April 13, 2026 Regular Board Meeting

001And we'll start with roll call, please. Director King? >> Here. Sorry, Ryan. Director Downlinger? Yeah. Director Edelman? Yeah. Randy Heideman? Here. Sarah's here. Here. John Ward? Here. All present. Please stand for the Pledge of Allegiance. >> [clears throat] >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> [laughter] >> This meeting of the Brainerd School Board is being conducted in accordance with Minnesota Statutes 13D.02. This meeting is being live streamed. Access to the recording is available on the school district's YouTube channel. I'll look for a motion to approve the agenda. I'll make it. Second. Uh we've got a motion by Director Edelman, a second by Director Heideman. Any discussion? If not, all

002those in favor signify by saying I. I. >> I. Opposed, the same. Motion carries. We've got a number of recognitions here tonight. Um if you guys are okay with it, I will just read through them. The Brainerd High School Windfall Choir has been named one of three national finalists in the high school chamber music division of the American Prize. Nearly 50 Brainerd choir students participated in the Section 8AA solo and ensemble contest in Bemidji High School, earning superior and excellent ratings across all performances. The acapella choir traveled to Orlando over spring break for performing at the Universal Amphitheater and participating in a Foley sound production clinic. Students created sound for a short film and gained unforgettable experience. The BHS choirs and concert crowd choirs both earned superior ratings at the Section 8AA large group contest.

003The BHS Symphonic Band concert band and Symphonia Orchestra all achieved a superior rating at the 8AA regional large group contest in Bemidji on April 8th. The BHS Wind Symphony submitted an outstanding recorded performance as part of their virtual 2026 MMEA Midwinter Convention. The link to the video will be supplied to the school board members via email. Brainerd High School teacher Dave Warsh, who's with us here tonight, was named the Brainerd Public Schools Teacher of the Year. Congratulations. >> [applause] >> And five amazing women were recently inducted into the Legendary Women of Brainerd Public Schools. The 2026 inductees were Ar Teresa Thiesing Gobel, 19th class of 1968, Sheryl Wentworth Matheson, class of 1981, Judy Bielke, class of 1986, Dr. Troy Bar, 2005, and Sheila Paradise, also 2005. All right, next up we have public input. A

004member of the public can address the board during this time. Comments will be limited to 3 minutes. Complaints or allegations against students or employees may not be discussed due to data privacy. Complaints or allegations must be submitted in writing to Superintendent Grant. The Board of Education and or Superintendent will not converse with guests to address the topics discussed at this time. First up, we have Doug Kern, please. Doug, sorry. >> [laughter] >> You're up. I paid attention, I guess. Thank you. Yeah, so today I I received the data request um that I asked for quite a while back. And only seen a couple of concerns on it. Uh one of the main concerns was a candidate that's running for school board was actually um uh going back and forth on the student walkout with the

005teacher. Um using public you know, facilities, public whatever um computers. Um that is a concern, but I haven't looked at all the information that was provided yet. And uh I still have concerns about that student walkout and who was actually behind it. Because I don't believe it was a student protest. It was student led. So, with that um thank you. Thank you. Next up, we have Tim Ettinger, please. >> [snorts] >> Dear members of the school board and Superintendent Grant. My name's Tim Ettinger. I live in Nisswa. Been a retired public school teacher with 35 years of experience. I'm here again because I care deeply about Brainerd Public Schools and the community it serves. At the March school board meeting, data was requested as to why teachers are leaving the profession. I have some data

006for you here tonight. I did an internet search. I chose the first four scientific studies displayed and one study from a staff development agency. I attempted to send it to you via your school emails and I failed repeatedly. My bad. So, I sent the email to somebody to print it out for you and Director Downlinger was kind enough to make sure everybody got a copy of that and there's a little disclaimer at the top. I didn't try to explain too much. I just provided lists as they appeared in the studies in the summary of the studies. My next task involves Superintendent Grant. Uh I believe you were quoted on March 25th in the paper stating, "I don't take the negotiations process personally. It's just a business decision." I can assure you that the employees of

007the school district definitely take the negotiations process personally for two huge reasons. First, they know that quality contracts attract and retain the best employees for their students, which the data truly bears out. Second, although working in public education is a vocation, no matter what your career choice is, it is also [snorts] the manner through which employees provide for the health and well-being of their families. For these two reasons, it's a highly personal endeavor for each of them. Finally, at the last school board meeting, I asked about the tardiness of the annual audit report, which is actually reflective of the previous year's fiscal year. It's traditionally been shared in January and I'm happy to see it's finally on the agenda for the April meeting tonight. This one time of the year that [clears throat] professionals from

008outside the school district report on the finances of the school district. I encourage the community to take note comparing this audit report to last year's audit report and to use your informed perspective to ask questions. Remember, the stated purpose of the per pupil funding a school district is provided by the legislature is that it is to be used to educate the students in that school district during that two-year period. Doesn't say anything about stockpiling or saving money in an unreserved balance for another day. Thank you. Thank you. Up next, we have Amy Gardipee, please. Welcome. Good evening, board members, community, and colleagues. My name is Amy Gardipee. I currently serve as special education teacher at Lowell Elementary. I'm a parent to a two amazing young ladies. I'm part of many groups in the area. I

009grew up a CI Ranger. I was very happy, but always wanted to be a warrior. I saw my cousins having opportunities I could only dream about in a smaller community. I look up to all of my family that have served and are still serving as teachers all over the state. My dream of becoming a warrior had to wait until I could be a teacher and even then was paused because at the time I was seeking employment. No one was leaving or wanted to leave Brainerd. Brainerd was the place to be. I wanted my own children to grow up warriors. I wanted them to have the opportunities, the reputation of being warrior. My husband and I had many chances and places we could have gone, but ultimately Brainerd Public Schools was the clear option. As a

010special education teacher in the district, I'm not so sure anymore. I go home with bruises, scratches, headaches, and heartaches. Many times I do have an explanation where these things come from, but I can't share them. My daughters are growing up thinking it's normal for their mom to get verbally and physically assaulted at school. They see it, they hear it, and it's become our norm. I do not get to share the details of my day-to-day with my husband cuz it will make him sad, angry, [clears throat] or feel helpless. This lifestyle is not for the faint of heart. Brainerd adopted the motto, "A place to belong." And to be truthful, I don't know if this is where I belong anymore. Seeing how our board functions is disheartening, hearing every month how our board members are pro-teachers,

011pro-learning, pro-our students, but never seeing them enter the building I teach in, makes these statements difficult to believe. I've had the pleasure of hosting only one board member in my room since I have started at the Brainerd district five years I have served here, even though I've invited all of you more than one occasion. The word transparency comes to mind. The word that people used to try and state that they are being open and honest. Transparency also means being hard to see and quite frankly, you've been hard to see in our buildings. I see many of you at my second job as well. Yes, person who has attended seven years of college has chosen to get a second job. I see how many of you act when you're not sitting in front of a camera.

012This carries over in the volunteer work my daughters do it and I do as well. We've experienced you walking past us with no acknowledgement or even noticing our existence. The groups I'm part of feel worked around, forgotten, flat-out rejected. I see the fatigue on my colleagues' faces. I cannot speak for all, but this is the mentality of many. Do more with less is the unspoken motto and expectation. Many of my colleagues in all positions are afraid to speak out to show up here because they can become targeted. >> [snorts] >> I may be a cog in the district machine, but I do matter. I matter just as much as every single worker in the district and we all deserve to be seen. Each of you have been elected by this community to do a big

013job. Please remember why you sit at this table, how you wanted to make an impact for people who voted you in, and how you wanted the Warrior Way to mean something great once more. Thank you, Amy. Next up, we have Alan Bosley, please. Welcome, Alan. Good evening. These are my 3 minutes. My father-in-law was part of the last graduating class at Washington High School. He trained, worked, and served in this community for years. His property taxes helped support the district, and every time he was asked to increase that support, he voted yes. He is ISD 181. My mother-in-law was among the first graduates at the current Brainerd High School. She also served this community for years, and like him, she always voted yes. She is ISD 181. My wife graduated from Brainerd High School in

0141995. She dedicated herself to academics, swimming and diving, and gymnastics. She gave countless hours, blood, sweat, and tears. She even suffered a broken nose during one diving meet. Key Club member, team captain, MVP. She's also a teacher at Lowell Elementary. After 13 years in the district, she recently learned, during a school board meeting, that her position would be cut. No warning, no discussion, no prior notification. She gives countless hours beyond her work day, works weekends, and is often emotionally and physically exhausted from the care that she gives to her students and their families. She is ISD 181. I graduated from BHS in 1995, NHS member, graduate with distinction. I was part of the first Brainerd Warrior State Baseball Championship team. I gave countless hours, blood, sweat, and tears. I even suffered a broken finger against

015the then undefeated Moorhead football team. Today, I serve as licensed school counselor at Brainerd High School. I support the immense needs of our students. Just last Friday, I had a request to meet with a student. I was the one to tell them that their last living parent had just passed away. This work is emotionally taxing. I've coached at all levels, I've been a PLC leader, a curriculum leader, and I've served on countless district committees. My wife and I live in the district, and every time we've been asked to increase our support, we vote yes. We are ISD 181. Our three daughters all graduated from Brainerd High School. They've dedicated countless hours to academic sports, clubs, activities, and the arts. They too gave blood, sweat, and tears. One broken femur playing for the Warrior um soccer

016team. Honor graduates, captains, graduate speaker, MVPs. They are ISD 181. The work of serving students and families every day is demanding. It takes a special kind of person to choose this profession. The certified staff, educational assistants, and the secretarial staff in this district are ISD 181. Yet, negotiation efforts for these groups have been minimal, if not entirely absent. ISD 181 will be here long after your terms have expired. We should not be the ones to carry the burden of unresolved contracts. I ask you come to the table, remove the barriers, set aside legal posturing, work together, and solve this. This is your responsibility to resolve so that ISD 181 can get back to doing what we do, serving students and families. These are my 3 minutes. Thank you. Next up, we have Dave Borish, please.

