001Six bells. >> All right. >> Hey, it's Sarah. >> Oh, >> you want >> Oh, it's Randy here. >> Yeah. >> Call the meeting to order and uh we'll do a roll call. >> Michelle Breen [cough and clears throat] >> here. >> DJ Duner >> here. >> Stephanie Edman. >> Randy Hidman >> here. >> Sarah Smear >> here. on board >> here. Let's >> do the pledge of allegiance. >> Pledge allegiance to the flag >> to the flag of the United States of America. >> America and to the >> republic for which it stands under >> God. With liberty and justice for all. >> Have a whole meeting like that. That's how it be. [laughter] People on Zoom. That's why I was like I'm a panic attack. I'm going to be [snorts] >> 30 people.
002It's going to be rough. >> We don't need to do an approval on the agenda, do we? Or do we? >> Yes, sir. >> Should we? Okay. >> Yeah. >> Um, we're going to go out of a little bit of order tonight. Um um so looking for someone to approve of the agenda as amended. Uh we'll be talking about um the resolution awarding the issuance and sale of general obligation school building refunding bonds. That's going to be out of order. Um and then we'll come back into order of uh items and then we'll be recessing uh our meeting until tomorrow uh at 6:00 p.m. So um get a motion. >> Motion. Motion by director. >> Second by director Ward. Do a roll call. >> DJ Dunninger. >> Yes. >> Randy Heidman. >> Yes. >> Sarah
003Spear. >> Yes. >> Okay. This meeting of the Brainer School Board is being conducted in accordance with Minnesota statutes 13D.02. O2. This meeting is being recorded. Access to the recording is available on the school district's YouTube channel. So, our first item is Aaylor's. Correct. >> Correct. >> So, I'll make a motion. >> Uh, so Shelby was just going to give a quick recap of the sale. You I'm gonna turn it over to Shelby. >> Uh, good evening. Uh the bond sale was this morning. So we wanted to refund a portion of your or all of your 20 um 18C bonds. There's two maturities there. And uh the purpose of that was to refund for savings. So no restructure going on. Uh just uh taking some savings and using some funds on hand in the debt
004service fund to put towards that to lower the principal. Uh seven bids uh came in this morning. The low bidder was uh Raymond James out of Florida and that was at uh 2.7. So a good interest rate for what we were expecting to see. Um in pre-sale uh we had 3.24. So nice to have that lower um interest rate come in today. The overall savings what the district saw with the um uh with the inclusion of that uh $1 million was about 1.23 two three um 23 million in uh for the payable 2027 or fiscal year 28 maturity. So some um nice savings there with that overall on this uh this issuance. So the process tonight is to uh um authorize the the resolution that you have before you and that would award this sale
005to Raymond James. we um as uh allowed by the resolution, we've sent some stuff through on uh for electronic signatures and um to populate electronically. Uh and then um that would be the sort of uh the step that needs to be done tonight to get that moving through and then um there'll be some other documentation that can be uh signed uh when the uh meeting convenes tomorrow night. So you'll you'll have these funds go into escrow. Um they'll earn a little bit there and that will be get um that will be put towards the refunding as well. So overall a really smooth process and we thank administration for um uh all of the things that go into a bond sale um and especially the uh the process with the rating agency and getting your um
006your solid rating affirmed by S&P as part of this process. So, I can answer any questions, but that that is that is it in a nutshell. >> I got a question. Is Marsh, you said that I'd have to sign hard copies tomorrow. >> So, do you have the hard copies? >> Um, >> because I didn't sign the electronic one. >> Okay. >> But maybe Ryan can get in my schoolboard email. I can do it right now. I just figured I'd sign it and then you'd be like, >> you're here, so why are you doing that type of thing? So, I didn't do it. >> We need both the chair and yours. So, electronic would be better. >> Okay. [clears throat] Can you get mine? >> I know the password. >> I don't want to know
007your password. We can have it. >> You set it up. [laughter] >> You're really into it. >> Okay. >> Thanks, Shelby. >> Uh any other questions by any other uh board members? Okay. Hearing none. Um look for a motion to approve the uh sale of the bonds. I'll do it. >> So move. >> Okay. >> Second. >> Director Ward. Motion second by Director Daninger to sell the the bonds. I will do a roll call vote on this one as well. I believe we're going to be doing all roll call votes. Yeah. >> Randy Hidman. >> Yes. >> Sarah Spear. Yes. >> John Ward. >> Yes. >> Dinger. >> Yes. >> Okay. And now we'll have Marcy give us uh a presentation on truth and taxation. Marcy. >> Okay. I'm gonna share my screen. screen. Can
