001Okay. We're going to start our >> [clears throat] >> work session on budgeting. So, we're going to turn it over to Tracy. I'll shut that. No, it needs to be on. Um So, we're just going to go over the packet that I provided to you guys and go um over the education operations and then talk about the debt service also. So, the first one um is what I want to talk First one I want to talk about is the education fund. This first page is just, you know, for your information. You guys, you know, know what the expenses are for the education fund. You know, our main source of revenue is the basic grant, which is, you know, driven by our student enrollment and student count. Uh and it's currently being supported by the referendum
002fund. Um and then these are the projections that I used, the assumptions that I used for my projections for the education fund from 2027 to 2031. Um so, we included salary increases for all staff, you know, maintaining the current benefits, put in annual increase for insurance premiums, and then um estimated the textbook curriculum adoption costs. And you'll see in um some of these other pages that uh those costs fluctuate each year because it depends on the subject that we are adopting. You know, like PE doesn't cost as much as like reading. Um so, you'll see that fluctuation in the numbers in the years depending on when we're doing those adoptions. Um and then I just maintained basically our current supply, travel, the tutoring that we're spending um and like summer school expenses just kind of
003maintained those expenses at the current levels. Uh with the projections for the revenue, I uh put in a 2% increase assuming the state gives us a 2% increase in state tuition support each year, and then a 1% decrease in our enrollment. Uh I took out the operations fund transfer for the technology support in 2027 starting that year. Um, talk a little bit more about that later. Um, and then some of you are aware of with this SEA 1 bill, part of those things that um, came out of that is their loss of the local income tax. And that was supposed to go into effect in 2028, but the legislators have pushed it out to 2029. Um, so that's in these projections showing it going away in '29. Um, maybe they'll change it. Hope to keep
004it, but also, with that local income tax, apparently after talking with Brock, our property taxes, there is a local income tax um, portion, I guess, in the property taxes that could be taken out also. So, not only with this, but then the property taxes with the debt service and the um, operations, there could be money coming out of that. Does he have any idea how much that is? Probably not at this time. Um, they are working with different um, groups in the state trying to figure out that impact on the schools and stuff in different schools. So, that's something we might want to talk about having them, you know, evaluate our because there's really no way for I can't figure that out. No. So. Um, What we're seeing school corporations claiming they're going to be
005losing a $10 million or whatever. Do they know or are they just kind of assuming? Well, so that's on the operations and we'll get to that. Um, because that SEA 1 bill, it mainly affects I mean, it it does. It only affects operations. But, see, our local income tax, we decided back because before you could spread the local income tax over all the funds or before you had to. And then it became an option that you could put it how you wanted to allocate it. And back when, obviously, because the education fund has always been overspending, that we decided to put all of the local income tax into the education fund to help support it. So, none of the local income tax that actually comes as local income tax is deposited into operations fund at
006this time. It's all deposited into the education. But, when I was talking to Brock um about that and some other things, he mentioned that there is like a some kind of portion of the local income tax that's included into the property taxes of how it's all figured. And so, um but it's not called that. It's not called local income tax. But, this taking the local income tax away apparently has a negative effect on the property taxes also. So, these These right here that she projected is the education fund, which is basically money from the students going to the teaching company. And these numbers are pretty solid projections. The only thing we're not for sure of is that loss of local income tax. Right. Um everything else is pretty much knowing what we are doing uh
007with raises and health insurance and past trends. So, these are pretty pretty solid uh projections. >> Correct. Um another thing I wanted to point out is on the revenue, all the other miscellaneous revenue, I left the amounts pretty much, you know, the same, kind of kept them with a little bit of an increase um cuz I assumed over the next 5 years we probably would increase the tuition costs for the low-grade preschool. So, I put a little bit of an increase in for that. But, one thing I wanted to note is that the interest rates are falling. You know, so we've made a lot of money on interest on our investments, and they're falling. And so, we're projected to get $100,000 less in the education fund this year than we did last year in interests.
