001call this meeting to order and we'll start with roll call, please. Oh, we don't need to. We don't have anybody. Oh, well, I do need to do zooming anybody. Um, do do we do the pledge first? Oh. Oh, I'm here. DJ Der here. Randy Hidman here. Sarah Spear here. John Ward. Stephanie Edman. Thanks, Kelly. All right, now we'll do the pledge of 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. All right. This meeting of the Brainer School Board is being conducted in accordance with Minnesota statutes 13D.02. This meeting is being recorded. Access to the recording is available on the school district's YouTube channel. We will entertain a motion to approve the agenda as presented.
002So move. Okay. I'll second. All right. We've got a motion and a second. Any discussion? If not, all those in favor say I. I. I. Oppose. The same. Motion passes. We due to this being a special schoolboard meeting, there is not public input allowed during this meeting because it was called as a special and not um as our planned meeting. Under new business for today, our topic is the approval of the first revision of the 2425 budget. As presented, we've got Director Marcy Lord with us. Thanks for coming, Marcy. Yes. I was going to say good evening, but we're not quite there, are we? All right. So, in your guys's packet is a um the presentation itself and then also a extended version of what's being presented or a more detailed version I guess is
003a a better way of saying that. So, the presentation primarily focuses on the general fund. The document does have all the funds. The 2324 revised budget was our starting point for the 2425 preliminary budget. So you can see in the unassigned and typically I focus on the unassigned uh the excess was about 650,000. So that was our starting point. And then when we uh last month, sorry, we talked about the 23 24 audited. So that's kind of still fresh in your minds. If the audit had been done further along, I'd probably or there was more time span between that, I'd probably go into more detail on this. But you guys have been well verssed within the last month on this. So for the 2324 revised um excuse me revised budget was about 652,000 excess in
004the unassigned the 2324 actual was 20 2.5 million excess in unassigned and we went through all of that last month. And then also community service uh noted that the difference was about 342,000 deficit went to an actual of 285 in excess. So again just repeat of last month but typically we'd have a little more time span in between the audit and this presentation. So that's why we it's on here the 2425 preliminary budget we did have uh we then update with the assumptions we know. So 2% on the formula. There was a decrease of approximately 111 adjusted pupil units and then an increase in compensatory and sped funding. And then we also had increase in labor agreements uh benefits and then contracted transportation and Pso. So those are kind of where we got started with
005the preliminary budget. In that preliminary budget, we had estimated 5,789 and adjusted pupil units. And that's taking the first revised adjusted pupil units, factoring in the transition between grades, and then coming up with this projection. Again, in the preliminary budget, we were looking at about a $3 million uh deficit in the unassigned. And then I just want to note that beginning balance column is based on the first the 2324 first revision and you'll see that that gets updated. I know that can be confusing but that beginning balance is based on the revision and then when we look at their first revised budget for this year it's going to be the actuals because we know how the year closed. So 2425 the first budget re revenue and expense assumptions. So we then took how we closed
006the year ADM wise what was our October one account one count for students and then put it into our projection model and we're going to be down a projected 38 adjusted pupil units. Uh we also looked at our salary and benefits uh updated that with any known changes. There's about 2500 lines that we had to touch for that. We have number of accounts and just going to do a quick shout out to our new accountant put in a lot of extra hours and then also we did have um Angie Bennett previously came back in and helped us out. So I just want to do a shout out there. That was super helpful. And then uh with the revision, we review almost 10,000 revenue and expense accounts. And I know that it seems crazy to have
007that many accounts, but with all the restrictions, that's why we have to have so many account codes. It's not by my choice. Just want to make that noted. Uh and then also uh the services that were increased, we had to look at PSCO again. So, our first semester bill came in and it was higher than what was projected and so we did have to increase that budget as well. But with all of that, this is a screenshot of our our projection model. So, it takes the last six years looking at our October one count and then our final ADMs and coming up with a percentage. And so then we apply that percentage to our current year October one count to come up with our projection. It's pretty neat. Lot of tabs on that spreadsheet. So
