001Good evening. I would like to call this meeting to order. Mr. Lsonheiser, may I have roll call, please? >> President Wade, members of the board, please let the record show that four members are attend in attendance tonight and Miss Schultz is not in attendance right now. Please join me in a moment of silence followed by the pledge of allegiance. I motion to approve the agenda. >> Second. >> That would be Mr. Glover seconding. Please submit your vote via the portal maybe. Oh, hey girl. Hey girl. That's not fair. >> Miss Zimmerman, would you like us to do a verbal one for this one? Okay, no worries. >> Okay, thank you. >> Yes. >> This is the motion to approve the agenda. >> Okay. >> All right. Uh, yay. So, I believe that's five yays, even
002though I can't see the little box. Miss Zimmerman, can you correct me if I'm wrong on that? All right, five yays with zero nays, folks. We're learning everybody. I appreciate it. Mr. Lennonheiser, you are up. President Wade, members of the board um for the superintendent report. We're going to start with Higgley happenings. And with such a large people in the audience, I do uh would appreciate if you guys would stay through the end of the superintendent report. There will be a time at the end when we can dismiss you if you'd like to leave after that. But what a great time for us to recognize people within our community. So, Higgley happenings and uh let me see. All right. First, I would like to invite Grant Kellis to come up here. I don't know if
003he's made it yet. All right. So Grant, if you're out there and you're listening, we'd like to recognize Grant Kellis, a senior at Higgley High School, for winning the 200 freestyle at the 2025 Division 1 Swim and Dive State Championships. If we can give Grant a round of applause, please. So because of this and in addition to the rest of the season, Grant was also named to the All State team. Grant success brings pride to his school and emphasizes significance of commitment and passion in achieving his goals. To be a state champion is someone they can never take away from you. So congratulations and well done Grant. Once again, Grant Kellis. Thank you. Now, is Cameron Kellogg here? Cameron Kellogg, if you could come on down. Everybody give a round of applause to Cameron Kellogg.
004>> So, on December 9th, Sasoma Middle Schooler, seventh grade student Eron Kellogg won the E East Valley Conference Championship cross country race. She defeated 146 other runners to claim the championship for the EVC. Let's give Cameron a big round of applause. I have our assistant principal and athletic director at Sausman Middle School. Uh Mr. Keeling is now going to say a few words about Cameron. >> Absolutely. So Cameron did a fantastic job in the race like 146 other runners and she She finished ahead of those runners by five seconds. She did really well and was very close to reaching the alltime record for that course as well. So we have high assembly incredible students academic recognition as well respectability values we try to pit every My mom and Dad pressure. All right. Now, if I
005could have Mrs. and Mrs. Happy come up and let's celebrate points of pride for the Cortina Tigers. Good evening everyone. President Wade, members of the board, cabinet, thank you so much for having us this evening. It's always such a joy to be able to celebrate and honor the people who make up our school community because they really are the ones who make the magic happen. So, um I'd like to start off with our student. So, Miss Clara Eman, come on up. All right. So, Clara is a fifth grade student at Cortina and she's not only excels academically, um, but she is a student who is kind and shows empathy towards others. She's an actively involved student being a part of our NHS, our color guard. Um and she really does contribute positively to any group
006that she is a part of. Uh one of the special things that really highlights um her civic responsibility that she shows as a student is uh CLA Clare was the driving force behind the return of our school campus um recycling program. So, a few years ago, our uh recycling program was no longer supported by uh the town of Queen Creek, and so that went away. And Clara felt very passionately about this. And last year, she came to me with a petition and uh a whole list of reasons why we needed to bring the program back. We had a conversation, kind of talked through the logistics of everything, the financial aspect of everything and uh Clara was then invited to come to our PTO, a PTO meeting last year. She did a wonderful presentation to our
007PTO and was able to convince them that this was something worth putting their funds towards. And so, uh, she has been essential in getting that started. This year, our program is up and running. We've got recycling going and it's been amazing and it's all due to Clara and her actions. So, um she's an amazing kid. Her teacher said so many wonderful things about her. Um one of the things that she highlighted was uh Clara's in our accelerated math program and she has been mastering lots of the fifth grade standards, but she's moving into the sixth grade standards. And while most uh students know what pi is, um Clara actually owns a book that lists hundreds of digits of pi and she's memorized more than a hundred of them in sequence, which is truly impressive. So,
008she is an amazing girl. She's got uh compassion and empathy and kindness that is shown towards every student that she interacts with. She's so respectful towards the adults at our school. Um, and she's just an amazing kid. So, we are very proud that she is representing Cortina tonight as our points of pride. Congratulations, Clara. Clara, go ahead and tell everyone who you brought with you tonight. >> Um, I have my family and my my grandparents and my parents. >> Thank you for being here. All right. And next, I'd like to invite our certified staff member, Angela Rans Dell. Give you All right. So, Angela is our uh speech language pathologist at Cortina. And she is an individual who truly changes lives. She approaches her work with care and compassion. And every child that she interacts
009with feels seen. They feel heard. They feel supported. and they all look forward to seeing her when they get to go and see her. So, they actually don't want to leave her class when they're there. Um, she collaborates well with uh her colleagues to help ensure that students are supported in all of the areas of need um particularly with the language development but also social skill development. And she never hesitates to do whatever it takes to help a child in need. Um, she brings a sense of humor and joy to her sessions, making learning fun and engaging for kids. She puts her heart and soul truly into everything that she does, going above and beyond all the time to make sure that her kids are growing and experiencing that success. Um, the relationships that she
010has built with families over time and with her colleagues is amazing to see. She's affected so many of our families and she has a very large case load. She does her work though. She comes and it's no small feat, but she does it with grace, with dedication and a smile. Angela tells it like it is. Always with honesty and humor and never fails to make others laugh. But I just appreciate all that she has done in the years. I've worked with her for a number of years now. I can't even count how many. But it's been wonderful to watch the lives that she's impacted and we're just so grateful that we have such a dedicated amazing individual. So, thank you, Angela. >> All right, Mrs. Randelle, who did you bring this evening with you? >>
011I brought my son, Adam, my son Ian, and my husband, and my one student. I did bring one student but actually he came in that is my Connor >> and that is how she refers to her kids. It's my Connor and my Susie and my so and so and and they claim her that way too. All right. All right. for our s uh classified as points of pride recogni uh let me try again and get my words right for our classified points of pride recipient please welcome Miss Emily Pucket to the front for you. >> Emily is an exceptional member of our Cortina staff. She has been with us for a number of years and has grown in a number of ways. She previously has served as a lunch aid for us and had come
012to Mrs. Paky and I expressing an interest in wanting to grow her skill set and do more to help serve our students and now for the past two years has served our students in the role of a crosscatategorical pair professional with our students. Um she has been a part of the Tiger family for nine years and has just really embraced Higgley's core values during her time with us. uh every day she comes ready to serve knowing that her purpose here um is to help support not only our students but the greater Cortina community. She is always learning centered very much focused on not only her growth but ensuring that all she interacts with daily are growing as well. Um she seeks feedback, asks great questions, contributes wonderful ideas to help support um the students in
013her classroom, the teachers that she works with, but just again that greater Cortina community. She's kind and patient. The relationship she has formed with her students over the past two years is just truly phenomenal, and they feel so loved and valued by Miss Pucket. She enriches those relationships by making sure she's continually learning all she can about her students, but then sharing that knowledge not only with our staff, but wanting to form those connections with our staff as well. She has a keen awareness of high expectations that we set for all members of our Cortina community. Demonstrates accountability for the work that she does. Um, and without Emily on campus, Cortina just would not be the same. And so, thank you, Emily, for not only bringing your best every day and serving our community with
014such pride, but being authentically you. We appreciate you. And would you like to introduce who you brought with you today? I brought my husband, Chris, and my three daughters, um, Maddie, Muel, and Maya, and my son-in-law, Aaron. >> Wonderful. Thank you, And for our volunteer points of pride recipient tonight, we welcome Miss Aubrey Beal to the front. Aubrey, these are for you. You're welcome. And them for you, too. Um, most prominently, Aubrey serves as our PTO president, but she is also mom and volunteer extraordinaire and our go-to, hey, where could we get this or how could we blast this on social media? Or what creative ideas do you have for this go-to woman of all trades, if you will. Um, but in her role as our PTO president, Aubrey is not only a collaborative leader,
015she's an advocate for our school, she's a bridge for our families, um, and the larger school community. She demonstrates in not only the meetings she holds with PTO, but in all interactions with our staff, our students, our families, that active listening, her top-notch organization skills are just phenomenal. I thought I was a good organizer, but yours is top-notch. Um, and most importantly in her role as a PTO member, she is truly the ultimate motivator for getting volunteerism up and running and solid and consistent um in our community. uh her decisions and the decisions that she helps support our PTO board with are always uh front and center on student success and the overall um forward movement of Cortina. She goes above and beyond in coordinating events. If you have ever seen any of our PTO
016events, you know that it is her staying late to add that final decoration or that final little detail that just can't go unnoticed. She secures community partnerships, helps bridge any and all connections we can make with our local businesses, but also within our Higgley schools, especially our feeder schools. Um, she just steps in and helps whatever is needed whenever it is needed. She fosters inclusion, has clear communication about her goals with PTO, and uh truly shares in the purpose that Mrs. Pepky and I help lead in our mission and vision for Cortina. She creates that strong positive culture and you can't walk away from a conversation with Aubrey without feel feeling valued, respected and an important part of the process. So, thank you Aubrey. We appreciate you. And um Aubrey, your cheering squad is who?
