001uh with some big jumps. You see 1819 went up 18 million, 2021 went up 40 million 13.6%. Um and then you see some of the 2021 2022 and went up uh 11.6 6 million essentially sens as you look at this. This is a key slide that I do think uh from a public standpoint is going to be important to us in the future and especially Senate Bill 3 is and I would encourage anyone who's watching this uh to go to the Jefferson County Property Viewer on the assessor's website um and look on there. where you can actually click on where your house is and you can see past years how much your house was worth uh and how it changes uh each year. In 2021 it went up 11.6 million. Uh my own personal home
002went up about $20,000 assessed value. Well, in it has the exact same assessed value. Why that becomes important is Senate Bill 3, which uh tentatively right now is supposed to go on the ballot, will lock in the assessed valuation of my home at that 2024 number, which is ultimately the 2021 number because it didn't move since 2021 in Jefferson County. And in 2023, inflation is very high in a lot of around the state of Missouri. U sets ofations went up, but they did not in Jackson County. And so that issue is going to have a long-term drag, not just on Hillsboro School District, but in any political subdivision uh in in Jefferson County. Um, and I kind of referenced that our new construction totals. 2019 was a big year. I jumped $5 million. Actually, when
003I met with Mr. Lynhorse, I was trying to reflect on in 2019. It was that was a brickyard finish up some Hawking Point if there's any significant uh newer buildings. And so, but as you can see, it's maintained kind of that between one and a half to two and a half million. So that there uh I put in there why it matters for hills three the short and long term is it sets our tax base. So that is our assess evaluation as certified and included the actual summary uh is in the document I just move on down to the next. >> Okay next item is our tax rate ceiling. Our tax rate ceiling is then determined uh by what is known as the Hancock measure that is tied to the assessed valuation and it impacts
004this is where everything is working together. Assessed valuation is done uh by the assessor we get that number. The Hancock amendment which is passed in the early 80s. The intent is to protect the taxpayer against a sudden jump in taxes. You think about the early 80s coming out of the 70s and inflation was so high. The intent of the law uh is good to protect taxes is it's tied to CPI. So we have the assessor does his work this year. Assessments went up a significant amount. But that CPI letter says that uh inflation is 2.9. So the Hancock amendment says a district can't raise the uh has to lower their tax rate to essentially capture the 2.9%. Even though in Jefferson County it's showing that uh growth has been more. That's why when you look
005at some of our numbers, you're like excess valuation, Jeff County went up 120 million, but the net of when that occurred along with that CPI is a huge deal because in a year that it was CPI was six or 7% in Jefferson County, our growth was 1%. And so at 2.9, you have a countywide uh growth of 10%. Yes, economically it looks like the paper's in it. So while that shows a 40% growth, really school districts, we're not seeing that growth for any of the tax entities. So all this said and done with the Hancock amendment rolled in. We have to roll approximately 6 cents back on our operating levy and we will do that. Over since 2018, the tax rate ceiling for the district has declined on our operating funds from $361 to $3.34,
006a drop of 27 over seven years. For perspective and for mental math, each a dime this year is $350,000. So, at 27 cents, um, we're creeping up on a million dollar difference that we're not able to receive in revenue. So, I I share some of that information as well. So, the next item, the levies required um when we set the tax rate is we'll be setting the operating levy. The operating levy as we talked about uh earlier is uh operating under that is fund one which we're going to have $34 3.0438 fulfills the minimum levy requirement has to be above $2.75. our debt service, that's our general obligation uh debt uh or fund three that will be set at 33 cents uh 30.3339 [Music] uh this year. And our capital projects, we're going to put
00730 cents in there to meet our payment obligations on that. Our debt service levy, we could have left and charged more uh to the taxpayers this year. Um I had a visit with Miss White is if we had charged a little bit more u and the tax rate would have stayed the same or actually a little bit, we would have paid off all of our debt in its entirety this uh school year. Um but we felt like it was important especially there's some economic times right now with that is we're we're leaving it to uh pay off this reset. How much will we have left? I want to say 150,000 of the 200 >> I don't have that number. >> We're under a million though for sure. >> Yes. It's it's going to be like
008under a,750,000 that'll be dragging kind of left there, but ultimately our debt service we anticipate running after next year. Taxes will be going down again next September. Um, and then after next year, assuming we not have any more debt. >> Any questions on that? um Prop C reduction 2019, we got a Prop C um roll back waiver. So, we don't have to we're not required to roll back our tax rate ceiling. So, when that is all said and done, um the district is proposing uh a reduced total tax rate of 3.677 per $100 assessed valuation. This will mark the fifth consecutive year in sixth year since 2017 that the district has lowered the tax rate without then a subsequent increase during that time. Our tax rate is the lowest tax rate this district has had
