001foreign good evening and welcome to this working session of the Lakeville Area Schools Board of Education for attendance purposes we'll have everyone go around and say your name and your role and we'll get this meeting started so my name is Kim Baker I'm board chair Judy Kelleher Board of Education Brenda Albrecht executive director of administrative Services Bill humgan Executive Director of Business Services Terry Lynn School Board Dave Heyman executive director of student services Carly Anderson School Board David Anderson School Board Emily McDonald assistant superintendent thank you all right so our first item on the agenda tonight is the operating Levy review and the renewal and the election survey review and recommendation is that you Bill yep what's the three of us it's not just oh okay all right slide form okay yes so tonight yes
002we have Peter Leatherman here from our survey we did in Maine to give you the results of that follow-up survey that we did here this spring um so of course we'll talk about the background the uh we're going to review the community brush fire survey and then of course we're going to review the new Levy options and recommendation and what's next steps going forward so you know background due to unstable state in the federal funding Minnesota school district rely on operating levies or referendum to to provide students with high quality education operating Levy's funds are used to support the day-to-day operations the district both staff and supplies we can use them where we need them the amount of Olivia determined by this by the school district in a typically based upon budget needs and of
003course the resident tax tolerance uh Levy funding is a per student for per pupil unit so when we look at getting a levy we look at our pupil units multiply it by whatever that particular Levy is that's what and then that's what comes after me so as we go forward in our our enrollment increases it increases that we still get that same 100 or 200 whatever we've asked the public to give us okay um school districts must ask voters for new Levy through the November referendum and we can't we can't do it at a different time of the year and then typically they're put in place for 10 years some districts have done something different there but by far the majority of 10 years at a time and of course the school bars must formally
004call for that election in order to hold a referendum I'm gonna stop you just for a second there bill um for attendance purposes Brian could you introduce yourself real quick so we make sure we have everybody on record that's yeah Brian Thompson I'm here thank you sorry Bill that's okay um anyway so the Board of Education needs to call for that election we're coming up to the deadlines for anything that we might do this fall pretty pretty quickly so that's one reason we're bringing this to you okay of course um Lakeville area schools steady growing School District we're running two and a half percent on a yearly basis last year actually we don't have our final numbers yet but we're actually a little bit over that um of course in order to staff and operate
005our new Highland or Highview Elementary School in District 9th Elementary School we need a new opportunity to generate the funds to pay for that staff that we have service uh okay additionally other schools grow social student social emotional academic needs are continuing to grow additional supports are needed to help those students strive in school we have always taken a conservative approach that's what we need when we need again you can see the growth here of the school district again we're hitting these numbers right on we haven't fallen below what this projection has been so it's really it's uh actually one of the fastest growing school districts in the state event so now I'm going to hand it over to Peter to go over the survey results from May sounds good right okay so I can
006control it I'm just going to remind people to make sure you speak loudly too just so that the microphones pick you up pleasure to be here with you uh just to review with everybody well we uh this is the methodology we spoke with 625 randomly selected households across the school district this is hot off the presses May 30th to June 5th a key piece of this then is this is done after the legislature finished all its magic so that is starting to be baked into the cake of the recipe of public opinion this was a much shorter survey uh very concise to the point looking at the operating Levy testing a few atmospherics so the average interview time was six minutes non-response rate was six percent the 625 samples projectable to plus or minus four
007percent and 95 out of 100 cases to put up some of the demographics then 54 were cell phone only households nine percent landline only 37 percent had both landline and cell phone looking at the demographics there were no major shifts between the survey earlier this year and then looking at updated census information we were within the plus or minus four percent so residential longevity this time comes in roughly at about 13 and a half years the typical resident's been here 18 percent have preschoolers or infants 36 percent have children attending the Lakeville school district and then 59 percent are empty nesters so once again empty nesters means lack of presence of a child child not that you're old and your kids are gone so you need 32 maybe 32 years old yes 32 years old
008and not have a kid you're an empty nester I was thinking you were talking about Dave but he's still old I still got people living in me too uh 15 are renters uh self-assessed home value comes in approximately but it's it's over above 475 000 is the self-assessed home value continuing with the demographics uh the age 19 or 18 to 34 year olds 35 percent are over the age of 55. uh Highly Educated a majority are college graduates or postgraduate 56 percent one in six are high school graduates are less than 28 percent have some college experience uh the one area then that we we talked about earlier this year it continues to go up as a concern it has not gone up you've kind of stabilizes the financial and security of the household you
009have 44 financially stressed where we're at right now in Minnesota in 2023 is 54 so you're about 10 points lower on the financial insecurity and this question does not ask folks what their income is it's simply asks them to think about their income and their expenses and how they're matching up uh to have an idea before the pandemic we were at 28 financially stressed so this is always an important question the higher that goes though you have more people that would support something from the school district a property tax increase but simply can't afford it so that's why it's an important macro Factor as we look at this women outnumbered Men by two percent Lakeville was almost three quarters of the sample Burnsville 11 and the rest of the district 15 percent can you go
010back to that financial aid stress what was that metric back in February January yeah I believe it was it was 47 so statistically insignificant difference but you're not going we've seen it continue to grow now as this year's gone on we don't have the growth here like we've seen in some other school districts where we've done an earlier survey and then a follow-up survey I'm sorry I was at 47 financially stress yeah yeah I was gonna be gentle is it oh there it is too quick technology all right perceptions we just retested a few four statements just to see you've gone through budget cuts and that obviously is going to impact people's perceptions on things so have you spent taxpayers money effectively and efficiently uh it's a statistically significant drop but that's going to happen
011when you go through budget cuts you're underneath you're under the microscope on financial spending on 66 percent still agreeing though the norm right now is 57 so while you have had some regression from that you're still about nine points higher than the norm also decision making you've had to make difficult decisions um it is a statistically insignificant decrease 69 still are satisfied with the decision making and then obviously we did not test this one but just to see the discussion going on in the community about funding about budget cuts and everything where are Folks at with the communication 73 say the district does a good job communicating it's about eight points higher than the norm of 65 percent yeah that's why I'm not allowed to do technology if only my 13 was your 12 year
012old was here there we go all right this is a question that I'm most interested in at the outset then if this is the one the schools are a good investment and i would support a property tax increase to protect that investment what we're curious on is the the core opposition has that changed uh one way or the other in the spring or early this winter actually it was 66 percent agreed now it's 66 percent agree it was 21 percent uh disagreed it's 24 it's a statistically insignificant change and it's below the 30 percent threshold so with all the discussion that's gone on on budget cuts on additional funding from the state and everything the foundational question your op your core opposition has not changed and it's a blow where it is seeing now in
0132023 of 30 percent where folks with property tax comparisons in earlier this year we had 53 percent say their property taxes were high this time we have 54 like we talked about this is the other macro issue uh it Remains the the big issue is the perception of property taxes property tax hostility is up all over the place I actually ran a city a couple weeks ago and that's the high Avenue 2023 77 percent said their total taxes are high in that City that's a poisonous tax environment uh 54 percent it's people are they're hostile towards them once again the good news is they don't blame you 45 percent rated their school taxes as high so their animus is focused at the city or county not at the school district that's good news the bad
014news is is really you're the only show in town that they get to vote yes or no on a property tax increase okay so you have to be on the property tax hostility you're about where we're seeing it's normally about 57 right now on the financial institute security you're about 10 points lower than the typical now we can see the start of the shift on people's opinion on is the district adequately funded and this is coming from what the legislature's done we see a six point shift already uh only a week out you know a majority saying yes you're adequately funded went from 47 to 53 uh no one from 44 to 37. I anticipate that this is only going to grow even though I think the governor's Victory lap was not as loud and
015vociferous as a lot of people anticipated not like it was in 2021 where it actually grew to we had 75 percent of people saying that the districts were adequately funded by the fall but it's not surprising now that we've seen this shift based on the legislative session where are folks on their predisposition on a property tax increase 25 percent are against every uh anything 27 percent are for all so you're actually a plus two which is a nice position to be in that what we're seeing right now in 2023 is a negative five you have five percent more opposition than poor support at the outset so it's a decent position to be in but obviously the 46 persuadable are going to be the key in any sort of successful referendum where are Folks at for
016a property tax increase for an operating Levy or Let's Make a Deal question then nothing now goes to 30 percent is under 35 percent so that's a good place to be 18 say 7.15 say 14 dollars and you have 25 indicate that it could be uh 21 or higher the median comes in roughly at about 15 bucks a month is the tax tolerance at the outset now as I tell all School boards and administrations that number's not set in stone okay there's elasticity to that number depending on what the funds are going to be used for there can also be regression from that number if the wrong things are asked for so we follow up and we ask four components and ask would you support a property tax increase for this purpose we have two-thirds
017support or higher for all four what leads the list is attracting and retaining staff 71 percent 68 percent mental health support 68 percent operating the new elementary school and 65 percent on student intervention we then pulled it all together and tested the 539 dollar per pupil unit uh operating Levy and residents were told on a four hundred thousand dollar house it's 19 a month on a six hundred thousand dollar house it's twenty nine dollars a month so if we use 500 000 is kind of the middle point in the in the in the the median in the district it's about twenty four dollars a month okay so we're about nine dollars above where the Comfort level is you can see the impact though of having items that are highly supported that it actually goes to
018uh 58 support to 35 percent opposition was seven percent or unsure if we look at intensity there's not a lot of intensity less than a quarter feels strongly one way or the other it's a statistical tie at 13 to 11. what are the reasons for the decision on the levy well at this point it's the soft reasons 27 education is important 16 percent children in the district nine percent cost is reasonable and if we combine the needed the mental health portion they thought is needed or retaining teachers is needed it's 11 of the need portion as you go through the campaign whatever you decide the need has to be the number one issue okay nobody wakes up on Election Day it says I have to go vote because education is important okay you'd like to
019say they do but they'll find a reason or excuse not to go vote what drives people to the polls is the need where's the opposition coming from well every district has 10 percent of people that will oppose because of poor spending does it could be spending that you did six months ago it could be spending you did 16 years ago that it's just one in ten so that's typical ten percent say their taxes are too high seven percent no children seven percent cost itself is too high of the request and two percent not needed if you look at just the need proposition it's 11 to 2. so people do doing an evaluation on need net out that this is needed versus not needed now we tested six arguments in support and I'll read those what
020leads the list the number one with additional Revenue the district will have more stable funding and be able to maintain class sizes and provide consistent programs for our students 35 say it makes them much more likely a total impact of 71 percent then we have the for years State funding has not kept pace with inflation creating a sixteen and a half million dollar Gap in the district's annual budget 33 percent much more likely required special education programs cost the district 15.2 million more than it receives each year from state and federal government putting additional pressure on the district's operating budget 68 percent total impact you can see that as the second greatest impact unfunded mandates are very unpopular okay especially amongst Republicans and independents specifically in atypical support group for school district referendum what about
021more mandates that came new mandates from the state legislature will impact employees wages insurance and other benefits which may cost districts more money than the additional funding they receive from the state 30 percent the district cut 7 million from its budget for the next school year in two years the district will need to cut at least 1.3 million from its budget 28 percent with an impact of 64 percent and then the impacts of the pandemic will be felt for years in public education the federal covet funding will expire this year we need additional funding to maintain programs started to help deal with these attacks 26 percent with 58 the many districts have tested this impact of the pandemic as an effective message and it's always at the bottom it really does not what sells what
022what makes people resonate to it is the stabilization of funding and then understanding we've all experienced inflation cost of living they understand that and then the unfunded mandate portion those are arguments and support what about arguments against we have to be fair and present both sides what leads the list is leading the list everywhere and that is the with inflation and the cost of living increases many cannot afford a property tax increase this year 33 says it makes it much more likely to oppose total 62 percent then local property taxes are going up too quickly homeowners just can't afford additional taxes for Education the legislature just increased education funding this year so local taxpayers do not need to provide additional funding and funding is adequate they need to do a better job of spending the
023money except for the inflation and the cost of living the switch factor that those that impact it it's kind of those bottom three arguments operated in an echo chamber you already oppose they just make you firmer in your opposition the cost of living and the inflation is the wild card here as we go into planning so we pull it all back together they've hold they've heard everything what the funding is going to be used for what would cost them we've sold them arguments in favor we've told them arguments in opposition overall 58 percent would support the 539 per pupil unit 35 percent would oppose amongst likely voters and now this we looked at I have three questions up front about registered to vote have you always voted and then are you absolutely certain uh it's
024kind of over inflated right now but approximately 41 percent fell into the category of a likely voter he won't have turnout of 41 but getting people to admit they won't vote is difficult sometimes just like getting them to admit they don't recycle but at this point in time it's good to know that likely voters are more motivated it's always difficult when I look at this at this point in time and see that they're less likely to be supportive so at this point in time 63 percent of likely voters support if we look at this as a whole the 58 overall is it it might be a little too much uh in looking at the data and I say that because when you we look at all the referendums we worked on uh over the past
02530 years there is typical regression from a survey at this time because there's been no campaign there's been no yes there's been no no importantly typically a district will regress to about six to eight points down which if there's a typical regression it puts it at a coin flip basically a 50 50 proposition now some districts with an incredible vote Yes and the get out the vote effort it actually will go up but those are the exceptions uh to the rule so I would suggest that data would indicate that probably going to the full cap is a step too far in the minds just because of the macro economics it's not that there's not support for what the money's being used for it's a tax climate it's the financial situation but perhaps getting closer to
026that fifteen dollars a month on the average house would probably be that indicate the most chance of success for operating Levy this fall so I think at this point I'd be happy to answer any questions you have when you had that slide about the creatable voters do we have more information about who like you know with the demographics is any of that broken down into in terms of understanding we're going through that for the report right up so we'll have the Coalition of who the core supporters are you know I looked at the core supporters I pull up the likely voters to the court supporters right now are parents that's what's driving it parents are the most motivated to say that they're likely to vote the problem is is on Election Day and an off
027year you're most likely supporters you're least likely to show up I mean history has shown over the last decade young parents don't show up you want them to over represent by 10 hopefully right now districts are lucky if they represent their popular portion of the population as a whole but the persuadables I'll write that up in the report on who they are and how do you define that persuadable like in the how do you oh the question is if you heard the district was asking for a property tax increase would you be for all prop any property tax increase are you against all are you foursome and against others so the persuadables are the ones that are saying they're foursome and potentially against others thank you you're saying basically the 15 a month is kind
028of top yeah I I think the older I get I'm very conservative on this and not under not really having a clear picture on where the economy is going to be this fall I think it's I mean could you go for it all yes it would have a chance but I think that there are macro factors that it might be safe to consider scaling it back do you have the metrics about Broken Out based on parents and and not not parents because I think you have what I saw earlier you had about 40 with kids and then 59 without yeah of the 625 uh you know surveys that you did so of the 40 that had kids what what what's the percentage inside of curiosity of those uh yeah I pulled that out like I
029believe it was 78 of parents are supporting right now and that's about you ideally you want that at 75 or 80 percent on Election Day that's why it's so critical to get them to the polls because for every 10 that show up eight or supporters yeah and then what's the uh what's the one for the 59 without kids what number was that I'm assuming it's got to be in the 50s I'd have to look at that one specifically about the empty nesters on where they're at well it's possible some of those empty nesters just don't have kids yet right is that what you said earlier yeah they could be they can be younger yeah yeah so there'll be a breakdown by all the age demographics and everything I mean all the demographics I'll we'll put
030that into the report curious you know do we know what the voting history is I think you may not in past Levis like how many votes were needed to actually pass a levy how many people voted in the in the last Levy if it was like 8 000 something I remember it was like it was 200 votes yeah it was close Okay but but a total of how many people participated it was like eight thousand something thousand I think it was four thousand something to four thousand something okay got it I might be wrong if we have 11 500 kids and I'm assuming one parent votes right Brian are you asking about the last Levy or just the last Bond or the last Levy the last Levy I think that's different oh yeah 16 yeah
031oh you're right yeah I'm just curious but that's fine that's uh we can look it up yeah I mean traditionally in off your elections turnout tends to be somewhere between 20 and 30 percent now it's going to be interesting um what happened in Rosemont Apple Valley Eagan this the this spring yeah 495 million dollar Bond referendum of the largest in States history and turnout was 10 um I mean what does that mean we know that non-parents are not are still not engaged local government with local government at the levels they were pre-pandemic they're just not focused and so does that impact turn out or what does that mean I don't think anybody quite has an answer to that yet yeah I think it's just fascinating to just to see the metrics on property taxes I
032mean I'm just looking at page 8 in your document I mean back in 2019 property taxes contributed to about 20.1 percent of our overall budget and we're projected now to have a 25.6 of our overall budget from property taxes so I mean wow uh our budget has gone up the community's participation and funding our schools has gone up you know five percent well almost you know probably 20 over the past two years so it's it's been uh I don't know interesting thank you I'm just impressed you actually like the turnout is that good for these I mean like you call them and they answer their phones seriously nobody answers their phone the first time you just persist yeah it's persistence thank you and then even when they refused that I have two grandmas that nobody