017Uh, I have my husband Mike here. Um, who obviously without him is an amazing partner and teammate, I couldn't do half the stuff for our school that I do. My daughter Taylor and Bruin are here. They're little tigers also. And then my mom and dad are here to support. And then truly, again, it takes a village as we all know. And I have our amazing PTO members here to support me. And without them, like we would not all be successful. So, I'm so grateful for the community we've built. And so thank you guys for coming out to support. Appreciate it. >> Thank you. All right. Thank you, Cortina. And now, if I could have Mrs. Bachelli and Mrs. Bacon up to the front for HTA. >> Good evening. So, our first honore this evening is
018Joy Berg. Would you come on up? So Joy is a sixth grade leader on our campus. Um what exemplifies her leadership is through her active involvement in student council. She's consistent in her commitment in serving our community. She confidently leads our daily announcements, plays a key role in organizing our energizing pep rallies, and supports a variety of studentled initiatives across campus. Her leadership is grounded in kindness, collaboration, respect for others as she works thoughtfully with her peers and staff alike. She sets a positive example for her fellow students and contributes meaningfully to a welcome and inclusive school culture. Congratulations, Joy. Um, I brought my whole family. Uh, it would take all day. >> EVERYBODY. >> OKAY, you have to stay here. All right. Our next is our teacher, Megan Green. So, Megan is our sixth
019grade social studies teacher. We have a lot of sixth grade people here tonight. Um, she has an exceptional commitment to providing authentic, engaging learning experiences that deepen student understanding and foster real world connections through thoughtfully designed instructions. She consistently encourages critical thinking, collaboration, and for sure student voice. Beyond the classroom, she's a valued team player who willingly supports colleagues and contributes positively to our culture. Her leadership as the drama um club adviser and yearbook club adviser further reflects her dedication to student engagement, creativity, our school community, and making her an invaluable asset for us. So, Megan, you have a a big group of people, too. Rattle them off real quick. >> I brought my family, my kids included, who have come through my class, which is amazing. and my entire team, including amazing colleagues from
020my school and then all of you and Joy. So, well, yes, my mom and dad, they're part of my family. >> All right, the next person that we're going to honor is our office manager, Amy Woodruff. We appreciate Amy for her exceptional dedication and leadership in supporting every facet of our elementary schools operations. She plays a critical role in ensuring teachers have the resources and support they need to foster student success while skillfully managing budgeting, logistics, and day-to-day operational demands. Her commitment to outstanding customer service internally and externally creates a welcoming and efficient environment for staff, students, and families alike. By wearing many, many, many, many hats with professionalism and care, she ensures that our school runs smoothly and effectively, making her an incredibly indispensable member of our school community. Thank you. Who do you
021have here? >> I have my husband, Nick, and my son, Parker, and my daughter, Libby. >> All right, last but certainly not least, we have our PTO vice president, Mrs. Bethany Utley. If you'll come on up. We appreciate Mrs. Utley for her outstanding leadership and unwavering commitment to fostering a positive school culture. She's been instrumental in organizing our first ever trunk or treat event, creating a memorable experience for students and families and staff. We all loved it. opening the door to a new unique opportunity to welcome the Arizona Arizona Cardinals to our campus. That was a amazing opportunity for our students. Her ongoing support of teacher recognition initiatives and her collaboration with the district to build meaningful business partnerships reflects her dedication to both staff and students. Through her tireless and willingness to go tireless
022efforts and willingness to go above and beyond, she has made a lasting and positive impact on our school community. We appreciate you so much. And who do you have here? >> My husband Josh and my daughter Harlo. There needs to be President Wade, members of the board, for the final part of the superintendent report. We just have some upcoming events. Uh, Thursday, January 29th is kinder roundup on our elementary campuses. We're really excited to see next year's kindergarten. I think it's class of 2039, which seems rather bizarre to me. And um on Tuesday, February 10th, we have the board business meeting. Also on uh February 10th, that is the last day for our 60-day public review for our ELA adoption. And we just want to remind anyone out there who would like to come in
023and view the ELA adoption material. Typically, they're in the back of this room on non-meating days to come through and see that. The last day would be February 10th. Uh Wednesday, February 11th at 5:00 is the elementary cheer competition at Williamsfield High School. And then at 6:30 on the 11th is the Lunar New Year Concert at the HCPA. So those are some upcoming events. And with that, I conclude our superintendent's report. Thank you, Mr. Lenheiser. For those of you who were here for the Higgly happenings and all of that, you are more than welcome to leave at this moment should you desire. We have public comments up next. So, if you want to stay for that exciting portion, you are more than welcome. I like how you said we have public comments up next. Like
024it was like and up next. >> What? One of them wanted to something. They wanted to stay around. But I didn't want them to be like >> also I have a cough as Okay. >> Um, so that was the uh last call for public comments. Next on the agenda, our request to speak. Please play the video. We value input from our constituents. This time on our agenda has been set aside for anyone from the audience who wishes to address the board. Those that wish to speak should have filled out speaker cards which are due prior to the start of our meeting. Members of the board may not discuss, comment, or take action on matters raised that are not specifically identified on the agenda. Therefore, pursuant to ARS 38-431.01i, action taken as a result of public
025comment will be limited to directing staff to study the matter, responding to any criticism, or scheduling the matter for further consideration and decision at a later date. Also, we ask that audience members practice proper public meeting decorum, refraining from either negative or positive responses, including clapping or verbal outbursts to ensure fairness to all points of view. Those that refuse to follow these rules may be asked to leave. In accordance with policy beedh public participation at board meetings, if considered necessary, the governing board president shall set a time limit on the length of the comment period in order to ensure that each individual has an opportunity to address the board. The president may also set a time limit for individual speakers. Thank you for your cooperation. Up first, we have Kathleen Richards. Humans up in front
026of this room as well as from our sister school, Cortina. So, congratulations to those families. One of the things that I wanted to highlight because tonight is going to be a hard meeting. The board has a difficult task of identifying how best to spend the lower amount of dollars that we have both in part because of declining enrollment and because of a lack of community support for the override which makes it possible for Higgley to excel in so many of the ways that it does excel. And one of the things that I noted while the schools were giving their presentations were a couple of words that kept getting repeated over and over again when referring to our teaching staffs especially. And those words were growth, community, service, relationships, and commitment. I think that one of
027the things that we have learned as a family here in this district for nearly 10 years is that regardless of whatever is going on around and in our district, our teachers show those things tenfold to our students every single day. And it's important that they do because they see our children once they enroll in school. I talk about it all the time as a volunteer when I served on the PTO. Teachers have our kids for more waking hours in a day than we do as parents. And it is so important that we remind them how much we as parents and as a community support them, how much we trust them, how grateful we are for the work and the service that they do. Because so much of what goes into being a quality teacher does
028not just happen in the classroom in terms of the instruction that is provided, but it is in the hours of prep and support that they put in. It is in the communication with parents. It is in the communication and the PD that they fulfill every every day, every month, regardless of whether school is in session or out of session. Teachers are not idle. They are working. And I think one of the things that we as parents really need to remember is that where we can, we need to show our support to those individuals that we are tasking to help shape the young lives that we bring to them in our classrooms every single day. And I hope that the board who has had several options put out in front of you is able to come
029to a genuine consensus. I know that some members of the board support our teachers and our staff more than others and that's done through not only the decisions that you levy from the dis but also in how you conduct yourselves outside of this space and I want to thank those of you who make a distinct effort to learn about the things that you don't know about to communicate to our community what we need and why we are having to make these hard decisions. And as a parent and community member, I just appreciate the work that you guys do, the work that the administration has done. And again, I just want to express extreme gratitude to all of the teachers who serve our kids every single day in this district. Thank you. >> Up next, we
030have Elizabeth Tannardi. Hello, my name is Elizabeth Tinardi and I'm a parent of twins who are currently in fourth grade uh in Coronado. This is a very last minute speech. Um on the way home I asked my daughter Ella if she wants to speak um at the board meeting and lo and behold she said, "Oh yeah, what did they ask?" So she actually came up with two questions them him herself and then she answer it herself and I thought it was very impressive. So I'm just here to support her. But I also wanted to use this platform to thank each and every one of you all the governing board members who really represent us the parents and the students to speak up for us. um superintendent and all the stakeholders and all the administrative um
031staff who make up HUSD. Um I have experience with Gilbert and then also Mesa. So I can unbiasedly say that HUSD is the best district. My husband and I chose to drive 23 minutes each way to Coronado for the past five years, almost five years. Um even though we literally can throw our kids right to the front of our neighborhood elementary school from our backyard. Um after graduating high school in Indonesia, I came to US to pursue um higher educations. English is my third language and uh it is very hard for me and I had to work super hard to pass my TOEFL test to pass my GMAT test to get all my degrees. So I was really set on teaching my kids my native language. second native second language actually Indonesian. Um so I
032speak Indonesian with my kids and I intentionally along with my husband to choose and research Mandarin uh immersion school in Gilbert. So someone once told me it takes two minutes for a toddler to pick up a hammer and destroy things but it takes years for expert to create and build. I thought that was really awesome when I heard that. I was like, "Oh, some people are toddlers, some people are not." So, I wanted to thank you all for choosing to be the expert and for not affecting current site programming such as the Mandarin DLI, for keeping elementary specials. This really truly shows that HUSD commitments to provide academic excellence, innovations, and continue to provide limitless opportunity. We all walk the walk and talk the talk. So that's awesome and thank you for that. Both Mandarin,
033DLI and special such as the PE and art and music, media, band, orchestra, they're all critically important to early learning experience and brain development and I think a lot of us have spoken about that and then also share some research. So this is also what set us apart when we take Mandarin DLI out of H. >> Thank you Miss Tinardi. Up next we have Ellis Nearinger or Sneeringer. >> Yeah. Hi, my name is Ellis Manger and what I want to talk about is what I like about man. I like about mangan because I can speak different languages and man is one of the language that is hard to speak. When I go to if I go to China, I can speak fluently and I can understand Mandrin when people are talking to me and I
034can speak to my grandpa and grandma and man. What do I love about Coronado? I love about Coronado, they have amazing staff and teacher. They help me learn so much stuff even when I'm having a hard time. When I have a hard time, they let me sit in their front office for a while. They let me gain confidence. Then when I'm ready to go to class, they help me shine it and get ready to learn. Thank you so much. Up next, we have Travis White. Good evening, President Wade, uh, members of the board, superintendent, district leadership, and community members. My name is Travis, and I'm a proud parent of a kindergartener in the Mandarin dual immersion program at Coronado Elementary. I know this is a little late, however, I want to thank all of the
035Coronado staff and PTO members for putting on Coronado's holidays around the world. Uh, the songs and performances were wonderful. Um, I hope you saw that, Jeff. Um, the PTO's annual annual gingerbread house decorating contest was a lot of fun and it was great to see all the crafts being sold at the holiday market. I'm here tonight because I'm deeply concerned about the fiscal cliff our district is facing and the choices being presented to the board. I've heard the sentiment from some on the board that we should simply accept that more funding isn't coming. I've heard the suggestion that we should make the deepest cuts now, insinuating that we can't count on our community. Starting from a place of defeat isn't an option for our kids. Fiscal responsibility means investing in what works. As board members,
036I'm asking you to use your influence to help this community understand why an override is the best way to protect our schools. We shouldn't be managing the decline of our district. We should be fighting for the resources our students deserve. Regarding the budget proposals, acknowledging I don't have all of the details, we have to be realistic about our reserves. However, option three is too reactive in my opinion. It cuts too deep too fast and treats our staff as expendable. Option two represents a middle ground as a calculated risk that preserves many positions as possible while maintaining a safety net. It acknowledges the reality of our situation without surrendering the quality of our schools. We often talk about inclusion in terms of our culture, but fiscal inclusion matters, too. When we cut jobs, we cut the
037very people who make our students feel seen and supported. The teachers, the aids, and the staff who make our programs, like the Mandarin dual immersion program, possible. We cannot budget our way out of our values. The belief in belonging is one of the reasons I chose the Mandarin program at Coronado for my daughter. My mother-in-law is a native Mandarin speaker, and seeing the light in her eyes as my daughter's language skills grow has been incredible for our family. Let's start planning for our district's success. Let's pass a budget that protects jobs and let's get to work on an override that ensures we never have to have this least worst option conversation again. Thank you for your time, your advocacy, and your belief in our students. Let's keep showing that together we got this and that
038Higgley Public Schools continue to be inclusive of all students, including those who are working to foster a second language like Mandarin. That concludes our uh request to speak. This brings us to consent agenda items. I motion to approve consent agenda items 5.1 through 5.14. Second. That would be Miss Garm seconding. We'll see. We'll see how it goes. Uh, please submit your vote via the portal and then if it doesn't, Miss Schultz, just tell me and then we can record it audibly. >> President Wade. >> Yes, Miss V. >> Um, I would like to explain my vote um real quickly. Um while I'll be voting yes um on the consent agenda, I just want to for the record point out that for 5.2 to um that the district is still paying our former CFO um who
039is now employed with Mesa as a consultant and we have so far paid out around $3,600 and we plan to pay this out until the end of the year um even as we appoint a permanent CFO. Um, and then also for 5.7, I know it was stated that the attorney has reviewed the slides um, for the levy. Um, but I think it's important to watch the meeting because I remember it specifically being for um, the Williamsfield uh, traffic flow. That's all. Thank you. >> Okay, Miss Schultz, were you able to vote on that? Can you just record yours audibly and then we'll >> I that work. >> Yes. >> I mean I heard you. I >> I know. I just want to make sure that that works for her. >> Again, we appreciate you all
040as we use new technology. Look how fancy we are. >> You got it. >> Yay. >> Get it together. Mr. Glover, >> I said get it together. >> I'm just giving you a hard time. Motion carries with five yays. Okay, now we would like to thank Allah Ahmad and uh Boba Cutie for their generous donations to the district. Mr. Lsonheiser, you have an announcement for us. President Wade, members of the board, with your approval of the consent agenda, I'm very pleased to announce that our interim CFO, Sharon Rushamp, will now be our permanent CFO, Sharon Rushamp. I want to thank Sharon for her hard work over the last uh six to seven months as we've transitioned and she's done an outstanding job. We're very excited to have her. By doing this, what it allows us
041to do now is post her current position, which is the director of finance. And so, for this entire time, we've been working with a person down within the finance department. So, it is our goal to fill that position as the director of finance and uh join this wonderful finance team now led by our CFO Sharon Rush Camp. So, again, congratulations, Sharon. Madame President, I just uh wanted to um we saw some retirements uh and as we talked about um the sooner that staff lets us know that they are going to retire as we look at attrition to address some of our budget shortfalls, the sooner they can do that, the better um in case people have to get moved around or shuffled. So, I just wanted to thank those who have already done it and
042encourage anyone who's decided that they're going to do that to let HR know as soon as possible. It really helps in budgeting and decisions that we have to make. Thank you. >> Okay. Welcome, M. Ruscamp, you know, officially for the job that you've been doing. I appreciate it. This brings us to 6.1, second review of fiscal year 20 uh 27 maintenance and operation budget. Miss Rush Camp, >> President Wade, members of the board, tonight we will look at the second review of maintenance and operations, our M budget. This will be for fiscal year 2027, which begins on July 1 of this year. So, similar to what we looked at um two weeks ago, this is the timeline for our budgets. In May, we will take our second revision for our current budget, which is FY2026.