009uh I put 30 years but I feel strongly probably more than that. I just can't find the data pre 199. So that's all in paper and such. So uh but a long time I mean previous so and it shows how much we within this document will generate about 14.4 million local. Last year our tax rate was $3.73. So, this is something I want uh to share and encourage any uh person that lives in the community watching this to get this document. This is in Hillsboro. Uh in 2007, our tax rate was $4.589. So, on a $300,000 house, the school taxes were $2,6006. The upcoming year, the taxes on that on a $300,000 home will be $2,96. Uh, and it's went down $519. So, and you can kind of see the difference uh on that. A
010lot of times publicly there people will be like, "Oh, school taxes are going up and all this my school school." And I know I don't have much time in the tax rate here, but I do think it's important to talk about uh I wanted to bring this u within this document uh under the proposed tax rate is open this excuse in 201617. Now this is kind of hard to see is in here. Uh this also shows when I say we have the lowest tax rate in 30 years for Hillsboro, we have the lowest tax rate uh in Jefferson County by a long way. This is 201617. All right. So if you look in here, this is 201617 and there's a comparison. So I'll show this here of where the tax rate was and there's a
011document in there. I literally go each school district in Jefferson County to look at what they've done with their tax rate um since it goes back to 2007 and then each year. And so within this document bouncing around here okay this is a document here which shows Hillsboro but I also have uh included every school district they're aware of this I shared this with them is during that same period of time uh crystal cities has went down etc and so Um, ours, it has every school district's tax rate going back 2007 and 17. But in here, I jumped on this right here, and I think this is important for taxpayers in our community, is I went to the Jefferson County. This is John Edison's taxes on my home. In 2007, the taxes on my home
012were $3,29. That was the total due to the Hillsboro School District and and taxes. That's all. That's fire department. All those that are my tax bill in 2024 was $3,269. Since 2007 to 2024, almost 20 years, my taxes have went up in the community $60. I can tell you that the value of my home has went up much more than that. >> So, but when you think about our tax rate and in the future, we may have to I do believe long term um ask our taxpayers for a tax increase if we want to accomplish certain goals. Uh and we have good funds right now. It's not an emergency, but if we want to achieve uh some of the other things that some maybe some of the other districts have built and such, uh we
013would need to ask for a tax increase. And that there's per example is school district is getting the same amount of money in 2024 from John Isson as they got in 2007. And so I encourage any of our taxpayers uh residents to uh look at these documents. Uh I show a lot of comparisons and really try to break it down into a real world like hey how what does this how does this impact uh me as a citizen because the school finance and all the different uh fund for and all that gets a little bit confusing. So um the proposed tax rate is on this agenda. And again, we will submit this for approval of $3.677 and open session. >> Thank you much. Any questions from the board? This is now the opportunity for anyone
014that's in attendance tonight that would like to address the board with regards to the tax rate specifically. Just a couple minutes here. >> Nice tax rate. >> Sure. >> I just have a comment. I live here in Hillsboro and I have kids that go to Hillsboro. So if we need to raise our tax a little bit to make sure our kids have everything they need, I'm fine with it. >> We're not seeing that this we're actually lower than >> but I and I >> I'll be fine paying more if we needed to as long as it goes towards our kids. I'm okay with it because I think our kids deserve the best education. >> Anyone else to address the board attendance? >> Right. And then I'm going to ask for a motion to adjourn the
015tax range at 659. >> Second. All those in favor motion carries. We'll take just a real quick recess. Be back here in just a couple minutes. call to order here. A motion to call to order here at >> 703. Uh, do I have a motion tonight to approve the agenda as amended? Second. >> All right. Any questions on tonight's agenda? Right. All those in favor of approval. Right. Before we continue, please join us in 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. >> Move directly into tonight's consent agenda. Do I have a motion to approve the items on the consent agenda as they are presented? Any questions on the consent
016agenda tonight? Items related to investments, financials, uh, our attendance report, items of concern. All right. Hearing none, all those in favor of approval agenda items? Opposed? Motion carries. All right, we'll get into some reports tonight. Turn it over to Dr. Isacson for the superintendent report. >> Yes, a brief superintendent report this evening. Just wanted to thank all of those in our district uh that and staff that put together different P and MIA remembrance events over the last few weeks from the football game and ceremony to the visual on Friday. Put some notes in there from Rocky Sikman and Paul Dylan of their gratitude. actually chamber of commerce uh Jack Press spoke to the chamber and spoke again of the school district and it's great as a district which is known on such a wide scale