017Welcome. Thank you. Good evening. This past week, the Brainerd High School Knowledge Bowl team competed at the Minnesota Service Cooperatives 2026 Senior High State Knowledge Bowl competition at Cragun's Resort. Current data indicates there were a total of 800 teams representing roughly 290 school districts throughout Minnesota. This event consisted of the top 48 teams compiled from each of the 11 regions was then divided into three divisions based on school population. Brainerd was placed in the AAA division, which included schools from Duluth, Edina, Bemidji, Minnetonka, Northfield, Moorhead, Marshall, Elk River, Sartell, St. Stephen, and Chaska, just to name a few. This year, the Brainerd team advancing to the state tournament consisted of Emlyn Boson, Drea Didi, Tucker Hanson, Kyle Sandberg, and Thomas Verups. All of these students are current freshmen at BHS. Yeah, freshmen. This is significant

018because they competed against upperclassmen from all these other schools. As their coach, as we headed out there, I told the teams before the competition I wanted them to do three things for me. One, have fun. Have fun. It's a unique experience, they should enjoy every minute of it. Two, learn from this. They're given an opportunity to compete against the top minds in the state, and they're going to gain a new perspective that very few people get. And number three, don't come in last. Please don't come in last. >> [laughter] >> Again, in the AAA division, there were a total of 18 teams, and that's where we were. I just begged them not to come in last. Happy to report that they had fun bonding as a team. They learned from the experience, will take this

019knowledge with them into the competitions next year. And hey, guess what? They came in 17 out of 18 teams. >> [laughter] >> They weren't in last place. This year, Sourcewell Region 5, that's our region, sent four teams to the state competition, two from Aitkin, one from Brainerd, and one from Pine River-Backus. The Pine River-Backus team took fifth in the single A division, while the two teams from Aitkin took second and third in single A division. These are the teams that we competed against during the KB season. As a whole, I'm very proud to report and say that we represented Section 5 well. Thank you. Thank you. All right, that's it for public comment tonight. We'll move on to the approval of minutes, and I'll look for a motion to approve our March 16th minutes. I'll

020make a motion. Second. We've got a motion by Director Edman, a second by Director Ward. Any discussion? If not, all those in favor signify by saying I. I. I. Opposed the same. Motion carries. Next up, we have the consent calendar. It's a number of things on there. We'll look for a motion. Madam Chair. I'd like um to remove and discuss it a little bit further, the uh EA early retirement incentive. Uh I'm just looking for a clarification and information. Not opposed to anything, but I guess I don't understand it cuz it's never been discussed. And I'd also like to take off the food service early retirement incentive uh MOU and do the same thing, just ask questions and discuss again. I'm not opposed to any of it, I'm just I just there's some questions that

021I have. Would you like to discuss these individually or as a pair? >> [cough and clears throat] >> Well, they're two separate discussions, but I mean my questions are the same for both, but I don't know if there's any other directors that have any concerns or not. I mean, or they have questions, that's all. So, I don't see why we can't do it with just Okay. We will put that um as number seven under new business. All right, and we'll look for a motion to approve the consent calendar sans the the two MOUs. Make a motion. Okay. Got a motion by Director Heideman. I'll second. Second by Director Brekken. Any discussion? If not, all those in favor signify by saying I. I. I. Opposed the same. Motion carries. We'll move on to old business. Up

022for action tonight, we have the nomination and election of 20 26 officers. We'll look for nominations for chairperson. Madam Chair. Yes. Uh for chairperson, I nominate Sara Speer. I'll second. We have a nomination for chairperson for Sara Speer. Are there any further nominations? Any further nominations? If not, we've got one nominee, so we will um vote. I guess we don't need a roll call vote, if that's okay. All those in favor of electing Sara Speer as chairperson signify by saying I. Opposed the same. Motion carries. Look for a nomination of vice chair. I would like to nominate D.J. Donlinger for vice chair. All right, we've got a nomination for vice chair. Any further nominations? Any further nominations? If not, we'll take a vote. All those in favor signify by saying aye. Aye. Opposed the same.

023We've got a new vice chair. Congratulations, Director Donlinger. Ooh. And we will look for nominations for clerk. Thank you, Randy. I'll be the clerk. I'll nominate Randy. Uh Okay. Okay. We've got a nomination for Director Heideman. Any further nominations? Any further nominations? If not, all those in favor signify by saying aye. Aye. >> Aye. Opposed the same. Congratulations, Mr. Heideman. And we'll look for nominations for treasurer. Shell Bracken. We've got a nomination for Director Bracken. Any further nominations? All right, if not, all those in favor signify by saying aye. Aye. Aye. Opposed the same. Motion carries. We've got a new slate of officers. Congratulations and thanks, you guys. All right, we're on a roll. We will move on to new business. For actions, we have the approval of the 2024-25 annual audit report presented by

024Marcy Lord and Becca Nielsen. >> [clears throat] >> Welcome, Marcy. Thank you. Sorry, I was lacking over there. Um So, I'm going to introduce Becca. Uh actually, I'll let her introduce herself, but she's with CliftonLarsonAllen. Typically in the past, we have had Mary Reedy. She was not able to make it tonight, so we have Becca in her place. She's a manager at CLA. So, I'll let you take it away, Becca. Well, as Marcy said, I'm Becca Nielsen. I'm manager on CLA's audit team today here to go over the 2025 audit results. So, as auditors, our primary responsibility is to provide an opinion on the presentation of the financial statements and whether or not we believe them to be fairly presented and free from errors. So, we perform our audit on a risk-based approach, which is

025saying that we apply more more testing to areas we deem to be a higher risk such as revenues. So, this year, we performed our testing over internal controls to ensure that they were operating effectively. We selected a sample of disbursement and receipts to test and confirmed cash amounts with the bank and debt amounts with lenders. And then we also confirmed amounts that are passed through from the state. Um this year, we did not identify any unusual transactions. However, there was a new accounting standard that was implemented this year, so GASB 101 compensated absences. This is a new standard over your leave balances that we had to retroactively apply. So, as the change was uh material this year or for the beginning balances, we had to restate those in order to implement the change. So, this

026new standard was one that took quite a bit of time. So, thank you to Marcy and your team for the additional work. We know that took a little bit this year to get that implemented. Um and I just wanted to add that I sent it in the board memo, but um I shared the data. Typically, we had to calculate the vacation balances and it was about 100 and 27 balances. For this, we had to calculate 1,151 balances cuz it included PTO and sick. Um I know that this is late. The audit is late. We all know that. There's We've had staffing turnover and then this new implementation was quite time-consuming cuz we have to take the balances times the pay rate, add an accounting code. Uh and as Rebecca said, we had to do it

027um retroactive. So, 1,151 was for this year and 1,303 was for last year. So, it The ESS ESS T? No, it's because our financial statements are comparative. If we didn't compare to the prior year, then it wouldn't have been retroactive, but since we do that and Becca, you can tell correct me if I'm wrong, but What is it? GASB? Government Accounting Standards Board. The standards we have to we have to live by, basically. >> but how did you go from 125 to 1,500? Cuz they implemented this new standard. So, >> So, if I leave for an hour, you used to be able to handle that different than now. Is that what it is? >> We didn't have to include those balances. Right. We only had to include vacation. Now, we have to include PTO, sick,

028also Yep. Thanks, State of Minnesota. And that's And then And then that's the main reason, Marcy, why there was the delay. Is that kind of the one of the biggest reasons? >> a part of it, but also staff turnover. We've struggled with that in our office. So, it was a combination. Sorry. Didn't mean to steal your thunder. >> Nope. No, you are just fine. So, moving on to the next slide. So, as auditors, we review management judgments and accounting estimates made to determine that they were reasonable. And then we determined that all amounts and disclosures were adequate, clear, and complete complete for this year. Then we also review information in the required supplementary information section and the supplementary information of the financial statements. So, that's in the back of your big bound documents. Um just

029to ensure that those amounts tie back to the basic financial statements. However, we do not issue an opinion on the required supplementary information. We had no disagreements with management this year. And then we did add some additional risks this year based on items we identified during our testing. So, we added a risk over the bank reconciliations and inventory balances, which I will discuss here in more detail in a bit. So, we did not consult with other accountants this year. No major issues were discussed with management. Um personnel and records were available during field work this year. However, there was some delay in receiving the final information like Marcy had mentioned. Um we didn't receive our final trial balance until December this year and then the final revised version of the GASB 101 spreadsheet um was

030not received until the beginning of March. So, with that, we weren't able to issue the final financial statements until all that was received. Um and then again, as Marcy mentioned, we do know that there was some turnover and then again, GASB 101 was a bigger standard to implement for this year. And then also this year, we identified a few uncorrected adjustments that were immaterial to the financial statements overall, but they were items that we did identify. Um there were a couple inventory adjustments. Um food service unearned revenue and accounts receivable balances. And then um we subscription-based information technology arrangements were not recorded. And then an understatement of claims payable occurred. And then um they passed on recording deferred inflows related to receivables. And then the final accounts receivable listings did not tie to the final

031general ledger. Again, all these were immaterial and were not adjusted since they were immaterial, but they were items that we did identify. Is that what you're calling inventory? One of them, yes. Yes. One of them's inventory. >> Yep. Are you still going to tell us what inventory is later or I just like to know. Yep. What What is it? Yep, I believe it's the next slide. Okay. And there's a new system for that, too, is there? We're trying to find one. Alyssa says, yep. Yep. So, this year, we did issue an unmodified or clean opinion on the financial statements. So, that is the highest level of assurance that we can give. We identified one item as a material weakness this year and that was for the preparation of financial statements. So, CLA prepares your audited

032bound document. Um so, this item is reoccurring and it's very common for school districts in Minnesota. And then we also identified two significant deficiencies this year or no, three significant deficiencies this year, which are items that we deem to be less severe than material weaknesses, but items that we did want to bring to your attention. So, this year um bank reconciliations were not performed timely. So, I believe the June bank reconciliation was not completed until December. And then the inventory listing at year end was not accurate. So, there were items that were identified at our year end count that did not make it onto the district's inventory listing. And then there were items that were found on listing during our count that or there are items that were found on the listing that should not

033have been at year end. So, both sides. And then also this year was um some TRA and PERA reporting issues. So, every year we select a sample of reports that are submitted to PERA and TRA, and we tie them back to payroll journals. And this year, we found that there were several errors and adjustments that needed to be made and were made They were made by the district after the fact. Um however, we find that it was very concerning that it was almost every single payroll period that we tested that errors were identified. So, and I believe Marcy has already brought this up to the new payroll manager, and they believe they found some ideas on how to resolve those issues going forward. And that one isn't in the financial statements. It was a verbal

034uh comment the TRA and PERA. You won't see anything in the financial statements for that one. Um we didn't identify any compliance-related findings this year. And then, as part of our audit, we tested um two major federal programs for our single audit testing, and that was over the Title I and child nutrition programs, and then no issues were identified over the testing of these programs this year. And then finally, we also go through the state of Minnesota's um legal compliance questionnaires that are released by the state of um the state auditor's office, and no items were identified going through these questionnaires. And then, to go back to your inventory question, just to explain that. >> don't know what the inventory is. >> So, the um Alyssa staff does an inventory count, and it's around It's

