001All right, good evening everyone. I'm going to go ahead and call this meeting to order. Thank you for joining us tonight and I'm going to turn it over to Dr. Wendon for celebrating Orioles. >> Thank you, Mrs. Parent. Um, we have a a tradition that we like to start every school board meeting highlighting students in some way and we call that celebrating academic excellence. So over the course of the school year, every school gets to come in and highlight some piece of the academic excellence that's happening in our schools. So this is our first one of the new school year. So we're very excited to continue that tradition with Willow Elementary. So if our friends from Willow want to come in with Mrs. Lee and Mrs. Gettinger, we'll get started. Okay. So, welcome. Thank you
002all for being here and thank you for those who are watching us at home. Um, we are really excited because this is our first group of Willow students that we've got to bring to the board. So, it's a little bit extra special today. Um, so you can see a couple pictures. Those are from our first day as a real school uh at Willow Elementary. So, you can see those smiling faces in the hallway in the front of our school building. We wanted to we're going to let the students shine and they're they're going to be the ones to speak the most tonight. But, um just wanted to give you some background information. And so we are explaining how we started Soore at Willow Elementary School. So a few things, we had some teacher leaders come
003together over the summer um and they really took ideas from each of their schools that they were coming from to help create our updated matrix with which Mrs. Fudge is going to talk about here uh shortly. We had some priorities with that group. We wanted to make sure that we had really high and clear expectations for all students in the building. So, how do we soar at Willow? We wanted those to be consistent and inclusive for all of our students. And just in case you're not aware, 100% of our students are new to our building. So, none of our students had ever stepped foot into our building. And so, how would they know what to expect or what the expectations are in a brand new building? Also, in addition to that, I did the math
004today. 51% of our certified staff are also new to Willow. And in addition to that, 100% of us are new to Willow because it's new as well. So even if we were in the building of West, it's different when you're thinking about K5 as opposed to 56. Um, and then our vision is to ensure alignment across all of staff and all of student to ensure that we really know how to all be long, learn, and grow at Willow. So then you can just see an example of the sore ticket. That's the positive incentive that students get when they're soaring. Um, it's a physical little ticket and then there's lesson plans and things like that that the teachers helped create that they launched on some of those first teacher work days. Okay. So, like Mrs. Lee
005shared, um, we have teachers from all over the district that then came to help us form Willow. And so really we needed we wanted to get buyin from everyone and get everyone's great ideas. And so we kind of culminated all of those ideas into our matrix. And so you'll see at the top those are our um places around the building where we agree to these expectations of how to stay safe on our school, achieve and to respect everyone. And so at the top you'll see that's what we do in the restroom, how we do this in the cafeteria and so on. and it's just so the language is consistent throughout the building. And then like Mrs. Lee shared, that's how students are earning those sore tickets. Um, and then the next slide shows additional places
006um throughout our building. And the last one I just really want to highlight is the everywhere always. So again, that kind of leads into our phrase of um the Willow Way every day. And so everywhere throughout the building, these things are happening. and we kind of like I said pulled from all the great ideas across the district to build the Willow Way. Okay, now I'm going to introduce the best part. Okay, so when I say your name, kiddos, just give us a little wave. So we have Ezra and Braxton from fifth grade. We have Jonah from second grade. We have Breeland from fifth grade as well. We have Striker and Truly from kindergarten. We have Foss from third grade and Cole and Kimberly from first grade. All right. And they're now going to get started
007and tell you how we soar at Willow. The S in sore means to stay safe. We stay safe at Willow by listening to our teachers during a fire drill. We are also safe when we use equipment and materials safely. I stay safe at Wella by keeping my hands and feet to myself. It's also safe to stay in the fence in the area during recess time. O the O part of store stands for our school. We pick up trash when we see it and we take care of all supplies. When we walk in the hallway, we look at the nice student work, but we don't touch it. Pick up my toys. The A stands for achieve to our best ability. When something is hard, you want to never give up. You can also tell a friend
008nearby if you're stuck so they can help you or you can help them. You have to pay attention and not goof off so you can hear the teacher talking so you can learn. The R stands for respect everyone. You can show respect by inviting other students to play with you or by giving someone a compliment like I like your shirt. It is also respectful to stay quiet when people are working or when people are talking. It means to be kind to others. You can say please and thank you. The willow way is all about learning. >> The will means to every day. An example of the will is all the adults that help and support the school. The little way is being kind to everyone. The little way is to help others and and stay
009safe. [Applause] So, we just want to thank everybody for allowing us the opportunity to come out and share how we are soaring at Willow. It has been a great start to um the school year and to really the legacy of just starting a whole new building. Um the kids have really embraced this and they're doing a really great job. Um and we're really thankful to be able to be there with them and just get this this chance. And so, we're glad that we got an opportunity to share that all with you tonight. All right. So, students, why don't you turn around and face the board now because they'll probably have a couple of comments to talk about how great you all did. Like, this is not an easy do and you all did it magnificently.
