001Thank you. Um, okay. We're getting ready to start our um board of finance meeting and um just an annual meeting that we have to have and currently I am the president Ali Sh and the secretary is Amy Cotamp and we have to um Oh, sorry. I'm moving ahead. We are just going to go ahead and um call the meeting to order. Since we're following another meeting, we do not have to redo the pledge of allegiance. So, we're do Okay. All right. And we have our same quorum as our regular board meeting minute meeting that we just had. So, we have Amy Cotamp, Poly Shown, Chris Dalton, and Scott Robertson present. and uh have nothing to add to the agenda. So, if I can get a motion for approving the agenda as is, >> I'll make
002a motion to approve the board finance agenda as stated. >> I'll second. >> Okay. And all those in favor for approving the agenda, please say I. >> And oppose, same sign. All right. So now we do have to reelect officers um for the 2026 year. >> Anybody wants to make a motion? >> I'll make a motion to keep off the same finance committee. >> I'm fine with that. >> All right. So um any other discussion? All right. All those in favor for um continuing with um the current board of officers for the finance um board, please say I. I oppose. Same sign. >> And um so for our routine matters, we have A1 and Tracy is going to uh give us a little breakdown here. She's giving us some packets. Um yes. So the first
003item is to review our investments that we made in uh the calendar year 2025. So from your packet the um a summary of our CDs that we have with Farmers and Merchants Bank which we made $414,562 on interest for the CDs in our sweep account which is our main checking account that we have at Farmers and Merchants Bank. The interest we made on that was 190,720. And then we do have the money that's at the huer fund at the state that we have investments in and we made $300,257 there. So we made just under or just over $900,000 for the year which is pretty good. Um and if you remember like if just in comparison in 2022 we had made 138,000. Um so we're doing well with that. Um and we We do have uh
004six million, you know, we put $6 million at Her Fund, so that's what's there making u interest for us there. And then we have $8 million in CDs at Farmers and Merchants Bank. U Dr. Zupin and I did meet with the bank president um a couple weeks ago or right before break, right? >> Yeah, right before break >> and we kind of discussed um our investments because kind of how things have happened over the last few years. As you can see on this, almost all of them but one are coming due on the same date. And we before u we had them staggered so that they were coming due every six months, a couple of them. So he's going to work on doing something like that for us again. um because just how all of
005the um we set this up several years ago with the CDs and in that time period, you know, they weren't the bank wasn't maybe wanting to do 24s or you know, it wasn't in our best interest to do 24 months and stuff like that. So that's how the staggering kind of went away. Um so he's going to look at something like that to see if we can't kind of get them more staggered again. We used to have a couple coming due every April and every um October. So basically every six months we'd have like a couple coming due instead of all of them at once. >> So once they kind of come back with that, we'll bring that to you guys. Um >> so since the who's your fund seems to be doing so well,
006would we want to move? Can we move more over there? Is that an option? >> We we did and we had some and then the bank um called us and asked if we would move some back and gave us a higher interest rate. Gave us what we were making at Hooser Fund. So >> okay, >> we went ahead and moved that back. They also asked us to uh we were going to move some more in the fall and they um I notified them and told them that we were going to be you know moving that and then they came back and asked if we would leave only move half of what we were planning on doing and they gave us um they matched what hu your fund and gave us a CD and actually that's
007worked out our favor because h your fund rate has dropped and that CD has stayed you know the 4.25 25. >> Okay. >> So, >> next I'm asking for a little extra. >> It's nice to >> leverage it. But I mean, yeah. >> Yeah. >> No, that's great. >> Are those fixed rates or like annually? Do they change or >> if they're 24 months for two years, right? Sorry on that spot. >> Yeah. Okay. Is this is this rate that Farmers of Merchants gives is that a public rate or is that a special rate for us? >> I would assume it's a special rate for us, but I can't speak on that. I'm not positive >> because I've seen local banks do this. >> Okay. >> So, >> well, when you got that much money,
008>> right? >> Yeah, I understand. That's a big deciding factor. Okay. >> Um, so that's it on investments. has any questions? >> Then we also need to review our investment policy. Dr. Zupin and I are not making any recommendations to change anything to the policy. So unless um one of you would like to see something change >> and hasn't recommended anything either. So >> yeah, so nothing's came down from the state or anything with any changes. So um it's basically, you know, just highlight that we're we can't exceed two years in CDs. you can't exceed too much >> and uh you know just it's just the basic >> policy of how we're supposed to >> and so then we're down to the reviewer or financial condition of corporation. So I have um a little bit
009to talk about and then um Dr. Zupin has her duab report to go over also. Um, so first thing I just wanted to, you know, point out is the rain day summary. I usually give you guys that at the end of the year each year. So, and it's from conception. So, you can see where the money's been used, you know, over the years on the different things. We currently in the last several years is all we use it on is for teacher professional development. Um, and so again, that's what we used it for on in 2025. So that basically pays for substitutes and um conference fees if there is conference fees for some of the teachers and stuff that attend those. So we um spent 31,000 146 and 25 from the Brady Danny fund for
