001good evening we're going to go ahead and call this meeting to order dr foley roll call president reese members of the board please let the record show that all members are present thank you we are going to have a moment of silence followed by the pledge of allegiance of america and to the republic for which it stands one nation under god indivisible with liberty and justice for all and we are going to go ahead and move on to our agenda i move that we approve our agenda as it's presented second any questions or comments regarding the agenda all in favor aye motion carries 5-0 we're going to go on to the superintendent's report dr foley president reese members of the board we're going to begin tonight with our very favorite part of our meeting which
002is where we get a chance to highlight honor and acknowledge our points of pride so tonight we're going to start alphabetically we have middle school in the house and we're going to have cooley middle school come up and we're going to honor our amazing students we're going to honor amazing employees and our community members who make middle schools awesome in higley so we're going to start with mr varner miss devono and ms schwartz if you'll come up and help us highlight our cooly awesome points of pride good evening president reece members of the board dr foley cabinet it is my pleasure tonight to be here to introduce some amazing individuals that are a part of coulee middle school and make cooley the amazing family that we are first of all we have our points of
003pride volunteer our volunteer is sonya hernandez here did she make it sonya hernandez come on up sorry sonia i didn't see you there earlier sonia is our point of contact with desert springs church which uses our facility on sundays on more than one occasion she has provided a gift for our teachers or multiple gifts for that matter in appreciation for desert springs using our campus this has taken a lot of time and effort on her part which we greatly appreciate sonia thank you for all that you do for the cms community we definitely appreciate you picture right all right thank you again sonya our teacher points to pride sean reynolds come on up i saw him earlier although this is officially mr reynolds first year as a teacher he has been a part of the
004the cooley family for several previous years as a substitute teacher and on two different stints is a long-term substitute teacher he's embraced his role as an educator and is open to growing and learning professionally his lessons are structured and organized and more importantly he takes time to build and maintain relationships with his students we just had this conversation the other day in my office didn't we mr reynolds mr reynolds can also be seen in the hallway between classes monitoring students and directing traffic each and every day mr reynolds thank you for all that you do [Applause] we had a succulent for mr reynolds not that he doesn't like flowers but [Applause] our classified points of pride wendy maxwell i saw you earlier come on up miss maxwell has been an integral part of the cooley
005special education program for several years as a paraprofessional and she has made such a positive impact at cooley middle school she takes the time to build and maintain positive and supportive relationships with her students and it is apparent that she absolutely loves what she does this of course is seen by our students thus helping to create an overall healthy positive and supportive classroom environment is they absolutely feed off of her smile thank you for all that you do for cooley miss maxwell [Applause] and last but most certainly not least our student points point of pride omar kareem come on up we recognize omar kareem as our coulee cougar point to pride recipient because he is extremely hard-working always focusing on his work and how he can improve omar has had to overcome many obstacles and
006no matter how difficult to task he is always up to do it and he accomplishes everything with such a positive attitude he treats his teachers his peers and the staff with the utmost respect always treating others with kind kindness as well lastly omar is a leader by his actions he shows others around him what it's like to have what it's like to have to overcome obstacles and he does everything with great integrity we are so lucky to have a student like omar as a part of the cougar family congratulations omar we had a card and a gift card for omar we didn't we didn't know if he would uh want the flowers or a succulent so very i hope you enjoy that omar thank you very much these are amazing individuals at cooley thank you
007[Applause] thank you now i have the pleasure of inviting mr dolan up so that we can honor our saseman points of pride thank you dr foley uh governing board thank you for this opportunity i i i think it's really awesome that our district gives us the chance to recognize not just teachers but all staff and and people that work in our schools it's just uh something that i think as a community we all should see some of the great things and the things that people are doing on our campuses so i'm going to go through the two people first who unfortunately are not here one i know just had an emergency i don't know why my classified person is not here i will share um my two colleagues are actually working um mr potts is
008doing a re-entry plan for a student and with his parents and mr keeling is we had some online kids do our science testing so he's still there working with them hoping they finish their tests so first she's not here but our volunteer is ac trump ac works with our ptso and what i would share with you about her is as we get along from elementary to middle to high i think middle school high school they start leaning more on clubs than they do on parent groups yet at my school we just have the most amazing parents that are willing to help when it comes to that this year even in the end of last year our ptso uh you know certainly with ac the things that they did for our teachers and staff was unbelievable
009shirts hats food all things just to make them feel um as special as they really are so for ac we at saseman we truly appreciate her [Applause] second is alicia riggers alicia is our she's not our nurse but that's what i call her all the time she's a superwoman as our health aide prior to covid i would tell you she is very knowledgeable and she's very caring she puts the kids first after colbert i would tell you she's knowledgeable she's caring and she puts the kids first nothing's changed for her she has more on her plate but she does the exact same things that she did prior just an unbelievable person i'm not going to say willing to have but she has to have sometimes those tough conversations with parents or teachers about hey whether
010you should be here or not here we'd be lost without her so alicia riggers uh a student allison ewing come on up here [Applause] so allison i remember when you came as a seventh grader this little girl got a little giggly and i remember because i knew your mom and we were talking and she asked me about the principal's leadership and i said yeah i'm still gonna have that i think that would be something that you know allie would really like and i remember when we did it last year as a seventh grader you put forth that effort of hey i have some ideas i have some leadership and i don't know if you remember this is the book we read read the book called eat that frog and in the book the first time
011i said to you guys i want you to pick a chapter we're going to talk about it and i might be wrong but i think you talked about organization procrastination and from there as we keep going into this year i just have seen such a person grow you're an amazing young lady um this year we talked about what can we do if you remember there's two things right one thing is um for some girls in the bathroom and the other is the again the bathroom but some pictures and we will get those things done and none of that stuff would have come up if it wasn't for you so i cannot wait to see what happens for you going on forward into high school thank you [Applause] i cheated your mom said you like m
012ms [Applause] last would be my teacher hayley rohner come on up here i'll see if i can embarrass you so maybe five years ago uh you were student teacher she went from student teacher then she started to teach science on our campus and from the minute she started to now you know kids first that's just the way haley approaches her classroom and anything she does she took on an additional role over the last two or three years as a student council sponsor and i think this year has probably been very very difficult i don't know how many times we've had a conversation hey what do you think about this yeah we can't do that what do you think about this i'll check but i don't think we can do that but through it all the
