001funding that we previous previously got that we are no longer getting but we continue to offer preschool services. So those are going to be the the primary driving factors as to why you see the tax asking going up compared to the previous year about 800,000. >> I guess why aren't we seeing that the numbers as opposed to just a broad this is like why aren't we getting more detail? It feels like as a board, at least for me, um, and the budgeting I've done at businesses, they're often times 20 to 40 pages of information looking at, okay, here's what's making that up. Here is what last year's budget was. Here's actual compared to last year's budget. Here's what I'm proposing as an increase. Here's why I'm proposing that increase. Um, and this level of detail,
002at least from my perspective, isn't helpful in making good decisions. Okay. >> With tax. >> Yeah. Which is a fair statement. It's not something that has been requested in the past. Um, I would say this is the information that I've provided in past years when it came to the budget. And I can definitely go further into detail for that purpose. I don't have it at my fingertips right now, but uh that's is interested in. I think I think one consideration would be to uh reestablish a finance committee if that's the direction the board wants to go. Um it was a committee that was dissolved previously and then we can look at it on a monthly basis in a separate committee meeting if if that is where the board needs to be. Uh I I am
003willing to fill whatever obligations or questions the board have. Um, >> like I said, this is what I provided in past years. >> Yeah. And and this is kind of what I was talking about last year at the same time. It seems like we get to this point of the year and we're just given numbers that we need to approve. But that's kind of why I pushed for the for the whole budgeting process, you know, so we have several months ahead of this where we're kind of looking at the numbers that make up the the 8%. So I don't think we need a finance committee. I just think I'd like to numbers two months ago and a month ago and two weeks ago before we get to this hearing so that we know why there's
004>> and then are we are we taking in consideration the health insurance part of this because obviously I think is it you get that renewal in January right >> that that renewal comes out in November >> November so have they given you any >> No >> so we don't know if it's 5% 7% >> no but it is for the next school year so we have what the insurance numbers and salary >> they're released in November. We don't actually see the rates change till the next school year. >> Correct. >> When that when that November, November, >> September >> and market data is that health insurance rates are going to skyrocket. That's the other thing that worries me a little bit. I mean, we just spent $40 million on a a new project. We know
005our interest rate is going to go up >> pretty significantly, right? We got in right before rates started to rise. Um, we know all costs are going up. It feels like we should be looking where we can cut. There's the the state has what about 200 million projected revenue shortfall. I I just feel like we need to be scrutinizing this budget a lot more carefully. Um, and for me it's just really hard to approve a 7% increase without knowing what why. >> So would you say obviously with the WA we approved 3 >> uh certificated was right around four and then I was uh allowed up to seven I think on class. So we know we know for sure that that we know 4%. Because salary is what 90 90%. >> Uh 80 to 85%
006the salary benefits >> benefits everything >> certificated and classified. >> So that's 85% of our budget is is to salary and non-certified certified. So we know it's 4%. And admin obviously there is probably going to be a little more above that. So we know where some of it goes. I would agree. I think we probably should be more I would say informed or be able to see more of why. So when people ask us why, we can tell them why. >> I agree. >> And and not just talking broad things, 80 to 85%. Well, what's that number? And what portion of that is wages? What portion of that is benefits? I mean, just knowing I I just don't feel educated about our budget or what goes into this or why we are here. >> And
007then the the capex plan, too. I just think we cannot continue to to dump that kind of money into the depreciation fund without seeing here's where we need to spend it. Here's why we need to what we have to be feeding it x number of dollars because this is where our our capital replacement costs need to go over the next five years. Um it just feels like we're taking it on faith and I don't have any reason to distrust you but just as a board member. That probably isn't the best approach for me at least. >> If this is going to happen every September, which it will, what's the cut off date for some of those breakdown increases or decreases? Would you need that by July? We have a target August. >> Start working on