017for our focus on that it's pretty special want just update the board that I uh visited with uh the labor club first time I've gone over there uh over in Fesus and had the opportunity to speak about the district and the wonderful things that we have going on uh here with our students and some of our focus on the trades and provide real world opportunities and our relationship with Jefferson College. Um so a lot of which they didn't know. So it's very exciting and these are a lot of the trade unions that work on our projects uh and such and so shared with them some of the our upcoming projects and also some of our upcoming tax items and such. uh and then also kind of gave a little school finance overview there. So, uh
018it was a a really good uh evening. I'll probably head back in the next month just to I learned a lot even just locally on that. Um homecoming is next week and so lots of information will be coming on social media related to that and uh many good events visited with Mr. Reed today. Um and the Hillsboro Foundation is just taking off and so it's very exciting there. We have a great group. Um is some events on Thursday will be the Hills first annual Hillsboro Foundation Golf Tournament. Um I believe there's 19 teams there. Maybe they have one more opening and then uh really excited for Friday. If you're an alumni of uh the school district, they're having a tailgate party starting at 300 pm at Brderidge Farm. You'll park at the uh at the
019high school. We're going have a shuttle bus uh taking you over there and uh retired teachers are going to be there and classmates hopefully. Um, I would imagine the retired teachers because they came to the retired teacher event uh and now this past spring and really enjoyed it and uh Larry Johnson and such and so of those graduates uh I would encourage you to come out. I mean they have music, they have BRZ and burgers and chips uh some yard games, cornhole and stuff on the farm. the first annual kind of alumni mixer from 3 up until game time and they'll get you back over uh to the game and we have the parade is at 1:30 so probably immediate after the parade that event so some exciting events and then obviously the last dance
020any questions on superintendent report okay also have some information to share tonight on the upcoming school board candidate received this from the county clerk's office and just wanted to share the candidate filing period um for next April, April 7th. The first day to file for the to be of the school board member is December 9th uh beginning at 8 a.m. and the last day to file is December 30th uh at 5:00 pm. But I would um on the back end of that that is our Christmas break holiday. So office hours u may be a little different during the may be impacted during the Christmas break and so uh the location to sign up uh to serve on the school board if you choose to do that would be at our central office contact. All right
021to the next report which is this month's uh budget through August 2025. as attached to within this agenda item um is our expenditure report through August 31st. Uh revenue, we've received 10% of our revenue, about $4.4 million. Um we've spent $6 million uh which is about 15 and a half% u of that some of that earlier spending which is actually a little bit excuse me, higher than normal. Uh, in part is because remember last spring um we got a jump on some capital projects and we did a little bit more than we uh we typically would do and just got the new van trailer. So, we've kind of frontloaded a lot of our capital projects. So, that's u why you're seeing that amount of spend so early in the year. So that'll definitely flatten back
022out. It's not an over budget thing. It's more of a timing uh budget anyway. So uh just explaining uh there detailing our expenditures for this year uh in addition to the revenue uh as you look at this report in the public uh this will be on the website as well is we put the 2024 and the or fiscal year 25 which would be last school year and 24 so they can compare differences. That also helps us as a school district that something seems wonky from year-over-year uh that we're not expecting. It's just a great check and balance for us. So, everything looks uh fairly normal. Uh revenue down just a little bit uh as we anticipated and so pretty simple report early on in the fiscal year. Any questions on financial report? Next item of
023business is with regards to public comment. Any items of public comment tonight? >> All right. We will then move into uh some new discussion and uh items for action this evening starting with a bill for approval to Jefferson College. Do I have a motion to approve the bill to Jefferson College this month in the amount of $500? >> Second. >> Any questions on this? Hearing none. All those in favor of approval. Any opposed? One abstension. That motion carries. We also have the approval of the Google Plus for Education licenses. Do I have a motion to approve the adoption and purchase of these licenses from CDWG in the amount of $34,782 over a three-year term? >> Any questions on these licenses? none. All those in favor of approve. >> Any opposed? >> I'm sorry. It's a
024yes. Sorry. None. None opposed. >> And no. Okay. >> Sorry. >> Uh unanimous. >> Yes. All those in favor of approval and none opposed. Motion carries. All right. Thank you. >> No. No worries. >> All right. And we have an informational item tonight. A report on Senate Bill 68 from Dr. So over the summer, uh, Dr. Isen updated everybody on the legislative session and what what had passed and what affected school districts. One of those was Senville 68. Uh, so recently, and most of that uh has to do with safety and safety upgrades for the district. Uh, recently myself, Jim Ramsey, our safety coordinator, and Kathy Woodham, our health coordinator, we sat down and dissected um all the requirements. uh have report. We meet almost every one of those requirements such as just having emergency