008with the first revised budget, uh the restricted lines, there were three restricted lines added. Literacy aid, that was new, student support personnel aid, and then teacher compensation for the readac training. You can see under restricted, all three of those lines were added. And then, like I mentioned before, the beginning balances were updated with the audited actuals. And so, we're looking at about a $2.8 million deficit in the unassignment. What were those three new ones? Uh, literacy aid, student support personnel aid, and teacher compensation for read training. Thanks, Marcy. Yeah. What is student support personnel aid? So that was um so for counselors we could use it for counselors. In fact we did use it um when we had CARES funding we added a counselor at the forest view and so we just transitioned that position
009into this funding. Okay with the CARES funding going away. And then the literacy aid you'll notice that there's no expenses on there. We're still um if you talk to director Russ, she's we're looking at curriculum. What can we use for curriculum with that? And then the teacher compensation for redact training that there was aou done for that those expenses. What's the deal with the LTFM as far as the deficit? I thought we were going to take the new deal that So why do we show a million dollar loss? We don't have to. 25 26. So we were thinking that we were taking a these numbers are so confusing. On the bottom it shows 4.2. Yes. On the top it shows 2.8. 2.8's the actual 2.8 is the one we focus on because unassigned is you
010can use for anything. The 4.2 encompasses all the restricted accounts. Well, then why are we going to fix the restricted accounts? So those are typically planned like for LTFM, we we still have in fund balance what our allocation is. So if the state came and said we are no longer going to fund LTFM, we'd have at least a year of time to to plan for that. So that one is not a concern. Okay. I'm not really I'm not as concerned as much about that one as I am some of these other ones. Like operating capital. Yep. Same thing. Operating schools. Yep. Operating capital. uh we have more than what our allocation is from the state and fund balance even with dipping into it. So same thing where it's not I would I would be concerned
011if we we're dipping into the fund balance and not having enough reserves. Oh this is kind of like the food thing. So like unassigned I mean I the reason why I point that out is because we are low right we in some of these other restricted accounts we are doing just fine. We we could we could plan if funding was to be taken away. We would have time. So do they mandate how much money you can carry over? Not in these accounts fund um food service they do. Gotcha. Um, so any other questions on the restricted? It it is I mean there's a number of categories. It it's crazy how many categories we've this this sheet. I was actually going to joke that this sheet is not going to fit on this page anymore. We
012keep adding to it. I'm going to need a bigger I'm going to have to probably put it on two slides. Well, it's not us adding to it, right? Right. It's the state. Yeah. Yeah. they're doing such favors, constantly worried about the schools, just a wonderful job. Um, but as far as your other and the staff development line, like that's another one that's deficit. So, what happens is is during the revision, we add all the carryover that sites have, but it doesn't mean they're going to spend it. They just like to know what they have for a budget. So, if I'm um one of the sites and I have a carryover of 10,000, it gets added to the budget, but it doesn't mean they're going to spend it. Maybe they will if they have some planned
013training, but it's it it is a little bit deceiving when you see that number. And that's indicated in the beginning balance. So, if you look at that, you can see what's being added or subtracted in the excess or deficit. for that balance. Any others on that one? Otherwise, I'll move on. So, a comparison from the preliminary to the first revise, we are going from that 2 point or 3 million and unassigned to about 2.8. And then you'll see that the percentage of um total expenses go down just a little bit. And then our unassigned fund balance is higher compared to preliminary because of how we closed last year. So 12.4%. And we just have to remember that we didn't spend that money. It didn't get spent. It's kind of allocated. So it's not like we're
