001Okay, good evening. Um, thank you for being here. We'll call the meeting to order at 5:31. Uh, and our very first item is to celebrate some smart kids from White Oak, I believe. Um, I will turn this over to Dr. Windam, I guess, or >> Sure. >> Yes. Um, we are always excited to start our board meetings with celebrating Orioles and highlighting different students from each school. We always look forward to Mrs. Mai being here and bringing some great students from the White Oak Early Learning Center. So, Mrs. Mai. >> Okay, great. Thank you so much for being here. We're so we're always so excited to be able to get in front of you guys and showcase what we do here at the Early Learning Center. So, this year we decided to highlight some of
002our three-year-old classes. So, um, our four friends here, they are in our three-year-old community classes. And so, we have Miss Kayn's class. Miss Kaylin, raise your hand. And from Miss Kaitlin's class, we have Delila. Delila, you want to wave? And Eli back there is in Miss Kayn's class. And then Miss Susan's class, we have Deacon. Deacon, you want to raise your hand? And then we have And then we have Remy. You ready? Remy, you want to raise your hand? Maybe. There's Remy. All right. So, it is Five Senses Week and so they are here to do a little activity with all of you. So, you're going to need something to write with and I'm going to turn it over to Miss Susan that will explain the activity. And when you're all done, you might be
003able to get some chocolate when you're all done. Okay. You want to go hand them a piece of paper? [Music] >> Oh, here you go. You want more? >> Thank you so much. Good job. >> Good job. You're generous. Very nice. >> So, for five senses week, we play a guessing game and we usually Well, five senses. This time I think we only did three just because of time. But so we're focusing on smelling, touching, and um hearing. And they're going to pass a something that you have to guess and write your guess on your piece of paper note they just passed out. >> Um there'll be six objects. So if you want to number them one to six. >> Okay. >> And then the kids will come down and help you guys. Yes. Right.
004Can you do that? >> All right. Ready? >> And then just go ahead and make sure everybody gets one through six. A couple of them are duplicates. All right. Ready? All right, they're all going down to that angle. All right. Yes, you do. Your water [Music] did I did My nose. >> What do you think? >> You use your fingers. >> That's right. And what what are my fingers? >> We were right. >> Did you touch >> I used touch? Can you touch it? >> I'm pretty sure it would be awful. >> It's for a squirrel. And what happens if with this pine cone? It's a >> bag, >> but not a pass. >> I used a secret, didn't I? >> Are you ready for me to take that? >> Let me pass this to
005someone else. >> Somebody else needs to take that down there to that lady. >> It smells like sprinkles. >> It's a toy. What kind of >> Do you know what that is? >> A fire truck. You know what that's called? You might not have had it before. It's rice. It's colored rice. Like you probably won't see rice that you eat with all that different color. >> Oh. Oh, that's it. >> Do you make it? Does it make a sound? >> Go ahead and touch it. What is Can you describe what it feels like? Does it feel wet? >> It's okay. We'll vacuum it. No worries. >> Does it feel hard? Soft? Very hard. >> Have you ever felt something like that before? [Music] >> That's very good. So, if we put Was this on it?
006>> Okay. You know what? Let's see if we can make it really something that we can hear. >> There we go. >> All right. >> Shake. Shake. Shake. Can you do it? You hold it. That's it. >> What is it? >> So, what sense did we use? >> I don't know either. >> Did we use our nose? >> I don't know. >> Our ears hearing, right? >> Do you remember what it was called? >> What was inside? >> Yes. You learned more than >> Do you want to take it and find a new person? >> Yeah. That's so good. I got one. >> I got rice. >> Um, two. >> Rice that color. Yeah, it was pretty. >> You are so smart. >> Okay. >> Here she comes. Take that off. Pretty cool. >> Can
007I see that? What about >> you? >> Are you smart or what? Okay. >> Can you guys come over and play at my house? What day? >> Yes. [Laughter] What's your name? >> Okay. >> Delila. >> Legos. >> I didn't keep track of all this. >> I didn't either. I think I used my What is this one? Vanilla extract on the cotton ball. >> From afar, I was like, is it a dough ball? >> Oh, definitely. >> Smell. Okay. What color? What number is that? >> Four. >> Oh, six was Legos. I thought it was >> um I didn't see the number. Did you get number four? [Music] >> It is strong. I need one. >> Oh, what's this one? >> Lemon or cleaner to me? >> Lemon. >> You do? >> So, we're missing
008one. >> I don't think there's going to be a test. >> I don't think so. [Music] >> Thank you guys. What are what? >> Um, they're drawing on that board. >> Are they? Yeah, they're just making boxes. It looks like >> you do. Okay. Well, I would. >> School boards are boring. Go draw on the board. >> Wow, man. >> That's fun. >> I don't think I knew this when I was three. >> Remy, >> that's a pretty cool teacher doing some fun activities. >> It's chocolate time. >> Oh, it's chocolate time. >> Thank you. You are so cute. Oh, this was one of my favorites, too. >> Thank you. >> Oh, I love it. >> It says, "Nice job." >> Even though I didn't get all six, I did a nice job. >> I'll