008So, that's something we need to be aware of and keep, you know, an eye on, I guess, because we've made a lot of quite a bit of money on that. Does all of that interest go into the education fund? No, the operations gets a portion of theirs, but we only put 10%. So, we basically do the same percentage as we do the basic grant. You know, we take and put 10% into the operations and the rest goes into education, except for you're required to give um federal grants alike the cafeteria, whatever their balance is, we got to give them that portion of the So, like when it doesn't amount to a whole lot. So, the majority of it goes into the education fund. And is that our choice or is there any Yeah, that's our
009choice. Guidance on what that has to go? Um no, it's your it's local choice. >> [clears throat] >> So, I mean, before the education fund needed so much money, we used to do it by do it proportionately. So, it honestly the um operations fund always had a bigger cash balance and so it would get a bigger portion of the interest because it was allocated by that, you know, whatever portion of the total funds that the, you know, their cash balance was, that's how the percent that we would take and deposit into that. But once we the referendum went through and all that stuff when we were trying to get revenue to the education fund as much as we could, that's when we said decided that we would do the 80/20 like we do for the
010basic grant. Um but you have to give the cafeteria their portion and we also because you remember the telling our age, but when we did the whole buyout pension buyout stuff in the thing and we had to put [clears throat] money so the sick days that are in the teachers contract that we buy out when they're at retirement. There's a separate fund that we put money in that that fund has to we put interest into it and grow it. That's what's supposed to, you know, cover those expenses so that you don't have an unfunded liability for benefits. So, that that fund gets a portion of it, but it's only that fund only has like um 250,000 in it. So, it's less than a percent usually that's getting. And is that what pays on new sick
011days and things like that? Right. or return on every dollar and yeah. But other than that all the interest goes into the education fund. Uh so the next page is just I wanted to give you guys over the last 5 years of our enrollment and the tuition support that we've received. Um so you know we have two counts um each year for our enrollment. So we have a fall count and spring count and then your basic the ending [clears throat] uh tuition support for the year is based on the average count. So then they take that average count times the tuition support and then that's what you get for your um tuition support for that year. So if you can see you know each year we've went down students. We've lost a total of 72
012in the last 5 years. So about an average of 14 students a year. And some years were more some years were less. Um we even went up three in 23-24 but um so then you can also see what the increases was that the state has given to the um tuition support. You know obviously 21-22 is a pretty big increase of 5.5% you know that was COVID money COVID years. Um and then you also see another 5.9% in the 23-24 though that was when they put the textbook reimbursement into the basic grant. And so that's why that's increased because instead of having your own they included all of those expenses into the education so they put that revenue in there also. And then you can see the last 2 years they've kind of um balanced back
013out to where they normally are. And that's pretty standard the one to three. >> Mhm. Um so like the average increase over the last 5 years was the 3.8%. Um and then you can see you know I put the actual total basic grant. And then I just wanted you to know like, you know, over the last 5 years, we've, you know, lost $500,000 because of our declining enrollment, you know, because that would have been funds that we would have, you know, had had we had the state level, you know. >> From students. But, we haven't um lost any opportunities for students that we offer, and we've um uh been able to provide increases to salary uh raises. >> Services like counseling, and we'll talk about that. >> Yeah. So, that's a big Mhm. It's a
014big Yeah. So, we have a lot to cover. Um So, that's just for your information, just kind of get a picture of what what the education fund. And then, I wanted to give you this year's numbers just so you could see, you know, by school the fall count and the spring count. And since So, the spring count it's called spring count, but it's actually in February. Beginning of February, but um So, since that count in February, we've went down 16 students. Um Do we know where where Do they home school or go to home school? >> Since February or since Since February. Mhm. When I looked on April 28th, that's those were the numbers, and that was down 16 from And And typically, what you see is it does come from the junior senior high
015school. So, what happens sometimes is is that you may have some dropouts, you may have some so far behind in credit recovery that they withdraw, or they go to virtual. Yeah. There's so many options. See, B or you know, Prairie Crossing actually since February has went up two, and Audubon state exactly the same. So, it's all up in Central. Not uncommon when it comes to school corporations. It usually happens at that level. Um So, then the next slide, um I kind of want to look at these two together. The next two. Okay. Um cuz this next The next page is just kind of talking about, you know, I'm just summarizing what I'm going to talk about. Um so with on this one, actually, when I put in all those projections or whatever, then it all
