001I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Alrighty. So 3.0 know is the approval of the meeting agenda. Huh? >> I'll make a motion to approve the meeting of the agenda. >> I'll second. Any discussion? All those in favor? >> I oppose approved. All right. 4.0 are acknowledgments and recognitions. Um I would just like to acknowledge that today was the 67th day of school for all those who recognize such an occas. All right. Five point or recognition. >> How many days? >> 169. >> Holy man. >> But 67, Eric. 67. >> Christmas is nowhere near half. >> You just missed it. You just missed that phenomenon. >> Huh. Too bad. Um, >>
002that's all right. Well, 67. >> Oh, I get it. first. You don't have a first grader. >> I don't have a first grader, but I've heard funny about this. >> All right. All right. Well, hopefully that doesn't become like a Tik Tok meme, but you know, if it does, so be it. All right. Um, >> you or me. >> Perhaps both of us. >> This could be a super cut. All right. So, 5.0 recognition of visitors and community comments. >> It's been filmed. It's probably already up there. Old guys toxic. someone down there filming. Um, so welcome everybody to the December 2025 uh ISD 166 schoolboard meeting. Uh, glad to have you here in the room and those of you online. Uh, appreciate you being with us. And our community comment section is an opportunity
003for the public to address the school board on an item included in the agenda in accordance with the guidelines printed at the end of the agenda. And we don't have anyone signed up tonight. So we'll move on to 6.0, which are our reports. The first one up is the principal's report. Mr. Blanchi, hello. Good evening. Good evening everybody. Uh yeah, it's been um it's been busy at school um as already thunder on that, but it was the 67th day of the school year and there was a lot of fun excitement with the elementary lunch was uh really fun uh to say the least. Um and also last week we had a representative from the 1854 treaty authority come and work with our K3 students. Um spent the day here and it was a combination of
004classroom lessons that focused um on food webs and then they went outside and talked about ecology and fur bears and that type of stuff. Um and so u uh Teague was here and had a great time. The kids had a great time and it was really sweet. uh when the representative was leaving um she did comment like just how like loved and nurtured the kids seem and she really wanted to come back and continue doing this work with the kids. So um they had a really fun time with that. And then um we did this last year and we're going to do it again this year in uh Sawtooth uh the last day on the 23rd. We're going to end the day just in the ACA with a with a movie um for with the
005with all the kids and we're going to have hot chocolate and that type of stuff. Just kind of a fun way to set them into break. And then in the middle school and high school, uh, winter activities are in full swing. I'm sure Greta will mention that, but we got a boys basketball game again next week, Friday, home game. And then our band concert is next week on Thursday. And so the middle schoolers, I believe, are set to start at 6:30 when they finish up. The high school students will perform. And then our middle schoolers, uh, middle schoolers, as they usually do, uh, right before winter break, have another one of their exploratory days. They're going to they're signing up for a bunch of different activities in the community, curling, um card making, winter survival
006skills, and they spend the afternoon on the 23rd doing that again as we head into winter break. And then the community uh reminder is just winter break coming up and it's not until uh doesn't start until the 24th. So, a little unusual um winter break due to all the construction and stuff, but um 24th and they'll be back on Monday, January 5th. That's what I have for you. Awesome questions. >> Great. Well, thank you so much. Have a great break. Yes. >> Um, all right. 6.2 is our student school board member report, Miss Gre Young. And I should recognize and acknowledge that this is Greta's final school board meeting. She has served an entire year in this role um starting as a Wii junior and now she's a big senior um providing that student perspective
007here which we really appreciate and we appreciate you taking the extra time to to do this every month. I know you've got a lot going on and um you know it's an extra bit of work you don't get a grade for or anything like that but it's important and we appreciate you doing it. Um so thank you. >> Yeah, you're welcome. Thank you. >> Um we appreciated having you. Um and actually before you get into your report, we got you a little momento to take with you. Um Carrie's not here yet so we'll have to get her to connect with you to sign this. But something for you to >> awesome >> to read and um >> read this book >> as you kind of go on to the next phase, you know, keep us
008keep us in the loop. And I think we should probably put you on the spot before you give your report. What are what do you have kind of coming down the pike here at the end of your senior year? >> Um that is a really good question. I don't know. I've applied to like six different schools, but I don't know what I want to do or where to go or anything like that. I'm just kind of going with people. >> Okay. But you're you're applying to schools, so you're thinking you're >> I'm school after. >> Yeah. >> I don't know what, but I'm gonna do something. >> Okay. Are all these schools in Minnesota? >> No. Some of them I applied to like three or four that's like in state and then I applied to
009like fun schools that we'll see if I end up. Okay. >> Okay. Uh, hello everyone and happy December. It's hard to believe we're already a couple weeks back from Thanksgiving break and heading into the final stretch of the semester. Even though December is just getting started, there are still plenty of things happening around the school that are keeping students busy, involved, and in the holiday spirit. One fun highlight is this month we have dress up days. So every day there's like a different thing like fun socks or things like that so students have something to look forward to each morning and it's a great way to get a great way to spread cheer throughout the building. Uh our sports teams have been off to an exciting start. Last Friday the boys basketball team hosted their
