001Uh, Mr. Hopkins here present. Miss Alden is abr Okay, so we have a roll call. We don't need the active first. We have a motion to I'll make the motion to adopt the agenda. I'll second. We have a vote. All those in favor say I. I. Any opposed? Motion carries three to zero. Please stand to the flag of the United States of America and to the republic for it stands. One nation indivisible. Yes. Um Mr. President, members of the board, um before May 15th, all districts that revised the fiscal year 2025 adopted budget, including revisions of the GBL, UCB, classroom site fund budget in pages 7 under eight, maintenance and operations fund budget page one under strictly capital fund budget page 4 or classroom sip fun budget page three as allowed by statute must have
002filing revisions completed and approved at a governing board meeting before May 15th. This is a budget hearing for the 2024 budget revision number. Is it 2025? 2025 budget revision number two. There is no board action necessary at this time. Mr. President, this is what I will turn over now to our to our two professionals, our finance consultant, Mr. Tyler Moore, and he has some information to share with us. Mr. Reed budget, I think some of the language got copied. We don't do these very often. So, uh, President Hopkins, members of the board, um, tonight I have just the the highlights of the budget revision and then the greater agenda is the actual budget forms. Um, so on the agenda, we'll go over the 25. So, this is the current year budget highlights. We'll look at
003both the ML and capital changes and then look at the budget timeline for fiscal 26. So highlights for this budget revision. This is the first time we are revising this year's budget since July 10th, 2024. So since the district last adopted the budget, um we did not need to do a revision in December, um because there wasn't a statuto requirement and the district was in alignment with ADU's calculations and so we we chose not to and wait till May to do the final nutition. So um tonight we'll be reconciling again from all the way from July to this current year and so you'll see some changes with carry forward and ADM um as those are the two main multipliers for we are capturing or sorry we're capturing the um approved in the legislature um and
004the legislative process process for 25 was um two one-time supplemental fundings um one for capital or DAA is the legal language and then one for free and reduce uh population. So there's supplemental funding for both of those um that was not included in the when we adopted in July. So we're capturing that additional budget capacity in this revision. And then we had some growth in students um from when we adopted in July. We were projecting enrollment for this year. uh as we're reconciling and chewing numbers up um we realized some growth from that estimated number back in July to the actual number in May today those are good things positive so looking at the implications so if you go to the next slide so this is the operations budget um this is a similar slide
005in which I've presented before but we have from left to right basically the budget categories. Um I included the adopted budget. So this is again the middle column is what we did in July and then what we're advising to this evening. So the base level amount that's the amount we get per pupil so per student. Um that doesn't typically change in the fiscal year. That's stagnant amount that only changes after every fiscal year but not within a fiscal year. So, same $5,13 per student. Um, I modified this a little bit to do weighted add-on, a weighted ADM. So, this ADM, you don't have actually 660 students. Um, yeah. Um, I 660. That's your total weighted. So, it takes all your students that are in person, but it also adds on um the group E weight.
006So those include like if a student is eligible for special education funding, additional funding, um ELLL, uh free and reduced. And so um how the state calculates that they add weighted add-ons to support those students who have higher needs. And so that gets you to that that 670 number. And so from the adopted to the revised, you increase the 9.8. The reason you get decimals is because it's on the 100 day average. you get funded for the first 100 days and so if you have students who don't attend not attending every single day then you start getting fractions of that student. So that's that's a reality of how it works and that's always how the formulas work. So um so we again positive we seen an increase from what we adopted. Um, so that's going
007to net an increase in the revenue control limit because that's basically taking the base level amount times the weighted ADM and you'll see that 9.8 increase reflects basically a $24,000 increase in the revenue control. From there we add on the transportation funding. We get 118,000. Again, you don't typically see that change from end of fiscal year. you occasionally see that change from one fiscal year to another, but not within the same fiscal year. And then um reconciling to the uh actual carry forward. So in July, we were estimating where we were going to end the year. Um the the district pays invoices all the way through August 31st. Um and so at when we estimate, we estimate very conservatively assuming everything's going to be paid out. But as we typically reconcile through the year, there's
008some invoices or purchase orders that are put in place, but we don't spend all that money. And so we capture that back. And so after reconciling all that, there was a net uh gain of 297,000. That's not just purchase orders, it's also positions. So there may be positions that have been budgeted for but not filled. Um and so you take all that together and we have a net increase of 297,000. So again, another positive. The add-ons is what I referred to in the previous slide. These are the um DAA supplemental funding and the free and reduced supplemental funding. Um in addition, you can uh Prop 123. That funding was in the adopted budget um and is also in the revised. But the difference is those two um capital appropriations and the pre appropriations which is
