001gotta turn our microphones on right all right okay can you hear me chris do you have the presentation the other one okay this is the annual update for the maintenance and operation and bonds proceed this is an annual requirement what i wanted to do first is just go over what our current state is this year we have a special education increase of eighty six thousand dollars and what i mean by that is our six speed grant has actually decreased from 486 thousand dollars to 396 000 so what we're having to do is we're having to shift costs from our 6b grant over to mno and that's about a need of 86 000 we're also looking at approximately forty six thousand dollar increase because of the prop 206 minimum wage increase as well let me interrupt
002just a minute i introduced this hearing as the uh bond investment but that we've started you started with the uh override okay sorry my mistake that's okay so as of january 1st we're looking at a 5.3 percent increase to minimum wage and that's going to cost the district approximately forty six thousand dollars um it's going to go to go from twelve fifteen to approximately twelve dollars and eighty cents an hour and then we're looking at approximately a hundred thousand dollar increase for health insurance and then our liability insurance increased approximately twenty thousand dollars and we're also looking at subsidizing the loss of the mmo override so this is the current state of our maintenance and operation this fiscal year alone i just want to cover what a maintenance and operation override is maintenance and operation
003override is basically the use of operational expenses such as salaries and benefits supplies and general operating funds this is what the district currently has bonds is used for brick and mortar and student transportation this is also what the district has there's also different types of overrides there's a k3 override and it's primarily used for k3 related instructional expenses and then there's also a capital outlay override and it's used for items such as instructional books materials computers software and equipment more and more school districts especially down in the valley are using this capital outlet override now that capital funding was actually decreasing i saw i think approximately seven last year that actually passed a capital outlay override so account an mno override is a special election that allows communities to provide additional support for schools we
004can actually do up to an additional 15 percent of what we call the revenue control limit the revenue control limit is calculated by your student census groups a and group b it's called by the governing board we ask the voters to approve or continue the additional m o funding and the funds again are earmarked for specific purposes and it's generated through your local property taxes your secondary property taxes just to give you an update of what happened the last time blue ridge went out for an emerald override it failed on november 5th 2019. it failed by 178 votes and the when prior to that the override was to maintain class sizes for people and programs it was to enhance salaries and benefits it was to maintain present staff and it was to allow capacity for
005additional programs such as all day k because remember school districts are only funded for half day kindergarten fine arts and gifted programs and to reduce administrative costs this was the primary reason for the mno override when it passed prior to this but this is the the programs that we have to maintain as it fades as it phases out so this is a graph of what's actually happening from 1617 all the way to 2223 as you can see we're now in 2021 our m o limit is 1.1 million dollars because we're in our fifth year of the phase out now the tax rate is 0.4377 the 2122 is going to be our sixth year we estimate that the tax rate is going to be about 1 about almost 20 cents and then 22.23 it will phase
006out so as you can see the max that we had for the emino override was in 1920 of about 1.8 million dollars it was generating and now we're at 1.18 because we phase down another third and the next year we'll face down another third and then in 2223 we'll phase out completely it's a seven year authorization the reduction began in 2021 and then remember the board can seek for another renewal if that's what they wish to do so in year two these are some of the things that we use for the positions or used for the program we funded additional positions we enhance salaries and benefits we enhance health insurance increases we maintain present staff we funded all day k and then we funded the special programs gifted programs art music and program so this
007is what year two look like this is what year three look like this is what year four look like year five you're six and this is what we anticipate the final year final phase out is going to look like so what i want to show you here is what the summary looks like we have the override amounts the total override program and then what emma knows been subsidizing for what was not covered by the override program override amounts versus what we said was going to continue under the override amount so as you can see as it phases out mno regular mmo is actually subsidizing more of what we said the override was going to maintain so under year seven as it phases out completely regular ed is going to have to cover up more past
008to pick up more of those programs so once it phases out mio is going to have to pick up 2.2 million dollars of those programs we said we're going to continue so did we maintain and kept keep those promises that we said we're going to do yes we maintain the class sizes we did enhance teacher salaries we maintained present staff we provided the additional programs and we did reduce did it did reduce administrative costs are there any questions in regards to the override portion no none for me anybody okay thank you now i'm going to cover the the bond portion of it of the presentation we have the school improvement bonds series 2017. these are just some of the highlights the bond passed on june 7 2016 we authorized for 15 million dollars we projected
009an annual tax rate of about 47 cents per year we passed with a double a bond rating the district's obligated to only repay 13.9 million dollars because of the fact that we had an excellent bond rating so i say that the bond sale was a was a success and here this is from the bond pamphlet itself 47.68 cents per year on a 100 000 home and currently this year our tax rate is 52 cents and here's a breakdown of how the 15 million dollars was actually spent we have renovation and construction we said we were going to spend 19 9.4 million dollars we spent a little bit over 9.8 million dollars pupil transportation costs we said we were going to spend 2.2 million dollars it was a little under almost 2.2 million dollars and then
010for technology three point four million dollars we spent almost three million dollars two point nine million dollars and then we had some premium funds some reimbursement from the bonds of about twenty eight thousand dollars and then some interest earn on the funds so we have a little a little over 15 million dollars that we got to spend on those bonds and currently as of six thirty twenty one we have sixty seven thousand eight hundred and sixty seven dollars left in the bond funds and those will be spent on right now for technology that's what it's reserved for are there any questions in regards to this page or any of the information i've given on the bond i have any questions any questions from members of the board thank you brandon looks like in the future
011we might have to make some tough choices huh yeah darn it all right well thank you if there's no questions and we'll adjourn this portion this hearing and we'll quit check turn your mic on you were talking about the early at the beginning you were discussing the increased costs and the the hourly employees got an increase the minimum wage increases yeah and that was passed by the state legislature so basically it was an unfunded mandate correct exactly yes yeah that's what i thought thank you uh and i think it'd probably be appropriate if we had a motion to adjourn this hearing i have a motion to adjourn motion from chuck a second from diana all in favor this uh portion of this hearing this public hearing will be adjourned for a few minutes and we
012will reconvene shortly for a public hearing on the an annual financial report for 2020 and 21.