035multiple days, right? There's a lot in the warehouse. And we also have programs running, so they may count an item, and then it gets used maybe at summer school or one of their programs. And then, if she's ordering as well after they've done their count, that's part of the problem. So, she's looking at trying to get um some sort of software that would track this rather than a manual count. >> [clears throat] >> So, if they come in If the auditors come and do their physical count June 30th, and we did it June 15th, we've probably used some items, and we've probably ordered some items that weren't a part of that original. What's an item? Book? Uh no, food A lot of it's food service. Yep. I shouldn't say a lot of it. The whole

036thing's food service. So. >> Oh, that's going to be tough to inventory food. Correct. >> [clears throat] >> I was trying to figure out what inventory we were talking about, so. I should relieve the inventory, but Yeah. I get you. Yeah. I'm an inventory guy. Okay. Then, moving on to our financial results. So, this slide is showing the general fund. So, in the current Or for fiscal year 25, um expenditures received exceeded revenues by about >> [clears throat] >> $596,000. Um revenues decreased from the prior year by about $1.4 million. Um federal dollars decreased by about $3 million due to the district spending down the last of the COVID-related um funding. And then, in addition, state aid did increase this year by approximately $2 million, and most of that was due to an increase in

037special education aid. Um your general ed aid did decrease from the prior year due to decrease in your student counts. And then, there were a few new additional funding resources received this year, your literacy aid and your READ Act teachers comp aid. Um your expenses increased by about $2.1 million from the prior year. So, your special ed expenses increased by about $892,000, um primarily due to your staffing and cost of living adjustments made during fiscal year 2025. Then, your sites and buildings expenses also increased, primarily due to an increase in repairs and maintenance expenses. And then, there was also an additional $300,000 in capital outlay expenses for 2025. And then, you'll see a Oh, yep, go ahead. >> just going to add um Director Ward had asked a question about, you know, the fund balances,

038and I just want to point out uh the amount of or the chunk that says fund balance, I primarily pre- present or focus on unassigned because that's the least restricted, right? So, the restricted fund balance went up $721,000, but those are categories that we have restrictions on. So, even though it looks like we ended the year better, we did, but um it's not all in unassigned. I just want to point that out. And then, on the actual to budget, uh the differences between budget revenues, I try to stay within 2% of the budget and expenses 3%, and it was 1.3% on revenues and 2.4% on expenses. So, it it seems like a a large difference because it's millions, right? But in the grand scheme of the whole budget, it's a very small percentage. And Marcy,

039thank you for getting back to me on those questions, but the other thing is that as you go through the budget throughout the year, you um budget conservatively um to make Right? I mean, yes. For sure, because I'd rather be sitting up here in front of you guys saying we ended the year better than we ended the year worse. Like, that is not news I would want to deliver. So, the unassigned fund balance is a fluid um figure continually. Correct? Correct. And it has I mean, since I've been here, it has ended the year better than projected. And we and we are at um Don't we have a 10% fund balance policy? Yep. fund fund balance policy? Correct. And right now, we're at Uh she's She's going to get to that. It's 14. Oh, it's

04014. Okay. Yep. And what do you attribute the end of I mean, what What How How do we end up better with the unassigned fund balance? So, some of the One of the examples Becca gave was special ed aid that came in larger than projected. Interest earnings. Okay. We put our best guess at that. Um if the markets do better, that's great. So, it's a number um this last year, 24-25, we moved our summer program our summer school to from June to July, so we have a budget there, but we didn't run those programs. So, we were under budget, but we're going to have that then this year. Marcy, this unassigned fund balance, is there a state law regarding that? Nope, it is our policy. So, a Brainerd Public Schools policy. Okay. State recommends 30%.

04125 25%. 25. Okay. Okay. Our policy is 10. And we're at 14. We're at 14. Yep. And that gives us how many If the state gave us no money for a month and a half and said, Yep. Yeah. Sorry. Yep. We got no dough. How long could we stay open for? Month and a half. With our fund balance. So, we'd go through 14 14.1 million a month and a half. Interesting. A little more to it. Depends what month it is. Yeah. Well, if it's summer, we'd It's a little easier. Um what's Here's what's concerning is what's Here's Here's what jumps off the page at me is that our expenses in '21 were 85.5, our expenses now are almost 96 million. Um but yet, our ADMs have gone down. So, that's [clears throat] pretty concerning. When

042you start taking the ADMs into the deal, we're down at least 100, maybe 250 in that amount of time, 300. So, got to right the ship. You know what I mean? It's like Oh, Marcy, to to DJ's point, isn't some of that increase due to prices raising on everything that we have? Yes. Uh and Paula was 14,000 last year, and now this year, it's 17,000. Correct. Correct? I mean, part of it is Yep. Okay. Both expenses, John. Yep. I understand that. It's gas, heat, lights. Yep. But you know, 81% of our expense here is people. Yep. That's our biggest expense. Health insurance. I mean, there's lots of things that go in there, but with our with our tenants down, we got to we got to be pretty prudent. Yep. I That's why we're having all

043the troubles that we're having is still right here. >> of the reasons, yep. Marcy, also um I think there's a proposal to cut back special education aid at the state level. Do you Do you When you guys do the audit, do you Is that figured anywhere in the future? No, so >> Okay, so that doesn't include any kind of nicks that we might get or like the 95 um special ed pro- uh federal promise that has never been made that doesn't ever come in. Yeah, okay. That's the actual statement. We're good to go for this year. Yeah. Is it 250, John? I sent you the article. Or is it 5,000, I think. Is it 450? What? Is it 250 million or 450 million? How much was it? I sent you that article on it. It

044It's projecting the projecting the cut Projecting the cut. >> 250. 250. So, there's what, 330 school districts? 333. So, we're one of the bigger ones. So, it could be a million and a half to us. It'd be a lot. Yeah, that'd be huge. Yep. Doesn't end. >> [clears throat] >> I'll turn it back over to you, Becca. Okay. Well, I think Marcy went over most of the rest of the general fund. So, I'll move on to the next slide. Um so, you can see here, the slide is showing your breakout of your unassigned fund balance [laughter] per ADM. >> [cough] >> So, at the [clears throat] end of 2025, it did decrease slightly from about um 2,495 at the end of 2024-25 from about 2,558 at the end of 23-24. So, a bit of a

045decrease there in your unassigned fund balance. And as Marcy said, that is your main bucket that you guys can choose however you want to spend your dollars on. And then this next slide is showing the general fund unassigned fund balance as a percentage of expenditures. So, at the end of 20 fiscal year 25, the district sitting at 14.7%. So, that's a decrease from the prior year which was sitting at about 15.95%. Then if you look back, um, it is still increased over the 5 years ago which was sitting at 12.6% in 2021. And if we take into account the preliminary budget projection of the 2.2 million dollar deficit, we'd be at 11.9%. Just a FYI. And the reason that the last year was so good is we got that big [clears throat] shot in the

046arm at the end of the COVID money. If you look at it's like our we got we got we took in more last year than we did this year. If [clears throat] you look >> years ago than we did last year. Just the last I mean 21-22, 22-23, I would attribute all of that is because of cares money. All that income we got. We were able to recode expenses and get creative. If we didn't have that, I don't think we'd be looking at the same chart. Okay. Moving on to the food service fund. So, current year expenditures did exceed revenues by about $35,000, um, causing your fund balance to decrease in your food service fund. So, revenues decreased in, um, the current year by about $18,000. So, there was a decrease in your state money

047coming in with your decrease in your student meal counts. And then expenditures did decrease by about $66,000 from the prior year due to a decrease in enrollment again in your student meals. And overall, revenues were under budget and expenditures were under budget. Or, yes. Yes. Revenues were over budget and expenditures were under budget. Do you want to add anything else, Marcy, in addition? Or Can you see my flag? Um, I did just want to note that we were under budget in, uh, expenditures because we did see a big increase where we were actually over budget in 23-24 because of food expenses. So, we increased our budget and we didn't see that big of an increase with food, which was good. But, we were anticipating a larger expense. Is the is the reason that it went

048from three I mean I know where the Ms. Thompson does a good job at this cuz Peter made me sit down and talk to her. >> [laughter] >> Did we go from 3.2 million to 4.9 million because of the free lunch for everybody? That's a good question. If you look at 21, we're at 3.2. Next year, we're at 4.2, call it. I mean, I'm off a couple thousand. Yeah. >> Right? Well, that's pretty substantial. It's a 35% increase. So, is that because of free lunch for everybody? Is that what did it? Honestly, I think it was because of pricing with COVID. Food >> Remember we had the farm to table, we had grants for that stuff. Is that like something we kind of got ourselves into and now we can't get out of it? Cuz

049we're still up there. I I don't think it was necessarily farm to table because a lot of that we get reimbursement on, but I think just overall food costs jumped when it COVID happened. 50%. Yeah. I don't remember when free free breakfast lunch came into play, but I don't think it was in 21-22 or 20 or Right. >> 24 it was? Is that the first year? Okay, that's what I that's what it's That passed in 23-24 was the first when they first implemented it. Cuz the 24 is the 23-24 school year, right? Correct. But that jumped it again. But not quite as bad. >> Yeah. Yeah. >> [clears throat] >> All right, I think we're good, Becca. Okay. Then your community service fund. Um, so current year revenues exceeded expenditures by about $80,000. So, revenues

050decreased from the prior year by about I think $17,000. So, your program enrollment decreased, but there was some additional state funding received this year. And then your expenses increased by about $188,000 from the prior year. Um, so most of this was just due to cost of living adjustment and benefit increases primarily. And then both your revenues and expenses were over budget at the end of the year. However, there was you're still seeing a net profit versus your budgeted was a deficit. Anything you wanted to add, Marcy? No, I'm good. Thank you. With the fluctuation in that community service sector for the last 5 years, it's up and down, up and down, up and down. And it's significantly either up or or down. Is there a reason for that? You mean the bottom line or just

051this? Revenues and expenditures cuz the revenues just keep going up. Well, they went down last year, I guess. It all depends on programming, right? What programs are we having and what programs are we not? Mhm. Can we get, um, you know, people to do those programs or not? Okay. You're right, they're both up a over a million bucks. Yeah. 4 years. Yeah, it's weird to me. It just keeps on trucking. I think we're good. Okay. So, this slide is showing both your debt service fund and your capital projects. So, your revenues in your debt service fund increased by about 1.1 million dollars, >> [clears throat] >> um, from the prior year. So, this was all going to be your increase in property taxes going into this fund. And then your expenses did, um, increase slightly

052and then this just follows your scheduled, um, debt payments and your interest payments on those bonds. Um, overall, your fund balance increased by about $825,000 at the end of the year. And then your capital projects fund. So, your, um, revenues decreased by about $83,000. Less cash and investments were held in this fund, and so less interest was earned on those investments causing that decrease in revenues. And then your expenses decreased by about $759,000 from the prior year as those, um, projects have been winding down. Marcy. >> [clears throat] >> Yep. The debt service that we have or the the debt that we have, if the service providers called us up tomorrow and said, "Yeah, it's all over. We're not going to we're not going to, uh, deal with your debt anymore. What would we owe?