010first home game and they came out with an impressive win against Bloodwood. And then uh it was also great to see our cheerleaders back in action. They had some stunts and flying things was pretty crazy. And um with the recent snowfall, our ski teams have been outside practicing. And tomorrow, the alpine team gears up for their first race against uh or not at or not against but at Giants Ridge. And then also tomorrow, our boys basketball team will be traveling to Cromwell to take on the Cardinals. So if you happen to see any of the boys, make sure to wish them luck. And our girls team recently got a new coach, which is super exciting news for them. and they'll officially kick off their season with a game next Thursday. Uh, middle school has been
011busy as well. Right after or no, right before Thanksgiving break, the sixth graders took a field trip to the state capital and they got to see a play and I was talking to their teacher and she said that they had like the best time ever and they loved seeing the play and the story that they read like come to life. And then they made thank you cards for the education foundation and they had a lot of good things to say. And then looking ahead, middle schoolers have an exploratory day on December 23rd as Mr. Balanche mentioned. Um we also have upcoming events in the arts. He also mentioned how there will be a band concert next Thursday. So that's exciting. And yeah, that's like all I have. So students are busy. We're all busy. And
012yeah, so thank you guys for letting me come to your meetings and talk to you. It's been a pleasure. And as always, if you have any questions, feel free to email me. >> We will. Thank you. And um keep working on those juniors to shake loose or your successor. >> I have a few that I'm gonna interrogate tomorrow at >> Okay, good. >> Thank you guys. >> Thanks, Ka. They're a nice kid for sure. >> Okay. 6.3 is our superintendence report, Mr. Leno. >> Yeah, thank you, Mr. Chair. Um, just a few things to mention. uh one uh we received a notification from MDE about two weeks ago that there is going to be a second round of the native language revitalization grant. Uh and so it is my intent to work with Eric and
013Anna Desa um to write another grant application that will hopefully augment the amazing work that is already happening at Sawtooth Mountain Elementary in our secondary building with Ojiway Language and Culture. Hopefully, we'll get the grant. Um, we're brainstorming right now about exactly how to sculpt it. Um, but it's due, I think, on the mid January. It's like the 16th. Um, so we've got a little bit of time yet to get some of those details worked out. Um, and then last night, the LEC met up in Grand Portage and uh did their hard work on the IP, the Indian uh policies and procedures. That is a document that we approve every single year for the LIC approves it and then the school board approves it so we could submit it with our impact aid application uh
014which accounts for three to $400,000 in revenue each year. Um for those that don't know about impact aid, it it applies to districts that have a lot of federally owned land. So districts with national forests, districts with military base, districts with reservations. Um, and there's different ways to apply to qualify for funding and uh, we've been doing this for as long as I know of. Um, so it's an annual process. I expect that the board will uh, see that document next after break. Um, the LA is going to meet again I think on this like the second weekish of January and then our our meeting I think is January 22nd and that's when we'll look at it and hopefully just uh, approve that. that has to be submitted with the grant application in early February.
015And then lastly, I wanted to highlight um kind of a celebration. I sent out an email today to all of our staff because I realized, you know what, we have a lot of new faces joining our team as we flip into January and and they just kind of happened over the last month. And so to help people welcome in these new people, um Caressa England will be our new school uh office admin um administrative assistant. Uh as Cindy uh Iverson steps into retirement. Uh and so she's been hired. She's going to be here on the 16th and do some touring and meet and greet. Uh and then we're actually going to start her on January 5 and Cindy retires on January 16th. So there'll be like a two week overlap of employment um to try
016to get up to speed as much as we can. So we're excited to welcome Teresa to um Cook County School. She yes, she has a place to live. She got one of the Heights apartments and then had that lined up before she applied uh for the job. Uh we signed a contract recently with Northshore Health for in-person OT and PT services one day each week and that starts in January. Uh Anna Sorenson, uh Anna Sorenson, sorry, will be providing the OT services on Tuesdays and Fridays, and Kelsey O'Neal will be providing PT services on Tuesdays and Thursdays. So, that's an expansion of in-person services for our kids to reduce our dependence on virtual services. After I just said that, Becky Lamire, she is a virtual elementary special education teacher and she started in October. She's
017currently working with uh 14 elementary students. And then we recently signed a contract with Sawtooth Mountain Clinic. I think we did that in October if my memor is right. And so Lindsey Gao and Anna Ross, they have started being here on Wednesdays. They actually use this room with the wall up and they work with some of our students providing behavioral health services. And then last but not least, um I'm happy to share that Greater Minnesota Family Services, uh which is who holds the contract for Lisa Lisa Seder, a mental health therapist. Um, this last time we approved that contract, we we approved two FTEES, but it's only been Lisa this whole time because they just they've had this position posted for o over a year. Uh, and lo and behold, uh, they have an applicant,
018Naomi, believe it said Pienta or Pena. Um, she's coming our way. Her husband has a job with Forest Service um, in Toi and uh, she does um, she does mental health counseling. Uh so she will work under the supervision of Lisa Seder uh and double uh the therapy being offered here in our school for mental health. So all super exciting. It's all kind of trickled. Um and that's a lot of new faces that are uh stepping into our school mid year and they're all celebrations because we need the we need those supports. >> Fantastic. >> All right. Thank you. >> Okay. Um >> on her way. She had parent conferences tonight. That's why she's late. >> Gotcha. >> She'll be here soon. Good night, Josh. >> Um, okay. 7.0 is our consent agenda. Um, is
