Adams 14 Board of Education Virtual Study Session

001foreign I see stuff happening in the background Cameron are you going to give me the thumbs up when we're ready yes I always will um I thought so but the few steps that happen in the background so that I can ensure that the board meeting is accessible from the right I see stuff happening in the background Cameron are you going to give up when we're ready I will leave you alone I see stuff is happening thank you Cameron uh thank you yes there's several steps I'm doing and I've just completed them um we are ready and live wonderful thank you so much um welcome everyone to our June 21st 2023 budget study session um may we first start with the Spanish interpretation information thank you madam president Buenas Los participants foreign thank you so much

002um we have one uh very large agenda item the 2023 2024 budget discussion um Dr Lauria are you um introducing Mr Moss or I'll hand it over to you thank you yes Madam president members of the board my apologies I am under the weather um I we do have today a budget and financial plan overview um study session uh you have seen this um the uh many of these slides uh last week we uh during the board meeting uh you saw an overview of this it was a much uh larger view of it uh 30 000 uh feed a few um will today we're gonna get closer into the details uh not every detail will be here as we continue working through the process uh we will have another study session on this um in

003in the next few days before um before we ask you to to take action uh by June 30th no later than June 30th so I I have Mr Doug Moss our chief finance office her officer you will see from one to uh slide seven it's basically the overview uh that background in context the information that you received on Tuesday so I'm gonna ask him to go fairly quick through that so that we can get into the meat and into the numbers the the stash the the PowerPoint or the presentation is uh divided in buckets if you will uh you know where is it that we get the different uh types of Revenue uh that makes our entire budget in how we are using and spending some of that uh some of those fun the purpose

004of today is for you to ask us many questions as as you as you wish to start marinating on it to see uh the background of how a budget would come about a budget and uh you know um in in in and uh this uh presentation hopefully will allow you an opportunity to understand and ask questions about our budget and as we continue moving forward so um without further Ado I will pass it on to Mr mosque it's uh quite a bit to understand and please uh jump in at any time that you need um to ask about any any of the things that you hear um the budget one more thing actually is not complete right the budget process is not complete as it was shared last time um as we start peeling the

005onion and looking at the systems that we have in our different departments and as we get ready or start getting ready for the budget and finance um uh planning process uh we quite Frank it was almost like peeling an onion we uncovered at that time because it's the first time that we um you know get to this point with a budget right under uh under um now that uh you have the board has the control back uh this is the first time that we go through this process so as we are going through the process we realized that not every system was in place not every every structure was in place not every uh process was in place so we are building as we go which has taken quite honestly a little bit more time

006and um to to do but um we'll continue working on those uh tweaking those for to bring you a final budget by uh by next week my apologies I'm so congested any questions about that before I pass it on to Mr moss from your or anybody on the board all right Mr Moss thank you Dr Lauria members of the board Madam president Community um it's my pleasure to at least start bringing something a lot better to you I mean we've done a lot of work I mean when we first started this we were 90 million dollars in expense and we've cut it down considerably and we're still moving forward in on that process this is going to be a a process where we can get something finalized next week but then we're gonna still keep

007diving into the weeds as I call it because we're finding so many wild and crazy things that have happened and some funding sources that we thought we were going to receive that we did not receive in in years past and so we're making changes daily uh today we cut two million dollars out of the budget on things that were in place but there was no nobody uh per se in position control or assigned to those account numbers and so it was just a number sitting there for however many years so we're finding those kind of things we're going basically uh line item by line item now and making any changes that uh we need to reflect in the budget to help us out so you can go to the next slide I'll go pretty fast

008on these because uh everybody's seen these these are just uh basically telling us we had to present a budget we did that on the 13th uh we're doing a work session today that's not in here we'll maybe we'll do another work session prior to the 27th and then we have to adopt by the 30th of the end of this month and then throughout the rest of the the year we can do supplementals and probably in October after October count November time frame we'll start working on another draft of an amended budget and bring that to you in January by the end of January next school year uh actually Ramona can you go back to the previous slide because per discussion with Madam president um the action uh needed on the 27th we still have until

009the 30th so uh there's an uh opportunity for us to have another session of the 27th and then move the action needed to a couple of days later so that that will be um you know per minus presence um in the board's uh pleasure but that is an option that we discussed and I think we're it's gonna it's gonna be rather than having another study session before the 27th have the study session on the 27th in allowed a couple of days there before action is needed so I just wanted to clarify that okay I'm good with either um the next one Ramona please this is just our fiscal Sturgis ship that uh we abide by you know we try to put a plan together uh we spend dollars wisely and uh it is uh the

010the taxpayers money and so we have to wisely spend that money according to state law and uh we uh on a quarterly basis we do provide updates to the community to the Board of Education as to where the spending is on a quarterly basis next slide um that's just the District overview we align our budget with your vision and goals and we allocate the resources to meet multi-year plans as needed and we report on the progress on a quarterly basis so next slide please state law requires us to submit a balanced budget not overspend this Budget on an annual basis if we do we have to allocate a portion of fund balance to balance the budget and that's why we do the resolutions uh and we'll have those prepared and ready to go at the

011board meeting uh whether it's the 27th or the 30th or whatever day we'll have those resolutions ready to go and we still have to maintain that five percent board policy uh fund balance and so we are doing that and we're in very good shape right now next slide please this is just showing some of the things that have happened at the school Finance act uh the inflation rate for this year was eight percent uh total program funding in the state was 10.2 million and we received only 900 and about 30k thousand dollars of that uh basically because uh are decreasing enrollment now we still do have The Five-Year Plan or average and that helps us quite a bit uh next year one of our big numbers goes away and so it's going to affect us

012next year in next year's budget and moving forward unless we can get some students back in the district um we did have the state buy down the negative factor or budget stabilization factor is what they call it by 180 million dollars this year our portion of that uh was one point almost five million dollars that they gave back to us I want to say and so next year they're possibly saying that they're going to buy down the entire factor which would save us another 1.1 million that would help us for the following fiscal year as well so next slightly this is the for people Revenue amount that we received uh the prior year was 10 198 this year we're receiving eleven thousand three hundred and forty two dollars you would think wow we're gonna make

013a lot of money but because of our decreasing enrollment it doesn't pan out that way so um our funded pupil count for last year was five thousand seven eighty two they're projecting at five thousand five hundred and sixteen that's a decrease of around 266 kids so we got to really keep the bush and go out and try and get some of these kids to come back and I I think some of the registrations that are happening have been very well uh uh how do I want to say it uh people are showing up I guess is what I want to say and and that's good to see so I think there's a Mario can always chime in or Dr Lauria I think there's another one coming up in the next day or two or so

014maybe even this weekend again so our staffs out there hitting the streets and trying to get our kids to come back so we'll see what happens okay thank you uh uh this is some of the uh things that are causing our one-time fun day it's not really one time hopefully it goes away one of these days soon is our uh state board orders um it's costing us quite a bit of money um something that's not funded by this state this is coming out of uh our own general fund out of our own cash account bank account is what you want to say or your checking account um you know the state ordered us to uh hire tntp so we have them on board um we're unable to find substitutes or even teachers so we had

015to hire a company to come in and help us whether it's overseas bring in teachers or Subs within the local communities or whatever so they're you know this this whole entire package is basically running us about 7.7 million dollars a year which that's unfunded so it's gonna eat into some of our fund balance as we go so hopefully we can hire all of our teachers and we don't need as many Subs next year um kntp maybe in a year or two they say you guys are doing awesome your scores are up right where we wanted to get you and we're out the door that would help us tremendously in the next uh couple years um we do have full day uh preschool starting this year that's something that uh we'll see how well the state

016funds it um I'm still I think all of us Finance people out there in the schools are still trying to figure out are they really going to fund it at 100 like they're saying or is it just going to be well we ran out of money and here you go it's up to you guys to to figure it out like it happens quite a bit um we get in in install the academies which is something that this community has been wanting for 10 15 years um so with the implementation of all all of these as well that makes up that seven million dollars so um next slide please these are our um I'm gonna have to look at my other one because pictures messing me up these are the uh revenues and expenses where we

017stand today um that we are projecting and budgeting for um what we're still projecting the revenues to be right at the 78 million dollar Mark um and that's a local share which is your property taxes your um no Levy override dollars your special ownership dollars and uh those are coming in right around 37 million dollars is what we're projecting uh state revenue which is our Equalization and our categoricals and I'll uh I got a slide uh that'll blow your mind on categoricals because that's they give us just a little chunk of money and we gotta fund the rest so later on down in the slides I'll I'll show you some of that um expenditures we've gotten those down quite a bit compared to where they were uh two or three weeks ago um we were

018looking at our expenditures around almost 90 million dollars we've cut it down to 84 so far and we'll keep trying to get that number further and further down down the down the path um a lot of things like an instructional there's tntp and and some of those uh services within these budgets that make it look like holy cow uh instructional Services your your increase in your budget by three million dollars what's going on well that's got to be tmtp it's got to be substitutes things like that that really skew the the way it really looks so I've created another slide for you that we didn't get a chance to get it in today but we'll get it to you this weekend that you can look it goes by program and it shows salaries benefits purchase