025oper operations plan in place. Um site assessments which we started last year um and we continue those annually. Um Miss Woodham does a great job with CPR training. We uh train offer two trainings a year to staff plus we require coaches and our bus drivers, but we're going to add a few more people just to make sure we're compliant. Um it doesn't have to be every individual in the school district. they just want a a nice portion um having safety coordinators in place. And so we we meet most of those. There are a couple that we do not meet. Um and they're really minor. One of those is stop the bleed kits. And so Miss Woodham's working on ordering stop the bleed kits. And they're they're really small kits. And so we'll place those in
026every um >> 80s. Yeah. ADS. We'll place those in those boxes. Um and then we'll have to offer training to all of our nurses counselors. Um we'll offer training for those. And then one other one, FEMA incident command response training. Jim has been trained on it, but I have not. And so just have a few people in district train. Um but other than that, um the anti-inter door locks and bullet resistant film we do not have, but that's not necessarily a requirement unless you add new doors or complete a building, a new building project. So um maybe something to look for facility committee wise in for the future, but right now that's not a a requirement on our current facilities. But like I said, happy to report. We we cover most of these with the
027exception of just a couple smiles. >> Any questions? >> I thought we going back to the 3M bullet. >> Oh, there. >> Other questions? >> Do we have an itemized list of of where the where that film is already? >> I do not, but I'm sure we do. >> Yeah, >> I don't know. Have that in whatever the SOPs are. I'm sure that's part when we do the site assessments. I'm sure that's part of the site assessments too. What doors have that what what are safety and not that that was a part of the that bond issue >> the front I don't know that it was every one got pretty significant other questions. All right, appreciate the report. >> Our next item is the approval of the John Deere lease with Sid Stricker Novi. Do
028I have a motion to to enter into a 12-month lease agreement with Sid Stricker for the rental of three utility vehicles? There are two John Deere Gators and one John Deere Gator Model S4 total cost of 6,48. >> Any questions on this? >> Hear none. All those in favor of approval? Opposed? Motion carries. Right on to the approval of theou with CI solutions. Do I have a motion to enter into a three-year managed services agreement with CI Solutions in the amount of $4,030 for ID card production hardware software support and implementation? >> Any questions on contract? >> I don't mind expanding on. We recently rolled out the scanning and GPS system for ation department. It's gone really well. We have not turned on the actual uh live updates where parents get live updates. We still
029have some training left to do. Um it's made our uh transportation department, there's still a few things to work through because it's just so new to us and it's just a big undertaking, but it's definitely made us more efficient. Um this is just one more piece to it to where we can print our own cars. We'll we order those in bulk and then we'll be able to print our own cards at the transportation department. So >> is the software or is this implementation putting more labor effort on the drivers themselves? Uh yeah, at the beginning, yes. I mean, handing them out, making sure kids are on them. But as we get used to it, it'll be just part of their routine. Um I actually drove a bus last week twice. And even the for the
030majority, I felt like probably 90% of kids had their cards. And even the students that didn't, the high school kids, of course, you know, it's not cool for them, but they didn't they didn't have theirs. And so it's really easy on the tablet just to go by and swipe and type their name. Now on a busy highway like one is probably not going to stop traffic out on county roads. It was pretty easy for me to log off. >> Yeah, it's it's a little more labor. >> I followed the bus the other morning and they it it does slow them down a little bit, but for the benefit that is going to come about, I think it's going to >> it's new. >> Yeah, it's new implementation. And they warned us. They warned us with
031the amount of kids we have rid our buses and and how big our geographical space is. They warned us that it would take us a few months. >> Other questions? >> Hear no other questions. All those in favor of approval of this none opposed carries. All right, on to a short report regarding the high school HVAC project scope and work presentation. So Aaron, if you don't mind pulling that up, there's a couple of documents. The shorter one one page >> has board of education and the title of the document. >> There's two documents on that. One is the large um that provides all the scope of work for this project and the other one is just a one page. But we have Hannah with us and Daryl from Schneider Electric. Uh I've been here for
032three years now and since I've been here, that's one thing we talked about is the high school HVAC project. Um it's it's uh was built with the building, so it's uh been 25 years now. Ray and our maintenance team and Justin, our HVAC tech, have done a great job maintaining it, but it's just at the end of its course. We're constantly replacing um compressors, replacing heat exchangers, uh the boards, the motherboards, the circuit boards actually run it. Um you can't find them. We're buying them off eBay or buying them just uh wherever we can. So, uh it's just it's 25 years old time. Daryl is an engineer. Senior director of operations operations. Um uh they're they're going to go over the scope of work and then uh we'll go from there. >> Yeah, thank you.