019there if there's anything that needs to be pulled for further discussion, speak now. Otherwise, we need a motion. >> I'll make a motion. >> I'll second it. >> Any further discussion? All those in favor? I >> I those opposed. Motion carries. Consent agenda is approved. All right. 8.0 or discussion and action items. I'm just going to point out real quick that um 8.6 6 is our truth and taxation meeting which we are required to hold at um our truth and taxation presentation at uh 6 p.m. Um so depending on how things progress here whenever 6 pm rolls around we might uh reorder things in order to make that happen and then we'll jump back in wherever we are at that point. Um, okay. So, we'll we'll just get going here with 8.1, which is to
020accept the expenditure and revenue report for November of 2025. Um, it's here in our packet. And also here in the room, Theresa Oberg. Do you want me to run around? Well, speak whatever. >> Doing double duty tonight. >> I don't have it in front of me, but I will look behind me. Um, similar to last month, we're tracking with our revenues and expenditures. the um noted increase in revenue was that tax payment that came early, but it's also a larger tax payment because we have um referendum funds that we'll have to be paying out in January. So, those payments will go out in January. So, that's kind of where that discrepancy or difference is from previous year. Um other than that, it's pretty I think I put on there up in the top it was
02141% of the year. Um but most things are going to look like 30% because the school year starts in Jan uh September. So we're not quite at the end of the year kind of spikes balloons shall I say when teachers get paid out their full salaries >> right >> because of our fiscal year being January to June or excuse me July to June. >> Um unless you have any other questions we can move on because there's lots on the agenda. Does anybody have any questions? >> All right, just need a motion. >> I'll make a motion to approve the expense and revenue report. >> Second. >> Any further discussion? >> All those in favor? >> I. Those opposed? Motion carries. Thank you very much. Um, okay. 8.2. Uh we've got our buy on sale finance
022plan and presentation here from our friends at PMA or PMTA as it is now referred to PTMA excuse me >> great thank you can hear me okay and see the presentation on the screen >> perfect yes thank you Michael welcome >> yeah thank you yeah just explanation we were PMA we merged with a company named PTA PTA and now we're PTMA. So that's a fresh change in the last year and we don't get any points for creativity. We're finance people. >> So I got to point out real quick, Michael, sorry. The this summer I had a customer that I was talking to up at my business and as we were discussing things, they mentioned that they worked in oh public finance projects, whatever. And I was like, "Oh, interesting. What's what's the name of the
023company?" We were doing a shuttle drive together and they were like, "Oh, PTMA." And I was like, "Oh, interesting. I know an organization called PMA." They were like, "Oh, it's actually the same." So, I um one of the the people that work in the organization um we shared a a fun little small world moment um this summer. >> Awesome. Well, I'm glad my colleagues are enjoying the North Woods of Minnesota, so that's awesome. and I wish I was there tonight. So, I appreciate you being flexible to allow me to do this on the video. Um, so I'm going to start, you know, just congratulations on the successful vote here back uh last month on the referendum and that's the the um start of this and I know we went through this process just a year
024ago. So hopefully some of this is a familiar tune for you. Um related to we now have uh the authority to move forward with the bond sale related to the 6,650,000 that was approved here this last month. In relation to the bond structure this past spring, early summer, we had some conversations about what this looked like and how it related to the potential tax impact of this particular bond issue. So, just a reminder of what that what that meant on this particular chart, the dark blue colors are the are the blue and the green are your current outstanding bonds and the yellow are the proposed uh payments. So, each one of those bars is a payment uh in a fiscal year. And you can see that the yellow payments are smaller and then the last
025year is a little bit larger uh as the other bonds pay off to be a total of 20 years. Also, and you'll hear more about this later in your truth and taxation, but you see last year when we sold the bonds, we did a little bit better than we had expected. So, there was a reduction in that dark blue payment from fiscal 26 to 27, which is partially offsetting the increase related to this new bond issue. We've included in here also the sources and uses of funds. So the total you are authorized to sell $6,650,000 of bonds based upon that ballot question. If you remember this process from a year ago, there is a potential to receive uh that much or slightly more depending upon how the bid comes in with reoffering premium. We also
026wanted to make sure that we were transparent in relation to the projected cost of issuing the bonds which is shown here. as we think about that. Uh well, going back to the referendum bonds on this structure and what you'll hear later is that the tax impact that we shared with your public is going to be right in line with where the taxes come in for next year. And this last payment you see is a reduction from fiscal from years 19 to 20 in the bond structure. And so because we the interest rates have come down a little bit in the last six months and so we're able to reduce the size of the last payment. So when you look at that truth in taxation and how the taxes come together for next year, we are
027right in line with where we shared uh that overall. And since we're going through this process, we also evaluate the school district's current outstanding bonds. And you have a bond issue that is callable, which means that you can pay it off and refinance it if the market would allow that. uh in relation to lower interest rates and based upon current market interest rates as we sit today. Your 2017 bonds, which were also voter approved back uh almost a decade ago, are callable, which means we can prepay them. And there's $5.1 million outstanding. And if we pay them off after the cost of issuance today with current market interest rates, we're expecting you could save about $54,000 of money to the taxpayers of the school district. So, it's not a massive amount of money, but because