009take all the >> Oh, it's a right twitch and a left. >> Am I allowed to have two? Do you think that's okay? >> Well, thank you, Eli. Oh my goodness. >> Wow. >> I got two pieces. >> Oh, they're so cute. >> Is this our mic? Well, boys and girls, that was so fun. And you're our favorite group of all time because we got chocolate. Nobody else ever gave us this. So, the Wide Oak Preschool is gonna learning center is going to be our favorite forever and ever. >> Thank you for coming and telling us about your senses. So smart teachers, how do you do this whole day? coffee. >> Coffee. Well, you're doing a great job. They've definitely got a lot of social skills. There's a lot of, you know, I it was
010remarkable to me because I thought these little tiny guys will they come up and talk to us because sometimes even our first, second, and third graders are very reluctant. But not this crew. They have learned how to socialize. And that's what learning is all about. Oh, you and Carrie gets like five of them because >> they apparently like her the most >> and we just want to thank you guys for the opportunity to bring them here and just do something fun and go with the flow of the activity. So, we appreciate that you were >> we loved it along with >> let us know >> you come on up >> with coffee and chocolate. >> That's right. That's right. Thank you teachers. Thank you, Carrie. Thank you, students. Good job. We're going to give you
011a hand. [Applause] >> Oh my gosh. >> I know. They're so awesome. They're so full of wonder and big eyes. I think three three teachers. >> You know what that is, board members? That's our Y right there. >> You're here. >> Okay. Well, we can't top that. So, we'll just go on to public comment. Um this is the portion of our meeting where um the public can uh um speak to the board directly. Uh we ask you to keep your comments to three minutes. >> Oh yeah. And um >> you should just say trickor treat. >> That's right. >> No public comments. Okay. We will move on to the next item on the agenda which is the 2026 budget hearing. Mrs. Glass. >> Thank you, Mrs. Woodward. Good evening, board members. Good evening and welcome
012to the 2026 budget hearing. In this budget hearing, we will review the budget calendar, state and federal changes impacting our 2026 budget, discuss budget updates, proposed budgets, and the next steps in the budget process. Our board also knows our budget process. Key dates I want to point out here on this slide is when the board adopts the 2026 budget on October 27th. The board is also wellversed in budget terminology due to legislation school funding changed in 2019. We have the education fund supported by state funding which pays for our teachers, our instructional assistance and instructional supplies. Then we have our local property tax funds. Our operation fund which pays for our utilities, pays for our instruction non-instructional staff like our custodians and our bus drivers. We have our debt service fund that pays for our
013our debt on our school buildings. And lastly, we have our voter approved referendum fund which was approved to reduce class sizes to increase teacher pay and provide the muchneeded supports to our students. The revenue in the first three buckets is heavily controlled by the state. Recent legislation has negatively impacted Avon schools, making the referendum our vital lifeline. In 2023, our financial advisors, Baker Tilly, provided our school board with a comprehensive financial plan which aimed to provide our current financial strength and projected financial forecast for our upcoming years. Those financial strengths included our enrollment growth, net assessed value growth, and cash balances as a percentages of our expenditures. Since 2010, Avon has increased its student enrollment by 2,37 students. The majority of the education fund revenue comes from the average daily membership of our students on
014count day, which is October 1. We're currently at 10,527 students and we also have six students in pre-registration. As you can see, Avon's net assessed value has increased over the years, allowing us to reduce our tax rate. However, with Senate Enrolled Act One, our 2026 net assessed value is only 3.14% increase, which is projected to decrease from 2027 through 2031. This will dramatically impact not only schools, but other local governments. Our board has been fiscally responsible and has dropped our tax rates. We have dropped our debt tax rate by 21.3% and our referendum tax rate by 32.1%. We only collect what we need. In the last 8 years, on average, there have been 38.75 new laws per year impacting public schools. Many of those in recent years have changed school finances significantly. It is a
015constant challenge to schools to engage in long range financial planning when our state changes the rules each and every year. So what are some of those flaws? As homeowners, we can take advantage of specific deductions that help decrease our tax liability. Senate Enrolled Act One phases out the standard deduction of $48,000 provided to homeowners and replaces it with a supplemental deduction. While these deductions are beneficial for us as homeowners, they lower the net assessed value for all local governments. In addition to the supplemental deduction, our legislators has also introduced local property tax credits starting in 2026. These credits will amount to 10% of the tax liability or a maximum of $300 for homeowners who qualify for the standard deduction. While this is beneficial for us as homeowners, it will result in an additional loss of