019Services supplies on down the line for each of the programs so that gives you a better idea where the money's being spent being that like this where just one gigantic slide really can't doesn't tell you like where's the money really being spent is it in salaries which eighty percent of our budget is salary and benefits so most of it is salary and benefits but then you have purchase services that you know we have to contract out uh contractors for special ed or nursing counselors uh social workers and and those those dollars add up as well um those are just some of the line items uh within the general fund and you can see you know we went from 72 million and this year it increased by 11 million dollars yes a lot of that salary

020benefits but most of it seven million dollars of State unfunded stuff um the academies is in there um we've added to add more staff Within the academies as well then what we just thought okay four teachers well it doesn't work that way you also need to add core teachers within there that uh you know those students still got to get a math a science a reading and and so on so we're adding like four more teachers and and you need an assistant principal to help you need other things so it just all these unfunded things but things we want to do is gonna gonna make our fund balance go down so we are using a little bit of fund balance to pay for these now but some of those once once the academies get rolling

021those dollars are going to be less because we're not going to need as many like principles to oversee it we're not going to need secretaries to oversee it uh those kind of staff that'll drop it down so in in a year or two once it gets rolling you'll see that the academies isn't costing the district as much as it does when you start up because it's going to be it's going to be fun and I can't wait for it to start because I want to go over there and see how it's all working out um yeah Madam president uh later and board members later in the presentation you will see a slide just for the academies right but what Doug is referring to if you will think of the academies at one small school that

022is going to be faced in the grades 9 10 11 and 12. right now we only have ninth grade but we still continue having the majority of the high school as a comprehensive High School 10 11 and 12. so there's an overstaffing if you will uh to ensure that the academies are going to start as they need to and that overstaffing um will be decreasing as the academies grow so uh the first two years are the most costly because it's almost having two small schools in one um but it's going to start tapering down as soon as next year because some of the staff in in the senior grade for example can be moving um uh down to to the new ninth uh that year 10th Grade Academy but you will see a slide uh

023further down yeah um I raised my hand and I always forget if I'm driving or what I'm doing in these scenarios um I I just want to quickly interject I think um these last two slides for me um really highlight the importance of tracking these different things I'm I almost think we need to um create a separate line item completely for these unfunded State mandates that we're receiving because to me it's it is truly skewing our finances I mean we need to know where we need to be allocating these additional resources and on paper it's showing just like uh Mr ma said you know it's like oh you know we're doing all this investment in our instructional well not really it's actually an unfunded mandate which of course is doing great things and will eventually

024go away but it's not allowing us as a board to assess what initiatives are working and what aren't um and I I know how much work it goes into moving to a project-based kind of financial reporting so thank you Mr moss and to your team um but I think it's going to be really important for us to talk about what we're investing in these academies whether it's instructional support uh whether it's capital investment um and and that's including in any initiative we do so the Pre-K I think that's going to be a huge thing um and even something as simple I say simple but option 5B where where we're um changing the way our schools run there's all of these things associated with that that I think we need to capture to almost build a

025financial history and and um really what's happening in the district so we're not looking back and wondering like how did we have to transfer out 15 million dollars from our reserves um this is why so I just wanted to add that quick note thank you for allowing me to interject you bet no that's a good idea we could put something together storing some of the the history over the last five years and moving forward where we go forecast wise uh forecast models almost done we're get getting close uh to unleash that and that that'll be something I can't wait to tie into um one thing on on this forum you can see on the transfers down below we're only transferring three million dollars to cap reserve and also the cop fund um we're going to

026use a lot of the fund balance that is carrying over this year in cap reserve and I'll get to that slide down at the end but I just want we still have to show it within the general fund uh revenues and expense that yes we are transferring money again it's just not as the the amount the last two years that have been uh moved over so that helps us out in the long run and we're still going to be able to do a lot of the projects that uh we have plan to do so and boilers and those kind of things that need to be done in the buildings but we do in the next two three years need to do really look at getting a bond measure going and trying to get the community

027behind us and and get get some of these dollars to help the general fund not have to fix nickel and dime things that should have been done years and years and years ago so yeah um can you speak a little bit about the Central Services increase of two million dollars because I think instructional Services uh the big items right the the three million you explain the two million for instructional staff um support and um I think uh those those pieces with as dog explained with all the orders right the accreditation the reorganization and again the accreditation uh forcing us to even spend um almost almost three times uh more in substitutes that we were thinking just because of the teachers that um that that didn't come because thinking that the district was going to be

028closed so they uh went elsewhere so those are part of those um orders that have created such an impact on our um on our um Fund in our district But Central Services have 2.2 million dollars is very unique so it's not an extra expense really so different way of allocating this fund so if you can speak to that a little bit for for the board in in the community watching Love You So in the years past you always had an insurance Reserve fund and you would transfer two million dollars to it and then on the financial audit it showed you transferred two million but then you got 2 million back and it just skewed everything since we're not a fully funded Insurance District which I hope we never go that way I took that fund

029away it rolls up into the general fund anyway so I just took the expense put it within the general fund expense so that's why it looks like that is is the way it is if uh if I had left it you would have saw that we were going to transfer five million dollars instead of three million dollars in transfers so now it's just moving all of the property uh and liability and auto insurances unemployment insurance workers comp insurance we move it all under the umbrella the general fund and we manage it within the general fund instead of its separate own little fund because we can still do it in the general fund it's by its own uh program code so it's just easier and it makes it simpler and it makes it more transparent because

030you're not moving five million dollars over and then bring in two million dollars back when uh the audit comes and then everybody's like well you put 2 million in but then you took 2 million out and it just made no sense to me so we did got rid of that fund and we also got rid of the fee fund as well because that's the print shop and uh the warehouse and preschool and things like that well they really can't sustain themselves that well anyway so we just moved them back into the general fund put the expenses as well in the in the general fund and the revenues will go on general fund so it just cleans it up makes it easier and I think the Auditors will even be happier because that's two more funds

031that they don't have to worry about now it's all going to be right within the general fund and it allows us to track the expenses throughout the year and be reporting back to the board and the quarterly updates of how much it has been spent rather than basically I move it from the back pocket to the front pockets and then back again so it's just moving the money from one site to another that makes it very difficult to track but this way it's easier um to track and for the board to uh you know be monitoring the expenditures there Madam president thank you the so that on the opposite end of that is that why we see the almost three and a half uh million reduction under transfers out is that where previously lived okay

032thank you correct you you would have saw if we had that still in there we would have been transferring instead of three million dollars five million so yeah it just makes it look cleaner I think and and will make it a lot easier for everybody to track um as you can see fund balance down at the bottom that hear about three weeks ago I went into Dr Laurie and I'm like well we're down to 12 million dollars in schuette what and I was doing the same thing and we uh this is when we just said nope we can't be there so we gotta we gotta get I mean even with the 7 million the state took away or didn't take away from us but mandated us to spend think if we had that seven million

033we'd be right where we are right where we were last year even with the raises that we we have given the past two years so there's some things there that uh play in um yes we're gonna have to take some out of the fund balance this year and possibly next year until those go away and then we can build it start building a backup I hope that makes sense any questions because I know this is a very heavy slide that we're going to go in details as I've said by and you will be receiving by each one of the categories here in expenditures how each one of uh for example taking the first one 42 million dollars is being spent yeah and the differences um one question that I had that clarified for me is

034about the revenues the one to the third dark line uh or bullet in there there's no bullet that subtitle there uh revenues federal revenue if you see the actual for 19 20 is a little bit over 3 million then it goes to 2.8 then 21 22 3 again uh last year we received again three million dollars next year we are expected to get 8.2 these are the taxes or the monies that we get from the federal um Federal funds for the Arsenal that we have there because as Doug explained last time that is land that cannot produce any kind of Revenue with uh property taxes or anything because nothing can be built there so the federal government gives the neighboring or the districts that are impacted by that um a revenue so it fluctuates from

035three to 2.83 right up and down this year we're getting the the low end uh of of that I can I would not be able to tell you how the federal government calculates that uh but if you see the pattern it fluctuates between three and some change to 2.8 uh so we're expected to get this year Dr Lydia you made me think of a good question um talking about Federal money where and how is the coveted relief money uh reflected here that is in the uh grants fund and and it's coming down the next couple slides remember last week we only had like three million dollars that we had budgeted well now we're up like 17 18 million dollars back to where we were because now we're starting to get all of our Awards in

036and our federal programs Department they've really been going after grants uh it seems like every day we're getting hey uh you got this grant you got this grant so those are starting to pour in now and their writing grants as fast as we can get them to ride them uh we're looking for all sorts of different grants so may I ask why um why we don't have a grant Revenue line is that kind of an odd question to ask why isn't that counting to offset some of our expenditures you'll you'll see that in the grants fund when we get down there you'll see the revenues coming in and then some of the things you know that cover salaries benefits and those kind of things as well and it's this is our just our general fun