013you've just been flexible um and again making these kids still accountable doing things with the kids um you know making student council still something that's meaningful on our campus so because of what you do in our classroom because of who you are because of all the things you've been flexible with i appreciate you so much [Applause] thank you just dylan thank you so thank you to our points of pride recipients our family and their friends who came tonight we always let you know at this point in the meeting you are so welcome to stay but we also know you've got to get ready for school so if you need to leave we also say feel free to do so at this time as well and thank you for coming to join us tonight okay okay
014i will continue with our superintendence report president reese members of the board you can see that we have a list of upcoming events and and normally this time of year we say oh and here come the 90 days of may and i'll tell you what we embrace the 90 days of may a little bit differently this year than we did we have a new appreciation for it because last year we couldn't do these things and so as our as our calendars begin to fill we have a new value for the ability to get together honor and accelerate uh celebrate although our calendars are beginning to fill so upcoming events obviously this weekend we have a governing board retreat here for our governing board and cabinet where we'll be talking about strategic upcoming strategic planning and
015all kinds of initiatives and and those kinds of things so that is the saturday for the month of april we have another meeting scheduled regular board meeting scheduled you'll see in may we begin with honoring and celebrating we'll begin with our teacher of the year breakfast which will be us it'll be different than we've celebrated but we're excited to be celebrating a very elegant event to celebrate our teachers of the year in the higley school district because we are so fortunate to have such amazing teachers we also are ready originally scheduled we on our regular calendar we had a meeting on may 12th this is going to be kind of a modified meeting it's going to start earlier on that day it's going to be a we have to officially do a public hearing for
016our budget and we have to do it before the 15th so we're going to have a quick meeting because on that night we also have awards nights and other things in addition though we needed to add a meeting a board meeting as we dive deep tonight we start beginning of a bond study and we're going to be learning some more information and gathering more information and this gives time uh from our april meetings to our ninth meeting or our may meetings to have additional information so may 19th will be our governing board meeting where we continue our deep dive into bond conversations so these are some big upcoming events meetings and and the beginning of a busy busy month and of course this this does not encompass all of the events and other things that
017are coming on our calendars which we'll talk more about at our retreat this weekend and that concludes the superintendent's report thank you all right we will go on to board comments any board comments okay we're going to request to speak this is reach any requests moving right along we will now go to our consent agenda and i move that we approve our consent agenda as it's presented second any questions or comments regarding our consent all right all those in favor aye aye motion carries 5-0 president reese members of the board i just wanted to take a second to just do a couple acknowledgements with the consent agenda tonight we recognize the talents of a few of our amazing employees who were who just confirmed appointments so we want to congratulate curtis carabin who is been
018placed into the role of the multimedia specialist i want to acknowledge mr tyler moore who has just been named as the cfo for the next school year and kristen nash who's currently been named as our assistant director of special education in addition we want to highlight that for this next year you have confirmed the interim associate superintendent position to be miss sherry richards and our interim executive director for elementary ed will be dr sue borzich so we are excited about the uh highlighting of our skills and abilities of our internal people in in some new roles and potential and positions for us in the district next year so thank you thank you we're excited to see the progress continue to move forward and thank you all right with that we'll go on to our information
019items for our fiscal year 21 monthly governing board finance report for our m o for february does anyone have any questions oh well all right thank you then we will go on to 7.2 which is our 2022 legislative report mr gatt thank you madam president members of the board this report that you find in your packet highlights those pieces of legislation they're selected that i thought were significant enough to present this evening yeah and they're up on the screen now so it's good the first one is school facilities board is moving under the department of administration that is a significant change for them will be a significant change for them i'm sure and i don't know i don't know how to predict whether that will be good or bad for school districts but we'll find
020out the reason that this legislation was proposed last year and this year i think is probably going to make it is that they didn't feel that the school facilities board was as efficient and allocating the funds you know that kind of stuff and so we're going to let the governor's office basically deal with that so we'll see how that comes out this one 11 39 is significant it's been signed by the governor it takes all three sections of proposition 301 you may remember there's a a base pay a performance pay in a menu now combines all of them together into one fund which will make it a heck of a lot easier for us to administer and give you more flexibility as to how you allocate those funds you won't be in those defined uh
021any longer there are some stipulations in that legislation especially relative to performance pay so we'll be furnishing you additional information as as we get the that bill back from the governor's office it basically says in general that you have to spend the money on teacher comp and student support services very broad much much broader than it was before and much less defined and just into individual boxes in terms of what your limit is so i think you'll enjoy a lot more flexibility with that uh senate bill 1165. that one um is is a reaction of course to copen and that the you know the state did not feel that you can conduct a reasonable or adequate teacher evaluation for the current school year given everything that's occurred so it's a one-year reprieve from doing an
022evaluation because of the circumstances senate bill 1433 that is one that you probably have heard about it's to um fund that portion of the year that the district might have spent in virtual learning and count its time the same as it would be if it were in person it's it's got an emergency clause which would obviously make it effective at the end of this year so that you could take advantage of that additional five percent funding uh we'll let you know as it progresses i'm not terribly optimistic about that one because it does not have support from the governor's office and the cost is in excess of 200 billion dollars so that's just where that one is and i know you would probably be interested in that one especially the next one senate bill 1683
023is in appropriations uh it enhances open enrollment it establishes a 10 million dollar fund for parents to apply for transportation assistance at the state level so it is another incentive another opportunity for parents in school choice not not surprising given the history of the legislature and then i thought we would cover the next slide which is some budget highlights the governor's budget has in it a 500 grant for free and reduced lunch to mitigate severe learning loss so you you find that not only are all of the covet funds kind of push our our ori into that direction which is free and reduced lunge but the governor is um is pushing for some of his funding uh i'm sure some of it is is grant or in origin federal in origin but it's to mitigate