016$2.8 million for our Avon schools between the operations and debt service fund. Senate Enrolled Act One also decreases the debt tax rate cap for schools debt service funds to 70 cents. Previously, it was 80 cents. If school districts debt service tax rate exceeds 70 cents, it must seek voter approval through a referendum to issue further debt. As a reminder, House and Road Act 1001 requires school corporations to purchase or furnish curricular materials without cost to parents. Funding from the state is only $157.95 per student for a total estimated impact of over 252,000 to Avon schools education fund. So what are some of the 2026 budget pressures? It includes the Enrolled Act One legislation with the debt tax rate, the supplemental and deduction increasing, reducing our net assessed value, inadequate textbook funding from the state, and
017the state not funding to inflation. At this point in the budget process, we still have some moving parts or some unknowns and we want to advertise high because there are several variables such as assess value appeals from our homeowners and the total true impact of Senate and Road Act One. In addition to property tax caps that we'll talk about um in further future slides, there are other protections in place for our taxpayers. There's maximum levies, maximum rate funds. We can advertise as how high however we want, but approval will not exceed those maximum amounts. What is advertised is not final. What is adopted in October is not f final. Following the adoption, everything is re reviewed by the dea department of local government finance, excuse me. Then the budget recommendation is sent to us for
018final review. Once that is submitted in December, January, everything is final. At every step, things can be reduced. Budget and tax rates can be decreased. At no point can anything be increased over what was advertised to our taxpayers. That's why we are conservative and advertised high. We can always go down, but we can never go up. Here we have our budget assumptions. Our budget exceptions include our staffing. Avon schools is the larger largest employer in Avon. The gold bars on the slide highlight the percentages increase or decrease in state funding year overyear. The red line shows what the inflation rate was and what it will be projected to be in future years. Our advocacy to the state legislators has always been fund to inflation. Here we have the proposed budgeted revenue for the education fund.
019Our proposed budgeted expenses in the education fund. our proposed debt service revenue and education or I'm sorry expenditures in the debt service fund. Here we have a slide from Baker and Tiery our financial advisors pro who provided this slide for our current debt with the impacts of Senate Enroll Act One. Here we have a summary of what our operation fund supports. So how do property tax impact Avon schools? Because we are so heavily residential and much of our tax base is capped at 1%, Avon School sees a greater impact from property tax caps than many other school districts. If you total all the years up since 2010 of property tax caps, Avon schools has not collected over $12 million. Here we have uh the proposed operations fund budget revenue and expenditures. Here we have our
020ref referendum revenue and expenditure proposed budget. The referendum tax rate in 2025 was 24 cents less the voter approved tax rate of 35 cents. We updated this slide to ensure we advertise the budget high enough to account for the unknowns and our referendum uncertainty. In 2018, the voters approved a 35 cents referendum rate. We have never taxed at that full rate. If we had, the taxpayers of Avon would have paid more. Over the seven years of the referendum, we would have collected an additional $23 million. Promises made, promises kept. We pledged to only tax for what we needed to meet the priorities of the referendum. Avon's referendum timeline consists of a failed referendum in May of 2021 where we reduced 67 teachers, a successful referendum in 2018 where we added 80 80.5 teachers and a
021November operating revenue renewal on the ballot. For more detailed information, you can click on the QR code. So, what are the facts of the referendum? The 2018 referendum focused on three priorities. Reduce class sizes, competitive teacher compensation, and more opportunities for the students. This is a renewal referendum. State law requires us to renew after eight years. The referendum does not fund construction, administrators, or technology upgrades. Election day is on November the 4th, and this is the only thing on the val ballot in November. Also, most important, our board reduced the 2025 maximum referendum renewal rate on the November ballot to 33 cents. This is a summary of our estimated revenue and budget. This is a summary of our estimated 2026 revenue and budget and shows the percentage of the total budget of each fund. This
022is a summary of our advertised tax rates compared to the approved tax rate. Notice that in 2025 we've advertised a $2.40 tax rate. However, the approved tax rate is only a $161 resulting in a reduction of 46. So, what are our financial uncertainties for Avon schools? Limits on our debt service to accommodate any other growth, property tax legislation, Senate enrolled act one, the elimination of the local income tax to schools in 2028, impact of insufficient curricular material funings. operating referendum expiring in 2026 and state funding not keeping up with inflation. We just completed our 2026 budget hearing. Dates to remember is when the board adopts the 2026 budget on October the 27th. It's like you've done it before, Sheila. Um, okay. I have a number of questions. Um, and I'll I'll start, but please jump