028we're going through the process, I think it's important and it does show good financial stewardship of the school district to try to save wherever we can. So, we're proposing that you combine this as one bond sale, and there's efficiencies to doing it that way. The the refunding would not be as efficient or work as well uh if we were doing it as a separate standalone issue because this helps save on the cost of issuing the bonds. That savings, it's $54,000 total. But you can see here on this slide, there's a column for your current payments and the expected new payments. you take the current minus the new, you get this right savings column. So, it's roughly $5,000 a year over an 11-year period of time that the savings uh will be realized for the school
029district. And so then when we combine the two issues together, you have about an 11 uh 11 million bond issue um with both the school building bonds and the refunding bonds together sold as one financing structure. In terms of the process to go through this tonight, you have a resolution, the next item on your agenda to proceed forward with the bond sale. I'll get into more detail about that. Next week, we would proceed forward with a bond rating call, which is a rating is a call with Moody's Investor Service. They write a report about the school district's ability to repay the bonds. We go through that process in order to lower the interest rates. We would have the rating and the bond documents finalized here by the end of the year and released to the
030bond market. And our plan would be to sell the bonds, which is the date that we lock in the interest rate on Wednesday, January 7th. And then we'd be back in front of the school board on January 8th to ratify the bond sale. And the money would be received by the school district on February 4th. So, uh, the resolution that you have in front of you here tonight does a few things. It approves proceeding with the bond sale. It also allows us to do an application to the state credit enhancement program. This is a program where the state of Minnesota will pay back the bond holders for if for any reason the school district cannot on the payment date. We don't expect you to need to use this and it and you haven't ever used
031it in the past, but it does significantly reduce the interest rate on the bonds. It also allows for the reimbursement of any project expenses uh to the extent that you've had those uh to date uh on the project. In relation to the bond parameters, the the bond sale would be approved tonight as long as we're within these parameters such that the true interest rate or interest cost cannot exceed 5%. The school building bonds or the voter approved bonds cannot be more than 6,650,000. The refunding bonds cannot be more than 5.2 2 million and the refunding bonds must have a positive present value savings to the school district after the cost of issuance are uh included in the analysis. And then the the resolution authority would expire on June 30th of 2026. Uh after this process
032goes forward, the next steps in the process is we'll we'll continue as we have with your prior bond to understand how the funds will be spent as the projects are completed and we will help you invest the money and the money is held in a segregated account. These funds um are not comingled with your operating funds of the school district. That's on purpose so that we can account for them separately. There are also other rules related to taxexempt bond issue proceeds which we're talking about here and there many IRS regulations will help you um monitor those and be in compliance with those regulations. So that's the presentation I had. I'm happy to take any questions about the bond sale either the voter approved or the refunding and then also the resolution that you have in
033front of you for action tonight. Yeah. Okay. >> So, they've matured to the point where we can recall call them. >> Yep. Yep. Yep. >> And it's lower interest rate. is >> slightly barely >> and it would not be cost effective to re Michael can correct me if I'm wrong, but with $54,000 it probably wouldn't be worth doing on your own, but because we're going through the process, you can just tack it on. >> That's right. And that um that five million that that are tolerable, what when was that supposed to um was that 10 more years you said on that? >> 11. >> Yeah, it's it's a final maturity is in 2037 and we're not changing this the bond uh term at all. So, you know, sometimes when you like refinance a mortgage, you
034extend it out for a new 30 years or a new 15 years. We're not doing that here. We're keeping the same payment years as was previously uh included. >> Sure. >> Great. >> Capturing an opportunity. >> Well, thanks for um uh identifying that opportunity and suggesting it. Um, like you said, 55,000 isn't like the most money in the world, but it's a salary for a year, so we'll take it. That's great. >> And this saves the taxpayers that money >> for sure. >> Doesn't add money to our general fund. That makes sense. >> Right. Right. It's the It's going to lower the payment. >> Yep. >> For by the taxpayers. >> Yep. >> Yeah. >> Um, okay. Well, any other questions for Michael otherwise? Um 8.3. >> Let me see. >> 8.3. Yeah. So, um
035yeah, so we'll move on to hang hang tight, Michael. But yeah, we'll move on to 8.3, which is um the resolution uh approving the general obligation school building bonds uh series 2026A um which is in the packet and ignore the link on the top line. Go to the line below. >> Okay. >> Then you'll get it. >> Okay. So, we've got Okay, great. Yep. I see that here. >> There's that resolution in your packet. And then the wording for the motion is in your tenative motions. You're approving the general obligation school building bonds series 2026A resolution as presented uh in the packet. Oh, wait. >> Okay, I'll second. Okay. Uh, further discussion? >> All those in favor? >> I those opposed. Uh, resolution is adopted. All right. Thank you, Michael. and the PM. >> Thank
036you. >> Calling you PMA still the PMA team. Sorry. Um, appreciate your help on this. Okay. Um, all right. 8.4 is to approve the construction contracts. And let's see, we have >> Jason and Damian. Dave, Jason, and Damian from ICS in the room. >> Sure. Chat about this. Welcome gentlemen. Um, so we did provide a U construction recommendation packet to the group prior to the meeting here. Uh, would you like us to provide an overview of the information that was in there? >> I think that's a good idea. >> Yeah. Um so that uh recommendation packet included the overall budget summary which we've looked at several times as a group. Uh a bidding matrix which was the uh low bid contracts including their alternates. A recommendation letter from ICS to proceed with the contracts based