033can say no to grandma oh my gosh there's all sorts of strategies to it um but yeah and you know quite frankly I mean people care about their local government if we talk about state government they don't want to talk about that now and they sure as heck don't want to talk about the federal government but they still will engage on local government issues so Steph was at 2019. yeah so 2019 yep 61 to 38 yeah what was the total what are the total registered quotations yes or no right I guess if there's no further questions we'll move on to your recommendations thank you Peter thank you appreciate it just be a resource here thank you here's some information that we actually have presented to you the last the last meeting when we talked about
034where we stand with other school districts around us when it comes to operating levees visibility you can see that we're at 1605 we see we have several districts pretty close to us that are at the cap where you see them at you know over 2 000. so when you look at that you know that if you average all the districts above us it's about 407 dollars for a pupil unit that they are higher than we are which would generate that's about 5.4 million just to be the same just as some just a piece of information for you I'm out of trouble now too okay oh can't go back to that previous slide sure just make sure I understand this so you're saying that there are seven other districts around our community that are similar in
035size and their property taxes per per student is roughly 400 more and so uh so those schools generally get about five extra million dollars in in running their operations well we can't say that exactly because it's based on how many students they have so in the case of like Rosemont I mean would generate us five it probably generates some fifteen years so I think that 5 million Brian is looking at it from our perspective with our student count just take an opportunity multiplying by four hundred seven dollars right that's what it is okay and so that would equate to roughly like how many teachers I mean if we said we had to hire only teachers with 5.4 million dollars well I use about a number of approximately a hundred thousand dollars to be safe okay
036so we don't run out of money but we had a little bit of that problem lasting so we could add 50 additional teachers across across the world got it and how many teachers do we have today eight forty eight forty okay so we had about six seven percent more teachers but this just isn't for teachers it would be for what the board determines yeah where we should spend more money yeah not necessarily a teacher yeah yeah okay yep of course um one thing we want to look at for sure is you know we need some funds to open the new Elementary School and uh 100 per pupil will generate at 1.3 million dollars because we have 13 000. so um 100 gives us what we need there um for those components and if you remember
037the components that we need to make that one point three you know we need a principle we need the the office staff we need the custodians we need the utilities and so forth in that particular new building I have a question on that how much that per month for an average home um scenario two um thinking maybe we should look at two two ballot questions of course having the first question be exactly what we have what we need for that elementary school we know we have enough support tax tolerance wise uh to pass that first question and then to look at look at that cap for the next and you'll see we you know looking at uh you know to support um K-12 behavioral academic support needs as you know that we we need a
038lot now since the panda that would generate us a total between the two or six point nine million dollars so 1.3 for the first question 5.6 second when we go to tax on question one especially if you know our our mean value of a home it's not quite five is little under you see it 400 000 home you're at three dollars and sixty cents a month and five hundred thousand unit 400 4.58 cents a month you put two questions together you see that on the 400s at you know 19 and a quarter and five hundreds at twenty four dollars on a monthly basis bill can I ask are you are you recommending two questions are you just talking about it in the two lanes right now so we know um yeah we are recommending two
039questions because we know we need support but we're presented to you in that way certainly so the Board needs to look at what what you like to do but we definitely need some more supports than what we have so can I have can I ask a question Peter I know what um I think it was back in December or whatever you did a presentation to msba to the delegate assembly group about elections 2023 elections and I I can't remember is looking back to my notes on it but I thought you talked about one versus two versus multiple questions did you talk about that or I don't remember specifically at that presentation I've talked about it a lot and it it gets a big depends yeah okay the critical piece here first off is what's needed
040I and I think in talking with the administration everything the opening the school is critical I mean that's something so then do you risk something for an all for nothing in that sense it's that gamble the second piece is the Board needs to be unanimous um and so however you can get to being unanimous because we know from research and looking at when the board is not unanimous it has a 35 chance more likely to fail it's a signal to the community if the board doesn't agree that it's needed then it's a signal to the community that maybe this isn't important so I think in the discussion and everything to pull out question one it's just kind of the no-brainer portion in the sense we need this funding to open this school it's really straightforward
041to the community and then the argument and the discussion can be the additional where it falls uh that amount as long as it's contingent on the first passing so let me play Devil's Advocate if if we always say we ask for what we need and we feel we need both questions does by asking two questions does it give the community the choice to I'm going to vote for this but I'm not going to bother supporting this right now because I have a choice so um uh it in the past second questions and third questions or God help us like Anoka Hennepin did five questions two years ago for whatever reason but yeah yeah they wanted an Applebee's menu in the sense for voters traditionally they're viewed as sacrificial lamps to get something to pass I
042don't think though necessarily that that's the case here because you have high support I think the key is is what can be supported unanimously by the board um as as a question whether it's the whole whether it's one or two it needs to be unanimous coming from the board um but I think I you know personally my feeling on this it's kind of like the last bite of an apple of an operating Levy Renault if the district if this is it and it expires the district will say let's just do a revoke and replace my recommendation is always do the renewal and then ask for the additional and I'm kind of seeing this to me that question one to open the school is the critical piece I don't want any you know I think the
043recommendation comes for it it's not saying I don't think anything in question two indicates that you have 65 support for the other items too it's a tax tolerance question because I guess the last thing I'll say to that is the last thing you really want to do whether you're going out for one or two questions is um to have question two fail and then even though we had one question pass and maybe need to cut the budget done that's part of The Logical consequences you need to lay out that's part of the discussion I mean they have to understand on all of this the last thing you want to do is just go out and say you know what nothing's going to happen if this fails it'd be that right now in this environment things
044will fail they have to understand there's logical consequences sometimes School boards get squeamish on this that you're threatening it's not a threat it's actually a fact the thing is you have to be willing to follow through on it Robbinsdale about 10 years ago went out and said if this fails we're not going to do anything we're going to do all these things it failed they didn't cut it they didn't do anything and they didn't pass anything for five years and so you have to be willing to follow through on The Logical consequences there's there's to me there's clear logical consequences on both of these questions um that you can lay out for the community to understand the need portion of it I think the question is really for the elected officials is how do you
045get to a unanimous point that the board can support something is that one question two questions what the amount is is the critical piece and that's the internal politics okay thank you thank you Bill aren't you glad Peter stuck around just wondering okay well as Peter has said it really is what this next slide is question one we definitely need that money before for the elementary school so that's from Rick from the administration we need questions okay when it comes to question two again we have a lot of supports that are needed in this District and the question is you know what do we want to ask for that love that level because no matter what no matter what funds come in they'll be used for supports we'll use a person of course the more
046more than available better support Bill yes plan of clarification the um dollar amount and per people among under question one I believe is incorrect I believe it should be 1.3 million and 100 per pupil on question one and then the second question is correct can you actually right just like practice thank you I was looking at there yeah here the 1.3 and the 5.6 is what we're talking about so sorry for that typo here on this next slide so question one is 1.3 and 100 for a pupil and the second actually the second two is correct 5.6 and 423 I have a question uh questions to if you want a question on question two I thought it was 19 per month average which is above 15. is this is the 5.6 million set in stone
047can that be lowered I don't understand where that number came from it's again we when we start out operand levels so many dollars per pupil right so in this case the the um the top of the max that we can do in the state of Minnesota would be an increase of 420 so this is not just working that's the max yes it's 423. because it's a Max as far as possible to I just remember my first time be more comfortable closer to 15. which I think would probably be four and a half million or something I don't know I'm just guessing yeah I appreciate that Terry I think you know one of the things that tonight um obviously isn't a decision-making night no um tonight is to you know sort of present you with the
048data um and the background of the survey to have so that you all can have some discussion around what you know collectively you might want to agree to as a board to move forward again no decisions but but what you're saying is exactly I think the kind of discussion that would be helpful to us that we want to have this evening is to talk about what that might look like we're presenting two questions so how do you feel about that and what makes the most sense moving forward in terms of our strategy around this so I know I think bill has a couple more slides too but what's the date for the decision when does that need to be made I know it's June 28th oh okay are you in here am I talking too
049soon you are but that's okay so I ideally ideally June 28th okay would be um you know and at this I also want to add that you know there is a sense of urgency um in terms of really creating a quality campaign and making sure that we're set up to be successful should we go forward with question one or question two um that said you know we could we could take a little more time if need be um tonight we wanted to make sure you had all the information so then you could think about what your questions might be and make sure those get answered prior to voting on anything so that's really the intent of tonight yep got it I think I kind of agree with Terry in that um I I feel like
050the question too was too high and I think it would be uh just from your information like a yes for one and a no for two but it may be if we lowered the second number we could get a yes for both because I'm I'm not sure like I feel like it but it was like yeah yeah I agree with that we need one we can't get a yes right and I'll use my favorite term I've been hammered all week um so I think we need to come up with a compromise but I don't want to say too much to like you said to show for descent well how how does this question actually get asked because I guess I'm wondering to your point about the tax tolerance yeah like when we talk about 4
051million versus 5 million does that really matter to the voter unless it's like very clear how much that is going to cost them specifically or individually that's where the campaign comes from because that's where we can educate what that tax would be for them for whatever question yes the question on the ballot just says you give the school district authority to Levy 100 200 whatever it is per pupilian it doesn't talk about their tax whatsoever it doesn't tell what it is for no no it does not and part of the confusion is oftentimes people see that question that says a hundred dollars per pupil and they think that's my tax impact or um at one I had a parent call and say well I have five kids in the the district does that mean if
052I say yes I have to pay 500 right so that's where really it's a fair point it absolutely is it just shows that the way that we're required to word those the questions just in and of itself can cause some confusion which is why we need to be really clear in the campaign this is what that we usually show the ballot language and say this is what this actually means and equates to your direct impact related to your taxes accountable for what we spend it for and they need to know what it's about right right so it wouldn't say on there anything about Highview no no no we can't say that or it won't it cannot it can't it says legal stuff it's that damn league if any legislatures Peter were you gonna add something
053I was gonna say your big question though yes that's what they'll see on the ballot but at the end of the day and that's why the campaign's so critical and the communication coming a hundred dollars per pupil unit or 4.3 million where you think how much does it cost them right that is where people make the calculation um it doesn't matter if it's a bond or an operating Levy what have you it's the cost the tax impact to them and also it matters if your city or county is going to increase the taxes too it confuses right and rightly so yes yeah because most people don't understand the difference they you know they they haven't they know who they're mad at right especially County does something or the city does something and everything like that
054yeah but when we cross over two counties and what four or five cities now in the township you know it yeah you can't answer everybody's question but it's a tough message but we did have what um one Township that has their they're Incorporated now so like their taxes went way up well Empire and Credit River and I mean many of them have done that so it's a bigger issue Burnsville same thing because yeah I had that issue two years ago when I was worried about when we did the letter yeah and you guys the taxes actually went down in my area that went up remember yeah so yeah important point that you made is that we have to come to consensus on this as a group all of us because if it's split like you
055say 35 chance of not making it Brian did you have a question yeah I wanted to talk about the levy one if it doesn't pass how does that impact our budget but we have to can it stay cool dormant or like I don't know it's again it's 1.3 million dollars that we need to open that building so we wouldn't have that 1.3 bill million yep so either we'd have to do something cut the budget to find 1.35 or we don't open it or we don't open it got it or we or closed a different building and there's lots of options we can look at but you need to find in order to open that building we need 1.3 million and some of it just went pee at one point and some of us just went
056to see it tonight the new building the new Elementary it's awesome so it would be not very smart not uh go ahead Brian can you uh can I see a breakdown of that 1.3 again I saw that you had a superintendent I mean I'm sorry principal that was going to get paid 200 000 you got a uh three admin folks can you can we can you show that screen again those are estimates too yeah well they're they're pretty close we went into the budget and we got on averages on principles averages on the support staff averages on the custodians and put all that in there it came up to 1.3 and we've been talking 1.3 for years is that the Staffing or is that the utility expenses it includes the utilities okay so anything that
057that's a indirect cost is on that list because the teachers the kids will generate the funds for the teachers yep okay teachers move their kids so what about the then the other elementary schools can I make an assumption that if we're moving roughly six seven hundred kids potentially into this new elementary school that the utilization of resources with the existing elementary schools at the decline so we going to reduce hours of those resources as well or are those you're talking about the core resources are they going to come are there are some coming over to the new elementary school I'm just trying to understand do we need anything to teach the teachers will come yeah they'll come but the the indirect costs like the principal yeah add a principle that's one there's 200 million everybody
058else keeps their principle right yep it's all the staff in that front office but so to help me understand that do we because you're you're moving 700 kids from the other elementary schools but you're keeping the existing staff in those elementary schools still there no but not the teacher no he's talking the course like the cafeteria are you trying to try to separate the cafeteria because that's a different font yeah but I mean yeah um would we have a few less you know support staff when it comes to um you know supporting kids yes but it's not a very big number well we want we won't be taking you know custodians out of these other buildings same square footage we still have the same utilities to run that particular thing so there's a very small
059savings when we is there a savings they're actually moving to the new school though because we're going to need that support staff at the new school that's why we put the support staff on the list yeah because we're gonna need them so there's not a lot of savings it's just transitioning people that we need to transition but it's not everybody because some of that staff needs to stay there because you have a custodian at each School Brian for example a building that has 900 might have two art teachers they'll go down to 600. part of that our teacher will go to that building oh so let me rephrase that question I I understand that the teachers and the support staff would come with what I'm asking is what makes up the 1.3 million again it's
060a principle do you have the do you have the slide I don't I don't know okay yeah we had it on that first one yeah I think that's awesome one of the things that we talked about with the budget cuts was when we had we had however many schools that or two three schools that had principals and APS and we had to let go of APS and there are principles that are managing too many this next year will be very hard on some of our principles right so it's it's part of it is is we aren't going to we're going to need additional staff yes despite moving kids because they're already bursting at the seams and I'm totally on board with that I'm not saying that we can't have more staff what I'm asking is
061that if you're moving 700 kids the utilization of the existing core admin ought to be lower because that's there's less kids in those respective schools and so if there are less kids there so do you need the same amount of ftes in each building and then on top of that I think we recently passed a budget or past one where we're going to try to hire individuals at a lower entry rate compared to the middle or the high so when I see the principal at 210 000 that's the average of the average what is the entry of the principle when I see the office and school support staff of 280 thousand dollars uh I get that we need office and school support staff but how many people is that is that three is that I
062think this was about four four people no this is one this is four okay this is for and then you know we have a counselor at every Elementary yeah they won't come out of the other buildings but so these are additions that we need if there's four people for 280 000 that's a seventy thousand dollar for an admin that's that's what I'm calculating so so I'm trying to understand I mean that seems high that's all there that's their salary and their benefits yourself but is it on the lower end or is it in the is it in the middle I'm just trying to wonder if we can get it down down to like a million instead of a 1.3 well there's a chance we could hire at a lower level yep um depending on who
063that particular person is but if we can't find that particular person now we still back to 1.3 and we don't have enough money then we got a problem we have to remember when removing these students we're only talking about 50 to maybe 101 Building that's changing the actual percentage of kids coming out of those buildings relatively small the buildings are all going to look full still well and so we just went through seven million dollars in cuts and part of that was to ensure that as new staff come on board we're not paying as much as we need to to to I guess I'm trying to say we should we ought to be consistent with our hiring practices if that's what we're doing and if 1.3 is average we could have a little bit lower
064and that makes it a little bit easier in my mind if they say 1.3 that they're being very realistic at 1.3 and I'm not questioning well I think it's important to be um more I mean you don't want to underestimate that figure and then not have it so I mean what we're using here is well versed exercise to make sure we know what we need and I would look at that as the maximum that we probably are going to spend and you know the effort is to try to do whatever we can to maximize every dollar along the way and I think that's been a common practice of this district with every building we've ever opened and you've got to remember utilities it's already in there yes yeah I get that well and maintenance because
065now we've picked up another building and groundskeeping and all of that yeah and we want this school to be successful I feel like if we were to hire and if we were to hire low lower level people in a brand new school like that is going to be a lot to take on for the admin level folks and I just I just keep thinking about we have elementary schools this year that are going to be understaffed and that's that's so hopefully this relieves pressure on those schools the following year when Highview opens as opposed to like we are we're not overstaffed we're under understaffed and I get that I'm just I'm suggesting that we're getting that we're we're getting an approval for the average of the average which is fine but if we just made
066almost what four five hundred thousand dollars in cuts to bring in new staff that are going to be at the lower end you know like like what I understand it's a new elementary school but that's all I mean we're talking about that's in the teacher's world I mean we look at our parents for our relief group there's only two steps on those okay there's not a there's not a big one you can't bring them in way longer yeah it doesn't it's not bad okay same with our principles there's a there's a separate Union contract for the principals and there's only two steps on that I just want to remind that we we are doing the best that we can in in hiring new staff at the lower end of the salary schedule for teachers but