023in when you have questions. So, the first question I have is on the November 8th, 2025 where you enter information into gateway, what what is actually entailed in that? Is that a lot of effort that it takes to put it in or is that by that time everything is plugand play? >> So um to prepare for the uh the budget hearing most of that data is already input into uh the uh the gateway. Okay. >> And so it entails detailed line by line inputting each um expense each program into um that the gateway system. So it does take a lot of information. >> Okay. So do are you doing that? Is your staff doing that and >> you're checking it? >> I do that. >> Okay. Um and so you have a deadline to get
024it in by November the 8th. Has that um has that gotten more complex over the course of time or is it about the same amount of time and effort to put that budget in Gateway? This is the same amount of time of effort to put it in gateway, but with the complexities of all the impact of legislation funding, it takes more time to prepare. >> Yes. >> To get put it into Gateway. >> Okay. Um I just never knew what that was about. Okay. A note, here's a um definition that I think is important. So, if you go to the slide that has the four buckets on it, Sorry, it's way back there. >> It's like at the very beginning. There you are. Almost there. There we go. There we go. Okay. >> So, um,
025as we all know, there's the the four buckets, right? The referendum bucket is there because we have a ratified and approved referendum. But what's I think confusing is that there are two types of referendum. Um there is an operating referendum and there is a uh construction or building referendum and of course um that nomenclature doesn't match our buckets right so I think it's important to note that an operating referendum affects both the education fund and the operations fund and then a facilities uh referendum would only affect that third bucket. debt service. Okay. So, I I just feel like it's important for everyone to understand that an operating referendum, which is what our school corporation is going for now, is about those first two buckets and it doesn't match up in nomenclature. I think it's important
026to understand where that money um goes. Um okay, so this is like the hardest question probably. So would you go to the slide about our declining tax rate? >> So right here. >> Nope. Okay. So we know that we've been uh we've practiced fiduciary responsibility. We have our approved rate of 35 cents on the 2018 referendum. We never um we never collected that. Um and that we have been able to drive that down to 24 cents. But what I want to know is how um is that reduction actually realized? And here's what I mean by that question. So we advertise high and because we can't ever go up, we can only go down. So I would assume that in every one of those budgeting years, you advertise the maximum rate. Yes. >> Yeah. And this
027year, >> the maximum rate. >> Yes, close to the maximum rate. This year, we're going to advertise at the maximum rate or close to the maximum rate. But then over the course of time and being financially responsible, we didn't actually tap into and spend more than in this 2025 24 cents of what we advertised. So this year when we are advertising in this budget, it contemplates the full amount of the referendum um 2018 referendum 35 cents. Where do we project we will land in 26 in expenditure from referendum funds? Is there a way? We've been steady for the past three years at 24 cents. Is there any way to know based on this current budget what that will actually be at the end of 26? >> It depends on net assessed value. >> Right? So
028based upon uh what we calculated to maintain those 142 certified staff, our teachers and the 31 support staff and our projections with our financial advisors, we only needed a certain amount in order to sustain those uh teachers and that support staff along with any type of inflationary numbers um if we had any type of teacher raises or things like that. So we've ha we have those solid numbers and we projected out eight years. So if net assessed value comes in where we need it to be in order to levy the amount that we need to support that then we would bring that tax rate down based upon what our net assessed value comes in. If that answers your question. >> Okay. So we know the net assessed value this is year one um 26 will
029be of net assessed value going from homestead credit to the supplemental credit. Yes. And I would presume that we would have some projections on what that would do to net assessed value, but we don't actually have the the denominator yet, which would be the value of property in in Avon in Washington Township. >> So, we do have net assessed value, but we also have different variables like the assessed appeals from our homeowners. Uh if the board recalls about two years ago we received net assessed value but then they came back again because there was some more appeals and so it actually changed what net assessed value would be. And so we really want to wait until that is solidified until we say we can bring down that tax rate or what that tax rate would
030be to support the expenditures that are on >> I see the referendum. So, as a raw number with when we have our net assessed value, did that go up or did it stay the same or did it go down? >> Did what go down? Sorry. >> The you said we have our net assessed value in our possession. Yes. >> Did that num and realizing that um the homeowner activity will alter that or could alter that but on par based on net assessed value of 2025, 2024. Um, did the did the raw number for net assessed value go up, stay the same, or go down? >> It actually went up. Okay. >> It went up about 6%. >> Okay. >> It did go up about 6%, but still we don't know if that's going to be