053Just out of curiosity, what how how how much debt are we in today? I don't have my Just out of curiosity. I mean, maybe I don't want to know, but I mean it's just you don't have to don't That's fine. You can just get that to me. Right in our financials. The high 200s. Okay. >> [clears throat] >> All your bonds are about 230? Yeah. So, GO bonds would be And then we have leases and certificates of participation. So, call it 200. Just For that ISD blue 181. Mhm? So, the blue 181. Yeah. Yeah. We don't want that call. Good luck. >> [laughter] >> Excuse me. >> Bless you. Thank you. Yeah. Go ahead, Becca. Okay. So, this slide is just showing a chart of your revenues in receipt for fiscal year 25 broken out

054by different types of sources. So, you'll see your federal, your taxes, your other miscellaneous items, and then your state. So, um, overall from the prior year, this chart has stayed very similar sitting at about 68% of your revenues coming in from the state. The right's no A quick question. Is the other local the, uh, referendum? No, it'd be like lunch charges, um, athletic fees, uh, yep. >> That's nice to know. So, the referendum's in the 21% of the state. Oh, it's in the state or is it in the >> Sorry. No, you're in taxes. You're right. Taxes. 21% of our stuff comes out of the local area. I mean, the state is a local area as well, but Yep. it's not quite so hand in hand as the Yeah, I'd combine the two. I'd say

05527% cuz it's all our people. Does the federal, um, resources, uh, include the, uh, special ed reimbursement costs? Uh, so all our federal money goes through the co-op. So, we don't This does not have sped special ed federal money. Oh. Okay. This is um food service, title cares Well, what was left of So, this slide is just more detail over the past 5 years of similar data to that um previous slide. So, as you can see here, your federal dollars did spike with that COVID funding, and now you'll see those revenue sources are um dropping off, and you will see that again decrease next year with the last of the cares dollars being spent. Um your taxes increased slightly just following your levy changes. And then your state did increase slightly just with again, like

056I mentioned, those new funding sources received this year. And then um an increase in your special ed aid. I'm assuming Marcy between June uh of '23 and '24 with the state going with uh >> [clears throat] >> getting in about an extra 9 million dollars, I am assuming that was when they had the big increase in state Correct. revenues. Correct. And then also record spending as well. Okay. Okay. And then this is a breakdown of your expenditures by program for the end of June 30th, 2025. Um you can see almost every category here broken out. Your instructional services are by far the largest, which is typically what we should see at district at about 53%. Again, very consistent year over year. I didn't see any big changes when I looked back at um fiscal year

057'24's data to 2025 with the breakout of expenses. Can you give me an example of what's under instructional? Uh class you know, teachers, paras. Okay. Anything in the classroom. Okay. Classroom stuff. Okay. Thank you. Okay. Um and then again, this is that same type of data broken out in more detail over the past 5 years. So, your regular instruction, your special education um and your people support services are typically dri- driven by changes in your salaries and benefits. Um so, you'll you can see that those all increased slightly this year. Um sites and buildings expenses are where your capital projects are going. So, that's why you'll see a huge increase over the past 5 years. I I have a crazy a weird question. Why does our debt service keep going up? Oh, I suppose cuz

058we hadn't spent all the money yet. That's what it is, isn't it? Yep. So, 3 years ago we still we hadn't spent it all, so this is about as high as it's going to get then, I would guess. It fluctuates. So, it Rate does? The principal and interest payments do. So, it might go up next year, it might be lower. >> never seen that. I can show you the numbers. Yep. Yeah, we had that conversation. It's not like a regular mortgage. Yes. I don't know why it does it, but Is it fixed for a year though? So, is that those payments or those Right. Like we have a debt schedule, and it it it's set for those years. >> year. Okay. And the rate is set. The rate's fixed. >> Okay. But so weird that

059they change the payment changes. Oh, the payment can change. Payment does change. >> Okay. Cuz years ago really high, and then there's ones that's just come back down and Yes. Okay. Okay. And then this slide is another look at um your expenditures. So, just showing um a breakout of by your object codes. So, your salaries, you can see your benefits um where those different expenses are going within the district. So, again um between your salaries and benefits, that makes up about 67% of your expenditures. So, very consistent year over year. I believe it was 67% again in fiscal year '24. >> [clears throat] >> Looking over the past uh 5 years, you'll see that your salaries and benefits have been increasing um just you know, your cost of living adjustments. Your capital expenditures decreased as

060the building projects have been um winding down and being completed. And then your principal and interest payments um like Marcy just mentioned, they follow your set um bond payment schedules. So, we tie those out every year. Um so, those are consistent with your schedules. Okay. So, teachers doesn't fit instruction doesn't go in salaries then. Say that again? Well, if you look at this chart and then look at this chart and they don't match. Uh it's yeah, it's part of our account code structure. So, like you can group salaries, and they can be a part of instructional, they can be a part of admin. But when you're talking salaries, it's all everything. Well, the salaries is way less than instructional. Yep. And you got district support to add to that, then you got admin. Cuz in

061And then you add instructional's going to have salaries, benefits, all the things. Oh, I see. Benefits are in there. Yep. That explains it. Can't stump Marcy. There's ADMs. Okay. Go ahead. This slide is showing the ADMs over the past 5 years. Um so, we broke out your kindergarten, your elementary, and your secondary um ADMs. You can see your enrollment numbers have been steadily declining over the past 5 years. Um total decrease from fiscal year '24 to '25 was 172 students, and over the past 5 years it was a drop in 494 ADMs. Okay. And then this slide is just showing a breakout of the resident students versus non-resident students enrolled within the district. So, you know, your non-resident students are people with outside outside of the district opting in. And then your local resident students.

062>> [cough and clears throat] >> And then this slide here we like to look at and calculate what we call an open enrollment um gain or loss within the district. So, we take a look at the resident students opting out of the district versus the non-resident students opting in. So, you can see over the past 5 years [clears throat] it's been a >> [cough] >> open enrollment loss. So, fiscal year '25, there were 345 non-resident students opting in versus [clears throat] 1,040 opting out causing an overall loss of of 695 students. >> [clears throat] >> Okay. So, this slide is looking at your administration and district support costs per ADM. >> [clears throat] >> And then we compare it to your state average and other similar districts of your size. Um they didn't have the

0632024-25 data available when we had put together this presentation. Um similar to last year, it's typically not available when we do our presentation, but you can see past 4 years um your administration and your district support costs have been below the average. I expect that to be very similar again for 2024-25. And then this slide is looking at your in total instruction per ADM. So, again, this is going to include your vocational instruction, your special education, and then your instructional support services within those um costs per ADM. So, again comparing to your state averages and similar districts, this one is actually higher than average. And has been for most of the past 5 years. Does that include online, too? >> [cough] [clears throat] >> Okay. And then this slide is just summarizing your self-insurance fund

064over the past 5 years. So, your darker color is going to be your expenses, the lighter blue is your revenues, and then the greenish yellow is going to be your net position sitting in that fund at the end of the year. Um so, overall, your net position did decrease by about 1.5 million dollars. Total claims went up by about 3.2 million, and your charges for service charges for services increased by about 696,000 dollars. And I'm just going to add on that one. That was we didn't um increase our premiums as high. We said we could use some fund [clears throat] balance for that. This was a planned spend down. And we still, even with that planned spend down, are at over a 50% fund balance. But that's a But that fund balance you're talking about

065just with the self-insured. You got it. >> talking about the unassigned. I wish I was. Yeah. Yeah. >> [cough] [clears throat] >> Okay. Um and then this slide here, again, your self-insurance fund. This is just showing um your net position as a trend line um over the past 5 years. So, at the end of the year, your net position is sitting at $9.5 million. And then your revenues can fluctuate year to year depending upon the claims, same with your expenses. And that's what all I had. Does anybody have any questions for me? And the actual financial statements are also linked in the agenda if you want something to read when you're going to bed tonight. It's going to put you to sleep. Yeah. >> [cough] [clears throat] >> Thank you, Becca. Thank you. I thank

066you all very much. Thank you. Marcia, [clears throat] I do have a Like Yeah, thought. Yeah. Question. Um since um Peter had the uh lady do that enrollment report for us, uh how long did that look out for? 10 years. >> 10 years. I think um have we ever done a a 5-year budget projection with uh enrollments? Um Where we actually sat down and looked at here is what our best numbers are and looked and really looked at it in depth? So So, our projection model for enrollment does go out to 5 years, but we haven't actually sat down and calculated the budgets for that. >> Okay. But we do have the enrollment model for um ADMs does go out multiple years. >> think that's something this board should consider doing uh to maybe make

067it easier for future boards to look at things. I mean in some respects, we don't you know, we we go from kind of year to year, it seems like. Yes. And it would be kind of nice to sit down and do a a budget projection with projected enrollments just to see where we're at, what can we do, what can't we do, what do we need to change, what do we need to correct. Um I really think that's something we should really strongly look at doing as a board. It's a good idea. And uh that might be something that uh superintendent elect uh Frank and Tobby might want to get involved with as well and and really sit down and and look at some numbers and so we can kind of Yep. not surprised. I guess

068nobody likes to be surprised. So. Sounds good. One thing we got to remember about that um you know, what Hazel did. She's the same person that did one 10 years ago for the referendum and she said everything was going to go up 7 or 8%. So, it's a little by gosh, by golly, you know, it's kind of crystal ball-y a little bit. I know, but that's why we have the interim you know, we you know, we you know, we can look at interim goals and things like that. Right now, when we're looking at an interim goal, we might only be looking at 6 months because we only really look at stuff year to year. Um so Yep. budgets always change. I mean But that new forecast, I mean Hazel's 20 pre-2018 Mhm. was had no

069idea that COVID was going to occur. It's true, yeah, but we also took before 2018 didn't weren't down a thousand and 40 students. So, that could get corrected, too. In 3 or 4 years, you never know. We were only down 300. Yeah, huge difference. But so, it's like there's opportunities out there. Have to be in total panic. Yep. I just think it's something we need to put on our radar and really take a a look at it. So, we're not surprised. We'll still be surprised because, you know, the legislature will come in and Yeah. Yeah. You don't know what they're going to do. Yeah, but at least at least we can maybe prepare. [laughter] No. Prepare a little bit. Yeah, those people down there are so Well, I'm not going to go there. All right.

