001ains here Eric is absent uh three here Mr M rugz here miss Olson here Dr Sto here Dr CH absent and I'm here [Music] okay second motion all those in favor all those opposed passes 4 to2 to the flag of United States of America the stands Nation first and only it on the agenda this meeting is Mr President members of the board um public is a public heing to present the 2025 proposed budget for the AL UniFi School District number 15 all districts shall prepare the proposed budget and summary of the proposed budget as Allowed by State Statute ar5905 the district should post a standard 24-hour advance notice of the board meeting and hold a public hearing this is a budget hearing for the 2025 proposed budget there is no board action necessary at this
002time however we want to take this time to you all know this gentleman to my right he's our consultant our our finance CFO consultant and true professionals he has a presentation for all of all of us on the proposed budget for fiscal year 2025 I'll turn it over to Mr Tyler Moore Mr Moore thank you president Hopkins members of the board ton I will be uh this evening presenting the FY 25 propos budget go the next slide so here's the agenda just a quick I'll do a legislative update um the legislature did um complete the K budget last Saturday at 10 pm. so um we are using the final forms um I've helped a couple other districts these preliminary forms but I was a well do the timing of the work meeing we we do
003have all the final adjustments from the legislature included in Theo budget so I'll talk about the m and capital as you guys know those are your two main formula controlled um budgets uh session shortly again controlled by the formula and student count and then we'll talk about upcoming budget conversations as we look ahead this year 25 we go to the next slide so the legislative updates so as I mentioned the the budget the kall budget pass of the legislature June 15th at 10m um if you were following at all there were several concerns that it may go well into July or August there seem to be no uh resolution as a lot of their conversation was revolving around various topics other than the budget um but it did pass um they did resolve a lot
004of the estate deficit so um estate deficit was hovering around 600 800 million they instituted some large scale transfers and cut a lot of onetime funding so um cuts to uh the of the water infrastructure um funding application acronym but um which last year was just appropriated 300 million they slashed that pretty much all um there was uh a do got cut 90 million um there's some other smaller scale TR cuts to the other state budgets but relatively Cas of Education was left mostly un touch so um good news for for Cas 12 education bad news for other state agencies um what was kind of appropriated in that legislative um discussion was the one thing that kind of a negative the capital increases um that were instituted with Governor juy three years ago a threeyear
005legislative appropriation that had Capital increasing for three years right it hasn't been touched in years we've just more recently fully made poll from recessionary Cuts back in 08 and 09 so we were looking up but the legisl made these increases now one time um so we'll be appropriating them for next year but what it means by one time they immediately come back off the budget so now we're already going to start realizing cap cuts to the capital budget um which seems like just yesterday we just made po so um that was one of the areas where they went and made a kind of a on it's going to make a one time cut to kind of balance the budget so you're good for 25 and 26 we're going to be seeing reduction in capital funding
006um to the tune about 5% unless some other changes happen so um there was some concern over the the building renewal grants program AO has utilized that program significant you know to the tune of you know $7 million over the last couple years with sever of your Renovations um there was talk that that would be cut to help satisfy the bu that was not so that was kind of a made whole they've been appropriating $200 million every year so that's good news um because AO you know I foresee AO continuing to leverage that Grant fund to fund hbac needs other building needs as as your budget can not satisfy a lot of those needs um the 2% inflation increase in the base level that was um that's mandated in statute if inflation's R running above
0072% the legislature is obligated to to minimally increase um the per P formula so the four right now it's $495 per student they're obligated to increase that 2% if inflation's running about 2% so the state ended about 3% so they minimally appropriated 2% that's been standard over the last couple years as inflation's been rampid um throughout not only Mara but all the very um they did adjust Transportation inflation adjustment it's going to minimal effect AO uh is you don't have a lot of Transportation expenses um but it increases the per mile dollar amount that you get back for reur for transporting students um the agre expension limit um that was Exempted for 25 that's a relief um that's a there a limit it's been back in the Constitution since 1980 and so um the practice
008has been L just to do an annual kind of um exemption for that AG expension limit um they've been holding that as like a kind of token the legisl to pass other bills that they may want increases Ina and Stu like that so good news that was Exempted so there's no you full budget capacity going into next year there was some reform on Esa vouchers um just adding some additional accountability to people polling vouchers um but no change to the financial for that and then they eliminated the Statewide kindergarten entry assessment just another thing in there I don't know how much that affects AO but um that was a previously appropriated legislative act and that was one of the things any questions on that legislative update we saying the da Capal increases that were good
009for next year but we don't know what they're doing each year now it's being done here time are raises pay increases now increases last sustainable going ahead what that yeah so that the one thing about that um is your salaries and benefits are all paid from your ml operations budget so those are safe um so your Capital would be like your um budget for like physical tangible items Des chairs equipment and stuff like that so that's what will have to be addressed next 26 uh and look at what's sustainable with those annual purchases in regards to Capital items so but I have some good news as we if we go to the next side talk about some of your reserves and where you stand on some of your budget so I'm looking at the fy2