043That will be our second and final uh budget revision that we do. will take that to the May 5th governing board meeting um and predict where we intend to end this current year that we are in. Then on June 2nd, we will take our 2027 proposed budget, taking the information that we know at that point and um calculating our budgets, presenting it and then June 26th is when we will adopt that budget. that will be June 23rd. And typically between the two meetings, the proposed and the adopted, there's very little change. Um the only reason we could potentially see change is if the legislature has adopted a school budget by June. Uh it would have to be around June 19th for us to be able to get everything done in time. And then in December,
044if needed, we would take our first budget revision for the 2027 year. Typically, we do that just to true up where our ADM has fallen. If there has been any one-time funding added, um we would come in then and clean up the budget so we have a more accurate picture at that point. Also, if ade if we do not hit our marks and they tell us we have to revise the budget, then legislature the legislature says we have to come in and revise it. So, we would do that at that time as well. So again, similar to what we looked at two weeks ago, the AAL for this current fiscal year that we're in, it's about 15.5 million. However, that has been um exempted through 2027. So we know this current year we're in and
045then next year that is not something that um we will have to worry about. But it is something that just kind of hangs in the background and to keep keep in the back of your mind. Uh we also know historically we have been declining around 300 students. So that is unweighted. So before we get the weights added for the different grades. Um so we will take into consideration a 300 student loss. Um the estimated 2% inflation for the base support level that is the state at a minimum has to provide a 2% adjustment that is provided they come in higher than 2%. Um and historically we have gotten the less of the actual inflation or 2%. So we are anticipating once again 2% Then we know we will be in the phase 2 reduction of
046the override. So $4.8 million coming off the budget. So we are taking that into consideration as well. And then the Arizona State Retirement System is making a slight decrease. Effective July 1, we're going down .002%. This year we're at 12%. Next year it will be 11.98%. That is something both the district pays and staff pay as well. Then looking for our M transfer to capital. So again we have the middle school leases that we have to pay every year. That lease payment that has to be paid from capital. It cannot be paid from M. So historically we've been transferring 3.55 million out of M. Next year we're going to drop that down to 3.25 million. Uh we will use a little of the capital carry forward and then also the interest um we generate interest
047in the capital fund of which we can spend. So we're trying to try take a little bit of pressure off M. So the top here the 26 current revised budget that is what I presented at the December 9th meeting um we had accounted for an additional 16.0880mm loss above what we had predicted in June of 25. Again this current year we are in now we are transferring 3.55 million from M to capital for the lease payments. And then we also had $21.8 million that we carried over into this current year. So we are currently operating M at 11869 million. Looking at 2027 again we are projecting 300 unweighted ADM loss. That is for group A and that equates to about um 3.293 million if we wait in based on K8 and then 9 through 12
048the different weights we get for that. And then for a group B. So those are are sped it our K3 reading free and reduced funds we get gifted that we are projecting a loss of 292. So that adds on to that um for our reduce of ADM. We also know we are phasing down the override losing 4.8 million. again talked about the 3.25 25 million for the lease payments. And originally we had when we spoke in June, we thought we would carry over 17 million, but we have had um some extra funds with the one-time funds coming in that we had not budgeted for. And then just reduced spending this year. Um, we're projecting 19 million that we will be able to carry forward from 26 into FY27 for our budget balance carry forward. So
049that would give us a budget of just under 111 million. And compare that to where we were at last month in December, we will be down about 7.876 million. fixed cost increases. So while we do get again we're anticipating a 2% increase that it revenue goes then against all of the cost for the district. So things like our insurance, um, health insurance, utilities, just day-to-day repairs that we need to make, supplies that we have to get from, say, um, Home Depot or Lowe's to continue repairing things. So right now, these are projected increases. For property and casualty insurance, we're projecting an additional 175,000. health insurance. While we met with our provider last week, they still don't have the numbers they are anticipating midFebruary having better numbers for us. However, they are warning us that we
050will have a significant increase in health insurance going into next year. Workers comp, we're projecting going up 50,000. Utilities, we are going to increase 300,000. Right now they're about five million. So we'll go up to about 5.3 million for utilities which will include um Gilbert with the water increase that they have. And then for our schools and departments going into this year 26 we had cut wherever we could last year. So going into 27 we are leaving them pretty stable and just going with what we had this year. So the total impact without including health insurance, we're looking at an increase of around 525,000 for fixed costs. This slide looks at the three options that have been presented for the use of budget balance carry forward. Again, we're projecting to have around $19 million. So,
051if you look at option one, which is using the $3 million um cut, that shows that we would bring our carry forward down to around 14 million. Knowing that if we had to cut 7.8, 8 we cut three that would leave 4.8 that we're taking from carry forward but again that rolls into next year's budget so we would have to address that again next year. We know the carry forward next year or the override next year will drop about 4.2 million. So you would have to add that in as well. And then we also separate from the override again would be projecting the 300 ADM loss going into 28 at this point. That's what we're looking at. So um which is $3 million. So this is just kind of showing how if you did not
052take action and we just kept for lack of a better word kicking the can down the road. Um, you could see how quickly we could drop down to option one would be we'd have about $400,000 left of budget balance carry forward by FY29. Option two, we would have around 3 million and option three would put us around 4 million. And again, just to to stress, that would be if nothing was addressed and we just rolled forward um and did not uh make any adjustments. We did not right size um for ADM loss or anything. This is the timeline for the remaining M budget that we will take that on March 3rd. That will be the third and final review looking for tenative approval as we will have our contracts um needing to be sent out
053after March 15th. And then April 7th, we will take our first look at capital. And then on May 5th, it would be our second and final review of capital, looking for tenative approval on that one. So we could get purchase orders in place for long lead items. So the items could get here by the 1st of July and we could get some projects done. And with that, I will take any questions. Any questions or comments from board before we move on to action items? M Rush Camp. Thank you very much. This brings us to action item 7.1, discussion and selection of budget option for the 2026 2027 school year. Mr. President Wade, members of the board, um tonight's discussion uh is the culmination of an effort that we've started last year. And again, just to
054remind people, we had a community survey where we got input. We had a staff survey and we had meet and confer process where we got input. We also had meetings with our administrators. And then on December 9th, you uh as a governing board provided priorities for us. last board meeting on the 23rd, we presented three different options and then we're asking for board action to be taken tonight on the 27th. We determine which one of the options is what we're going to do moving forward. And so, you know, um you we've all seen this slide a few times before, but this just again shows the possibility of the decline of what's happening in terms of what we need to cut. Mr. Rush Camp just shared that you can see how quickly our car forward does
055decline if we don't address anything. We are addressing all three of those options address at least $3 million uh for this year. And so when we look at next year, we know we would have to continue to address situations and we cannot just continue to take everything out of carry forward because it will disappear very quickly. However, with our carry forwards, you notice that we do have a $19 million carry forward this time, as well as $15 million in the classroom site fund, which has a limited use for what we can spend it on, but we'd like to spend it as we move forward. The priorities for the governing board, just to remind uh everyone as they came back, was to keep the elementary specials. So we had that in mind when we made these
056plans uh not to affect the current site program for example the Mandarin DLI to look at option for raises for all employees. Last year our employees not every employee got any kind of compensation increase. There was a small amount to teachers only but a lot of people did not see any compensation increases to continue to make sure we're fiscally responsible and understand what the long-term impacts of the decisions that we're going to make for our board uh for our school district are and to spend down the carry forward. And ultimately, if we wanted to sum up everything tonight, what you're doing is picking an option that's giving me permission on how much of the carry forward you would like me to spend down in order to save different programs and positions within our uh district.