037we're talking about now that's my confusion I'm sorry okay thank you you're good that's a good question because that's why I said at the beginning it's almost like buckets right we receive from one run from the other um so that it it Paints the picture of if this is the salary and the monthly basis you spend it and you don't extra stuff you go to the savings account which would be the the fund balance uh but the grants are separated and I specifically asked them let's let's separate them in buckets because it creates a lot of confusion because although we say we went from almost four million 3.6 to 17 million dollars in Grants why do we see a you know a a deficit here of Aid that we still need to cover well it's

038because the grants are very specific to what they were written for so we cannot just use any grants to pay for any expenditures uh so so as our fund going back to your question is not here however here is the impact of not having asthma right because uh three years ago there were 71 positions that were hired using Sr funds so of course we knew they were going to end and every District knew that you know when those answer funds were ending it was going to feel like the Great Recession so those positions were moved from Sr to General causing us you know such a number of positions and things that now without s are we needed to cover here then uh that generated the second layer of the central office restructure uh to ensure

039that we were smart with our funds and that our funds moved closer to our students our resources uh so although you don't see DSR funds here you see the impact of not having s or any more in those eight million dollars so there are a lot of pieces that go into it and as we receive more grants like Doug said now we're being awarded all them many brands that we in our team applied for uh your uh and we'll see you know being the champion for it we're increasing uh 13 to 14 million dollars in Grants but very for a very specific use that we'll discuss in a bit hey Doug can I ask a question about the federal uh the federal revenue that we get from um for the for the Arsenal Rocky Mountain

040Arsenal yeah so do you know which I mean because you said as so would affect the surrounding District so that'd be Denver us 27j do you know how they would how how they how much they get on their Grant around there because I feel like as we go farther into this with those funds um they've opened up that land for Denver and 27 day to start building on and it seems like they're they're starting to get the revenue for some of that housing there and how they would not increase some of it for us because we're still probably one of the more highly affected um of that because we're dead center because Denver has started to build all that stuff behind Dick's Sporting Goods Park which used to be the Arsenal and they've built houses

041businesses and then you go up along 96 um out there all that used to be part of the Arsenal now that's 27j um so I'm just trying to figure out if there's something um there that we we should be getting more because they're still the one that's mainly impacted where those ones are now starting to get revenue from it I don't know if that's something we can look into or if it's something we can ask a question about no that that's something new to me um that's good to hear and I'll uh I'll do some digging and see what we can find out I thought all that federal land was untouchable and uh that's why we were getting the the impact Aid money that we were getting um to help us out but if somebody's

042going out there and developing within those areas we do yeah so expect money or somebody what's going on yeah everything behind Dick Sporting Goods Park needs to be the federal uh used to be the Arsenal so now that's all Denver property because that's where they built on the uh the street right across the street from the new what is it Northfield I think Northfield high school that they have for Denver public schools all those housing that used to be that used to be the Arsenal so it wasn't able to be built on and then I believe the Arsenal used to run all the way up to 104th which now it 96 to 104th is all 27j and those are all those housing developments out there that are building being built so that all of that

043used to be Rockman Arsenal what they did was about 10 years about 15 years ago they changed the pH level that can be built on the Arsenal so it can be higher pH levels and they started to build housing there but it's all Denver and 27j now that's getting that property tax okay no that's great to know well I'll do some leg work maybe get a hold of the county maybe even get a hold of the government and just see how all that is uh divvied out and divvied up so I'll do some check-in I I didn't know that there was any building going on being new and stuff uh I always thought impact Aid money you know was strictly just that those grounds they can't be touched and but now that you're telling me

044they can be I'll I'll do some leg work on them all right thank you you bet I see your hand up yes yes I I just want to clarify we can still raise our hands this way right because it makes more sense than if we just keep jumping in um I just wanted one really quickly around James Quest um Mr amador's question is um you might want to ask about the buffer land and because Adam City High School is built on the buffer land which was also the Arsenal at one point in time so there's buffer areas around the Arsenal where you can build and then there's the Arsenal area that is totally restricted from being built on and so that's where the Wildlife Refuge is that there is buffer land that went around and

045some of that was donated to the city and then the city donated the property that Adams City High School sits on to the school district that's kind of how that happened and I have a feeling that the new builds around are also part of the buffer land that was around the main area so I would double check and make sure that some of those questions are asked that way so my question though just to clarify when I'm looking at the fund balance is I I'd like to know on it's been a while since I I maybe I ask it all the time is um I know we have to have certain amount of reserves certain months I think of reserves um to be okay so what how many months of Reserve are we supposed to

046be at and are we there and is the projection from what I'm hearing if everything keeps going down um by the time that we start I mean I want I want to be proactive here is where I'm getting at and I want to be reactive that next year we're going to be looking at this and saying oh yeah for the next two years um our our reserves have gone down to the point where we won't be able to manage if we have a crisis um because we are not at however many months we have to be uh when it comes to reserves so I guess that's my question where are we and what does that look like what is that projection looking like because I know I heard you say and we've said it many

047times that we would love to get a bond pass but um not but but yet I should say yet I know realistically how difficult that is to get a bond test and I want to make sure that we are doing what we can now to be able to have the the dollars we need to maintain our our reserves where they need to be so that you know in God forbid another crisis situation we're not you know caught with our patents down like they say without the the funding that we need to continue operating so if you could just Enlighten us as to what that looks like so so over the uh next few years we are going to have to tighten tighten our spending and that's that may be Cuts especially if we keep losing

048kids um that that's that's a big driving factor into all of this is the amount of students we're we're losing and if that keeps up we're gonna have to start making the tough decisions and you know in one of the slides last week you know I said we're gonna have to start having those tough discussions with the board and saying you know if if we keep losing the kids the way we're losing them right now we're we're gonna have to it's gonna be Cuts but it's going to be people in programs and back to the old day of well maybe you only have one PE class and maybe you only have one art teacher and that's it and they service the whole District you know I know it hadn't been that bad here but I

049I've seen it where it comes out to that um right now fund balance wise if we can stay around the 18 to 15 million dollar range that's going to cover expenses for two three four months um you know hopefully God willing that'll never happen um but as long as we can watch our spending and that's something we're going to bring up to principals and directors and Chiefs and everybody who's managing things we're not just going to go out and start spending money like like they have the past couple years um I'm putting into place this coming year POS have been just the principal approves the purchase and it's approved and P cards you know I loved when I got here I'd love to almost basically get rid of all the P cards and because that's

050that's an open mic for anybody to just go out and buy something and we don't know it until we get the receipt and the invoices so I'm going to implement something where we're going back to more POS principals are going to need to approve a PO then it'll go to the chief of that department and then that department once once they approve it it'll come directly to me and then I will make the final decision whether or not they need something or not I I don't want to micromanage per se because I don't believe in that but we do really need to watch our spending um this year alone we spent over uh we spent a lot of money on just food and it wasn't just you know departments it was schools they were just

051spending money and spending money on food and I was like what are you guys having a pizza party every week or what's going on here so we we are looking in into some some of those kind of things uh we're looking at overtime um we spent a lot of money on overtime this year and we're starting approval processes now in fact we've started it now because we pulled I wanted to see how much are we spending in overtime each year well it was substantial enough for me to say Dr Lauria we need to stop this and uh I mean there were some staff members getting 18 19 000 extra this year and I'm wondering why that person was even allowed to get overtime in the first place when for for the position they were in

052so we are implementing things as we find them um I don't know how long this has been going on but uh as we're like Dr Laurie said pilling the onion here we're finding more and more and more things that we can adjust and make better and and generate more dollars for our students rather than uh not good spending habits and practices so we're looking into all that and uh but I I think find balance wise we are in good shape right now um absolutely I like the monitor it monthly I really do and uh the last I'm one that hates to see any fund balance go down but with when we're having to spend seven million dollars a year right now that's that's taken some of our fund balance every year right and you guys

053and you guys have seen that the last four years and thank God it I don't want to say this badly but covet hit well you can look at the year 20 21 you only spent 60 million dollars well then the next year you jump up because oh we cashed all that in put it in fund balance but really you didn't you just moved everybody over to the uh Esser funds right well now the Lesser funds are going away and guess what now we're having to catch back up because of some things that they did two or three years ago that are affecting us now right and director Sylvia slide number five um spells out that the board policy requires for the fund balance to be five percent of the um no no less than five

054percent of the general fund expenditures so if we're spending eight million that would be uh no less than uh five percent of the 80 million in expenditures and the tables three percent is that correct doc so it will be the three from board policy for General funds expenditures plus uh the table that by law we have to to reserve in our fund balance so that would be a total of approximately eight to yeah eight uh eight percent of the expenditures uh and if you round up uh being at um 80 million dollars in expenditures which is a little less but if you round it up um that will make it [Music] um you know less than five million dollars in the General in in the um pandang and and I saw that I think my