067there are some positions that are very difficult to recruit for they're very difficult to fill special education is one of them administrators are one of them so we might not be able to get those people in at the lower end and like Bill was saying the principal's salary schedule I think is only four steps okay so we don't have a lot of flexibility in regard to the new building that means the population doesn't change you're not hiring any new teachers I understand that yeah so it's some of the philosophies so then if it doesn't fail I'm sorry if question one fails then um and obviously we won't know until November but then we would have to then as a board decide do you want to continue forward with opening up the school but then we
068would have to find an additional 1.3 somewhere to cut to make that work correct got it got it we can't not open the school right oh we can I mean but I I find it pretty hard that's what I said publicly should not open a new building I think Prior Lake did did you say that they did I was shocked or shocking people but they had some other issues yeah it was just a whole different whole different ballgame yeah okay but it is about educating the public then about what that yeah what what they're voting for because if they don't know us to open up a building that they just approved back in what you know yeah so then what's the next step with this then when I look at this timeline you're bringing it
069to a regular meeting the plan was to bring um forward uh sort of some final recommendations on June 27th so um in terms of direction from the board what we would need to know is if there are any changes to question one or question two um that you would like to bring forward or any questions that you might have that need to get answered prior prior to that meeting on the 28th so we'll have to bring a final if you want to vote on the 20th 7th of June then we will have to have a final recommendation for you to vote on so that would be bringing question one and a potentially a question too based on the direction of the board so as the decision question one is just about High View question two
070is about the extras or we only bring question one or we bring a question that includes both yeah if any of those things are possible yes so so at this time I'm not in favor of a question number two so I do hear support and academic behavioral things but like I haven't seen a business case I haven't seen what are we going to bring how many teachers are we going to bring on board or what what the support is going to be so at this time like I I'm not I'm not on board with question two so so to me it's kind of like hey you've got a two million dollar line of credit let's go ahead and Max it all out and then we'll let you know what we're going to spend it on
071so at this time until I get some sort of a here's the area that we would spend it on here is the number of people the number of resources how much it's going to cost that will help me better justify the the need to spend just because there are seven other districts that are spending 400 or 500 more per pupil doesn't tell me that that we have to go out and get that money and so I'm not saying that there isn't a need for the money what I'm saying is that I haven't yet to see a business case for the money so that's my point if you want to open with uh Kim's and I my suggestion lowering that so again I pull this two increase in it but at the moment like where's the
072business case for it other than nine other districts are spending 500 more than us I think the business I think the business case was in the questions that we had asked in the survey which was around more support for mental health needs and um I'm sorry I can't the student interventions attractive teachers yep and retaining teachers and stuff so that is the rationale of what that would be used for and until there's success with that Levy breaking it down into the absolute level of detail that you're looking for I'm not sure that we our staff would be doing that to know exactly who and how many and what we're bringing on it's an overarching message of this is where your resources will go to these four areas and that's the business case for what we're
073advocating for if we want to invest in retaining teachers and getting quality teachers the mental health needs and those four other areas that this community highly supported so I understand those at a high level when you're saying retaining teachers what does that mean does that mean that we're hiring the 34 9 10 year teachers that we let go uh when you say quality teachers are you telling me that we've got 100 teachers out of 856 or however many that are not good quality teachers so I guess what I need to see it's positive yeah give me the data to validate the need for the for the max I think the data or even half of the max is the Public's response I totally agree I understand that maybe we have to look at the data
074because we because we are Financial stewards of the money and so if so when I have when we are doing major initiatives within my profession we have to come with the business case I understand that's how I make decisions I'm not going to make a decision just because nine other districts are spending 400 more than no one said we wanted to that we needed to be like the other districts right you're the first one to compare us to other districts so that's a fact that we can look at that we're comparing ourselves to other districts because you do it all the time I do I do I do in regards to the policies and how they run and how they operate what I'm asking for is give me the data what are we going to
075do with the money oh yes one thing that um you know we talked about as an Administration and as we were meeting with Peter is it's hard for us to put together a plan A business plan um if that's the jargon we want to use an education plan really unless you really know how much money we're working with so whether it's the 535 or if it's more around 350 per pupil the support and plan that we would put in place is going to look really different because it needs to match the money that we're we've got so I think you could expect to see that um if there is support from the board to go above the 100 per pupil um when we would meet with you guys again so so that's so let's reverse
076that and then you tell us what do you need to run an effective school what do you need in regards to funding to to make it the best that you possibly think it can be and that's the money that we should go after not the other way around but that's not we need a lot more than uh that's okay if we need more than that then let's let's talk through that well we can because that's the kind of count well then if that's a cap then let's talk through what are those of these and then prioritize it as a team to say these are what the this is what our community wants in regards to mental health or or additional support but but we need more we need to understand what more are we doing
077within that I mean I I don't think we can really prioritize until we know particularly what we're getting because I know some of the things we've discussed would be um during the budget cuts we put a cap on hiring as far as like how how much a teacher coming in and we'd like to remove that cap so that would help us retain and attract new teachers or you know more more quality teachers um another thing that was discussed was um bringing back some of the leaf staff that we had to cut during the budget cuts that help with our interventions within our building so then that would support the interventions and I'm just ideas out there I'm just saying these are some things that we've discussed in the past um I mean The copier is
078back well you know just things like that to support staff we can't really prioritize until we know what we're working with right like if we if we have half of the of this 6.9 million we only have like three then that's going to change our priorities on those list of items that we would like to do um so I can say that I I think I I see what you're saying like these are the things we'd like to do with that money but it also depends on what we get well and we've talked a lot about then the plan would come before the board held to spend it we've talked about mental health I mean I've looked at districts around us other districts we there is lots of opportunity for improving our mental health supports
079but what would we do so for instance in instances where Deans are doing things that are not in the dean's land of things they should be doing school psychologists should be doing assessment not necessarily all of the other social workers can be doing or counselors can be doing more of the intervention kinds of services so students having a clear line of support for who they go to for um you know disciplinary kinds of things versus mental health support intervention versus they need an IEP they need assessment so that's the kind of thing that right now and Dave you could speak much more fluently about this but we we could drastically improve our mental health system with more supports and I think if we've learned anything in recent years with things that happen with our students
080we need better mental health support services as soon as possible so I'd be open to that I mean if we knew exactly how many more counselors with that that you feel you need to run an effective district and then with those counselors show me that you know by adding this it reduces the amount of workload for the dean so that they'll be able to do this and by adding these counselors we anticipate decreasing the mental health you know unfavorable rating of kids whatever throughout the one two year three Horizon and how much money do you need for that and so that should be dry and so that would be one entry in addition to the 10 to 15 other entries that other departments might have and so then when we get that list of things
081as a board we should be discussing all right what is the top priority based on the survey information that we're hearing from the community what parents are saying and then how much we think we can actually afford from what this what the levy would allow us to to gain in funding and then kind of go through that list I mean I have a I think I feel like we're going backwards we're doing it in reverse that's all in my opinion there's a cap yep and like like I said before we need more than that but we can't get more than that so in my opinion we asked for the cap because that's what we need and then you can let the people who would design the plans we actually get that put that into effect
082um because date I don't mean Dave could come up with a plan and at the same time at the end of the day whatever we get approved for it's going to be like the the directors working with one another to determine how to divvy up those funds the best way they possibly can they're never you could ask for the 5 million yourself yeah there's there's a lot of variables involved Brian and I would say like if we if we want to look at our existing model add just some pieces to the mental health supports district-wide or to the Family Resource supports that's one dollar figure and that's still a lot of work to come up with what that's going to look like to plug in with our existing system or do we revamp the entire
083system at that point and say hey look our our model of doing student supports from light interventions all the way through Administration isn't working we've got to like re-look at the landscape that's probably a more expensive and lengthier proposal to put together to kind of outline what that looks like and that's just looking at mental health and I think like like you said Carly no matter if we go for the cap or not we have more needs and expenses than what and that's it that includes outside of my realm than what we have the ability to to make it work anyway so like why why wouldn't we go for at least a conservative number two at the very least on the other piece to that is once we have it spent in those four areas
084that were reflected in the survey we also have some of the highest class sizes across the area and our survey is also showing that parents would like to see that Lord there there is not a lack of opportunity for it is to utilize as very conservative number and I think it's really important that we um we give the to me I'm I'm a board member and it's up to the community to say yes or no and so I think it's really important for us to go to the community and let them vote so Brian on the last boat that we had at the board table at the other meeting you said no let the voters decide I think that's what we need to do here is let the voters decide and I agree I think
085we should let the voters decide so they know but they also should know what they're voting for they understand even much of what we talked about with like student supports earlier tonight came from discussions that we started back in budget cut season that doesn't even include the the newer discussions that are now coming up to the new legislation so when you look at like the new disciplinary things that are out there with non-exclusionary we can't we can't expel kids k-3 any longer unless we have certain supports in place and we can prove that we've executed those supports that's going to equal people same with like in District suspension mechanisms that we have to have where kids stay in school but they might be suspended within school suspension they still have to get their services while
086they're in the in-school suspension that's people so and and those are those are just two examples of un again unfunded mandates that come with the cross subsidy gift so to speak that we got this year that won't be a gift when we turn around and spend it on other things but I thought the unfunded mandate I mean we reviewed that the budget two weeks ago that we did net positive 4 million after receiving 10 million and paying for all the unfunded components so yeah I mean would that funding be enough to accommodate some of his we don't we don't even know we don't know what it all is we don't we don't even know what the unemployment piece is going to have in terms of an impact on us yet with our parents so there's
087a lot of unknown and so but but with the known that we have is that we've got 1.3 million dollars that we got to solve for the new elementary school and so I thought we've got a deadline to decide and what less than a month or I'm sorry in two weeks or next week and I feel like I don't know I feel like we're rushing trying to make this decision just because there's a cap or maybe we arbitrarily decide let's meet halfway I don't know I I'd suggest that we just go with one because I'm not I'm not aligned right now for question number two at all uh one of the other board members feel what are you going to say something really I don't agree obviously I've made my opinion clear I think we
088need to ask for the cap well I I think number one is a no-brainer I think the top one won't pass so we've got to figure out a number in between I just I don't know again I I just be curious to know and stuff maybe you would have a good perspective on this just in terms of how that is going when it comes to like what is at the ballot how much a million dollars is is it would make a big difference to our schools but how much is it going to and Peter you were saying earlier about the um tax tax tolerance tax tolerance but whether they're gonna feel that going into the ballot or not um well to know exactly how that's going to impact him I know that has to do
089with the communication strategy well I I just look at like all the factors that are in our community we have all of these booming houses that are going up all the place right new neighborhoods and they have like a tax break for a certain amount of time a lot of those things are expiring now and people are actually having to pay on property that's been improved upon now so they're actually seeing the real taxes that they have to pay that's huge and then you add on the fact that inflation is adding on I mean I know my family's hurting personally you have tech companies that are laying off that aren't hiring right now you have communities that are just now you know Incorporated and now those people that haven't had like taxes that have been
090with Lakeville are their taxes have doubled so you have all of that too um I guess in my mind I'm I'm for two questions but I would be for a more conservative approach for the second one so that because I I really feel like if we ask for ask for them to ask that that one will just be no two two things I agree 100 two things we have to be careful saying going going to the cap and maxing out because those aren't good terms for our community to hear so we have to talk about the need and um we need a minimum of that much but the recommendation coming from Peter is that analysis they did taking it to the cap level of 539 is 19 a month and the tax tolerant is to
09115. and I think in this environment with even though we had great results and very positive results because it comes down to a coin flip in the end I think it's really important to say we heard you we listened to you you guys are saying the survey says fifteen dollars a month we're going to respect that that's what we're you know we're listening to you and doing that but we have to not say we're going to go to the cap because it sounds like we're I wouldn't I just more mean this is a cap which I appreciate I also think it's not based on a lot of our feedback what we've gotten from our Administration and those kinds of things that it just feels like we we could certainly use that money I don't mean
092we should ask for all like don't I just mean it would be money well utilized but I will say that I am happy is on something that gets us to getting that second can't you Dave I know you've got a question but just quickly what's the difference in collected dollars between the 19 a month and the 15 per month it looks at around 15 a month we can let the finance director tell you is that calculator communication approximately 350 for people we're talking about yeah so then we would look at like a 200 at 100 like we talked about for number one number one yeah and then about 250 and I said that question correct and that brings in what Millions so that would bring in instead I'll bring in uh well it's a little
093over three million three million so we're looking at doing 1.3 and possibly 3 million versus the um to 5.6 million and so and so and then long term I'm like just looking at the long-term strategy we know we're going to be doing a bond referendum too because we are the fastest growing School District so there's another opportunity um to do a bond referendum which could then capture more of what we need for the operating of whatever that new elementary and new Middle School is down the road and an opportunity for us to do something more of the levy question there and I know that I know that two points or yeah 2.6 million makes a big difference but maybe that's what it takes to get question two passed right that's because our community heard us
094the monthly thing isn't that big a deal to me it's it's sort of public it is well maybe the public it is but but I by not letting them vote on the last renewal I've heard a lot of negative a lot of negative I haven't I have I'm just telling you I'm just trying to give you the landscape part of the community they did the okay yeah no yeah but I mean but if we look at proposal Carly oh yeah I so I what I fully heard from Peter and I agree with is we need to be in agreement as a board there needs to be consensus so Brian I know that we're probably at the opposite ends of the Spectrum which I appreciate and the only reason I'm pushing is because when I campaigned
095and I heard over and over again about how desperate people are for the mental health improvements yep that is my focus and it has been my focus and the drama I will continue to beat and so I think we need that money that's why I want to ask for it but I appreciate Peters and Steph's work and um are you okay with the 15 yes okay so we're thinking about spending more money on other things when we only have two million dollars in our savings account I just don't think it's a very wise financial decision now if you want to increase and uh you know as a question number two I mean could all of that in year one go into our savings account so we can kind of beef that back up to maybe
096nine million dollars and then that gives us a chance to kind of plan for what to do with the money in year two can we do that well I I don't think you'll pass a question by saying you're going to take the money but does it make sense for us to get more money from from our community and keep spending it when we're like you can only get two million dollars in your savings account 185 million dollar budget meaning that you bet one percent in your savings account what number should we have in our savings can I ask you some questions so what's your number one goal for your kids in school reading academics right academics okay but the issue with that is that when kids come through the door to us a lot of
097them are prepared to learn because they have mental health issues that are impacting their ability to learn or they have trauma that they're carrying with them or they don't have their needs met on their hierarchy of needs for Maslow right so what she's saying is very valid because if we don't meet that need we can't teach them to breed so I feel like the the behavioral and the social emotional support um with supporting the mental health is really important because I see the impact that it has every day yes yeah oh my goodness yes yeah I mean I personally I I've seen students that struggled so much during during covet and how that impacted them to where they went from failing to when we came back in person and they have the support of their
098teacher and everyone around them now they're getting good grades but they're still carrying some of that with them because we had inconsistent instruction we were going through models and some kids don't transition well like that you also have kids that you know the only time they get to eat is at school so all summer I mean they worry about those things that impacts someone's mental health it's not something you just drop at the door oh here I am I'm ready to learn even though I'm hungry like it just doesn't work that way well and I think Brian to your point you're you're helping validate the 5.6 million because we need to build up our fund balance we need to lower class sizes we need so well we can we can be part of the building
099strategy though if we don't have to spend that 2 million that we have in the savings account right now on Mental Health needs because we've now raised the money to do it we now have 2 million in our savings if we don't do this we're still going to need to address mental health now the 2 million we have in our savings is gone so passing that Levy is still part of the strategy to building up lowering class sizes getting mental health building up our fund balance if we don't pass the question there is no fund balance we're building we're going to be cutting so right and I think what they were saying is she's not going to go out and Market we're going to build up our savings account okay I understand that it doesn't
100mean we can't put something in there yeah but what you're saying is also valid because with the money that we get from the community we need to be fiscally responsible with that and try to get that fund balance back up now obviously in the past that's worked for us and we've been able to build that up so we need to figure out what we did to get that built up and start doing those things again and you got to keep in mind like six years ago our community would paid what 29 million dollars in property taxes right now they're projected to pay 50 million dollars so they went up 75 over the past six years what are they getting for it what are we doing with it are you are we spending it effectively I