033Yeah, I appreciate it, Dr. Lur. Good to see everyone. I'm excited to be here and talk a little more about the project. I know I've been at a few facility committee meetings and updated the board of education a few months ago. So today we have the final review of the presentation to share with you and then also here to answer any questions that you might have. Everybody knows me, but I'll let Daryl give a little more of an introduction on who he is and then we'll get into the scope of work. >> I'm the the senior director of operations for the region. My responsibilities are the development engineers, project development, the energy engineers, the implementation of all the construction management and then on the back side I'm still responsible for all the guarantee the warranty
034everything on the back side. So everything but sales I'm responsible for. >> He's good at sales too, but yeah. So I'll go ahead and start with the financial summary actually and then we'll go into a little more of a high level overview of that scope of work. So the total project value is right around $ 8.7 million. This is a guaranteed maximum price. So the district will not be seeing any change orders here. We feel really confident in our design, but if we get into the project and find that we might have missed something, then that risk falls on Schneider Electric. So um the district could feel confident in the fact that there won't be any increase in cost to you and that project value is also inclusive of all of the auditing, the engineering,
035the construction management, the equipment, all the subcontractors that'll be working on the project as well as the support and warranty after the fact. Um so looking at that total project value, the district has a couple different scenarios that I think you'll be considering for financing after this presentation. So, one of those opportunities was a low interest loan through the DNR. They're offering a two and a half% interest rate for 10 years for about $1.5 million. So, two and a half points lower than what we're seeing in the market right now. And from there, the district can fund the rest of the value through a couple other funding sources, whether that be district capital or lease purchase agreement. Um, if you remember from the primary school LED lighting, the districtwide LED lighting from a couple of
036years ago, the district received about $100,000 check from Amron for that rebate post construction. So, we're estimating about $60,000 of a utility rebate for this project, which would be presented to the district at a board meeting after construction is complete and the project is finalized. We're only looking at the high school for this specific project, but looking at replacing all of that equipment would result in about a 10% reduction in utility cost at the high school alone. So, it's about $20,000 every year, not including the operational savings from replacing the compressors and having people come out for emergency repairs and replacements. Any questions about the financial review? We'll probably get more into that here next. So if you could scroll down just to a little bit there, Mr. Moore. Thank you. Okay. So before Daryl
037gets more into the technical solution. Um when we were auditing the facilities in 2020 ahead of the LED lighting and HVAC project at the primary school, we identified and Mr. Bus and his team had shared that the high school equipment was 20 years old at that time. So now here we are 5 years later, the equipment is more than 25 years old. And the district and Mr. Best and his team have done a great job extending that equipment past its useful life. You typically see it last 15 to 20 years. So, I think the fact that you've got 25 shows that it's being taken care of and and maintained as best as possible, but it's really getting to the point now where it's difficult to find parts and there are a lot of emergency repairs
038and replacements that are needed and they're just becoming more and more difficult to maintain. So our solution would address the entirety of the equipment in the high school from both an equipment standpoint as well as the building automation system which would then match the rest of the district system as well. So Darl, you can share a little more detail. >> So um it's a full comprehensive mechanical system for the full high school. Um the way we approach this is around comfort and energy at the same time. So uh there's 72 existing water sourcing pumps. We're actually 73. There's a one room I think it's 114 that's you guys are split. So we're dividing that off into two areas. New hydronic boiler and all the equipment that comes with that as well. The fluid cooler so
039you're getting new pumps. Um hot heaters, air separators, all that comes with it. Um the 19 rooftops um that conductor heaters. So it is a full comprehensive system for the full high school that we'll be replacing. Um the people out there will be you know fully commissioning this operational system as well validating commissioning um they are you need to be certified certified for all that on the oversight and everything as we go through so when we're done with this system it will operate as per design as we're design our engineers and everything so one of the things we go through this and engineer system um is we do constructibility reviews from the very beginning so as we're designing and we want to implement a system construct a system from the very beginning. We know exactly
040how it needs to be installed. Um if there's any risks on any kind of you know maintaining equipment or anything like that, we do as well from the very beginning. So we want you to have 25 plus years on this equipment going forward as well. So the way you do that is by having the installation correct from the very beginning and operating correctly from day one. So that's that's where we start on this kind of stuff. We end up is just making sure that this is a operating system everything is working greatly and then we're building on existing colors to the system as well. So the existing system will stay we will be adding you know depending on the situation new controllers or backnet into the other system as well as as we implement this
041project. Thank you, Darl. And just from a timeline perspective, if the district were to approve the construction contract this evening, then our team will mobilize on getting equipment ordered and solidifying everything with the timeline of summer 2026 installation. >> How how long does it take to install this >> um system like this? Um our plan is to have it operational before school starts next. So, it would be a summer it would be a summer installation for us to install. Yes. >> What what interference would it be with the classes >> because obviously it's going to start before summer. >> Um the way we um build a schedule out for this um the classrooms during school we will not interfere with what we'll do is we'll look at different timelines throughout the year that we can