008them and start reviewing them. >> Like you look at appreciation all that. What is I mean just for future reference it be nice to know what are some items you see in our district that are going to be some like big ticket items >> right and that's that capital expenditure plan I had shared one previously I have one that I'm updating currently >> that that helps us look at the depreciation from other things and say okay >> and some years we may need to scale back we may need to be able to I think we've got to have some strategies if some of these you know, shortfalls impact us, which I have to believe that they will. Um, we don't want to have to make draconian cuts, right? We need to have some strategies for
009where we can cut back and still get our kids a tremendous education, still be competitive for our teachers and staff, right? um some of those things from my perspective what I'm used to looking at is for all of those line items not this summarized but for all those line items even on a quarterly basis what's actual compared to budget where are we at the end of the first quarter where are we at the end of the second and the third and then maybe a little more information you know in the fourth quarter before we're prepping for this hearing I think would help at least keep us informed >> right so Okay, going back to that. So, you're looking to have like within the general fund for example, you're looking for each individual line item where
010it is at percentage-wise as opposed to the general fund, special building fund. You want the line item to report on a quarterly basis. >> Compare the budget. If we if you're sitting here and you tell us Brandon that you know this four and a half% is to salaries and all this and our total salaries are this and this and we can see that then that that that correlates to why you asked for this much more money. >> It also helps educate us when we're going into negotiations. >> You know do we need to look at benefit costs and do we need to do something um to keep our costs under control and there is our new strategic plan about budgeting. >> That you know administration projects a shortfall or the district has identified needs which
011will require additional funding or cutbacks that type of thing. This way we're working collaboratively instead of you have to just take the you know just say it is >> right >> that way we can be working with you on it not micromanaging >> yeah we need to do better we don't none of us have time I don't think to micromanage I think we're just looking for information to stay informed and then recommendations so we can understand >> right >> um why you're asking for what you're asking for >> and where we have opportunities to cut instead of grow. >> And don't get us wrong, Brandon, you've done a great job. We're not here to that's not I think what this is what this has brought up is just there is a lot of unknown and
012some uncertainty. We you and I talked about it just in general like where's where's this money going here as Helen that whole thing phases out? Where where are we going to make that up that state fun? We want to be in a position where we're not having to do some things that some other districts might have to go to an override to a vote to maybe riff. It's it's something that we realistically probably should be being more all and I including me be more proactive just make sure we're and I had like I said I feel like you put us in a good spot for that. you you feel confident that we we look good, >> but maybe just break it down even more so everybody gets to see what your plan is. >> Sure.
013>> For the future if that day comes where funding is no longer available from the state, >> right? >> And remind me when do you get the valuations? Because you didn't have those last month, did you? >> Those come so late. >> They're due to me by August 20th. Some years I get them on August 20th. Other years I'll get them on the 13th or 14th. It's crap sheet to >> as far as solidifying a budget. There's no way I can do that before I have valuation. I can project what I think our costs are going to be. I can project I have a calculation that I can do based on county valuations as to how that's going to impact our district specifically within a percent or two. So I can have a rough number
014for valuation but until I get that uh actual from the county uh that budget cannot be finalized which is a really quick turnaround because then submission for pink postcard is due by September 4th >> but we control the cost side right that's just math then at that point >> right >> we can be looking at what should we be spending and then compare that pop that in once the valuations that starts very fast. I think if we are spending time on the budget side and what we're spending money on >> and whether that is where we think we should be spending money, >> um I think we could be prepared >> and when those valuations come out, again, that's just math. >> It is what it is at that point. >> And with that new
015with the new school have a full year in it, right? This is December. So, we'll have an idea what that billing costs us on a monthly basis. >> December opened up in December of December had a winner in it and it had a whole year. So that that's another thing for you. It's going to help you >> determining what we need for that new for the new for the new building, >> right? >> So yeah, I >> I think I I think we all probably agree we probably need to be better. We open, right? >> Ask for comments. >> Anybody like to say anything on the 2526 budget hearing? Now is your chance. Hearing none. Close the hearing. We vote. >> Nothing. >> Moving on to 3.2 202526 tax request hearing. Brandon. >> Okay, we've