010those professional development things. Um nobody has any questions on that. That's the fun that once it's gone, it's gone, >> right? I mean you can replenish it, but I mean you can move money from your education and your operations fund into it but >> really now back when it was started it was you couldn't move funds you couldn't move money between funds >> the only way if you had extra money in like back then it was capital projects transportation bus replacement if you had extra money in those funds and wanted to use it for the general fund which was basically you know our current education fund you couldn't move it from that fund over the only way to get it there to help was to move it to rainy day fund and then you could
011use it for >> took a resolution and >> right takes resolutions and transfers. Well, you haven't transferred any money in there since 2012. >> Um and now that there you can move money back and forth. That's unless you're just wanting to put it there. If you're really wanting to use it for the education fund, we'll just move it to the education fund, you know. >> Yeah. >> So, >> and that's kind of what it's being used for, >> right? It's currently just being used. Yeah. for education fund expenses >> and that number in 25 is higher than 24 and 23 but remember we have all new curriculum and so that took some training that that you supported with the PD >> yeah discipline summer last summer >> the conscious discipline is a grant >> okay
012that's good to know >> but yeah the math and that in the summertime last year whenever teachers attended And um this is a fund so it doesn't have any interest or >> well so it's all invested you know so like all of this right here >> part of >> as part of it okay that >> but I don't we do not deposit any interest to this we give the interest to the education fund operations fund the severance fund which is the fund that um when we did the um help me Scott when we had to do those oh no yeah pension bond. >> When we did the pension bond, we had to set up the severance bond um as part of that and that is to pay for the teachers sick days when they retire.
013>> And so we do and use that money invested and put whatever it's supposed to get of its share of the interest into that to keep that fund going. >> Yeah. >> Um so we put it in uh the education operations that fund and then the cafeteria you have to give the cafeteria. It's federal fund, so it has to have whatever it earns. >> So down here at the top, just our total current. >> Yeah, that's the current balance as of December 31st. >> Wait, the the one Okay, wait. So the far right one, >> right? >> The cash fund cash balance. >> Okay. All right. Sure. up here is just history of how it got >> correct of where it came from. You know, those are the funds that it came from. So, the
014majority of it came from the moving the cash balance out of the debt service until the state stopped. So, that's that. And then the other packet is it's basically your your normal um monthly reports, but uh just kind of wanted to go through the actual review of it and talk about some of the things um of how the full calendar year, the year-to- date review. Um our interest um broad investments increased by $105,000 over 2024. So when I'm talking about as it being increased, it's it's being compared to calendar year 24 and calendar year 25. U the other revenue when you look at your reports, it's um it's increased from the previous years because of this is the full first year that we got a full year of the Little Prairie preschool because remember we
015took over that preschool >> in the fall of 24 and started receiving that tuition. Um and so then now in 25 we that was a full year of receiving that. So that's why you see that big jump on your report um that it's uh higher um than the previous year. And then our state revenue go >> when you say the tuition for this is that from the state or that from >> No, we don't get anything from the state. That's from the parents. Okay. Because remember they used to be fully self-funded and they took care of everything and then you know it's that when we met like Bri was doing a lot um outside of you know work taking care of you know collecting the money and everything like she had a board but they
016weren't really a working board. They didn't help with the stuff. So we in the end we all decided that we would take that program over and so now she's paid out of the she was always paid out of the or the tuition >> tuition and the tuition goes in there and actually we're getting ready to look at that. Um I told Cy once I got done with all the year end stuff that we would look at it because we'll have a full year of getting the tuition and the expenses and see if we need to raise the tuition because they're getting ready to update their handbook and everything and send that to the parents so they want to know if we want to. So that we may be bringing that to you guys about raising
017the tuition in the next month or two, but I want to take a look at it and analyze it. next year. >> Yeah. For 20 for this fall. >> Fall 26. >> Yeah. If they if they do, can you have them give us like when's the last time that we we raised it? >> Has all >> Yeah. So like But like just share it with us. So if we're making a >> Yeah. We're making a decision. It kind of helps us. >> Yeah. Yeah. >> So So yeah. So that's where the um why the other revenue is um increased over 24. Then if you look at your state revenue, you know, it pretty much is the same as uh it's a little bit it's slightly decreased from 2024 and that's due to the incline the
018declining enrollment. You know, the state increased the per student funding from fiscal year 24 to fiscal year 25 by about $1,000 per student. But you know our students went down so we didn't get that. They also increased the basic grant. They added that money for the curriculum materials. But even though we have all that more expense, we have less money from the state because of our stu you know we've lost the students. Um and if you we've actually so basically we received $31,250 $53 less in calendar year 25 than we did in calendar year 24 from a basic grant from the state. Even though they increased the funding to it, you know, >> because of our enrollment. >> When you say they increased the funding, you said it's about a thousand, but this shows only
