001Uh Thank you. Okay, good evening and welcome to the Elma Community School Preliminary Budget Hearing on Monday, June 22nd of 2026. We'll call this meeting to order at 5:30 p.m. Please rise for the Pledge of Allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Mr. Burrows, will you do roll call, please? >> Sure. Mr. Cherius? >> Absent. >> Mr. Burrows is here. Mr. Wade? >> Here. >> Mr. Eckert? >> Absent. >> Mr. Burns? >> Here. >> Ms. Ackley? >> Here. >> Ms. Smith? >> Here. >> Good. Five members present. >> Thank you. And that will bring us to adoption of agenda. And this is on help me out. Any additions?
002>> No additions. >> Deletions? >> Uh we're going to delete number five at this time for we'll save that for the official board uh budget hearing for official meeting. We'll answer that at the budget. >> Any amendments? >> No. >> Okay, that will bring you a budget presentation for 2025-2026 and 2026-2027. And number two, we'll see Mary Ellen our administrator of finance at this time. She will be presenting. >> Good evening. I'd like to present to you a proposed 25-26 amended budget and a 26-27 fiscal year budget for Almont Community School District. >> [snorts] >> I like to present first of all our historical fund balance and just to reflect on the trend that we have been on in our in our history. I wanted to point out again our budget goals. Our budget is
003our numeric expression of our vision and priorities. Where we like to um establish sustainability, retention, finding our district sweet spot. Attrition management and identify challenges and impact stress on the budget. In regards to finding our district sweet spot, we we strive to find a good teacher to student ratio. Our cash flow to represent no state aid um no state borrowing, a healthy fund balance, etc. Attrition management, we like to focus on a workforce balance, matching our enrollment to staffing. And to identify challenges, we it's an ongoing effort. We we're seeing an increase in mental health needs and special education, discipline, and substitute staffing and as well as staffing in general. We like to focus on the five budget pillars. Those five pillars are the foundation allowance, the pupil count and student enrollment, wage and wage
004increases, state retirement contributions, and medical insurance increase. These tend to be the five um the staples that that change and and impact our budget every year. This [snorts] year for our foundation allowance, we are uh estimating for fiscal year '27 an increase of $250 per pupil to a total of $10,300 per pupil. Um for budget purposes, we are not estimating any change in our student enrollment. Um and I wanted to uh make everyone aware that there is still talk in the governor house and senate that um they might uh entertain a three-year blend way of doing a state membership versus the current blend that they're using now. Um as far as wage increases, uh we used con- uh the wages contract uh as negotiated as of June 16th uh as the AEA includes uh steps
005per contract language. Uh state retirement contributions, uh MPSERS is expecting to go uh a little down to 27.51% as it was 29.91% currently and UAL at 13.51% which it was 15.02% However, uh we do we are experiencing a mental I'm sorry, a medical insurance increase. Um the per PA 152, there's a hard cap of 5% increase this year. For our fiscal year '27 budget overview of assumptions, um they are as follows. We are assuming the non-homestead millage will pass in August, which is approximately $1.7 million. That our sinking fund proposal will pass, which will take stress off maintenance and or our technology budget. Our utilities are of course increasing, um estimating a 25% water and sewer, 7% waste and trash, 10% general liability insurance, and 15% heating cost increase. Our contracted services, um our contractual
006increases are also included for custodial, HVAC maintenance, transportation, grounds maintenance, etc. And we did take a conservative uh revenue estimate as per enrollment blend and per pupil allowance. I'd like to just um get to the bottom line right off the bat, um is that in our 24-25 actual audited financial statements, we um ended at a 15.35% fund balance uh as a percentage of revenues. Our proposed fiscal year 26 budget amendment shows a 14. 53% and our proposed fiscal year 27 budget, we're proposing 14.7%, which the uh fiscal year 27 proposed um is a decrease from our fiscal year 25 actual of 0.64%, so it's under 1%. Our 26-27 budget uh our general assumptions again, the state aid membership blend, um [snorts] we're not estimating any change. Um we we believe that's due to our second