055question is more towards the months I I want to correlate the amount the percentage amount with actual numbers so what those mean um to you know something more understandable than the percentages and so it makes sense that um we have a certain amount of months that we can operate with just that um and to me that that's where that's where we want to be uh proactive and realize that as long as we keep a certain amount in there to cover us for that amount of time um we should be good right and so to me that's that's the importance so yes I I did see the the percentages as you guys know I'm I I guess I'm percentage uh not as percentage Savvy as many other people because I like to see the full numbers

056and to see the full picture of what that means so um that would be about eight million dollars that we need to have in our fund balance no less than that going less than eight million dollars will be too risky um we'll be able to cover by Statute what we need to have set aside by for Tabor but not for the policy the board policy right so eight to ten million dollars I would say it's um is as a minimum that we what we want to see there we also do not want to or we need to keep in mind that if we are considering going back to the voters for a bonds or additional you know Mill Levy to pay salaries for teachers if we think of bond and meal Levy Mill Levy being

057uh we can use that money and things are not tangible meaning salaries or benefits you know things for teachers whereas bonds specifically for the buildings if we want to go back to the voters for any of those two if we have a fund balance that is you know three four times you know what we the policy says you know the normal answer could be like you're saving money what you want some more right so we want to use it um in four years our buildings have not been uh taken care of we spoke about this uh the facilities three years ago called for 100 I mean 130 million dollars to fix all the buildings this was three years ago now it could be three times as much because of the inflation so um so we

058know we have agent buildings that have not been maintained so we have been in a reactive mode for a long time um but but you know in the next few years we really need to try to get in front of that wagon and and become a little bit more proactive in fixing and maintaining even boilers and waiting for them to you know break and and then we have to purchase new ones well and on top of all of that I think um I just want to ensure and I think we we've tried to set the the board and in support of that manner is we still are very aware and respective of the climate and culture of the schools because when we started talking about taking away art and um extracurriculars and um well on

059paper and in practice moving to a PO system makes sense but when I have conversations with students and it's you know we can't even get roses for a fundraiser that we're doing for student council because we have to plan six months in advance and I just want to make sure we're we're balancing the two um and and we don't take away from our our students and our families before we get to that that Dire Straits points yes yes totally agree and that's what uh we're doing uh that we started that exercise with the restructure of central office right it's not necessarily uh it's it's been very um strategic and smart and when and where we're spending funds and making making sure they're closer to the students so that that will be the the number one

060Focus as we continue um this process in the next couple of years any further questions yes I have one last one um is did I miss it or do do we no longer have a line item for Capital like I thought we had some Capital dollars um left or do we not have any you have Capital dollars it's in the capital reserve fund that'll be down that's the two or three million dollars that uh we are transferring to a different fund to help with capital dollars and we still do have the bond fund but that's to pay off the old Bonds on the high school and all stuff and those type of things so that that's pretty much most of the capital dollars you have to fix up buildings and stuff for this coming next

061year okay thank you I think um Maria's had where where mine her head went where my head went I thought this was like our overall summary of all the funds so that might be helpful to talk about um in our next meeting as well and maybe we'll get to it but we're starting off with the general plan life my head when said the overall and so I'm like sorry the next lights are easier because this is the big picture and I said this is the heavy one so uh but these are good questions because it helps us frame our thinking now going into the small portions yeah is definitely if no further questions let's move to the next slide please so this is the revenue one you guys saw this last week it hasn't changed

062at all I wish it did I wish it went up a bunch more but it didn't uh so let's go to the next slide please this is based on expenditures now that's changed um I didn't have a chance to change it today yet because I was about 10 minutes till the meeting started to even get this done to where it's at so and I had a lot of help today I mean kudos to Nathan and and Mario and for putting their stuff in and and helping out and uh I appreciated them with them trying to do that as I was still going in and taking money out of this account now to this account now to this account so it's been a team day I'll tell you that all week it's been a team day

063so um this kind of just breaks down and these numbers will change with what we've uh made changes to now uh to date so as you can see expenditures what five days ago was 86 million we're down to 84. um before that it was up in the 90s so we are gradually looking and and looking for ways to cut that didn't affect anything that maybe people were double coded I've caught a couple of those where they're coated up above and then they're coated down further down in their budget again and I'm like they don't need to be in two places so it's just little things that we're catching and finding but it'll get better um next slide please this one just kind of breaks out your salary and benefit and your percentages by each those

064will change as well so I'm not going to go into much detail about these right now um once we get closer to where we think we're at then these will be all updated and and redone and and everything will be in Spanish and translated and and we didn't even have a chance to get to that today on the new slides we put in so uh next slide please so you guys saw this these are just some of the factors assumptions that uh you know we know we're thinking we're going to keep losing students hopefully that changes uh the negative factor if they do take it away next year hopefully they hold it constant at zero so they're not taking money away from us to balance their budget downtown um we're always looking for new revenue

065streams uh we're always going to try and decrease our expenditures each year and uh maintain or fund balance so that we're at you know 18 19 million dollars a year and if we go up great if we start dipping down a little bit once these seven million dollar mandates go away I think you'll see over time those starting to increase again next year next slide please uh these are just our funds that we deal with and maybe I should start with this slide first when we start going through uh the main general fund because it is the big fund of the district so I always start with that one because that's the biggest and then we have our nutrition service fund which you'll see next our grant fund which is our all of our grants

066and uh this the Student Activity fund which I don't touch um Bond Redemption fund that just pays you know our property taxes come in from the taxpayers and we pay off those bonds um the cop or certificate of participation fund that's the one that uh we uh it's kind of like taking out a loan but you don't have to go to the voters to do it and I don't like seeing that there but it's something they have to do when they built all sub to generate some additional dollars to finish also above and then we have the capital reserve fund and Mario chime in a little bit on the capital reserve fund as well and show you some of the projects and things that we're going to be doing this next year next slide please

067this is your nutrition service fund as you can see with it um they are pretty balanced up and actually we're showing them to take in a little more money this year than compared to other times um they they started that uh full day or not full day but free um program from the state and so we're hoping to generate even more money than what we're showing here we're thinking maybe around another six hundred thousand dollars that we may generate in just free Mills that I I believe the state and the FEDS are increasing the amount that they're going to reimburse us back kind of like they did when covid was going on they they kept the rates real high and you know we were able to do breakfast lunch maybe even a late dinner or

068something like that so that you can see the funds in the uh in the nutrition service fund um over the past couple years they never budgeted enough as you can see in 2122 they only budgeted 3.7 million dollars within the next year for some reason they budgeted 3.2 and I'm like what was going on with that so we know it's going to go up every year and so we're catching it back up to get to where it should be to cover the food costs you know food costs right now are just skyrocketing everywhere and so some of those type of things are getting impacted now and so you will see throughout this year and probably the next couple years until food prices start going down that uh hopefully maybe some of that will start dropping

069off but we are pretty balanced with the nutrition service fund and uh I'm proud I'm proud of that that department because they are short staff and uh you know we even have people within the main office that when they're short staffed and they can't find Subs they're going out and actually feeding kids and dishing plates and washing dishes and do it they just don't sit in there and do office work all day so that's good to see next slide please this guy just shows you the revenues of the nutrition service fund um ninety percent of it's federal dollars and that's the reimbursement dollars that we get back from our kids eating our meals and I was impressed to see that uh our kids are starting to use the meals a lot more than what they

070had in the past uh I I think it's because of you know the food's better um you know maybe it's a time frame where they can actually sit down and eat for they don't have to shovel it in and head off to class I think maybe some time frames are are helping with that so um I'm happy with this slide and I I really think that uh the federal program dollars is going to be more like four 4 million so we'll look and see and we'll just kept keep monitoring that throughout the year and uh I work quite quite a bit with keija on this and uh she's on top of it so we got a good director and we're lucky to have somebody that understands this nutrition service is the way she does Dr

071Lauria uh yes thank you Doug my president members of the board I I want to give the kudos to the principals as well because we've been working a lot not only last year the year before Posh indifferent reduced lunch um uh meals right that that is going to be changing in the future um but also ensuring that they have that opportunity to go through the lines and and uh even uh even uh some of the middle schools um you know where the kids are passing by the lunch the food is already there uh in the morning so they will just pick them up right and uh rather than having to go and get in line in the cafeteria so the schools have also accommodated and they have been coming with creative ways to ensure that

072it's just that a reach of hand for students to pick up their lunch because sometimes they they'd rather be talking to their front-end playing or being cool or whatever rather than going to eat so kudos to principles because they have been pushing this a lot as well I'll kind of I'm calling myself um I I was gonna um say something along the same lines uh Dr Lydia I can't say how um how much it warms my heart when I visit the schools and uh you know you ask the students what is your favorite part of the day and to hear that some of them think it's such a great thing to be able to go pick up the part that they have the meals on and bring them back to the class because for whatever