057So, this is the same presentation that was presented before. Um I'm not going to talk about um compensation right now. If you'll notice on your agenda, I split into two different conversations. So the first conversation in this action item is only about uh what different reduction options we're going to talk about. The compensation discussion will be the next action item and we can talk about different possibilities for that as we look forward. But you'll notice option one is a $3 million reduction and that includes uh 29 positions within instruction and support and six positions within admin and support. And for that total coming to around $3 million, option two was $ three and a half million dollar reduction. You'll see increased numbers of instruction and support up to 37 positions. And that uh for admin
058and support it would be 8.5 positions uh for the total. That's going to bring us up to about $3.5 million within reductions. For option three, we have teacher and teacher support an increased number of personnel up to 52 positions and non-teers within admin and support 11.5 positions. One of the questions was asked was in any of these options is it all personnel? Yes, it is. These these options are personnel. We looked at fixed costs. M Rush Camp talked about the increases within that. We know we have to decline from there but we did not change budgets as we felt like we did such a huge budget cut um last year and so we did not uh adjust budget cuts also within these options. We have not cla uh changed the um teacher to student ratio
059within the classroom and so those have remained and will remain consistent regardless of which of the options that you choose. We had a summary slide that kind of put it all together um to allow you to look and see of the three options that we looked at, how much would we anticipate taking out of our carry forward and that's the bolded one, the reduction in pay. I did have to include an estimated pay, which is what I did last time, but that can fluctuate depending on the choices that you make in terms of compensation moving forward. Um so an estimated carry forward after the first reduction would be down to about 15.25 25 million about 17 15.75 for option two and option three three would still remain around 17.15 million within that carry forward and
060I know that's going to be part of that discussion today is where do we want to end on that carry forward and that's really the decision you guys are making and then we can put in place any of the three options that you moved forward with the classroom site fund. We'll talk about that again when we get to compensation. But we want to take all the compensation for increases for any classroom siphon eligent poly employee directly out of that bucket instead of the M bucket. I think when we look at the different buckets that we have um M is a huge one and we're trying what we can do to protect M right now to maintain it for as long as possible knowing we have these reductions coming forward and therefore if we can dig
061into the $15 million carry forward for classroom site fund for increases for people who are eligible we want to put all of the increases in that bucket and not in M. So, uh, I appreciate all of the time, the five of you as you came in and had individual meetings and we were able to answer your questions as you move forward, but I look forward to the, um, discussion that you have and the decisions that you'll make tonight. So, with that, I will turn it back over to you. >> Do we have questions or comments from the board? anybody would like to go. Go ahead, >> President Wade. Um, I would just like to go through uh my analysis of the options. Um, just to break down what my thoughts are. Um, when we look
062at all the options, I see option one as the most risky. Um it's the smallest reduction of three million against a known 7 million structural gap. Um that leaves 5.6 5.65 million in unresolved reductions after pay increases and it relies heavily on our carry forward drawdowns. Um, and I know we've discussed utilizing our carry forward. Um, but this would be the biggest impact and it effectively kicks the problem forward. Um, while we have enrollment um that's declining. Um, it's the highest fiscal risk. Um, and pretty much this option is deferral uh not discipline. Um and then when it comes to option two, uh this is moderate risk but still risky. Um somewhat larger reduction of 3.5 million. Uh but it still leaves us with 5.1 million of unresolved uh that's unresolved after pay. um it
063continues the structural imbalance and then it also relies um on optimism for future conditions uh when we can't guarantee what's going to happen. Um it just I I think with option two it still postpones the inevitable. And then with option three, um I think this is the most conservative option and the least risky. Uh yes, it's the largest reduction of 4.5 uh 4.9 million um directly addressing our reoccurring costs. uh leaves the smallest gap um of 3.7 afterpay of 3.75 and then it builds the strongest buffer um with continued ADM decline, healthc care cost increases, um uncertainty with our state funding and then um facility and capital pressures. Um the most fiscally responsible option um for me is option three. Um, and you know that's that's not when I say that that's not because I
064don't care about the district or um, you know, my intention is to ensure that we are making the best financial decision um, for the district and to say anything otherwise I I believe is disingenuous. US um we're facing clearly a structural deficit um driven by declining enrollment and this is not a temporary shortfall um and we need to keep that in mind. Um as far as risk management is concerned um option one and two leaves millions of unresolved um guaranteeing deeper cuts later. Um and when we look at our our taxpayers, which is our our role here as board members to represent our taxpayers, uh you know, families and taxpayers are expected to live within their means. Um and we need to look at doing the same and ensuring that we have fiscal discipline um
065to protect uh programs um in the future. Um and long-term stability uh is more important than short-term comfort. Um and we need to make sure that we are making um the best decision possible looking at long-term um and uh that's all I've got. Thank you. >> Me. >> Thanks so much, President Wade. Um yes I option one is more risky. I would ideally um pay teachers well and just kind of make sure that our spending in general is kind of lower since we are we are nervously going into a decline of our finances. So I'm all about booing up the teachers. I'll be honest, but I also am good at meeting you know people and working with people where they're at. But I'm edging more towards option three if we can get there. But I'm
066willing to compromise at option two. And I get that's frustrating, but I feel like um potentially uh it'll be, you know, we like a little bit more money in our pocket. It really covers us um as a district and provides safety and those funds. Um but I know it's a hard pill to swallow. So, but I'm leaning more towards three and then possibly to compromise at two. >> Madam President, well, I rise in strong support of uh option number one. Um I think it's the least disruptive. I think it has the least negative impact on the people who are attending our schools and working in our schools. Um I also want to point out that uh this money, a lot of it go is in salaries and benefits. Uh and a lot of that stays
067here in our community. And uh so there's what's called the velocity of money in economics. And so there's a multiplying effect of these like econ. Um so that's good for the community. Um for me, cutting 63 jobs uh on an already strained staff that's being asked to do more and more each and every single day with less and less and less is not something that I uh that I support. I heard Mr. White talk earlier and I agree with him. I still pledge to be optimistic. Uh I don't think we can really survive and be a good school district without the additional funding of an override. So I will continuously advocate for that and hope for that and work uh to build trust in the community and support and I appreciate people who come and
068advocate and talk about increasing awareness and the importance of that need for funding. Um, so I will continue to advocate for that, but I I am in strong support of uh of item number one, which which which is largely attrition. Um, and so our teachers can continue to coming to work and staff can come to work and provide the good services and and work that they do for our children. So option one is my strong vote. President Wade, I'm sorry, my voice is a little bit um shaky today, but um no matter what, we're kicking the count can down the road. In three years, we won't have enough money. Even with lower enrollment, we still don't get enough money from the state. Excuse me. We still don't get enough money from the state and we
069still don't have enough money to cover our funds and take care of our programs and the amazing programs, including the Mandarin program that was spoken about earlier. Um, it's difficult for me to say let's lose multiple people and uh cut jobs and cut programs. I don't think option one because of the fact we're just going to have to kick it down the road next year. I'm not sure. I mean, it depends on how the board votes, but it depends on the district, but I don't know that I see us going out for an override next year just because of our community and the way we might need a little bit of a break. I don't know what that looks like yet, but I can't bet on that. And I'm not comfortable with option one, and
070that's why I'm leaning towards option two. Um, I appreciate everyone's perspective here. Um, I've been uh accused of lecturing, so I wish to be very clear. This is how I feel. Um, I struggle to identify the risk of option one. The reason I struggle to identify that is what's the harm immediately. I agree no matter what we have problems in our future. This is apparent. We sat up here. We had board members express the reason that overrides have failed is because we haven't spent down our carry forward. And yet when the time comes, we go, "No, no, no. Don't do that. I struggle to understand what choices we should make." Then if we're here to listen to what the community is saying, and the community is saying is, "You have the money, so spend it
071then okay community we will do that and that's what this looks like I I struggle to understand and I agree with you Mr. Glover in that we are doing things well. We are doing them well. So why would we come in and blow that up? That seems bonkers to me. I also go the world is bonkers. We've had in the past few days our state our own uh you know horn release that we had what was it 8,500 staff members across the United not United States I'm tired Arizona who have left teaching. 71% of them were for things like burnout. These are real problems. And at the end of the day, your child's education is directly dependent on the person in front of them. That's how this works, right? This is why you have some
072people who do well with ESAs and when middle school and high school comes around, you end up putting in them in our schools, right? It's why some people choose charter schools over public education based off the things that you have and we have those choices to be able to do that. At the end of the day here in Higgley, we are doing well and I recognize that there is risk in that next year we may be having to do a very large cut and I am aware of that and I also recognize that my year is up and so I may not be the one making those decisions next year and that's okay as well in that other folks have the opportunity to do that. But here's what I truthfully believe in my heart and
073it's probably part of the reason why I chose this profession to begin with. I believe in people and I believe in community. I believe in hope and I go the state has problems they are aware of. They just last year gave us one-time funding. Yes. Of millions of dollars randomly and that may happen next year. You right. There are no guarantees. We have no guarantee other than what we are making our decision on right now. And I can guarantee you every single one of these decisions will impact your child in a negative way. Every single one. whether that one person happened to be the club sponsor that was doing that and now your kid's club is gone. That matters. That impacts the outcome of things. From a staff perspective, you now have a less staff
074member, a parah for example, to help you in your class in which you have a high number of IEP kids or 504 kids or English language learners in which not having a parah is difficult because now when there's an issue, it takes you 25 minutes instead of somebody else doing something and you guys divide and conquer. That's the purpose of paras. Yes. To help the students who need them so the teachers can focus on other things. Every single one of these decisions is going to cause harm. And every single one of these decisions, not a single person up here knows what our choice will mean. We will only know this in hindsight. And we all may make the wrong decision here today. But I will choose people always. And I recognize the difference between option
075one and option two. And ultimately, if we need to move the needle, we may have to settle somewhere. But I go, who knows what tomorrow will bring? We have an election coming up in November. We have a state superintendent who is up, governor, etc. Every single legislative seat. Who knows what our state legislature will look like next year. And maybe we have people who go, "Hey, we have been saying these problems in public education are here and now they start funding us." And so then next year we go, "Oh my god, we don't actually have to make these cuts and we can continue to do the things." Or next year we all sit here and go, "This is miserable." and we make cuts that are going to cause harm. I do not understand why if
076there is no forcing us in this moment knowing people on this own dis have advocated to spend down the carry forward not doing it. I don't especially when you say we want trust within the community, then we are going to do what it is that we're going to say that we do, right? Like I just I don't really understand and I agree. I will to my every waking breath figure out how to get the community of Higgley to understand that we are a community and we are better together. For those of you who don't have kids, you are better when our schools are better. That's just flatout facts. None of us want to pay taxes, but yet all of us benefit from the things that these taxes go to. Not only are we talking about
077kids, which objectively doesn't matter if you have them or not. I think we all should be like, "Yeah, kids are great. We should do the best for them that we can." But if you are not, and you go, "Well, I don't really like it. They're not my kids. I don't care. I don't have them. My kids are gone." Your house still benefits from your schools being successful and strong flat out every time. Especially at a time for those of us who are desiring to leave or move houses and all of that. It's a difficult time to sell a home. People can be choosy if they're choosing to. and and figure out where to go. I don't understand. We say no guarantees in everything. This is our means. You say we need to have fiscal discipline.