042come in and do some pre-work. Um what we'll do is any prefab work off site things like that be able to do and then when summer break comes in then we would be doing the major bulk of the installation at that point in time. We do at times depending on the situation work nights weekends things like that. Um, we do not want to interrupt the school. >> Questions. >> Does this impact the tab grant work that's going to also I mean it be kind of happening along the same time frame just kind of popped in my mind. It'll be No, >> we typically do at least a two look ahead construction meetings once we get into construction. So, one of the purposes of that meeting is to hear from the district other projects that are
043going on, schedules we need to work around, things that we need to be aware of and if there are other partners working, you know, within the same facility, then just having open communication with everybody. >> We'll do a pre-construction meeting, go through our full schedule, make sure that our schedule doesn't interfere with anything it said agreement. Now, we do know that there's going to be test, you know, that's that's construction. So, we do work around your schedule and stuff. You guys have something that comes up and says, "Hey, look, we have an advant forgot about can you, you know, give us this area?" Then we work with you to get those areas and stuff like that. >> Visiting with Miss Hilderbrand, we've already discussed the summer school arrangements and things we've talked about with Miss
044Smith about the kids theater. they reach out to Jefferson College because it is switch flipping that and potentially for some of the athletics is uh some of the offseason weightlifting is maybe utilizing the junior highway looking down because it is a type system so as you're installing things like that you have to isolate things like that the biggest thing on that would when you start replacing you know the equipment for that you know the boilers and the food we're expecting the whole system down at that point in time but we work with you on that schedule when when are we going to do that installation how long rooftops other pieces of equipment that are you know separated and you know they can still operate until we do come in places like the at the map
045the red side is obviously the educational side that's where the 72 are and then the gym and the other side that's the most of your question. All right, then let's move on to the approval of thisou with Schneider Electric. Do I have a motion to approve the energy services contract with Schneider Electric for the amount of 8,739,846 to complete that full turnkey HVAC project at the high school? >> Second. >> Any other questions, concerns, or comments on the project? Hearing none. All those in favor of approval? None opposed. Thank you. Motion carries. I have another presentation regarding the heating air conditioning system at the high school and that's the financial plan and options with regards to finance. Since we have an MOU, we got to figure out how to pay for it. Um, Mr. Moore,
046if you could open up uh the presentation there is >> how we're going to pay for it. Um, as was referenced, a couple different options uh that we looked at. We're going to utilize the DNR um loan for the 2.5% interest rate. Um the item with that loan is it has to be paid back in the uh first 10 years. This is actually on theformational finance portion like this. >> Um so that's a 10year term. Uh and that'll become important for the district as we kind of go through these items. So that then we started looking at the remaining balance is we looked at several different options. Uh as visiting with Miss White looking at our capital reserves balance because even with this project we are still going to have different needs and repairs and
047things that we need to maintain. we're going to have over the next several years uh at times a vehicle may need to be prepared etc. And so and looking at uh the paving projects, the roofing projects, we know that we've already set the $400,000 aside for the sidewalk um project as well as some of these other uh long-term ongoing repairs of items that we already have. So that like from a longterm standpoint is the football field that turf since we already have turf we now have to maintain uh that fields put in 2018 and so we have to prepare for those type of items. And so if you on this Mr. more. If you click on this item here, the financial, and then scroll up to I'm looking at this. Perfect. So, what this diagram
048is is in that in the board packet below that, uh, if you're at home and you want to click on a full PDF, what we looked at, we asked, we got two, uh, bids. Uh, one was from Bank of America and the other was locally at First State Community Bank. I requested uh for them to provide a quote. If they'd be interested, we bank with them and they provided a quote. Their interest rate was point and a half% over the Bank of America. So, we've been our recommendation is a Bank of the Bank of America loan. Um then we looked at the initial term as when we started was 15 years. Uh we asked for a 20-year note as well. Um just to explore what uh that did from an interest standpoint and cash flow.
049these funds, this $8 million ultimately is going to be coming from our capital account and the uh not a debt service. We're paying off our debt service. We want to have a general obligation. So this is coming out our our operating funds, our capital account of which over the last couple years we put 30 cents in um which generates uh for each dime as I said in that meeting each dime this year will generate about 350,000 and change 354 actually I have it up here $354,000 for each dime on our tax. That's a revenue that it will uh create. So this is important for the district long term and I've had this and put this uh together. These are current things as we pay off all of our general obligation debt. Our whole house currently
050is at 2.9 2.19%. Um we still have about I can't count to years from now. Uh Brower Ridge is at 2 uh 95%. We have four years and that'll be paid off. That's about $69,000 a year is the payment on that. So very close to paying that off. We have a copy lease um that we're right at 48,000. Our previous energy financing uh that we had done is a 1.97% interest rate. So you can see how much time 3% difference since our last project. Um, and so we have 1.4 million left on that, which is about $114 uh,000. We don't I didn't include for the purpose of our calculations any of our energy savings. We will have some we will have that $60,000 check and all that. for the purpose of looking at establishing costs,