010Thank you. Um it's exciting to be part of a brand new school. You're the first classes ever of Willow and how fun is that? For the rest of your life, you can tell your own children uh see that building right there. We were the first members of Willow and that's a lot of fun. The other thing I wanted to share with you is I really like learning about the Willow Way. I think that would be a good pathway for a lot of adults too. Don't you think? Uh, a lot of good things learned there. Respect for all, among other things. It's it's a great way to be. So, so keep doing great things and have a terrific school year. Thanks. Thank you for sharing. >> Well, you guys Thank you. Can't remember to turn that
011thing on. Um, y'all did great. Uh, I can hear you. I have my hearing aids in, but I can hear you well, so that's good. And you all have a big smile on your face. That's what I like. And school's going well so far with for everyone. Good. Good. Um, how do how do you feel about the new name, Willow? The new school. You like that name? I do, too. And um, how many of you This is a I know it's new to all of you, but how many were at West last year? Any of you? None of you. Okay, I got that. Um you um glad to be back in school then. Made any new friends? Yeah. And as Mr. Anford said, I like the will away every day. I like that. And I
012can tell by your faces that you all are following that way every day. So keep doing what you're doing. >> Thank you for coming and speaking to us today. It seems like you guys are doing a really good job. Can we go down the line and can you tell me what your favorite subject is so far in school? All right. Well, all the characteristics that you guys are learning about will serve you here and in the future. So, thanks for coming and talking to us. I know it can be intimidating, but we appreciate learning with you guys. So, thank you. I loved hearing about the Willoway and the Soore uh saying because I think that's a really good way to have those foundational expectations to start off the school year so we could have a
013wonderful school year. And as my fellow board members have stated, you're a legacy at Willow. Now, um besides learning how to adjust the microphone, which is a very important skill, uh I was very, um intrigued to see how much you have student leaders, your older students, helping the younger ones already. And I think that's wonderful. So, keep that up. Uh, well, what I liked best about um every meeting is the fact that I get to see kids and today I missed you because traffic was so bad and I'm bummed and I hate the rest of the meeting now. >> I know that's true. But I just like to um see all of you and hear what you're doing and um see that you're really happy with your teachers and your friends and the new school
014U Willow Elementary. Um so thank you for getting all dressed up and thank you for hauling your families over here for us so that we could see you today. And I just hope that you have a great school year. You think you're going to have a great one? like the best one. Like super best. Okay. >> Well, that's all I need to know then. Thanks for being here. You guys did fantastic. So, good job. So, now if you want, you can go back to your parents. And parents, you're welcome to stay for the rest of the meeting, but if you want to get on with other things in your evening, you're also welcome to to uh leave at this point as well. So, thank you so much for being here. Thanks parents for sharing your
015kids with us. Thanks to the Willow staff for getting the school year off to such a great start. Thank you. Okay, way to clear a room, Dr. Windom. >> Okay, uh we'll move on to again, please accept my apologies for being late. Uh Fisers to Avon is no quick mute, especially not today. Um, we'll go on to the next item on the agenda, which is public comment to the board. Um, do we have any public comments? >> We do not. >> Hearing none, we will go on to item four, new business. Uh, first item is the public hearing prior to collective bargaining. Dr. Windham. >> Thank you, Mrs. Woodward. Um, this is a requirement before we begin um contract negotiations for our updated teachers contract. This is a requirement that's been in place for the
016last few years that we have to hold a public hearing uh with the teachers union. And so uh Mrs. Taylor is here representing the Avon Federation of Teachers. We hold this hearing every year and offer anyone who would like a chance to be heard and speak before the teachers union and the school district about anything that they would like to share uh about our teachers contract before we begin negotiations. So uh we opened the hearing at 5:47. Now we would just need to offer anyone a chance for public comment. >> Okay. Public comment anyone hearing? None. We will adjourn the hearing at 5:47. Okay. We will go on to the biggest agenda item, our 2026 budget workshop. Mrs. Glass. >> Thank you, Mrs. Woodward. clicker. >> Good evening and welcome to the 2026 budget workshop.
