001To the flag of the United States of America and to the stands nation indivisible with liberty and justice for all. Welcome to uh tonight's meeting. Um do we have anyone for the no one for the open form? All right, let's go to number four, approval of today's agenda. And I would look for a motion to approve. Neil moves. Is there And Angie seconds. Is there any discussion? Seeing none, all those in favor signify by saying I. I know same sign. Motion carries. Uh five to zero. and uh request for donations. Pauler, do you come up and there you go. All right. Good evening, school board. Thank you, Chair Clatt, school board members. Um so the donation list this evening is uh a little lengthy, but some of them are are grouped together. So, we'll we'll
002go through this just to make sure we're saying thank you to our community partners that are supporting our programming. Um, so we had a freeborn mau operation roundup donation of $250 going towards special projects. Our Kowanas noon club donated $107 to our robotics program. Uh, the Southeast Service Cooperative um runs an impact grant and these grants are coded as a 096 source code. So anytimes we have a grant uh that category, it's considered a donation. Um and so that was a Mat tri gas grant which I believe went to the welding lab um project at the high school. Um we have box tops uh revenue that's going to special projects fund at Lake View. Uh Ascension Lutheran Church uh revenue that went to Sibly Special Pro projects. Uh and then quite a few donations coming
003in for our mental health glow run. So I'll just uh list those partners here. um um in in order. Miracle Martial Arts, miscellaneous cash donations from various community members, um, Patients Choice Wellness Clinic, Pathway to Healing Counseling Services, Chime Mental Health Services, uh, It's Worth It Wellness Studio, Horizon Homes, uh, Nexus Gerard, uh, Independent Management Services, and, uh, Freeborn County all made, um, considerable donations to our mental health, uh, Glow Run. Um, and I believe it's the second year we've put that uh fundraiser on. So, a nice community event. Um, also received a Freeborn County Ship Grant to upgrade um some existing furnishings and um uh I think a fridge in the uh break room here in Brookside for our Brookside staff. Uh May uh band concert donations came in at $46 and orchestra donations
004$115. Uh Pepsi made a donation. Oh, again to the mental health uh glow run. Um and then some more box top donations going to special projects for our I35 program and some donations to our Tiger Den at Southwest Middle School uh from Bridge Marathon, the Boxtops program and Casey's and uh our ALHS reach program. A donation from the county. It's a significant donation, $2780. um and Casey's donation to a high school classroom and some choir concert donations. So, just a thank you to everybody that's supporting our programming and quite a list there for this month. So, it's worth acknowledging. I'm looking for a um motion to accept the donations. Is there a second? Second. And a second. And I I would comment that I'm glad that we're doing this. It's consistent with that request that
005was made a couple meetings ago. It's a good good idea. I would agree and I also glad I just always have been curious about the shifting to free concerts and it's good to see that there's, you know, 700 plus dollars in revenue generated. Yep. Yeah. Because the money comes in, but it's nice to recognize the people that bring it in because it is a uh truly a gift, a donation that goes toward the school and the kids. All right. Uh well, all those in favor to accept the donations as read signify by saying I. I oppose the same sign. Thank you, Mr. Durban. Motion carries 50. And uh looking at our consent items, we could use one motion to accept or deny those. So I'd look for a motion on the consent. Neil makes a
006motion. Is there a second? Hear second. Any discussion or All right. Seeing none, all those in favor signify by saying I. I oppose the same sign. Consent carries. All right. On to seven. Superintendence report. Mr. Gr members of the Albertly School District elderly community. just short um thank you for allowing me the opportunity to work with you. This is my last official u duty and responsibility in the district and I've really appreciated the time. Steve and I spent the day working along with the administrative team and it's been a good good day. We've spent many hours together. Um, and I think uh it's very important to understand that the work that you're doing, no matter how we approach it, no matter what our belief system is on the responsibilities, we're all working together to make
007sure that our kids get the best education. Um, with the incidents that we've seen happen over the last few months and specifically over the weekend. Um, we know that working in the public sector is not always a safe and healthy environment. So, you need to be rewarded and congratulated and thanked for being willing to step up. And I was telling Steve today that you've been a great group for me to be able to work with and I appreciate that so much. That's where it starts. You're you're the elected officials. You represent the community. We work for you. And I think it's important for you to understand that you've got great teachers in this district. You have great families. We've got great staff and wonderful great leadership from our principles and they're caring for what our
008kids are receiving and how they're receiving that. So, thank you very much. That's my reporting. All right. Well, yeah, I just have I do have one question, Dave. Do I say no now or is the name gonna change over at the co-op? Standing joke people think after last meeting uh I I think therefore I am. No, thanks again. As I said last time, we appreciate it and uh yeah, since you you uh were able to come back and help us out, we can't change the name. That was kind of my part of the bargain. So, thank you. Appreciate it. All right, let's look for um school member uh board reports. We'll start with Gary this time. Thanks, Chair Clott. I wanted to thank Superintendent Kren for being here. He was the right person at the
009right time for us. Greatly appreciated. Uh graduations, I got in the tail end of the ALC graduation and um attended the high school graduation. I would say of any public comments and we all are familiar with this topic but of any public comments over the last month it was about a lack of choir performing at graduation. I heard that still hear it. So I hope that we can rectify that for the class of 2026. uh policy comm uh we had policy committee meeting couple finance committee meetings and I on a per oh we also looked at some uh we had a meeting about PSO enrollments and the financial costs of that and that was a informative session and on a personal note I attended the all-inclusive uh playground o opening that was very nice and
010I've been there a couple times with my grandson thank you all right since our last business meeting I also attended the high school and the ALC graduations and the policy committee um with Gary and Kim. Um we went over the policies that are on the agenda tonight. Um otherwise it's a little bit slower time of year. Um I just want to say thank you so much to Superintendent Kren for your leadership and your help the last few months and I'm very excited to start working fully with Superintendent Stephen Hy next. I've been in touch just a little bit. Trying not to bug you too much too early, but very excited. Thank you. Uh very similar. Um attended the ALC graduation which was awesome. Huge crowd. Um lot of great to see all the families there.