073reason so kudos to the principals and the teachers and the students and everyone just stepping up um I also wanted to say I I think it would be interesting to ask the students why um why their habits are changing like do they do they like the food and do they like um you know do they need longer lunch hours because that's what I hear from some of the students when when I go visit um and then also to take a look at the national Trends I know as board members I think you all get the same emails but um even in higher ed there's been a move to Outsource a lot of this stuff just because it's so expensive it's so hard to um be competitive in in the Staffing of of the services provided

074but also the Commodities that we're buying to provide food for our students so um just kudos to balancing this and getting everything done but I think it's a it's a good time to dig in a little further and see what's working and where we can make improvements for future sustainability we will look into that absolutely next slide please here's our expenditures uh Broken Out by salaries and benefits you can see in this slide that uh um only about 53 percent is salaries and benefits um you can see that it should be higher but we're still trying to hire people right and left to come in and uh We've even we did the studies this year and increased salaries to we're you know to get them up where they should be and we still can't find

075them and it's uh it's it's not that we're not looking but because uh the the we're constantly constantly looking for them and bus drivers alone so um you know we'll just keep plugging away and try and make this work you can see that uh food and stuff like that is is more than even our salaries that we pay so as you can see that the cost of uh these materials are are way higher than they have been in the past so that's what we're kind of budgeting for next year and uh you know we'll just we're having to even do some equipment and stuff out of out of the uh Bond or not Bond but capital reserve fund for the food service department because we got a freezer going down uh we got uh a

076steamer that went out at the high school so there's things that we're having to do even for for those programs that can't afford to even do it so you'll see that in the cap Reserve uh presentation that Mario probably provide next slide please uh here's our grant fund as you saw last week it was around uh three four million dollars well you can see we're getting our Consolidated Federal dollar apps in we got Sr dollars that we still got to spend we got uh we don't get much in local grants we do a little bit but uh it's not enough to even budget for um state is uh like the fresh fruit and vegetable program some of those things that uh help give us a little more uh Revenue per se and commodities and things

077like that that uh that helps us with some of the revenue as well um you can see uh most of it is salary and benefits we still Break It Out by each of the programs so you'll see next time that you'll see it broke out by salaries benefits and all that stuff going throughout just for the Food Service program but we still do uh charge things to say admin and uh uh pupil services and things like that because they are doing some of the supports for uh say it's a rise Grant or an easy Grant or some of those grants and they are specific so if it's stuff done in maintenance we probably got a maintenance Grant out there that we're paying some things out of maintenance for uh even Transportation there's you know I

078believe there's uh some radios or things like that or the repeaters and things like that that we're getting through there um so you can see just kind of how the 19 million dollars is spent and uh this is one of these funds that it zeros out we don't have a carryover each year so we do spend the funds and uh we spend them wisely and so each year we never have a beginning fund balance and we never have an ending fund balance so whatever grants are out there we spend them so some of these I know especially with some of the state and federal they spend some fiscal years like um correct do I I know we're working on it but are we um going to get to a point where we as a board

079know which grants are out there when they're ending um not only from a funding perspective but I still um harp and go back like we we've lost some very huge programs that our community relied on we lost the 21st century Grant which um funded a lot of before and after school programming at our schools and again it was because we weren't forecasting it was ending um you know one or two people knew and made that blanket decision we don't need it anymore and it just went away along with all of our staff um but the same happened with our adult program so here we are starting Anew rebuilding things um so I I guess that's a long convoluted way to ask like are we going to get where we can um understand each of the

080programs that are out there and um what's been spent what we have left when we end yep we have a spreadsheet right now that we're developing with uh Joe and uh Davey the accountant they are putting together every grant that we have how many years it goes out how much is allocated per year you know like the Cozy Grant and the easy grants they're recurring and we have to apply for different cohorts per se so like cohort one may be done in a year well then we've applied for two that will help offset and we just keep going down that line but we do have something that we're working on and uh you don't realize how many grants you you have here until I opened that up I'm like wow we we do have a

081lot of Grants and you know we're in Prior years I don't think it was really like you said president Lovato that uh things were really maintained that well um I I want to say that now we are going out and saying we're hounding the schools to spend this money because we don't want to give it back and we ran into that even just here in the last month I mean we grabbed Sheila and Joe and all of us went upstairs and we had paper all over the walls and going okay we still got a hundred thousand dollars in how can we spend these dollars before we have to give them away or they'll go away and we just start okay we can journal entry here and journal entry here and make up for it and

082offset the general fund and so we're on it it's just it's you don't realize how many grants there are but we we do have a deal in Pro progress going and it'll come to you guys shortly awesome and I it can't um continue without giving you Kudos I mean it's not a bad problem to have you guys have almost doubled your grant funding in the past few years so I I just want to commend staff because I know that's that was a huge um push for me personally I know I I just I founded that we needed to have that financial management piece as one of our big goals because um it's out there we just need to learn how to grab it and how to how to use it um so thank you to

083everyone absolutely I think Dr Lauria was first okay no um thank you madam um board members I want to do uh talk about what modern president said about the spreadsheet and and how to keep track of these grounds uh so modern president uh all board members this is something that we can add either to the quarterly um updates from Finance include that piece above and beyond what we are given now or on a monthly basis the goal is for you to be able to go at any time and see how many grants we have and um so I was just gonna exactly what doc said uh but that can be we could find how you want that to be distributed to you you just tell me and then we'll go with that thank you um

084I guess my observation uh and having had to deal with grants uh you know regularly one of the hardest things to hear and it's a good problem and you're right it's a good problem to have but it's very difficult for me to hear that um you're trying to spend the monies at the last minute considering that there are probably needs for it from the very beginning and not having somebody to help manage what the schools have or what certain departments have so that they know to actually allocate it or you know if they got a grant for a certain amount and they divided it by however many months they have to get it done being able to know how much you have to spend and when to spend it I think is part of the

085issue here is people just probably don't know and so um there wouldn't be a need to Hound schools to spend it if they knew ahead of time how much they we had to spend and how much they could spend to make sure that they're keeping up to speed on it I guess I just I go back to what our goal is to keep the dollars at the level of the students and if there were things the students needed and weren't able to get it because they didn't know they had a certain amount to spend um then I think it defeats the purpose of having the grant to begin with and so to me I think it's important that we start looking at how once again being proactive and saying this is how you know it's

086great that we see it but more importantly to me it's better that the people who this grant is meant to serve and that manage these dollars see it on a regular basis and that they know how much they have and I know that takes a little bit of time but um I I'm envisioning that this is something that if it's even the ones that are at the school level not so much the ones that are at District level but if there are some that are being funneled to the schools this this is where I see a lot of um what my vision is for the CX and for DAC to do is to start really working on these are the the dollars this is what we need this is our wish list of what we

087would like oh well here's the grant we applied for and this is what you have and then them knowing and them taking ownership and saying this is how we're going to spend it in this increment of time because I think that um with grants not so much others but grants are more flexible that way that they are really meant for specific things um specific areas and they're you're right you shouldn't really have anything that carries over unless it's a multi-year grant that you received and at that point those dollars are designated for certain specific areas and things that we should never really run into that point at the end of the year where we're like oh my gosh we have a thousand dollars we need a hundred thousand we need to spend our we're going

088to have to send it back because those hundred thousand should have been spent before that time had people known they had it they probably would have spent it and so that's where I'm looking more as to how do we get something in place that you know a Tickler file of some kind that starts you know giving the little flag that says this is when you have to spend and this is how much you have to spend before it runs out anyways that's my you bet thanks for that I mean we are working on that um I know Joe when he first got here and he only got here what six months ago and that was one of the things he took on right away you know he said hey we're not spending our dollars in

089our schools so he was reaching out to principals and stuff saying hey you have this amount of money uh you need to here's what you can spend it on um you can't spend it on food unfortunately things like that but for supplies and things like that and and he does trying to remind them and remind them uh some of them use use their funding to bring in another staff member you know they may say I need a kindergarten teacher okay well if title or whatever the grant is can fund a teacher we actually allow them to allocate their funds based on that and it each of the schools are ranked in order of of how much money each of them get you know it depends on the free reduced allocation I believe and Sheila can

090chime in as well but I believe it's you know if one school has 70 free reduce and one's got 60 the one at 70 is going to get more money than the one at 40 or 50. so we we are working on that and I think it's getting better um but that's that's good to hear that some are not getting that that information and but we'll we'll work on that and hound them a little bit next school year Madam president members of the board I think it's that that monitoring piece in the structures and how we track things that we have we are finding uh you know we we have a lot of work to do there uh because it's not something that we inherited necessarily the structures and the systems who are putting those

091things in place one of the things with the title funds the title One funds that we uh and this is what we heard from the community and from the board so this is how we take your feedback and implement it uh it was to ensure that we are offering opportunities for students to go through field trips to go to you know to have these extracurricular activities that are supporting the standards supporting what they are learning in there but in a very different way in a more engaging way in Hands-On way so uh we have been working um with the schools that they plan how to spend their money because they they there's the title one that we need to turn into the uh Title One plan that we turn into CDE for each one of