007GSRP classroom that we were able to um to to have this year um establishing new kindergarteners to replace the high school seniors that are leaving. Our fall 2025 certified number was 1354.33 and our spring 2026 certified was 1338.34. And again, I wanted to emphasize that possible 3-year blend in this year's budget proposal by the state. Our foundational allowance again, the actual in fiscal year 25-26 $10,050. And we are at the estimate that we use for fiscal year 26-27 is $10,300. And the revenue funding estimates are all assumptions that agree to the governor, house, and senate. [clears throat] Other cost increases such as substitute staff, our health cap, utilities cost, and inflation. Our property and casualty insurance increased by 10% and went from $137,000 to $150,000. And as far as revenue, we did add a four
008a 4% increase in operating property tax collection. More budget assumptions, the wages again assumptions used as per contract agreements as negotiated. For example, the AEA steps as per contractual language. Technology investment of $178,500 and our much needed Wi-Fi refresh of $82,000. Our estimate average 5% increase for eligible teachers and staff. And I just wanted to remind everyone that the budget includes estimates and projections that actual results will vary. >> [snorts] >> And as I say almost every time that things change every day in this budget world. As far as revenue, um like I said, we are planning on keeping the enrollment number the same as per the blended count that we are paid to by the state. Our revenue sources, I just wanted to highlight that 87% are from from state funded, 10% are from
009federal. And for a snapshot of our revenue, here we have the past 3 years of our audited financial statements. Um our proposed fiscal year 26 budget revenue, um so the 25 audited revenue was 18,360 327,000. The proposed fiscal year 26 budget at 19,391,803. And the proposed fiscal year 27 budget revenue of 19,686,628. Which is a 1.5% increase. Expenses, >> [snorts] >> um so we wanted to reflect that 61% of our expenses is instruction. 38% is in support. And here's a snapshot of our expenditures comparison from fiscal year 25, 26, and our projected 27. And this is where we see if you have any questions. >> This is >> Mr. Brown >> Um Yeah, you and maybe Mr. Wait, go to this one. So, we lost 16 students between the fall and spring. >> Mhm. >>
010Um [clears throat] Was that [snorts] just because they weren't available for count or did we actually lose >> That's actually a lot. >> So, where were those which ones? >> You asked how many >> Like we started the year at 1354. >> the students dropped. And then I referred to Joe. I would say those are transfers out. >> They were trans- they were >> Transfers out and that was the Right. >> Okay. >> [snorts] >> I think we had a question. I [snorts] I I know I'm going to vote no on that because I just You guys both have looked at the term of all year and it's just a lot that I dropped for somebody to say it for a moment. Is there anything you can do to remind any of your million people?
011>> I'll have to see how this comes up. >> There's no backup. >> I know. >> I sent my email because I had to have a meeting next week where we would we would have to pass on that because we ran out of time. >> Mr. Did you have her >> What? She just pounded her. We went back and forth about the meeting that we had earlier today and then the student I'm going to write a preferred email to that person. >> Yeah, I'm trying to I do have a question, Mr. Cole, you're getting us together. Um so, and I I've never heard this before, but so TAC can now be used for sending home. Is that like a new Michigan thing? >> Well, Mrs. Ryan advised us that Michigan did change that now we
012can incorporate technology funds >> Okay. >> on new things to our sinking fund. >> Okay. >> So, that is one of the things that that he laid in last meeting hours and that is something that we feel like might be something we could shift, you know, to incorporate into our sinking fund ask. Not 100% yet. I'm not sure if that is something we are going to consider and we just got that information. >> Uh specifically, so are there Is that this is the first time I'm hearing of it, too. So, like are there no restraint Like it doesn't have to be part of the building it can be anything technology? Just Yeah, okay. >> May I Miss Miss Bad, please add to that if we were to use sinking funds for that purpose, it will
013be have to have the right wording in the proposal on the ballot that it be used for technology. >> With legal >> wording. >> Should be legal wording. >> Legal, yeah. >> Looks good for the moment. I'm sure Mr. Reed's checking it out. >> I can tell he is. I can feel that we are >> So, we kept in technology. We paused um glycol. >> Yes. >> Um What are the changes that we made that they would need to be aware of or they wouldn't? >> And in regard to the glycol, Mrs. Ryan advised us in the meeting it was also incorporation of that. So, um I'm not saying that we are not going to do that if we decide to do anything and one of our board members um is going to call and