051what the board is going to have to commit to, the district is going to have to commit to did not include that. Those are just uh the extras. So, as we get to this is what we currently have. We're going to be adding these loans here. So, we have the DNR loan in 262.7. The first payment you do at $94,000. That's a semianual loan as we go through and ask for approval on that. It'll be $94,000 I want to say in February and then in August. So, uh each of that so 188,000 then we talked at length uh out of our capital reserves and uh Miss White uh refigured with some of that we expect to end this year at 2.6 6 million sitting up here. Be accurate. Excuse me. 2.2 million. I'm glad I
052walked up my $400,000. It's a lot of money. So, we expect to be at $2.2 uh million in capital reserve balances. But mind you, we already have some things that we obligated that for. You have the curb, you have the sidewalk and lay on hall project. So factoring all of that in um does that also include the money down >> and with this because we started the year 5.2 million in capital reserves. Our recommendation tonight is plan we're not doing it tonight with our loan is to put $2.5 million down on this project. We looked at putting $2 million down. What was the difference? and uh it's in that packet and we really truly compared uh the difference in savings and actually I have it at the bottom here. So I'll touch on that by
053putting $2.5 million million down now versus only two. So, we're keeping that 500,000, you know, as a rainy day fund. That would over the life of the loan will cost an additional $176,000. Putting the $500,000 down now, we save $176,000. One of the reasons um we believe that it's it's good to put it now is it's like we talked a lot about this even like in our own homes, right? Our HVAC is like the thing we all have that there's always wants and needs. Our HVAC is a need just like in our own home that it's been 25 years. Some will ask because everybody's got wants like, well, why are you doing that now? Why did you do that before? Is I actually took a picture of my own coming to work. I've been thinking
054about that a lot. I told talk to Luda and Melissa because I have a small unit for upstairs and they vacated out last year, but on there I have a picture of a side of my house, a new unit, an old I never replaced both because it wasn't broke. So that's why we didn't replace the high school 10 years ago. It wasn't broke. Right. And so now as those things we do have to address it and that goes into our plan, but putting the $500,000 now is the right fiduciary use of those funds our taxpayers and that's our obligation. Uh as we talk about our tax rate is the 20-year rate as well as that there wasn't enough squeeze or making it worth it. It would actually cost $700,000 more to do the extra five
055years. We even looked at debt stacking, moving 188 over onto there because in the planning to pay it off 15, but it just it cost more money and interest and wasn't enough savings on an annual basis. So what this is here and this will be important for the board is to make determination now but also looking at the future down here is the comparison of the $2.5 million down net cost. Um this is a spreadsheet that's behind this. So I pulled this down because this is also putting an additional $500,000. So make that total um true cost right million by the time we pay all the loan payments. Now so this is the total annual loan payments. So like from a home perspective if you buy a car 400 bucks you got to set that
056aside or your house payment is that much aside. So, these are all those different things. Next or this current year, we have $277,000 in obligations. Next year, that's going to go up to $577,000 that we have to make in payments. When we set the tax rate tonight, we're going to set it for 30 cents in capital. We've done that for several years. Currently this year when you see uh this at 277 we have to use 8 cents to make our payments our car payments our house payment to make all of the the farm payment etc. 8 cents out of that 30 is what is being used, which leaves us 22 cents uh to then use, which equals 785,000 to apply to doing the different projects, planning for the concrete playground. Uh and one of the
057things too, we're going to talk about it tonight. I want to still I don't know if Dr. was going to address as we talk about the culinary kitchen >> is Mr. Reed and I were putting together. Do you have the final grant number you added there? >> Uh I put it's over $700,000 about $800,000 >> $800,000 that the district has received in grants since 2020 of free money which is awesome. That's like a round of applause for Mr. Re, right? But one of those things on these grants and this is important for the district going forward. The culinary kitchen like the district has to put out money and then we get a bunch of money. We get almost 200,000. The greenhouse we have to put out some money but then we get a bunch of
058money. We can't even apply for those grants if we're not willing to put out some of that money which kind of sinks. You can't ask for the free money. So that's as We're planning these things. It's just kind of the rail. So this why I say that this year we have $785,000 and we're getting a grant for culinary kitchen and we feel good like put it down. Next year the available drop to 288,000 based on this year's assess valuations etc. So this is what it's going to be and as you can see uh year 23 uh 2036 uh the payment goes down. You can see that's a big year over super tense. I'm really excited is a lot of stuff drops off. Um and so then it bumps up to 18 cents then uh for
059those type of items. So that's where I I talked about the tax rate here. That's a long time to to wait 10 11 more years for some of the things that we need uh and would like to continue to improve our school district. So this here what that is is how much of our capital on our tax rate we'll have left over after we make the payments and I'll put a little narrative with that for my historical purpose trying to explain that. So, our recommendation uh after going through all this, looking at the 20 year, putting the 2% down or excuse me, $2 million down at 2.5, final recommendation is you do the DNR grant to take the lowest interest rate, which is a great interest rate in this current market, which was reaffirmed by