010proposed budget again I took into consideration all the legislative changes so the new base level amount is is that per P you get um for student now you have that's the the base base level now AO is they get a small school adjustment on both Elementary and high school so there's additional weight on top of that and then in addition to that if you have eligible students that are considered group E we so learning disability or sp. there additional weights on top of that so um that's all factored into this formula that I kind of rolled up um and how you get your Revenue control limit so you take base level amount you add in all your weighted add-ons times your ADM and you get your Revenue control limit so this is really truly your
011budgeted annual year byye number the $3.4 million um so the raises that we just talked about yes we and considering your annual appropriation all those increases that the board approved are within that Revenue control limit um now we add back in our our budget Bal carry for this is what we're carrying over from this year we're anticipating I'm kind of estimating because we're still finishing paying some bills we have until August 31st to finish our incom period you utilities often come in a month after and so we're still paying bills but um we we have to estimate um on the forms where we're going to end so we're anticipating ining the year with about $843,000 in reserves from this year in the ml budget and so that will carry forward into next year um like
012I said we're not budgeting to spend any those right now we're just uh maintaining those as reserves um it's good practice to have reserves in the case if something comes up right any emergency um that's about 20% of your total budget that's a very healthy Reserve um that is down a little bit from from last year um we had some one time Appropriations 24 budget that are coming off now um and then we had a satisfy some Grant close outs that were not closed out in time we to use some that to satisfied uh some of those obligations the add-ons this is a prop proposition one two3 um that will be going away in 26 so this the last year for that add-on 33,000 so that getes you your total General budget limit $4.3 million
013um you can see we revised to in May in 202 was $4.8 Million that difference is $500,000 as I mentioned in 24 you had a $116,000 in onetime funding added to the budget so that's a reason why you see such a a large reduction in addition we had to satisfy several grants that we closed out in time we had exam dollar to satisfy those um I did work witho Mery Casey we have um those all kind of under control now but during the transition um some of those did not get closed out in time and so um with federal grants they're black and white if you the deadline they not satisfi so add the ml budget if you go to the capital budget again this is these are two different buckets with the capital budget
014um your adjusted Capital amounts the 269 that's your annual appropriation based on the formula so that's what you get annually um so this is what this is the amount that's going to go down 5% so this is where we'll be conscious of how much um we're obligating in terms of capital items and capital expenses now the good thing if you look at the next line The Bu bance carry for we're anticipating carrying forward 747 th000 um into next year again very good to have a reserve in the capital fund um large when when emergencies happen regarding capital items um if the building renewal grant program can't fund it um you're obligated to fund it and so typically emergencies in capital when you're talking about building physical tangible things are a larger dollar amount um than
015M than supplies and services so um you you'll typically see a larger carry forward in capital that's a recommendation in best practice the add-ons that's interest you can actually capture interest on Capital um on the capital budget so so those reserves are collecting interest and you can capture back in budget capacity so one little nice addon um you add all those together you get your total capital budget $1 million 2,616 and the difference from FY 24 to this year uh is 72,000 um as we did a lot of one time initiatives this year Gator Dr had a lot of one time things that we we went through purchased to have upgrade right they come they came in that that cycle right every five 10 years you're going to have stuff that comes up where you're
016going to obligate more money um but next year some of those one time things should come off and we should be um within budget and kind of maintain that bus carry forward unless we have some um looking at again 25 as you mentioned like the salary schedule adjustments those are all included in this budget package and within U the budget capacities so um again those schedules were not updated in several years I kind of we cleaned those up we were able to um provide the bo able to approve some increases much increases and kind of maintain with the level of inflation and the cost of living nowadays um the second item is something we have uh kind of looked into and we're kind of looking at expanding as creating a fiveyear capital plan going into
017next year so um there's been discussion about um Bond funding or like looking at larger Capital expenses um and so I think one of the initiatives is to kindy to create you what is the community feel for need um is there a need um for a field Innovation I think that's the conversations that I've been involved in or is there not and so those conversations I think can create some plans or help identify those plans and we can bring them forth back to the board and discuss those and whether um you want to seek additional funding or alternative funding sources to fund those projects or look at maybe a fiveyear savings plan right maybe setting aside some Capital every year or phasing in some of these items so um I think it will help create