070If there aren't any other questions, we'll look for a motion to approve the 2024-2025 annual audit. >> Motion. Second. We've got a motion by Director Donalinger, a second by Director Heideman. >> [clears throat] >> Any further discussion? If not, all those in favor signify by saying I. I. I. I. Opposed Motion carries. Thanks, Marcia. Thanks, Marcia. >> Thank you. Thank you. >> [clears throat] >> We'll move on to the 2027-2028 and 2028-2029 school year calendars as presented. >> [snorts] >> And I Director Lundgren, welcome. All right. So, the proposed calendars, um they were shared last week at the work session and uh linked in your packet and to the agenda. Um just a couple of of items to note um that are shifts from our current uh 2-year calendar schedule. Uh one is the removal

071of the two half days at the end of each semester. So, semester one and semester two would move back to a full uh student contact day. The second item to note is um the spring break being reduced to a full week to two two days, so a shorter spring break. And then the third item to note is that on both calendars, the last student day would be the Friday before Memorial Day weekend. So, those are the three big shifts, I guess, in this in this calendar proposal. Make a motion. All right. Got a motion by Director Donalinger. Is there a second? I'll second. Second by Director Edelman. Any further discussion? Madam Chair. Go ahead, Jerry. I have a lot of questions. Hello. Um >> [clears throat] >> I ask this annually. Um has all the

072units weighed in on the calendar? So, the um the calendar committee is made up of principals, an EA rep, a teacher rep, um athletic rep, and then a couple of district reps. And so, there's representation on the on the committee as far as >> Say those again, please. >> Yep. So, principals, EA, teacher, athletics, and district reps. >> They're all on the calendar committee? Mhm. There's representation. Okay. And then they've all they've all weighed in on it as well. And you did a You did a survey, too. Correct. That went to [clears throat] staff and families. Yep. I see that. And um the survey came out with this is the calendar that everybody kind of prefers. Okay. That's all I was going to say is the survey. This calendar is reflective of the results of

073the survey. So, it's kind of a major change to go from a full week spring break Yeah. to only 2 days. So, that was we we listened to the stakeholders, basically, >> [clears throat] >> of this Is the advantage of that to get out earlier? One. Uh two is um just increasing student contact days um earlier in the year as we're looking towards the end of the year. >> Yeah. Um and then just a recognition of the feedback from families regarding breaks over the course of the year. All right. We've got a motion on the table from Director Donalinger, a second from Director Edelman. Any further discussion? If not, all those in favor signify by saying I. I. I. Opposed the same. Motion carries. Thank you. We will move on to Thank you. Policy 602,

074Organization of School Calendar and School Day. There was a couple things on here. Welcome, Terry. Thank you. Madam Chair, members of the board, Superintendent Grant, uh we are uh bringing back policy two or 602, excuse me, to you this evening. Um we've had some previous discussions about specific language and clarity that is needed. I'll draw your attention to the top of page two. We've added some clarity about e-learning days specifically um in differentiating between elementary and secondary students. Um you'll also notice that the inclement weather designation has been um stricken. Um but that is also up to your purview to decide if you would like that to stay in or stay out. The timing of this is so that we can offer teachers some time during back-to-school workshop uh for planning if we are going

075to have e-learning days next year. Um help me understand why we would or would not have inclement weather as a board of directors' discretion. It's just a board preference. Um it doesn't have to be because of inclement weather. It's nice to have that option. Um for the last couple of years, we've had to add um days at the end of the school year for staff um because of snow days. Um and so, if there were uh an opportunity to not make those days up at the end of the year um and go to an e-learning or an alternative learning day for elementary students. It would be more consistent with our published school calendar. Um and it gives us then some some some expectations about when learning would happen. Christina just spoke to having um more

076learning days earlier in the year than at the end of the year. Um and now we are kind of um this year as an example um I hope spring is here. But if spring isn't here um Peter's laughing at me. Um uh if spring has not yet arrived and there was some situation where it wasn't safe to hold school um we would have to have a very specific conversation about what that means in terms of meeting the requirements of the contractual agreements for our groups of educators but also making sure that students get access to learning um as they need to. >> [clears throat] >> I'm sure. Yep. Um I cannot remember when it was but this board I believe voted almost I think it was six old vote to get rid of e-learning days.

077Um We're changing our calendar. We're going down to two days for spring break. Correct? Yeah, not next year the following year. Yep. Correct. The way this is written and I'm going to I feel this is I'd like to see it go back to committee again one more time. I'd like to have language clarified. Uh right now I I understand the thought is okay, it allows for flexibility. Well, then let's put that in there. Let's have language in here that says that there is flexibility. That you know, it it just seems to me like this is just a gut feeling that I have. We're going to we're going to use e-learning days. That's what we're going to do. So Director Hybin, can you provide me some more um context for that? Are you asking for specific

078examples >> No, I I just my gut is my gut's telling me that if we have a snow day, we're going to have an e-learning day. We're not going to have a snow day. That's that that's my gut because >> Yeah. we're giving we're giving flexibility and we kind of took away that flexibility with an almost a six old vote regarding e-learning. Now we want to bring it back in. Let me ask a couple of other questions. Do we have a plan currently? We do not have a district-wide plan currently. So what did we do this year when we had two e-learning days? We we made that up with the support of the high school staff uh to be able to create that environment in that unexpected um consequence. Yeah. Right. The high school water

079park. Yeah. Um it was >> So we don't have a plan now. We do not have a We do not have a systemic plan right now. Did the high school teachers rise to the occasion and make it the best possible outcome for kids? Yes. But it would be nice to have some offer them some time for planning and thoughtful um intention around um what learning might happen. Um I'll go back to your previous statement and you could add back in except for inclement weather if you chose to. Right now it's stricken but that is something that you could direct us to do. It's Potentially stricken. Thank you. How did it come up? How did we vote on it the last time? Whose idea was it? Was it ours as the board or did you guys

080want to get rid of it? Because it hasn't worked anywhere. It's like you can't pick up anything to read that says there was anything good about it except for kids that want to go online that have that mentality and that's what they're going to do. Um I haven't found anything positive that's got anything great to say about what happened during COVID with all the online learning. All the parents, the grandparents are trying to make the kids do their homework. I mean we've been through this before. So we already voted this down. I think it's been for sure within the last 12 months if not last summer. So why are we What's the deal? Why does this keep coming back up? Because it's it because I don't have I have zero interest in this and I

081don't think that there's many parents that have interest in it and we have tough enough time around here keeping kids interested in going to school here and I think we should try to you know, let's just try to keep towing the line like we've been doing. The flexibility is not about um we get hung up on e-learning day. If we cancel school because of snow question's going to be are you going to make it up or not? Well, you have made them up for the last 100 years. So what difference is that? But when you run out of calendar days so our last option was April 16th. We lucked out that the other schools had to go either a late start or cancel because of that snow and we didn't because we didn't have students

082that day. Knowing Minnesota you can have two feet of snow at the beginning of May drop out of nowhere. Nobody wants to go to school at the end of the school year. You don't want to end it in June. So the point I mean you don't want to add it in June. Originally the re if you if you're watching weather reports in the morning, I'm dumb enough to do that. >> [laughter] >> And this is weather event they all identify the e-day. Therefore [clears throat] school is not canceled. Therefore you're not adding days to the end of the year. But we already know Peter that they don't there's no value to it. So you might as well just not go. Well, but there's a there's a value to it as far as meeting the needs

083of the contract. How about meeting the >> they're honest. How about it's true. I mean you get in we get in arguments about is this I'll tell you how crazy it gets. If I can't remember what one of the first days I canceled school. It was not really good It was not good for people to drive to work. Plain and simple. So I said eat it. We're going to eat the day. People went nuts because some of them said, well, how does that count toward I I was going to take a PTO day that day. Now do I lose my PTO day? Do I make it up? And I'm going we're trying to look at what's the best for everybody. If we're going to pander So then you say, okay, the next time I won't

084do that. Then I got chewed out because I didn't. Cart [laughter] blanche. So you can't win or lose but if you do an e-day everybody has to do something. They have to check in on their kids. They have to have a suffer on the e-day are the kids because we already know they don't learn anything. Well, but I'm we're talking one day not six months. I mean it's it's an escape clause. To be honest with you, it's an escape clause. But the alternative would be they come back at the end of the school year If you don't have a if you don't If we have enough. I would say let's if there's snow days to be had, use the snow days until we're out. The real danger is you kind of do have built-in days

085when we have a work in-service day or vacation day. But when you get into Minnesota in late April Katie bar the door because you're going to get hammered someplace then you go, now what are we going to do? And nobody, the students, the teachers, the EAs, the custodians, the food service, everybody we're going to do one more day at the end of the year when everybody's pounding on the door to get out. I won't learn anything at the It's a waste of time. So the e-day at least you can cook something. Recoup I mean. And I have great confidence in our educators [clears throat] that they can plan something of value for a day or two days. We're not planning for six months. >> what you're saying is that we don't. That's what you just

086said. You said that you have great confidence in your educators. So [clears throat] you don't think we have confidence in those educators. >> No, that's not what I'm saying, DJ. >> Well, then what are you saying? What I'm saying is I heard I heard you say something about that it's not a value for the students to have an e-learning day. It's not. I am confident that we could make it worthy of an e-day experience. Is it the same as being in school? No. Um can we continue to do the ad hoc from time to time in an emergency? We can but I'm not convinced that that is best for students either. Um it would be nice to be able to give um a district-wide plan so that students um families and teachers can prepare in

087the event of an e-learning day. I'm sure. Mhm. Um so I'm going to go back to I think Superintendent Grant raised the point that this is um meets the contract need. And I get that. I we should all understand that and I get that. But I also understand DJ's point about and Randy all of our points about you know, um a lot of it has proven to be in co during COVID a uh um not a productive situation. So my question is this and I think DJ said, where does this where did this come from? So who brought this change to us and more importantly, what did it involve? It's a contract thing? Have the contract people been involved in the restructuring of the rewording of this of this policy? We have not brought it