011Uh high school graduation, great weather. That was fun evening. Um hearing the same comments on the choir not performing at graduation uh from families. And again, thank you um David for being here. Yeah. Um I had a a rather short week, too, especially since I I missed the two finance committee meetings that were scheduled. U because I'm It isn't because I'm old and my mind is full of cobwebs. I've always been capable of forgetting about meeting. I actually didn't forget about just having the wrong time in my calendar. I I got the full scoop from Paul Ho just just a few minutes ago on the finance committee. Um David, you should be concerned because it seems like we agree so many times. And at our last meeting, I think we're talking about classroom management and
012you suggested that it's kind of a a a team effort including the the teacher and the principal. I totally agree with that. But I would like to expand that analogy and include a whole bunch of other players out there too like students for example, parents for example, the whole community. And you're right, uh it's a team effort and we are all on the same team. It's not us and them, it's just us. So uh I just thought I'd pigtail that comment that you made. um had u some uh a lot of things going on with education foundation. Seems that's a busy group. Uh speaking of of donations, I just got a donation from someone for the education foundation here. And there are a lot of things coming up over the summer. U the most uh
013the most immediate are the uh the teacher grants. Uh, and I've I I already have a catalog of about uh 12, I think, applications for teacher grants. Uh, teachers have until the 20th of this month to uh submit their uh applications for teacher grants. So, that's it. A couple finance committee meetings. We had our annual MSBA directors meeting. Uh, and our next meeting will be in September where we'll do a retreat up at uh, Craig's. It's a tough job, but someone's got to do it. So, anyway, we look forward, we got some other changes we're making in there. And, uh, we've all talked about the graduation and yes, we look for that to be different next year again to give our seniors that chance to get up there and have their one last performance before
014they leave our school. And um finally I missed the ALC graduation because I was coaching baseball. And I just have to say that we got to the third place this time in our section, the highest that we've been in the Western section. And Mano East who won our section went on to get second in the state and now they will move up to 4A next year. So we'll see how that goes. All right. Teacher Report. Hello, I'm Janice Jeffrey. I'm an English teacher at the high school. Um, lots of things going on in the summer for teachers. There's targeted services and credit recovery and um, community ed programs and sports programs that continue to happen even when the school year is over. And of course, teachers that are going back to school for their continuing
015education credits. Uh, but most of all, I really hope that they are getting the rest and relaxation that they need to come back in August and be ready to go. And also, thank you to Superintendent CR for your service for us. Thank you. All right. Thank you very much, Janice. All right. Uh, past 8 n 9.1. Um, Janice, I guess you're up for the ATTPS annual report. Hello again, Janice Jeffrey. I'm the ATPPS coordinator uh for the district. Um, let's see. So, this year or I should start just start with what is ATPPS? the um alternative teacher performance pay system. We've been part of that group for 21 years uh when when it first started in Minnesota. And the purpose is to improve uh instruction and student achievement, provide professional development and encourage collaboration amongst
016our teachers. Uh there are some leadership opportunities for teachers. uh the district coordinator, which is the one that I have. Um there's release time and a stipend. There's eight instructional coaches in the district. They also have some release time and a stipend, but with that release time, they also are teaching. So, they remain in the classroom uh part of the day as well. And for the last 21 years, we've also had um instructional team leaders that also receive a stipend. Um you'll notice the asterisk next to that and I'll be talking about that later um uh in our changes for the program. Um let's see some job embedded professional development is one of our goals. The the PLC's are uh meet every Wednesday for 45 minutes. That time is blocked off for the district 7:30
017to 8:15. No other meetings are ever scheduled those days. Those are when the teachers get together and work on their professional development and their um instructional development. Their goal is to answer four critical questions. So, it's referred to as cycle work. And every time you meet, you are talking about what you want students to learn, how you will know when they've learned it, how to respond when they don't learn it, and what to do if they already have learned it. um added to that recently and in the red print is to uh increase our instructional competency. Um and that was added as we um added Marzano into our um our instructional practices and our evaluation practices. Dur as part of this program, teachers are evaluated by um peers. If you're non-probationary, you'll have two um
018peer reviews. Your uh instructional coaches will meet with you um talk about what you're teaching. They'll observe it and then you'll discuss those um the observations afterwards and make a plan for the next one. So, you just keep working on that cycle and you're improving your uh instructional competency. If you're probationary or teacher, you don't have um observations with the instructional coach unless you request because you're already doing three as required by statute with your administrator. And then there's three informal observations where you go out and observe what other teachers are doing. And you can do that in two different ways. Uh instructional rounds are where a group of people go and watch two or three other classrooms and then debrief on that afterwards or you can uh select on your own and go watch
019different things that you want to see. Um this is just a a visual representation of the observation model that I described where you uh pre-conference with the instructional coach, the observation happens, you debrief and plan and collaborate. Um, right now the performance pay incentive for meeting all the goals on your uh um individual growth plan is $1,300 and it's broken down as you can see, $150 if your building meets their site goal. Um, $50 if you meet your individual goal based on student achievement. Uh, $300 for peer review and observations. and then $800 for the weekly um PLC attendance doing that cycle work that we talked about with the four uh essential questions. This year 56% of teachers met their individual SMART goals u based on student achievement which is a great um accomplishment for
020those teachers and for those students. This I believe you're familiar with. It's just the instructional model of uh that we use to um select what we want to work on as individual teachers in our classrooms. So some of the successes this year uh Albertly High School achieved level two certification of effective teaching for the Marzano high reliability schools as did Southwest. the elementary schools um they are starting their level two certification in the fall and so hope to achieve that by spring of 2026 and uh Southwest in the high school will be working on level three then next year they'll start that HPPS continues to have um high success with 94% of teachers participating and completing their IGP goals some program recommendations for next year. Um, we are experiencing um budget shortfalls within the program.