014schedule a meeting with him. >> Glad I'm part of it. >> Yeah, no, I'll just use refreshing. Um so, instead of changing to the assistant principal to split, we kept the um as is with the combined role and the the assistant to the director um currently. Um that would be something that we would look to um providing a surplus to to go through and and work towards a split. Um we also talked about the um in terms of the glycol that this is the building that had the the major issue, so that we were going to do something we looked to do this one first. After that would be something the the four um as we move into that time frame. Um >> You know, that's something that can also be included in the sinking
015fund. >> Correct. >> rather than the general budget. >> How much of the sinking fund are we looking to factor in for the next three technology and all of that up to um So, for technology, we are we also have that in our budget for that fund. Um we're not sure um I know the winter fund was working items to determine if something's happening but she brings that would be guiding me and we were trying to get a little bit more information right now but um she's not available this week to get back to each other. So, um we're working on cleaning that a little bit more and then get a little bit better graphic when we go back. And is that makes sense to you? >> Um yes, although we have a attentive number
016out there that we're looking at 95,000 I think it was changed for helping to grade sure those two grade levels, third and grade that we were given an update 95,000 for those two grade levels to be >> Just those two books. >> That's for the combo three file shots. >> Yeah, I just Yeah, so we need to find >> Um that was Is that that I believe that was leasing Kathy. Does that make clear on the >> on the quote to be called >> Uh no, I'm sorry. I thought Brandon had given or I actually think Holly >> I'm sorry. >> You're talking about the two grade levels. I'm I believe that was to outright purchase them. You're talking about the the two grade levels. >> It was even 95,000. >> 95,000 to purchase those
017two grade levels. Yeah. >> In regards to the the sinking fund and the amount of money in that that stuff that's going to be in the next month. We got to go through and in the July meeting and board session and stuff to select by that details to know what we want. August 11th if I believe is the date for the the the submission to the clerk. >> Yeah, you have a quick turnaround time after the August 4th election. >> The only The only thing that it stood out to me was there was an increase in the elementary funding. Is that associated with the implementation of CKLA? >> Actually it is um to match the revenue from title. We had a carryover of title funds um and there's projected to be another title over. So
018those revenues have to match expenses. >> Uh Kathy uh just so I had this So we did the CKLA CKLA >> Yeah. >> grant, right? Um and we got everything we expected >> Mhm. >> and we had it. >> Mhm. >> If we didn't go forward with all grades, do we have to like return some of that? And we positively had to if the technology is available for them to go on that. >> We purchased a 3-year contract with that with those uh with that grant. >> Right. >> Um and I'm not to my knowledge, I believe it was all rolled out and the response has been very positive. >> Right. Okay. >> Um so I believe the plan is to go forward. However, new elementary principal and >> That's why I asked. >> The
019CKLA adopted it. So >> Mhm. >> Right. >> Yeah, we're moving forward with the CKLA. >> Yeah. >> Regardless, do we have technology to run it on? >> Are you asking if the Chromebooks like if um they're working or not Chromebooks or something? >> Correct. >> Okay. >> I want to make sure we understand the direction of the >> Yeah, cuz like I I I mean like I've been watch dogging and I've been to the buildings and like you'll you'll you go into a classroom as you're a watch dog cuz like you do flashcards and stuff and like half of a third grade class will be sitting along the wall with their Chromebooks plugged into the wall because they can't take them back to the desk. So like the teachers are trying to instruct with
020nine kids along the wall and then 11 kids that have functioning enough battery that they're at their desks. And so like if I don't understand totally cuz CKLA went through so quickly because of the grant, uh what is cased computer-wise to uh make that function well. Cuz I know that the big talk in the uh OP has been that they have to rearrange their classrooms from pods to I believe it was rows now. Um so like they had to completely restructure their classes and the kids can't be structured that way because we can't get power to their computers and everything like that. Messes up all of our school learning. So I do have I mean it's scheduled um this week and with the principal and I will get some clarification on the material. As far