024that severe learning law so there's lots and different funding sources out there that you will find including covet one two and three and now the governor's budget and so forth so all of that is focused on it seems primarily focused on free and reduced lunch the next one is the senate uh school facilities board receives 119 million for the year to allocate the districts and obviously we hope that we're a part of getting some of that money the reduction was restoration of capital you may remember that was previously reduced is now being restored for next year and that's the budget we presented to you was the restoration version that's 68 million dollars that the state will now bring back into the funding picture to adequately well actually to fully fund the original formula for capital
025outlay and there is a huge rollover 900 million dollars worth at the state level of funding back during the recession time that was not allocated to districts until the following fiscal year so that rollover is a debt that they have created by basically paying you the year following which you've earned it so they're going to restore that in pieces and the first down payment in his budget is 30 million dollars there's also a miscellaneous list 10 or so different things that he's proposing to spend money on to complete the 250 million dollar allocation and then inflation and enrollment growth and miscellaneous is 105. the state has to allocate as those formula funds grow because of enrollment growth adm growth they allocate typically fifty percent of the money another fifty percent is coming from property tax
026so that's it's an ongoing annual obligation the state has every year based upon the estimated growth in students statewide so that's the governor's version it totaled some 600 700 million dollars it's uh it's it's significant in that he's uh interested in allocating free and reduced lunch that's that's a first i think for for him but that seems to be what the focus is senate budget highlights um some of the same things they're spending 67 million to restore capital uh the same um bill that you saw earlier in bill form is now in the budget for restoration of reduced funding because of distance learning the school facilities board for 108 million that's somewhat close to the governor's and then some miscellaneous funds so i i think it's safe to summarize this into there's not going to
027be probably in the end a whole lot of funding for education i mean these are the major pieces of legislation these are the major sections of each of the senate and the governor's budget they're they're focused primarily on continuing the current funding structure they are not likely going to be focused on restoration of any funding for uh virtual learning that's going to be up to the districts and covet and other things in order to figure out how that works and now i'm happy to see the school facilities board at least they've got a piece of it but it will be a significant change i believe in terms of where they're reporting to so that whole application process where the priorities are what gets approved is now much different uh it's going to be very much
028controlled by the state now and then if you so if the board has any questions on any of these i'll be happy to try to answer them we will furnish to you at the end of the session which is probably the middle of may would be my guess because there's not anything significant there to hold them any longer we'll give you a final report thank you any questions for mr god thank you for covering that all right we are now going to go on to 7.3 which is our third review of the 2021-2022 capital outlay budget i believe that's going to be mr moore yep good evening president reese members of the board this is our third presentation of the capital outlay budget much like we did with the mno budget we are requesting we
029bring this and information and then later in the agenda we're going to request for tentative approval of the capital budget there we go so the highlights um again nothing has changed here um like mr again just mentioned in the legislative update um the governor and the senate had both projecting a fully restored district additional assistance and that is going to bring us back to um the rest restored to pre uh recession numbers this is back 0809 uh numbers funding numbers so again still inadequate for for districts and on an annual basis but we'll take whatever we can get second bullet here we have a designated funding source next year for a curriculum adoption and i believe as the the year moves on dr foley and her team will bring some more information on how that
030process is going and what adoption will be presenting the third bullet here a lot of this budget is based on our high budget balance carry forward that we've been carrying as a district as you as it notes here we are bringing over roughly a 16 million budget balance carry forward for reference our annual allocation in capital is 6 million so it's it's relatively high for a district this size so this budget does bring that budget balance down to about 8.6 million which we still feel is healthy and conservative in terms of a budget a capital budget and it leaves us room for the next few years to fund various items that we will present tonight the fourth bullet there we complete we have some allocations to complete the one-to-one student-to-device ratio this is a technology
031initiative that has been ongoing and we hope to complete that next year with this capital budget we've talked about in the mno budget the reduction from emino the amino transfer to capital so that is funding and we've been utilizing our emino budget to fund our lease payment our annual lease obligation is 4.4 million we are projecting to move some of that obligation to the capital budget so the difference there would be 1.5 million be funded from the capital budget next year and then still transfer 2.9 from the eminent budget we have a allocation in here that decentralizes some of the ffe requirements that are obligations that the district has historically purchased for schools and moved some of that budget down to the school level i've indirectly talked to a few principals and a lot of
032them are excited and can't wait for next year to get this underway and lastly we will continue to pursue any sfb funding and e-rate funding those are additional grant funds and other federal governmental grants that we are available to us based on applications and certain capital needs so we'll continue to pursue those but we are not projecting those into this into this budget so any grant funding we receive will be a benefit to the district in terms of budget balance which will benefit us in the prior next or excuse me the next fiscal year so nothing has changed on our on our summary here i'll touch on a few of the highlights of the big dollar amounts so on the first line there we have the district-wide usage we mentioned we previously mentioned the adjacent
033ways funding and that we do have some approval to move forward with spending some of that money down and not holding that as a budget set aside so that is positive news we have an unallocated amount of 1.5 million this is set aside for those emergencies those unknowns that come up during the year and this amount here will hopefully fund those and we don't anticipate in emergencies always but uh we do have a set aside you'll see the annual building uh lease payment again that's a 4.4 million obligation um mr gadwal will later expand on some plans that we do to reduce that out of our capital budget but right now our obligation annually is 4.4 million i mentioned the classroom technology that one-to-one device ratio cost is going to be roughly 1.7 million i
034believe there's three schools left to fulfill that need we have an annual technology budget of 000 these are our annual renewals our software microsoft our emails our financial software etc we have a major maintenance plan this is a going to be an annual obligation from the capital budget of roughly 1.7 million again these are our annual costs of the district capital needs ac repair hvc water heaters etc those are annual costs that the district incurs every year and this is a budget for that major projects we have set aside both 1.5 million out of the capital budget and 1.5 million out of the current bond for future or projected enrollment growth or projected classroom increases or wherever we may need those funds next fiscal year three million dollars should be an adequate amount to address
035any needs that may occur next year we don't know where those may be right now but we have that set aside as i mentioned with the ffe we we're allocating forty dollars per student to uh decentralize the small roughly 492 000 capital budget down to the school level um this is like i mentioned uh a breath of fresh air for first school principals and even athletic directors are going to get a portion of this so they're very excited to have an allocation at their school level and of course with direction with the the finance department and purchasing will give them some money to to purchase some of their capital needs for next year as we move down the list the warehouse has a small allocation for a forklift a new forklift they need for efficiency