021It's a it's supposedly a self- sustaining program, but the state hasn't um raised the number the dollar amount in the years that it has existed. And so we proposed these changes to the program to save money within the program and keep the elements that we agreed were the strongest. So we will continue requiring two formal peer reviews with the instructional coaches. Everybody agreed that that was valuable and important. Um we will be eliminating the instruction the 41 instructional team leaders. I that was a very hard discussion for the teachers and the administrators. they they definitely see the value, but we also could see ways to um after 21 years to um create the agenda within the team and take the attendance within the team and just there were ways we could work around and save
022money on those leadership positions. Um the informal peer observations where teachers go observe other teachers or do the instructional rounds in groups where they're observing teachers is eliminated. That was worth $150 in the payout. And so that it uh reduces the overall payout from $1,300 to $1,150. These changes will save about $80,000 in the program that we hope will keep the program sustainable for a little bit longer. Questions? If I remember, 21 years is the first year the program is offered in the state. Correct. Yes. We were in on the groundbreaking of that program. Yeah. And and not every school is part of it. They are not. Yep. No. So, it was quite a nice thing that was done here when you we were able to get into that. So, good. It's been a great
023program. When I taught down in Texas, we had a similar program, but to be frank, it wasn't this detailed. So, very this nice program. Thank you. Yes. Yes. Thank you. No other questions or comments. Janice, thank you. All right. Thank you very much. Have a nice evening. All right. Effective and efficient operations 10.1 athletic department presentation on adaptive sports and school activities participation update. Mr. Langanger. whe just uh as we've worked together on this, Dave, thank you very much. Very ind depth. Uh, one of the the people I followed up with was Sheila u being in u charge of overseeing our special ed programs and u she was very positive. Sheila, do you have any comments or any I'm I'm very excited. I just want to say we we've never even had this brought to
024us before. Thank you. Nice program. I I I knew there was very limited on the number of sports they had at the state high school league, but uh interesting. It's never been attempted before. So, thanks Ready to find an easy way to online ticketing? GoFan at Albertly Schools is the way to go. Whether it's a sports activity, musical, prom, or even a senior dinner, you will need to have Goofan every step of the way. This video is to help guide you along the way to help get access to your tickets and give you more insight on what GoFan is. Thanks, Jazz. So, how can you access your ticket for games and events? First, search for Goofan by typing in your search bar gofund.co. From there, search the home school of the game or event you
025are going to attend. Once you find your school, you will be able to see everything from single events to season and yearly passes, as well as free students and staff passes. Dave, is there a cost for the platform goof fan and Albertly live to the district? There is not. What's not? Okay. No, there's actually a partnership that we have and we can actually do some which I'll be coming to you guys eventually after I work with our finance manager called on a little bit on some cooperative uh revenue sharing. adverising and things like that. So, we make some money from uh when I left St. Cloud, I was bringing in about $70,000 a year in advertising and that was using those kind of apps off of our scoreboards as well as as through the uh
026um the live streaming and so that's money that I should be bringing in from an advertising perspective so we can use it for activities. No, but there is no cost. Okay. So Dave, of the training for coaches uh and officials, uh is is has that changed from the past? I I know it's been through uh oh coaches clipboard and there have been several other platforms, but it seems like it's always a nightmare to figure out how to get onto the onto the system. And then uh for people like probably Dave and me who are both have to do the registration the procedures for coaches and officials and a lot of them are the same. Is there any improvements in in line there? Um, one question back to the adaptive sports. Do you know, you maybe
027said this in the presentation, but how common is it for districts to have adaptive sports teams? Do you know how many there are in the state? I don't know how many. Well, thank you for checking into it. I just think what a great time to have this presentation as we wrap up the all-inclusive playground in the community, which was a big success. Thanks to Sarah Stoultz with the Albertly Tribune and Dave Valerial who were our schoolboard member who were really behind it. This just kind of streams right along with it. Um so really enjoyed hearing that that could be a possibility. Um the other thing I hear out in the community and I just want to share Dave that um your involvement with the feeder programs and going to eight-year-old programs. I'm hearing this from
028parents of I'm hearing how awesome the district's athletic director is because he's down there in the starting in the the young with the young kids theater programs that the school is not really involved in yet, but talking about teamwork and what it means to be a good team member and sport should be fun and so just thank you for your work. I have one other question. I noticed clay target for the middle school. Is there a clay target team at the high school? Yes, there is. The clay target team just got back from states. Oh, good. Yeah, it's Thank you, David. All right. Um, that's hard work, Dave Langro. So, thank you. Um, I think there's some good things to consider there from um, Director Lang. So, uh, thank you, uh, school board members, board
029chair clot. Uh, I do have a handout for this. Uh, I was hoping to have it out before everybody snuck in today, but I got here too late. So, I'll just take a moment. All right. So, um, June of 2024, we established an adopted budget for this fiscal year 25. Um, and then each year we will have a revised budget and a final budget. And this afternoon or this evening, excuse me, we'll be um taking a look at our final budget for fiscal year 25 and also um approving our preliminary budget for fiscal year 26. So, you have a uh budget book in front of you this evening. Uh, and we're going to highlight um the contents of that budget uh in this presentation as well. All right. So, um just always like to review
030a little bit on school finance budgets. Um our budget contains five main funds. uh the general fund, food service fund, community service fund, and uh building construction fund and debt service fund. Um for the purpose of our presentation tonight where our significant changes occur, uh the four uh funds that are bold, they're general fund, food service, community service, and construction fund. We'll take a dive into those uh this evening. Um so a couple other reminders that budgets are our best estimate to where we will end the fiscal year. So when we have the uh final budget the revisions here today for the fiscal year 25 um those are estimated ending um budgets for the fiscal year 25. And a reminder your fiscal years are June or excuse me July 1st through June 30th of each
031year. Um so this June 30th will bring close to fiscal year 25 and we will open our fiscal year 26 on July 1. Um one other element to remember is that the um records the actual books aren't um tied out at this point because we may receive bills or invoices or expenditures uh well into fiscal year 26 that are intended for fiscal year 25. for example, maybe a utility bill might come in in June or or excuse me, in July or August, which is technically a 25 expense. So, that is the purpose for our uh independent audit that will be conducted in the fall. Um, once the books are finalized, we have uh Smith and Schaefer come in, they will take uh all of our financial records, do a deep dive, and present an audit
032to you uh in the winter. So, um all that comes into play here. So uh review uh for this revision um the general fund revenues um you see here for fiscal year 25 total revenue of 60,646,266 and in your budget book if you would turn to the first uh table I think it's uh page um five Maybe page five. Um you'll see the total um revenues under the final 2425 uh revenues column under total general fund 60 million uh646 to $166. You see the bulk of our revenue comes from state aid. Some highlights regarding revenue for this fiscal year. Uh noted our state aid is about 80% of our revenues and enrollment is the biggest factor in driving revenues. So um this year has been an interesting year with our ADM projections. It's been more
033challenging than a typical year to predict. Uh we feel we have a better handle on it now as we get close to the year end. So this is a good time if necessary to adjust our ADM um estimates. Uh we did do that for the final budget which is why our revenues um maybe changed a little bit. So if you remember back to our revised budget in March um we revised our budget to reflect 3360 ADM. Now with our endofear projections um the school year coming to a close we can take our actual seat counts and kind of um crossch checkck those estimates. We did scale this back to be conservative for our final budget. We used a uh ADM of 3,328 students. And a reminder, ADM means average daily membership. So they take the
034number of students or number of days a student is enrolled in your district um and you would divide that by your um board approved instructional days uh to get a ADM for each student. And the sum of those would be our 3,328. All right. Also looking at our revenues, um, our state aid increased from fiscal year 24 to fiscal year 25. Our federal aid decreased slightly, mostly due to our ESSER funds uh, suns setting this year. So um, some other items to consider when we look at our revenues. Um, we this year uh, had the redact funding. um we received additional special ed aid, additional unemployment reimbursement, um and then we had our our general education aid increase. So, if you would turn to uh page seven in your budget book, we have a breakdown
035of those um revenue sources. And this slide is just another way to uh look at our revenues. This chart is also on page eight of your budget book. And you see a large portion, our largest portion is for instruction and pupil support. So in our classrooms about 83% of our budget. So when we look at expenditures, some highlights from the fiscal year 25, some changes from 24 to 25. There's there's a few different ways we can uh look at expenditures and revenues um by our EUAR's codes um which is our uniform financial accounting standards. Um one is called a program code and another would be an object code. So, we'll look at it from two different lenses today just to see the changes. Now, some of those increases, and this kind of got us crossed
036up at the revised budget a little bit. I want to make sure we're clear that some of those may like if we talk about a salary increase, it might also be an instructional increase. So, those may feed into each other. They're not going to sum or add together to uh they're not separate, I suppose. So, I'll try to clarify as necessary on that conversation. So in this slide here we see that elementary secondary instruction uh increased our expenditures increased by 830,000 um this year. If you want to look at a full chart with the program codes, page nine in the budget book has the whole list. Um these are um highlights from that table. Uh instructional support was decrease by 28,000. uh sites and buildings uh increased $392,473 and our special education costs increased $1,214,290.