037on those uh low bids and the alternates. um the bid tabulation which includes all of the bids that we received for the project. So like uh 15 bids and also the the bids that were submitted from the low bid contractor. So it includes all of that information. Um the budget summary includes the base contract value. So that initial um value from the the bidding, it also includes all of the adjustments we've discussed uh to the budget. So the bid alternates, construction efficiency, the outdoor learning, contingency interest, and and also the rebates. And um it does also include the value engineering. So there is approximately $1.1 million of value engineering. The value engineering process would take place after the construction contracts are awarded and that would be to align the construction costs to the budget. Um
038so we are recommending to proceed with construction contracts based on that uh the bid value that we've received. >> So um in the PAC meeting I just have to say this was very confusing to me. So, I I don't I don't know if you guys just understood what he just said, but it it took me a while to kind of wrap my head around it. So, our bids came in higher than we anticipated, >> but they're the lowest bids. And with we have to either accept these bids or go out to bid again, which creates a lot of risk. >> So, we have to accept these bids. And then once we accept them, then we can go back and say we're taking this thing out or we're changing this material or we're doing something that
039cuts that budget. But if we were to try to do that now because they've already bid, we would have to start the process over again. >> Makes sense. Did I explain that correct? >> Yeah. So state bid law doesn't allow us to to negotiate prior to contract. So we receive bids in a public format. The bids are there. We have the numbers. We validate that they're good companies. We validate that their number is solid and then we make a recommendation to either award or not award the the bid and one you know we can we can have conversations about I you know they you know we work with the consultants and we work with the the low biders right we talk to them and you know look for ideas and you know what things can
040we work on to help us get our budget in line with with the cost. Uh but we cannot actually put anything you know do anything until we're contractual. But once they're contractual, then we can send out. So on the back side of this right now, we're working on our on our first uh our first uh uh proposal request that encapsulates a lot of the changes we talked about. So once we're contracted, we will then send out a proposal request that'll be reviewed by our group prior to we'll send it out and then we will get that pricing back and work with those contractors. So basically there were built-in alternates that they bid on >> and now if once we accept the bids you can propose other alternate ideas but you can't propose that until I
041write messages. >> Correct. Yeah, that's that's that's uh unfortunately that's the way we got to conduct the business because of the state bid law >> unless like Reno was saying, unless we were to reject the bids and redo the process with those new changes to bring the total budget down. We're just at the risk of bids coming in >> not where we want them to be. They could be higher or whatever. >> People didn't bid again >> or people don't bid or whatever. Yeah. So, >> right. >> Um, and we, you know, we kind of have spent a fair amount of time on this and, um, um, we've been able to, there's certainly some value engineering things and some little modifications to the original plan as bid. Um but between um the that process and
042kind of some refining of the numbers and like work that ICS has done um I think we've been able to like largely maintain the project integrity through this process um and and get those things in line and you know the I think obviously the hard the uncertain part is, you know, after we issue the contracts, going back and making sure that, you know, our evaluation of those value engineering is something that, you know, they agree with and we can kind of make it align. But I'm feeling I'm feeling better about it now than I was originally after the bids came back higher, you know, in terms of the project, you know, forging ahead and being um, you know, what we've we're expecting out of it. self for what it's worth. >> And the value engineering
043will get reviewed again as a group. >> Sure. >> Yeah. So when when we do uh propose those uh the change order to bring the budget into alignment with the construction cost, all of those individual items will be reviewed. Great. Um questions from from you guys that haven't been in the weeds as much on this. I would just point out that in your tenative motions um it's scripted very intentionally to say approve the bids as presented and commence with contract execution and value engineering to align cost with the budget but commences after the bids are accepted and uh we will have majority of the items to review for the late the January 22nd meeting for review and approval. Um there there's a couple items that we're looking at that may take a maybe take a
044month longer or two months longer just because there's some more design included or involved with it. But uh but uh we'll be working together as a team to get make sure this project aligns with uh keeping the scope in intact as much as possible and uh provide the best project we can for staff and students. All right. So, when you want to make the motion as Chris instructed us to uh make the motion, but I can't remember the exact word. >> The sheet behind your agenda >> 8.4. >> Yeah. Yes. That's the magic sheet. I don't >> That's your script, man. You've only been here years. >> All right. I motion to accept to approve construction bids as presented for county schools IC 166 project and commence with contract execution and value engineering to align