008you guys see this? Okay. Yep. Awesome. Okay. So, uh, a lot of this is repeat, so I'm going to do a very condensed version. Um but please feel free to stop me if need be. So tonight's uh presentation needs to go over the current year budget and then the proposed tax levy uh that's required by state law and then we'll talk about the um we'll [clears throat] open it up for public comments after this. So the Minnesota legislature sets the state funding for Minnesota public schools. uh they set the limit and the districts can levy less but uh or they could go more if there's an operating or capital levy. This is a graph that's in there. Typically it go compares the formula to inflate if there was inflation factor in there. So it shows
009there's a gap and in 2526 we're going to get paid 7,481 per pupil. uh underfunding of special ed. Again, this is not new. Um in order to address that, a lot of districts cut or go for an operating referendum because there is not special ed is not fully funded. These are all the funds that the district has. You can see each category. This is our current year budget by fund balance. So each of those funds broken out by fund balance. This is all of our revenue funds. Um, and if you take into account the levy, that's about 24% of our total funds. And then the increase of 4.7% that's being presented tonight is only 1.1% of our total budget. >> I'm confused. >> Yeah. So total revenue, so state aids, federal, everything is >> How
010is 29 million 1% of our deal? >> Not 29 million. the increase. So, our increase I see. Okay. >> Yep. >> Uh general fund revenue 97 million. You can see the breakout of state, federal, local, and other. Uh [clears throat] not huge changes from last year. So, nothing really to note on that one. And then this is our expenditures by object. Obviously, our we've talked about this before too. Salary and benefits make up the biggest of our budget and it totals 78.3. And then this is general fund by program meaning what category are they in. Um and instruction is obviously the the largest part on that one too. We are teaching kids. Um changes in the tax levy does not determine change in budget. So for example a category could have more levy less state
011aid but same amount of money. We could get a dollar. One was 50/50. Um, but then the legislature said, "Well, we're going to make it 2575." So, it doesn't mean we get more money. It just means they're going to pull it from different areas. The difference in the school district versus city, we're talking about the levy for 2627, whereas cities and counties are talking about the budget for next year, 2026. So, we are different on our fiscal year. This is just a real brief summary of uh the process. step one to step six. And then this is the timeline for the district. So September, we approved the proposed levy. Um mid November the tax statements went out and then we're having the hearing tonight and doing the final levy. The proposed tax levy increase is
0124.7%. Um it there was a minor decrease since the September board meeting, but it was a 01%. So nothing nothing major to note. This is the levy broken out by fund. So you can see the general went up one and a half%, community service went up three and a half and then debt service went up 7.6%. So overall it's 4.7 between all the funds. Uh just a real brief explanation of >> ask one more question. >> Yeah. >> Why does the debt service go up more than the other ones? How does that work? >> So the debt service is principal and interest. So it whatever we have for principles and interest is what's going to be reflected in >> it's whatever you have on the schedule for this year. >> You got it. [sighs] >>
013So explanation of levy changes general fund the biggest change was LTFM now that we've qualified for 1A funding the general fund prior year adjustments. So everything is not everything but majority of it is based on estimates. So as the actuals come in we're going to see estimates from previous years on there. The debt service fund as said is principal and interest. So whatever our principal and interest payments are. Um changes in uh individual taxpayers can be reflective of their not just increases from municipalities. It could be that their market value went up or the property and total in the district went up or down. Either or. So this is an example of uh showing that the district just because your taxes go up doesn't mean necessarily the district gets more money. Two homes valued at
014the same they both pay 250 and then if their market value changes that $500 is still what the district gets but one is paying more and one is paying less. Just an illustration to show that. Um and then these next uh slides are provided by Ellers and it it shows if there was no change in market value or if the increase that we have seen what those look like. So this one is very small so I apologize but um you can [clears throat] see the property values if there was no changes would actually have went the taxes in the very right column gray would have went down. So, that's not what's happening because our market value has changed. Um, this is just a slide that shows what other comparable districts pay for taxes on a