021as material, so we have both. There's both and hard copy. >> Yeah, yeah. >> You know, hard copy material. >> Okay. >> So, I know what you're asking basically basically are they going to be able to teach and they don't have access, right? >> Like Like are they going to be able to like teach well, I guess. I know our teachers are phenomenal and they'll be able to teach, right? You know, it's just like how well they >> But with the program doing fidelity, so I can I can share it with principals and all. >> Okay. >> So, you can put a little bit more light to that. Uh on this side for me. So, we can work through this and we can follow those things. >> Okay. Okay. >> I think Kathy answered a
022lot of mine on Thursday at the Zoom call. And then I think um what we need to you know, we need to move forward with the budget that we have in place and then um what to do from possible amendment in like July and or August. Um so that we can make any changes after we And just so everybody is aware, what we're still waiting for the state is I and they're going to um have their budget in November. Something for everybody to know up here. >> And Mrs. Smith, I'd like to remind everyone that last year that didn't pass till October 7th. >> I still got one more Since Chromebooks seems to be the hot topic, I got one more Chromebook question. Um so, if we're if it's in the budget now, but we're
023not sure what we're doing and then we try to make this budget amendment on a July timetable, are we able to get Chromebooks by start of school? That seems like a very quick turnaround for a couple hundred Chromebooks. >> I mean, it's going to depend I mean it's going to depend on the time of year. The ones that we were searching for just to give you an idea, I had I was able to speak with Mr. Allen and connect with Mr. Marklin and for the two grade levels >> Yeah. >> it's going to be tight even tight for what that would mean in getting those materials in. So that's a a great question depending on the timing and supply and demand and what we're going to be able to get through the door. All at
024once, how about that? >> Right. Mrs. Smith, if we're including that in the budget now, then we could go ahead and get that very intro. >> Yeah, but if it's in the if it's in the budget now and we want to add them then >> middle school grades >> and then two grades and whatever, yeah. I am a little bit confused on like the way it was kind of going back and forth between using and buying and so I think I need a little more clarity on that. >> Okay. >> We were buying and then it was for 95,000 but only the two grades and then >> to buy to buy grade level the two grade >> What does that mean for I mean what's the >> Yeah, we're buying them. >> Yeah. >> Oh.
025>> So >> Even if it's in the budget and we know that we need those two grades for sure. I don't know what's our >> And then because of the size of the purchase you would have to approve it at our board meeting to for us to have purchased them as well as purchase them. >> Sure. >> Oh, yeah. Yeah. Yeah. >> That's what I was worried about the time frame because we're like 30 days from now which is when we're starting to think. >> Okay. >> Yeah. >> Okay, good. >> How old are you from the time I mean when was the last time you purchased them and if you purchased them all at once why are we two grades in dire need versus everybody if we purchased them all at the same time?
026I need to look at the I don't know if Kathy was able to provide us with grade levels when she sent us that information. I have to look at it. He does have them tiered. Um Mr. Van Cleave so like the most dire was I want to say then the third and fourth are the oldest textbooks. So we kind of have that one. I don't believe that there was a little bit of a of a phase but pretty close within you know a year or two and that's why I kind of like everything to do with that refresh but starting with the most dire needs of grade levels is very important. >> Any other question? >> How long does I mean how long do they last? >> Like four years. I want to say that's
027kind of the the sweet spot if you will around four years and then you start technology and the handling of of the computers as well that it's it's having problems screen issues. >> And we purchased those. >> Both last ones we purchased yeah that's correct. >> Any other question? Anything else from the board? Questions and comments from the public. Anybody else from the public or audience like to be recognized at this time? >> Just a side Just a Just to make sure that this is also stated that that our official budget hearing will be on Tuesday June 30th at 5:30 here in the high school auditorium and a special meeting will follow on Tuesday June 30th at 6:15. >> Yeah no problem. >> This is the >> Mr. Brown. >> I move the Board of
028Education and the preliminary budget hearing at 5:57 p.m. >> Support. >> Motion is supported. Any discussion? All in favor? >> Aye. >> Any opposed? Motion carried. Hey you're welcome.