037I also want to note that some of these increase or decreases may come in line with revenue changes as well. So for example, um special ed program may also come with a revenue source or reimbursement that comes with that. So the expenditures are not just a straight increase. Sometimes they may have revenue tied to them as well. Okay. So, continuing to looking at by object. So, on the bottom of page nine in your budget book, uh the large ones here, we saw a large salary and benefit increase for fiscal year 24-2. A lot of those increases may have been with grants or title funds um or other revenue sources where revenue came with uh for those increases. Um also the capital expenditure increase of 1,24,022. Um you know a lot of this we saw at
038our revised budget and at that point we noted that we bought all new elementary furniture this year. That was all funded through ESSER funds. So that's a perfect example where we increased the expenditure 750,000 approximately for that furniture. The revenue was increased as well and we saw a decrease in supplies and materials from fiscal year 24 and fiscally or the fiscal year 25. um want to note that uh decrease um which I think part of that is accounted to um we put a stop at the revised budget time to any unnecessary purchases in the district um and we stood to that standard um through the school year um so helped us get to a better place with our fund balance. Another note with those salaries and benefits. Um when we talk about expenditures, unemployment is
039one of those. Uh substitute costs is one of those. Um they all come in and they all add up and we've noted those increases in the revised budget too as well. All right. So here's just kind of a general rundown of some changes that are important for us to reflect on when we look at the change in expenditures for this fiscal year. Um, so we talked about the elementary furniture with ESRE funds. There were other ESSER funds as well. Um, those are now going to be sunsetted this year. So we won't see any revenue or expenditure for ESSER funds. In fiscal year 26, we had a lot of grant funded staff positions. We did see some additional hires this year, which we addressed at the revised budget time. An increase in substitute costs, a large
040increase. um non-licensed staff, we saw an increase there. We had superintendent salary and benefits was an increase that was unplanned and we noted the unemployment costs and the READ Act. Um and the READ Act is one of those and as well as the unemployment where the revenues will match those expenditures. So, moving on in the final budget um to our food service fund. If you want to turn um to page 10 in budget book um outlines the revenues and the expenditures. Now if you remember to the revised budget in uh March we talked about increasing our expenditures in the food service fund so that we could spend down that fund. We had been seeing an increase in expenditures for multiple years and if we reached six months operating costs, we would have to enter an
041MDE spendown plan. So to avoid that, we updated our expenditures in the revised budget to try and bring our fund balance down. Three items that we added that had significant cost at that time to our food service budget were um uh cafeteria furniture at Albertly High School, cafeteria furniture at Southwest Middle School, and also equipment for the kitchens at Albertly High or kitchen at Albertly High School. Um the furniture orders for CLA uh the cafeteria furniture will be in this summer. That'll be a nice addition. Um the furniture we had was getting very dated, worn down. Um it was it was ready for replacement and the um the floors were starting to get really beat up because of the old worn out furniture. So it'll have a compounding uh impact by having a little bit
042nicer equipment in there. Um however, the one there was about $100,000 in um equipment costs that we were adding to this year's budget that the contractors weren't able to get supplied in time by June 30th. So that will get pushed into fiscal year 26 budgets. So you see a slight pullback on those anticipated expenditure increases. Sorry, long story to get to that point. A reminder that we are part of a federal meals program, the C program, and part of the funding for that does funnel through state aid, but it is a federal food service program. All right, this chart in front of you uh represents those fund balances that we talked about in the revised budget. This isn't in your budget book, but it's just something to make sure we look at. Um, so we
043were seeing an increase, if you look at the numbers on the left, from fiscal year 20 through fiscal year 24, we saw an increase of over $400,000 in that fund balance. So in fiscal year 24, we saw another increase. And so that prompted us in fiscal year 25 after we received the audit results, it's probably time to start working that balance down. And so we plan those increased expenditures. And that's where you see that net of minus 295,568 for this fiscal year. That'll leave us in a good place for fiscal year 26. All right. So the revenue budget for community service, um, $1.8 8 million approximately in revenue for community service fund and expenditures just over 1.8 million. So 1,893,463. Um and I want to compliment director double. Um this year has been challenging to
044manage a community service budget. Um there were some increased salary expenditures that were um laid upon him that he he uh handled with grace. um but it really meant that he had some more challenges with um this budget. So uh at the end of the day, all of our community service uh fund balances are still a positive balance and leave us in a position for fiscal year 26 uh to be in a good place. So there were um some staff changes mid year um and some staffing assignments and for appropriate coding um if the staff were working directly in community ed that had to be coded to community ed. And so that wasn't a planned expenditure in community service and resulted in more expenses. So um that is going back um now with the model
045in fiscal year 26 and part of our reduction plan to the way it was and it'll be easier for that management for director double um all right highlights uh of final budget community service funds. So um we noted those challenges uh with increased expenditures with staffing. I do want to also note that our Tiger Club child care director double came to our finance committee meeting uh last or two weeks ago and he presented um that their budget is in a better place this year. Um it will not be in a deficit this fiscal year. So that was encouraging to see. Um I think we all acknowledge that there's still some listening to do and some growth to do with that program, but just to be aware at the board level and publicly that the finances
046for this fiscal year were in a better place. uh came out um um where we weren't in a deficit this school year. All right. So, your final budget, this is hard to do. And so, I know um Director Langroo was joking about spreadsheets on a uh PowerPoint, but welcome to my world, uh Dave. Um so, here's here's one that we have. Uh this is the top half of the actual budget that you were provided in your board packet um that we'd be asking for approval tonight. So, this depicts your general fund. So basically just took the top half of the one spreadsheet uh for you to consider. Um and the fund balance that this would leave us at is an 11.63 fund balance for the final budget for fiscal year 25. If you remember to
047our revised budget, we were projecting an 11.01. So, the measures that we took and I want to thank uh Superintendent Kren for the support and a lot of our staffing decisions and saying no to a lot of our expenditures and a lot of our um moves from the revised budget to now. Um we were able to bounce back with our revised our final budget from the revised um from that 11.01 to the um 1163. And then here is the spreadsheet uh representing our food service fund, community service fund, uh construction fund, um and any other various funds that we have, a small scholarship, our self-insured fund, and uh debt service. So, I know we have two um agenda items this evening. Um I would ask if it's okay to to continue into the next item
048for fiscal year 26 preliminary and then open to discussion. Um, I believe that the final budget, um, ties directly into our fund balance for fiscal year 26 starting balance and it's a good transition. So, if you're okay with that, I just keep rolling. Okay. All right. So, starting with a reminder about the reductions we made at revised budget or we committed to make. So, the district um made $2 million in reductions this spring. Those are not immediate reductions. When those notices go out and those conversations are had and and the news is delivered, that is for the fiscal year 26 school year. So, 2526 school year, those changes are implemented for next year. And the goal with those changes is to maintain our healthy fund balance or in this case improve our fund balance. I