016comes out to um how much, you know, projects out with those assumptions um for each year, percentage change and stuff. So, you can see uh the local sources in, you know, 20 fiscal year 29. It says fiscal year, but it's really calendar year. Sorry. Um for calendar year 2029, you see it goes down like 500 um thousand dollars. And that is where the um local income tax, you know, so that's going away. So, that's where you see that. Um you know, the increase in the intermediate or state sources, that's that increase. So, basically, once I put in a 2% increase and then a 1% um decline in enrollment, then the actual increase to us was less than a percent, you know, that we would actually get um if that stayed the same. If we actually
017got a 2% increase from the state and our enrollment only declined 1%. Then we would end up with about 0.75% increase in our basic grant each year. So, that's what that is. Um Then I Like I talked about with the textbook, um you know, the curriculum adoption, if you look under supplies, that's where you'll see, you know, like high fluctuations and then, you know, it all goes up like uh it went up quite a bit in uh for 27 because we did not We're not doing an adoption in 26. So, the um expected expenses of 686 does not include any adoption. So, then in 27, we are going to adopt uh I think science. Can't really remember. But And so, that's in there. Um and then you'll see that it goes down in um '29
018again, and that's the year, I'm pretty sure it's PE. Um and it doesn't cost as much. But, that's where those, you know, cuz the other expenses, you know, aren't going up, you know, a large amount. So, I just wanted to point that out. If you're looking at that, that's where that percent is. Um So, and I just want to put a plug in for the curriculum person because though she can make those projections because we have a schedule. We have a schedule of the curriculum materials, which is something that before, you know, our principals had to keep a handle on, and it's nice to have a corporation person do that. >> Mhm. Yeah. How how So, do we have our I'm just talking about expenses, I guess. You may be able to address it like
019the fuel costs, you know, how how high they went. Are we Are we Do we have lot on hand, or is that something that cuz I know we have storage tanks, but >> Right. I don't really know how much we have on hand, honestly. Something we can talk about later. >> Jennifer, yeah. Yeah. Because yeah, we normally only get fuel like two to three times a year. >> That's what I figured. I'm I'm hoping that we have enough to >> [laughter] >> get through the get us over the hump. >> That's a good point. Yeah. It's $5 a gallon. I know. Yeah. And back to the local sources in '29. So, basically that is a a result of SEA 1. That they were going to phase that property tax for 3 years. That was the
020local the local income tax. >> Yes. Yes. Okay. Yeah. Um So, the big thing that So, this this um scenario that is printed out as is the education fund all by itself, not looking at anything that with the referendum money. Okay. So, you can see how it's performing by itself. >> Yes. And so, if you look in the peach like line, the surplus deficit, you know, we are overspending $1.4 million of what we're bringing in. And then you can see how that just increases by 2031, we're $6 million overspending. And so that I guess that's the biggest key thing I want everybody to understand is the education fund is not performing on its [clears throat] own, you know. So and I mean virtually then we'll have to start probably cutting programs and stuff if we
021don't have that. >> don't have the referendum. Because you can see at the end of 28, we're out of cash balance. You know, we can get through to 28 with our cash balance, but then we have a negative $380,000 projected ending fund balance in 28. So we, you know, without the referendum, we'd have to make drastic cuts. >> Mhm. And and on that curriculum like the re you know, the re um introduction of new curriculum, is that mandated that we do that every so often or is that just really standard procedure to to increase or update the materials with? Um the answer is yes. And typically it is just good practice and best practice to cycle through every five or six years. That has been the tradition for decades. You know, you remember that. Um
022so and then then it wasn't. And so a lot of times we would just sit on the curriculum because not a lot changed. However, then there was the requirement for the science of reading. Mhm. >> So no longer could you just buy any reading materials. There was an approved list. And what I am thinking is that that they may do more of that like with the math. So [clears throat] sometimes it's mandated and you don't have a choice. Well and it it probably helps align with what the standardized testing is and the requirements for graduation and right, that's the diploma. Mhm. Okay. But the curriculum materials I'm telling you I've been to a few meetings in the last couple months and they're all talking about too much screen time and maybe doing away with the