031solid number. That's right. Yes. For since >> But the starting point is 6% up. >> Yes, that's correct. >> Okay. Um and then the legis the um homeowners would have a window of opportunity where they would be able to file those appeals. And when does that end? >> I don't have that date, but I can get that date to you. Okay. >> I believe that it's in um November, but I don't know that. >> Okay. So to say that we are standing firm, this is actually our net assessed value. We do not anticipate that's going to happen in this calendar year. It will be next year before all of that is >> we will have it. We'll have it before we um finalize the budget in December. We just won't have it. We just don't
032have it right now. Okay. Okay. All of the outstanding information will be completed at least probably by end of November because then they will send us DLGF will send us here's the proposed budgets and tax rates and then we have the opportunity to decrease or make adjustments once we have all those final numbers and that's when it actually is final is in December going into so that all the tax rates are set before January 2026. >> Okay. I think it's just important to note on this slide, you know, we we've looked at this slide many many times and every time I look at it, I see something new. But I think what is important in this slide is to know that our best guess in 2018 about what we could see was going to affect
033our funding led us as a board at that time to seek a 35.36 uh cent referendum. And the same is true of what activity we are doing now. We don't have a crystal ball. We wish we did, but at this point projecting out eight years, we believe that a 33 cent uh amount would be sufficient to cover that which we know in the upcoming 8-year time frame. >> Correct. >> Um and I think it it this slide does illustrate how we've been financially responsible by driving that down. we had the opportunity to charge at that higher rate, but then we found we never needed that. >> And I also think the only other thing I would add is I think as we look forward into future years, this will be kind of a demarcation point
034going into 2026. You know, you think about most of the data that Sheila shares, we go back to 2009 2010 because the state changed everything about property taxes in 2009 2010, >> right? >> That kind of became a reset. Um then we now a a reset for us was in 2018 when our community supported a referendum. Now we will also have a reset in 2026 because the state changed everything with property taxes again. And so it's going to be really hard in the future to compare tax rates, to compare everything um because 2026 changed the game uh in the Indiana legislature. So we'll in the future, five, six years from now, we'll be looking at this and we'll probably have a line drawn across of this is when Senate Enrolled Act One took took effect,
035just the same way that we've always done that going back to when property tax caps were put in the Indiana Constitution. It it changed the game. Yeah. Well, and we know that the suns setting of the homestead credit and the um gradual implementation of the supplemental credit, we know here today that that will have a financial impact on us. We know that >> and it will until 2031, >> right? >> And then 2031 sets a new baseline for us at the low point and then we have to claw our way back out from 2031 on. So, um, every local government governmental unit is trying to figure out what do we do to get from 2026 to 2031 because it's going to get worse, worse, worse, worse until we bottom out in 2031 and then then
036it starts to incrementally get better at that point. But these next five years are going to be incredibly difficult for every unit of government. I was at the library board meeting this week. They're talking about Senate enrolled act one. Town council talking about Senate enrolled act one. This is this is significant as we try to all figure out how do we serve our communities when uh the property tax impact is so so great. Well, and I mean to to rehash a little bit from what I heard at um several several months ago, uh when the work was done on trying to figure out the sun setting of um the Senate enrolled act one and the benefit, I guess to the home to the homeowner. um they realized that the sun setting in the first year
037of the homestead credit and the buildup of the supplemental credit really did not yield anything good for the homeowner. So they that's when they decided to add the $300 um because that would at least be a sweet spot on that first year and and but that's that $300 is only guaranteed for year one. So they made a win where no one no win was there for homeowners and then we'll just have to see what happens after that. Um okay on the um on that same page the legislative update SCA1 um my question is actually on the next um no maybe back up that one. >> Nope back up one. Nope forward one. >> Sorry >> this one right here. No, the one that says uh after applied after tax caps. >> Okay. So the the
038clarification on this one where it says negative impact on ACSC. >> So this additional 2.76 million loss proportionately shared between the operations and debt service fund. But isn't there still a state requirement that debt service fund can never go negative? >> Yes. >> So it then affects that not if that would put debt service fund in a negative position. If we don't have enough money to pay our mortgage, we're required to pay our mortgage. >> Yes, >> that is correct. Um so that in essence not all of the 2.76 million would go into operations if there's room in debt service to absorb it proportionately but if there is not that all hits operations fund. >> That is correct. >> Okay. And in our projections working with our financial adviserss looking out into the 20 35ish