036uses um in the warehouse they have a 14 or 15 year old forklift it's a little outdated and juan and his team are managing but we have a a plan now to kind of replace some of those outdated equipment needs and there's also an old copier in the the print shop that we are going to be replacing to help support our schools with some of their larger print shop jobs going forward we have a transportation budget roughly 40 000 for equipment upkeep this is an annual small equipment budget they would utilize to keep their vehicles up to speed you'll notice out of the bond we have 350 000 set aside this is in the bond current bond and i believe this is purchasing two buses next year of course we'll bring those back to you
037under consent once we get a quote and a plan for this you also see a small allocation for white fleet i don't know if you've seen our white fleet driving around but it is aging as well so we are addressing those needs with this allocation and we anticipate this being an annual allocation educational services again we are decentralizing a lot of our capital budget with some oversight from our department heads so we are having a library budget to replace some of those outdated library books even this budget can be used for instructional software so a lot of our districts are one-to-one so there may be online needs in terms of online text or instructional software that the libraries can utilize with those devices so this budget is for that purpose we have a hundred thousand
038dollars budget for musical instrument replacement you know as we mentioned we seems like the theme is a lot of our equipment is outdated and aging um so the plan of this budget is really to address those needs so i know that budget will go a long way and it's not sufficient but we again we hope this to be an annual allocation to bring our equipment up to speed as i mentioned there's an athletic equipment budget again that will be decentralized to the middle and high schools who have those athletic sports teams they have a little higher need in terms of equipment upkeep athletic equipment like uniforms etc like i mentioned the highlights there's a budget for curriculum and textbook adoption we set aside 2.9 million while we still working on a plan for that this
039budget can be rolled over year after year to address whether we do a phase approach a k through five an elementary or middle through high the budget yeah is sufficient or we can roll it over next year to address those needs so the higley online academy we're estimating around 55 000 a lot lower than what our current subscription is again that's based on student base and kind of estimated roughly what our enrollment will be for the higley online academy that will fluctuate once we find out some enrollment numbers but we do have a set aside there for that software that we plan on utilizing for hva lastly you'll see the carry forward of 8.6 million that's roughly 1.5 times our annual allocation so you'll notice we're bringing our overall capital budget down a little but
040we are still maintaining a healthy budget balance going forward into 22-23 again this this capital plan here is a very safe kind of structured budget we are addressing a lot of the needs that the district has but we are again maintaining a budget balance carry forward for future needs in 2223 and that is all i have is there any questions on this capital budget for next year president reiss mrs wilson i just want to thank you everything under on page 11 is so meaningful for our students to have the ten dollars for library books and per student and the fine arts and the athletic departments at the middle and high school i just think those are so important and to see those in our budget is so nice to see and i think i said
041it before but i'm just really excited that our librarians will see some maybe a little wiggle room in their budgets not relying so much on scholastic and so i just want to thank you for making sure that they're really well taken care of any other questions for mr moore i think you guys cover it pretty thoroughly so and that we've seen it a few times which is definitely helpful all right well thank you then we will go on to our 7.4 uh bond study so president reese members of the board before mr gad starts on this we have been on a financial journey together since october i believe we put together a calendar and we've been coming almost every meeting i think by the time we hit june each of you will probably you could
042be resident experts and and teach uh board members a thing or two about all kinds of funds from mno to capital to bond you've got we've been we have become well immersed in that and so as you know at our last meeting we tentatively approved our mno budget tonight one of the action items after our third review is to tentatively approve the capital budget which are budget-controlled funds but along the line we now move into another another category uh which is uh bond and how we use that and in our planning as you know since october we've also been on a journey where we've been learning about so where are we and where are we going what are our needs as far as growth in our students and our our facilities and where do we
043have space and what are our major projects and needs so that when we make decisions we are informed with all information to help us with with those decisions so tonight as we continue our our journey on budget and deep dive this is bond study start which will continue to build on each time just like we've done with everything else and we'll learn more through mr gad with our bond study so i will let him begin madam president board thank you dr foley um this will take a little time i think so um i hopefully i'll keep your attention and we'll move ahead and if you if you ask if you need to ask some questions feel free let me start out by saying you know bonds especially a bond is significant as this one requires
044a lot of planning and we've hopefully injected a lot of plan and you can see that in the capital budget you just saw and you see it in mmo and now you're going to see it in bond where we're trying to put together the best planning process we know of where we allocate the resources to the best of our ability in the right places and that's what this bond is intending to do it is a study packet for a possible bond election that you would be asked to call on june 9th that is up to you that would be in the form of a resolution uh creating a ballot question in november and in the dollar amount we have some flexibility there we are recommending a 95 million dollar bond amount that has the kind
045of detail in it that you can see here the duration is five years it could go a bit longer but that's the expenditure plan it could last six good last seven but when you get to the end of that process if you need to continue and you probably will some of these expenditures then that would be the time frame in which you would look at another bond and decide if that's what you want to do at that point so that's kind of the you know the process that you would have so let's let's begin by taking a look at page two um of the packet sometimes you get confused about i don't quite understand what relationships there are of different funds and if you think about what number two does is it it's got a
046it's got the three or three major sections really the first one is mno that's your day-to-day operations that will be all your salaries and benefits and you guys know that you've been there number two is the budget that mr moore just presented to you it tends to be short-term one-year capital needs funded by a formula just like mno is so you know as long as your needs don't exceed that short term process and it's one year at a time and you don't have really any major expenditures that are going to exceed the amount that's allocated to the formula fine most districts eventually get to the point where they have some major needs technology etc and i i have to have more funds in which to implement those plans in order to stay competitive uh with
047market changes and you know competitive with other districts especially in the choice environment that we have now you know there's lots of things in here that would benefit the district in a number of ways not the least of which of course would be our students need to have what's necessary to be successful and that leads us then to what kinds of expenditures plans do we have for major multi-year projects and that's what this bond is so it's it's a supplement it's an add-on to the short-term needs that you saw earlier and uh it's a five-year plan basically a five-year capital plan uh that's funded through uh bond sales saleopods page three is what are the reasons for a bond well as you know very well know that the state has reduced in the past annual