045the construction costs with the budget. >> Very nice. >> Second. >> All uh any further discussion? >> All those in favor? I those opposed. Motion carries. All right. Thanks, Clint. Nice job. >> Spoke this language. >> I cracked you up words. You're you can have a now you have got a treasure trove of you can go to >> doing a lot of motions. >> Um >> that's awesome. >> All right. So see where we doing on time order till. All right. So 8.5 um we've got script to approve the ICS AIA amendment here and we've got Lori from ICS um to talk us through that process. Hello Lori. How are you? >> Good. How are you guys doing? >> Good. Thanks for being here. Good to see you. >> Thanks for having me. >> All
046right. So, we've got this uh amendment to our existing professional services agreement. Um, and if you want to just give us a brief over here. This is basically to account for the referendum that just passed. >> Correct. Yep. So, this is the added scope. Um, the AIA contracts, the original that um has terms and conditions for the architect and engineers, the professional services and the construction management. Um those contracts were the originals were reviewed by the attorney um a year ago and actually it was the December 12th meeting so that we that you guys approved those and this would be an amendment to add the scope of work that was approved by the voters this this November. Um so all the terms and conditions stay the same and in that those original contracts they talk
047about if there is added scope we would um get approval from the board before any of that work would be designed or moving into the the next phase of of design and construction. So same services, we have the same team that would be doing the design. Um and then utilizing the the PC or the PAC group ALS to continue to do the user groups and um uh the design process that we talked about at the last meeting. Um so this states what is in that scope work that was outlined in November of 25's referendum. It also states the adjustment to the the U timeline which it doesn't adjust that original timeline but just um it's we start construction we're anticipating in the spring of 27 and then finalize it the fall of 27. So that
048just outlines that so you guys understand that this added scope isn't anticipating to push the project into another summer. We can we can do it within the project timeline that we currently are on. There were there were two contracts, two of these sort of AIA form contracts I thought that we signed >> a year ago. There's >> there's this one and then yeah another one. But is this cover both of those or >> correct? So those two are linked together and then this would be a amendment to those two combined. >> Gotcha. Okay. Um Okay. >> Just need a motion. >> Yeah. to see to include the stuff the last stuff that was approved >> um >> to approve. So I'll make a motion to approve the ICS AIA amendment as presented. Beautiful second. >>
049Second. All right. I thought I was doing that, but that's okay. >> Uh, any further discussion? All those in favor? >> I I Those opposed? >> Motion carries. >> Okay. Thank you. >> Lori. >> Um, all right. So, it's not quite 6 o'clock, so let's move on to um cover some of the other items here. So, we have >> 8.8. Um, so we've got 8.8, which is to accept donations for 2025. We got a resolution accept donations. >> Thank you. >> You guys are okay. >> Oh, yeah. Yeah. Yeah. For sure. Thanks for Unless you want to stay for the truth and taxation meeting. >> Thanks, guys. Appreciate you being here. Um, okay. So, we've got our resolution accepting uh donations for December of 2025 here in the packet. Um, got three donations. Jen, >>
050a large basketball >> large basketball donation. We continue to get an outpouring of support each month is remarkable actually. Yeah. No, these are this is great. I'll make a motion to accept the donations with uh gratitude. >> Gratitude. Yeah. To the to those donating to our students. >> I'll second. >> Any further discussion? All those in favor? >> I. Those opposed? Resolution is adopted. Okay. >> We got a little bit of a a recess here. We got 9 minute quick recess. >> I thought I read in an email it was going to be like two and a half hours. I mean I'm grateful it isn't but >> I said prepare for two hours because we have to have this presentation in there and if people showed up at a truth and taxation questions I mean
051that >> only could take a break. >> Yeah, we're gonna we're gonna take a break and we'll reconvene um at 5:58. If you were watching the agenda and thinking that it was changing while we were going through the last discussion, it was and I apologize. I have like new technology here and somehow I was like copying and pasting and I think it's correct now. >> There we go. >> I think I got it. >> I swear I'm opening the exact same document I just opened. But >> it was me clicking. >> I was like, "Oh, >> I think it's better." >> I thought I was losing my mind. Appreciate it. I wasn't. It was me and Yep. Okay. 6 o'clock. We are back from our recess and we are here to convene uh our Cook
052County Schools truth and taxation meeting for 2025 going into 2026 here. And we've got uh Teresa, the business manager here at Cook County Schools to lead us through uh the presentation. >> Yes. Good evening. >> Good evening. um you are my audience because currently we don't have anybody but maybe if somebody listens in they will we'll learn uh about the truth and taxation at the school. Um so procedurally we have to do this every year all taxing entities have to perform or offer a time for to talk about the levy to talk about our budget and then offer opportunity for the um public to ask questions. Um, but everyone is always welcome to call me or email me with questions as I am available. Um, our levy cycle, we've seen this before where we certify
053the levy in 2025, we pay it in 26 and then it is used in fiscal year 27. Um, so if we were to look at a timeline on how that breaks down, um, they kind of bump up and down. If we go to the next slide, um the school district has its own timeline as well as the taxpayers. It starts with the taxpayers. They um we or anyone who is a property owner receives a tax statement in the mail. Um actually it's a property valuation statement in the mail in April. Um and then in the spring, sometime after that, there is time where they can go to the county to um challenge or ask questions about their property valuation. Um and then in the summer we enter information into the state system that then in