023the Google Chromebooks. Well, that's I don't know what the book company's going to do because that's almost our only choice. Yeah. So, there could be a whole new paradigm shift. You just don't know. And the I mean Yeah, I I kind of like that because I don't love everything on screens, especially when you hear somebody has a concussion. The first thing they say is don't look at the screen. So, you know it affects your brains, right? But um But that increases like the cost will be increased, right? Because we got to print everything out. >> Yes. So, I I don't think it will have an effect on I think our curriculum materials are always going to be uh significant. Yeah. Um and then with the referendum uh dollars here we are we are lucky to
024have the referendum dollars to support. And yes, we will need to make cuts. But we are every year thinking about if we need extra teachers. So, right now we're talking about staffing for next year. And if there's a chance that we if somebody resigns and we don't need them, then we will not fill. So, it's not the same as cutting, but we're not automatically Yeah. >> just plugging in. But but there will be a time when we may have to just have to cut. Yeah. So, that's That's the picture of the education fund without the referendum funding. Um And then the next page is just the graph showing you the our cash balance plummeting down. Now, >> [laughter] >> didn't Brock share this at our fall work session or summer Um I did look at
025So, when when they came last um last August when Brock came and presented or whatever. And so, I looked at his projection their projections compared to what mine were and they were pretty similar so. Yeah, that's good. >> So yeah, so there it's pretty accurate with what they projected also. So then I wanted to you know to show okay, let's look at at the education fund with the referendum and see where we're at. Um so this is um so the next one it just says education fund at the top. Um so that's where you can see if we transfer money over to the referendum from the referendum fund to the education fund each year to help support it. You can see um that at the end of 2031 we are transferring almost 6.2 million dollars
026from the referendum to that because we'll have a cash balance in the referendum. And the ending um fund balance is about 4 million dollars which is right around where our 20% target that we want to target our um cash balance. And then um the next page is the referendum so you can see where the money coming in for um 26, 27 and 28 and then as I'm I just assumed in this thing because we don't know if the referendum's going to pass or not in 28 that you know we didn't get any more funding just to see how far that balance that we have in there will get us. Um and so you can see at the end of 2030 we would have um 3.6 million in the referendum fund which would not support 32.
027Cuz we're at we're needing 6 million 6.2 in um 31 without any cuts so that would be assuming we don't reduce any staff. This is everything status quo. Um So I wanted you guys to be you know have information too. So, we have time to make a plan, you know, either either way. And then, do you do you foresee even if we have the referendum fund renewed, do you foresee any need to follow attrition then reducing staff by that method? I I think we I think we do need to look at that. I I I think I'm hearing you say how are you asking how heavy I would look at attrition? Yes. Yes, I would say heavy. And I say that because to me, >> [laughter] >> it's it's [clears throat] not very prudent to
028keep excess staff when we when we don't need to because some some of those staff and services, the counseling services, the school resource, those those programs that we need we need those to stay and when we have um courses that we we can't support and if somebody's resigning, then we're not, you know, we're not dealing with livelihoods, we are just being prudent. So, like, for instance, um at the high school right now, I think there might be a a teacher who might be uh resigning or want to do a half day and coincidentally, we don't need her services all day long because and so, that is a good way to do it without [clears throat] riffing. And is that kind of a result of the declining enrollment? It is and and some of it's declining
029enrollment and some is what courses they're taking, but it is a direct to the declining enrollment. We look at kindergarten and yes, but there's so many offerings and you have a small student population. You may have three kids in this class and four kids in this class. Right. >> But Yeah. >> have if a teacher one teacher's doing this one, one teacher's doing that one, I mean, do, you know, how can we can do that? And we're looking at kindergarten enrollment right now. So, we um had kindergarten round up and so now we're looking at the numbers and if we don't need uh a section here, maybe we need a section over there or if somebody resigns, then we will shift. And so, right now we're heavy in town. We just had a meeting this
030morning on staffing. I I think it's our job to to do that and not wait until we have to cut. >> Yeah. Yeah, I I would >> [cough] >> Now, that that can be bothersome for some teachers because um they worry about, okay, if we get to if I only have four kids and my program's going away. We don't want the program to go away. >> Yeah, no. But but we need to be cognizant of numbers. Mhm. I mean, that's why we've been able to support those low numbers with that additional funding. Right. I mean, we'd like to maintain that, but also, you know, not have six teachers on staff that have four students in each class. So, you know, how can you best use them? Maybe they don't you know, maybe their services are