017My name is Sheila Glass and I'm the chief financial officer for Avon Community School Corporation. In this budget workshop, we will be reviewing the budget calendar, state and federal changes, budget updates, the 2026 budget proposed budgets, and discussing the next steps in the budget process. The board also knows our budget process. A lot happens in the next few months to approve the budget. Key dates I want to point out is the budget hearing held on September the 24th and when the board adopts the 2026 budget on October the 27th. The board is also wellversed in the budget terminology. However, I want to point out a couple of key terms that you will hear in this budget workshop. Net assessed value which is the amount determined by the county assessor to which property tax rate is
018applied by the taxing entity. The net assessed value is equal to the taxable value and different from the gross assessed value which is the total value assigned to all real property and improvements before deductions and credits are applied and not used as the taxable value. Due to legislation, school 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 those funds that are lo supported by our local property taxes, which is our operation fund, which pays for our utilities, our non-instructional support staff, our custodians, and our bus drivers. We have our debt service fund, which is paid which pays for our payments on our school buildings. And lastly, we have our voterapproved referendum, which reduces our class sizes, increase teacher
019pay, and provide those 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 Senate Enrolled Act One, the state gave other local government options to offset property tax losses. Schools don't have those same options. The only option is a referendum. In 2023, our financial advisors, Baker Tilly, provided our school board with a comprehensive financial plan which aimed to provide current financial strengths and projected forecast for the upcoming years. That assessment included Avon's financial strengths which were enrollment growth that assess value growth and cash balance as a percentage of expenditures. I will touch on a couple of those strengths in the next couple of slides. Since 2010, Avon has increased in student enrollment 2,37.
020The majority of the education fund revenue comes from the average daily membership of our students on count day, which is October 1. We are currently at 10,496 students. However, our recent demographic study shows that our district enrollment will be slowing down. The current restructuring of Avon schools will support Avon students for years to come. However, funding from the state needs to keep up with inflation. 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, policy analytics is predicting only a 2% growth in net assessed value in 2026 with decreases expected from 2027 through 2031. This will dramatically impact property taxes for all local governments. Our board has been fiscally responsible and has dropped our tax rate. We have dropped
021our debt tax rate by 21.3% and our referendum tax rate by 32%. We only collect what we need. In the last eight 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 constant challenge for schools to engage in those long-term or long range financial plannings when our state changes the rules each and every year. We spent a great deal of time in 2018 explaining school finance to our taxpayers. We will need to do that again because so much has changed. We will now review some of those legislative changes impacting schools. 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
022to 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 have introduc introduced the 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 again, this is beneficial for us as homeowners, it will result in an additional loss of $2.8 million for Avon schools between the operations and the debt service fund. Senate Enrolled Act One also decreases the debt tax rate cap for schools debt service funds to 70 cents. If a school district's debt service tax rate exceeds 70 cents, it must seek voter approval through a referendum to issue
023any further debt. This legislation suppresses the ability for Avon schools to maintain our facilities and purchase the muchneeded buses that we need in our school district. Our board continuously strives to be physically responsible and have decreased the debt service tax rate by 21.3% since 2017. As a reminder, House Road Act 101 requires school corporations to purchase and furnish curricular materials without no cost to parents. Funding from the state is only $157.95 per student for a total estimated impact of over $252,000 to the Avon's education fund. As of December 31st, 2024, all of this funding and expenditures are processed through the education fund. Schools now receive this reimbursement with our state tuition. So, what are some of the 2026 budget pressures? It includes the debt tax rate legislation that additional supplemental deduction, the operations funds fully
024absorbing the property tax impact, the uncertainty of the referendum funds beyond 2026, inadequate textbook funding from the state, state not funding to inflation, and enrollment growth projected to slow. So, at this point in the budget process, there are still many moving parts to the budget. We want to advertise high because there are still several variables still unknown, such as the net assessed value from the county, assessed value appeals from homeowners, and the impact of Senate Enrolled Act One. In addition to property tax caps, there are protections in place for taxpayers like the maximum levies and the maximum rated funds. We can advertise however high we want to, but approval will never exceed the amounts determined as maximum. What is advertised is not final. What is adopted in October is not final. Following the adoption, everything