048capital funding that's the restoration subject we just talked about for a number of years the formula has been reduced by the state because they needed money to balance their budget and it comes from that 08 recessionary period and has now finally over a long period of time been restored but that meant that districts were denied that capital money over lots of years so you tend to fall back in whatever plan you might have had emphasis on technology is as you well know very very high and that consumes a lot of capital money to stay up with internet speeds and technology and devices and all kinds of things so the funded technology plan in my opinion probably requires at some point that the district established a fairly large budget in which to deal with the hardware
049and software of technology i don't know how else you keep up without with that without doing that energy conservation is there should be and is in this plant so is safety and security in this plan the district has some older buildings that you know you don't think of it sometimes that way but you know some of the schools are older than you might think and so they're going to need some major maintenance it does eliminate the reliance on mno for capital so it allows more money to stay in mmo as it should and you can enhance your pro your instructional programming that way it also rely it also provides uh uh eliminates the reliance of short-term capital to try to satisfy long-term needs you know you you have a budget that mr moore presented to
050you and instead of exhausting it with trying to meet some of these needs and and it doesn't really actually do it because it doesn't have enough money in it you eliminate that issue you eliminate all of that because you now have another funding source to deal with those major kinds of projects and this one happens to contain a possible outright purchase of one of the two schools that we have under lease agreement that is a significant portion of the debt service the district has obligated itself to by pursuing the purchase of one of those two schools they're both basically priced in the same way we expect to save the taxpayers 21 million dollars it does require 32 million as you will see within this packet to do that but there is a significant offset to
051that with the taxpayer savings the district would be normally would be spending for interest so uh this lease as you well know also runs out into 2052 it's extremely long period of time and so it probably needs to be out with as soon as you can with some more realistic approach as to how you get to ownership for those two schools so each of the two schools with curry if you if you tried to purchase them currently are about 32 million each in which to pay off the outstanding payment obligations that you have that's the principal amount it currently is containing another 21 million of interest on each school of that of that side so there's a total of 53 million dollars that's being paid from your debt service tax rate for each school over
052time to satisfy those lease requirements so the savings would be coming from interest on one school simply would the interest would obviously be cancelled we would we would generate an amount of money through the bond that would satisfy the remaining principal amount and we've tried to put it in here in a way that it doesn't cancel out lots of the other things that we should address in a bond for district needs it's about a third of the total of what's projected in here so it's it's a it's a start it's going to take a while if if you decide to approve this proposal it's going to take a while for the district to get bonding capacity in which to try to deal with the second school but at least you know we could we could
053push ahead maybe even get an agreement where the second school at some future date would have a buyout amount and and we can negotiate that potential so we'll see how that goes okay um some other budget highlights on slide four uh as i mentioned earlier it's got technology it's got building safety it's got security it's also got a section for major construction you may recall the demographic study that mr bremer presented to the district it does have some enrollment growth in it selected locations particularly high schools emphasized and so if classrooms are needed over the next five years whatever renovations might be required it's got a significant allocation in here to make that happen and uh and that's just i think we need to pursue always having adequate facilities for whatever number of students that
054we have and this would satisfy that and as you know that environment is somewhat unpredictable because school choice etc but if we do need additional classrooms the money is here in which to do that major maintenance that's a significant item the capital budget that you saw had some maintenance money in it it's not enough it needs to be more because we have 1.7 million square feet under so it's it's a lot of facilities we need to be more aggressive with painting with air conditioning replacement what kinds of things that people would expect normally for us to do especially those folks who have built you know voted for a bond in the past and would think that you would maintain whatever they invested their money in so that's what this plan does i will add that
055both the major construction projects and the major maintenance dr fowler will be making an in-depth presentation to you at the april 21st meeting so i won't spend a lot of time there but he'll be going over that in some detail it shifts the lease payments that we currently have for the two schools totally to bond so it not only eliminates the transfer of money for the one school that would not be purchased from mno but then eliminates it again from the capital budget of which we've moved money to so the end result of all of that is there is there are no other contributory budgets that would be sacrificing their budget capacity by paying for another lease it's all going to be in bond and that will give us more operational money every year give
056us more short-term capital money every year to do what those budgets are intended to do and i say that strongly intended to do rather than make sizable lease payments okay possible then purchase of one middle school is contained in the proposal on slide number five it also provides for a potential land purchase a site purchase this may not be necessary but if it is from my view of what i've seen in the district if you're going to have the flexibility of having a site a second site to build a school on the vacant land that i see is quickly being consumed you're going to have to do something with moving ahead on that subject or there won't be any subject to move ahead on it will be that we need to re-boundary that we need
057to add classrooms maybe create schools that are larger than we would like because there's no real viable option to do anything else the current site the district owns you will see especially on the 21st that it's not located ideally it's it's it's it's in a spot that potentially it may serve a bit a better purpose by doing something other than being a future school site but it is there and it is usable it's got a lot of commercial and freeway activity right around it it's not as ideal as a neighborhood school would be and so the intention here would be if we pursue this that the district would be able to find a site that might be more suitable for a school and then you could use that existing site for whatever other purpose you
058would want it could create a second school site if you needed it and and the shortcomings that we see i've talked to dr fowler about this several times is we don't have a lot of school capacity in the northern part of the district north of pagos and that's where the projected growth is at so this would help with that whole subject and and in my opinion if we don't pursue it now it's probably not going to be a very viable option in the future because you just can't find it if we pay no taxes on it we could turn around if it were let's say currently farmland and lease it back to the farmer and get some revenue from it so it's really the outright purchase amount and then you can get some revenue from