031utilized differently than they are not necessarily they're gotten rid of or but Right. Being strategic with how they service. And And to be honest, the BEA is very aware of this. I mean, we we talk about this. So, it's not like they're in the dark Yeah. >> [cough] [clears throat] >> Okay, so it's sunny and bright with the referendum to say, you know. And it's Scott, that's a good question because that to me is my job and that's the principal's job. I think that is our You you need to believe that we are keeping an eye on student-to-teacher ratios and programs. So, they're like a constant. >> [cough] >> Basically, right? Yeah. And then every year, right after Christmas, we start talking about next year. And that's what we use as numbers. Yeah. Um the
032next two pages are just some graphs that I just illustrating basically what this numbers were that we just discussed. Um where you can see the revenue amount and expense and then where the cash balance would be. Um and then the next one just shows you like what the ref- you know, with the referendum where the education cash balances and without it, you know. And like we already discussed. Um you know, it'll be depleted by the end of 2028. So, does anybody have any other questions on the education part? If not, well, we can move on to the operations. No questions here? All right. Uh so, then again, with the operations, just kind of what what's the expenditures that come out of that, you know, it's basically the this office, the central office, custodial maintenance, transportation,
033uh you know, and all of our operational supply type stuff. And the main source of revenue for the operation fund is the local property taxes, which will be affected greatly by the SEA 1 bill. Um the projections for the operations fund on the next page, um basically same assumptions on the salary benefits for staff and um put in a 5% increase for the utility costs, um 6% on the property and casualty, uh put in 2% for like uh increase in costs for repairs on the buildings, equipment, and the supplies. Um I did talk to Jennifer and we did [clears throat] adjust the 5-year school bus replacement plan. Um she is going, you know, in the process and going to try to reduce our bus fleet. Um so, in our five-year plan that we had advertised
034last year in '26, there were some years that we had replacing four buses and some five. Um, after talking with her, we're going to change it to just replace three buses each year. Um, as she you know, you know, transitions into getting rid of some of the buses. So, basically what we'll do is either like this in the past we've sold the old buses or we've used them as trade-ins. We kind of look to see how much more where we can get more. Um, uh, more funding. Are we still kind of on a 12-year cycle or something? >> Yeah. Yeah, 12 years cycle. That was um, um, there's uh, and then I maintained um, the current level of capital projects expenses at um, basically what we have this year was which was approximately 1.2 million
035dollars. So, I put that level in there spending. Um, after talking with Brock on Friday, he recommended that uh, because we don't know what's going on with the SA1 bill and how that's going to affect our AV that for the assumptions that we should use um, the 2026 assessed value rate um, and assume that just stays flat over the next five years. Um, but I did so the Indiana Coalition for Public Education, you know, on their website if you go to their website, you know, they have each of the schools and what they have calculated the losses are going to be to each school. And so they have in their estimates have calculated that we're to lose 2.3 million dollars across the three years. Um, so uh, I didn't I didn't put that in there
036because like Brock said just leave the AV flat for these projections because we just don't know what it is. It could be less, it could be more. Um, um, so he thought it would be more realistic to just um, look at the AV as being flat. So, I also put um increased the um levy for our operations 4%. So, in the past um that was the max. The It's the maximum levy growth quotient formula um and the max that you could go up would be 4%. They are They are getting rid of that um that threshold that and I think you can go up as far as you know you can go or whatever, I guess. Um but I put in a 4% increase cuz that's what we've been getting over the last few years
037is we've been increasing it by 4%. Um and I maintained all of the other revenue um miscellaneous revenue is is the same. So, we're still you know we're still unsure of the full effect that SEA 1 bill is going to have on our operations fund. Um like I said earlier, Baker Tilly is um working with corporations. So, if we want to talk with them about that um and maybe then doing an analysis on ours so that we kind of know better plan of you know what's going to happen and how we're going to be affected. Um I also Frontline who we have you know are we using as our budget management software stuff now that does our my monthly reports. I talked to my advisor with them and he they Frontline is actually working with
038Baker Tilly to have some you know like an uh a system in built into the software whatever where we can put our numbers in and it will estimate for us the effect. So, we got to got two options. They're just not available yet right now. Um Friday Broxton it would probably be a month or more before they would be able to analyze ours because they're doing other people's um currently. So, it's just something we probably should look at and best do. And wait and see maybe if we can get it through our Frontline software first or free. Yeah. Or included with what we're paying for. Yeah. Um So, then uh Okay. the operations um fund, looking at that also. So, this is just like a summary of the um the forecast. So, by keeping increasing