088to the bargaining units. So no meet and confer, no no MOU. [clears throat] We have talked about it. We have talked about it in meet and confer but we have not asked them for an endorsement. We have talked about it with the groups. Well that's a problem for me. Okay. That's a problem for me because if it's if it's a contractual thing, which it is, it's absolutely is a contractual thing then then people that are under the contract should have some kind of um input. I agree. Okay, I'll vote no. In my understanding when we went from e-learning to no e-learning, was a result of some surveying of staff and families. And we took the Am I right in that? When we took the results of that input and decided overwhelmingly, as I remember, staff

089and families did not want any e-learning. They did not want the e-learning days. [snorts] Now, when we have our contract I have two questions. >> When we have our contract for the calendar, there are snow days designated, right? Like this is your first If there's a snow day, this is your first makeup day, or you get maybe a day or two or three or whatever that you don't have to make up. And >> It's It's not worded as being a snow day. It's It's can If there's a in-service day or vacation day, those are the first opportunity you can use. You don't designate on the calendar what your first uh Well, it'd be the first in-service day or something like that. >> Okay. Depending on on Mother Nature treats us. How many do we have

090built in for Two of them. Two? Two. Two. Um my other question is what What does support staff and food service and and those folks do on those days? That's a great question that I can't answer because I'm not familiar with the contract for food service employees. Um I can tell you what we've tentatively planned um is to have um >> [clears throat] >> educational assistants um do some support for students those days. Okay. We have not done a whole lot of planning on this because this has kind of been an ongoing conversation and we didn't want to get too far ahead um of the conversation that needs to be had here. It It is I I don't have a personal um in recommendation or an endorsement. This is just something that our exec team

091has uh talked about and wanted to bring forward to the board so that we can be thoughtful and intentional about how we plan support for students and teachers next year. >> I'm with John. I think it's really important that we have staff input. Mhm. Or Don't get me wrong. I I think this is a important >> It is an important discussion. But no prob- no question about it. But let's involve everybody that's involved. I'm not trying to be a smart alec, but I can tell you one thing. Food service is going to be They ain't going to be preparing food on an e-learning day. I'll tell you that. That's true. You know, so Good point, Randy. So, if we were to strike the except during inclement weather, this would essentially be emergency use like when

092it's when uh we had the issue with the water at the high school. Correct. So >> We could do that anyways, and it doesn't say that if you read it. Right. >> You see where it reads it's emergency use only? >> No. I don't either. But I mean that's essentially what this means if we were to take out except during inclement weather. And if if if we had the snow days in the calendar, it could say and if we use up all of the snow days in the calendar or something like that. >> Sure. Yeah. It can be whatever you want. >> Yeah. This is just the revisions we made after the last conversation. I mean I the quality of learning happening June 2nd versus on an e-day, I think it's debatable and I would

093take an e-day probably over June 2nd. Yeah. Um if if those were the two options personally, but I So, I think there is some merit to that discussion. [clears throat and cough] I know I want to I'm sure You're on the Are you You're on the policy committee, right? Mhm. Um I don't know where we stand with the motion, but There isn't one. There isn't one, yeah. >> not one? Well, then I'm going to make a motion that we send it back to committee for further discussion and uh language and uh bring it to another board meeting now. I second that. Okay. We have that on May 14th policy meeting. So, we've got a motion by Director Heideman, a second by Director Brekken to bring this back to uh policy committee and we Let's make

094sure we've got all of all of the things that we would like to see happen um in that in that time. We had a roll call vote on this one. Yeah. Is there Is there a possibility too, based upon what John's comment was, is there any way that you guys can do a mini survey of the staff? We can and we can also bring it back to meet and confer and our other groups that would be impacted. Absolutely. Okay. It would be good to have that information. Thank you. All right. We've got a motion on the table and we have asked for a roll call vote. So, let's do a roll call vote. And Madam Chair, the motion The motion is to bring it back to policy committee, correct? >> Correct. To review everything. Yep.

095Yes. Okay. And get input. And get input. [clears throat] We sent it back last Yep. Don't forget. >> Yep. >> Sent it back last month for weather. Now we got new reasons this month. Somebody's just got to make a decision, you know. Did do it last month. All right. Is there any further discussion? If not, we'll do a roll call vote, please. Did you download it? No. Stephanie Erdmann? No. Randy Heideman? Yes. Sarah Spear? Yes. John Ward? Yes. Michelle Brekken? Yes. That's just 4-2. Thank you, Kelly. All right. We'll move on to the approval of resolution for non-renewal of non-tenured teachers. We've got Director Olson, I believe. >> [clears throat] >> Good evening, board members uh before you tonight is a recommendation for approval of non-renewals for teachers on tier one licensure and also probationary

096non-renewals for either performance or budgetary concerns. Madam Chair. Yes. So, what Director Olson, I can There's Looks like there's seven people that we're talking about. Yes, sir. Um couple on tier one and couple on tier three and four, is that correct? Yes, sir. Um And these are all based on budgetary kind of situations? Either Well, the the the tier one licensures, I mean, we're basically required to do by law. It's a one-year license, so, you know, we have to go through that process of reposting. >> Yep. Uh the other ones noted are for either uh performance reasons or budgetary concerns. Okay. So, uh these people may or may not may or may not be eligible for future positions? Correct. May? They may be They're Any employee is is always welcome to apply. Okay. Be considered.

097>> Thank you. We'll put her motion if there aren't any further questions. >> Motion. Is there a second? May I ask a question before I I I Nope, can't. I need to know if >> Um Oh. I'll second it so we can have discussion. >> All right. Thank you. All right. We've got a motion and a second. Further discussion? So, haven't we already on the consent calendar haven't we already approved these folks for being non-renewed? They were approved on the consent calendar, but this resolution I I suppose it could trump that. Hate to use that word, but um you know. Okay. We prefer not to put it under consent. But it what I mean we >> I mean as far as Got it. >> identification. identification. This makes it official. >> Okay. Okay. I understand.

098That That was my Any other discussion? So, what's the probationary period? Jason, how long does that last? For uh teachers who are new to the teaching profession in Minnesota, it's three years. And then for individuals who have pri- previously attained tenure or non- probat- passed probation in another district, then it's one year. in [clears throat] our district. Okay. And and to go back to John's question, this has to do This has to do with budgetary cuts? Some of the are due to budget, some are due to performance issues. Okay. Any further discussion? If not, we'll do a roll call vote, please. Stephanie Erdmann? Yes. Randy Heideman? Yes. Sarah Spear? Yes. John Ward? Yes. Michelle Brekken? Yes. Did you download it? Yes. Thank you, Kelly. All right. Next, we'll look at the approval of the code

099upgrades to the Brain- Thank you. Look at the approval of code upgrades for the Brainerd High School's warehouse elevator. >> [clears throat] >> Good evening. Um first item up for approval we have code upgrades to the warehouse elevator at the Brainerd High School. The elevator was installed, believe it or not, prior to 1972. It's a traction elevator, which means it's got a gear and a counterweight. And unfortunately, that system is obsolete. And we're going to allow that. >> [laughter] >> That's almost 60 years old. 50 years. Yeah, 50 years old. Sounds like a lift bridge. So it is working fine and we when we do get an operating permit for it, but we are required um they give us 5 years to get the upgrades done. So we're able to use our long-term facility maintenance

100funds to make this improvement and the state contract for that is just under $200,000. And it's going to be upgraded to a hydraulic double cylinder elevator. Is that L T F money? Yes, sir. I'll make a motion we approve the BHS warehouse elevator. Second. We've got a motion by Director Brekken, a second by Director Director Dondelinger. Any further discussion? All those in favor signify by saying I. I. Opposed the same. Motion carries. All right. Uh the next item up for approval is the flooring project that we talked about at a facility committee meeting. Ooh, I think it was back in September or October of this year. We finally were able to get everything laid out and get pricing back. Um the flooring in the building has never been replaced since 2007, so we're coming on

10120 years old. And it's showing its age and it's linoleum. And we're going to move into a carpet style material that is going to help with uh sound attenuation. Um lower maintenance costs, we won't have to strip and wax every year. So we're going to go that route with it. Um we worked with Dr. Stommes with choosing some colors to make it uh a little bit more fun for everybody in each different pod and that's all I have. Is there any questions regarding that? And that's coming out of L T. That is uh under out of LTFM as well. Thank you. >> last as long, will it? This stuff, it should last 15 to 20 if it's taken care of. It's and it's squares as well. As well, so >> I have those in my

102business. I mean in some in in the entryways where that's going to get the high traffic, we use walk-off carpet and it's a little bit more durable, but if >> [cough] [clears throat] >> if maintained properly, we we hope to get 15 years out of it. >> [laughter] >> Realistically Probably 15. >> [clears throat] >> Like in my business, we just don't put it in because it looks terrible so fast that you have to replace it. Mhm. Uh it's is it okay if I ask a couple questions? Mhm. Yeah. Uh this is just me for my craziness. What is the 1.3182 factor? That is so if we when we use the Gordian uh system, we have uh the the the company Hi-Tech who is the Gordian contract holder in the area, that that is their

103fee for their service. Oh, I thought they were taking it off. So they're adding it. So they're making it 32%. They're saying this is cost. Mhm. You know, it just blows my mind that nylon carpet is 48 bucks a yard now. Is that right? I mean here's the deal. It's 5,961 yards. Mhm. I thought I was doing the math right. When I started on your quote, I did do it right. And it's 591,000 bucks. I mean that's with labor to install remove the >> don't I'm not I'm not I'm not saying anybody's screwing us. I just like wow. Yeah, well it's It's a lot of money. It's a lot of money for carpet. Yeah. Like if it was ceramic tile or something that was going to hold up for 30 years. I'm not saying we

104shouldn't do it. >> Right. But man, oh man. I just can't believe I'm that out to lunch on what things cost. It's a lot easier to replace a square of carpet than a Oh, I have them. I have them in my businesses and it's not quite what it's cracked up to be. They start corners to peeling. Once you replace them, they first put them down, they're great. When you start replacing them, it's not quite as shiny as they tell you, but whatever. Kind of like buying tires. >> [laughter] [laughter] >> You don't even buy tires. You just trade your car in, so I don't know what you're talking about. >> [laughter] >> Good one. Jeff, I just have I have a question. A handful of people uh I talked to uh when it gets when

105when the in like in the winter time when it's the floor gets wet in Forestview, it gets it's really slippery. You know those stairs that when you walk in the entry and you they're kind of circular. >> Yes. Uh I believe a lady slipped and uh uh is that being replaced as well or what are we doing? What are we going to do for that section? So for those areas, we are planning on putting down some like um traction strips. >> Got you. So to help prevent that, but yes, I was aware of that too and Peter brought that to our attention and we're we're we're taking care of it. >> Yeah, cuz it does get slippery. >> Yep. Yep. And to to help prevent that as well, we're going to put uh some walk-off

106carpet in that main entry area. Okay. Forestview to get rid of the 42 different mats that are currently there that look awful. Will I make a motion we approve the Forestview flooring? I'll second it. Got a motion by Director Brekken, a second by Director Dondelinger. Any further discussion? Uh and I would like to abstain because this it looks like this is a sourcewell contract, so just want to note that. All right. All those in favor signify by saying I. Opposed the same. Motion carries. Thank you, Jeff. Thank you. We'll move on to committee meeting updates and we'll start with finance and legislative committee, Director Ward. Okay, [snorts] so [clears throat] um we had a meeting on April excuse me, on March 26th. Uh Marci indicated the new account starts on April 6th, 2026. Right, Marci?