016kind of hit on this already. The the tax request just follows the budget. uh with tax requests. You can see on the graph last year compared to this year again in the general fund that increase is due to loss of head start funds, increase in wages, uh increase in building. You're also going to get some special education costs that are increased when we have uh contracts that we hold whether that's with independent school, with PTO, any of that stuff. levy is going back from valuation to tax asking. Um this is the first time since I've been here for sure that the levy has moved in reverse where we've increased the levy um the one penny that we're increasing it. Uh, I think what we're seeing is maybe a little bit of a correction from the
017implementation of increased state aid and the increased special education reimbursement because I think every school district in Saunders County is participating in pink postcard and I think I I I don't want to overblow it but I would say more districts than not are participating this specific year where we've not had to participate in last year. >> Can you remind me what triggers? >> Yeah. So with with the pink postcard, so we have our budget limit, we have our levy limit, we have our tax asking limit. Then the then the pink postcard sets an artificial 2% growth in tax asking, sorry, 2% increase in tax asking plus growth. We saw just over a percent of growth. So to not go to the pink postcard hearing, we could have been just over 3%. That is above the
0183%. So we go to the pink postcard hearing. Uh I had a conversation with a patron today that had tried to talk to the courthouse about pink postcard and could get no answers. So I just explained. He he inferred it to be if we go to a pink postcard hearing, we're doing a levy override. It's not a levy override. It's just the the recent legislation that set the 2% increase and if it's above that then you go to present your information which Brett and I will go next week and public can comment on it >> and for your 3% where am I seeing that on the spreadsheet >> the 3% for the pink postcard >> you are not seeing that specifically it would be here where >> the tax increase is seven. That's above the
0193 whatever that we were allowed. >> Okay. So, it's not the levy number. >> It has nothing to do with the levy. >> It's the property tax. >> Uh the the other thing that I would share is you guys uh authorized up to 6% on the resolution. We utilized 4.5. We did not go the full six. >> I do have a question. So like when we look at the the special hearing that when we look at the 2425 budget >> and the 2526 budget the difference is 666,000 when you look at >> you're on the tax request hearing >> set final tax request. >> Okay. Yeah. When you look at the 2425 property tax request versus 2526, it's a million66. So there's a $400,000 difference there. >> I'm going to ask you to start over.
020I just >> Okay. Can you What do you It's the notice of special carrying final request. Thank you. >> So like the the 2425 budget >> operating budget compared to the 2526. Okay. >> Is an increase of 666,000. >> Okay. >> We look at the tax request 2425 compared to the 2526. It's a million66. >> Correct. >> So there's $400,000 difference. >> Yeah. >> So why are we 400,000 more? >> Most of that is from that Head Start funding that we're not getting this year that we were receiving last year. Did that question? >> Yeah, I guess that's just more than 250,000. I thought we were told it was going to cost, but maybe that was just cost versus what we going to lose. >> There should be some there should be some off. Actually,
021that number probably is different because we do have people paying for the service. >> Correct. So, What is that and what is that intake on that? Because that'll be nice after a year. We will know, >> right? We we'll have a better idea after a year because if you qualify with uh special education or low income, you're not paying for that program. And that number is going to change on a yearly basis. >> And as part of that process that we talked about the budget, maybe one of our goals should be to try to keep it closer to that 3% which is when we don't meet the postcard, right? trying to really manage these cost increases year over year. Um, which I think is why digging into these numbers >> sure >> throughout the year
022might help us to >> to do that. >> And that first our first loan which when is it are you in year three or four? >> We are in year This will be the start of the fourth year in December will be the start of the fourth year. >> Okay. So, so three years past that. So, 29. >> Yes, >> it comes. I'm >> I believe that's the way the math works out. >> I can double check that. >> Yeah. I just have we have We know we have our cost fixed. Other questions? Any questions from the public? At that we'll close the tax request. Thank you. Moving on. Regular business approval of the agenda. So moved. There a second. Second. Questions, amendments, discussion. >> Melissa, >> yes. >> Alex, >> yes. >> 4.1 board
023minutes. There are two sets of board minutes. One for the uh standard August meeting of 2025. The other one for the special meeting due to strategic plan. I move to approve both sets of minutes.