078It is because of fiscal discipline that we are in this position that we can choose something as an opportunity to kick it down the road. And I again understand that kicking around the road means it's somebody else's problem. But I still choose people here today. And by that I choose our students. I choose what is best for them. What is Higgley doing well? and that is staff currently. And in a year from now when I am wrong and you go see and nobody at the state continues to fund public ed or we find ourselves still here with a community who does not seem to understand how amazing we are then we make the hard decisions when we have to. I don't believe that's today. >> President Wade thank I thank you for those comments. I
079agree. The one thing I wanted to add is um option one all of them are give us a balanced budget which is our obligation to do. So option one balances balances the budget. We're not overspending. Um if you look at slide six of what what Miss Rushamp presented, there is a cliff. It's not this year. So that gives us time to take serious time and deliberation to identify future cuts if they need to be. Um you know, the carry forward is going to run out at some point. It will not run out with option one next year. um or even the year after that. Uh but meanwhile, we can still work towards override or figure out what you know what we don't need anymore or what we don't want anymore. Um so option one still
080satisfies the requirements that we're placed with. And so I would encourage my fellow board members to consider option one as the least uh disruptive and least negative impact on our schools. >> President Wade, I'm just going to go for it. I move to approve budget option number. Um we can't make decisions based on hope and optimism and whatifs. Uh we need to do it based on facts. Um, and when you are wrong down the road, um, I can guarantee that the guilt trip on the community is going to be even worse. Um, and as somebody with 20 plus years experience in finance, I get it. I understand this math. And based on my experience and based on my expertise, I my recommendation is option three because yes, I've said let's use the override and we
081are, but we're also giving us the time to be able to not impact our classrooms. These options, they're not impacting our our classroom sizes. They're not cutting any programs, which is great and we're able to do that. But with declining enrollment, any other option than three, you're looking at cutting programs next year. With option one, you will for sure be cutting programs next year. And that's not fair to our community because you have hope and and optimism. I I'm I'm dealing based on facts and based on the numbers in front of us that were provided to us. All the numbers, not just what was presented, but looking at our spending, look at it, looking at everything. And in a period of sustained enrollment decline, our fidiciary responsibility is to align recurring expenditures with recurring revenue.
082And any other option, I'm telling you, will make a bigger impact on our students and our staff next year. And option one absolutely will be a disaster financially and I'm not willing to gamble with taxpayer money. So let's talk facts. Miss Rush Camp. Oh, sorry. Go ahead. President, can you elaborate on how option one would be a disaster? >> I failed to see it. One of the arguments I believe is that you wanted us to use our carry forward previously. So, >> but now you're advocating against using the carry forward. >> I'm just trying to understand. >> Right. Absolutely. I advocated for using our carry forward, but I didn't say let's use it all all at once. And that's what's going to require because we have $7.8 million gap that she showed in the previous
083presentation. In order to fill that, we're going to have to draw down our carry forward much quicker than we would with an with option three because we'll have a larger carryover with option three. So, we won't have to use it as quickly as we would with option one. And with option one, I mean, yes. Okay. With all the options, we are kind of moving it down the road. But with option one, we will see cuts in in our programs and and staff if if that's the option that we go with. And we made the decision that we don't want to cut programs. But with the with the gap that we're looking at, we're going to have no choice but to do that next year. >> You wish to um Oh, I'm sorry, Miss Schultz. You
084were Okay, great. Speak with facts. No, that's not true. We will not be forced to do these cuts next year, especially considering the fact that we have just discussed what our carry forward looks like right now. Might we next year have to make the same decision to look at carry forward instead of choosing to do more cuts? Yes, that is fair. Something else I wish to clarify as far as facts. Three million come from ADM loss every single year. And I know I feel like a broken record because I've said it so many times. Every single year we readjust we readjust staff every single year based off student loss every year. This is literally required to be done because based off the total number of students we have at each of our campuses determines how
085many paid full-time staff that campus gets. That's how this works. Okay? And so that ADM loss that we will have to address, we are continuing to address and that is something that we will have to continue to reconcile with. That is facts. Okay? But that is done because we staff per the students that we have. If we choose option one, option two or option three, we are still capable looking at our budgets with what we have. And Miss Rush Camp, you can correct me if I'm wrong. We've listened to multiple presentations on this. We will have the money to be able to still have the following budget year after that. It's the next two years that we can do easily. It's year three that things start to get scary. Yes, absolutely correct. Now might we
086if we choose option one kick the can down the road and we have to then look at every other staff member that's the difference between option one and option three next year that is facts that is but meaning that means a loss of programs or that means a loss of things that is not what that is at the present moment in time and that is not what we are talking to you about currently and what next year looks like because we as a community have talked about and have done everything we can to express our programs are the most important and our staff agrees with this. Our programs are the most important. So right now our programs are the things that we are shielding the most. It is staff we are looking at currently and
087might we have to look at doing different things for class sizes and all of that. Yes, I still do not understand the risk that means we are creating more of a problem for ourselves next year other than the reality that we may have to cut folks. And so if your question is we either cut them now or next year, I choose next year. I choose next year. And the reason I choose next year is because who knows what next year will bring us come November when we vote and we have opportunity to look at different things. Who knows what next year will bring us? So why do we look at the staff who agreed to no raise last year, who are still showing up every day, who have moved all of our schools up to
088A's and are consistently doing the work and say if we don't have to right now, I just choose to because it feels safer. Right now the world is unsafe. There is no guarantee for so many things. So why not choose people? And I will always choose hope. And if you get mad at me community in a year from now, again, I still don't understand why you're angry at me. I didn't vote no on this override. I haven't campaigned against it. And I will always choose community always because I'm a part of this world and I see my neighbors and I see their kids and I love watching them grow. I love all of the new things that happen. And I choose to be a member of this community. And maybe over the course of the
089next year as the world continues to change and people start reaching out for community because we need it, then we find it and we somehow come together next year and we don't have to do any of this. I I can't there is no five alarm fire at the present moment in time when we have the opportunity to do that. I I it does not make sense. It does not compute. Why would I blow up what is working well when we don't have to? Doesn't make sense. Um, President Wade, you mentioned in the beginning you you continue to yell and lecture our our community members, yet you expect them to support us. And that's part of the problem. But uh with option one and two, literally it's like we're using a credit card and calling it
090a plan. And that's not that's not a plan. And it might feel easier now, but guarantees that there's going to be pain later. So we can um I I move to call the vote. >> I I I can motion, but Mr. Glover has his up. I just wish to express uh especially with 20 years of finance this would be savings not a credit card. This is savings not a credit card. It won't cost more than what we have that is a very different aspect. Now to be clear from a finance perspective it does not feel great to blow up your savings which is why we went for an override. It's why we did it. >> A point of order. >> No. Yeah. You need a second right? Because I'm not done. I have another comment
091to make. She would need a second. Correct. >> Yes. Okay. Hearing none, may I go? Okay. Thank you. Can you please pull up uh slide eight, please? That has the carry forward after reduction. Uh so everyone can see what we're talking about because I feel like I just I I'm I'm gobsmacked sometimes at some of the comments. Um especially like that we're using a credit card. We are not allowed to go in into the negative balance as we'd be in receiverhip. That's it's an absurd it's an absurd comment. uh for someone that's an elected official to make. So if you look at slide six, the line that says carry forward after reduction with option one, we are still carrying forward 15.25 million. Option two, 15.75 and 17.15 million. I don't see doom. I don't see
092this the you know that chicken little the sky is falling in in those scenarios. Again, I don't like the idea of option two, 45 sta, 45.5 staff, 63 staff. Option one is largely um unfilled positions or positions that uh attrition can take care of. It's the least restrictive. We can be deliberate. We can take our time uh over the next year to mitigate some of these pu future pl pending losses, but I'm not willing to take a hatchet. These are people that are that work at our schools and um I'm just not willing to with as much carry forward. I just I I'm option one is where I am for this year. I mean I do comment. >> Yeah, I just want to say I understand where you're coming from and I leaned largely towards
093option two. I mean option one, I'm sorry in the beginning. Um I do think that option two is still a lot of attrition and based on our numbers and what we have and the vacancies and being able to spend down our carry forward um and still have enough. I also worry if there is something catastrophic and what that looks like for carry forward and so that makes me nervous as well. But um I do also think that two that option two doesn't impact our students and our programs and and like I said with next year's uncertainty I just feel more comfortable with option two real quick. >> Um Mr. Rush camp the uh graph that you showed in the uh 6.1 where it showed where our uh carry forward would be and what was the
094what was the amount with option one? Well, that was if we did nothing. So, if we took the loss for this year and used like 4.85 85 million out of carry forward but then carried that into next year. We did not account for loss of ADM. We did not account for what we did not take care of this year. Then that would bring us down to less than a million dollars. But again, >> that's unrealistic because we are adjusting for ADM every year for our loss. And then we are also going out and looking at fixed costs that we know and also just where we're going to be comfortable. Okay. So, so again, option one is what we would be looking at um if we did nothing with >> No, that's still >> that includes.
095So that's the options that we're looking at though. >> Option one was the Yes. the 3 million. Yes. >> Thank you. >> Mhm. >> Yeah. In 2029 is the end of this chart. I don't know if people can see that or not, but the the first little block is fiscal year 2027 and then there's 2028 and the end point of your graph is 2029. And if you >> All right, we're just going to test it out. President Wade, I move to approve budget option number three for the 2026 through 27 school year. >> That would be Miss Van Hook seconding. Um, all those in favor, Hold on. I need to write for >> I'm working. >> Oh, nice. Did it come up? Um, I It says I successfully voted, but I didn't touch anything. Successfully
096voted, but I didn't touch anything. >> I just want to make sure. >> Oh, okay. Um, I'll hit it right now, but I just wanted to make sure. >> So, uh, all those in favor for >> it took it. Okay. >> No, I'm I'm I'm asking for the votes right now. I was just >> letting whatever she needs your vote >> for option three for option three. >> Yeah. Well, I know, but I was going to say it and then do the whatever. That's fine. And the little box went away. Do you have yours? >> I'm good. >> Great. Okay. So, the motion for selecting budget option number three uh has uh two yay votes to three nay votes. So, uh motion did not pass. >> Go ahead. >> I would like to motion for
097uh option number one then, please. >> All right. Oh, I don't have Oh, that's fair. Um, well, listen, I am uh Yeah, I mean, we can second it and then we'll just do all, you know, all of it like a delightful little crowd. I will second the option for uh budget number one. So, all those in favor of budget number one, cast your vote in the little machine. Here we go. I think mine will go away again. >> Yeah, motion fails. Uh, two yes votes and three nay votes. Miss Schultz, do you want to make your motion? >> I mean, I'd like to motion that we choose opt Oh, sorry. Motion uh for option number two. Sec. >> Mr. Armen is seconding. Hold on a second. I've got to mark all of these down. Okay.