025is reviewed by the Department of Local Government Finance. Then the budget recommendation is sent to us for final review. Once that is submitted, everything is then 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 very conservative and advertise high. We can always go down, but we can never go up. So, what are some of our 2026 budget assumptions? Average daily membership projections of 10,55. Competitive increases in salary cost. A 9.1 million estimated negative property tax impact. Increases in utilities and property insurance. Avon schools is the largest employer in Avon. We rece we recently opened a new middle school. However, due to the K through8 restructuring efficiencies and program audits, we added
026only 0.5 teaching positions. Remember, we also had 20 teachers teachers in portables and 15 in other places not designed for classrooms to delay the need for the construction of a new school. Again, our board has been very physically responsible. Now this year, every teacher is in a space designed as a classroom. Additionally, we were able to increase the number of 35-hour instructional assistant positions in a costneutral way that allowed us to reduce the number of 29-hour instructional assistant positions. The gold bars on this slide highlight the percentage increase or decrease of state funding year overyear. The red line shows what the inflation rate was and what is projected to be in the next two years. Our advocacy to our legislators has always been fund to inflation. Here we highlighted three periods of time where funding
027from the state was trending below inflation. You can see around our 2011 failed referendum, we had three consecutive years of funding that trended below inflation. Now look ahead to the second era around the 2018 referendum that passed. We were being funded below inflation for three consecutive years again. And here we are again. We know what the next two years of funding will be from the state and another three consecutive years funded below reflection. Now we will begin our review of the 2026 proposed budget. Notice in the education fund 98.89% of the revenue in the education fund comes from the state tuition. Overall, we anticipate an additional 1.94% increase in revenue for the education fund. Since the education fund covers the salaries of our teachers and assistance, when state funding does not keep up with inflation,
028the only alternative available is the referendum. Salaries and benefits comprise about 90% of the education fund budget. Because of this, we need to remember that if the education funding is flatlined or cut, the only way to truly impact the education expenditure side is in salary and benefits. This is a summary of our debt service fund where we pay our debt payments on our building. Similar to making mortgage payments, we work closely with our financial advisors Baker Tilly to manage and issue our debt. Baker and Tilly, our financial advisors, provided this slide for our current debt with the Senate Enrolled Act One impacts of the new homestead credit, which reduces the debt service cash balance. Notice the yellow dotted line that represents the declining debt service cash balance. Cash balance is important factor in our ratings
029with standing and poor when we issue debt. If our legislators don't address or fix this portion of Senate Enrolled Act One, our debt service balance will be dangerously low, which will impact our future ratings. This will be a concern for all units of local governments. The operations fund supports 17 over 17 facilities, over 2.3 million square feet, and over 588 million in community assets. According to the American Physical Plant Association, corporations should allocate 2% of the total value of ongoing maintenance costs for buildings. This amounts to over 11.8 8 million of Avon schools. However, due to property tax caps, Avon schools defer a significant amount of maintenance and is not able to keep pace of what is required for our buildings. So, how the property tax caps impact Avon schools? Because we are so heavily
030residential and much of our tax base is capped at 1%, Avon schools sees a gater impact from property tax than many other school districts. This illustration represents how much you had to pay in property taxes pre209. The line represents the cap on those taxes. The difference is the property tax cap impact which are funds no longer collected by local entities. In 2018, our voters were willing to pay above that cap to support our schools to reduce class sizes to reduce class sizes to increase teacher pay and to provide the muchneeded supports for our students. However, the operation fund absorbs the full impact of property tax caps. So if you total of all those years since 2010 of property tax cap, Avon schools has not collected over $12 million. The proposed 2026 operation fund budget is
031consistent with our levy approach in previous years. We're very conservative. We advertise significantly higher than our maximum levy because of the unknowns of net assessed value and Senate enrolled act one. Notice the estimated property tax for 2026 of 8.2 million and the additional homestead credit impacting operation funds of over 900,000. The referendum tax rate in 2025 is 24 cents, less than the voter approved tax rate of the 35 cents. We updated this slide to ensure we advertise the budget high enough to account for the unknowns like the net assessed value and referendum uncertainties. In 2018, the voters approved a 35 cents referendum tax 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