092the schools uh we're ensuring that um we support principals as they plan those field trips so no longer it's going to be you know this school really likes field trips or these teachers so those kids have more field trips than the school down the road uh that people may not you know even think about doing it so um we have a minimum number of field trips so that every great level especially in the lower grades can participate in field trips and other opportunities but this is it goes back to you know expectations on how to use the money how to put it closer to where the students are and and monitoring those um those uh expenditures so uh we'll continue doing that and continue bringing to the board um you know some of the Frameworks

093that we're using to support and monitor this any further questions next slide please this just has a little pie chart showing the revenues and expense uh Federal versus State uh of course we get most of our revenues from the feds and uh we'll just keep building on that number and make it bigger and bigger each year uh I know uh security wrote two grants I believe for a total of four million dollars here just recent we're just waiting to hear on those and uh it's it's we're looking constantly so next next slide please this just kind of gives you a breakdown as to what departments are getting the uh the the grant funds you can see instruction gets most of it and uh pupils and uh the instructional staff so most of it is maintained

094at the instructional level that's what they're written for and uh just a very short amount is for other services or transportation and that kind of stuff but we are going out and trying to get as many as we can let's go next slide please pupil activity fund this one day I really don't even look at much I mean I I make sure they have a beginning fund balance at the end of the year that they didn't spend all their money and they don't then they are gradually starting to do more fundraising since covid so you may see an increase in revenue and expense over the next few years but this is pretty much where we think they're going to be for next school year and we'll keep revising as we we go on and but

095yeah I the only thing I I monitor on that is at the end of the year are they did they spend all their money or did they not do as much fundraising because our Auditors do ask why to change year to year to year you only spent took in 53 000 one year but you raised 340 what's what's the difference and you know it's like well the only thing I can tell you they didn't do as many fundraiser you know things like that so it is we do watch it but that's that's more at the school level and uh we do we do track the revenue and expense but that's that's the school level money and I don't want much to say about how they can or can't use it because it's theirs they raised

096it they should be able to use it the way they want next slide please it's all locally fund raised so that's just one slide that's not even worth putting in there but I still like to put it in there uh next slide please expenditures uh this is the no that's not property I gotta fix that slide because uh the wording on it and I noticed that even after we uh did the 5B and the academy slides they didn't show up again so you'll you'll get those next week um that that's what I was looking at prior about 3 30 we had put all those in and then all sudden I looked at it I'm like Nathan that's wrong so we did another one and it's still wrong but we'll we'll get it fixed for you

097um next next slide yeah that one says Property Services so the bond Redemption fund this is the property taxes that come in each year that we uh I'll receive and uh it goes right back out the next year or this school year in in uh in the principle and the interest for the bonds and then you know there's always a fund balance a beginning fund balance and an end fund balance the beginning fund balance is spent right away in uh December and then we re raise all the money and uh March April May June when property taxes hit so then the fund balance goes right back up so it's just a revolving door it's always going to have a fun a beginning and an ending fund balance now if there's ever a time where say

098we get uh more in property taxes than what we thought we would we could actually maybe possibly buy down a year of of property taxes and help the taxpayer and then not assess so much the next year if it ever got that big I don't the way we got it right now I don't see that happening but I've been at districts where the interest or something raises and raises so much more money that they're able to buy maybe buy half a year of the interest payment more than what they could have and try and pay the bonds off earlier so that's just something I always look at any questions on this one yes Mrs Zubia yes sorry um so going back to the previous slide before you change from that um the one that you

099said was um it's the student one right the fundraising um so the numbers aren't adding up so it's not just the label but it's actually you have 350 and this one only adds up to 330. yeah and then I just wanted to point that out because it's not just the label but it's also the math on this right we made changes changes as well to this one yeah it's not for the activity fund Property Services it's more of a supplies and field trips and other expense it should have been probably other expenditures in yellow rather than Property Services because they don't buy any property yeah no no I was just making sure that you knew when you were updating it that also the numbers were incorrect um and then remind me this one that you

100were talking about because there's no title on here as to which one it is so um I know the the previous one we looked at was the student the pupil activity fund so this one is the this is the bond one is that what we're looking at so the next one maybe Bond Redemption is that the one that we were at the next one okay go down yeah okay I had to make sure I was on the right one sorry because I'm seeing the one that you have but I was because I can't really see on the tiny screens I have to look at my bigger one so I'm making sure I put the right one so thank you so we're on bond right now okay so so go one more slide okay and and

101then I do have a question on that one because at one point and I guess I just have to ask so at one point I know that um the bond piece um at least from the is it the investors that were having an issue because of our accreditation um all of that I'm assuming got fixed but where that is there anything that um that was impacted such as percentages or increase or fees because of of us losing that accreditation the two times that the State Board pulled it and I think this is one of those things that was impacted that people probably didn't really realize was impacted correct uh we were impacted they did drop our rating twice now it doesn't affect our bonds that we have now but in the near future if we

102go out for a bond our rating will be less than what it was the last time they went for a bond rating so those are some impacts that happened because of the order again and uh so yeah it won't affect us right now with the bonding and interest and all that stuff here but if we ever go out to purchase bonds again that's when we'll probably see an impact of interest rates and things higher than what we would normally pay well that's awesome thank you you're welcome so let's just kind of this slide just shows you the mainly it's property taxes that pay for it we do get a little bit of Interest money and with the rates higher than uh they've normally been we are taking in more money so hopefully hopefully the rates

103stay high and uh will generate a little more income for the bond fund in the next year next slide please okay this is just showing that the principal amount you know we pay five million dollars each year and uh anywhere from seven to a million dollars in interest and uh you can see we're actually paying more in principle which is good we're not paying as much in interest like they used to so that tells us that uh we're getting closer and closer to getting these things paid off because the principal amounts are getting higher and the interest rates are going lower next fun next one please this is our cop fund this is the the amount that we have to transfer from general fund to just pay this each each year and uh it's the

104488 we'll keep going 488 until it's paid off and so I wish we didn't have this but the 488 will start going down because more of the uh principal and interest are going the same direction next slide please yes Mr Moss may ask when we are talking about the cops can we get um the running total like when we can anticipate that that will be paid or whatever it goes down okay thank you you want the cop schedule then or just you know we're anticipating it'll be done this year and some something I think yeah I'll I'll get you something where it's uh shows you how much is in there and then the payment the schedule payment of principal interest and how many years there's like I want to say there's four to five million

105dollars left in there to pay off so it's going to be a quite a while to get this done next slide please and this is a typical same slide it's just shown our principal payment and then our interest payment and then the agent fee that we have to pay the people that may monitor it and and pay the fee so that that's pretty much simple and easy going and so we can go to the the next slide which is capital reserve and this this is the a biggie for me because I I like to track this one um you know you could see over over the last four or five years 2021-22 we did quite a bit of work but now we're gonna have to start going down down down a little bit because you

106know the fun balance and things we got to watch out and uh we're gonna use uh on this slide fund balance is 1.7 million at the top there on the right we're gonna try and buy that down and and try and keep this fund to where it's more like balanced out so we'll use our fund balance each year and then allocate what we need to for fund balance next year and just keep going and uh no use keeping money in something if we're not going to use it is is how I kind of look at it I mean if if we didn't we had projects that we just didn't get to this year that's why we carried over and so like our PA system one done a couple things didn't get done and so we're

107carrying some of that over and that money will offset those costs for next school year so and then I know Mario I think you may have a slide for uh the projects so if you'd like to share that that'd be awesome uh comments uh we can make the comments uh good afternoon uh members of the award uh drurya for 2324 we have listed uh 47 projects which are going to be uh in the ballpark of about 4 million and uh in those projects we have a range of uh projects that are going to cost in the four figures to even uh Source seven figures the biggest ticket items are gonna be uh uh on equipment equipment uh in the form of uh Chromebooks for uh students use and uh also in the form of equipment

108uh the biggest ticket item being the replacement of Oilers that uh Rose seal and the new Leicester unknown location now as you uh as you remember we have been uh prioritizing our projects based on the application of our Matrix that calculates or estimates the likelihood of failure of a piece of equipment or system versus the consequence of that failure and we continue to do that uh now the the introduction of a project 5B has had some effect the displacement of the oral priority of those projects because prior to the 14th of February 5B was not on the radar and so uh bring bringing in 5B which uh right now just for the first phase the four four projects that we have to do for 5B uh handsome Monaco merger the relocation of lesser unknown the

109uh uh incorporation of the academies into the new Leicester Arnold Building and the universal Pre-K which we have integrated uh with uh the 5B project are right now running at an estimated cost just those four over 1.1 million and that has had an effect of us having to uh uh change the timing in which some of these things that we have planned for 23 24 are now going to have to be on at a later date uh that is the effect of 5D which at 5B is progressing very very well but we have to take into account that uh he represents a cash outlay that prevents the execution of some of those solid projects Mr Marquez um the the 5B decision impact that you um just estimated at 1.1 and those are just the capital