059it and you know in the future when if you do need it it's there for you to build on mr yad um there's a there's a new development going down south of queen creek and saseman area is there a school site do do we know the school site in that area it's legato it's a brand new development dr fowler i was told there's a school site there but i just have always wondered i know this is kind of a little bit off topic but is there a site there still [Music] president reese um vice president kaler i'm sorry um board member taylor sorry vice president wilson um i didn't get my program before the no i i it is true that legato is the subdivision and um way back many many years ago i think
060before the before the downturn um there was discussion with the district and legato about um setting land aside for the district to purchase um the district had an option to purchase land there the district has not acted on that um at all um it's again per mr gets conversation it's not a location right now really where we need a school so that's also part of the challenge when we've looked at the demographic study and the work that mr bremer had presented prior to covet and then he's done some work since then um we don't just really have to look out the window right here and we can see this is where all the growth is it's happening right right where we are and so that that's why i think the site at legato um there
061still may be land there but that's not something that at this point the district's been pursuing and i just didn't want another kind of school to go in that spot i guess okay thank you that answered my question thank you you know i can't emphasize enough here that if you want that flexibility i think it's important to pursue it as soon as possible or you won't have that option to pursue because something will be built on it and that will be that will be the end of that so i'm going to do it now is the time to do it okay um we are proposing with this 95 billion dollar bond 75 percent of the current district's remaining bonding capacity bonding capacity there is a formula that limits how much debt you could issue and
062this would take us up to 75 percent of the remaining amount there still would be some 30 million dollars of remaining capacity to add to the capacity that you will generate over time annually through the formula as as the district grows with property values including building the capacity of the district to bond grows with it so over the next five or six years there should be enough growth that you would be in a position to have another bond and and could be in the magnitude of what we are talking about here but in the meantime you know that's not going to be likely just because of the cost of bonds and because the available capacity needs to rebuild itself if you actually do this proposal here the tax implication is pretty minor we currently have
063a tax rate of 28 cents total per 100 of assessed value this bond is projected to add 14 cents to that so it's it's very minimal when you think of a seven dollar rate and you're adding 14 cents not not a major concern i would not think and the next bond you know mr moore and i have talked about this a couple of times because the debt service that the district will be doing over time will start to decline you will be paying off debt and the tax rate will be going down according to that so when you start into that significant decline you want to think about do i allow the tax rate to decline and then later on all of a sudden increase it because i need another bond so as it declines
064you might want to consider that's the point in time where i have another bond so it stays flat the taxpayers can predict what their tax bill is because it doesn't change and you get the advantage of having that monies then in that second bond and mr warren i've talked about 2829 somewhere maybe in the 30 but i mean right in there is where we think that you would have enough body capacity comparable to this to move ahead and that might be where you deal with the second lease so that's a possibility okay uh slide number six are some definitions that you'll see later on so the technology safety and security the technology of course you'll see the details of that plan basically device one-to-one refreshing existing computers all of those things that you would expect
065to do to keep up with those kinds of of technology standards and there's some attention to district safety and security especially it does have in a significant number of new cameras so that would help you know with that subject transportation it has over the five year period a pretty aggressive replacement schedule for buses and white fleet yeah you should be in relatively good shape if we're able to follow this schedule it basically retires district buses at somewhere in the 12-year age range that's pretty good that's a pretty good schedule for most people and support vehicles we have a standard of 10 years or 100 000 miles and it meets that standard so you're replacing roughly four or five buses a year and a same number of support vehicles for the next five years that's contained
066within the bond the uh the lease payments i have talked about mr dad i will simply mention there that oh i'm sorry what is the normal life of a bus the life of a bus like you said it was a 12-year turnaround i think that might be somebody else's question i think 20 to 25 years okay for parts after that the difficulty is not so much that the bus is worn out that you can't get parts for it okay i was just wondering because i wasn't for sure i'm not schooled in that area so i wasn't sure how that was true what the normal life capacity of that is thank you okay we've talked about lease and that will be the subject of an executive discussion that we're scheduling for april 21st because it's got
067significant real estate implications and we need to talk about those and then land purchase already talked about in debt in detail in the northern part of the district major maintenance dr fowler along with major projects we'll give you an in-depth uh review of those and then we have a contingency that's contained in the packet so moving on to slide number seven this is categorically how we would recommend spending the entire bond amount over the five-year period and you see down the left-hand side some major headings that gets you kind of oriented to what the total is and then on the far right-hand side you see a percentage and those percentage amounts are the amount that each of these major categories occupies of the total so if you go down that right-hand side 16 of it
068is technology 33 percent of it are the leases we talked about 28 is major projects uh 11 is maintenance so it gives you some idea of how much goes to each one of those purposes and it's it's pretty basic i mean it goes to those things that you would expect it to go to that are long-term multi-year capital needs for the district i don't think we've left anything out of the list and then we've just flattened that expenditure plan across the five years we are also containing the contingency and so this would be the plan that we would propose to you over the next five years slide eight is the technology plan in detail there's a part one and a part two there's 15.5 million over the five years there's about 1.8 million annually of
069that 15.5 and there's about 3 million thereabouts each year for part 2. part one tends to be more of a long-term maintenance you know maintenance type budget for technology maintaining the the internet structure buying printers feature laptops projectors servers those things that need to be replaced or added to over time and part two is a straight refreshment replacement of student use computers maintaining the one-to-one ratio so that the students have the latest technology that you generally would expect them to have and it's it's guaranteed over a five year period okay looks like transportation as i mentioned earlier this is this is one where it assures you that that bus fleet will stay current and it assures you that there will be some attention paid to white fleet vans trucks that we have out there that
070we do need to maintain and make sure they're safe we have some a lot of student use of some of those vans as you know especially at high schools so it's it's important that we keep those vehicles in some sort of shape and that means we need to have a replacement schedule so this is four to five each of those types of equipment over the next five four to five full-size buses four to five vans trucks whatever that mix turns out to be the replacement standard is at the bottom and that's where basically the yellow feet every 20 years or 250 000 miles i don't think we have to worry about 250 000 miles but if if if you wouldn't ever want i wouldn't think the fleet to go past or any individual muscle within