049want to make sure that we say it publicly and say it here. Often times making reductions is the responsible uh and the necessary step to take in order to maintain healthy financial status. In our case to maintain a 12% fund balance and our goal we will likely have to make similar reductions next year and that is part of this process. Those are not um always in term to make reductions uh in response. It's to be u maintaining our fund balance. So here are some changes that are impacting our fiscal year 26 preliminary budget. There's been a lot happening legislatively um and a lot of um uncertainty. And so we'll try to kind of talk through here what is um built into the budget, what we know, what we're assuming. Um and then we'll look at
050the details of what the budget looks. And remember, the budget is our best estimate of where we're going. Um and we will revise and do a final budget um next fiscal year as well. So here are some changes for fiscal year 26. our um the the state has um has a basic formula increase of 2.74% in our general education aid. I want to remind the board, we've talked about this at one other point, but that is not all revenue. That is general education aid um which is about 49% of our revenues that we generate as a school district. So that 2.74% is not realistically a 2.74% in revenue increase. TRA um so our teacher retirement so uh is going to increase from 8.75 to uh 9.81 employer contribution um and that takes effect after July
0511st of 2025 that is included in our budget. We won't have readact funding in fiscal year 26. That was onetime money. So that is not included in this budget. We've removed that from any um budgeting here. We have uh adopted a 10% health insurance increase for fiscal year 26 and we're realizing a 17% property insurance increase for fiscal year 26. Um also er funds are suns setting in fiscally as of September of this year and we won't see those federal funds. So all those are built into this budget all those changes and I have a list of assumptions for us to consider here today as well. So, this is built into the budget. There's a lot of items that we're uncertain about and that's part of the reason we need to um always come back
052for a revision at some point during the year. So, this uh first one, Minnesota paid leave, is going to be a payroll tax to all employers in the state of Minnesota and as of January 1st of 26. So, that isn't until mid year, but then we'll start having to pay a payroll tax of44%. um for so for half of the year we're paying that. So we budgeted in half the year at 044%. Um now the the latest um bill that was passed I think has a cap of 1.1 on this tax. This is a 0.88 here. So in future years this may increase as well. Uh we have an assumption on our compensatory dollars. There was a governor's proposal and that bill went and passed. It's a hold harmless based on of our uh compensatory
053enrollment in fiscal years 24 and fiscal year 26 I think whichever was greater and um in our case we'll be winners with this hold harmless it's still going to be less revenue than fiscal year 25 but it's better than the current law that was in place um and that number will vary based off of enrollment um ADMs and so for the assumption the purpose here we added $107,6 $6 to uh the current law to um our revenue for compensatory. At this point, that's our best estimate until we get actual um revenue projection models from the state updated. Um unemployment reimbursement, we're assuming we'll have all those costs reimbursed this year. There's uncertainty on title two and title three federal programs. We did not budget for those this year because um if we don't receive those
054funds, we don't want to have expenditures that are um you know out there not covered. So we don't have a revenue or expenditure for those those programs. If they are developed um it would be a hope that they would cover for some other expenditure that we currently have and help us. Um but they would obviously have to be appropriate costs. And then also we have a non-exclusionary discipline grant that we did not budget for in fiscal year 26. The current grant that we were operating under expired this year. Um we have an application out there for fiscal year 26, but we don't have any indication on whether we'll be winners on uh receiving that grant for the next year. So same thing, we didn't budget for any of those expenditures or revenues this year. Um
055also we know about special ed transportation reimbursement. Um fiscal year 26 will be reimbursed at 95% for special ed transportation and in fiscal year 27 we'll be reimbursed at 90%. Um that's a change from full reimbursement. Um the other um items here I guess we can jump into our preliminary budget. Let me just check make sure I don't skip anything on those assumptions. Okay. So our um some highlights from our preliminary budget. And if you want to turn to page 14 in your budget book, there's some uh more detail on these highlights there. we're going to experience a decrease a projected decrease in revenue of $739,516. So what happened with our um revenue? We saw a general fund basic formula increase and that's fighting basically a decline in enrollment. So when our enrollment is declining
056even with an increase in um that formula, we're still seeing a little bit of decrease. We're also seeing a decrease in our levy which you approved in the 24 pay 25 levy um last December. Um so with 24 pay 25 remind you what that means is that you're we're paying taxes in 25 and we're going to realize that in revenue in 26. So last year's levy is impacting this upcoming year's revenue and um we've approved a decrease in our levy. Um we're also going to experience less federal funds. So, that's just kind of a rough summary on the decrease in revenue for fiscal year 26. We're also going to see a decrease in expenditures um after uh assumptions for all of our benefits um and other incurred um you know costs based on inflation or
057um increases and an assumption on wages, we see a decrease in our expenditures of $1,911,699. Um, so that does show the impact of our $2 million in reductions we made. Um, also, um, the the big thing here, our board goal of maintaining a 12% fund balance. The budget as presented this evening would be a a budget with a 12.18 general fund balance. Um, I do want to draw your attention to, and we're going to jump around a little bit. believe it's page 18. This is a really big table and I apologize. There's a lot going on here, but I want to make sure I address for those of you with a budget book here a correction and then also this that allows others to see this table here. So, um, this table breaks down our
058expenditures from our audited results in fiscal year 23, our audited results in fiscal year 24, our proposed final budget for fiscal year 25, and our proposed preliminary budget for fiscal year 26. So, what this allows you to do is see how our expenditures are fluctuating from year to year in these different categories. And remember, we can look at them in different ways. And a good example here might be in that top row salaries, right? We see it changing from um say um 53.48% to 55 to 54 to 54. It's pretty consistent there. Now, if we look down in the next row, that middle set of numbers, salaries might be spread out a bunch a lot of those different program codes. So, it's it's it's kind of they overlap a little bit, right? Those costs might
059they're just looking at them in different ways. in the sum the total expenditures should tie out at the bottom in those pink bars for each of those. So if you look at all the expenditure object codes for fiscal year 23 they're 56,657,934. Same when you look at the program codes and same when you look by site. So what this allows you to do is just kind of compare expenditures whichever way you prefer and how we're using those dollars. Now, the one thing I'd like to to ask the board here to to look at is in the bottom right box, I had the wrong value for districtwide. I did I hit the wrong entry on my finance software for districtwide other. So, where that says 15,387182 on my screen up here, that changes our total and
060it changes our percentages in that box. So, how however particular you you are about that table, if you you want to make an adjustment, please uh do your you'll be off a couple hundred thousand on that last box if you don't see that. So, so the bottom right corner and that does impact the percentages there, too. I just don't want to give you bad info. I think it's important to note if you look at the numbers um the increase substantial increase between fiscal year 24 and 25 which would have been previous year and then this year uh almost a $3 million increase. Paul, cabinet principles and staff have done a tremendous job bringing that number back down to what our fiscal year 24 budget was and I think that's substantial and needs to be noted.