098Then the third would be so Mr. German seconded. All those in favor of selecting uh budget option number two. Um, I'd like to explain my vote. >> Can we wait until everybody has voted at the very least? So, >> I didn't even get to vote and it voted yes for me. >> I haven't even voted either. >> To be clear, I'm not saying what my vote is one way or the other, but I did not vote. >> I was wrong, too. >> Oh, yeah. Like, it chose for me apparently. >> Was it the old ones? >> I don't know. It just showed it for a second and then it went away. So, That one is that's showing there. >> Can I explain my vote? I don't know what we're doing. >> I don't see it
099yet. >> I know. I'm just deciding how I'm voting here, folks. I apologize. >> I am aware. I just Uh, go ahead, Miss Van. Well, should we are you not vote? Have you not voted yet? >> I have not. >> I'll go ahead and explain away. >> Um, I will support option number two. with um with the acknowledgement that we need to ensure that we're looking at at our expenses. um and ensuring that our our expenses match um match our revenue and that uh where we can make you know I know I at the last meeting I've talked about possible you know looking at travel and not you know spending thousands of dollars uh on Vegas trips and things like that. Um, and so, you know, I want to make sure that we're going to
100make proper decisions when it comes to our expenses so that we're not blowing through what would be our savings um, as quickly. That's all. Thank you. Motion carries with four yays and one nay. Um, in interest of uh in interest of of uh governance, I wish to express um as we move forward with what our budgeting is, we do this constantly. We do this constantly. Um to the staff for the decisions and the choices that just made even though considering I voted for two as well, even though I'm in support of one. Um, we appreciate the things that you have done for Higgley and the things that you continue to do. Uh, I would like to reiterate Mr. Glover's point earlier for those of you who know that you are retiring or you're moving on,
101those types of things. Uh, as we continue with our discussions on the things that impact staff here today. 7.2 discussion and selection of compensation increase for the 2026 2027 school year. Mr. Lotsenheiser, >> President Wade, members of the board, uh like I said earlier, I separated the discussion from the reduction options to then compensation increases and have a a small presentation for you tonight. Um the first one is for classroom site fund eligible employees out of the classroom site fund. Again, this is teachers and people who are eligible determined by the state of Arizona who we can pay out of there. We do have a $15 million uh carry forward. Uh what I'm asking is that we look at the classroom site fund specifically and instead of taking more money out of ML as we're
102already reducing the M carry forward that we would reduce the uh carry forward more specifically out of the classroom site fund. I put different percentages up there. I used two as an example from before. If I were to advocate for any of these, I would advocate for a 3% increase for our employees um for all of these different values as we had no increases last year. We had a small one for teachers, but most of our employees got no increase. And so I think that that would show our employees uh support from there. The non-classroom siphon hourly employees as I discussed um the 3% raise is going to be necessary for 72 as that was one of the questions from the board. we had 72 different people that would fall below minimum wage uh in
103next January and so we would need to be bumping those 72 people up further but I think it's important that we recognize the work of all of our employees and be able to do that with a 3% and then the non-classroom site fund exempt that's the maintenance and operations um uh budget again exempt means employees that are on salary that are not eligible for overtime and do not have to clock in or clock out and it's not just administration but of administrative support as well. And there are a lot of different positions within the district. Um, you know, when we look at those different things, I think when we value our employees and all of the different employees that we do, I think it's nice for us to value them in an equal percentage than
104it would be by differentiating between different groups. Just to help clarify the classroom side fund, um, currently I tried to do the best I could showing a chart to say, hey, where would this money come from? So this is an example, top example right now. Let's say someone has coming out of an M base salary $50,000. The CSF base salary and we use that term base salary. And there's a lot of different ways for us to describe it. For me, a base salary is monies that is spread out throughout the entire year. So that would be paid over the 22 to 24 different paychecks as opposed to a stipent or a supplemental that might come out of a one time. This is spread out and our teachers see this throughout all the entire year. Currently,
105our teachers, our CSF eligible people receive $8,597 out of the classroom site fund that's spread out all throughout the year. In this example, the total base salary would then be $58,597. If we applied the 3% that goes up to $1,757.91 and that all of that increase, which is what the bottom one would be, would come out of classroom site fund. We would not be affecting the M at all. It would not be reducing the M uh carry forward or anything. It would be reducing the 15 million that we have sitting in the classroom siphon and coming out of that. I don't know if that's the best way to explain it. I went through this about 20 times with the staff to try to figure out what's the easiest way to explain it when it's kind
106of a complicated thing where budgets and things come out of different bug buckets. But in this example, um I'm just trying to show you where we would come out of the classroom site fund and all of that money would come uh out of the classroom site fund. So um again, as we go through this process or you guys will have the discussion of each of the different groups, it is the recommendation from us that we look at a 3% increase for all of our employees to be consistent. Thank you. Do we have comments from board before we do our first motion? >> I just wanted to President Wade, I apologize. Um, uh, Superintendent, um, cover that minimum wage. You said that would require a 3%. Did I hear that right? >> Cor correct. And so
107when we had employees that um and in in looking at it, we had people that if when the minimum wage increases next January, their salary if we don't increase it would be less than minimum wage. And in order for us to get their HR looked at and said if we do 2% it doesn't get them to minimum wage. So we would have to come back and increase them anyway or 3% would at least get them over minimum wage. >> Okay. Thank you so much. um with the budgets, I felt very a lot more confident in option number three to give um raises and stuff like that. So, I'm just going to kind of have to scale back a little bit. Um is my feeling on that. So, I'm leaning more towards two and maybe admin
108the last topic um more at a 1%. But I really you guys I um I see I really want to support the teachers especially the teachers in the classroom and the supportive staff and all that kind of stuff because it really we did we saw the press release why teachers are leaving this occupation and it is you know uh it's a big it's a big ask and so as a district I really want to encourage people you know parents support support those teachers really kind of step been this is a really kind of reigning back that we have and we're putting a lot of uh you know staff and such in kind of more of a tricky situation. So really parents do what you can to help assist your students at home, help them to
109stay on top of that. And then admins if there's more um behavior is another big topic with teachers that really kind of gets them burnt out. So the more that we can have admin come in and help with behavior etc. I'm sure some of us have been, you know, preaching a lot of this stuff, but I just I really want to we've got to kind of streamline a little bit more and just really kind of step more into our roles and really support that classroom as much as we can. But yeah, I'm leaning more towards um those percentages. President Wade, it's difficult to talk about cuts and then in the next um second talk about compensation increase. However, it is important to show our teachers and our staff how much we value them and understanding
110what fund the majority of the the raises would come from from the classroom site fund. I realize there's a small amount that wouldn't, but it's important to make all staff understand or feel important or know we know we believe they're important. Um so understanding that and also talking with district and financial just about how far we can sustain that with the classroom site fund and the amount of money that we have in that then I would support the 3% raise. So uh considering the fact that I voted for option two which means that's about $500,000 of carry forward that we get to keep. Um and we did not give raises next year. I absolutely am advocating for the highest amount um in that a our teaching staff this comes out of classroom site fund. So
111it is a different pot in which we are adding to that we can essentially sustain and that's one of the reasons that we've talked about it. Um and uh I also understand it Mr. Lotsheiser that we had meet and confer. And I recognize that with our previous times that we've had meet and confer when it came to raises and those types of things and the staff and our teaching staff took the time to to recognize and honor the work that non-certified staff uh do and why they are just as important. And so I uh would like to advocate to maybe honor what meet and confer discussed since we chose option two with respect to uh the non-certified staff essentially support staff in that. So that would be a 343 situation. For those of you who
112look at admin and say things like administration doesn't need that. I struggle with this as a teacher to be clear. Uh because it is painful to know how much somebody gets paid more than you do. Uh especially when you're like where are you and you don't see them. Um I recognize all of those things. Uh but admin is more than just our principles, right? Admin is a lot of other folks who also didn't get a raise last year as well. Um, and to Miss Schultz's point, it is hard to make cuts and then turn around and uh, you know, give raises. I do believe those cuts can come through attrition. And I do believe that that is a possibility in terms of we staff move, change, all of that regularly. I don't see how we
113do anything less than three. I don't inflation at the rate things are. And when you have other districts that are equally cutting staff as well as other districts, we're one of the only districts that didn't pass an override. Delightful. This means our staff has places to go. We talked about there are 8,500 open positions. What this means is if you're a teacher, you can go pretty much anywhere for the most part. We should recognize that as a district who employs staff and what we can do to get staff to come here. We also have Chandler who's right next door, Gilbert and Mesa in terms of overrides. Ch uh Queen Creek passed theirs the year before. So when it comes to that uh being with minimum wage salary next January, minimum wage may not cut it
114in terms of filling positions that we need to fill and keeping us an attractive position. If we had 500k that we are not spending going from option one to option two now I do the maths and the additional percent for that position is less than that. It's a it's roughly half right because it's 226 at one additional percent. Ah so that's where I'm at. President Wade, I just wonder what that would look like, how long that would last, and if that was an option, why the district did choose not to present that to to us. I mean, not critiquing, I'm just asking the question. >> Um, I I think always when you look at relative compensation increases and relative increases uh across the board, I think it's hard when you look at one group and
115say, "We're going to give you more than the other because we value your position differently than we value something else." Yet, I know I know amounts are differently. However, at the same time, I believe that for consistencyy's sake, we are for lack of a burma a team. We are together. We do have and when you're consistent and been applying rules to all the people consistently, I think that also sends a strong message that we're together and how we apply the different rules. I think it's you know to go through the idea and I I think I discussed this with each one of the members when you came in you know for administration works significantly number of more days than a teacher does therefore their pay is going to be increased now when we look at
116the hourly rate of pay on average between an administrator and a teacher it's about $3 an hour and that's because they are in leadership positions there is more and they do more uh more time during the Okay. But from my perspective, when you look at a group of individuals, all of our employees together, please remember this does not include me. I signed a three-year contract that said I will not get a raise for three years. There will be no compensation increase for me. So, I don't have any proverbial skin in the game because it's not going to affect my salary. And so when I look at that, I think it's important that we recognize the work that all three of our different uh components do to support our district and make us the place that