107And uh she indicated today that so far everything's going well. Uh we did talk about um the the million dollar transfer construction uh fund to the general fund uh House File 4306. That doesn't have a uh Senate uh author yet. Um So we don't know that it's going to move at all, but uh a number of people including some community members and administration and board members have um contacted our legislative delegation and asked them to do what they can. That is also true with um um House the seasonal seasonal attacks replacement aid bill and the educational employees insurance program. So um It's been you know, people have been advocating and lobbying for the for the Those bills will help significantly have the possibility to help significantly in the financial aspect of school districts, so we'll

108see what happens. Uh what I one of the things that I indicated to the committee is that no bill is dead. They talk about deadlines. The finance deadlines is this Friday. I'm pretty sure. This Friday and the policy deadline has already come and gone, but um deadlines don't mean squat um honestly. Um you can get a bill uh uh added onto an omnibus bill uh at the end of the session. The only The only thing that kills a bill is two words, sign it die. And when you hear that, then they're done. Um so uh if anybody has the uh uh still wants to uh contact legislators to support those bills, do it, please. Um Marci talked about transportation uh RFPs for transportation. Um looking at two two responses. We still get still looking at

109two responses, Marci? Okay, very good. Um And then we also talked about also RFPs for um school portraits, uh the audit, and building and grounds snow removal. And we're doing that as well. That's my report, Madam Chair, unless anybody has questions. Thank you. John, I got a question. >> Yeah. What is this stuff about the land around Forestview? Oh, what are we selling? >> What is that all about? >> [laughter] >> So there's Do you want me want me to Go ahead cuz it's over my head to be quite honest. >> Okay. So there's some assessments that were over in that area. Okay. >> [clears throat] >> And I can't remember if it was because of the Baxter Elementary School building, I think it was. And so um our local representative wanted some relief for

110some tax assessments in that area. Um So he was he he he he was um asking for us to work with uh some relief in assessments uh for those um um along with this bill that we were asking for. Kind of a work it together kind of deal. Kind of a quid pro quo. Yeah. I love the you and I. >> Exactly. Exactly. Well, we don't pay No, they pay us. Yeah. Yeah. Uh I'm still confused. I don't know I don't understand >> It's complicated. I mean it's our land. And the the land The neighbors pay us and we give them a discount. That's what they're trying to do. Mhm. Okay. Right. Yeah. And Representative Heitzman would like to know if we would forgive that. And I thought, well, maybe we could do 50/50 and

111you give us a deal, we'll give you a deal. That's right. Superintendent Grant laid did a nice job Okay. with that. I was just kind of confused because So, they're they're going to give But a casino on the It's not going to happen It's not going to happen because the bill Right. But we were going to offer a reduction in property tax relief or something? No, it's an assessment. But pulled it's an assessment. Oh, okay. With the construction of the Baxter Elementary School. So. Oh, little Let's talk about it later. Okay. >> [laughter] >> I WAS JUST CONFUSED cuz it was sports fuel aid. No, yeah. That's a good question. It's a good question. >> Okay. Thank you, Johnny. All right. Thank you, Director Ward. Yep. I apologize. Um we do have number seven on

112our agenda that I skipped over. The two items that we moved off of the consent calendar. The MOUs. The MOUs. So, I'm going to rewind [snorts] um [cough and clears throat] and go back to the EA MOU and the food service MOU. Okay. Okay. >> [clears throat] >> I'll go again. And it was just Jason we've had short conversation. I was just curious as to how many people are involved and uh Sure. uh you know >> [clears throat and cough] >> You bet. Yeah, we're we're uh proposing for you tonight to uh MOUs for early retirement incentive. Any funds um you know, if any individuals would take the uh incentive, that would come out of our OPEB or other post-employment benefit funds. So, it wouldn't come out of the general fund. Um and we're using

113the same criteria that we did for the teachers at uh 25 years and age 58. >> Got you. Uh but it's a it's a $10,000 incentive versus $25,000 for the the teacher group. Um with our cooks, we would have seven employees eligible out of 42. Okay. And for our educational assistants, uh and this is on like November's data, so could have changed a little bit, but um 17 eligible out of 200. I have a question. It says that the What What are we doing this for? For starters. Sure. I mean, I got the teacher thing, but more I think about that, I'm still trying to get my arms quite around that. So, are we are we replacing these positions? Some are being replaced. >> I mean, there's some Some or all or >> Well, to

114the extent we can um eliminate or reduce positions, we would always want to look at that. Uh food service is different cuz that's a separate fund, so it's not affecting, you know, the general fund. >> then what's the purpose of this? Yeah, I mean, some of it's an opportunity for leadership to look at some possible new iterations, new organizational setups and systems, things like that. Um but then if we do end up posting and filling positions, then they they'd come in at a lower rate. So, it's some of that turnover differential. So, we pay um retirement on these positions? It says the MOU is in addition to the retirement provisions of the CBA. [cough and clears throat] Yep. So, whatever provisions are are currently in there So, if I was 58, but if I stayed

115till I was 62, then the district wouldn't pay retirement on me for 4 years, correct? Correct. So, when when do they normally get to What's What's normal? 62? 65? 67? What's normal? I I would have to pull up that information. I don't have it memorized. Um I can get that to you, though. What those provisions are. I kind of this still confuses me just a little bit because if all we're going to do, let's just say that it's 65 cuz we don't know. We're going to pay 7 years more vacation plus throw an extra 10 grand on top of it to save some money today, let's just say it's $5 an hour. I bet you in 7 years we're spending more. The same 7 years the person who stayed and worked. I don't I'm not

116as excited about this as I was doing that the first time you pitched it to me. >> [laughter] >> I thought about it a little bit and I'm kind of like, you know, how does this work? It doesn't add up to me. All right. You know, to some degree bringing in fresh minds helps performance. I would say that. And um if there's an incentive to say, you know, if I left now, my last I don't need to work here anymore, I don't want to work here anymore. I'm just taking up a space. It's kind of a open the door and thank you. Well, then why would you give them $10,000 if they don't want to be here anymore? >> But comes out of OPEB anyway. And it doesn't it doesn't do anything to our general.

117It's an incentive. Just like when we We're going to do it. OPEB OPEB OPEB. So, our OPEB's going down, though, right? Well, it's just like we we have an incentive for hiring for SLP positions. It's an incentive. We would like to have two people come in who have that special licensure. Yep, I saw that. I'm on board with that. It's the same thing. You're in or you're out. We're looking for creativity. Well, I'm looking to save some money. I don't see how this I don't see how this is saving us money. I'm having a tough time getting my arms around it and you're not giving me any good information to make me feel good about it. So, don't blame me. Sorry I asked a hard question. I mean, I realize the OPEB deal. Um Marcy

118told me that the OPEB we we haven't been keeping up on it. You know, today we sat at what? 9.75 or something like that. Like we first got on the board, it was like 13. So, our claims are kind of snipping away at Is that what that OPEB is? Mhm. Yeah. Now, I mean, another factor to consider, right, is um just our overall age demographic of our workforce. These are individuals who are probably in the back nine of their career, certainly. Like myself. Right. Right. So, when you think about um how that hits our our books for um our health insurance, I mean, that is some potential opportunities to exit maybe higher cost claimants and replace with individuals who may be not be higher as higher cost. I mean, everyone's situation is different. I don't

119mean to be a I almost swore in my first meeting, Randy. >> [laughter] >> Are they going to stay on our insurance? No. It depends on the group whether they stay on our insurance. >> Got you. And a lot of them are, you know, some of them a number of them are Medicare eligible, but they're still on our plan. Is there a deadline when they have to use the assets from the health reimbursement arrangement? There is not. Okay. Cuz I know the school district I mean, it's a plan that we have and and uh we determine whether or not the medical expense they turn in is eligible to be turned in and and covered, but uh Um I mean, my understanding that money is there for that employee's life and then it uh to their

120spouse. Until they use the 10 grand up. Yep. Or they just save it and then they can take it out. And then you can earn that tax free. I think it's a health Do we There's no benefit There's no death benefit to a health reimbursement arrangement. Correct. And the other point is cuz I I've been through it too many times. The HRA or HSA, there's only you have certain qualifications you can use it for. It's just not cart blanche. This is different than a health When you send in a claim, they're going to say yes or no. Right across. Well, that's no different than your health insurance. The deal is is if you take that money out, right? Let's just say you want to spend it on a new motorcycle. You'd have to pay tax

121on it. You can't take that out. You can't. For for HRA, sir, the money goes HRA or HSA? HRA. HSA you can take out. You can take it out of HSA for whatever you want. You got to pay taxes and penalty possible. Yeah. I need to write it down. I did that for too many years. That's why I retired. >> [laughter] >> What's What's the Is it health reimbursement account? Health reimbursement arrangement. Health reimbursement account. Yeah, we determine whether or not that medical expense is a covered expense. Well, it's determined under statute and plan docs, but Yep. The plan determines it. Yep. I make a motion we approve the MOU for the support staff. Was there a third one? Uh no, I think it's just the two. Just the two. Just those two. The MOU

122early retirement incentive for educational assistants and food service. Second. All right. We've got a motion from Director Reckin and a second from Director Ward. Any further discussion? Not. All those in favor signify by saying I. I. Opposed the same. I. Motion carries. Thank you. All right. We'll get back to committee meeting updates. Did you want to talk about the SLP MOU or is that somewhere else? That was on the consent agenda. Oh, that No, that didn't get forwarded. Good work. Thank you so much. >> [laughter] >> Thank you. That's right. I was confused, too. Jason, wait a minute. >> [laughter] >> We'll move back to committee meeting updates and Director Ward with APAC. Okay. So, I I also talked about this at our work session, but uh the report from the APAC meeting um just