061Um have done a tremendous job getting us there. So the test will be maintaining this and enforcing that we we're going to stick to it. So um we're committed to that and we'll be any unforeseen surprises we'll we'll get out in front of and make sure we address and I'm getting better at saying I'm getting really not better but it's still hard. I talked about that today but saying no a lot, right? So we got to be disciplined um in maintaining these expenditures. So is anybody need more time on that spreadsheet there? That bottom right updating the numbers. I apologize for that. I it was an oversight. Okay. So back to um the presentation here. The next slide here will show how that fund balance is fluctuating. So essentially we're taking the revenues, our money
062in our expenditures and we're finding the net change in this table. So this is on page um should be right there 19 in your book and with that net change for example fiscal year 24 we had an increase of 494,771 and now to superintendent Kren's point from 24 to 25 that net increase from revenue and expenditures was a decrease of over a million dollars and so what happened that beginning fund balance we'd add that net to it and we were in a good place with our fund fund balance in 24. That decrease brought our fund balance down to 11.63. And now for 26, what we're our preliminary budget that we've built has a 12.18% fund balance. Um, we were a able to maintain and increase our expenditures a little bit. Now, I want to make
063sure we point out the asterisk that our fund balance at district 241, our policy allows us to subtract some expenditures um from our fund balance calculation. Those are um long-term facility maintenance, operating capital, student activities, scholarships, and TR TRA, PER, special funding situation, pensions, uh which is our EUAR's um object code 891. So when we crunch those those formula, it's not a straight, you know, one number divided by another. We subtract those expenditures from our sum um when we do that. So that if you try to crunch the numbers right off of this, you you would actually need the big bigger budget table to to come up with that number. And anybody interested in digging that deep, I would certainly be willing to sit down and look at it with them. But it's kind of
064complicated. Okay. So also back to Superintendent Kren's point about what happens when our budget our expenditures get ahead of our revenues. Um if you take a look at this next slide, this is graph four from page 20 in your budget book. This is an overlaying um of our trend in revenues and expenditures. Those are the line graphs. The red being the expenditures, the blue being our revenues. And then the bar graph behind it is what our fund balance looked like. So what you see is when that expenditure exceeds your revenue, the impacts on your fund balance, right? So we can see that natural consequence of our expenditures exceeding our revenues this fiscal year. All right. So, moving into our food service budget fund two. Uh, I've got on the screen here a side by side
065on page 21 in your budget book. There's a breakdown with some highlights here. Um the food service fund, as we noted in our final budget presentation, is still in a very healthy position after fiscal year 25. We spent down a considerable amount. Um reminder that we didn't get those expenditures for some kitchen equipment in this fiscal year. So those will come off next year. Um we'll build that in um as we are able uh to try and avoid any um MDE spend down plan. However, I think with a year of reduced expenditures there, we're in an okay place where we're not it's not as urgent to make those expenditures. Um but we'll continue to monitor this fund balance. Okay, the next slide is our community service fund. Again, um this is one I know, uh
066Director Double had some advisory committee meetings with his uh community service or community education. Um he's now taking early learning programming back into community education. And so we've got some uh some plans here. We're going to be digging in deep to this budget and just looking at how realistic um what rolled over to fiscal year 26 is. In either case, the preliminary budget is showing a uh fund balance in all community funds. And that's an important piece there. We can't go or carry a negative balance in anything community. And looking into our preliminary budget, our construction fund. Um, this is I wanted to bring this up because we will hopefully spend down the excess of our fund balance there. So, if you remember in 2022, the school board approved the sale of some leftover bonds
067or available bonds to uh complete some safety projects. Um, the last of that fund we've been using to rekey classroom doors and make our classrooms more safe and our facilities more safe. Um, we have all our safe and secure entryway projects that were done in last uh the last school year. Um, we added some cameras um with those funds initially um I think in 2022. And so those funds there's still some balance there. So if we look at this table um we had a fund balance um of 776,000 in that um in fiscal year 24 excuse me um I don't have them broken down by specific code in this table. Um, in the total construction fund, we had a fund balance 776,000. Um, and the the net change in all of our revenues and expenditures,
068we increased by 1,686,174. So, when we look at this table, it does break down the revenues and expenditures of each fund. The other fund, I guess we haven't mentioned, is the 24 2024 um building bond um we used for mechanical upgrades. So, we've been talking a lot about our boilers at Southwest Middle School, Lakefield Elementary, uh, and the pool HVAC at Elbertly High School. That was the 3,945,722 you see in the top of this chart. Um, that was new revenue that year as we sold the bonds. And then we spent 2,267,392 in fiscal year 24. So, we had a fund balance in our construction fund that year of 2,462,452. And then the next year, this year, we um only acrewed interest in our revenues. So the 27,541 and the 35,285 were interest off of those
069um accounts. And then expenditures for those two projects totaled 2,148,526. And I um note that our expenditures for fiscal year 25, I don't um I know how much we highlighted this. I can't remember on that slide specifically, but we're higher in 25 because the project's actually a little ahead of pace. So, that's why these expenditures will be a little bit lower than we were initially thinking. But, um, it'll leave a fund balance this year of 376,752. So, what we hope next year is that we can spend down these construction funds and close them out and be done in fiscal year 26. So you see expenditures um exceeding our revenues by 376,752 which would be the total of our fund balance and leave us with no more money in our construction fund closing out those projects.