018a vision too on where this District wants to go um with some of their Capital items and and try to you know it's nice to have a vision and goal in front of you and a root that to where everybody's going the same direction so um that's kind of the goal for next year uh is try to create that that plan and bring that back FR discuss that so was that that's 25 proposed bus I'll be happy to answer any questions one question I have goes back to no budget when you were saying that there was some of the shortfall was that there were grants that weren't get the term you used for but you said during the transition is that during the transition of superintendence that that happened or what I think it's a
019combination of myself getting on right there's some business manager transition um and then the the Train the timeline Clos out with the grant timelines by the time we got I got on board like some of this stuff is already in place and down the road and it's really hard to turn back or correct some of those items so elaborate he said he said it pretty well just a complete turn over just uh you know uh the budget revisions the annual Financial reports and then just getting a clear idea um everything else with journal entries completion reports working in collaboration with Pim County Superintendent school's office they also had a complete turnover like from one day to the next literally they lost their CFO from one day to the next so they have a new interm
020CFO going from the state level to the county level so there was just a lot of a lot of turnover and just getting everyone on the same page to the time and as that time passed County and District state level still have their mandatory deadlines of what was what was needed to be turned in she had two completely new trying to get all the journal entries in order completion reports in order making sure everything is done appropriately and that was part of just the all the change at one time but excited about this coming year we work very closely with the the county superintendent school's office with the State Department of Education grants office and now it's like a just a triangle if everyone is more on the same page and one year being together
021is going to really make a difference going to the second year everyone's going to know who to call who to send what to just just more collaboration more chemistry it's going to be a lot better physical year 2425 and and M we took a on the carry pretty much is carry forward like we we're going to work to build that back up um by leveraging not only the grants that didn't captured last year but new grants right I think the team has already added new grants on the board that we have been made aware of or I've made Casey and mercy aware of um so I'm optimistic that that will turn around um next we also have I can add to Mr MO our finance team is getting doing a cohort with the Arizona Association
022School business officials so they're up there getting the best practices training on chared accounts on grants management gme with ad um payroll practices just they're both going to be getting the best practices training that other districts also receive and we get it right from ASO on a monthly basis so we're going to have a better game plan coming in on a month-to-month basis keeping track of all of this with all the new staff at each level district county and state so just to follow Rob's question had we receive funding on that those grants and had to reimburse that funding or so we we so yeah we AO originally was accepted and received those gr fund we obligated your positions Etc towards the grant funding and then that close out either we weren't in a situation
023where we can close out and we didn't have the proper paperwork in and so we had to revert that funding to ml right it wasn't eligible then to reur from that Grant we move that to M to cover that so again a one time a one time issue but it does have Financial impact when you're not able to satisfy the needs or the obligations of the grant um and unfortunately yeah so explain this to like moner we receive for a grant we didn't do the accounting for it that what yeah so you yeah federal government right gives you a $100 Grant you're required to do meet all these obligations right from a district we have to have registration with s.gov we have to have um we because we're not an entity that can talk directly
024to government we have to go through Arizon Department of Education so they have rules and timelin so that $100 Grant we're like okay we got a position in it right we're going to pay a sement for Angelina right this year all right we do that we pay Angelina now we go to close out that Grant and ab and fed says wait hold on a second you didn't submit this paperwork in time you didn't submit the proper close out paperwork you didn't tell us what your account are spending this money on the grant timeline's over after we had that conversation and then they they will not reimburse so fortunately we have to take that $100 pay for it from them know and then you know get that grant money back to the F so it happened
025on a couple different grants unfortunately this a big deal eom a lot of money or little money or $100 uh we're talking you know up to $100,000 because we title one was one of the bigger ones that we that we had referred back um and that provides a significant amount of positions for this District there's several positions and supplies that we this District utilizes that Grant for so yeah it was it was unfortunate and you'll see it reflected in the audit reports um just the the lack of issues with the transition unfortunately that's the reality of what happened and we have a plan going forward though to rectify this and and try to rebuild those funds so you have it all under control for now I'm very optimistic 25 with not only um Gloria and
026ginger but Angelina and Casey and Mery I think we're all a lot more cohesive um we kind of set up different um kind of layers so not only have we're not just one person doing something right we all have knowledge of how to either do a requisition or complete completion report so um there's cross training involved so I leave you know St you nothing will will fall off and I think that was the case of what happened a lot of knowledge with one individual that individual leaves it's at the Mery unfortunately we have that $100,000 Mark for din the bo next year is there any more questions discussion on thank you for yeah but they Elementary level I don't have a teaching background okay I'll make a motion to second allst [Music]