110related expenses so we're not even um I guess my wondering and maybe it's something again but I'm thinking like Transportation costs where we're providing Transportation where it wasn't provided before um Staffing like are you guys seeing impacts in other areas too that we need to consider um before making future decisions like this the the 1.1 does not include new stuffing this is just a materials Services construction yes and the Staffing part that we're going to see Rene will be in the general fund that we talked about already about hiring the new teachers so we'll see a spike over the next year or two as we roll them out but then like they said over time it's gonna even itself out because the academies will take over so we're not going to have to hire as

111much but that's the initial expense that we were that he talked about on the first slide with the general fund where we're seeing those hires and the services because we're going to have to hire those teachers and the stuff that we're moving so that's part of the general fund that wouldn't be kind of these expenses that we're going to see on the capital Reserves on this one um and that's what I think they were talking about with the general funds we're going to see those new teachers that new services that are coming in through there that'll be part of that fund as well and it's not just our project one that we're looking at here yes which I get I think where I'm getting at is just the um the importance to me anyway capturing

112these things in a project-based mode which I think we're moving to but um I I just um I think we we need to recognize the capital Investments and the and the things that we're doing separately but we need to have a whole picture when we're making decisions like this thank you yeah uh modern president members of the board uh if if I may share my screen I don't know if actually I have um so because I do have the cost of the accountants at the high school as far as [Music] um yes as far as the um Staffing right to what Mr Amador was um alluding to so uh these are um the normal Staffing like that you can see below for 375 students approximately for one grade would be um for the core teachers

113Math Science Social Studies you see the numbers in there but for us it's actually requiring us to have rather than three Maths for math one for each one of the academies rather than three scientists one additional uh social studies so it's adding to all so that balancing so what we are thinking Madam president uh and members of the board but to your question uh Madam president having uh slides that are completely separate to say this is what the academic Innovation are costing this is where the money is coming from because not everything a lot of the grounds that we're getting is to pay for the materials that we are putting in here right so we're aggressively looking for other funds but um but also looking at having that separate so the the the board the

114community everyone can see you know they what we're doing above and beyond uh with our funds uh like I said at the beginning we're catching up you know what did not happen or happening in 12 years or 50 years you know in the next couple of years which is a phenomenal um task for this board to undertake but but it's it's getting done right so but to see that that's separate in there so uh something like this is what we were thinking when we start seeing how do we display in a way that it's visual easy to understand uh but explains in a nutshell where this is coming from um or or where where the how that we're using the funds and adding in here where those funds are coming from right because that is

115the piece that is missing here yes and that's exactly where I was getting at is more for not not so much for us to understand I think we we get it as a board because you and your team do a great job of keeping us updated but to be financially transparent to our community because when we it's inevitable we're gonna have to go out for and and ask but we need to be able to intelligently say look at this you know we invested millions in in these great things and so yes thank you correct and and there are a lot of things besides the the what we're doing above and beyond that we are not getting fully funded from the from the state right and that's the reality of our educational system um because I've

116been in other states I can say that's not um you know distant from the reality in other states um in Colorado and I don't know if you have the next slide um I think it's Ramon or Cameron I don't know who's managing the slides uh where it's a breakdown of by program so what you can see here is the programs we have occasionally is pretty much CTE special ad education support for linguistically gifted now the Pre-K supports for a gifted and talented students in transportation um the second column in there the revenue this is what we get from the state to support each one of these uh programs but the next column the expenditures which is the ex pnd is the actual cost to run these programs so we get 75 000 to go to

117the CTE first line from the state to support this but in reality it is costing items 14 1.2 million dollars so we need to subsidize those uh those things right so when we uh present to you uh even the savings of the closure of or the merger of the two schools uh running uh one small Elementary can take between 1.6 million to 2 million dollars to cover for all the expenses but because it's it's such a small School classrooms are small we are subsidizing you know eight hundred thousand dollars to to maintain that small school the merging of the schools is not going to give us two million dollars in savings because teachers are moving students are moving so expenses are moving as well but there are some things that we will save overlapping for

118example Administration um the special teachers all these additional programs resulting in about seven eight hundred thousand dollar savings in just that's those merging of schools but that is being used actually to now support in the previous slide number 13 if you go back in the previous slides you know those additional core teachers that we will use to provide better services and better supports for our academies right so it's a balancing correct um but what we're looking at is to prepare maybe like a brochure you know or a little you know with weight visuals like this where money's going for this special Innovation [Music] um projects that were putting in place to support our our students and where the funds are are getting um the the slides were um can you run back to the other

119slide again uh 13. uh Pre-K uh we're estimated about three million however offering the way that it was originally offered to us and in turn we offer into our community the way that it was for all three and four years old would cost us you know 4.3 that's a deficit so it's not necessarily fully funded at the end if we are not getting the full funding on the number of students that we that we get it right so Balancing Act will continue working with with uh the state where we need where we can get additional funds and other grants to subsidize but this is um a little bit of of a visual how much we get and how much we actually um the cost for us to actually offer these programs um this is particularly

120um harder for smaller districts because we want to offer the same things but because we do not have as many students in the schools or as many schools in all we cannot take from one to subsidize this other one everybody needs some kind of of um support above and beyond the the normal Revenue so that is what is costing us um that's the challenge for us um however it's just a matter of looking up where the funds are and how to push them forward be a little bit smarter on how how we budget but I I believe this is what you're looking at or something similar um so we'll continue uh preparing these kind of slides for um you to receive later this week for to review and for us to continue discussing next week

121um before you um you have to take action on the budget so this is Maria really quickly so I think that um just like you have this broken down I think it's it's important to have that reference for like eating the murder like um uh really the cost of merging the schools the cost that all of that it's not just um the capital stuff but it's everything kind of like you broke it down here uh just so that it serves as reference for uh moving forward not only as transparency but I'm looking at it as a reference for us so that we have um something to compare it to moving forward you know that and you know once you do the middle schools okay because that's would be the next step that we already have

122something and and some type of template set up that um we're able to compare and look at and the other thing it does too kind of like you have on the slide 13 that you're showing it allows for you to see where that deficit is but it allows you to work with those that are looking for Grant to say this is what we need this is where we're we're short let's look for Grants to really make sure that they're intentional and they're matching up with what we need and so therefore it makes it easier for that spending because now you know you need a vocational 1.1 million okay you're going to go out and try and find as many grants and it's going to be spent that way to really you know bring it to

123where it needs to be so to me that's kind of what I don't know I kept hearing when Renee was talking I'm like yes something that's visual that will serve um for a later purpose for us to be able to compare for future projects yeah yeah totally uh we hear from the community we know you're communicating but we do not understand exactly what you're saying because it can't get so technical so looking at this type of uh you know infographs or you know pictograph whatever you know visual we can have out there I think will make it easier um also to to mention um special ad you see a huge um deficit here or difference uh in what we are receiving from the state and the actual expenditure so um we will continue throughout the

124next year maybe even two because of the magnitude of death that we have to go in um to looking at uh the needs now that we have the special audit and we know exactly or have a much better idea of the specific needs how we're providing supports to students we're looking at you know where um are we how do we shift funds to better serve our students um we as the state because I dog and I had a long conversation about this the state does not fully fund special to any District uh some District saving you know 30 40 50 uh for sure districts are uh you know subsidizing those additional expenses that we need to have to ensure there are special uh students with special needs uh receive appropriate Services again for smaller districts

125it's much difficult because we do not have other extra funds to have you know from but uh we'll be looking at line by line in the next few months to really ensure that you know we move funds where they need to be in the students um do not get that you know the the main hit on any cuts that are that may be coming should we continue losing our students at the rate we are I I just had one observation so I see vocational special ed elpa pre-kinder um I don't see homeless I know we have a high percentage of homeless students as well or that are considered homeless through um you know the the definition from the mckinney-vento is that something we ever track as a separate program because a lot of these overlap

126like you could have GT kids that are in pre-kinder or special ed kids that are also GT kids I mean there's that overlap but is there um a category somewhere that because I know these are the way I look at it is the most vulnerable kids um usually are the ones that we need to really put more funding towards and to make it Equitable for them and make sure that we are getting people what they need and our students getting truly what they need at a different level because they have more vulnerabilities than other students so that includes our homeless population and I don't think that I've seen really anything that breaks that down uh we do is not coming as a general funding necessarily for categorical but it's a grant that we have so

127that is tracked via grants but uh we we do track it this way um this is specifically at the um General funds in the different categories with we have Within but the unhealth students are um are underground so we we do track it that way yes and also through the state the state does fund us for additional funds for homeless but it's just a part of the general fund it's just uh additional dollars they give us it and we do have within the general fund we do have you know some of our home Liaisons uh are some of our outreaches uh staff um we we do have and I can break that out we can break it down within the general fund along with the academies I can break out each one of those academies