101don't have that answer I'm just that's what the number is put some of that property taxes goes to the bonds that we've passed and that gets spread out and low you know lower to you and me as we have more tax base coming on so when I look at the modified question too I think back to the budget cuts up we did now we heard kids help kids I have a question and I don't know why I can't think of this where's the tax cliff we have um actually I have a copy so because that's the other thing I think that's really important to share is what that tax Cliff looks like this happened thank you way to go you didn't have to lean on Stephanie for that one Peter okay that's true [Applause] so
102that may come more in play for our next one yeah so you can see um right now as we talked earlier I mean there is enough space here to actually add a new building without changing our tax rate yeah okay so that's another whole thing to talk about I know we don't have any support for it for us no but that maybe comes more into play with the next deal this is flat it's built so it is flat over the next few years and then 29 so a few years online it'll go down again uh-huh foreign yeah because that's the other thing that we try to do with the timing of all this stuff is put it into years where other things are falling off to try to keep us straight and level I think
103one thing to note though this is capital yep yeah it's not yeah it's not the opportunity no no exactly but I think that still plays into this when we're talking about total tax impact to our stakeholders like an hour and a half do we have consensus to go on with the the 15 a month we have been census from the board I agree side here so I don't know if you want what you consider yeah that happens okay this just happens we're saying consensus with whose is available I mean for the I think Terry is asking which direction do we have to do the 5.6 million the chair you said four earlier so um okay because you said four million earlier and that would be less than well the the three million and then the
1041.3 million is about 4.3 million yep which would be about 15 a month that's where I'm at I support them I think we need to come to some direction to give the district some direction are you do are you with 15 I'm with 15 a month she's yeah I'm there okay where are you Judy's there that doesn't bother me as much as I I agree with we need a little more explanation like Brian was saying to sell it to the community so yeah that's her job that's your job but it's also yeah but which one are you what are we supporting though I mean right now we're talking about do you support doing the 19 per month or the 15 no I already told you that if you listen support 19. I said word question
105one and I think we need to compromise on question two you call it 15. right that's what we're saying that's what we're saying it's about three million question one would be 1.3 questions okay I'm good with that okay we'll get the exact number yeah so we will but I will be hammered for it newspapers so we'll prepare that um what I'm hearing is um question one um will remain as is so there won't be any change in our subsequent Communication in question two we will adjust that to reflect the tax tolerance level of the survey to 15 which is around three we'll get the exact number but around three million dollars to bring for consideration and then um just for reference his in our past history we have never gone out to the community without
106a very specific campaign um on what those dollars will be utilized for um not certainly maybe down to the position but to tell the community what we're committed to spending these dollars on so we're going to be invested and that will be part of the ongoing campaign piece so that they have awareness and they will fall all in those categories that we tested on the survey that shows support hey during your survey did you ask them uh what would they support um did you give them a list of options or did you ask them it was it a blanket where they can say hey here's what I was putting my money on or this is the area that I think has the most need for my point of view as a as a as a
107stakeholder we went through each one individually and asked would you support a property tax increase for this purpose okay so so not to say that we were guiding them but we just gave them those options and that was it we didn't let this that the stakeholder decide hey I think mental health is number one or I think lower class sizes is number one or I think uh you know you have to give them categories to react to or else you'll have 95 percent of people say I don't know you don't know okay and I think it was based on this on the community survey we had before yeah all those questions are based on the top priorities of those parents that took the public community members well I do think um one of the things
108that we tried to do is we hear as we're going through this process we get a lot of feedback into the system both from families and from administrators that say here's the challenges we're facing here are the things we need whatever and so what we want to do then is we want to take those items and test them out on a broader base to see if what we're hearing is aligning or where it's aligning and so so we don't pull like the four categories that we tested those don't just come out of like we think it's a good idea we're getting a lot of inputs into the system that are telling us that these are the issues and then we want to take that out and sort of retest that and so I think I
109would feel more comfortable with a question too as we learn more about the 24 budget just to see where where we're heading what the fund balance might look like I know that we're projected to spend 195 million versus 188 million that we already have this year I was under the impression that if it was 188 million spend and we took seven million dollars out of the budget if all things were flat our budget our like our spend should be going backwards right I mean I guess I'm having a tough time understanding understanding this so when we get to this topic I think that will help me yeah our increases every year are more than 7 million I also want to um just touch on the point that I I think that people have this vision
110of what they picture mental health is like in schools but when we're providing the right supports for students a lot of times mental health comes out as behaviors in our classroom because students don't know how to communicate what's going on or how they're feeling so if we have the right mental health supports then it should also help with the behavior issues that we're seeing in our classrooms too it's not I don't think you'll get an argument here all right sure yes how are you how are we here he's waiting to hear about the okay so about the budget then we should let three know you'll let Reno yep I'll talk with three okay then we'll make sure that she gets all the information okay all right next topic should we move on to the policy
111updates and just to acknowledge I'm not aligned right now so all right understood yeah thank you Peter thank you thank you for your time and for your supportive Bill we think and supportive balls yeah we got to get done we got the right agenda if you need to take it all right a little break upward um policy updates would be Brenda yes so I'll try to get through this as quickly as possible um we have some updates to policy 522 which is the Title IX sex non-discrimination policy the grievance procedure and the process this policy has basically been Rewritten due to legislative changes that happen back in 2020 I believe so just bear with me I'm going to go over with you what Title IX is what it isn't um and what some of these
112changes mean for Title IX so the enactment of Title IX of the education Amendments of 1972 was a great achievement for the women's movement the law states no person in the United States shall on basis of sex be excluded from participation in be denied the benefits of or be subjected to discrimination under any education program or activity receiving federal financial assistance title in that Title IX applies to sports and Athletics equal access to education pregnant and parenting students and protection from harassment and discrimination it should be noted however that although some may believe that Title IX was intended only to provide protection on behalf of females the statute actually protects any person from sex-based discrimination regardless of their real or perceived sex gender identity and or gender expression female male and gender non-conforming students and
113staff are all protected from any sex-based discrimination harassment or violence Title IX regulations enacted into law since the 1970s require school districts to have a non-discrimination policy and disseminate that policy to its students and employees to have a grievance process that provides for the prompt and Equitable resolution of sex discrimination complaints and designate at least one employee to serve as a Title IX coordinator to handle complaints of sex discrimination however Title IX regulations have never addressed sexual harassment or assault specifically or the need for due process Protections in Title IX grievance processes related to sexual harassment so as context for what this amended Title IX regulation does and does not address it's helpful to keep a few reference points in mind first the two principal objectives of Title IX are to prevent federal dollars from
114flowing to schools that deny students access to educational opportunities on the basis of sex and to provide individuals with effective protections against such discriminatory practices Title IX is not a Prohibition on sexual misconduct or a sexual crimes per se it's more about the funding second Title IX is directed at schools themselves not at students or faculty Title IX does not punish people who commit sexual harassment it penalizes schools that respond to sexual harassment in a way that amounts to subjecting students to sex discrimination third Congress passed Title IX under its spending Clause Authority and the Supreme Court has observed that this means that as part of the contract a school enters into by accepting Federal funding The Government Can Only Hold schools accountable for things that are within the school's knowledge and control fourth because
115sexual harassment can constitute sex discrimination under Title IX the regulation does not attempt to relieve schools of responsibility to address sexual harassment by permitting schools to discharge their response obligations simply by reporting the issue to police or other government entities overall the existing regulations prohibiting sex discrimination remain intact and the regulation adds new sections specific to sexual harassment in Broad terms the regulations describes three things one what constitutes sexual harassment for purposes of rising to the level of a civil rights issue under Title IX a a School employee conditioning and educational benefit or service upon a person's participation in unwelcome sexual conduct often called quid pro quo harassment or unwelcome conduct on the basis of sex that is so severe pervasive and objectively offensive that it effectively denies a person equal access to the school's
116education program or activity or sexual assault as the crime is identified in the Clary act regulations and this typically applies to colleges and universities two what triggers the school's legal obligation to respond to incidences or allegations of sexual harassment first the school itself must have actual knowledge of sexual harassment or allegations because the Supreme Court has held that under congress's spending Clause Authority the school can only be held liable for conduct of which it knows and has control under the regulation reporting sexual harassment to a Title IX coordinator will always give the school actual knowledge in K-12 schools reporting student-on-student harassment to any employee at that school gives the school actual knowledge actual knowledge means notice of sexual harassment or allegations of sexual harassment to any employee of an elementary or Secondary School second the
117alleged harassment must involve conduct that occurred within the school's own program or activity because Title IX by its own text applies to discrimination occurring under any educational program or activity receiving federal funds geography does not necessarily determine whether the harassment is under the school's program or activity rather situations are fact specific and schools should look to factors such as whether the harassment occurred at a location or under the circumstances where the school owned the premises exercised oversight supervision or discipline over the location or participants or funded sponsored promoted or endorsed the event or circumstance where the harassment occurred third the alleged harassment must have been perpetrated against a person in the United States affecting for example study abroad programs so for example when we have a program that might we just had a program go
118to Greece that would fall under this this is necessary condition because the text of Title IX statute limits protections to persons in the United States this does not mean that the district would not take appropriate actions If This Were to occur the district would take action under harassment and discrimination not Title IX because Title IX is about actions or inactions of the district and not that of individuals and the third is how the school district must respond schools must treat seriously all reports of sexual harassment that meet the definition of harassment and the conditions of actual knowledge and jurisdiction as discussed above whether or not the plate files a formal complainant excuse me whether or not the complainant files a formal complaint the regulation adapts the rationale used by the Supreme Court to hold a
119school viable liable under Title IX only when the school knows of sexual harassment allegations and responds in a way that is deliberately indifferent the regulation tracks the Supreme Court's Davis decision explaining that deliberately indifferent means clearly unreasonable in light of known circumstances the amendments to the Title IX regulations became effective on August 14th of 2020 and do not retroactively apply to instances that may have been Arisen prior to the enactment date and other very big change in this policy is the investigation process before the Title IX coordinator could receive the information investigate the information and make the decision of the investigation now there are a number of different levels a Title IX coordinator cannot be the investigator the decision maker cannot be the investigator or the coordinator so basically the the whole policy and process
120has been Rewritten so I just try to give you a really broad overview of why and what that means so this changes in 2020 and it just has never been updated correct yeah who's our coordinator I'm sorry who's our title name that would be me so this is um harassment and discrimination that we have a so this is what would be under Title IX this is sex non-discrimination we also have harassment and violence policy that would be suffered from this okay and you said this relates to sports and all of that as well yeah so I'm trying to wrap my mind around like all the different nuances of what this could mean so does this involve students that are transgender participating in sports activities with their identified gender or I mean only if we didn't
121if we didn't allow someone access to sports yeah but it would also address if any transgender students were harassed by other students if the harassment kept them from the ability to participate in a program um that's where the harassment and violence policy comes into place the harassment and violence policy is aimed toward the investigation toward the student or the staff member where Title IX is about the funding to the school district school yeah and I think it helps if you look at the last page with the cross-references and the legal references it's a lot yeah that's where it kind of connects you to all those other areas I think these cross-references are really more about the people whereas this is about the access and the funding yes yeah so that's the difference makes sense so
122since it's a new policy the next step is to bring it to a first reading to them it's not a new policy come to the board once questions would be asked maybe changes to be made and then the second time we would vote well are we able to make changes because yeah that's right on a lot this is all oh I'm sorry I don't I don't think we can leave right so right so the changes in this policy are all based on statute and I know that there's a lot um what I was planning on doing and you can all direct me otherwise if you if you'd like me to but I would bring this then to the next meeting on Tuesday I would go over this information on camera for the public and then
123you could decide to vote or bring it back for another reading okay sounds good yeah because it is truly strictly it is strictly statute yes with this many changes don't we have to have like a public comment session or open to the no not when it's based off a statue and it's just my opinion I don't think I'm going to be ready to vote but by next week but no I think for something like this this big and this uh a lot of changes I feel like first reading second reading yeah yeah I mean it's different if it's just minor changes like we've done in the past but I think the community had to be able to see and know that this is a state statute and then have um today so so my first
124reading this section yeah so then it could just go on an agenda item as a first reading and then you can do your blurb to the community and then we'll bring it back on July 11th to vote on it for the second reading perfect yep you're welcome [Music] all right Bill back to you back to Bill hope you're ready without your support well um part of part of the budgeting process every year includes our ltfm which we've got to go over separately so we get Authority both Levy wise and bonding wise so I have Damian Damian Nelson and John Jackson here they oversee both of these areas so we'll go through that in detail first we should have done this first maybe they liked the discussions it's gone there it is okay here we go
125okay okay so what the purpose is really twofold but the purpose of the presentation is to provide Board of Education suggested fiscal 25 and 26 ltfm project okay and you say well how about 24. well 24 is in motion right now we're we're 100 mile an hour doing projects over the summer so 24 is right now along with that we will show you a full 10-year plan is what goes back to the stadium that'd be a little bit do we have access to this I did not see it in any emails so no no this was not in the information so um our long-term facilities maintenance is something that's kind of changed over the years um where before we really didn't have any type of Maintenance money we just had a capital fund and that
126was in so ltfm is something that's come come up in the last approximately 10 years where there's now a way to generate funds directly just for maintenance of our buildings of course it's totally restricted any of these funds we either get Levy wise or fate Aid wise or bonding wise is only for maintenance we can't use it anywhere else okay so a lot of our we'll talk about it a lot of some of the projects we come across will have a new aspect of that project where we do have to use Capital opponents because ltfm can only for something we already have it's replacing like for like nothing new okay uh so maybe I'm just going to go ahead and hand it over to you to answer okay just one quick question before it's been
127how does ltfm get funded like if you get funded three it comes in three buckets okay first of all there's a there's a levy Aid portion comes in the general fund every every school district will say in Minnesota gives it it's 380 per pupil unit so it's it's sent the same way as our operating Fun Zone okay so when you say 118 it comes out of property taxes or no yes so absolutely so a component of our overall property taxes for a certain percentage of it automatically goes to ltfm yes okay and and that's one reason you'll see that has grown over there because ltfm has grown okay then there's a bonding portion in our in our building fund we back up we did a 30-year and all our maintenance in our business we had
128a third party come in work with us look at what needs to be done in our buildings and how can we afford to do it um yes just in time Kim you're amazing we're the sleeping bags okay anyway a company called emarasco came in worked with us we went through all of our bills we looked at every single piece of our building that needed it's maintenance and there's a there's a 30-year plan put into this place you're amazing timeline to take care of that stuff so of course you know as we go through sometimes something will maybe be a little worser that their time frame would be a little worse we've got to shift things around so you see small tweaks from here the witch projects got it okay um well it's part of the
129lesson okay we have a certain amount each year we put together our total ltfm class and there's three components we have Aid there's not a lot of money from the state of Minnesota but we do get some Aid and then we have that direct Levy which affects our Levy directly and then we bond for the rest whatever that is we come to the board we bond for a two-year period rest of that piece that we need and then all that is paid through fund seven through our debt of course it's something it's part of our tax yes so I guess an easy way to say yeah most of the fun most of the dollars that we spend in ltfm are Levy dollars by far the majority okay which we don't have a lot of control
130for correct okay so Levy dollars Aid the state aid no control uh except for maybe a bonding plan where we have to renew every two years every two years and right now the plan that I passed out includes the ltfm in that all future that we're planning to do is already in that plan so not something we have to add to that thank you good okay so funny categories um the state tracks where we're spending that money so we're looking at building envelope or roof or site projects electrical Mechanical plumbing they we split all that out and you'll see that here in a minute um and actually maybe I will before we go I'll just go ahead and hand this up as well anyway as it passes out at least this shows you the totals
131of the dollars they're being spent and there is a back side because this is 10 years and this is the plan that goes back to the state of Minnesota and they track how we spend these books and I split up in two different areas the top portion is our health and safety that used to be totally separate in the past now it's a part of ltfs and you can see that we're spending about a million dollars on a yearly basis in our health and safety and what health and safety means is health and safety of the building itself as it doesn't tie to our students really at all it has to do with the health in that building okay makes sense so at least I have this reference for you as we go through more
132of the details so now I am going to turn it over too guys and we'll go what we'll do is they'll go through details of fiscal year 25 and fiscal year 26 the actual projects we're planning to do and then you'll see remember these are more General in nature as they go for it so for a clarifying question when we did all the security updates and then one of the high schools the blue thing that would not fall under this health and safety because it's not it's not related to the building itself but if we wanted to like at a tornado shelter well I guess that's for the kids too so that I guess that doesn't count but if we wanted to add a new roof maybe the roof yes okay a new sprinkler system