032additional $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 oper operating referendum in May of 2011 when we reduced 67 teachers, a successful referendum in May of 2018 where we added 80.5 teachers, and now a November operating renewal on the ballot. For more detailed information, if you want to look at that, you can uh click on the clear the QR code for more detailed information. The 2018 referendum priorities was reduced class sizes, competitive teacher compensation, and more opportunities for our students. Remember, referendums are only good for eight years. Referendum does not fund construction, administrators, or technology upgrades. And November 4th is the election day for our renewal of the referendum. Most important, our board reduced
033the 2025 maximum referendum renewal rate on the November ballot to 33 cents. That's a reduction from the 2018 approved referendum. This is a summary of the estimated proposed re revenue and budget. The proposed advertised amounts are higher than the actual revenue and expenditures to account for those unknowns in the property tax calculations this early in the budget process. This is a summary of the estimated 2026 revenue and budget and shows the percentage of the total budget of each fund. Notice the referendum makes up 11% of the revenue and 11% of the expenditures. If revenue does not continue beyond 2026, our personnel expenditures need to be reduced by 11%. Remember, the referendum funds teachers and instructional aids. This is a summary of our advertised tax rates compared to the approved tax rates. Notice that in 2025,
034we advertise a $2.40 tax rate. However, the approved tax rate is $161, resulting in a reduction of 46. We pledge to only collect what we need. So, what are the financial uncertainties for Avon? The limits on debt service to accommodate our growth, Senate Enrolled Act One, and the impact on our local government. the elimination of local income tax to schools in 2028, insufficient curricular material funding, the operating referendum expiring in 2026, and state funding not keeping pace with inflation. We have our budget calendar again. We just completed the 2026 budget workshop. dates to remember is the budget hearing on September the 24th and when the b the board adopts the 2026 budget on October the 27 thank you Mrs. class. Always informative. Um board members, I've got a number of questions. Does anybody else want
035to start? I'll maybe ask two or three and then please feel free to jump in. Um Sheila, if you will go back to um slide eight, actually I think it's page eight. This shows the ACSC enrollment summary uh from 2010 to present. Okay. So, um we currently have 10,496 students. We anticipate further back our enrollment on count day. Thus, what state funding will uh give us is 10,55. uh you made the um the statement that we're slowing down in our growth which is true but I think that the point that needs to be made is that the slowdown does not mean the plateauing or the reduction. In other words, the slope of the line is going to continue upward. We will have more students in 26 and 27 and 28 than we've had in any
036year prior to that. But the uh percentage of growth is what's slowing down, not necessarily or maybe ever. The count of students, is that a correct statement? >> Based upon our demographic study, we were only projected to grow 20 students >> from the previous year. Yes. >> And so the estimations that I provided because we wanted to be conservative the 10,55 we want to be very conservative. And so um I estimated that is what we received last year. So remember we have the October one count and then we have also have the February count. So that 10,55 is an average of both of those counts. >> Okay. But the dem uh the demographic study did not show a reduction in students. In fact, it still shows an upward slope. >> That is correct. >> Which
037makes um on a per student basis, the issues that we have pre-referendum, it they continue to create hardship. Yes. >> Because the student count is going to still go up. It's just that the percentage of student growth year year to year are going to are are not going to be the same slope. >> Yes. Based upon our demographic study. Yes, ma'am. >> Okay. Um the next question I have is on page 10 which is shows the declining tax rate. >> Yes. So, um, this rate reduction, I I just want to go back in history and say that in 2018 when we had our successful referendum, uh, we were at 35.3536 cents per hundred. >> Yes. uh we didn't collect that because in fact our net assessed value began to grow go up >> and the
038dollars associated with students from the state funding formula also increased. >> Yes. >> So at that time we projected this is the amount of money we're going to need per hundred in order to maintain smaller class sizes, more opportunities for students, competitive teacher pay. But in fact with two B two points going up we never were required to have to spend that much. And what we did is as you can see the net assessed value the slide before that goes up the students go up. Both of those are revenue generators and therefore that tax rate was never fully realized because we didn't need that much money based on those two. Um, one thing I want to point out is that in 2026, both of those are still continuing to believe to be going up. Net