014keeping it. Not like we get to hang on to it. Right. It's it's it just didn't get spent before the the cut off on our budget. Right. You say that well the three million that we found in the audit deal you told me it's because we didn't get enough of our LTFM projects done that was that was a separate line so the amount that we put into fund balance is now incorporated into this okay but which is still low it's still a low fund balance three million that magically showed up right was because we didn't spend it we had planned on spending it we had budgeted to spend it right and we didn't spend it. So there was not 3 million in LTFM. That was an unassigned. Well, whatever. Where did the 3 million come
015from, Marcy? From coming in under expenses in general, the audited thing you showed us a month ago. Sarah, you were there. What do you remember? We we made money on interest. Yes. Well, that's good. That's where a lot of the money came from. Yes. That was where a lot of Yeah. That's a good deal. I just thought that you told me that well the deal is we didn't get all the projects done so it's like we had budgeted this much and we didn't really spend it after the audit got done and that that was an LTFM but it wasn't the three million two separate things. So are we going to spend it? Apparently we're going to spend it right here. It's going we're going to spend we're going to try to get our projects done
016in LTFM. This the unassigned fund balance you just get into my peep brain here. That's kind of like a savings account, right? Yes. We can do whatever we want with that. Yes. Okay, you got it. But we do have a budget policy at the board level to have that at 10%. Yeah, we chose What is the state recommend? You're jumping ahead of my presentation. Sorry. It's okay. Three months. You said that so nicely. Be quiet. No, it's three months or 25%. So, whichever is greater. That is so 3 months is 25%. is 25%. Okay. Okay. Sure. Of course. Yeah. Yeah. Okay. So, there is my next slide. The state recommendation is three months. Um, with the projected fund balance, we're about at a month and a half. And then the board policy is that 10%
017that uh Sarah had mentioned. But I just want to reiterate that for you have one and a half months reserve. So if something goes bad, you know, whatever it may be, that could be gone in a hurry. And a lot of school districts that struggle at staying at 10%. What they end up doing is borrowing money usually to meet payroll. And that's a cycle that's really really hard to get out of once you're in a it's really difficult. So we don't want to go that direction. Well, can you explain, Peter, and I think I might be hopefully I'm saying this right. Is it true that Crosby is in what they call statutory operating deficit? If you're at 2 and a half% or lower, that's what that is. Okay. Is that correct, Marcy? Okay. So then
018technically under state law you cannot operate like that. So you have to come up with a solution to solve statutory operating debt. Usually that means cutting to raise your um amount but then usually end up going to the public and say would you give us more money and um I don't know how many districts throughout the state are in that stage right now but it's going to change real quick. I have a feeling. Okay. So, um you pending your approval, the next steps will be if there was a second revision needed. So, uh if we had some substantial changes, for example, 500,000 from the state or something like that, we would do a second revision. If we don't see very material items that are affecting the budget, we will not do a second revision. And
019then the first revised budget will be our starting point for next year's preliminary budget. And we'll start looking at our assumptions, enrollment, the gened formula. Um last month we or last meeting we talked about the the inflation factor on that. um projected sped change, federal funds, we'll have to remove all the CARES money out of that and then any changes in the local levy and then employee contracts that we know of and then that's when the work begins. Right. Any questions? Where's that little page of that little chart with all the ADMs and all that stuff on there? Um, I got it. You got it. 89. Oh, no. That's not the one I'm looking for. Where's the one that shows the future years like 24 25 26? I think that's in the second. There it
020is on page six. Oh, I have a question. Yeah. Are you looking at it? Yeah. So, how do you go from, you know, let's just take 25 26, kindergarteners with 398 first graders. And then the next year we had 223 kindergarters in 2526, but in 26 27 we have 401 first graders. So, where do they come from? Do some kids not go to kindergarten? It can be um kindergarten or it's also based on birth rates. So if if I go into the details of this. Well, I'm just wondering how if there's only 223 kindergarteners in 25 26. Oh, I see what you're saying. There going to be 401 first graders in 2627. Got it. Because we almost doubled it. Yep. No, I see what you're saying. I mean, I'm sure you're right. I'm just curious.