123a couple things I'm going to highlight. Um the members of the APAC committee uh felt disconnected, disappointed with with the response um by the board and the administration to their non-concurrence um response to us. Uh they they wanted us to know that the response needed to be come from the school board, uh not the administration by state statute. And we talked a little bit about that that we've got to do a better job um kind of uh collaborating with that to get to have that happen or whatever. Um And the reason the response is uh so important uh to to the APAC is that they the data that they're asking for um is uh data that helps them get um grants for different for different um attendance or uh discipline or whatever. So, that data

124is important to that to uh to that group for um future funding of of for different um issues or whatever. So, I that's that's about it. I mean, it was a it's it's a There's good discussion. It was my first meeting, so I'm on a huge learning curve. Steph has been there in the past, but uh I haven't, so um I'll just leave it at that. If If there's any questions, I'd be glad to try and answer them. Thank you. Yeah. All right. Next up, we've got Brainerd Public Schools Foundation, Director Edman. Okay. So, they had 190 submitted scholarship applicants. 15 were abandoned in the draft, though. Um Colleen Power committed to 46 scholarships at $1,500 each. So, that is huge. The scholarship recognition night is Wednesday, May 20th. It's doors open at 6:00. Program

125starts at 6:30. It's at the GZ Center. And if you They would like volunteers, so if anybody wants to help out volunteering that night, it's a great night. And that was pretty much it today. Okay. Thank you. All right. Safe and Welcoming Schools Committee, Director Brekken. >> was not able to attend the last meeting, so I don't have an update on that. And the Wellness Task Force meets tomorrow. Okay. Thank you. The Business Services report, Director Lord. Sorry, we caught you off guard. >> [clears throat] >> It's sweltering tonight. Uh so, the financial report in your packet, the first one is for the month of February, on track. Um there is a new little section. Director Dondelinger, you asked for that last month that shows the building construction fund balance is about 2.1 million, and

126then the post-employment or OPEB trust fund is at about 15.6 million. Why is it so low on that? >> [laughter] >> Um and that's just This is not I was looking at the wrong one. And then the second uh page on that one is the June, so we did just close out the year, so I'm doing the final June financial report for last year. Um 2.02% under budget overall at the very bottom. And then I didn't say this during the financial statements, but I do have bound ones if you prefer the paper over electronic, you just let me know. You mean that 120 for Yes. They do provide a couple copies. I did not print them. Ryan. Page three or five. Uh and then also in your packet is the enrollment report. We're down 133

127from the beginning of the school year. Five-year average is 83, so we are still tracking high. It was only three, though, from last month, so that was a positive. Any questions? Thank you. Thank you, Marcy. All right. Superintendent report. Um so, today our Executive Committee met and um Chip joined us. And we had some pretty frank discussions about the district and where we're going, what's going to happen, and so forth. So, there's a couple of things I I don't want to end like this, but I'm just going to be blunt blunt with you guys. When you think back to Hazel's report, which is almost 2 months ago today, she predicts a thousand dollar a thousand dollar a thousand student reduction in about 30 34. If you looked at carefully at the audit report from '21

128to '25, we lost 500 kids. And I know it's a concern about some of the board or all the board. So, we lost 500 in four in five years. We lost 500 five five years before. And it seems like things aren't changing on the expenditure side and the revenue side. Well, the revenue side is going to be what it is, but it really comes down to is that you guys have to have a reality check about what's going to happen. It was a very somber, very serious conversation we had today about what the next five years are going to look like. And um I think there's a lot of denial about what's changing. I think there's a belief that um we're going to have a quick rebound or something's going to happen that's not going

129to cause us to lose another 500 students or maybe more. And I think um the implications of it are much more deeper than what's been discussed. Um programming is going to change. You're going to have to change the amount of school buildings in this district. You may not close them, you may shutter them. But you might need the square footage, and maybe there'll be some creative way of using the an empty building. The reality is is that as our population shrinks, we can't do everything we're doing today. In fact, Chip said something today we all agreed upon. Today is probably the highest enrollment you're going to see for the next 10 years. That's a reality. And what that can mean is that what are we still going to deliver to kids that is quality in

130education, and who's going to do the delivering? Um there are state mandates you're going to have to still follow. And your your question's going to be who's going to who's going to serve the plate? Who's the director, who's the teacher, who's the person, whatever it is, the expert that's going to deliver the programming that the state still says we have to do as we make reductions? And my concern is that we're going to start eliminating some uh directors or administrators, whatever. That has to happen. It's part of the deal. But the question is, whose plate's going to take that on? Who's going to take on uh literacy? Who's going to take on testing? Who's going to take on STEM? Who's going to take on whatever? Um as as the watering hole shrinks, everybody starts to

131look at each other a little bit differently. And it's I'm just going to tell you that it is not going to be comfortable for the next five years. As you struggle to try and figure out how are we going to keep our head above water, number one. Number two, how are our students going to be delivered an excellent education while we diminish what we can deliver because the constraints are going to force some things to happen. And a big big picture, and for some of you out there, you'll know this. Where did Mont Montgomery Wards go? Closed. Where did Sears go? Closed. Where's JCPenney? Closed. What happened to them? They couldn't stay with the competition. They didn't have a plan on how to fight the competition. And they ended up shrinking to a point where

132I don't know, maybe there's five JCPenney stores left in the state of Minnesota. There could be. There's 40 Sears left in the United States. And my point is that they didn't they didn't anticipate, they didn't react, they didn't plan. I'm going to tell you right now, I think we are in disbelief about what's coming. We're not thinking about what should we do. Five-year plan for budgeting is probably a great idea, Randy. Yep. More importantly, though, is what are you going to do differently with 500 less kids five years from today? What do you want those remaining students, 4,300? I don't know. What do you want them to experience that has been a great opportunity prior to those thousand kids leaving or whatever it is? And I want to give you a heads-up. The most difficult

133decisions have not been today, have not been about this budget, it's not going to be about next year's budget. Your job is going to become increasingly desperate of figuring out an answer. And if you finger point, you're going to lose. If you let politics run it, you're going to lose. If you don't think about how do we stretch the dollar farther than we have, you're going to lose. And I want I am so passionate about public education, but I'm worried to death where it's going. And the entire state has gone through this. It isn't a Brainerd deal. I told the uh committee this morning, going into the end of this year, Minneapolis thought they were going to be 35 million deficit. They came out and said, "Oh, we're 50 million." What are they going to

134do with a $50 million deficit? And they've lost 30,000 students. So, I implore you to become more creative. Find out what's really the base of what you have to do. Chip is going to need an awful lot of support because he might end up being the bad guy sometimes down the road. The administrators sitting back there and the principals, they're going to need a lot of support because they're going to have to make some really tough decisions about what stays and what goes. The classroom teacher is going to have to make some really tough decisions about who's supporting me. What can I deliver that I can't deliver anymore? And what's it going to mean? And in the end some things are have to go away that is good for kids because you can't afford it.

135Or you can't support it. Or you don't have the expertise to carry it through. And I just wanted you to be aware of the fact that as we got the audit the numbers don't look that bad. That is last year. That's not now. That's last year. The audit next year and the next five are going to be a wake-up call. And um I've said it more than once. St. Paul's not the answer. They are not the answer. If they were the answer, Minneapolis would not be $50 million in the hole. So, you're going to have to really start being creative and have open discussions and also be able to say, "We just can't do this anymore." Whatever program might be or the offer is. You know, athletics and musics are going to be impacted tremendously

136and kids love that part. Can you offer everything you're doing today with 500 to 1,000 less kids? $17 million possibly less in your revenues. If everything stayed the same. They didn't change the formula. You're going to lose $17 million. Do you remember, Peter, what you said? Huh? Do you remember what you said? And if anybody wants to talk about it I'll tell you why Sears isn't around anymore cuz they didn't change. Yeah. And they're too top-heavy. And you got to sit there and wait and have somebody grump at you. And then when you got out the bag, you had to go take it back. Remember they were back in the wards and you go stand at the counter for somebody to bark at you and try to return it. Like that business model went away.

137>> Yep. Kmart came in, put it right on the shelf, you could have instant gratification. Walmart came in, took out Kmart. Like it's this is what you I think you're right on the money on this deal. >> The competition is We got competition. >> Well, look what's happened in the last 3 years. Three new elementary schools. That should tell you everything. They're all private. Where are they? I mean, we got the one. We got three. When Hazel gave her report, we lost 300 elementary kids to these private schools. But St. Franny and Lake Region have been here forever. >> Yeah, but there's three new ones. >> three. These are three brand new ones. >> Three brand new ones. Yeah, the Starry, they renamed themselves Oak. Yeah. Something >> You may think that they're not doing

138much damage. All you have to take away is 15 kids. >> I've been talking about it. >> Cuz that's a 13-year ripple. So, I'm I I wanted you to know the challenge is going to be tremendous, but it's also a great opportunity to do something that you've never done before and that is start changing the future. Don't wait for it. Agreed. Start changing it. So, Um and to reiterate that, you're like DJ said, you're right on. Um the not besides the three new elementaries, um St. Francis is talking about putting a high school high school there. Um Pillager on online, if you looked at if you if you're if you're a um friend on Facebook with Pillager, they have a marketing thing right now going on with their kindergarten and first and second grade saying,

139"Are you Are you looking for a school? Come on and try try us." So, it's not just private. It's There's a lot of competition amongst the public system as well. >> And they have the same rules as we do from St. Paul getting you know, and they're getting the same They're getting clipped the same as we are. Yep. Yeah, we just got to be creative. We got to figure it out. We can do it. Sorry to end it that way, but after a meeting this after a meeting this morning, I thought it was really important to share that. Yeah. And it's a really frank discussion and it's not it's not comfortable and it is prickly in the back of your hair. You know. Yeah. And here's where all the team Yeah. We got to back

140like a team and Yeah. um Well, we'll figure stuff out. >> We're going to have to. Yep. And uh And the other football. But we got to remember what we're all about though and that's educating kids. That's our number one goal. Thank you, Peter. All right. Um there's a list of future meetings there. I'd add to that list the um Anastasia the musical is going on this weekend if you're in town. Want to hit it up. The kids have been working hard on it. All right. And we'll look for a motion to adjourn. I'll make it. Second. Any discussion? If not, all those in favor signify saying I. >> I. I. Perfect. Same. We're adjourned. Thank