133or something of that yes got it thank you something's bad with our sprinkler system we can replace this communal system with these phones okay and I think on that last side the thing to focus on is end of life replacement right the state has certain restrictions on certain items that say that it has to be x amount of years old in order to replace it unless it physically dies right so like a prime examples we've done a lot of LED uh enhancements throughout the district and there's still a few schools that we haven't touched and part of it is because the state says those schools are still too new that we can't take this money to put in the high efficient LED lights because it doesn't meet that criteria there's a formula for that right
134right yep so each item has its own different formula whether it's carpet paint roofs Etc again there's obviously emergency repairs and as Bill talked about how it kind of fluctuates a little bit like Kenwood Trail last fall the roof started Bellow on the on the first 17 000 square feet well that's an emergency repair because if we don't fix it right now and right then the whole roof can fly out so those are things that kind of get that's a problem we just finished the next year instead of pushing it after two years so that way it's on the same site when we can put solar ones so when we do our ltfm funding we really try to focus on two elementary schools at a minimum for interior refreshes a middle school and a high
135school now we are in more than that at once but that's kind of our basis so we can really try to keep up on everything so as you see up on the screen Century Middle School it's kind of at that age where everything's starting to show its wear and tear so the tennis court resurfacing is really bad at that facility and our water softener is kind of at its end of life so that's kind of the projects we're looking for there cheer review We Begin the first phase of the Interior refinish usually it's a one to three year cycle or two to three year cycle that we are within an elementary school for that kind of has about a size of what all needs to be done within that that includes paint carpet casework depend
136on funding it could include doors and so forth but Furniture where does that fall Furniture is strictly a capital expenditure that comes out of capital funding and it doesn't qualify for that that's one reason we have a hard time keeping up with capital expenditures for our furniture that we just don't have enough funds let's start seeing a spoiler replacement and playground replacement JFK roof and mechanical replacement Ken Kenwood Trail starting phase one of three of our mechanical upgrade Lakeville North continuing interior Services replacement and hopefully finalize our mechanical replacement for that building Lakeville South continue our mechanical controls replacement McGuire middle school again interior surfaces replacement flooring carpet lockers casework and mechanical replacement Orchard Lake last final year of the Interior surface replacement it's getting a huge overhaul this summer and then district-wide big number
137it's our asphalt concrete tuck pointing caulking we do have some salaries we've been there from our department that we fund with Professional Services architecture firms and then we obviously hold a contingency back because a lot of this a lot of what we see on the top lines is all summer work and then our contingency is for make sure we have money so if stuff breaks during the school here that we weren't anticipating that we can fix it or get by until the next cycle to be able to really replace it and the reason why those are kind of grouped together is because we do an evaluation as our team every year to look at you know does the asphalt need more than the concrete does you know a tuck pointing need more than other things
138and we really make sure that we're doing things that help service the buildings the faster that that money okay so so the the levy Aid and the state aid how much are we anticipating how much do we get well let me rephrase that how much is taxed where we don't really have a choice uh because we can't adjust that but what do we get in in revenue for for that is it 10 million dollars per year or well it's you see the number here yeah 15 million dollars okay the revenue piece to get 380 per pupil right well that's only general fund portion um this is the revenue side okay it's a little harder to read but I'll give you a shot you know at least even idea I don't know how many number I
139think it's about 15 school districts where we we are kind of the exception because of the size of our school districts we're able to do more projects than three hundred dollars okay so we have a lot of square footage we have a lot of needs that's where the bonding part comes in other smaller districts what do we get for revenue or what do we get in in the course of budget from our levies on this on the back side of the sheet I just handed out on line 46. okay you see that's the actual state aid we receive so that's not a tax item but we get 1.4 million dollars in state aid for next year okay you can see that we're that's projected out it won't exactly do that in the future depending what
140happens with our enrollment but it's going to be very close Okay the second number line 47 this is ltfm Levy in the general fund it's the portion that runs through the general fund you see it's about 10 million dollars and that's the money where uh we can't adjust I can't fix that we can't lower it it's like it's a certain percentage regular we just divided out ago we agreed to how we divide it out and then we put the projects that we can afford to do in that so we've got about 11.5 million dollars in Revenue so the other portion the piece that doesn't that isn't covered yet yeah that's when we come to you and we you know we're going to bond for some dollars we're going to borrow that money do the project
141and pay it back over a period for a period of time yep got it so you're looking at four more about four million dollars more yeah we'll come we'll do a two-year we'll do a two-year Bond at a time I think we're scheduled for about 12 million this next year I'm not sure what month we'll begin to you ninjas rates are starting to stabilize we might come later in the year because we might get a better interest rate if we came to this point why doesn't 25 it jumps up to 25 million instead of and then for seems to be a big jump between Iris the current estimate and then we work with ehlers we put this together okay so if we have somewhere else in that Levy that's going down then we're going to
142increase it here so our Levy stays as flat as possible so for our for our community we don't see levees up 20 down 20 up 20 we want it flat as possible so that's why you're seeing the fluctuation and we watch you'll see that when we bring that to you in September that When the Levy will be brought to you you'll see how we try to keep that as well as possible so then I might should be am I looking at fiscal year 25 if this is the fiscal year stuff or am I looking at fiscal year 24 for the fiscal year 25 stuff which I mean I'm looking at the poor team am I looking at 11 though or 26 million fiscal fiscals match okay right now we're spending fiscal 24. we're just starting
143the fiscal 24 school year yep and we always we spend on the front end in the summer time okay so when we come around we're just going to be starting fiscal 24. so 25 is the year after yep okay so this is this is the money for next year yes okay so then does that mean that we should have 26 million dollars versus you know let's take it beside besides these projects all the health and safety gets added on to those okay the amino go through the health and safety portion will be about a million so on top of this I think with his question is Bill is are we looking at the 1.4 million and the 25 million as the dollar amount of Revenue that we're going to be talking about these projects are
144going to go against you're talking about fy25 revenue and expenditures well we try to even though this will fluctuate yep we try to keep it as flat as possible yeah so because if we don't spend it it just sits in the fine in a fun balance and we use it the year after yeah okay so there's an extra million or two winning whatever it is it'll sit there and wait for the next episode So when you say flat as possible I said you try to spend 15 million dollars as consistent as you can every year yeah right well there there's a little bit of growth because we're seeing inflation so there is inflation every year you'll see us spend a little bit more each year more important and if you look at the other sheet
145you'll see that yeah and the expenditure side yeah okay you see that what we're planning to spend grows not you know super fast but it does grow right so so in fiscal year 25 when I'm looking at that where we should be spending 15.3 million but then fiscal year 25 AC 16.3 mistaken nope I see it obviously the 15.3 above yeah there it is so then am I so what are we generating 26.5 million dollars in lovies and in levied is that in the revenue in the revenue that's correct okay so we're spending less than what we're receiving yes okay but because our levies fluctuate our spending we try to keep that consistent but obviously it grows periodically because of our size and whatever work that we do okay so then all right so that
146helps thank you for the clarification so we've got 26 million dollars coming in and they were anticipating on spending roughly 15.3 million dollars and that's the proposal so then we should have a net positive of roughly 9 you know 11 million dollars of Beyond contingency in addition to the contingency you have being done am I confused you guys follow me yeah but I think you're missing some health and safety dollars and a few others there's more that goes into this yeah yep because you have 16.3 so yeah there will be more funds than we spend in fiscal year 25. okay which is good because then in addition to your contingency when something hits a fan you've got five million dollars you have something to fall back okay can I ask a question related to the
147interior surface replacement no is that like carpeting or is that like Locker Bays like what is that actually relate to yep so it's May month school it's carbon replacement um casework within the classroom sinks cabinets and Locker replacement so are there things that like um thinking about that we live in a state where there's winter a lot of the time and um what's like the efficiency of having carpet in our main hallways like is that something you guys have thought about like replacing the carpet and just doing like so we've started to introduce over the last five years yeah use a lot in healthcare I mean it's been education forever so we've been inside that in our main corridors in certain schools that have blocker Bays inside the classes for so for example when you
148Elementary School yeah we'll actually have a chunk of rubber flooring at least where the lockers are those kids put their boots Etc all that can be wiped up a lot easier without the carpet absorbing it right it producing anti-slip yes right well and then carpets you know the maintenance of that especially with boots walking in those main hallways like I just think that that's a lot of like cleaning and um it's actually like harder for students like in wheelchairs or that have um you know afos to walk on carpet like it's sometimes the other flooring is better so just curious yeah we've actually tried to build kind of a two-step process when you come in you have your really kind of more abrasive carpet right in the best field so that way you can come
149in and collects much so that's what he said it's still a little more gritty than your normal classroom right to try to get that last little bit so hopefully we'll get on to it they'll bring in the last and less salt into the squeezers okay yeah I just I'm thinking about like some of the new additions that we've had like at cherryview it's it's like that section isn't carpet in the hallways so I I just didn't know if they were thinking about replacing now throughout the other buildings and so uh I guess to back up a little bit try both we did an interior master plan so we had the principal groups in in custodians and really looked at what that was going to be and that was one factor that came up and so
150that's our standard with it always traditionally thank you any questions on the slide before I move on and something like solar panels I think we found out earlier today at the High View can only be done through grants or something like that is that right well so the company that we work through ideal energies they typically get work through certain grants that benefit us and them because they give us a guaranteed payback when they put solar on our grills and then it also depends upon the utility company that they're working through because XL Energy is a private company whereas Dakota Electric is a co-op so they're pulling utilities from other areas so there's not as much opportunity for them to give us a incentive to pay back because they're also having to share utilities so
151they kind of focus on where can we put solar on to benefit the school district and so they run with that in a certain opportunities in Federal grant state grants come up they approach bill and I and we look at what Roof Systems are the appropriate age to put that on so we don't have to take it back off to replace them yeah we use that Grant system I mean we could just go out and buy solar panels that's fine but then we need the funds okay so we use the savings to pay for it and then once that once that debt is paid off then that total savings yeah it's an exciting time along the route of savings and so everyone knows a lot of when we look at a lot of these projects
152to you and do a lot of these mechanical operators we attack and approach every single rebate process if possible that the utility companies offer so if we put a high efficient boiler in and they're offering us a rebate we we go after that and oftentimes we get anywhere from 50 to 150 000 a year back in rebates just based off the high efficient products that we're putting in do we currently have a balance in this account yes okay of how much okay do we ever work for grant money is like the indoor air quality grants that are out there and stuff or do we go after those yeah we have applied for a lot of the grants that have come out um our school district typically doesn't qualify for them based on a lot of
153the requirements that we've offered but we have applied for several grants that come out or HVAC HVAC Renovations roof Replacements anywhere we meet the criteria we submit paperwork for it and they're going to give us money we'll take it um so FY 26 so I'll first off just note that obviously we're at 16.2 million dollars rate of inflation we're trying to get that up notice that we've had to scale back on you know what projects we do each year and we prioritize that um you'll see a lot of the same items so essentially again like I mentioned is starting to finally show its age so we're starting to be able to get in there we're finally reaching that area with the LED replacement um at that point it's going to be just the gym and
154the cafeterias the places that are really causing us the pain right now before we approach the rest of the building chair review phase two is into your service replacement ECU starts as first phase of the interior replacement Kenwood Trail again phase two of three of the mechanical replacement in the building envelope so I mean just to give everyone a perspective Kenwood is about a six million dollar project so we can't just afford to take that out of one year and just say hey we're just going to do Kenwood because we would miss out on a lot of other projects that are our needs Lakeville North again more interior surface replacement mechanical replacement we have one little section of roof replacement left there not much and then Lakeview finally comes in that cycle as well interior
155surface replacement Maguire continues its interior surface replacement and then Orchard Lake comes back around for its playground replacement and mechanical replacement and then again our district-wide items asphalt concrete tuck pointing salaries Professional Services and our contingency when you're talking like the playground that the actual equipment or are you talking about like the the pavement or the chips or typically it's the actual equipment okay so when ptos are like raising money for that across the district do they just don't need to bring that cost down for the district it's easy a 50 50 isn't it well it used to be but yeah they have a donor a community donor that's offering to donate like forty thousand dollars wow they have a charitable golf event that happens in last year's money plus sisters money they want to
156donate but they really want to make sure it's inclusive which is great and that's what we're striving to you too so we've actually started the planning process a good pretty much seven months in advance of what I normally wouldn't even start the process because they want to show their stakeholders that hey you know here's what you invested here's what you donated for and then the PTO looks at it and says well what can we do to enhance it as well because they know our money's stuck at that number we really can't go outside of it too much and to Bill's point is we got to replace life for life within reason so we can't just build a bigger and better playground in more land because the state says we can but it usually the way
157the process works for playgrounds is we'll sit down with the principal and then their leadership staff and then PTO is usually invited and we'll talk about you know what do you like what do you don't like and make sure it's inclusive of all the needs and then we bring back multiple renderings so how do you make that make sure that's kind of Equitable across the schools in terms of I don't know I know PTO has raised different amounts of money that's pretty hard yeah yeah I mean so the things that the ptos usually provide are outliers um pretty small pieces and so it can't really make it Equitable and it also depends on the size of what you know piece it fits like JFK we're actually taking the two playgrounds and making them into one
158so we can do different stuff because we're using two playgrounds worth of equipment whereas ECU the PTO actually bought a playground several years ago right that's in great shape we're not touching that so we're just replacing the original one so again we can look at different stuff because that other playground provides stuff so it's hard to look at it even as a donation aspect from from the ptos to make it Equitable just because each scenario is different and I think like Orchard Lake has very limited space right and there's things we've done like Orchard Lake got new swings yeah I think is when we put them in so we don't need to do that part so that part sits still yeah and we don't touch it we actually go and replace the rest of the
159playground so we try to make sure that we be inclusive as possible of the items we put in and you'll see the common commonality as you look at like when we show the renderings at the other schools we're like What do you like what you don't like that most schools most of the same playgrounds pieces because everyone's attracted to the same thing I got balls of all the rage these days thank you that's all I hear about Gaga Ball I played with everybody but that's what it is any other questions on sy26 . all right so I I want to do a logo it's right out though um a little piece of clarification on this is that the guiding force of health and safety truly is OSHA occupational safety and health regulates a lot of
160the things that we're required to do and you see that in some things like big big agencies State Fire Marshals offices some things that drive stuff we have to be doing but there's also a level of liability that exists in schools where you see non-typical occupational things show up and one of one of the big expenses I'll talk a little bit about this is playgrounds we just talked about the replacement pieces of it and a good example is when we have some of the PTO groups find a way to get equipment into the playgrounds which we love is now we can account for it now it's in place it's it's in there and and I can manage and monitor for any wear and tear repair services those kinds of things but what I can't do
161is put in new pieces as much as we want to do that there's a lot of stipulations within health and safety that drive the inability to just go say we want new stuff there new stuff there new stuff there there's a lot of language within all of the the finance codes that I operate under that say you can specifically do this but you can't do this and you see it in things like Department of Health violations and getting up to code like you can't install new stuff you can't put this type of equipment in but if they write not citations but if they find deficiencies you can fix those specifically so there's we're always navigating in and out of all these sort of requirements and things that regulate that for me but what I would
162say is I'll walk you guys through this and what I was hoping to do with this is just give you some perspective on there's a lot of things in health and safety and certainly ltfm that it's not necessarily taken for granted but it's stuff that you sit on bleachers out on a stadium and you assume well they should be working they shouldn't have holes in them they shouldn't be cracked they shouldn't be cutting people we have to monitor and manage those that have them inspected get them certified every three years so there's a lot of little things that are out there that we're making sure continue to be observed and monitored and watched and fixed where needed so I want to walk you through a few of these physical hazard control playgrounds pools bleachers really
163this is the overarching ocean compliance things where when you identify there's a potential safety risk and we need to either get resources to them or particular pieces of equipment that's definitely need to make sure that their environment safe we can get them machine guarding if you don't know what that is stem has a very high use of potentially dangerous equipment it's really changing from what I was used to when I was a kid with the saws and things flying all over the place but but that being said that's where you see a really high student use that's not really staff aren't having kids crowd around like I'm the only one that's going to use this the kids are hands on but that we have to pay special attention to on what types of safety mechanisms
164we have on it the way they stop the way they're powered all kinds of regulations so we're bringing in new equipment for stem overhauls or if we're buying even sometimes used equipment donated equipment it has to be reviewed and looked at to make sure we can use it it can conform to all the things that we need to have it do food safety I talked about that elevators lifts and hoists from inspections to service monitoring repair I talked to PPE already approving and addressing existing safety hazards we I guess Heidi and I who supports me as well we spent a lot of time with EMC Insurance so when we have Accident Injury reporting come in we're helping look at is this preventable is this something that was missed is it something we need to address
165is it uneven concrete to playground equipment that may have caused it and then figuring out how do we address it can we address it and and one thing I didn't touch on in the beginning of this was we spend probably sick we account for about 60 percent of the health and safety budget is just a standarding operating cost knowing that we have inspections we have repairs all the things that need to happen throughout the course of a year we need that contingency because we support ltfm as it fluctuates as much as anything especially when you look at I'll give you an example of this this is going to show up a little bit later but I'm going to tell you now we've been looking at the ventilation at JFK and that's a pretty significant project