039the levy by 4% and, you know, pretty much increasing those expenses like we talked about, um we, you know, pretty much can maintain the 20% cash balance that we like to have um over all 5 years. Um so, this is probably the best case scenario um is assuming that we get the 4% and the AV doesn't, you know, decline. Um so, I'm not optimistic that this is going to be, you know, um all this rosy. That's um but, you know, it does look like we'll be able to maintain if we can keep that 4% and if we keep our expenses, you know, basically where they're at now. Um but, that doesn't give us a lot of We don't have a lot of room in the operations fund and for major projects because that $1.2 million
040takes care of basically the maintenance stuff that we do, the asphalt, the painting, the roof repairs, all of that. So, you know, because of that then we'll have to depend on the geo bonds and those type of things to help pay for those other things. You know, we don't really have any any extra money to accumulate for future projects in the operations because it's basically being spent on all of those fixed costs and those basically what I consider fixed and capital projects and things that we, you know, need to do each year to maintain the buildings. Um And then, I just wanted Oh, I also wanted to let you guys know that cuz like in this um system it it names them both the same. I don't know why. Um the threes and fours are
041the purchase services. So, the first line of the other the 1.7 in the first, that's that's the repairs and maintenance. It's got our water and sewage in there and any like construction cost type things. And then the the second one, the 490, that's our insurance, our property and casualty insurance and like the communications that we have to pay for, like the internet and that type of stuff, and the travel accounts. So, I just wanted to give you guys the details on that. But regardless of the >> [clears throat] >> SEA one and the the effects from that tax thing, the capital projects fund has never been enough to to really do major work. That's why we've always using GO bonds and that has been helpful and that's what most schools need to do. Especially with
042the cost of things these days. Can't get much for $2 million. >> Yeah. And then the next is just a bar graph that shows you like expenses, revenue, and then the cash balance. See, the cash balance pretty much is maintained right there at the 20%. Um that we So, we want to keep it up. So, that's all I have on the operations at this point. Does anybody have any questions? Again, the biggest thing with operations is the effect of that SEA one bill. Um and so, we're kind of just going to wait and see. Um we do have our annual conference um ASBO conference this week. So, I'm hoping that we find some information out from the state legislators or the organizations that'll be there. So, at least help us figure out how we're supposed
043to plan going forward. It is interesting they shifted it and then moved it. Yes. Yeah, still too many unknowns for them to even put it in place. >> Yes. So, Brock says that he thinks it's because the legislators didn't realize all of the unintended consequences. And so, that's why they pushed down to 29 and they're still trying to figure it out. >> [laughter] >> Yeah, imagine. So >> imagine nothing changing because as as much as it's hurting everyone statewide. Yeah. I just can't fathom they would let that happen. I'm sure they're getting a lot of chatter from their Yeah. and their various school corporations. Yeah, yeah. And some are already making cuts. Some are >> I seen like in those communications we get from any of the school board. Like there's announcements of like Brownsburg,
044Hamilton, Southeastern, Westfield. >> how much money they're losing. If we're we're a small corporation and we're losing 2.3 million or or projected to lose that. You know, so I can't imagine what they're Yeah. And a lot of them have like brand new you know, buildings they just built built and now how they're going to maintain those. And so then another thing we wanted to talk about was the debt service fund. Um talking about you know, basically we wanted to look at Annette and I had a meeting with Ice Miller and Baker Tilly earlier and you know, Baker Tilly had done up I gave you guys all a little their presentation. But basically just did a recap of what our existing you know, debt service is looking at and the payments and when they're you know,
045when these the debts are coming off. And then [snorts] also it shows the calculation of our general obligation debt capacity. So basically how much money we can you know, do in geo bonds. Um the maximum amount not saying that that's what we should do. Um and then if we were to do one, Ice Miller did up a table like a timetable of when we would need to do things. obviously, if we're going to uh issue a geo bond at the end of this um calendar year. Um but I know and I was going to talk about um the capital projects and equipment needs that we're Yeah. Still have. You want me to Yep. Okay, so the debt service fund is important, as you know, because this is how we get those projects done. Capital projects