021Where do we find the extra 180 kids? Good question. So, it it it takes into account the transition when it does the formulas. So, I don't know if typically we see that kind of because it it is consistently doing that into first grade. Well, my daughter didn't go to kindergarten, so maybe that's a common thing. I I didn't think it was. I thought it was crazy, but I'm not aware of that, but I see what you're saying. I mean, I hope Right. Sorry. So, take handicap kindergarten and regular kindergarten, add them together. Oh, that's what that is. Yes. And they don't do that anymore. This is um I think this year What is handicapped kindergarten? It's just another category that we have. It's it's kindergarten. Physically everything like what does that mean? I'm not sure
022how they get categorized into that category, but they're they're both kindergarten. Everyday kindergarten really. Those would be students that are tested as they're coming in to kindergarten. They're behind. They're assessed. Well, yeah. They could be, you know, they could be intellectual or could be physical or social, emotional. Wow. It's a high percentage. Yeah. Like I said, that no longer I think starting this year, that's no longer a category. So, we'll have one column and it will be less confusing. Well, at least that's it makes more sense now. It's like I kind of get it now. Yes. You had me go you had me stumped there for a second. Not for long. Well, I can make a motion. All right. We've got a motion to approve the first revision of the 2425 budget. Is there a
023second? I'll second. Got a motion and a second. Any further discussion or questions? If not, all those in favor respond by saying I. I I oppose the same. Motion passes. Thank you. Thank you, Marcy. Uh we do have an additional thing on the agenda here to approve the computer lease agreement and it looks like you're you're on the hook for that as well. Yes, I am. Okay. So, we have linked in a document um and it is a lease agreement for 725 devices. We need to update our devices and Ryan is online if there's any questions on that side of it that I can't answer. Um, but the leases for a 4-year lease for 224,423 a year, uh, when I threw it into the I'm looking at DJ because I feel like he's going to
024ask this. Uh, when I threw it into the lease calculator, it's about 4 and a half%. So, we did receive quotes from two other vendors. This company was the lowest for our payments. And uh we did we were going to be purchasing them through CDWG which is a source wall contract. So are there any other details that you guys need to know? So we did send this over to legal and there is a rush on this as far as we need to get these devices ordered. uh they are on US land I believe right now and we received feedback from our attorney that there are some suggestions they would like us to change have changed but they're not deal breakers according to the attorney so they're worried about the tariffs yes you got it um
025so my ask they get paid to worry about something yeah my ask would be that you guys make a motion to approve it uh pending legal review and authorize administration to um execute it, but there may be some tweaks on this. We don't we haven't heard back from Providence on what they would or would not accept on those s suggested changes. Like what's an example of a change? Sure. Um so for example, instead of upon notice and coordination with LEI at all reasonable times during business hours, just to strike that. So, they're little things that lessen our liability, but they're not deal breakers is what we were told. These are Chromebooks, right? Yep. Or Acers, sorry. Aser Chrome. They're for the staff. These are not for kids. Yeah, they're for staff. These are staff computers.