060by getting the other quote, putting the $2.5 million down that we have now, which will save taxpayers $176,000. uh over that term and u we budgeted for it and have a plan for it district can afford it but I also want to be clear like it's um we've talked many meetings in the facility different things come up like hey we need to replace our baseball field we can't the district cannot afford to replace the baseball field without ultimately will be a tax increase to our operating we have the lowest tax rate in in Jeff County by a long shot and we're going to be reducing our tax rate again tonight for the fifth year in a row and we've done a lot of good things but truly the district is at a point as some
061of the general public and parents when they look like other districts have different things um they're like well how they get that is ultimately they're paying more tax that's the black and white of it they pay for what they're they pay more money in their taxes. And so that's uh if we want to move beyond that because we have to take care of our needs. This is how that budget works out. I just wanted to run that overview in depth. And if people have questions about it, the public uh board has any questions on that. You'll be voting on those two items. really wanted to give a deep overview because it's and even have it kind of on record as uh the board 10 years ago. Why did they it's important to have that history
062of why those decisions were recommended? >> Appreciate that insight. Any questions on All right. So, let's talk financing. Our next item of business tonight is the approval of theou with regards to this DNR energy loan program. So, do I have a motion for the approval of the loan agreement and those documents with the department Missouri Department of Natural Resources in the principal amount of 1,645,223. This is at that 2.5% interest rates. uh 1% administrative fee for the purposes of the uh energy conservation measures that are part of this. >> Any other questions specifically with regards to the grants? >> Just to clear up why it's at $1.6 6 million is because over that lifetime of this this project that would be potential savings of this project whether that's energy maintenance and so you had to
063you had to submit a lot of paperwork and so you whatever that come back that energy savings come back over the life of the project and so that's how they calculated other questions hearing none all those in favor of approval opposed. Motion carries. All right. The second half of the uh financing here, the approval of theou with Bank of America on a 15-year term. Do I have a motion for the approval of the proposed 15-year master tax exempt lease purchase agreement with Bank of America for the Hback? >> Can we also add to that with putting $2.5 million down that gives us the direction to >> so specifically memorialized in the Yeah, with with the specifics of $2.5 million >> down. Any questions on this? >> All right, hearing none. All those in favor of
064approval. Motion carries. All right. Then on to the acknowledgement of the commencement date for this project with Schneider Electric. I have a motion to approve approve the acknowledgement and agreement with Schneider Electric and authorize the board president and the superintendent or their design to execute the documents necessary on behalf of the district. >> Any questions of that process? >> This we we've approved the the scope of work and the the project. We've approved the loan amounts and so this just kind of buttons everything up. We both agreed that this starts the mobilization. Any questions? Hearing none. All those in favor of approval tonight. Motion carries. All right. On to the approval bids for the high school culinary classroom. Motion to approve the bid from Brockville Construction in the amount of $291,900 for the culinary and
065fax room renovation at the high school. So, a couple things to note here. Um, we received right at 190,000 191 under 192,000. I don't have in front of me. Um, >> 191 is from the grants, the similar grant enhancement grant that Essie puts out for that we did build greenhouse with. So, um, we're receiving quite a bit of funds there, but I would like to note that this is strictly for the the remodel, the demolition, and the construction, the electrical. There's a lot of, of course, the larger appliances going in. This is not for the ovens and hoods. We'll have to go out and close for those. It won't be a daily just threshold threshold, but uh, so that will be additional cost. We'll have those >> localization on this project. have in the within
066the school. >> Yeah. So, the timeline of this project, we there's two classrooms upstairs right below the office. I can't remember what room 2011 200 I think. Um the first one is an empty was health and just kind of a spare room. Uh that one's completely empty. They're going to come in build the culinary kitchen in that room. Uh so you have a full-blown culinary uh professional kitchen and then so that class can kind of move over and at least have some classroom. And they also use a classroom out of art hallway as well for a scary classroom for for facts. And then uh that should be completed January 6th. And then once January 6 is finished and that classroom is finished, our maintenance team's going to go in, tear the cabinets off and do
067the demolition for the other classroom. And then they'll start the fax classroom um and remodeling the fax classroom and it'll be just a standard kind of kitchenet labs section. So, uh they'll a lot of coordination. Um some of it will be after the high school office. We'll have to move the high school office out common or somewhere for a short time just because and I'm talking days here and there just because they'll have to be underneath running electric. Yeah. So, expect to be completed I believe April April 7th. >> Questions on this project? So is the is the foods lab is that going to be all scale and whatever is going to be more like >> the culinary lab is is all professional grade and then the other one will be more of like I
068said resial lab >> be six different six different station I don't know if you I I encourage you to go by and look at it if you're on campus anytime a picture Other thoughts comments. >> Okay, hearing none. All those in favor of approval tonight. >> No opposed. Motion carries. All right. Last item of business tonight is to set the tax rate for 24 I'm sorry 2025 2026. Do I have a motion to approve the propo proposed 2526 tax rate? 3.677 for $100 of assessed. Any other questions on the tax rate presentations? Hearing none. All those in favor of approval of the tax rate. Motion carries. All right. Last item of business tonight is uh important dates. The calendar itself annual conference is coming up towards the end of October. That overlap with our regular
069open meeting. Um I am typically the MSBA delegate but not so that she sign >> questions comments items related to calendar or that brings us to the end of business. Do I have a motion to adjourn tonight's meeting at 7:54? >> Second. >> All right. All those in favor