046is I hate to say it, but it's small peanuts, as I just said. So, the use of geo bonds and lease rental bonds is what we have done. And um so it's to me it's it's wise to use them. We just finished the lease rental of of the three projects that we're doing now. But what I see from the list of Stacy's spreadsheet, remember the mechanical, electrical, and plumbing? If I look at that spreadsheet, and if you guys recall that there are some items that need to be done pretty pretty quickly or or soon, which would include fire alarm systems, um some chillers. And so, those things look to be around $3 million. Okay? Okay, so if we prioritize, then we would we would like to uh to do those projects, $3 million. Well, we
047don't have that in capital projects. That would be something that we would take out debt for. Um so, those are the things that we we look at. Do we take out 3 million? Do we do 4 million? Do we um do the full capacity at 10? Um there's some strategy there that we will need to decide. Um we also need to really get a handle on explaining to the public all of these budgeting issues in a way that they understand. Um what what is the debt service for? What what are we going to do with the referendum? What's the tax rate mean? And so we want to make sure that we share with them, but but we can't go in the weeds. It's so it's so difficult. So I think we need to be very
048very strategic in I don't what the referendum is paying for, what will happen if we don't pass a referendum, what uh debt service is paying for, what we need to to purchase here in the next uh 5 to to 10 years based on Stacy's worksheet. So um and all of that also matters because then we need to um and I know that's operations, but in the end I'm just talking about our whole budget. We want to be competitive with our salaries, and so we need to plan for our negotiations coming up in the next year or so. So we need to make some decisions, and we need to make sure that our community understands it. Yeah. Um so the GO bonds, that would be a good use of for the the fire alarm systems and
049the chillers. I I I think that's a good use of that. I want to make sure though that the community understands what the debt service fund is being used for. Yeah. Yeah. And like you know, Stacy's assessment or the the company's mechanical evaluation, that also aligns with what Ryan and team have passed also you know, noticed or communicated that yeah, they are in agreement with the with those items being needs attention >> All of these were you know, we've had about two or three work sessions on on prioritizing these with Ryan and his team and with Stacy and Tech Tom. So, it's not like we pulled these out of the air. >> Yeah. No. And trying to be proactive with some of these instead of a it's system down and now it's in a emergency
050and you have to get on somebody's um you know, in the somebody's work like they already have scheduled work. So, you got to bump up that cost money to go Yeah. That way it's not really how you want to do it. So, And I also I I want to say I think our school schools and the entire campus I think we have a nice safe secure campus. And I know some people think oh we don't need that stuff. Yes, we do. That is conducive to learning and safety. It's a good thing for our school corporation. So, keeping a balance of main- maintaining our facilities is important. Yeah. I mean, you want to make sure you want to feel good about sending your kids into a building that has uh equipment that you know, operates appropriately
051and like alarms that go off when needed. Yeah. Yeah. So, there's a strategy here that we we will need to to figure out. Well, and if we didn't use the geo bonds for like the chillers and the fire system and an emergency situation comes up with the chillers and now we have to replace them or take we'd be then having to take money from the capital projects which is really just for maintenance of everything else. So, then our buildings are going to start to go down. Depleting our cash reserves. Yes. For things that we knew Yeah. were going to be addressed. And so, I think it is a bit negligent to to have our priorities listed here and say, oh we'll just wait till it happens. It's Yeah. Well, we did that for a while
052and we got we got in a bad situation. Right. And it cost cost a lot to get out of that. >> Right. And so, it. you stay on a cycle of your priorities and then you and it can fit within your budget and and the debt service fund, that's what [clears throat] it's for. And it can't be those can't be used for things that the referendum can be used for and I think that's the confusion is well, why aren't we using that money to pay for programs that can be used for them. So, I think that's the other, you know, Mhm. And that's hard to understand and it's it's also a philosophical disconnect to some. Um that's why I think it's really really important that we lay out our priorities and what we're going to
053do in a way that is easy to understand and that is out there. That's clear. Yes. >> Yes. I mean, yeah, that's our our whole purpose is to be transparent with what we're doing. Right. And if we're transparent, then I think we're okay with some disagreements as long as we we've held true to what we said we're going to do. >> Yeah. And having an assessment and creating a priority list just to to stay on the list is not Yeah. is not Well, yeah, understanding that there's been you know, work and input from various agencies or not really agencies, but you know, different people to to make this decision. It's not this you know, what what do you think sounds good? Just some random number. I mean, we put a lot of thought into Yeah.