128for us and show what's budgeted for each of the academies coming for next school year because if I'm not mistaken we receive less for uh on health students uh in families than we do for gifted and talented um but that is if I'm if I'm recalling correctly um but we we can um separate that um it's very minimum the main source of it is through the grant then I I misspoke them by saying it was not it was by Grant only we can we'll break that down yeah thank you I have one last question Mr Marquez um with the budget projections Furniture are they not including any of the um like say we didn't do 5B do they include any of the capital um expenditures that we had anticipated or are those things you're going

129to bring to us as we um identify like look we can't wait any longer for boilers for example or things like that boilers are in the priority 423-24 and uh some of the projects that we had already originally scheduled for 23-24 have a a quote-unquote survived 5B they get to remain in 23-24 but uh some models we have had to move out uh namely uh roofs yeah you may have noticed in the district that whenever we get a heavy precipitation then you see the leaks coming through you see the water but it is not a it is not a deadly situation it is a situation that requires a quick repair and so uh we have pushed the the six and seven figure dollar uh roof replacement over a couple of years to open space for

130other things that yeah may know that be uh not that uh uh catastrophic in terms of dollar amount but could still be done in 23-24 so we still have some of the original uh project roster awesome thank you one last question is that okay so um thinking about special ed one of the things I was looking at since you have um I don't know uh the revenue if that's just from state but I'm wondering where um the amounts are captured for the Medicaid billing that is done through the district to get Medicaid funds for children that have Medicaid and are receiving special ed services because I know in the past those that was I don't know a million or more than a million that was coming in through the to the school district just from

131that billing process um because that's my world so I remember a lot of that but I don't see that um I see there's a huge difference but I don't see is that incl is that included in Revenue that comes from the state are you including it together because those are separate funds that come in depending on the services that are being provided to the students and not all special ed students have Medicaid but those that do there's an additional amount of dollars that are being generated yeah we'll get the reimbursement I'm not sure Doug um yeah so the Medicaid funds are in the grant fund because it's a federal program and so all the expense or Medicare and Medicaid and stuff is within the grant fund stole we do Bill on a quarterly basis and

132we do receive funds quarterly to offset some of that cost it's it's around eight nine hundred thousand now that we receive because they are cutting it back a little bit but we are getting revenue for and expenditures for Medicaid services through special ed and those services so that almost 1 million is outside of this 2.3 million dollars that's what I'm getting at yes yeah okay all right thank you yeah so it still puts us you know short a little bit well I mean what seven that's still about seven million short even if we add that in there I mean yeah right yeah thank you so so this is a little bit of the work that we um have engaged in a little bit of a rude awakening as I shared a several times uh when

133you start you know looking at systems and um and realizing although work the rude awakening in the sense that um we have very little time to you know organize things but we uh we're working on on that looking at um Revenue expenditures and where especially where those expenditures are going to to see where we shift to continue providing you know even more services and programs for our students I think the last three years with covet and this is true when I was in my previous District uh and and we're looking at all these millions coming through um the first thing that we think is what we're gonna do when we do not get this this money anymore and and I think um that that's part of what we are seeing on on top of that

134of course the added expenses that were unfunded as or the you know as a result of all these orders from the state um is hitting us A Little Bit Stronger Than Just covet but that's the work that that we are doing as we um look at the budget in a with a very different um lens any uh further questions uh I was gonna say so when uh you're asking about Renee you're asking about the 488 that comes out every year that we pay for if you look at that slide the interests uh it plays down 266 of the principal if it's 5 million left in there it's going to be another 20 years before we paid off just so you know all right thank you yeah I just think it's helpful to again communicate because

135it tells the whole story it's like yes we've got this amazing wonderful school that we needed but this is what it costs and and you know we're doing these great programs but this is what it's going to cost and to see like something like this like I've I've dug into our financials and I never knew something like special ed was underfunded you know I I just think the more different ways that we can explain the same information the better because it's just we have to get to a point where um that's not necessarily common knowledge but I think we need to pull our community in um because we all see the writing of them all well and I think it speaks very loud to where um we as Educators boards districts community uh we need

136to really put pressure so that our schools are funded appropriately um because it's really putting the the resources in front of the wagon if we have you know overall in the state more funds and and we provide better support for our students our future is going to be brighter because we're going to be better prepared for the demands of the future so um I think we need to have you know um as a community of Educators you know some um you know strong uh pushes out you know for the legislature to really fund our schools better uh all across the nation we hear schools are not funded appropriately this is not different but Colorado is one of the worst in the nation so I think um I I think we can see it and if

137we present it this way we can see how bad it it really is thank you for sharing that because I think once again we need to look at what the most vulnerable populations are where they're at what their needs are and the fact that you're showing that some of these are so underfunded it's ridiculous to the point of um it's unsustainable yet their the needs aren't going to go away anytime soon we need to continue meeting that needs and also when you look at this when Renee was saying whichever way we could view it I think and have more of the the visuals for people to see and understand or easier to have things that are easier to understand we need to not forget that we need to start looking at things more from that

138Equity lens and if that's what the state preaches and everybody preaches about using the equity lens this is not Equitable whatsoever and no matter how much we try and we do um it's more of a challenge in our community than other communities I know everybody struggles but I think more so in ours which is why I was asking about the unhouse the homeless students because you have double triple whammies with some of them because they do have some of the other needs and that are very hard to address so putting these numbers to that like you did here speaks volumes to the inequities that we have in the in the formula or the system that the state uses to actually allocate the funding for these populations that everybody Prides themselves on saying that you know

139we provide services for yeah but at what cost and and are we providing to the full extent of what we should be able to provide if we were fully funded so that's correct that is correct anything further because that's pretty much that was the slideshow for the today and uh we'll keep working on and making changes and updating it this week and then for um listen to the feedback creating more of this explaining the different buckets for you to be able to study ahead of time [Music] um to next week's study session and then we'll go from there yeah and I I personally Just Want to Thank You Mr Moss I know this is a lot of work and um I know we have that impending deadline of when we need to approve it so

140I I can't speak for the rest of my board but I I would say definitely the focus is getting together and getting things to where we can approve it and then I think we can improve and dig into all these various buckets um down the line I just I don't want um you'd have to be working 24 7. 10 days so we're building the wagon and once we have it then we'll just get on and you know be uh making it better as we go this will be information listening to the feedback we're receiving also each one of these breakdowns can be information that um Mr Moss can take to to back and explain you know the different um fonts the different categories that we have how it has been spent the impact that the

141state you know orders have the impact that 5B has the impact that you know um for our community to and and like to start understanding the the big picture of um of the budget and um be better equipped to even making um the recommendations um to the board base based on that uh School Finance is a is a it's an animal and it's difficult because there's so many funds and so many move from the front pocket to the back pocket and and in the meantime you pay with this and then you uh get the funds but uh hopefully uh we're gonna be able to find that Rhythm that can be um it can be easier to understand I see your hand up yeah I I didn't know you joined welcome yes yes I joined a

142few minutes after you guys started actually um but yes I just wanted to Echo what um president Lovato was mentioning right now about how much work in collaboration and time has been spent on this I think that um for the first time really um I'm getting to understand a lot deeper um the financial status of the district and I think that um Dr Laria earlier you alluded to having um visuals and how these paternal representations really do help I think they do and especially for um um people who aren't well versed in finance and so I think that the more that we can start presenting um our financial status this way I think it's going to be helpful and again just thank you Mr Moss for all of the work that was um that you

143did and all the collaboration from the stakeholders that helped you I think that um I even though um there were some areas that we needed Turf hand to focus on and try to see how we can decrease the expenditures for upcoming school years to ensure that we don't go into a deficit I think that we're on the right track with getting a lot of the much needed changes that needed to happen um for better outcomes for our kids yeah yeah the team has done a phenomenal job I kept them long hours even in the in important games uh and we were so into it and nobody even said there's a game tonight no no when we left it was five minutes left of the game um so it's a phenomenal team and I appreciate I

144appreciate them and and there for like like doc said it has been you know a team day the last couple months especially on this project in the restructuring of central office not a president I don't know if there's any other question about this if there's anything that you would like to see further uh and you don't even have to share it or any of you any board member has to say I want to see this differently as you think about what you heard the presentation is is posted but as you uh think further what what you um what you heard in their questions coming make sure you send them my way we're going to make sure to include that in our next study session for further clarification and um you know as always I'm here

145to answer any questions um you know you can pick up the phone and and ask any questions that you um that might need clarification will bring them to uh to the study session or the next board meeting wonderful thank you all so much um I think um this is the most extensive we put into the budget so I truly appreciate all the work and and time of everyone um we will meet again next Tuesday um as part of our regular study session and then most of just something for the next Thursday um all right oh yes I am I've posted the correct one now under um public comment on the I mean under public content yes and the only difference that it has it has those two slides that I shared that were not in

146the other one so everything else is the same it's just those two slides yep perfect wonderful thank you um is that from before oh I'm so sorry that was really important oh okay I just want to make sure that I answered any questions yeah board members anything else or staff anything else all right well thank you so much for spending time with us this evening and um we'll continue the conversation next week but for tonight we're adjourned thank you very much thank you thank you bye