117we are. >> President Wade, I I don't know if it shows it on this slide, but I'm grateful to know what funds these salaries are coming out of. Um classroom site funds that I feel is being supported a little stronger. I really don't want to dump that M. So I'm grateful for that. The CF CSF eligible employees, that's more the classroom site fund. Um so I I'm going to confidently do that more at the three. I feel that um teachers are observing. You know, it's the nature of the beast. We really have to keep our good teachers here. And I didn't realize how competitive other districts are and how um hard it is to actually keep good. Um that's something that I kind of was a starch reality when I came in here and and
118thanks to all the learning that I've learned. So I'm I am confident I was leaning more towards it too since we didn't get more. Um but since that's based out of that classroom site fund, I am more confident in that being a three. Um, and then obviously we got to hit that minimum wage, right? Because then it's technically against the law, right? Did I say that right? Um, but yeah, if we can uh I don't know the nonCSF, I just really get nervous about dipping in that M. So, I'm not 100% decided on there. One thing I would like to um point out to you, Miss German, as well with respect to admin and uh our non-certified staff as well, it is just as competitive for them. So, keeping good admin and I think you
119can see it when you go on our campuses, especially when you see admin that have been there for a while, admin that have created the type of community that they have created on their campuses and what that looks and feels like when you're on a campus. And so I think again it is important to keep in mind there are so many aspects to what make our schools great and that includes maintenance and operations, right? It includes people who go and do the yard work to make sure that we trim up some of those things as well. Like there is literally every aspect of our employees from top to bottom that help make Higgley what it is. Um and so you know it is competitive everywhere and we exist in the real world and so I
120at the end of the day we have to behave as if we exist in the real world. Uh yeah, President Wade, um you know, I've been advocating to uh get more money into the classroom and I want to ensure that our teachers are compensated. Um and I would support uh a 3% raise for our teachers. Um and then with the staff especially with minimum wage uh you know that has to occur as well although I would like to um I know one of the questions um was that need more time to gather that information but um I would like to know what that dollar amount is for the 70ome employees um to get them to uh the the compliance baseline um and then to know what the discretionary increase would be on top of that
121um but um you know and it's not that I I don't appreciate uh the work that admin does um and all the individuals that are involved in the last category Um but when you look at a percentage increase um utilizing our M uh and their staff that make you know six figure salaries uh and and when you look at that in a percentage that is much higher uh than what we would see our teachers uh getting um at their salary level uh at a 3% % rate. Um, so I would also uh consider doing a 1% there um to ensure again uh that we're being fiscally responsible. Well, it seems as if for the first option, classroom site fund eligible staff that we're in agreement unless there is something else. And so we can maybe
122at least motion for the ones that we know we can accomplish before we debate what this looks like. Um, so I motion to approve a 3% increase in compensation for classroom site fund eligible staff effective for the 2026 2027 school year. Second, that would be Miss German is seconding. Please vote via your little portal, folks. I still am uh at a 4% is what I would like to uh advocate for. I recognize I uh may be alone in that and so I'm willing for folks to discuss what we're looking at in terms of the nonCSF hourly uh staff members that we're looking at at the present. >> Oh, sorry. Go ahead, Mr. Glover. Go ahead. >> I'm just um I'm not sure that you're alone in that in the 4% increase. I just don't know
123that that is that an option that we're able to do tonight with it out not being on the agenda. >> I mean, we're still talking about the same thing, but legal, >> that's where my >> Madame President, um, board member Schultz, the agenda item just says discussion and selection of compensation increase. It doesn't specify the amounts are three different motions. Okay. Sorry, I realized my microphone was off. We broke up all three positions into separate votes. So, the first one we did was for essentially uh staff that is CSF available and right now we're on the second option which would be the uh non-certified staff support staff. >> President Wayne, so I'm sorry, just so I could understand are you're asking for 4% increase for whom? that that would be the nonCSF hourly folks. So
124right now, next January it's going to go up. If we do 3% that would be at minimum wage. So essentially 4% would mean come next January when minimum wage has gone up were above that or competitive. Does that make sense? >> Is that what >> Uhhuh. >> Okay. Great. >> President Wade, Miss O'Neal. So the presentation only offers three choices. So to add an additional choice that's not on the agenda. How is that not out of I mean we only have >> three percentage. >> Madame President um member Van Hook I believe those are administration's recommendations but your agenda is is not so specific to say a 3% increase. >> And thank you just Okay. >> Thank you. Uh so you are also I just want to let you know you're not alone. So uh
125these folks did not receive uh an increase this past year. Uh they are amongst our some of our lowest paid employees as we know. The dollar isn't as valuable doesn't go as far as it did two years ago. Um, and insurance costs are going to eat up a huge probably probably a large portion of of hourly or lower paid hourly wages. So, yeah, if you make a motion for 4%, I would support that. >> All right. I'm going to uh I motion to approve a 4% increase in compensation for nonCSF hourly staff effective for the 2026 2027 school year. >> Second. That would be Mr. Glover is seconding. Oh, I did not record that. I realize line's not show. >> It was 32. >> Okay. Motion carries with three A's to two nos. Sorry, I
126it's not popping up. So, I don't know what I have done to remove that, but >> it disappeared for me too. I always held the three two. >> Okay, thanks for looking out. Uh, this brings us to the third option, which would be administrative staff. One thing I would like to say uh and I'll let everybody have their piece before somebody motions in terms of I'm going to be in favor of a 3%. We did not give admin a raise last year and conservatively inflation looks like 2%. Uh and we all know it's above that at the present moment in time. Uh so again I am in favor of a 3%. President Wade, I Oh my word, this is very challenging because I feel like this is just um tapping into the budget, but it
127is it's a worthy cause, but I'm still leaning more towards the 1% 1 to 2% especially since that non CSF got increased to 4%. So I that's where I'm at. Thank you, >> President Wade. Um, admin is important and having good admin is important. That starts at the top and then trickles all the way down to the bottom. And so I know that we've already lost some people since I've been in office because of um receiving more funds in other places. Um, and they can go pretty much anywhere in the state or the country at this point with education or in another field. and I don't want to lose good people, nor do I want them to think that we value them less. So, I'm in favor of the 3% raise, Madam President. So, um
128you know, when you're when you've just 45.5 jobs, uh some of which were administrative jobs means that administrators, fewer administrators are going to be doing more. Uh so I support a 3% raise. that Mr. Clever President that is another good point that we have lost several over and we know several people are doing multiple jobs than they were uh in previous years as well. President Wade. Um especially with you guys just increasing that to 4%. Um I can't support another 3% um in M funds towards that. I mean this is these are permanent um reoccurring costs. So, um, financially I I don't think that that's a appropriate option. I just want to be clear on the last one. It was it's literally small cents, like just 20 cents per hour. I I don't have the
129exact number in front of me, but it's a very small portion between 3 and 4% that I think could help the people that are making that greatly, especially with knowing how the economy currently is. >> Yeah. So to it the chart's not up there. Um the 1% is 226 uh with the six repeating and the difference between option one and option two on the budget plan was a difference of 500,000 from carry forward. So at the end of the day uh it is still less than that difference that 1% change. Um, go ahead, Miss Van Hook. And no. Does anybody have any other questions before All right. Well, I'm going to motion 3%. I motion to approve a 3% increase in compensation for non CF non CSF exempt staff effective for the 2026 2027 school
130year. >> Second. >> That would be Mr. Glover seconding. >> Okay. I didn't even think my box. No. showing up. Did you Okay. Uh, that motion carries three to two. This brings us to item 7.3, approval of 2026 2027 board meeting dates. Any questions or comments from the board before I motion? >> Just one, Madam President. The October 13th meeting, just to confirm, is uh we're going to try to keep that largely to budget, right? >> Uh, yes. October 13th meeting >> board member Glover. That's the one that's during the middle of the break. And yes, we will. And especially by putting one then down on the 27th. There's a there's a nice gap between the 22nd of September and the 27th. So, we will try to make it because we know it does inconvenience
131people while they're out on break. And so, if we can keep it short and make sure that we're uh passing the budget as well as it provides our finance team with as much time as possible get to get that done. >> Appreciate you guys taking that and doing that. Thanks. I I also appreciate the move for the election night to not have one on election night. I think that's just a smart choice. So, I appreciate that as well. Um, do you have a comment before we motion? Anybody else need to speak their piece? Okay, great. Where are we at in 7.3? Uh, I motion to approve the 2026 2027 board meeting dates as presented. That would be Miss German is seconding. I saw that one. Motion carries five to zero. This brings us to 7.4
132approval of overnight and/or out ofstate uh staff travel ACDA. Any questions or comments from the board before I motion? explain. Sure. Um I motion to approve the staff travel to American uh coral directors association ACDA conference. >> Second. >> Thanks for the save, Mr. Glover. All right. Um President Wade, um I'm like to explain my vote. Um, after doing some research on this organization, I again cannot support um the organization using taxpayer dollars based on their DEIA statement. Thank you. >> Go ahead. >> I I I'm just going to kind of make a statement about DEI. I the most frustrating thing about it I'm grateful that the district has the teachers sign these waivers that saying that they um won't attend these classes and I also like to think of it as their adults they
133will take what content is appropriate for them etc and that these professional developments there are aspects of it that is good but overall I want teachers not to worry about this other hat that they have to put on basically in a way to have an object But the one thing is is um and it was a big part of why I ran is because I was seeing kind of the negative outcroppings of these concepts. And so teachers, I just wanted you to remember um you've been including kids in your classrooms for years and etc. You always try to find that wiggle room, try to relate to those kids. So you're pretty much doing what I think DI's good in a way is attempting to do. So teachers, I just want you to do what you
134do best and keep doing your magic in those classrooms and to not worry so much about these extra, you know, hot topics and such. So I'm that's explains more my vote. I our teachers are adults and I think that they can um choose what's best and take what's best and just keeping keep doing rock and rocking what you're doing that you guys are doing great. >> Uh thank you for that Mr. German. Um Miss Zimmerman, what where is it? Okay, great. Uh motion carries 4 to one. Thank you. Thanks, Miss Schulty. We're going to have to figure that out after this. Uh 7.5 authorization of Salt River project distribution easement. Any questions or comments before a motion? >> I am Oh, >> I thought there's somebody here from >> President Wade. We do have a
135member from uh Salt River Project here, Miss Christy uh Burke, and she's here to answer the board's questions. Please step up. >> Thank you. >> She has waited patiently. >> I appreciate that. Um, is it all right if I introduce myself? >> Yes. >> Okay. Um, board president, members, and leadership staff, uh, thank you for your time tonight. I'm sure many of you have had a longer day than I have. Um, but it has been um, my honor to be here and learn a little bit about how your district is run. Um, our formal request is that the uh the district consider SRP's offer to purchase an easement along the 8 feet south on the south edge of the Kulie Middle School property. Um, this would serve some very important needs of the surrounding community.