039range they don't project we would ever drop into a negative in debt service. They do project that our debt service fund balance would become increasingly small, which is a concern. Indiana likes to tout their credit rating, but now they're putting local units of government at risk of getting poor credit ratings >> because every time we need to issue debt to do a project to accommodate more students and update buildings, all those things we Sheila has to go through a credit rating. And the factor, one of the factors they look at is do you have a healthy fund balance um to withstand the es and flows that come in um you know governmental work. And so when we look at that, we don't run the risk right now of a negative fund balance. We do run
040the risk of jeopardizing our rating, >> our credit rating. >> Um do you have the choice? It says that it would be equally um taken out of operations and debt service. >> But does the does the school corporation have a choice about where if you make the bogey of 2.76 million, can you take it from um either one or are you required to take it from both equally? >> You're you're required to take it from both proportionately. we uh levy a higher debt service levy than we do our operations and so they proportionately split that credit between them based upon the the difference of the levy. >> Yeah. Because to your point, one way to avoid a poor credit rating, if you're eroding that fund and you need to take um you need to raise
041some capital, then it would be to leave the fund alone, take it from operations um and make it so that you would get a better credit rating upon borrowing money, but you're not even given that latitude. Cool. Um, okay. So, in the 2026 budget assumptions, is there a reason that we are um this is this page right here? >> Right here. >> Yeah. So, the 10,55 our ADM projection right now today on the 24th day of September is higher than that. >> That is correct. So is there is there a reason that we are not um going to estimate the number that we know is true today on on our ADM? >> That is a great question. So as the board recalls, we have a October one date. Yeah. >> And we have a February
042date. Yeah. >> And so in our February date, that's when we have our midyear grads and they reduce that amount. Yes. And so that is an average of our what we actually received last year >> for 2425. >> Yeah. >> To make sure that I was very conservative in estimating that amount. >> I see. Smart on you. Uh when will you get your medical insurance premium renewal? You should have it um next month, right? >> We are working on that right now. >> Okay. Uh but your broker is still telling you it should be 5% would be sufficient to cover any increase in benefits. We are um that's the estimated amount. I estimate high. We're um we still don't have those numbers. They're still raw, but I think it's actually higher than that. I've I'm
043sorry. I estimated higher than that. >> Okay. >> Yeah. >> Okay. >> Um >> yes. Yes. I'm sorry I'm saying it wrong. And then um you said conservative increase in utility costs. Uh but then two bullets down from that increased utility. Oh, and this is the insurance insurance premium. Utility insurance and property insurance. >> Okay. >> Again, I'm just piling on our state right now. But when you look at what is happening across the state of Indiana with utility costs and property and casualty insurance, the inc the increases are astronomical. And our legislature has made this focus on trying to force schools to reduce their operations expenses. Our operations expenses are people, >> us drivers, custodians, >> or are utilities and property casualty insurance of which we really don't have that much control. And so
044Dr. Finley, Mrs. Glass, they're constantly working with our insurance, our property casualty insurance providers to try to figure out how to get our costs lower. But we opened a new building. We've added on square footage. All of those things drive up costs. And um and that has been a frequent piece of argument to our legislators is they're not accounting for what this means for schools when you look at in some cases 25% increases in costs year-over-year for utilities for property c. I mean it's it's really significant. So, we keep making that argument to legislators that that don't always see the bigger picture of all that goes into operating the facilities that we operate. Um, don't you buy aren't you able to buy property and casualty insurance um cooperatively through CIESC? You can't you can't pool
045rate your property and casualty. you know, they have not they have not done that in the past and I have I don't believe they're having any convers. They're always looking for ways to pull things together, but um they have not done that through CIS. Um and then in that I just like more explanation where it says conservative estimate of expenditures. The third bullet from the bottom, middle school west operational expenditures. Can you just say more about what what that means? >> Yes, sure. So, uh, we just built a new school building. Um, and, uh, we don't know what the utility cost will be. I had to estimate based upon south and north. And so I need to be conservative conservative in those estimations on historical data from south and north. And so that's what the