054September we certify so that they the county as in um we'll put that onto the tax statement. So in September we certified a preliminary levy at maximum that generates numbers that are given to the county um to put on tax statements that go out in November. Um, this year, similarly to last year, the numbers that were put on the tax statements for proposed t taxes also had a little statement, if you go to the next slide, had a little statement that said, um, your school district scheduled to hold a referendum, so these numbers may not be correct essentially because if it is approved, these numbers are going to be higher. Um, so that statement went out after the numbers went to the county, but then we had a referendum and the statement went out just
055after the referendum. So they'll the new statement that will go out in March will have the actual tax numbers. So there's a little bit of this staggered movement as um the school district as well as taxpayers get the information that go into the lobby process. Um, and yeah, we can move on to the actual property tax bases or valuation types. We talk about this often um, here at the school district with referendum market value versus net tax capacity. Um, they're based on your property classifications. Um, we kind of generalize some of them. We um here at the school district we often talk about them as residential commercial um the agricultural property that would be the um house and one acre and then apartment buildings. So those would be the um properties that fall under referendum
056market value and those things generate funds um if we have an operating referendum like we do. Um and then there's al other taxes that go under that particular um classification. uh as far as the other valuation type net tax capacity that includes most all properties. So regardless of those classifications they um the way that the tax is figured out is it's there's a class rate that then you multiply the class rate by your taxable market value to get the net tax capacity. So how much of the pi that you are responsible for. So if we go to the next slide, this just kind of generate is just a generalization of some typical types of properties. And then using a $400,000 estimated market value, um it kind of just gives that idea of for a residential
057home, a $400,000 residential home, their taxable market value may have like we have a homestead credit. So that would be reducing the taxable market value and then multiplied by that tax class rate would give the amount of um net tax capacity. So that particular home would have the responsibility of 300 you know whatever 300 $3,894 of the large net tax capacity of a whole that would be their percentage. how to calculate their percentage of how much they owe on the levby pie, per se. Um, equally with the referendum market value, their whole $400,000 value would be um divided by the full referendum market value of the whole county to then figure out their percentage of the pi. Go to the next page. Um, so speaking of that same $400,000 home in Cook County, um, this
058is currently the breakdown of the taxes for the pay 26 for this current um, levy and it's at about $543. The top three components are based on net tax capacity. So those are the contributions to the pie that all tax um property taxes or all properties are taxed on. And the bottom two are referendum market value. They include the voter approved uh operating referendum as well as the categorical things like local optional equity, the different things that the board can approve. So throughout the rest of the slides, we'll be kind of looking at that $400,000 home. So this is how our taxes have kind of um shifted and gone. The cost of the home, they're kind of doing a um comparison trying to keep it like the same house. So the value changes a little
059bit. It's not a $400,000 house the whole entire time, but you can see that we had some retiring debt and going down. And then with the last two years, last year and this year, we have the approved referendums which increase our taxes. Um if we roll to the next slide, we see that compared, this is last year, so um pay 25 compared to our similarized districts as well as um our neighbors. So we are here on the far left, $492. That was last year for this $400,000 house. um comparatively to the state average which is one in from the um DUTH public schools were you know less than half of that as a as a whole. Um and you can see the same coloring. So the two blue so of a dark blue and a
060light blue those are all based on referendum market value and the top portions are net tax capacity. So you can see that Cook County, Elely, Rockidge and Duth all have operating referendums. So um they so that we can use those funds for the operations of the school. Um and then so some are voter approved like the dark green I believe are the voter approved items. The light green are non voter approved board approved items. So, it just kind of gives a look on the same $400,000 property across these um similar or neighbored counties, school districts. >> So, that is a 4 like that's a $400,000 property in Hermantown. Yeah. >> Right. It's okay. >> Yep. >> A year ago. Yeah. Last year >> sells for 700,000. >> Next center in Hermantown. It's actually Uh and
061then so then this is just another look at the um amounts. So the net so the net tax capacity amount and then the referendum market value. So the total tax levy, you know, has been kind of stagnant. And then you can see in the last two years we have our um voter approved referendums that um is increasing our total levy. Uh this pi just kind of looks at the data a little bit differently. It's just showing uh whether those funds are voter approved versus um board board uh approved. And so it's 84% voter approved primarily because of the referendum the two referendums that recently passed. Um and then if we were to compare uh year last year to this year you can just see the slight increase and that is due because the two the
062two columns on the left are referendum market value. So those um remain relatively flat and then the three on the um the three in the middle are net tax capacity. And so the increase there is largely due to the um the new referendum passing in November. And then here is just the detail of all of those numbers. Um you can note on the bottom it shows that the total property tax levy from last year to this year increased by 11%. Um that isn't the percent change to the levy is does not equate to a percent change to the budget revenue nor does it equal what every like you know what your individual taxes would increase and that's property value dictates that. It just changes the amount of the levy. So if my property value goes