071the fleet to go past 20 years it's it's just just too long for for um adequate maintenance and then we put if we put a limit on white fleet that it's not those are not more than 10 years old okay uh the next slide is police there are two schools coulee and scotland that have this long term lease each payment each year's payment is 4.4 for both of them that's contained then in this capital budget or one of that one of those lease schedules 11 million would be taken and added to the the at least schedule would take the 22 million and add 10 to it from the total and that would be applied then to that purchase of one school for 32 million is to set aside so this removes the lease payments from
072capital transfers lows to bond and there's a an annualized amount then for continuing lease inside bond if one middle school is purchased the district would save an estimated 21.7 million dollars in interest savings through discontinuing one of the two leases and if the purchase did not occur for whatever reason then the 10 million that you see up above would be reassigned to other capital needs we would retain the 22 million in order to continue the current lease payment schedule mr cad i don't mean to put you on the spot here and if you don't know i get it because just as we were going through this essentially what i'm looking at is right now our if it were to play out for our lease for one school um we're looking at 53 million-ish dollars yeah
073i don't recall what and i know you have a vast experience so what would typically a school of that nature cost do you know well i can guess it i can speculate usually my guesses are not too far off this was done in 2013. so if you think back to what the prices would be in 2013 i i would guess we're talking 200 a square foot these are middle schools we're probably in the neighborhood of 90 200 000 square feet electrical or something like that how much 120 okay so 120 times 200 whatever that would be my calculator but that that sounds like around i would suspicion around 20 to 25 million 120 000 square feet times 200 and i'm high with the 200 that's 24 million and i'm high with the 200. so you
074probably could have it have built either one for 20 million dollars and this is this 32 million right now isn't even talking about what we have paid right up to this point right so significantly significantly significantly yeah overpaid yeah okay what would have cost you 20 million on and out right now is way 60 70 million dollars if you took out the currently schedule all the way to 2052 and you included principal interest those schools are costing you three times to what you would have paid on an outright purchase basis so what it would cost us to run the whole lease and what even more we could have had two yeah we would have paid for two on its own ours yeah saved our tax payers a ton of money yeah i really think that
075it should be important for the district to look at the long term here and and try to save money wherever you can i mean decision was made at some point to do leases and that's a done deal but you don't have to obligate the taxpayers to uh to a schedule of payments that just doesn't make any sense no that i think that's great that i mean we have an opportunity to to save money um as you've presented it so i it just popped into my head as we were talking about this and i'm adding those numbers and i'm like wait that's one that's not even both and um so thank you for watching giving me your rough guess yes mr fowler just excuse the interruption i i got the exact number so i was a
076little bit off but it's actually the actual square footage for each middle school and they're identical 140 000 and 502 square feet so what would the total be a little bit more than 120. so the space for the middle schools is about 120 and then the space where the preschools are is about 20 000. so that's a hundred and forty thousand five hundred and two square feet for each facility what would that cost at 200 a square foot because yeah so 26 million let's round up or ish ish you can put an ish on a millions so yeah and i and i think that if you really worked at you know bidding and some other things you could probably get that down to close to 20 uh you know depending upon what you want to
077do but i mean that's the ballpark or the neighborhood you would be in back in 2013. okay just as a comparison based on where we're at president oh sorry we're all calling her at the same time go ahead i was just going to say that this isn't common practice to lease schools is this mr gad most people we would just buy it with our bond money if that was we would build the school with our bond money correct using a very low interest rate in the form of a bond to do an outright purchase and and it's by god now but we can try to make it better for the future so thank you for bringing that to our attention that it is a savings even though it's hard to look at it that way
078thank you president reese members of the board one of the things that that our administration began back when we started building this calendar was coming to you with we're going to do some fact-finding and get some information and as you know we've been keeping you updated in status reports that we have been working with attorneys to work with the foundation here to determine if this was a possibility and again there's a lot of work that needs to to be refined but if it is we felt we should explore all options when we make this decision so that we could be diligent and thoughtful with all options what are our needs what are our growths what we have some uniquenesses in hindi that we are going to need to financially figure out how to do so
079hence when we meet at our next board meeting on the 21st we will go into an executive session with those attorneys with stifl so that we can ask very specific things in that about the option and what could that include and do we want to do that hence why we've got a new photo up there that we'll look at more closely that is an aerial of what does higley boundaries look like right now so that we can make some decisions with all the information the most up to date with what we know at this time so fortunately we have been working all along to get some information we'll be able to talk to them ask specific questions learn more about this figure out what more we need to know so that we have explored every
080option as a district as thoroughly as possible for these decisions and so we are summarizing a big picture here but we will be able to go deep and and into the details um can i ask you a quick question uh president um so did i hear you say that the 32 was negotiated or was that never mentioned did i miss her that the lender for having built the schools and then the leaseholder will there's an extensive agreement a really extensive agreement like this and some provisions within there if we're going to purchase outright one of the schools requires us to know what direction you want us to pursue because it has provisions all over it i mean they're unique and so anyway um that's the purpose of the executive session is to show you what
081those things are and ask you to help us determine where to go with that eliminates my second question thank you mrs anderson that was the principal amount like when you ask if it was negotiated that's what's the principal amount it's what he yeah yeah it's it's basically a termination of the current payment schedule and ownership of one of the schools with that 32 million but then there are other things in there that we're i'm sure we're going to have to talk about with the lender and that's where that's where your direction is needed it's clear what the principal amount is we've got a schedule and you'll be able to work with our attorney who has been working with their attorney so that we can understand um and determine so so what and now what okay
082um slide number 11. this is goes back to i don't think i'll spend any time here goes back to that school site that i mentioned that we might pursue it's a a 15 acre and that would give you an adequate amount of acreage for an elementary school and then major maintenance you can see the categories that are anticipated to spend money on they're pretty much those every year that you would contemplate you need money to keep up with roughing and eating cooling and and painting etc they're here and and this really is a schedule i think that very adequately addresses you know school appearance and school maintenance and all of those things that taxpayers would have expected us to have done automatically president reece dr foley i just had a quick question i've read that
083um a couple of the home builders recently are putting everything on hold because the cost has went up so high for different things does this play into that at all i've heard plywood went up roughly 10 times what it was before so i don't know if this accounts for that or if we need to make some contingency fund for that and that might be more of a dr fowler but dr foley i'll let you pass that out president reese vice president wilson yes and you'll notice that one of the things is is a contingency plan in there because that has actually been one of the things that we've talked about was even the purchase of land or construction that that that is something that's only continued to rise and when you're when you're anticipating a
