking on items we changed I believe some set points on hvvc equipment there were other protocols that were put in place but it was a districtwide plan that involved all of our buildings so that we wouldn't have breaks somewhere else so yes it did address everywhere excellent excellent thank you dear yeah you're welcome I believe that is is our full report so any questions
038if not I'll stop sharing great thank you Mary I appreciate it always glad when when the team can hear from more folks so appreciate Margie and and Bobby for hopping on today thank you guys thank you thank you you don't need us to stay right Aon or would you like us to stay no need okay thank you very much thank you everyone have a great day thanks you too and Camden that ends the meeting and we'll we'll go now into our work