039assess value will increase >> but at a slower rate >> and students will increase at a slower rate. >> Yes. But both still are going to be positive to the revenue generation. I think that's important. Um, can you talk a little bit about the on page 12 as the supplemental deduction begins to overtake and replace the homestead credit? Um, so I try to do this math and I just don't get it. Can you go to slide 12 there? So, if I have a house that is $200,000, then the in 2026, the standard deduction or the the supplemental deduction will be um 37.5% of any house that is less than $600,000. Am I reading that right? >> In 2026, that right now that is 2025. >> I'm sorry, 25. >> Okay. In 26 um it will
040go to 40% but the standard deduction will be capped at 48,000. >> That is correct. >> Okay. So the idea is under Senate Enrolled Act One that as supplemental deduction goes up, homestead credit declines to the point of in third 2031, there will be no more homestead credit. >> That is correct. They're phasing it out, >> right? And it will be replaced by the supplemental credit. But when you do the math, I believe if we talk with our friends at Baker Tilly, they will tell you that the impact is not equal. >> It's not. >> Yes. So, so you're as a homeowner even, you're not getting the same value of the deduction that you otherwise would have had if the $48,000 homestead credit had been left in place. So our our our taxpayers are being
041negatively impacted and then of course that has a residual effect on schools and other taxing entities. I think this is important to kind of help our public understand and see what their what the impact will be on their property taxes as homestead is sunsetted and supplemental deduction goes up. >> Yeah. Really this credit it doesn't reduce the liability. It reduces the net assessed value apply the tax rate. >> Yes. And also remember when this was inserted into SEA1, the calculations showed to your point, Mrs. Woodward, this wasn't really going to have that big of an impact on the homeowner. So then they flipped and added the $300 credit that's on the next slide. Right? So all of these changes in calculations weren't getting them where they wanted. So then in the last hours they added
042this $300 credit which really impacts residential communities where when you count up every home in the community and a $300 credit >> that that adds up, >> right? But regardless of your assessed value, the credit of $300 is static. That's per roof. That's not that's not based on the value of your home at all, which again is a negative impact >> because of the way that the tax buildup on the homestead credit occurs based on your assessed valuation. >> Yes, ma'am. Well, and the other thing that our financial adviserss have emphasized and and even going back, you know, we had uh Barry Gardner from policy analytics present at a couple of our meetings this summer, all of these hit us, hit us, hit us, hit us, hit us until 2031, when you look at when
043that those full gone those full deductions have changed, then that becomes our new baseline. And then we potentially start to see increases in property tax revenue. but not until 2031. So, um what they have shared is these next few years when it comes to property taxes and that's why you're hearing across all of local government, libraries, townships, towns, schools, parks, um all of local government is hit in this way and it's going to be hit hit until 2031 and then then start to hopefully inch our way back up as some of these things reset the baseline basically, >> right? >> I mean, thank goodness we're Avon and we are continuing to add new housing starts, new roofs are being added. So, that's tax revenue that we have never realized before. Um, but obviously it can't
044keep pace with what this reduction is. And for some communities that are totally built out, then there is no more revenue increase because they're not there's no building. Um, okay. If we could go all the way to slide 18, which is the budget assumptions. >> Yes, ma'am. >> Um, so the first thing that I wanted to ask about is the 5% projected increase in medical insurance premiums. >> Yes. >> Um, do do you know offhand what our 2025 um increase was in medical premiums? >> 1%. >> Okay. However, medical trend is such that if it's if you slow it down one year, that has no effect literally on the following year. >> Um, and I think medical insurance premiums for a number of reasons are uh probably 5% is very conservative, but it it would
045be wonderful if we matched next year and had 1%, but the likelihood of that is probably not going to happen. And then uh competitive increases in salaries uh salary costs. I want to emphasize there that um I it isn't just our certified staff. >> That is correct. >> Um because we've always made it a point that our non-certified staff um obviously we want to be competitive there maybe more so because it it it is not impossible for a teacher to get a job outside a classroom. but it they're trained for that specialty. But a bus driver or a food service worker can work in dozens and dozens and hundreds of different jobs um with their skill set. So I think it's important that in our budget assumptions we make sure our public know that isn't