070So all right. So um also this preliminary budget table again I apologize trying to get these on a screen is a challenge but I think it's sufficient here. So this top portion is the general fund. Oh, I did receive a question today about fiscal year 25's balance uh for Q comp and I'll try to address it here um today. So I'm just going to quick zip back to before we close things out. Um just respectfully, I want to hold that promise true. So, our um our fund balance in our Q our Q comp which is um as um Janice Jeffrey presented as our ATBPS coordinator tonight that that is our um teacher performance pay um it's a state program. We receive aid um based on our ADMs um every fiscal year uh a certain amount
071and then the teachers and our curriculum uh department will build a budget uh for the use of those funds um tied to theou that's approved yearly by the board. Um and so what we can see here is that this year when fiscal year 25 so this budget that's on the board right now is representing fiscal year 25. Um, and if you can turn to the projection screen up here, this balance 145,965 was a carryover balance. So that is buildup funds from money that goes back to buildings or when our our um funds aren't used or maybe a goal isn't met and it doesn't get used up in a back to building funds. The way the program would work is if goals aren't met, the money goes back specifically to the buildings for professional development and
072they they decide how those are used to grow to meet their future goals. Well, so that combination that 145,965 and the 862904 the 862904 here was what we predict from our revenue projection model that we'll receive in revenue for QMP this year. So those two amounts is what is the amount of money that was there for the budget for fiscal year 25. The total expenditures that were budgeted were 1,14,188. So that was just a little bit over the total of these two budgets combined or that carryover in the state aid that we received. And so to clarify what this means is there's a $5,319 amount coming out of our general fund if these projections hold true. And remember, they're just projections. The one item to note is that the um teacher performance pay hasn't all
073been paid out. So there's some uncertainty in the exact end ofear dollar amount that we will see. Um, and right now this is more of the worst case scenario this um, where we'll see. So there might be and the reason I wanted to go back to the final budget presentation is when we look at our preliminary budget for fiscal year and we're kind of getting the weeds here, but when we look at our fiscal year 26 preliminary budget where we see committed for Q comp there is no fund balance there. There may be some to start the year. Um, and I'll reflect on that a little deeper. Um, if anybody has questions about the Q comp process, it's it's really interesting. I'm still learning more about it, but um, we can certainly sit down and
074look at the actual budget that's been prepared by staff if anybody's interested. Um, and with that said, any questions at all from the board? If you would like to come in and look at any of these specific funds or classes, look at the the specific codes or detail, I have I'd welcome that. So, please just give me a an email and we can set up a time and look at them. Um, I think it would be good for us to start doing some more deep dives on that sort of thing. So, so there's your preliminary 26 general fund showing a fund balance of $7,414,41. And I'll remind you that's not money sitting in account. That's a total assets. So that might be money that we're anticipating to come in in revenue um balanced out with
075our expenditures that took place in that certain year. Um it's not like we're sitting on that pile of cash in our bank account in any given time. Um for example, a lot of our revenue won't come in until next after this fiscal year is over in a cleanup from MDE. So they do a 10% cleanup um once they know our final ADMs, that sort of thing. Um, now here's the fund two, fund four, fund six fund totals. And just another note that the fund six fund balance, um, hoping to close that out next year. And if we do so, then in, um, 27, we likely won't see any numbers in that section. Probably be able to omit that from the presentation. Paul, you might want to uh you know, the board mostly has been through
076all this before, but for the public, you might be asking, well, why would you take a positive fund balance like the construction fund and pay that off? Doesn't that help you out? They might not understand that you can't Yeah. You know what I mean? Yeah. So, we sold the bonds for proceeds for those projects and they're sitting in account and they do acrue interest and there's something called arbitrage where you only have so much time and you can only collect so much interest on those to use those funds up. Um, also as those projects continue, if it's one specific project at one specific site, we have to monitor what's called construction in progress. And it's a kind of a nightmare in our um business office to not a nightmare but it's another process that isn't
077necessary if we can close these down and end those projects in within a fiscal year. So there is um some eagerness to close them down and we don't want to sit on those funds is it isn't allowable to leave them open forever and just sit on those as a nice little um buffer. Um so good point and thank you for bringing that up. And the other thing to consider is when we talk about our funds, and I'm glad you did bring this up. Um, we do have a healthy fund balance in say like our food service fund, it is not allowable at this time to move funds from fund two to fund one or use um fund two to pay for expenditures that would be otherwise um required to fund out of fund one. So,
078um there has been some there has been some legislation uh that passed and we'll get some more information on the specifics of this law that allows more flexible use of fund two funds to maybe pay for um custodial or if we're doing any capital projects in the kitchen, we could potentially um use fund two to pay for electrical and plumbing, that sort of thing. It hasn't been allowable in the past. So, um, we're thankful for any flexibility we can use between funds when the opportunity does come up, but right now they're limited for their restricted uses. All right. So, a couple reminders. Um, so this evening, I I apologize. I I think we have two agenda items. I think it's two two motions and two approvals. Or can you do them under one? I think
079we should do two probably for each budget. Um and then the fall preliminary levy will be back in September um to present our preliminary levy. Um and then the audit will be taking place around that time while the auditors will be in our building and digging deep into our u finances and our team will be hard at work on that and that presentation will come back in November. Um we're also planning to have our finance committee bring a report back to the school board in that September time frame. um just to the the extra meetings, the discussions where they're going um more on that long-term financial sustainability um long-term finance plan. So then this winter, we'll certify our 25 pay 26 final levy. Um that's in December. Um and shortly after that, we'll look to
080revise the budget that's before you today. Um hope to do a revised budget earlier in the winter than March. I feel like uh the sooner we can get that one in, the better we'll be positioned to wrap up our school year. So, um I believe that's what I have for you tonight. So, thank you. Okay. So, to make sure we do this correctly, I'm going to uh look for a motion for um approval for 10.2, which is a final 2425 budget, and a second. And then we will open that up for discussion and vote. And then we'll do the same thing for 2526. I'll make a motion to make uh or to approve the final fiscal year 25 budget. I'll second. Had a second. Okay, ladies. Uh is there um any discussion on 2425 final
081budget? Again, I I thank you for what you all the work you did this year and bringing down those expenditures and addressing the budget issues we had. I want to emphasize I think it's a big deal that Tiger Cub is ending the year, not in a deficit. I mean, I can't emphasize that enough because we were here, I don't know, a year ago and it was six figures of deficit. So, it's tremendous work on John's part and your part to get us to where we're at today. I agree. Compliments to director double on that. All right. Any other see no discussion. Uh let's vote on 2425 final budget. All those in favor signify by signify by saying I I oppose the same sign. Okay. So 2425 passes uh 50 and I would look for a
082motion for 2526 Neil motion second and Mary Joe second any discussion on 2526 I just have a general comment and I don't know what the standard is for a school district but I noticed this the pattern of our spending uh and I think sometimes we complain about administration a little bit, having been one myself, but we consistently are spending less than 4% of our budget on administrative costs. Is there a standard in school budget construction that that would be considered good practice or I mean I don't understand the depth of that. Uh I believe this is a trick question for for a couple different reasons. one, the way our UFAR's coding works, we could simply code an administrator that's in a a gray area to a different finance code and maybe they won't fall under