015$375,000 home. So, Bamiji being the lowest, Morah ahead being the highest, and we're kind of we're the blue bar. You can see how much other other taxpayers are paying in comparable districts. So, these are the estimated changes. Like I said, if there was no change in part property value and the first slide is residential, the second slide is commercial. And then this next slide is egg and then the the um slide on the right is seasonal wreck. And then this is if there was the cumulative changes that we have seen. So 17.8% you can see those bar graphs slowly build. So people are paying more in taxes with the market value changes and the um they we only have the residential and commercial. We didn't do the egg and the um seasonal wreck on that
016one. So that is very quickly um the tax the budget and the levy so the board can accept public comments and then I ask for your approval on the actual levy itself so we can get that certified. >> I just have one question on the debt service. >> Yeah, >> Marcy, it's not like a regular mortgage where it goes down every year. Um ours can go up and can go down from year to year. >> Correct. And that's because of >> because of how the debt payments are structured. Like to for example, tonight with the bond sale, we could have structured the payments so that maybe this year we're going to pay 500,000 and next year we're going to pay 400. You know, it all depends on how you structure those debt payments. >> Thank
017you. >> Yeah, >> I will tell you my house taxes from the district went down. >> Really? >> Yep. But the counties took care of that. >> [laughter] >> county and uh East School Lake. >> Did you see an overall? [laughter] >> No, it went up. It all overall went up, but my I was surprised that my school taxes went down, which I got >> Can we do [laughter] >> Why do you structure Why do you Why do you [clears throat] I'm with Randy on this whole Why would the debt service payments be higher this year than they were last year? Why wouldn't you continually keep them the same or why wouldn't they continually trickle down because the interest costs would get less and less and less? >> Is Shelby still on? >> Did she?
018>> So So when this originally got done, whoever the board voted for that structure, you you know that's how it went. >> Correct. And I'm just going to say a lot >> a 40-year deal, isn't it? >> Yep. And a lot of the times we're looking at Ellers and they're looking at our levy because if we we don't want our levy to have big drops like or increases, >> keep it steady. >> Yep. And so they might look at our levy and go, "Oo, we see that you're kind of falling off maybe in 2027. So we're going to make your debt payment a little bit bigger that year so that we just continue to see that flatline." >> No. Because if they don't >> because what you don't want the taxpayer to see is this
019all the time. >> Yes. >> Because then they're going, "What's going on?" So they try to keep it as flat as they possibly can. >> Exactly. >> So you've moved that number to keep things level, right? >> Yes. Marcy. Um, also, um, the market value in our area, in our school district, um, the market values have been increasing, um, in our on our property taxes, uh, for a while. Did I hear you say that they were here? >> Sorry, you cut out there, John. What did you say? >> So, [snorts] the, um, >> just the last part. >> Yeah, just the last part. >> Just the last couple words. Uh um did did I hear you say that the market value was flat this year market values? >> No. So so the first graphs were
020just showing if there were no change and then the um the cumulative is 17.8% and I think uh Ellers put in like a 6% projection for market values for next year. >> Okay. And then but I think it's also good that people understand that the market values play a big factor. Correct. and um total taxation. Um and since this is a truth in taxation um and individuals can, you know, challenge or whatever, I think we should take a look at Peter's taxation and see if we can fix that for him. [laughter] Noted. >> Any other questions? You can open it up for public comment. >> Okay. Is there anyone from the public that would uh like to comment on the uh uh truth and taxation? Uh hearing none. Uh looking for a motion to uh
021approve the truth and taxation as presented by uh uh Director Lord. I'll make a motion. >> Motion by Director Spear. Do we have a second? >> I'll second. >> Second by Director Breen. And we'll do a roll call. >> Spear. >> I'm sorry. Did you say my name? Kelly? >> Yes. >> Don Ward? >> Yes. Michelle Breen. >> Yes. >> Did you Doner? >> Yes. >> Randy Heman. >> Yes. >> Okay. Uh that really takes us to the uh to the uh end of our discussion tonight and um we are not going to be adjourning the meeting. We are going to go into recess and we will come back into an open meeting tomorrow uh at 6 pm. All right. Do you need a motion to recess or are you good? >> Yeah, you do.
022Yeah, we'll look for a look for a motion on that. Thank you. Uh >> I make a motion we recess till tomorrow at 6 o'clock at Washington Senior High. >> Director Dinger uh made a motion to uh uh re uh come back in uh to meeting tomorrow at 6 p.m. Do I have a second? I'll second. >> Director Spear second. And we'll do a roll call on this one, too. >> John Ward, >> yes. >> Breen, >> yes. >> DJ Doninger, >> yes. >> Randy Hidman, >> yes. >> Sarah Spear, >> yes.