054taking all those factors into consideration. So, I would say that I agree [clears throat] with Tracy. So, whether it is Frontline Analytics or Baker Tilly, I think we need to throw these scenarios in with keeping up with our priorities and um trying to figure out if we're ready if the referendum doesn't pass or if it does pass, then we know what it pays for. So, there's a lot of strategy here in the next year or two. And if Analytics, I don't want to say it's free, but it's part of the package we pay for. Um if they can run the analytics, I would do it I would let it let them run it. I think I agree. And they've got I mean I can see it um and I can see portions of it. So
055they have it in cuz you know it's the three different pots, the 1% 2% 3% I think. And then the property tax or the personal property is that what it is, yeah. Personal like your equipment I guess or something. Um so they have it all built in there. They just are trying to work with different people, you know, Baker Tilly and the state and making sure that they have it set up properly. So they've somehow gotten what each of those, you know, each person's property and where where they fall in that one, two, and three. You know, they probably got them purchased it from some company or whatever. Um so I mean I know our advisor at um Frontline, he told me on Friday that um he has a meeting this week about it. So
056they're hoping to have it finalized in the next couple weeks. So Are they national? They are. So they got to [clears throat] deal with every state individually? >> Yes. Yes. Yeah. Excuse me. That would be Yeah, so my advisor, he has all the different states And so I think he has Ohio and Illinois I guess or Indiana or he has Ohio and Indiana or whatever, but yeah. And we're a rare breed here in Indiana. >> [laughter] >> But but it would be safe to say that we could have some some good information uh as a board for our um summer board retreat then Definitely. to help make some decisions. Yeah. And when do they when does that probably need to be made officially for For the geo bond? They gave us this one this summer,
057but I know it can be pushed back. By November for sure. >> Yeah, by November. And that's late, but but that's why I think this summer in June that'll be the ideal time. Yes, so November 17th and one. I mean and if you look at this too, this is they have a lot of good information on this about, you know, basically the maximum amounts that you can you know, you can bond for on the different types of bonds and stuff, so On the assumptions. Yeah, pretty good information. By Ice Miller. Cuz geo bonds there's a capacity based on our assessed value and already debt out [snorts] there. And they also now have cooling off periods. They're trying to avoid just continual general obligation bonds. Okay. And then the last thing we wanted to talk to
058you guys about is our building over here by Dollar General. Yes, so we know that the building out at BC that's going to be complete in August to take care of some of the excess storage that we have and we're also going to have this summer we're going to empty out this building and as you know, we are in the preliminary stages of working with economic development Leticia Provo and possibly getting a daycare center using that space and so if and when that happens and we'll know here in the next month or two, um that that will change how that building would be used, but it would be a really really good community source. And so um when that building if when that's empty and when we know what we're using it for, remember we're
059going to take on some of that storage and the record retentions and things over here. Um I'll just need to keep you posted on on what that looks like, but I think that's a really good use could be a good use for the community. Yes. And is that is that grant firm? The grant is firm for Leticia and the economic development. So she has been awarded like a $200,000 grant. So what we can do is based on the schematics and what needs to be done over there, that that won't be enough to renovate, but we have some BP community impact money from from even before my time that is close to $200,000 that I think could be a good use of that community impact money and together that should be able to be enough for
060the renovations. Yeah. And we would still own the building, right? We would still own the building. Yes. I wonder if the the foundation could give any grant additional grant money, too. They may be able to. And so what we could do is once once they have the drawings done Yeah. and we give those drawings to Tekton to see a a cost estimate, then we'll then we'll know are we in the ballpark or do we need to seek additional. Yes. And Leticia is working with community people with daycare and So it's all in the works right now, but so far it's been positive. But yes, good question. We would still own the building. And then we would serve as um we would lease it. Mhm. And then Leticia would put out RFPs for potential daycare. She
061would handle that part of it. We would be the the owner of the building and maintain it. Could there be something um I don't want to say priority wise, but for like staff. Um some kind of a I don't know what you would call it, like a like BCSC staff would get first. Yeah. For um So like at the daycare? Yeah, there could be. Now, that some schools will put that into the negotiations. And so that would be something that we we could negotiate. Um I know that Tracy made a good suggestion, too. It may be worth Benton Community Schools sending a bus from the daycare out to the preschool out at Benton Community. So there are a lot of things that we can do to help support not only staff, but Yeah, so. Once
062we kind of get the logistics going. Okay, yeah. But now, it is a daycare, so it is not a preschool. Yes. Yes. So just wanted to kind of keep you aware of that. Now, remember though, once that storage, once we claim that, we'll have this building to look a little different. We have our record boxes and our paper, and we'll we'll handle that. Yeah. So that's all I have for now. That's all I have. Anything else for the work session? I think we're good. No, a lot of good information and sit and wait for the state to figure out what they're going to make us do. I know. I like you for the detailed paperwork. Yeah. Yep, thank you. I will tell you that I appreciate that.