166as it relates to all the duct work that runs up and down the hallways there's joints on each of the pieces of ductwork to connect them that are known to care or known to have asbestos so we have to do an abatement just on a seal gasket and that means contain it seal it dispose of it it all has to be handled a very specific way and that's a huge project if you imagine ductwork running from end to end in the building so it's things like that that will pop up where we always have we're always supporting the ltfm so when they're working on their budgets we start looking at removing fuel tanks is there an asbestos concern are there other things we have to be mindful of that we're going to account for in
167the health and safety some of which will evaluate and test on our own but it often instances will have to bring in some of the vendors contractors that we know that do our testing and support next is hazardous substance fuel tank removals uh you know those these are the underground fuel tanks that drive some of our boilers and generators in the event that there's outages and some other things we're working to get rid of those but they still exist in some in some locations lead testing a real big one we know kind of the momentum that things like lead and water testing and radon have become in uh kind of standards in schools either you have to adopt what they've said they want done or you have to develop your own Five-Year Plan which we've
168been doing we just finished up results for both of those over the last two years uh let's see radon testing and Remediation stem and exhaust back the back systems backflow and drain prevention hazardous waste inspections permits and removal so if you imagine all the day-to-day operation of the LED transition that we made was really significant also to the amount of waste that we were generating because the life expectancy of these ballasts and Bulbs is pretty short certainly compared to LEDs so we have to coordinate every year to do these Mass pickups and you know we're easily easily a semi trailer with old bulbs and all these things and so you look at the impact that has on the greater scale of things the environment but also what we were pushing out of the buildings and
169using replacing the energy in the work that goes into those that workload pretty custodial it's pretty significant but Dakota County regulates um all of our sites if they generate waste and they put you in classifications to determine how much wasting you generate what type is it they permit you accordingly and then you have to have inspections to monitor are you following all their expectations for the type of waste you generate health and safety Environmental Management things that fall into these categories AED equipment and supplies those there's a shelf life they're pretty expensive to be honest with you so we're constantly making sure that those are up to date usable ready three-year asbestos inspections vendor support and systems consultant Services science and lab compliance compliance training support systems that'd be like online software that we use
170we have contractors build out some things for us like safety data sheets and all of our chemical management that's housed in this particular spot where custodians or primarily the custodians can pull up if they're cleaning a spill they're looking and using certain chemicals they can see is this hazardous what do I need to know what's the right equipment to be wearing so asbestos that's that's all things asbestos it has its own category I think what you might be interested in knowing is we have six buildings over 15 that do have and contain asbestos that we know about their monitored and reviewed on six month intervals and then every three years there's like a master excuse me master review and that's a detailed walkthrough of every specific area again the periodics are just a little bit
171faster we don't have that much in the six schools but they're all of our our older ones that you probably expect and ALC happens to be one of them so obviously the city is going to now have to pay attention to yep if that if that goes through in that direction that would kind of become their and it was voted on so it's done oh good and it is theirs okay um so Fire and Life Safety is really a pretty big one um this is another sort of one of our bigger expense area that we have so annual fire alarm systems wrinkler inspections repairs State Fire Marshal orders resulting from the inspections fire system Replacements Renovations and modifications and upgrades repairs and then the hazardous material storage I would say that a good example of
172that is when the decision was made to move the alc there is a significant amount of infrastructure that needed to be put in to turn those Open Spaces of locker rooms into condensed classrooms that now need to meet all the criteria per the fire code all the other expectations that we have so that showing up would be a significant we're going to be replacing the head end panel we're going to be having let them come in and do all the infrastructure work so those are the types of things that pop up that are a little bit unexpected in timing sometimes but that we have to have that contingency plan for indoor air quality mold abatements any anybody who's been around I think for over five years you can probably remember what the mold situation can
173look like in the event that yeah it was so bad it was really bad yes it looked like a skeleton in the basement yes but he hadn't seen it could pictures uh but and Bill already had talked about this but just from a like a state revenue generator we uh we get about a million dollars a year and we stay pretty close to managing and expecting to be able to use that to take care of some of the upgrades and enhancements that we want to do now and the ltfm spreadsheet you saw some expected things what buildings were getting certain things we do have some of that and over the course of I'd say uh the last five years at least that I've been here we started to look at some of the things where
174we want to get common making sure we have like systems consistent systems for a short period of time we had three different vendors that either monitor or serviced or installed stuff for our fire systems and it's it's it's really not efficient and effective and frankly kind of confusing so we're also managing building specific projects to make sure that like ltfm we're addressing what their needs are and of Life systems and equipment but far more than you probably wanted to know about health and safety but at least this is a little Glimpse in all those things that are moving and expected to go into a building and say well I didn't notice anything because it's the way it should be it's we're using this to make sure that we're addressing those things and it's a good
175safe environment for the things that kids use for how the staff operate do their day-to-day functions so that's that's my part are there any questions on that I'm just glad you're in the compliance what's that I'm just glad you're in compliance because we can get individually sued so I don't want that yeah that's done is there anything else on your wish list that you would love to do if you could I mean obviously this is a two-year plan is there anything that you'd like to accelerate or just do the current economic conditions it's so expensive to accelerate those things cheaper in two years is there anything on the list well I mean ideally there's there's a lot I mean like Kenwood Trail I'd love to be able to do that in one main street because
176because people building offline for three years it's not you know it's ideal right but you know touch Century so that way that stays open while we're doing that um you know the hard thing is is really just be combining some of the projects to shorten that life cycle but even that we've experienced doesn't fit our little two and a half month construction cycle there and then we had a chasing time and teachers are trying to move back and we're still tearing off paint on the walls and our tape on the walls you can only do so much yeah that makes sense I would say that becomes the challenge because this is every every team in school districts out there is you know you're jamming around peg into a square hole in that time of the
177timeline that you have we'd probably accelerate a few extra projects but we only have so many resources to throw at how many buildings can you shut down and do all the work you want to do so a lot of Summer operations and programs it you know so I asked because uh so I appreciate going over the financials just a little bit just to talk through my understanding you know you've got about nine million dollars right now in ltfm you've got about 16.3 million that you're projected to do for 24 for 24 25 but we're bringing in about 26 so you've got about 10 million dollars in potential extra funds in addition to the nine that you've got so you've got roughly 20 million dollars hopefully by the end of 2025. and so as I'm looking
178at the list here you know you've got additional Revenue coming in in 27 28 29 which is about you know four million dollars in extra savings uh per year from what you're anticipating spending all the way to 28 like you could have almost 30 million dollars in the bank by the end of by the end of 2028 but assuming if the math is super you know correct so well um just one caveat just um you can be expenditure side we do okay then I have ehlers work on their on the revenue side and I got this five minutes before okay I asked for it last week so I'm thinking we have to go back and look at this tomorrow because it looks a little high yeah I mean you're jumping from 10 to 25. yeah
179so we will I'll take care of this tomorrow I'll send out a new sheet and uh so but you do need a little bit of a buffer yeah there's there's always five ten million dollars in the fund balance yeah to take care of what we need to do for contingencies like when a pipe breaks at cherryview in the entire body that's very common yeah you'll see that from the end of the year we see the audit there'll be a there'll be a ltfm line that's got it is this one of those funds that don't let us have more than a certain amount in it as well there's quite No Limit okay no limit on that but this is a little bit so okay I'll take care of it I think from an Optics point of
180view when we go you just cut seven million dollars you're doing about 15 million dollars in renovation to the property we're gonna go to the levy and ask for an additional you know 250 500 per people I'm just you know when you got a new playground that's being built the community doesn't know after 10 years you're going to get it we're gonna have to replace it we're going to replace the interior of orchard Elementary Schools closer different funds exactly right and so we have to spend it right you know right that's the only thing that we can use it for so I'm just suggesting I'm not suggesting anything I guess I'm just acknowledging that we're doing improvements we're asking for money we're doing improvements we're asking for money so in certain groups we can't move
181things out correct so there's a little bit of Education that that uh and it's hard to do I mean like hell I didn't even know this stuff until 30 minutes ago so I'm sure you you have to think about like as you communicate with the public what are they what message are they going to connect with because they feel like you start to talk about fun balances and different funds and you lose people like at about 10 seconds out so it's like it is uh I mean I remember when we were learning and asking questions about can we move certain money that you just can't and so it's just this pickle were caught in but I totally agree but I'm just saying that you're saying yeah so Matt like the elementary you're putting up a
182new playground but yet I have a text Lobby and they want you want to increase my taxes 250 bucks a year like what what you just put a new you just put a new playground so we get up we're up against that every time we do love your referendums because we had successful Bond referendums and we were doing a ton of facility upgrades the turf and all that kind of stuff and it just becomes part of the messaging about what we can spend money on and what we can't spend it on and that this is the bucket we're looking for yeah because I think that people nothing new for us to deal with no I think people like come to expect in this District that everything looks nice but like I heard a lot about
183the Dom like the Dom was bigger dong was done cool like those huge expenses it's like the lots and lots and lots of money but we also have 75 of our kids participate in co-curricular so that's very exciting right absolutely oh it's a good thing yes for that right so great all right keep moving on thank you good job thank you thank you okay hey Damien he's we also talked about doing a tour of the security and we'd like a 3D tourism security system if Kim can throw out a date like she did here we could do that [Music] oh my gosh [Music] you're like I just ate lunches for sure thank you oh I'm sorry Carly I meant to wait on you again and I forgot save too many popcorn that's right other way
184around the language no you're just getting this oh no I ordered breakfast [Music] come on guys are we still on the budget yeah oh [Music] yeah separately it's required [Music] okay worked up there so I just want to make be clear because it's after 8 30 and I want to be um aware of everyone's time and consideration as far as we've had a long day just because we toured Highview Elementary before this um so I'm thinking that we can end after the budget review because Bill's still working on we probably have some questions with that and we can continue with items D through H at our next working session no sounds great sounds good oh what your budget they're all budget their budget and then and then these guys are the users okay so we'll
185do user feed people we gotta do this first we have to finish the budget can we talk about public engagement because I'd love for that to be incorporated as soon as possible versus nine there's no way we've already talked about that several times so we can put that on to another meeting and I think we respect the people that are here I'd like to do the public engagement today so well we've talked about that several times already so what are we doing with it we've already agreed to leave it the way it was and to talk about it we did not agree we talked about we talked about yeah Ryan we talked about incorporating into our goals discussion which is all right we talked about please Brian we talked about putting it into our goal
186discussion when we do our assessment and our board goal setting is that we agreed to doing that is there someone here that's going to talk about transportation I had the information that won't be super long but it'll still take time all right so let's move that to next session is that okay with you yeah all right and then Dave are you okay if we pull board compensation especially after what I saw the other people all right perfect so then we just have the alc update is can that be moved right yeah okay um that's actually relatively short but okay all right all right so we've got two we'll see where we go from there what do we have left we're finishing the budget review right now right let's just finish the budget review let's see
187where we get okay go ahead okay yeah we have a little battery problem so I got a helper to click us through so tonight we're going to talk about 24 budget batteries um so we want to talk about our Revenue changes we're going to talk about our expenditure changes and of course a fund balance projection especially when it comes to our general fund but we will talk about all our funds uh briefly I will need to bring this to you next week for approval to go into fiscal 24. okay again I just I always like to show this because 99 of the funds that we receive are based on the enrollment that we have in our business um if you see here I did update the 23 number this is what we expect a number
188to come in at we haven't got the final yet from the state of Minnesota we can see we're up to 11 8883 so we had over 300 student increase in this year that we've that totally surprised me for 24 I left it at 120.77 just because that's what our projection is but I do expect that to be a little higher of course we won't know till September but that'd be positive because that'll generate more funds for us who does your uh forecasting your projections our projection we work together with Teamworks okay on a mapping program we use with them okay next slide please okay let's talk about quickly the revenue and what's really changing so the state legislature of course gave us four percent this next year as the most I've ever seen ever in
189my lifetime usually it's two or less so it really is a big deal the generator is three and a half million dollars our growth you look at those 200 new kids about two percent uh going into next year that generates us a 1.5 million dollars special education the regular increase there is about uh seven hundred thousand um of course we've got the special ed cross subject again something that we first time ever seen ever this is really is a pretty big deal but it's it's six million at this point in time um tuition I just want to briefly talk about this for many many years what happens with special ed tuition for kids that we have to go to other school districts that we get charged tuition for those kids that are our kids that
190are somewhere else and what happens is that whatever that cost is comes off of our Revenue in special education okay working with Paul Farren from mde he's our he's our he's a special ed girl when it comes to especially okay but we can generate a little more funding if we pay for our tuition with federal funds so we're going down that trail small amount this year a little well one and a half million next year so what will happen though is we'll see that in our books which we haven't saw before what was that different this is just tuition yeah tuition it is tuition it can be tuition there's two ways money goes goes to nine seven times it's also kids that are enrolled elsewhere that right that costs are built back yeah we you
191know when we get our report from the state I mean it's 20 pages long I mean they're all over this database um anyway 1.5 million dollars will be transferred from using State funds to using federal funds and because of that we're going to see it as increased revenue and we're going to see it as increased expenditures okay just don't make that note or the reason we see some bigger numbers makes sense okay um Levy inflation as you know we have an inflation factor in our Levy so we actually are seeing a 2.8 million dollar increase in our Levy from the year before just because of the increased inflation and then a growth of course that is the new kids that we have is going to generate another million dollars Mrs Levy's already in place okay
192Capital where's the handed by one point million 1.2 million dollars increased Capital again these are restrictive funds we can't use them for anything except Capital Levy half a million dollars there's many many items that we have in our Levy that are restricted you know a half million there and then we have other restricted funds about 3.2 million dollars that's comp Ed a few other things Federal and local is actually going down main thing is covet is we have to use all our funds up and we have a few funds going into next year otherwise everybody has to be used this year so those that revenues going down and when we look at our general fund side on our local side the interest that we receive for funds that we have of course is going less
193because we have a lot we have a smaller fund balance so we have less money to invest okay next slide we pull that together and actually the the Levee the budget book that has handed out to everybody this information thank you it's a big gem yeah big jump what we was talking about so when we the page before that total was over 19 million there's 195 include the additional 1.3 in in the funding for the new elementary school or no okay so this is just that's a 25 it's a fiscal 25 need that we have got it okay the building's not open yet okay and the 195 that includes the the additional 200 people 200 students that you're anticipating this is everything okay so again our local other you see is down a million dollars
194that's because we have less money invested that's most of that's an interest decrease sources that's where we have some big increases that four percent on the formula and that full six million dollars on special education so those are the two big ones by far the majority of that number that is there property tax is up about eight million dollars again that's the inflation piece on the operating levies there's also some increased LTE abandonment here which is restricted so that full 8 million isn't available to use an undesignated areas of our general fund which I just want to see the full picture and then of course Federal sources that's covered that's going away down 1.2 million dollars now if you turn to page eight and you see on the revenue area there they're 23 and 24
195are these two numbers okay so our our new number there is at 195 67 671 000 in revenue for fiscal year 24. hey if we didn't if our student count doesn't increase 200 that we're forecasting how much is that a million dollars in Revenue that would that would I think it was one and a half one and a half okay it's considerable yeah now especially now that even the elementary kids now are generating over seven thousand dollars okay okay here now let's move to the expenditures again the same page page eight right in the middle of the page okay well actually I want to back up because that's the object level I don't have that in the book but we'll look at the program level as in the book and here in about so you
196can see the salary we're up 2.6 million dollars we're going into next year so that's all the increases that we've uh are estimating for different people's salaries I can wait um benefits you see it's up three million I've made a kind of a list there of things that's affecting that three million over the course of our health insurance increases for our staff this next year unemployment now the unemployment we talked about that we need to cover now because of the new legislation that's not in here we really looked at that and we're covered I think for the first year from the state of Minnesota next year then a year after is going to give us a problem because even though they've set some side some money aside for special education fairs anybody else is not
197covered so it's all our food service anything in community ed all of our staff that's not special ed that's going to be a 25 issue um okay work comp again we we've been fighting with our workout we're making some progress making it a little less expensive but we're comp's a problem we have a lot of a lot of people that uh especially in the special ed area not the pick on Specialized but again they get hit by kids they get kicked by kids and there's injuries that happen and that all falls in that work time I do too and then Severance we had a little a little higher actually retirement this last year with our teachers which when we looked at trying to find some funds earlier on you know we didn't have many people
198step up but when they got closer to the end of school year we got a lot of retirement so there's some increases there to our severance services up about four 4.7 million dollars of course that's uh utility our Sr Ros we're seeing some increased overtime for them and we didn't have budgeted in the past so we haven't put that in a little bit some increases in our insurance for transportation you know we have some increases there here's the special ed tuition again it's it's an increase of 1.5 million dollars but we do have revenue for it so it sort of shows an increase here but it's nothing to be concerned about because we have the revenue to tell you some costs consider continues to be a problem we beefed that way up this past year