083that umbrella. And a lot of times schools will do that to make it look like their administration costs are lower. That's not something we would do, but it's hard to compare districts because then you got apples to oranges. The other thing that we're operating under is a fixed number of buildings. So if you have six, seven, seven schools that you're running, you're going to have seven administrators, maybe elevated administrative costs. Where if you have fewer buildings, you might need less administration to run those buildings or you can control those percentages a little bit. So there is it's normally I'd say around that 4% or lower from what I have seen. Um it is it is challenging though to compare district to district. Um, the best thing you can do is look at org charts and
084ask good questions about what those positions look like and what their job descriptions are because even then they could be different. So, y but that's what auditors will look at too. They will look at the EURIRS and if they see a administrator coded under something else an auditor will will correct that. I think that's a good point, Mary Joe. And if you ask those questions, if you ask them to specifically highlight that, they'll look at the data they have and be able to compare compare. That could be if if you would like um a followup on just some comparisons and um and deep dive on ours and maybe that would be something we could do in line with our audit in that September presentation. I I suspect that will be, as you just mentioned a
085second ago about the um um job descriptions, something that Dr. Hy will be taking a look at to uh make sure that uh we're running the district the way that uh we need to. So, yeah. No, it's it's good. It is hard. I mean, I've looked at um MDE's reports uh and and it's hard to even really pick out a school. You can't really just pug out like I said enrollment on a school either because of the structure the schools in to see where we're falling at. I some reports were were high, some reports were right in the ballpark. So I uh look forward to seeing that in the next year kind of how that all shuffles out. Any other uh comments on the 2526 preliminary? If not, all those in favor signify by saying
086I. I oppose the same sign. Thank All right. Good evening, Chair Clott, school board uh members, Superintendent Kren. So, tonight we are bringing forward 10 policies for review. and recommended approval. So, um, as Director Hoffman and Director Schindler mentioned in their reports, we had a policy committee meeting June 2nd, um, where we reviewed, um, the following policies. So, we are going to break it up a little bit. Um, I'll take the first portion, um, and then I'll ask executive director Durban to join us for the second half. So, at the policy committee, we uh, did a review of policy 101.2 2, 203, 203.2, 203.6, and 430. Um, there were no recommended revisions, but again, just a review of these policies. Um, and then what we did have for policy was a change um to the
087interview procedures um when looking at interviews of students by outside agencies. Um so that is a a direct reflection of that change um from the statute 260.22. So that is uh tonight's portion um regarding I would say these sets. Um I do ask for your uh approval of these policies. I think we did note Ashley too with the review of policy two uh 203.6 is that cons if a consent item is pulled out of that list. It's supposed to be acted on immediately and not put to the end of the agenda. It's more of just a meeting operation thing. But that that does that ring a bell? Yes. That thank you for clarifying that. So on that consent agenda um and I think Darcy has done a great job too that is listed on our
088agenda under consent um that if something is pulled off it it is immediately taken action on afterwards and no longer further down in the board agenda. So that's where you get your 6.1.2 or 6.2 point you know kind of puts it right afterwards. Yep. Thank you. Any other uh comments? Okay, I will take a motion for all of the the five policies. I guess there's six with the revision up there too that uh as she had brought up to our um attention. I look for a motion to approve those policies. So move. Is there a second? Any other discussion on the policies? Seeing none, all those in favor signify by saying I. I oppose the same sign. Thank you very much. Well, that brings us to the uh end of our uh agenda. Oh. Oh.
089Oh, we got one more. Oh, yeah. I see you there. Gota have it. Come on up. Can't get enough. Must be the time. All right. So yes, we do have four more policies or three for uh revision and one for review. Um so 701 this policy um establishment and adoption of school district budget. Um so adds authority for the board to consider use of available reserve fund balance. I think this is a proactive revision recommendation um should legislation change where we can maybe move funds from one fund balance to another. So that's policy 701. Policy 704 fixed assets. Um so with fixed assets, this is something we monitor in the business office. I mentioned our construction and pro progress. This is similar. We take all assets that have a material value and we monitor those
090in our financial systems um using um Gazsby um and UFAR standards. So um this one uh adds in that um accounting system shall be operated in compliance with the applicable provisions of the uniform financial accounts and report standards UARS with capitalization level that equals or exceeds $5,000 and then also adds group purchases for technology furniture or other equipment that purchase at a per quantity that otherwise may be below that item threshold. The threshold is 25,000. Um, so this is something that we have been doing in our procedures. It's now in the policies or in policy and it also ties to policy 721. So essentially if an item is $5,000 or greater in value, say we bought a vehicle as a school district, we would need to monitor that asset and its depreciation over time since
091it is over $5,000. However, if we bought one item that was less than 5,000, we wouldn't have to enter it into that um EUR system. If we bought a handful of those items that are less than 5,000 and they equal over that 25 thou,000 threshold, then we would have to add them to the So, for example, um school furniture when we bought all of our elementary furniture, we have to add those in as fixed assets. So, all right, policy 721, uniform grant guidance policy regarding federal revenue sources. Essentially, um this um updated a lot of language items, um replacing CFR with code of federal regulations and uh increased um equipment um um equipment, tangible personal property um is defined with a a cost of 10,000 versus 5,000. So, similar to our fixed assets, um they
092change the definition of an equipment value to 10,000 and I think there was one other um a lot of our funds we receive are federal funds. So, when we look at this policy 721 um uniform grant guidance, we call it the Ugg. These procedures should be in line in for federal requirements of federal spending and um receiving federal revenue. And so, um, one of those requirements is that districts must take all necessary affirmative steps to ensure that minority businesses, women's business enterprises, and labor surplus area firms are considered, uh, and used when possible. Now, they're adding to that veteranowned businesses to that definition. So, that was an addition based off of federal guidelines. Um, and then there's also an excerpt in here about cyber security stating that the school district must take responsible or reasonable
093cyber security and other measures to safeguard um, personal um, identifiable information uh, information that the federal agency or past serendity designates as sensitive or other information that school district considers sensitive. So, um, some pieces in here to make us uh, in line with federal requirements for um, or uniform grant guidance. So, I believe that was all in that policy. I'm just going to do a quick double check. Yeah, there's a section in there about mandatory disclosures, basically saying that if we violate any of those federal expectations, we would disclose it as a district. So, but otherwise, those are the revisions. Um, and would you like me to jump into the review of 9 911? That one is a very simple rule. It's restricting. Just got a quick question for you'd mentioned on 721 as federal
094majority of ours is federal funds or state funds. Is that over supersede or does it matter? They're either federal or state. I I would just in general our federal funds it's there's more requirements in those purchases. However, we use that uniform grant guidance for a lot of our um procedures in our business office. So, they're aligned and then we don't have that worry about whether we're within those. those standards are pretty common to be used um across the board. Um you know there might be variances in that $10,000 threshold and 5,000 for fixed assets or what's considered equipment. Um but we try to align them so that they're similar processes. So, okay. Um, on the review of policy 911, that uh policy is two sentences long. Um, and it um is no person shall ride
095or drive a snowmobile in or on any public school ground of Independent School District 241 and all terrain vehicles should not be operating on school grounds. So, pretty simple one to review there tonight. All right. We'll clump these together again in one motion. So, is there a motion to accept these policy revisions? So, move. Is there a second? Second. Neil seconds. All right. Any other discussion of the above four mentions. All right. Seeing none, all those in favor signify by saying I. I oppose the same. Motion carries. 5-0. Now I get to the bottom of it. district where two of the high school kids.