046middle school west operate operational expenditures means to me, you know, when I'm u estimating those expenses. Okay. I mean, I would assume that Middle School West would be the most energy efficient because it's newest and we put, you know, PSI, I'm sure, put a lot of effort, energy into figuring out how to reduce those. But I understand your point that without a year to of a run rate, you have no idea what they're actually going to be, >> right? And then with the increase in utilities, all those different things, it still plays a part because we are still seeing increases in our energy. >> It depends on what utility it was. So if it's if it's gas, it can be anywhere between 10 and 20%. If it's electricity, it just depends. And and in addition,
047we have different util So we have Hendricks Power, we have Duke, we have all the different gas. And so it depends on where those rates are at. And but we've been doing pretty good. In previous years, we had u uh I I guess it's called when you have uh not so bad winters or the summers and so forth would help us with some of our utilities. But with the increase in activity uh in our buildings, those costs goes up. Um on the slide for 2026 education fund where you highlight salaries and benefits um the total of that is 90.12% which we know that people and you know salaries and benefits are always the lion share of the education fund. Did that number go up or down? It not even as a function of the total
048percentage from last year. It >> stayed stayed about the same. >> Same. Okay. >> Yeah, about the same. I mean, a couple of percentages within each other. But yeah, I mean, if you have purchase services, um sometimes we have to outsource some of our our uh contracts uh for, you know, teachers. if we can't um um obtain a teacher for that uh specific uh class then we have to ask her especially with special education so it it differs sometimes. >> Yeah. Okay. >> Mrs. Glass I have a question where you shared about the medical insurance premiums. I was just curious. Do you have a percent of how many employees have the school insurance? I was just curious to see. I don't have it on hand, but we do have that. Our HR director, she keeps
049that, but we can get that to you. >> Okay. Thank you. I appreciate that. >> Um, and I think the last client I have or clarification is on the 2026 proposed budget summary. >> Yes, ma'am. >> Slide. So, if we go to that, it's pretty far back. There we go. Um, so going back to our previous conversation about the referendum fund advertising high but only, you know, using what we need, that 21,289,000 is the advertised amount at the highest rate that we could could um could have. And if we only spent 24% or 24 cents of that because we've been financially responsible, etc. Um, how would that affect that number? >> About a difference of seven 7 million. >> 7 million. Okay. Okay. Um, I think it's important for again for our public to know
050that um that we're going for a referendum renewal and we're reflecting on what we believe we'll need for the next 8-year period, realizing that that's just about as easy as holding water in your hand. um that um we would continue to make every effort to optimize our resources and minimize our expenditures and that we would not imagine that um should this referendum p this referendum renewal pass that we would start at the number that we've obviously um that we're seeking our public to approve. I think it's it's nuanced, but I really hope that uh that we can use these slides to show this has been our past history. This is the way that it is the game is played. I'm going to call it a game where you have to advertise high, but you're always
051going to be as transparent and um responsible as you can be. And we would expect that we'll be able to reduce that significantly and not levy that highest amount. And to that point, um, going back to 2018, we at in 2018, we said when we were talking about that initial referendum, we will need to take the full amount of the rate in year one. We did >> um because we knew we were going to hire teachers right when that referendum passed, but we had to borrow the funds to get through that 201819 school year because the money wasn't coming until 2019, >> right? >> And so really that first year of the the full impact of the referendum 2019, we were essentially having to pay for a year and a half of teacher contracts because
052we didn't >> Good point. the community voted to reduce class sizes and we didn't want to wait a year >> for them to see that to deliver that. Yeah. >> So that and even then even though we said in 2018 we're going to take the full amount in year one through the the hard work we were able to say you know what we didn't need to do that we were able to to come in at 34 cents and still fund a year and a half of teacher contracts. So the nice part about this being a renewal is we don't have to do that right. So you might look at this and say, "Oh, well gosh, in year one of the referendum, that was the biggest rate. They took the most amount of the entire seven
053years." And that's accurate, but the reason was we had to pay for that extra half year of teacher contracts that we don't in a renewal, >> right? Well, not only that, but we were um adding the headcount by 80. >> Sure. Y >> um and we were trying to make strides in uh compensation for teachers that was lagging second to lowest in our peer group. Um and we were trying to bring back activities so that it was there were three moving parts in addition to the year and a half that caused that to be the right amount to get us level set. And then you know it it's kind of like if you're going to build something in your house the most expensive part is when you build it maintaining it it gets cheaper over