199we talked about that with the public how that went up 1.9 million dollars well right now we're over budget by six hundred thousand dollars when it comes to ourselves and it's starting to drive me crazy so that has been increased for next year just just lay it out bill it's one of those things we have no control no control okay um we're not supplies materials you see we actually that's the one place where we did Make Some Cuts to our buildings um if they're building some of that it's like six hundred thousand dollars less district-wide so not a huge number Capital expenditures now this is if you remember the device led me from last year we talked about how that increased our budget by 5.3 million dollars I believe it was well that came off
200okay so that's why you're seeing a considerable Savings in this area and then other expenditures have an insurance piece there that's a small increase but it really is zero when we look at it at a million here so our increase in our expenditures 5.6 million dollars so that's to be expected since we made cuts of seven million dollars okay so looking at your your book here you can see that once we put the sale of the alc in that are not changed there and from balance is at 2 point about 2.4 million dollars so that's very positive looking at the last few years we saw a lot of negative activity in our fund balance so end of year we're looking at a projected fund balance there 3.9 almost 4 million dollars but it's not a
201huge increase but it is a full one percent increase and then something else just to let you know we have built in a one percent contingency in this budget because we do not want to be short ever again so where did we get to the end of the year we don't have the Ted Tech contingency that's another two million dollars okay so I can repeat that so that at the end of the year the fund balance could be 4.5.9 so yes okay okay if you look on page hey nine can I go contact one of the expenditures the the 2.6 for the salary how did you get that because if all things are just looking at like how do we get to an extra 2.6 million well we have about 1500 employees that would expect
202to give an increase in pay two okay so that is new salary and salary increases there's a handful of increased staff because of the growth that we're seeing especially at the elementary level so there's increased Staffing we're only adding 200 more students right how many teachers do we add how much staff do you have for 200 more well we put about 20 25 students in the class but 10 more staff yeah and that two million dollars that two million dollar change is the number that we've been talking about all along talking about what the state was going to be giving us and how much was going to be gobbled up but just by increases so that's the same number it falls right in line no benefits a little higher than I would like but there
203are some increased costs this year to put in there any other questions you got in that area no can we get the next slide because we'll move out now we'll touch on the looking at it instead of the object level look at the program level so Administration you're seeing about it overall district-wide about a hundred thousand dollar increase you can look at all of the employees why is that because of the increases to their salary salaries okay I mean it's also the benefits it's everything that goes on to an employee okay now the district support services this is an area where we made some Department reorganization a lot in the deal so we're seeing a decrease here overall so there's also increases the people who are left are getting increases okay um education Elementary and
204secondary education here we see an increase of 2.4 million dollars that's a both in our enrollment growth and our sub guys vocational about the same because we have a couple more Junior employees this next year it's a little bit of a savings there special education again this looks like a big number remember 1.5 million dollars is there is a tuition change really take that off and talk about the increases especially instructional support again this is a device layer you're seeing a decrease here because five million dollars came off of this because we're not we're not we don't have a new lease for devices in this next support the biggest piece there is our transportation contract sites again this is our custodial salaries of course the ltfm that's being added to that area the general fund
205that doesn't fit about six okay and the insurance about a hundred thousand dollars so again our increase of 5.6 million dollars on the expenditure side in the general fund yeah okay now here's a look at the fund balances you see that this past year we're expecting the end up or they're unassigned to 2.1 million dollars and that should push up to about 4.1 and then like I said there's also Clips on Ken just contingency so I see this very very conservative budget I expect that to be higher okay next slide please so here give you a look at that fund balance what's happening so at least we've turned that corner um but of course we have to get that built up over the next few years where it needs to be but we're moving in
206the right direction okay next slide now this gets pretty busy um this what I'll do though is I'll walk through each area through the book so you can see what pages I would turn to Paige can h10 is the second line of this chart okay so it's our it's our student nutrition fund you see some changes here as we're moving to free lunches for everybody our local goes way down because we have a lot less people paying for lunches there's still an A La Carte option lots of our high school kids buy those meals so that's still there but instead of three and a half million it's only 1.2 is our best projection at this time now Federal sources that's our freedom reduced reimbursements and then of course the state's going to move way up
207to almost four million dollars on the free lunches that they're going to cover so total total revenue there are seven 7.9 million dollars with expenditures and 7.5 we see an increase in fund balance there of about 380 000 so again this is a very healthy fund balance of two million dollars we're not we're not concerned about this fund see this past year um you see that negative number well that's that's two pieces first of all it's the money that we use in the new building for equipment costs for food service and because of the huge increase they had the year before there's a there's a profit sharing piece in student nutrition we don't see it in any other of our contracts but they had a pretty good payout so they were pretty happy last Christmas
208but that's one reason that fund balance is going down okay next page 11 that would be the third line up here that's going that's Community Ed um moving now to about 9.1 in Revenue and a little over nine million dollars in expenditures with an increase their fund balance of 58 000. so that's relatively small they are balanced during covet they had a difficult time with a lot of expenditures without Revenue so it's going to take them some time to build that back but they're back moving in the in the right direction foreign that's our building fund again on a lot of money that's going out of this fund this this year more than again you see that there is a sale of bonds there are 12 million that's we will bring that to you later
209in the year and that's for our ltfm funding for a two-year period so you can see and then using the funds for the new building see you then overall the net change here decreasing about 10 million dollars in our fund balance so dropping down to about 20 million of course that's to be expected because we are spending a lot of a lot of money on that unit moving on to page 13 is our debt service fund here you'll see a decrease in the fund balance every year we're allowed to Levy 105 of what we need because not everybody always pays their tax or at least not pays their tax on time um when that fund balance builds up a little bit because the funds that we really don't need then we give it back so
210that's why you're seeing a negative one million dollars it's enough fund balance because that's a decrease in our Levy foreign [Music] so the next couple pages are just information is the debt that we have on going to page 15. this is our agency and Trust not much happening here this is our scholarships these are funds that somebody has donated to the school district where we only use the interest earned for scholarships the principal stays intact any other funds that we received as a donation on a yearly basis that all runs through fund one so here it's only interest earned that gets used so about 10 that's about ten thousand in ten thousand out again we have about eight hundred forty four thousand dollars invested in that fund for the kids future scholarships internal service 816
211that's our self Insurance both dental and health of course our our Dental really hasn't changed over the last few years what we bring in is what we spend we haven't had an increase in any type of premium for our employees so it's all good we're still very healthy there self-insurance for the health you can see we're looking at the increase for the next year what that premium will be at up to almost 30 million dollars of course at this point we just expect that we would pay that off in claims but we use usually increase that fund balance by a small amount on a yearly basis once we get up to a good hard 20 25 percent in that fund balance we'll be able to control some of our premium increase a little better but
212we're not quite up to that amount yet but if you look at this is only going into the fifth year we've gone from the zero fund balance to almost five million so again that's working out pretty well it will help us in the future okay um after that p17 agility a breakdown of our revenues a little bit new idea where they come from instead of just a big number and then we have our Capital listed in here now so with that said are there any questions thank you I think I mean just overall I mean we we made the cuts we had to do to get the come down moving in the right direction we'll see that in that graph where it's going up at least one percent but I think it's going to be
213closer to two we'll watch it we'll watch it very close my preference would be to to million and contingency into the fund balance I know that you're showing the 3.9 I rather have it show a 5.9 and if you happen to go over you need those funds you come back to the board and we'll adjust the budget unfortunately but your your adding two million dollars in additional contingency into these various different categories is that how I'm understanding that's adding it is contingency but it's not an adequate we do run a contingency in the budget every year this might the more closer to a half percent year that we're in it's been very tight very close but when we increase it by a half percent some contingency and they're based on the fact that that actually
214the students are actually here so we're just kind of guessing on how many well I guess I say that too we will bring everybody's budget to the board it'll be in January once we get through the end of the year audit gets completed we get the new Levy ready like Christmas time and then in January I bring everybody's budget too so together we can talk about that again at that time we're going to have a lot better ideas on who we exactly hired where our salaries are actually at we're going to know our student count better and knowing what the weather will be so if we if we have 11 800 students what did we like when did the 200 come I mean what is it what's what's like the historical Trend do they come
215over the summer do they come throughout the year like if they come out through there right I track it every every single week actually sis sends me a new report one two every everything that's true and so again so those 200 students join and they go to our school for so many days or so that at the end of the year we get we get paid for we get revenue for those students the way the way the revenue works and the student account because we we put in an estimated to students which will be what was ever on our projection and they pay us off so if if we have more in the year of course we're going to get paid more yeah we have less than we anticipated that's one reason though we don't
216get our final payment to weigh into October okay late October because they want everything final before they give us our final funds so the money really shows up over 15 16 a month period any reason how how we got 300 additional students I'm like like what kind of forecasting because you're anticipating only what 200 more this year but we got 500. we're anticipating over 250 yeah 300 so there was more again we want to be conservative like that we don't want to be coming in too high oh so you only got 50 students more yeah okay I'm sorry I thought I wrote you said for 300 more yeah for the whole year for the whole year but we are anticipating but we anticipated 250. got it yeah and when we look at the buildings that
217are building that's going on we don't expect that that growth to stop of course we'll we'll update that projection too this fall there's a new private school coming I thought something Christian yeah but there's a lot of people I think that are from other communities that will be going to that school it's not gonna I don't know how many Lakeville students but one thing to realize on that on that particular building if you go by there nothing's happening they're only doing the daycare in it they want to go all the Early Childhood piece but even that's not happening no and what happened is they didn't they don't have the time they don't have the funds to do the project they started gun whole and realized they didn't have the funds and it just yeah so
218they're working on fundraising so I mean eventually it'll come yeah I think that's a few years out yeah longer than what we thought yeah and a lot of those students are already in Christian schools and other other towns yeah it said so will affect us well probably a little bit but of course you know that's that's a tuition-funded building we can cancel there for free it's only going to be kids so I understand last year and through Covenant it got a little a little um a unique experience I guess we're trying to understand why why you moved to a one percent contingency when that's what the general fund is generally for moving from point five to one percent because we have we done have we have we been over the last couple of years if
219you remember a year ago we were definitely overwatched yeah okay so one and a half percent contingency Danny but I already touched what we need we need some type of contingency that we have unknowns that come we do not know what they are and that we you know get a good picture on our revised budget we'll make some adjustments there but we don't want to adjust our contingency every other month we want to come through with a plan for the year here's our snapshot this is what we think is going to happen for the years before okay are you ready to move on thank you I want to thank my staff thank you we didn't actually have them field any questions but Michelle working hard Michelle is our controller Michelle's Cypher okay we got Jill
220Danley here she's she's one of our accountants and they do a lot of great work on this budget I want to thank them for that thank you thank you so much thank you too thank you for being here all right let's try to do that ALC update yeah this week are we doing that too [Applause] this is this is so just a quick recap and everyone remembers kind of the layout that we presented uh everything that we've presented today is competing to the first place uh thank you again just a recap for the layout I'll show you the six classrooms office spaces counselor space and nothing has changed within that layout today is what we're shooting for in a schedule for so um was there a slide before everything that's the first time okay we're
221talking about this yep um go ahead go back to the keep going um so our maintenance team started the day you the board voted yes our main received together we did everything possible to start working at the interrupt School and they have been absolutely fantastic so if I needed any shout out is to our staff um they have wholeheartedly just dove in all Hands-On attacks are really phenomenal INE pretty much all the major contracts we do have all the major contracts in place set in stone everyone has everything in order timelines are all set and we are moving for school to start in September as planned wow wow thank you okay because that was later hey guys what we're shooting for that's what we're on schedule for and we hope to keep it that way
222hey I'm sorry can I ask the question about the security for that too so is that getting incorporated into the new build or the remodel yeah so we um based on the items that we presented in the board throughout this process is we took out all this the features that were provided to ALC currently and they're getting implemented into Internet space like the the same like the all the different multi-layered components that we've put in across all our buildings the ALCS getting that too correct not to that level they didn't have that level exactly yet they're going to begin but aren't we bringing all of our buildings up to that standard when we're doing remodels that was what the security Levy was for I guess but that this wasn't part of that then they got
223a piece of it but every school got a different part of that based on that doesn't understood this this um is controlled yeah but that's there's more to it than well they'll still have all the all the produce funds they still have all this okay the multi-layered all that that okay that's what I'm asking I just want to make sure they have all the same protection all those yeah we worked with the city we're taking all these pieces out they don't need we're moving it to the new US yeah I just want to make sure they have all the same systems and security that the others do so okay thank you uh just a quick timeline for your reference kind of shows you what we're looking at doing we're pretty much anything scheduled most of
224everything on there which is fantastic Locker bays are all completely ripped out they're going to cut a hole to the two locker rooms this week so you actually really get to see the two spaces combined it's been really cool to see you come together so just to kind of show you the work that's been happening I mean this is like the day after school is out that's how excited that the crew is to move on it so um to show you what it looks like those knee walls you get rid of the plumbing branches that we saw how much more cold than that one there's not even lights out of the picture in any of those ten times as you can see continuing just taking everything out I love the old color the lockers the
225orange before they're painted blue and that really shows you the openness of the space that we're giving the students and just to kind of show the design we talked about dirt walls I would say what is that we've showed and toured what that looks like this kind of gives you a 3D basis of what to really what what the area will look like you kind of get a better idea for that really see the classroom taking shape you can see the white boards you can see the projector is going to be and it just shows you have multiple different views of what that space will actually look like they're gonna have any of like the smart boards uh they'll have short throw projectors that they have currently which is our district standard for it okay
226the other children along within the school which is nice so um the one slide that didn't make it in here is obviously obviously the update from the city um so to date you know we've been working hand in hand with them and meeting at on-site with them they've completed phase one of the Enviro and environmental study in their planning phase two they have uh offered a purchase agreement for the facility it is not signed by the city yet so once we get that we'll be sure to bring that back to the Board of Education most likely that will be closed session to discuss the offer amount in any terms that they might have like the the closing date we have in there because we weren't sure if we'd be able to get in there for
227first September it is first in November just so that we made sure we had enough time okay that's what's their way now yeah and it's also a contingency plan I don't anticipate using it but it's there so I'm just thrilled to hear that it's like they're going to be in there before school starts like that's awesome thank you so much wow thank you sure much because I appreciate that thank you thank you thanks John all right let's move on to the user fee update I've asked Devin to be here she's been in every single one of these meetings that's good [Music] thank you give two here oh it's been here for a while yes right okay what we passed out is the user guide and what we use with this with this group they can
228see that we're planning to have this new user fee start on September when school starts we have met with every single user group well I shouldn't say that dude but invited smaller groups haven't necessary to come to meet with us but we definitely met with all the larger groups some you know multiple times the idea was to you know during The Cutting process to generate some funds to help with that cutting process generated some more Revenue mainly trying to cover our cost in this area every time we have someone after school using our abilities that we need to run the heat we need to run the air conditioning there's cost for us which we don't get from state of Minnesota they don't we don't get any money from the state of Minnesota to run you
229know anything besides the school thing so even when we talk about Athletics the same thing that's why we charge our kids to the Athletics because we've got to try to find a way to cover our cultures that we pay for because we don't get any funding from the state of Minnesota before that so in this case we're looking for just to cover a cost so besides the utility cost we have we have supervisors now that are in our buildings before it was kind of like the Wild West Open Door everybody just came in so now we have people helping our groups make sure in the right place making sure that they have what they need how are you determining the utility costs I mean we do runtime we know how we know how how long
230a particular air handle runs over a period of time so that's what we used we used some averages because it's you know something sometimes it's hot sometimes in the cold something between so we did use some averages but that cost or a year's time is about 250 000 okay okay so that's where that number came okay so is that the target yeah it's the target okay okay so what what we looked at well how many hours are we actually using Jim how many we have other people using our facilities and it's not our you know it's not our teams it's other people that come in that's what we looked at the number of hours then to get that 250 000 came to ten dollars so that's what we've been advertising as we've been talking about
231with these groups we're still the lowest School District around in our region any type of cost that we charge to accept so you're saying that it's it's ten dollars what was it previously zero okay all right so even with the ten dollars that he referencing um we are still three to five dollars on average I can be quoted to a certain School District I do have a list that bill will have the districts that we compared it to and if that can be sent to you to be able to see what those comparisons are and if you wanted to dive even deeper I have I have 58 plus school districts that I keep in contact with that we keep a running tally of all the reads so it's available the data is there if anybody
232okay quick question on the utility fee I thought the budget had us around 450 000 in and revenue coming from user fees or not user feasible facility fees because it was a larger number um the other piece we looked at was the city of Lincoln to use a law or so we looked at these user groups we looked at the city we met with the city boy five six times and we would like to get understanding and who's doing what okay and what we found is the city's doing a lot of things for us and we're doing a lot of things for the city and when we looked at the actual amount of time or value of that it was a bottle wash so we instead of us cutting a check to them and then