063down, I and the our levy goes up, I still might have a slighter um increase to my property u tax obligation or p piece of the pie than somebody else. So it's not you can't you can't look at that number and just say it's equal among all. Um and now as we lay the levy, the current levy um proposal over the uh budget that we're working on, um the levy is almost 30% of our total revenues. And if we look at our budget for this year that we're currently working on, um we have a revenue uh to of all funds of 12,812,000 um and our expenses at 17 million. This was um approved in June and it was I you could go back to our um June meeting where we tal discussed through all the
064details of of the budget. Um we do have a deficit spend of about 211,000 and that's mostly um due to purchases of technology and buses. And then if we looked at the revenue sources based revenues based on source more than half of our revenue is generated from the state from our jet ed form gen ed formula. Um the levy is included in the local source on the on the bottom green portion. Um it's also includes other um thing delinquent taxes and tachinite revenues that are um that come through the county. Uh federal funds include title funds, special ed funds, lunch program, and impact aid as um Mr. Lindholm was discussing earlier. And then the other category is donations, athletic fees, lunch purchases, community ed, things like that. And then equally the breakdown on the expense
065side. Typically when there's not the activity of the bond referendum projects um we would see 60 to 70% total expenses salary and benefits. Uh because of that activity it's currently kind of staging at more 45 to 50%. Um but ultimately it's very if you looked at only half the graph it would be a very standard standard graph but with that activity we're going to see that over the next 2 three years as we build out our projects. Um so for the board it is the recommendation to certify the levy at 3 million778,86.19. Would you like to round up for uh the the fun the hockey fun? >> All right. Well, thank you. Any any questions or comments for the truth and taxation um presentation? I mean I assume that on this kind of you have
066that pig chart which has is being kind of blown up by the capital expenditures. >> Yep. >> We're kind of tracking that sort of it's all together here but that's kind of pulled out. >> Correct. >> So it doesn't as you're kind of running the the standard budget so that's not like overshadowing everything all the time. >> Correct. So if we go back just to that Yep. So fund six it that is where all of that activity will happen. And currently as you see here there's not as many re not as much revenue as there are expenses. And that's because we you know acknowledged all of the revenue last year when we sold the $24 million of bonds. So now that will be kind of that deficit spend continuously in that fund six. But yes
067it is it's not comingled. Um, as Michael Hart had said earlier, it's it's separated so that we can track it and you know >> Yeah. bottom line on this graph is funds one, three, and five. That's what you really got to dial in on as a board. >> The Yep. The state of Minnesota considers that our general fund, those three together >> is the um in the building construction fund, the revenue is set the interest. >> Correct. 420. Yeah. >> That's pretty good. Mhm. Okay. All right. Um, any other questions on this for for our business manager? And one one last the maybe you already answered this I was paying attention but the the deficit spending the 211,000 that's coming from fund balance correct or no >> um fund balance or assigned funds depending on
068you know how it shakes out but it's the reason for it is because of a bus purchase and technology purchases. So, they were assigned, right? >> Those are decisions we often make at the very end of the year when we're settling up. Do we pull it out of assigned? Do we pull it out of unassigned? Depending on how numbers flow in a year. >> How much is a bus these days? 100 grand. >> Actually, it went way up. Um, I think it was 160. >> It was about 30 grand more than it was a year ago. >> That's nuts. Um, yeah, it is nuts, >> but we're getting to a better place because for a while there was like buying six at a time or something crazy. So, getting better getting back to a more
069rot or two a year. Yeah. >> Right. So, it's not as big of a blow, but >> bulk pricing on buses. >> Well, and and a point of information, we actually just are buying a bus very cheap from Grant Portage. Um, it was not OP. It's newer. It's only got like 38,000 mi on it, but it needed some fixing and it has a lift on it. So, we needed a second I wanted to have a second bus with a lift in case one breaks down. We do we do use one every day. >> Did you repo it just today? Cuz they were over at Head Starting off this bus. I'm like, what the hell is going on? >> They were loading it up to to bring it down to Duth and then they're going to
070get it running again and then we'll have it back probably just in time to need it because we're going to we have a need coming in the next couple weeks. That solves a mystery of my day. It was just a ruckus over there. >> Blame Tom >> came out of the house and I'm like, what is going on over there? >> Yes, >> it is amazing how expensive they are when you consider they're not like >> trimmed out like with luxury camper. >> You know what I mean? It's it's a it's a box with a motor and you know there's a little more to it. >> Plastic seats that we have when we were kids. >> Oh, seat belts. But you know, >> our our fire chief, I'm not really distracting, our fire chief went
071to a extrication class about cutting open buses. >> Yeah. >> And there was a section on tour buses and there's a section on school buses. And the first section on tour buses was doesn't matter if a tour bus tips over and blows to pieces. There's nothing left. And the school bus was doesn't matter cuz it'll tip over and you can't cut it anyway. >> Yeah. >> Cuz they're just indestructible. So it's a different I think it's a different amount of expenses. >> That's fascination. Yeah. It's ar practically armored. >> Practically armored. >> Yeah, >> that's a true statement. >> Cool. Um, the motion is scripted in your um >> motions. Looks like Quinnse. I motion to certify the payable 2026 levy at $3,778,86.19. I'll second. >> Any further discussion? All those in favor? >> I
072I those opposed? >> Motion carries. >> I'll make a motion to adjurnn. >> So moved. We're adjourned. >> 619th. >> 619. >> Okay. But I also got whether I read it