054the course of time. That's the same kind of concept in that we're not trying to make up for lost ground in or in 26. Sheila, I just um I marvel at how complex this is and how you just you have ready answers all the time. Um and that's that is a that is a benefit for our school corporation that I don't think everybody appreciates. Um but we do. >> Thank you. And we appreciate that you are um that fidious person that will sit in the office until 9:30 to find 10 cents like you told me not too long ago. She did that. >> She wouldn't leave because she didn't balance and it was 10 cents off. She was going to stay until she found it. >> Scott can attest to that. >> And um >>
055Oh, yeah. She'd still be here if she had it. Um but um you know it's it's this time of the year that that appreciation for for you really grows and expands because this is very diligent work that you do very well. So thank you for that. >> I just again for public knowledge to call out if it fails the impact on these numbers just to reiterate that. I think, you know, we're obviously wanting to be optimistic, but the impact and what that looks like, um, I think is important. >> Yeah. >> Remember, other questions or I didn't mean to comment that, but I've done this a while and I kind of understand Oops, sorry, Jason. Um I understand um the complexities of this and we all track with that you know in our professional development
056at ISBA and others we we know how this has unfolded over the course of time. So um but it it is you know something that as a board this is one of the three tasks that we are elected to serve our uh public to do. So, thank you for the um the time in this working session and previous time that we've spent um and we'll look forward to just taking this forward. >> Um yes, go ahead. >> A public hearing, so we do need to open it up for public comment. >> Ah, that's true. Okay, I'll open uh to public comment at 6:31. One at a time now. The question was, because they can't hear you if they're listening, the question was, if the referendum were to fail, what would be the financial impact on
057this budget um because of especially the contractual obligations uh that we have to teachers? So in 2026, so our budget calendar year is from January to December. So we if the board approves, we would levy the total amount and um there is a chance in 2027 we will have a shortfall of $7 million. Thank you. So from a staffing standpoint, part of the reason why the board made the determination to do a referendum in 2025 was teacher contracts would not be impacted for this school year. So we've got to balance the teacher contract, which is a school year, versus the budgeting cycle, which is a calendar year. So, had we waited until November 2026 and the community failed a referendum, we would have no doubt had had a $7 million shortfall because teachers had a
058contract for a half of a year and we didn't have any referendum funds coming in. Because the board made the decision to do November 2025, if the community fails a referendum, we would maintain our staffing for this school year and then make the reductions this summer before the money runs out u at the end of 2026. That has been a frequent question from our staff u because obviously uh there's 173 employees that are paid out of our referendum funds that are anxious about um the outcome of of this vote in our community. >> Thank you. Other questions? The question is that at the beginning of the referendum, we had to pay a year and a half to catch up. And so if this referendum were to fail, the current referendum would sunset that half a
059year that we prepaid at the at the front end. So, and Sheila, correct me if I answer this wrong. I we're there's no ability to go in the hole with with the referendum because the money's done at the end of 2026. So, we would maintain the staff that we have right now through this school year and then this summer, we would make those reductions so that we're we're stairstepping our way down to the money running out at the end of 2026. So we would not we wouldn't be running a deficit the way that we would have had had we waited until November 2026. We would have the time to be planning and and laying off employees so that by the end of 2026 those 173 positions are no longer on our books. >> The other
060halfyear difference in that is May to November. I think this reiterates why the public asks why are you doing it this November. This is the detailed answer. >> You don't understand how teacher contracts work. Um and we tried relentlessly to explain this to state legislators and it fell on deaf ears. So, um, you you have to understand the balance that schools are in of we have contracts that are school year contracts and the state legislature says you can't lay off teachers except for this window May to July 1, which is why schools often did referendum in May. Um, so the the state law has now contradicted itself that you have to lay off teachers in from May to July, but Now you have to do referendums in November. And so it it really creates to
061Mrs. Woodward's point, this is very complicated and they have managed to find a way to make it even more complicated. >> Dr. Windham and and Mrs. Glass, do we know or do you both know about how many schools in Indiana are having to do this or is I just was curious >> talking about a referendum. being referendum six. >> There's six >> in November of 2025. >> Okay. >> Um >> probably we we and um Northwest Allen are probably the the largest school districts um that that are doing it November 2025. And then I believe there will be more coming in November of 2026 as everybody tries to figure out the impacts of Senrolled Act One. >> I heard the number is around 50. heard anywhere from 40 to 50 significant number. Um, other questions?
062Okay. Um, then I will close the hearing at 6:38. Um, item number five is other. Is there anything else for us to cover today? >> No, there's not. Okay, then I will adjourn the