233putting a check to us we're gonna actually we'll be bringing a new John Powers are getting APA yeah to you we've worked on that with the city it's been I think actually I think it worked out pretty good everybody's in agreement with what we have there but there won't be any there won't be any cash for example our now in the summertime our baseball fields on all of our elementary buildings the city drags all those for us yeah we don't have to maintain hundreds and hundreds of hours yeah that our guys don't have to do yeah so that's where we're at on that makes sense okay so how does that um coincide with like the Arts Center because don't we same thing from the art center we have groups that come in and use that
234Art Center and they don't charge us for them right so we've looked at there with many I don't remember the number of hours but there was substantial and they have they have custodials there they have managers there just like we do in our so we've had the joint Powers agreement in place with them you're just telling me that it's updated to be a little bit more current of the how we choose each other's facilities yeah we need to meet with them one more time just to finalize this and then bring it to the city so a lot of the updates were um verbiage updates that haven't been updated for you know years so there wasn't major changes um just because we needed to get to a place where we understood things currently at least from
235my role and my team's role and what John and his team's role is just understanding who does what and then we were able to bring that back to Bill and and his whole team to be able to decide what next steps need to take so how does that work with like the community band that's using the Arts Center but then they also have like concerts with our bands and they use they like interviews the instruments back and forth like will that all take care of that that was still that'll still um it's working the same way okay the spaces are shared the instruments are shared yeah it's a great actually it's a great partnership it is a great I mean I went to that concert this year and it was pretty awesome where they had
236all the bands and then the community band was theirs and so my question is I'm sorry Terry but I was just gonna say you know with the is there ever to a point or probably not yet because we don't have schools close enough to Elko New Market to even do one with them yet but probably not well at this point we haven't I think I guess certainly close enough we don't have Point facilities on there yeah yeah so take that I take something that certainly might happen in the future yeah something different especially as that actually area is one of our fastest growing areas in our history yeah from an elementary perspective yeah all right in regards to the class one rate now is that that's non-profit local is that true correct class one would
237be a non-profit local examples would be um well anything that's not a for-profit um churches are not included anything that is a for-profit is not included in that so it's our local youth association's sporting or clubs activities that type of thing uh Scouts Scouts that type of thing so if they're using a room at an ornament School the meetings they're going to be paying ten dollars an hour from now from September first on and one of the things throughout this entire this stage because um as those of you who last year the year before we've we've we've talked about this in the past um we really wanted to be able to make sure that we hurt each other groups as well so meeting heard them and listened to not only what concerns they had but
238also what contributions and I know I don't want to take away steal your thunder because you're going to talk on that um but we really spent time really trying to evaluate what what what is it that we can do what is it that we need to do what can we do to partner and then the other piece of it is what what are they doing in other districts just to really have that all those different lenses and that was a question I actually asked many of those other districts in my counterparts another districts was what about Scouts I understand what you're doing for sports you know but what are you doing for this and they're like nope same thing they're like we keep it consistent across the board so that way then number one for
239their managing of their finances you know they're able to do that but at the same time they're able to keep things consistent the scouts Girl Scouts Boy Scouts those kinds of groups that are non-profit probably won't be renting when we did meet with them as well throughout this process and they will be they'll be coming back to our meeting that we have in August just to be able to hear this and any other updates or amended changes that we do on like just basic procedure operational things that they need to know going into this year and how they're going to use our facilities this year I've always I think Judy's that way too always been protective of the non-local nonprofits I'd rather charge the profits more money and have the non-profits not pay like Scouts
240like add so much to our district too because they do a lot of their projects projects okay we we can go way down that path because our sports teams deal they invest tens of thousands of dollars yeah it's a slippery what we've done what we've done we do have groups that on a regular basis donate to the school yeah and a lot we're doing is those donations if it's if it's something that the school needs them to do something we don't have to pay for we're taking it off of that charge for them and they were very supportive of that I think our only yeah our only you know concern for them is like you need to tell us what you'd like to do because if you want to put in a new scoreboard that
241costs a hundred thousand dollars or something you can do that but that's something we would never do but they can do it yeah but it's not they're not going to get the credit correct like the whites at McGuire it's important out in the football field yeah but another good example is a bad field at McGuire needs to get ground yeah Football Association is going to put they don't pay for all the irrigation in that oh uh for us so we don't have to pay for it so that's another very good example of where we are going to get some funds for something that we don't have to spend money yeah okay so I think we've we've talked to all the groups um [Music] would they use the high Basketball Association like why why do they
242have to send a letter what happened well I mean we have a long history of zero a little long history okay we do have cost I mean legally I can't subsidize their programming we can't give them things and that's what we're doing we're giving them free use space paying for the heat paying for the for the air conditioning which we can't do they need to reimburse but I think some of their angst was the contribution everything they could they contribute to the district so this is part of it and then the other piece was the timing of when the fees were going to go into effect and it was you know shared that the analysis was done so it knew how it was going to impact all the different groups and they asked for that
243analysis and and so it was really just a deeper understanding of what that looked like and how it was going to impact them the timing of it so that they can incorporate it into their next season and know how to plan accordingly and do their own forecasting and then the contribution piece so that's where it all kind of rolled out I think they came together at the end yep with all of them I'm gonna try it yeah some issues we're going to deal with it we're not going to charge them anything to the end of the year so yeah in some cases some of these groups won't pay anything because they donate they donate a lot well it's also important to note that we wouldn't have sports for some of our age groups without these
244groups because well I mean these guys are the feeder groups to our sports teams correct they at the middle school level they do do the football they do do the best yeah we don't do that we do some of the other sports right back in the cutting process the day building 15 years ago that's something that they took on right right so they're they are supporting us we heard a lot from the public when this first came out saying it say it has no input and it seems like there's been some meetings regarding the superintendent I don't know if they're finished yet or they're still working on it we had a we had another meeting about two weeks ago yeah and it was a very good meeting and I think that's what he said yeah
245he sent us an update a lot of the miscommunications or the lack of knowledge whatever it was is now then rectifying so I think going forward we're going to try this and see how it goes can you explain what this what this user fee is like how do you how do you determine ten dollars like if I want to rent all we do is classroom we looked at what the funds we needed yeah we took all the hours it came out to ten dollars an hour so no but if I wanted to rent a classroom for some you know whatever meeting I paid ten dollars an hour for that if I wanted to rent a a basketball court it's ten dollars for that if you're not a profit if you're not profit yeah yeah but
246if I was eating so I'm going to use the Basketball Association as an example I'm assuming they need more than one court because of all the kids that they probably have so I'm assuming they'd have to pay ten dollars an hour for all however many courses there are exactly right it's not by courts and we're going to have a very gym yep it's we're going to have a very um simple straightforward and that was again the premise of the ten dollars was across the board keep it simple um uh keep it thankful for everyone to be able to do that um and budget for that type of thing um and that question actually did come up um in many of the user groups nope it actually was and I mean it's a it's a fair
247question you know I only need a classroom why do I have to pay the same amount that somebody who's going to use you know the big gym at one tour what you know at the elementary right so the other piece of that the other side of that coin is whatever a person is going to request they have a they have a space and they have an intent for why they need to meet so irregardless of what that might be having that same flat fee across the board will allow them to be able to budget and plan and it will help us and for a district that's never charged our local groups for in this type of lens having that fair Base number is inconsistent is is from everyone that I've talked with in 50 plus
248districts that is definitely the easiest way to go yeah for accounting purposes so if I wanted to rent the baseball field it's 10 bucks but if I wanted to rent a classroom that's 10 bucks if I want to rent these as long as you're as Terry Point as long as you're a class one yes if I wanted to rent the auditorium which can fit like 500 people 10 bucks it's ten dollars for the auditoring space but you bring up a good point and we've talked with our groups too there's specialized spaces around the district that require because of liability reasons or technical needs that do require Staffing so an auditorium would be one of those um it reimburses for the staff if you want somebody there to record or videotape your presence well and even
249we we actually have learned just even for the liability of foreign for example um the the rules and the legal things that need to be known to even be on stage and the dangers that can happen if if people aren't trained properly so it just you never told me about that when you had me go up there I think you're one as a for consistency for accounting purposes right away yeah October is like how is it going yeah so you anticipate about 250 000 in funding or additional Revenue because of this new model apparent but we're about 200 000 shy from what we originated improved and so how do we close that Gap or are we not closing that Gap well I don't see how we're going to how close I get we're sure not
250going to double the fee well we have to remember too A lot of these groups do a lot with the more they have to invest in this the fewer scholarships they can provide to our kids to play and stuff like that because they invest a lot of money in scholarships they'll make some tweaks to what what they need to do but you need to remember I think some of these groups make hundreds of thousands of dollars off of our business the other point that we added into there and I believe well I probably look it's right in front of me um so and we are going to be my team we're going to be providing all of our class one user groups with the last three years worth of estimated hours they've had because we're
251able to pull that from our software so they'll be able to actually get that here probably in the next three to four weeks um so that way then they can use that for however they need um plan for this next year if they do choose to have an agreement in place come next April that's when me and my team will sit down and throughout their all the usage all of that tallying of total hours and dollars that's automatically already within their account that they're able to see online if they choose to log in or it's something that we obviously provide when we send them their permit so there's a few different ways to look at it the other one other piece is that we're going to be um and be meeting with the with our
252larger groups on how they plan their scheduling for example you reference the basketball they they have a very unique way of allocating time out to all their individual teams and there's other large districts that do very similar to how we do here with them so we're gonna I'm gonna actually meet with all four of those associations next month to be able to find out and really just host we're going to be a host for them for them to all come together for the first time and be able to see what works what doesn't what concerns do they have as far as how their scheduling works and how does the District fall into that or is it really things that they want to fine-tune for their own organizations so I think that'll be a really really
253positive good opportunity for them and I think it'll go online with this so based on this this approach is there a general favorability General alignment from the class one groups that this is the path they're okay with it or we still need to go through that socialization exercise but I think the times that we are we like like I said once I learn more so as we had more meetings that they understood what we're trying to do and I think we're all in agreement now I don't think we really have anybody who's still pushing way back on it a question regarding that um first our neighboring District's new charger class one secondly there was a rumor going around that that the class ones were going to be the second class citizens and all the profits
254were going to get the first choice for times I've never heard of that before and I I we don't we don't have things set up in the district like this send it out to the non-profits yeah and they pick their time yep so yes and we actually have timelines as far as when requests for next year can be submitted FY it's after July 1. um and they get communication about that um anyone who holds annual larger events whether they're fundraising or whatnot um they also get a separate communication and and we are for this year going to do a first-time in-person opportunity for them to come and meet and and learn about any changes updates and so we're it's really headed in a good direction good thank you I was just gonna ask um in
255terms of student-led kinds of groups are those not part of this or um well it's so it gets a little tricky so um I'll give you a good example Captain's practice for sports uh that would be the same type of um concept of what you're saying um because we have to have an adult for anything that's considered non-district sponsored so um Captain's practice is not considered a district-sponsored function because mshsl has guidelines the coaches can't be involved things like that so it automatically moves them underneath that non-district sponsored umbrella so they can contact us they can organize all that a lot of times the feeder programs will be the ones to provide the insurance for it so we we have a checklist of everything before they get permitted but then what we do is we
256then work with whatever Captain is in their new leadership role who's going to have that and we have uh whether it's one of their parents or someone else who's maybe a volunteer coach or doesn't have that same guidance from mshsl and they they have to be on site so we do have to have an adult on site for any non-district function if they are over 18 years old and they provide us their insurance and they show us the different organization and we meet with them and do a walkthrough of what event they want to hold we absolutely will work that out with them so is there a higher fee for those not class one folks so there's two other classes there's class two and class three class three is anything for profit class two is
257going to be non-local uh youth um or non-profit that's not local to Lakeville area schools um and those are higher and there is a note on the handout I gave you that those class two and class three will see a three percent increase starting on September 5th um it's it's not going to be you know the other 250 000. but you know there it is something um and you know there are other long-term contracts that are rental contracts that we're working on that may also help sort of chip away at that where do District ptos fit in on this District so that's a great question ptos are a non-district sponsored group so they do provide insurance they do work with us and their office manager on solidifying the space and what they need for their
258events but beyond that all of their communication and partnership is with their own building so really when it comes to us is when they have their events do we have everything in the system have we communicated to all the support staff teams and and gotten everything in place that they need you still hold their monthly meetings for the most part yep and they're not charged for that no okay that's the only time we kind of get involved bouncy houses right when they're when there's when there's a lot when the liability and and the fund you know our insurance company does not cover bouncy houses they do not yeah well it's just one of those groups where you think like everything that they do is in support of the school so that was why yeah really
259a lot of those type of things even with our boosters Association and even our feeder programs I think that's been the challenge along all of this and even when when you might hear from our community members everyone has different verbiage and so Bill and I and Steve like every time that we've met with them like we try and use the same verbiage whether it's in email or in meeting communication so that way then we can try and at least get that gray out of the way and answer the real questions at hand for the class two and three why only a three percent increase I mean I mean if we've got a big gap to close cluster is going to be your dance companies we we do have a lot of dance rentals in the
260spring and then around the holidays um there'll be other for-profit businesses that might want to use the auditorium for a conference or Convention of sorts class twos are going to be religious organizations a university may be holding um you know a remote or hybrid classes St Mary's used to rent a lot from us prior to covid so just those for example what do we generally generate in revenue from we'd I'd have to get you that I don't want to it's not very much because it's not very opinion okay I mean it's only a few thousand yeah but if we're charging 250 000 worth to a non-profit folks wait should class two and class threes pay more so their rates considerably more than that okay yeah it's and and that is actually I have a handle
261for you for that one yeah of course what I'm handing you now is everything that's on your sheet and is included in this addendum to the policy we are giving you the proposed version and that the fee structure um chart is located on this one and you'll be able to see the two different plus two and three once I get over there it's only 10 30. okay so so then at the end of next year is coming in at him here yeah we find you know the 250 is okay okay from the small groups yeah there's 250 okay can I ask for a class one and class two or two that was a discussion that was had last year um when CMS was getting ready to come online and then we were defining what those
262rates were the issue is that the pool is considerably more expensive to run space it's not it's at the heat in the pool it's all the pumping and filtering and cool so that is a higher rate it always happens well because we hadn't charged any class ones and that hadn't been yeah well that's where we just use the verbiage and put them together in that one and I will say we've had people reach out and they have rented the pools who would be considered a class one so um we used to um only really defer them to use uh open swim which they still do at times and pay that open swim fee um but we have had a lot of inquiries and this and the board back when CMS was just when the pool
263was being talked about for Blanchard Aquatic Center Special Olympics has reached out and we are meeting with them for next year yes I was hoping we meet with them in a couple weeks actually it's very exciting well also the uh section boys and girls swim and Dives to be here yep finally left Rochester yeah so that's a big deal that's a big deal well in the Special Olympics is too because we've done a lot of work in the community to make our Parks accessible I mean we have King Park right there um we're doing that with the remodel of Lake Marion and what they're doing there they're making handicap accessible bathrooms and everything exactly yeah it'll be really yep that's good here in the Rumblings it's going to be really exciting I've just made my
264day thank you because it's something positive yeah give them a splash feed dude I'm sorry are there any more questions on the user fee update thanks for navigating thank you thanks for Spain so so far we have moved the transportation update and the board compensation to the next working session the last thing on the agenda is public engagement I just want to give a little background on this this was something that I added after a board discussion a work session based on if we should have public comment I said I would do some work around um I've seen what other districts are doing and what parameters they put in place for that I did do that I provided an email that had some of that information on it um I feel like it's probably more
265of a discussion um than the time allotted that we have and I I would like all board members to be able to participate in that but um I'll put it to the board and ask if if we're okay with moving that topic to another working session to talk about it more in depth and I can share the information that I've gathered and how it fits in with their process yeah and can you move it to the one where we have the bore gold discussion and that kind of stuff because that's what we were talking about and we didn't finish that discussion so we could look at it as holistically around our total Community engagement yeah process we're okay with that sounds great yep thank you okay thank you I appreciate I've got a migraine so
266I appreciate it like moving it to another one so being that we've um worked on all items that we have on the agenda the others are put off to the next working session um upcoming working sessions yes I'm okay with a journey in this session for the night everybody good all right all right everybody thank you thank you Bill thank you for everything thank you like the entire time this is