084budget today for something that you're going to construct upon two and three years down the road you've got a placeholder but that that may not be enough hence we do have that contingency identified as part of that and obviously we'd have to prioritize at that time if it extended upon or beyond a contingency but that is a very excellent point in a very real that's one of the real very real things that we will deal with in this is you've got your best plan for what you will do and how you will how you might attack that but what the cost will be at that point is obviously an unknown this provides for a 20 percent contingency you know you just do the best you can with what you think is going to happen it
085could be very short i mean construction is simply so difficult to estimate now it changes overnight and i think that we've all lived through this before and how things ended up were very different and now we're here again so it's kind of funny how history repeats itself and we'll just watch and see yeah yeah good question and that can bring it out see that contingency ought to be adequate for some period of time maybe a year or two then it may become inadequate and there's other contingencies in here there's two other ones that will could come into play if you needed them to make sure that you can complete this list and this list is really important because it it's the appearance of our schools especially in a choice environment and it's an obligation we
086have i think to taxpayers to make sure that we're maintaining their investment and that's what this plan needs to do and mr gas just to clarify they don't have to stick to this exact dollar amount per year under the bond correct it's just the dollar amount for this is allocated it's up to us how we spend it but it's still great to see kind of a chart on how that could be done because i think in the past we just kind of had a dollar amount and then we just kind of plucked when we need it wasn't so clearly stated and so i appreciate the dates and a plan by the year okay moving on to slide 13. again this will be this will be a program that uh dr fowler has some details for
087you at the on the 21st but as you can see it's it's kind of categorized in a major way for additions it's it's enrollment driven facility standards if we find that there are needs somewhere that we need to address renovations especially if we can do some renovations that would help us with more capacity or we need some remodeling done in some spaces that's what that's all about and then there's also a contingency here uh of another 2.7 million so that could be something we could shift easily over to the maintenance category if we needed it and so there's plenty of opportunity to find some other funds in here to be able to accomplish whatever we thought the original plan should be and then on the last slide it lists for you all of the contingencies
088that are contained in this bond package there's 8.7 million dollars spread across three categories it's 9.2 percent of the total which seems i think in the scheme of things about 10 to be you know a reasonable number to have and we have not only the 3.5 million as an overall then you've already seen the 2.4 and you've seen the 2.7 so in addition to those two there is an overall contingency for every subject in here whether it be technology or whatever of three and a half and so there's a total 8.7 million so that i think that puts you in a good place to be able to deal with whatever you might have to deal with in the future and then the last page is a calendar we want you to be especially aware of
089the the due dates that we have this is the first review of the bond this evening and we need to hear from you if you need some more information that's what we're here to try to provide for you over this next couple of months the april 21st is a second review and that also will contain that executive session where we can discuss real estate and may 19th will be the third review again with an executive session if necessary it may not be dependent upon how our discussions progress with the lease the lender and then june 9th that would be the date in which we would have to ask you do you want to proceed with this package and have an election in november as a form of approving of a resolution so i really think
090the packet is balanced again you know balance to the needs the district really has long term i think everything generally speaking is addressed in here in some way if it's a really major capital expenditure that we need to do and so um you know i think it's a good plan anyway any questions you or the board might have try to answer nope i think we're good so thank you for the details and um that this is just our first review of it so we have plenty of time to review and talk and come up with questions so yes i'd just like to say thank you thank you for taking the time to explain it very simply and very detailed that way we feel comfortable and then the community is more understanding i appreciate it all
091the work thank you thank you all right well with that we will move on to our action items i move that we approve the tentative or i mean that we tentatively approve the proposed fiscal year 2021 2022 capital outlay budget second is that you i just heard a little all right and dr foley just going to take a moment because we did have questions that came up when we tentatively approved our m o i've significantly received less so this is wonderful that this year to be able to match that same percentage and you know i think we can all acknowledge that our classified five percent is a lot different for them than five percent for our certified um so the fact that we were able to get to that same number was wonderful even though
092the calculation overall is is in terms of budget impact very different i make that miss president reese i'm very excited to approve this tonight tentatively if everyone approves this is really exciting for me to see that number be the same i know mr glover he spoke of this a lot to make sure that we were honoring everyone when he was here at that seat but i'm really excited to see this and i'm just thankful dr foley and to your whole staff that we could make it the same and we can honor those people and again just it's good to be higley right now this is a good moment for us and i know as we continue to hear and it it breaks my heart what's happening around us i'm just so thankful for this leadership
093and this board and our students and our teachers that have worked so hard this year to get where we are so again it's good to be higley tonight yes very well said and it's been very important to try and like you said we we acknowledge five percent is not the same for each class of employee but at least um we're able to offer the same percentage so thank you everyone's worked really hard so it makes it makes this one much better so i appreciate that yes for sure all right anyone else have any questions or comments nope all those in favor aye aye aye that motion carries five zero all right for future agenda items oh and miss martens if i recall when i read that these are um to go out electronically uh is
094it tomorrow or friday no um president reese they're going to go out electronically on monday april 12th so um it's a a little bit different and challenging for this particular employee group because the system that we do use electronically they typically don't access very often so we need a little bit more time in terms of the preparation but as i've said before our wonderful team of hr individuals in payroll have done such a great job to where i don't know if i've said it in this arena but i felt as though our certified contracts went out fairly smoothly in our administrative ones so i'm crossing my fingers for the same thing here and i think the ladies in the department would have probably argued a little differently but i said you know with everything new
095there's some hiccups but overall um really great job perfect thank you so that can be expected to be out rolled out electronically come monday thank you all right for future agenda items we have um quite a list and any thing we want to add i'm sure we'll after our retreat on saturday there'll be some other different focuses i think so all right so we'll leave this as there as it is and with that uh i move that we adjourn second all those in favor aye aye motion passes five zero have a good evening you