046that's um those salary adjustments that are made to our certified teachers and our non-certified staff. >> That is correct. Um, and then I'll say this next question, then I'll stop and see who else has questions. But on the budget assumptions, next page, you've got an asterisk next to some of like transportation, uh, food service and aids. So in those three categories, you that is actual headcount. Yes. That is not FTE. >> That is correct. This is bodies. >> Okay. But in teachers, clerical, those without the asterisk, those are FTEES. >> That is correct. >> Okay. So then I don't understand how the total of 1612 because you're mixing apples and oranges in your math. How can that be the number? I mean, is that just headcount? >> Yes, that's that is the total is >>
047if I added all these up, it wouldn't equal 1612. Yes, ma'am. >> Okay. Okay. I think I understand that. >> So, last year it was 17 719.5 teachers. >> 719.5. Okay. And that's 202425 school year. >> That is correct. >> Okay. >> For the 2025 budget calendar year. >> Um, and what what is our per student funding now from the state? It is uh 7,112. >> Okay. >> And that is for just the the base tition. >> Yes. >> Um Okay. I said I'd quit, but nobody's talking, so I have more. Sorry. Um, on the next slide, this I really don't understand. On slide 22, keep going there. Transfer to operations 8,160,000. >> Yes. >> So, can you back me into where that number comes from? >> Yes. So, uh, last year, uh, we, um,
048estimated $8 million, and that is because we wanted to balance the transfers over from the education fund to the operations fund to make sure that we have enough to support in our education fund and to support in our operations fund. >> Okay. >> So, back in 2019 when um, school funding was changed, >> y >> they created the education fund >> uh, uh general fund and in the general fund remember we used to pay for our custodia some of those operational funds. However, what it every student succeeded act they allowed school corporations to transfer up to 15% of the state tuition received to help support those operation expenditures. >> Okay. >> We've never taken the 15%. I provide a a board report each month on how much those transfers are. Yeah. However, with um the
049expenditures in the education fund and in the operations fund, we wanted to be conservative and make sure that we had enough in both funds to be able to support our district. >> Okay. So, so what I think you said is last year the decision was made that $8 million would be transferred to the operations fund and we're replicating that this year. >> Yes. I just I increased it one or two%. >> Okay. So if if this is a percentage of the subtotal above it, the state allows us to transfer as much as 15% but in fact we're transferring more like 10%. >> That is correct. >> Okay. All right. I get it. Thank you. And that's one of the pieces that I think gets so confusing that has changed from 2018 to now is when
050they changed that law as Sheila was talking about and said you can no longer pay for custodians and uh you can no longer pay for those kinds of positions out of your education fund. You got to move those to be paid out of the operations fund. But in order to do that, you have to move the revenue over to the educa to the operations fund. And so um this there is this constant transferring of funds that did not exist in 2018. That is is really complicated, >> right? They were distinct pockets. Yes. >> You could not take out a pocket on your right and put it in the pocket in on your left. >> And we had five pockets then. >> Now we have two and you can can transfer between them which in one
051way simplifies it went from five well we would have only had four because pension debt service or pension was one that's now been sunseted uh but we would have had four now we only have two but there is fluidity between those two >> well and that is also an example of how different communities are impacted so differently right >> so if we had more of a commercial tax base and our operations fund generated more revenue because tax caps didn't hit us to the tune of $9 million, >> then we wouldn't have to transfer as much money from education over to operations. The challenge for us is when you're hit so significantly by property tax caps, we don't generate enough out of our operations fund to make those expenses. So we have to transfer money over
052in more commercial taxbased school districts. They would have much more flexibility because their operations fund is generating more revenue. >> Right. I mean our neighbors to the south are are illustrative of that. >> Um you know and our neighbors to the north also in a lot of ways. um they they have the luxury, I guess, of having two interstates that go through their school system and as such I74 and I7 are where um industrial and big box warehouses are going to proliferate because that's where they can easily gain access to interstate commerce and Avon has US 36. So >> on Ronald Reagan if it wasn't true. >> Yes, that's true. But I mean it makes it a little easier to transport north and south on Ronald Reagan. But still, you can't deny the fact that
053commercial industry goes to those places where transportation is going to be adjacent to, you know, where they're picking up loads. >> I think that's one of the things that's hard for the community to fully understand. Why why is Avon's story so different than our surrounding communities? So, I'm glad that you mentioned that. >> I was speaking to our DLGF or the Department of Local Government Finance. We have a rep that um each school has and he said that Avon is hit on every side, >> right? >> Yeah, exactly. We love that quote. if a referendum is not renewed is not renewed. So, when I've been asked that question, I always refer back to our referendum progress report and just indicate um you know, ultimately our referendum right now funds 142 teachers and 31 support staff.