009that's increase of 24,000 there. Those are onetime funding. So those will come off next year. That's just how the the legislature appropriated that money. So but we did capture that this year's budget. And so you take all that together, you get a $346,000 increase in budget capacity. This isn't spending, this is budget capacity, right? Um and later in October we'll present the AFR that's our annual financial report that shows expenditures and we'll we'll we'll compare expenditures to budget and you'll see the net difference. So but tonight we're just talking about budget capacity. So um if you go to the next slide we'll look at the capital budget a lot simpler formula similar formula um small difference in the adjusted PA or adjusted capital formula $17 and then again the budget balance carried forward chewing that
010up we had about an increase of 54,000 in that position there the add-ons that's interest earnings so I under I overestimated when we adopted the amount of interest earnings that I anticipated earning and so we saw $3,000 less than what we anticipated. So, but you take the net difference there and we see an increase in capital again budget capacity not spending but 51,000. So, it brings the capital budget up to176,929 all positives reflects the conservative approach that this district has continued to practice and um again the district's still in very good that position. So the last slide I have just kind of looking forward. So looking tonight obviously we're presenting the revised budget number one that will kind of conclude the budget conversations for this fiscal year. Uh but then on June 9th through 11th
011I need to my schedule forgot which day I can come down. We'll look at the proposed budget for 26. And at that time we'll present some options for the board for compensation uh proposals for 26. And then in July 7th or 9th, we'll officially adopt that budget for the upcoming school year. With that, that's any questions. I don't have any surprises coming up like last year when we paid back the grants. No, I mean, kudos to Miss Cotay. She's been absolutely crushing it with the grants. Um, let's see. A number of uh reimbursement requests come in. Um, we have until June 15th to do some of our completion reports. So, I know that's on your radar and we're in much much better position this year. So, I do not foresee any unforeseen. That's that's the
012saying that yeah in regards to grants there's there's no upcoming or or for foreseen expenses that we do is in non-compliance here. Yeah. I noticed on our regular agenda that we have several undisturbances over I'm all for it. Right. that we have several teachers that we're doing onetime payouts to that's all been taken in consideration on the budget and yeah yeah and so if you the presentation you see the budget balance carried forward a lot of those payouts are onetime payouts like like you mentioned so those payouts would not be coming from the annual obligation of the budget but because a carried towards such a large contingency uh you have the capacity to absorb those and without any shock to this to the budget or it's not a something that's going to upend what what
013auto has been doing or what has been practicing. Again, it's because of that conservative nature and carrying forward that large contingency you're able to absorb and and move forward with some of these time expenses and continue your operations as as normal. So, before seeing anything plus or minus happening on the state level that's going to affect us financially? Yeah, from the state level um we're anticipating a decrease in some of the federal funds. Um yeah, it goes without saying. Um but from the much of the state is local controlled, right? So it's local controlled by the formula. So um the biggest kicker is your student enrollment. So your student enrollment I'm not foreseeing any large declines. look at Mercy like I think your your kinder well it's pretty pretty um steady and so um your
014all schools is locally funded and so as long as your student count is the same um the formula is the state still has obligated to fund the district by the $5,13 per student and so um I know Dr. Sera we've kept staffing relatively all the same and so you are as the district very staple in that sense and so yeah I don't foresee any unforeseen so I know mommy's trying to get me something I don't know where you got that attitude about I think I think you do a great job I'm not very happy with you what happened right no I uh yeah if there was something that was up it's just the federal funding I think we're participating in the increase. So, but like like most of your funding is local controlled. maintain your
015current operations as they are. That there's talk of doing away with the free lunch on the federal level of that too. I know that directly doesn't impact anybody because that's from somewhere else. But do we have if they cancel it and we give that to all of our students if they cancel it does the district have the ability not with that amount of money you would have to research or potentially price for food. Yeah. Maybe there's some type of price that you can meet in the middle, but not with the amount of money that that program supports this issue to them. Several hundred,000. Yeah, that position doesn't budget. Well, it directly affect your food service, but not this M budget, but that food service fund. Yeah, it would directly affect that account. So you do
016have employees who pay out of that fund and so yeah that would be the conversation that we would have to approach with sharing some of that burden or changing that model Mr. President members of the board um I do want to keep in perspective like what Mr. more stated. Uh there are some neighboring districts in Puma County, one specifically that that is going through possibly a 5 to8 million deficit. So we are in real good shape. You know, a lot of other districts would really love to have our situation. Um so this is a real positive real. Okay. Anybody else have any question? No. Thank you very much. I will make motion to second. All those in favor say I. I motion carries 4 to zero at 6:16.