136Um, just super quickly, the distribution substations serve about a four square mile area in an ideal situation. um the substation capacity is needed to serve the system. It is not a specific customer. It is overall growth in the area. Additional power needs by existing customers as well as new residences, new businesses um in the community that has just put uh critical capacity constraints on nearly all of our substations in uh the southeast valley. Uh this is work that we would be anticipating and and hoping to have completed this summer. Uh but you know, depending on construction schedules, we would obviously arrange that with the school. But I'd be happy to answer any questions that you guys have about the offer of compensation or anything additional. >> Oops, sorry. >> Okay, I'll go first. Thanks so
137much for coming. Oh my word. Um what exactly is the measurements of this area? Like um honestly the theory of it where we just kind of forfeit it and can't have access to it. I'm just really hoping it's really bitty if that makes sense. So it is an 8 foot wide strip along the south edge of the property that abuts essentially the ADOT rightway. Um, we can't go into the ADAT right away because it actually has a Roosevelt Water Conservation District irrigation facility there just on the other side. That is the drivable path that, you know, we would otherwise look to go. Um, so we're talking about 8 ft wide. Uh, it would be generally underground distribution power facilities that will be buried and the surface of the property would generally still be usable. Um
138the intent would be to connect from the Kulie substation that's in the it's on the souththeast corner of the school property and we would be heading west towards an existing conduit that crosses under the freeway. So we need capacity to extend to the community further west as well to the south. And there are only, you know, certain places where you can cross the freeway infrastructure. Um, and essentially we have very few viable options to get to that conduit. Um, as a design alternative. So, this would be critically needed with very few design alternatives that would not be extremely expensive to the utility to go around the school. Um, as a notfor-profit utility, this is a cost of the system that would get spread amongst all customers. Um, and as we have to serve additional load
139in the area and be able to accommodate new businesses and summer loads so people can run their air conditioners, this is definitely required for system capacity reliability. Um, I'll try and make this a little bit brief, but the area uh what the easement does require is essentially a compatibility review from SRP. If you were to redevelop that area or put additional improvement, want to put additional improvements in it by having it abudding the edge of the property, we'd be looking to minimize the impact to the property. Um, and essentially the reason that SRP needs the ability to approve additional uses is for the safety of the people that might do the work in that area. Uh, you wouldn't want somebody to be digging and not realize it was there and you would have, you know,
140an electrical incident. Um, so therefore, we stick to the edge. We try to have minimal impact. Um, but it's essentially there to protect the public, the school staff, etc. >> I appreciate it. Thank you so much. Uh, Superintendent Lsonheiser, how will it affect any kind of flow at Kulie or anything like that with the schools? >> So, if you take a look, this is the plot. So, that's where Kulie is if you look on the screen. So, you can see where the 8 ft is. That's the furthest away from the building. It's really on the edge of the fields. And so, there's no there's no cars that go there. There's no traffic that goes there. The substation, I believe, is in that cutout corner already. So, it's just adding it to that. And so, when
141you talk about impact truly coming in and impacting the day-to-day operations of the school, it's not going to. And that's where we felt comfortable in partnering with SRP to allow them to help meet the demand that they had. >> Okay. Thank you, >> President Wade. I did have have quite a bit of questions and if you don't mind I'm just going to read through them and then if you can just answer them as I go please. Um and so um so this is the district will receive a one-time payment of 26,500. Um and then SRP will cover escrow and recording fees. Um and then unless SRP formally abandons the easement, this encumbrance remains in place indefinitely. >> Yes. >> Um okay. And then the the easement and uh required um clear areas may limit future
142site planning um including buildings, parking, reconfigurations, landscaping. Um I just want to ensure that again I know you said that like there's no impact as far as on the the school but these are things that um it could impact. Correct. As >> that is correct. So as a permanent easement that would be recorded against the property um that's intended for the facilities to remain in place. uh they essentially get installed and we would only access and maintain them um in the event that the cable goes bad and they're in a conduit. So, it's very unlikely that we'd be accessing these lines once, but every 10 to 40 years depending on um you know, nothing impacting the ground. if they were dug up and we needed to get in there to repair it, it would be
143that um the to address the question of whether or not it impacts the future development of the property. Yes, you are on but being on the outer edge of the property, this is generally something that is along many parcels edges. Uh public utility easements are often dedicated in this exact width for that purpose. so that um any public utility can cross through whether that's the power utility um your cable internet uh gas lines things like that. So given the nature of the size of the parcel there there is not a public utility easement for us to have in place that would have been dedicated when the site was initially built. Um and therefore we don't have a option of going across that direction to get south of the freeway or even west of the school
144property. Um so this would be our attempt at having it be the least impactful. Uh and it also would be there in a manner that additional improvements that can be compatible that includes landscaping, um walking paths, which is what that area is right now. Uh and and things like that, they would not be restricted. It would just be SRP having to approve the future change of use so that we ensure that our facilities can still be operated and maintained safely. Um, so that's the intent that it would still remain part of the school property and be able to be worked with. The facilities could also be relocated in the future if necessary. Um, but to the extent that that can be avoided, that's that's the intent of ensuring that everybody is aware publicly of the
145location of those facilities. >> Great. Thank you. And then also the 25% um use factor. uh how did how did we come up with that 25% is the standard for school districts and also um did this come from SRP like do we have the ability to appraise that as well to see what the value would be? >> Yes. So the 25% is a intensity of use factor that is a um standard that our third party appraisers generally apply to underground utility easements. Um appraisals are a matter of opinion. Um, and as I'm not sure if we completely addressed this, but we did not receive, we did not pay for a third-party appraisal report that could often be a 90page document that talks about every factor that impacts property values AC across the valley in this
146community, the zoning of this parcel, the potential future use, highest and best use. Um, we used sales data to come up with a price per square foot that we believed would be comparable. Um, but it is not a independent third-party appraisal. Uh, but it was it was sales comps that came from an appraiser that pulled that data. So, um, I guess I will let you defer your other question. I think you were looking at >> Yeah, I'm just curious. It's it so the apprais does the appraiser work for SRP or are they independent appraisers? >> This was an internal SRP uh employee. >> Okay. And do we have the ability to get it appraised to see what the value might be? >> Um we have that ability with the cost of course, >> right? >>
147Not sure. >> I'm curious what the cost would be if it would be, you know, worth um worth it. But, uh, I'm I don't know if maybe other school districts have had it and then the appraisal came in at double what we're being offered at, you know, $26,000. Just the thought. Um, also if so let's say that you decide to go outside of exhibit A at that point um would there be an an amendment made an additional um payment to the district um and then require board approval at that time. >> So the easement language allows the area to be amended. This is intended to be only if there are site conditions that do not allow us to locate the facilities where they are at that would be significantly impactful to most likely the school
148property or say the irrigation line that RWCD has rights to have out there if that's in the wrong spot and we simply have to shift a small amount. If there was a significant change in the easement area, we would essentially understand that it was not the school's intent to grant an easement across your entire property that we can just install wherever we want. So, this is meant to just enable existing site conditions to be addressed. Um, and a minor amendment would be recorded. If it was a significant impact to the easement area, not along the edge, or it was the entirety shifted significantly, we would be reaching out before we, you know, decided to install the facilities knowing that that was a material change. And is is that language in the in the agreement or
149can we make sure that that language is in the agreement that if you do decide to make a significant change outside of exhibit A that that there would be that conversation. Um >> it would likely >> I just want to make sure the district's protected >> some modification of the language that we could work through. >> That would be wonderful. Um, bear with me as I go through um my last question is is for the staff. I just want to understand that um according to ARS15 um 342 uh that all statutory notice requirements have to be met um when land is um is sold. And I'm just wondering if that requirement has been met. Um, Madame President and member Van Hook, I'm not a real estate lawyer, but um, my understanding is that easements aren't
150included in the statutory requirement that the board has 15342 are your board authorities regarding sale, lease, and trade of property, I believe. But if it's but if it is district property which is why we're doing this and the district is being compensated for a portion of land, you know, land that clearly is within Higgley's ownership. Um my understanding is that it does require uh public notice. if we can just get confirmation on that from a real estate attorney. Um because I want to ensure that we're um in compliance when it comes to that statute. Um that's all I have. >> Would that cost more money? >> So, um it would go under your prepaid legal through the trust. There are real estate attorneys in our office. I could run that. >> And money or not,
151like we have to ensure that we're in compliance. So, um, it would cost us much more if we weren't. >> Thank you so much. >> Thank you. >> So, um, my assumption is that we can make these motions under the assumption that we are honoring the laws that exist with respect to that. And if we pass this motion and for some reason this specific easement is not what we're supposed to do or the process at that point we are capable of making those changes. That is correct. I just want to make sure I can motion rather than um >> um board member Wade. I'm not sure if an attorney reviewed this agreement. Um, but I've worked on other easements and I understand SRP has a a standard format. So, if there was a problem, we
152could bring it back. I don't >> We also gave up some land at Gateway to make a roundabout and we didn't have to go through the same process to do some of those things. And I get that that is a different situation than the easement we're doing here specifically. But what I'm trying to express, it's not the sale, the uh lease or the exchange of a land, which is what you express with respect to that law. Is that correct? >> Correct. Uh in easement is not a sale. That's what M. Schultz just expressed. President Wade, um I I know you're saying that you're not sure, but I I want to make sure that we are sure about um what we have to do because after it's recorded, we can't do it. And so um I
153would feel much safer finding out for sure. Um, I mean, what's the urgency here? >> We would certainly >> as far as getting the work done, >> we would certainly have the time to accommodate that. This is not >> Okay. Um, so if with that said, if if we can possibly table this to to make that decision and then we can vote then. But with that, um, I move to table uh 7.5. >> Second. Would it be would it be okay if I asked a question? >> Can I ask a question? When is the date that this needs to be decided? Is it in the time frame of our next board? >> I mean, you expressed clearly that there is time. We meet in two weeks. >> We we don't have a construction schedule currently
154um for this work. we would we would have time to close escrow. Um if the concern is merely around whether or not the school district has the legal authority, you know, did not need to meet the requirements of conveying property. Um just by analogy, SRP cannot convey property without our board's approval. Our easements are are treated differently. We can convey easements. We do not treat them as a a sale or a disposition of the property because it is just a portion of the property rights. Um we certainly would not be recording the easement. It we would we would have that time to do so. Um my request would be that you consider the approval of the motion subject to meeting the requirements of that statute. But I understand if you wanted to table the issue.
155>> Well, you just got to vote. Either way, we I appreciate the clarification. Um, we all have to vote on whether or not we choose to table and then depending on the outcome of the table because I second it, so we can just move on with that process. Um, depending on the outcome of the table determines what happens next. President Wade. And I just want to add that um again like I just it's it's better to know for sure what our legal requirement is versus not being able to go back and um and do it after it's approved. And because there there is no urgency again, we do meet in a couple weeks and so we can um do it at that time. Did you show up? >> Uh the motion to table uh had
156two yays and three nays. So the table failed. Um I will uh motion to approve the Salt River project distribution easement pending. What was the delightful language that we should include in terms of making sure that the way we understand the law is in fact accurate and we're not saying something that we we disagree with. >> Um, Madame President, it would be pending legal review confirming boards authority. >> So, I motion to approve the Salt River project distribution easement pending uh crap, I already forgot it. Legal review ADHD, everybody, I appreciate it. So I motion to approve the Salt River project distribution easement pending legal review. >> Second. >> All right. Thanks, Mr. Glover. As long as there's going to be legal review and um making sure that that language that we discussed is in
157there in case there's changes to appendix for the legal review. I appreciate that. I did not say that into the microphone. Motion carried 50. No, wait. That's a new old thing that's showing up. You're getting me all kinds of confused. >> Did you vote on the last one? >> You know what? Glitch. Did it show? I >> did it show I didn't >> Okay, it did glitch. >> So, would you want to record yours right now? >> Oh, uh, yay. >> Thank you. So, is that five yays? I was correct in that or did I say that incorrect? >> Great. Five yays. This brings us to uh 8.1 future agenda items. Does anyone have any requests for future agenda items? Um, I do. Bear with me while I find my notes. Um, Miss O'Neal, uh,
158I'd like to I don't I don't know if this should be a future agenda item or if you can please give me a call so that I can have a conversation um, related to I want to be able to address um, board members wasting meeting time um, to make false and defamatory accusations and other um, against other board members. Um so whether we can discuss it publicly or whether I can discuss it with you. Um but that is a discussion I'd like to have. Please a motion to adjourn this meeting. Second. That would be Miss German seconding. Motion carries 5-0. Everybody, please drive safe. >> Have a good night. Thank you. >> Imagine I See you tomorrow. See you Thursday. I'm back. >> I mean, I think I think you