054So, in rough terms, we have 170 employees in this district that are paid out of the referendum. So, if referendum funds no longer exist, we no longer have revenue um for those positions. Yep. Yep. >> Um Sheila, I think there's real strength in in what you illustrated on um slide 30, which is that the 2018 referendum pledged three things and we have been absolutely 100% true to that. Those three things were reduction in class sizes, competitive teacher pay, more opportunities for students. Yeah, one more back. And so as we have this assessed valuation going up, student headcount going up, um those two good guys, right, despite some bad guys in property tax caps, um what we we pledged that those were the three things that we were going to do. So people could, you know,
055people that are not informed might look at that slide and go, "Well, Avon, you could have had $23 million more But you chose not to take it. And that's a very true statement. We did choose not to take it. And the reason was because in order to fulfill three promises, decrease class size, competitive teacher pay, um, activities and opportunities for students. We couldn't have taken that 23 million and kept that promise. We did not need the money for all of those things all of those years. >> That's correct. So, what I hope is that our our public understands that though we're going to and if you'll go to the renewal one on the page 32, um though we are starting with a number at 33 cents, the idea is that we would we make that
056same commitment and promise that the referendum will not uh increase unnecessarily for those three focal points. I also think it would benefit if you would explain the sun setting if we are successful in the referendum renewal, how the suns setting of the 2018 referendum and then the um the fruition of the 2025 referendum. How does that work? If you would explain that. >> Yes. And and so that 33 cents, as you said, is a maximum rate. So, as Sheila mentioned, we can't ever exceed that amount, but we can always every year as a part of this process come in under just the same way that we have done with the 35 cents. Um the a referendum is good for eight years. Yeah. But because we are going a year early, then if this new renewal
057referendum is successful, that terminates the 2018 referendum. So there would not be any doubling up of of referendum, >> right? >> If the referendum fails in November 2025, we are still able to collect the last year, the 2026 calendar year funding, but uh so we are able to to still collect the full eight years of the 2018 referendum, but if a new referendum is successful, then that stops the 2018 referendum and we have eight years of the 2025 referendum ahead of us. >> Right. Thank you. I think that's unclear for a lot of people. Um I think that um they assume that there will be double referendum if uh the 2025 renewal passes, but obviously that would not be true. Yeah, we'd love it to be May. Um because that syncs up with what our
058other referendum was. So in 2018, the referendum was passed in May. And so it sunsets at the same, you know, if it's eight years long and it came online in May of 2018, it would sunset in May of 2026. Um, but the legislature once again decided that all of the referendums were going to move to that November time frame. Um, and no one, even Avon, was grandfathered into being able to continue uh a May time frame. And every time I've explained the why of that, even going back to the summer when when people understand teacher contracts go from July 1 to June 30th. >> That's right. So, and we said that multiple times, spoke at hearings down at the state house about there is a reason why both in 2011 and in 2018 Avon schools
059and many other school districts did May referendum and that was because that coincides with staffing decisions. So, when it failed in 2011, we instantly started riffing teachers. when it passed in 2018. That summer we hired 80 teachers as Sheila said. So we can make immediate staffing determinations on a May referendum that is not possible in a November referendum because state law contradicts that and says you can't riff teachers in November. Um so there's a there's a lot of information on our website. A lot of the videos from the summer where we kind of went through those timelines. the financial risk of, you know, waiting until November 2026 was a $7 million potential budget deficit that the board really wrestled with um this summer when we were holding those community meetings. And so um we were
060left with two options, November 2025, November 2026. And um either way, it's in the the hands of the community to decide that. Um either way, uh the outcome determines our staffing, but the November 2026 option would have led to a $7 million shortfall of no revenue coming in for the last half of those teacher contracts. Every time like we talk about that, um people understand it, but you have to understand and and take the time to understand how the legislature has put us in an impossible situation where we can't make staffing determinations in November, right? And from my conversation with our local state legislators and other state legislators, they acknowledge the point that the November uh requirement for referendum elections uh causes, but they don't care because the political goal of having less referendums passed.
061They believe in a general election out. They cannot they cannot explain uh away the the conflict that is created with Indiana law, they just don't care or at least don't care enough, >> right? >> Yeah, I think that's true. Um, other questions? Another great job, Mrs. Glass. >> Um, yeah, this is I mean, this is a lot of work. There's a lot of moving parts, but I appreciate the fact that you um illustrate this, you know, so well that you step us and our community through it so that uh a topic that is very difficult is easily digestible. And you know, we will look forward to um as you pointed out on our next calendar, the next mark in time uh will be September 12th where where we will hear the um where the capital
062projects plan and bus replacement will be posted. And um then finally our budget hearing on September 24th um will take place and and hopefully you know we'll um just keep trucking along on this calendar. But always appreciate you taking us through what we have heard a lot of times but it's always new and informative. Um, any other questions, board members, comments? Um, if not, then we will adjourn the meeting at 7. Oh, no, it's 6:40. Thank you everyone. Thank you. Thank you, Jason, for hooking us up.