026These are for the teachers, office people, principals, Peter, Kelly, RC. How many month how many of them were ordered? 700 725. And did we check on buying them? So this lease payment comes out of capital, the one that is negative. So if we bought them, we'd really be on the hole then. So that's why we lease just because we're just figuring out what buckets the money comes out of. I mean, it's a three-year lease and there's a dollar buyout at the end. Oh, okay. So it's not the it's just like buying them. And how how much is this going to cost us? Uh it was 800 grand. Yeah. 890 over 8,000 over four years. Is it four year or three year? Four year. So about 200 grand a year. Mhm. And our current lease payment
027actually is around 300 something. So this is this is a better deal than what we have right now. So we're currently leasing. Yep. And that'll be done here at the end of this year. Okay. Okay. And all those devices will be returned and then this would get us our new devices. Okay. I'm going to ask the same question I always ask. Why is source one? So if we didn't use the source well contract with CDW, we would have to go out for bid. So what which is more time and this this is Don't you think that somebody's making some money on this deal? Well, I I I don't know. I mean, I'd love to hire out somebody to bid all my stuff out, too, but we just can't really afford that because there's someone that's
028have to make dough on the deal. Well, one of the things though about these regional units is that they do have more buying power because of the volume of purchases they're going to make. Just like paper, you know, you can go out and do your own paper bid, but in the end, you're going to pay more no matter what because we don't have enough volume to drive price down. So whether it's Sourceville here or Southeast region in Rochester or wherever, they can contract purchasing just because the volume that drives the price down. Well, that's fine and I agree with that and I don't have a problem with it, but I'd like to see some outside stuff and I don't ever get to every single time. It's the same thing. We contracted with Sourcewell. Source tell
029us what the best deal is. I'm not I didn't hire Sourceville, right? You did. Okay. My job isn't for Sourcewell. My job is the school district and I feel an obligation that somebody should be looking outside. The same thing with the paper peter. You know what? How do we know because source told us that they get the best deal? We don't know. The amount of money you guys spend on printers is enough to make you throw up, right? As I saw it. So, we must go through a lot of paper, right? Was it $18,000 a month in toner? I It's ridiculous. So, I mean, I'm thinking that maybe we should look it around a little bit. I just like to see it. If I saw it five times in a row, I might believe it.
030But right now, at this point, there's a lot of doubt in the world. And people are asking me, and I never see anywhere where we went out and got our own deal. Where's Marco? Where's so and so? There's other people that do this kind of work. And I think that, you know, today, fine, let's go. But the bottom line is is that I've brought it up before, doesn't seem nobody really cares what I think, but I'm going to start to be a problem about it if we don't start to see some outside bids on our own. if you need help with it, I'll come volunteer my time. I've done lots of this work. So, the devices themselves is going through the source contract, but the the three quotes that we got for the lease, one
031of them was a source contract, and we are not going that route. I don't know what that means, but my point is is that we that means we're doing our homework. Source would be the the bank then. So, source we lease them from source. I you didn't take the source well deal. Yes. So, one of the companies was NCL Government Capital, and that is a Sourcewell contract, and they were not the least. So, we went with the Providence, which is not a Sourcewell contract. That's fine, but I'd like to see us get some outside some outside looks because it's no different than in my business. I wouldn't let them go all buy from the same vendor. I don't care what that vendor says. I don't trust everybody. No, I agree. And like Marcy said, the
032the financing is a different contract than the actual um purchase. And so both of those things are bid separately. And I know there are several awarded contracts that do Acer books and CDWG just happens to be one of those vendors. But they like we might have had 15 or 25 um businesses respond or manufacturers respond to that. And probably there were three or four that were awarded. CDWG being one of them because of the value, because of their pricing, because of the the quality of service and the actual um offering that they had. So that's there there are other options within the sourceable contract and they picked CDWG. Yeah, I'm fine with CDWG and I'm fine with the Acer computers. I don't care. But I not happy with this. It's too much work for us
033to figure it out. I have to I have to be careful how I say this, but uh I know a graduate of Brandon High School that uh can uh offer uh us contracts as well. Whatever. It's fine. So, we going to make a motion to approve it. Somebody needs to I'll make a motion the computer lease agreement. Yeah. I mean, I'll second it. Okay. Yeah. I mean, we don't have time to do it now. Well, it sounds like we're saving money, too, based upon the old one. Yes. All right. We've got a motion by Director Breen and a second by Dr. Dondelinger. Any further discussion? If not, we'll put it to a vote. All those in favor, please signify by saying I. I. I. Oppose. The same. All right. Motion passes. Thank you. Thank you.
034Thanks, Mars. That's it for our agenda. I'll entertain a motion to adjurnn. So moved. Mhm. Second. All right. We've got a motion and a second. I'm assuming no discussion. All those in favor, please signify by saying I. I. I. All those opposed? Fine. Motion carries. And