019about a hundred. >> Oh, yeah. I guess. Sorry. >> So, I mean, that's barely anything. Is that really thousand? >> Might be a typo. Okay. Because I think it was a thousand >> in your >> in my head when I was typing. >> I didn't think it was that much. I didn't think I didn't think they increased it that much. >> Maybe it is. Maybe. nuts. >> Yeah, I think I don't think it >> maybe that is right, but then maybe it doesn't typo. I don't know why I had my head a thousand. >> You wish. >> Yeah, that's probably >> that's what it needed to be. >> It was. >> Yeah, I'll have to double check. But you're probably right. >> Yeah, >> but in theory, the tuition support increased and we'll find out
020from what amount, but our enrollment decline, right? Okay. And so since 2020 21 2021 school year, you know, we've decreased by 164 students. And you'll I gave you like a summary of our enrollment. And you can see what it is at each of the schools and how much it went down each year. Um in 23 24 we went up 11 kids, but then went back down 25. Um, so over that six-year period, we've decreased 164 students overall. >> I think when Brock was here in his presentation showed us though that the um the number of school eligible kids is decreasing%. So it's it's >> it's not because Oh, yeah. I'm not all I'm not indicating that these students are going somewhere else and we just don't have the students. We don't have the kids in
021the county. I mean there are some that go in or out or whatever but >> but that's not the problem. The problem is the population. >> We have an older population and not you know younger kids. Uh and then we did you saw in the vouchers that you just approved or whatever at the regular meeting that we transferred their one point or 2.1 million from uh the referendum form to the education fund to support the programs. So that's kind of just an overview of, you know, some key points um for the revenue for 2025. Does anybody got any questions? And then I'll move to the expenses if we're all with that. U so then to review the you know the expenses, the increase from 24 to 25 is basically salaries and benefits. It went up
022almost $900,000 and you know that's from our raises that we gave the um staff. You can see the average um raise for 2425 was 3.85% and 2526 was 5% and that included the raise to the base and the increment you know those averages. Um we also increased the insurance or we had insurance premium increases. They weren't large like this last year was only 2%. But we also increased how much we were paying you know um for the single and the family plans. So um and we we really only saw that effect for three months. We'll see that full effect in 26. Um, another the big the biggest thing and you know actually what we spent and other supplies and stuff really kind of went down because the purchase services and supplies increased by $76,000 compared
023to um 24 but $743 $861 of that was for curriculum materials that used to come up on its own fund that the state now moved into the education fund and added funding to the state grant that we got less in to pay for that. >> And really that those curriculum materials, the majority of probably that amount is like over a six-year contract. Not contract, but is it like a the curriculum programming and it like >> No, you have to pay that upfront. Like that's that was how the parents were. The parents would pay us. >> But no, I mean, so we paid up front, but like we won't probably be doing that again for another six years, >> right? academic. We're going to do social studies or science this year. >> Sometimes there are other
024subjects. >> Now, I will say that your math and your language arts, I will call those series where they have lots of materials. >> So, those are usually our most expensive. >> So, yeah. So, hopefully we won't have that kind of >> Yeah. Right. It'll really It just depends on what you're adopting. >> Yeah. But also you have to remember that it's not just the textbooks. It's all of those um consumables also that the parents used to be charged for and paying for. So all of those workbooks, all of the stuff that you know there was always like a fee for different classes out of BC when they had to buy food and all that. We're we are supporting that now. >> Yeah. >> So >> and that's because the state's requiring >> correct? >>
025Yes. Yeah, you can't charge additional for >> the only thing we can charge for is PE forms. >> Yeah, I was thinking that changed, but I guess >> well they said no and they went back and >> but I think it's only for seventh and eighth grade >> because I think that's only they only require in seventh and eighth grade after that require the uniforms. Uh so those that's the biggest you know obviously the education fund is mainly salaries and benefits for our staff. Um but the purchase services went up so much because of the curriculum materials >> and that was mainly the CKLA >> for this >> Y. So that's the whole reading series. Yeah. >> And then when you just like kind of summarize it with the cash balance to see where the
026cash balance is. Um, you can see we were up 5.8 million. Um, January 1st, the year-to- date revenue was 15.1. The year's expenses was 16.3. So, we actually over spent what we brought in $1.1 million. And then we transferred the referendum funding over and so we ended up with $6.8 million balance on December 31st for 25 in the education fund. So just kind of thinking referendum like that's probably a pattern that's going to just keep continuing the being of almost a million over spending because of the state. >> We're actually kind of back to where we were because you know it kind of changed because of all the money that we got from Esser. >> Yeah. >> And that stuff we were getting funding and so we really weren't overspending what we had projected. >>
027Yes. you know, at the beginning, like in the first eight years, that's why the referendum balance is has in that fund, we haven't had to use as much, but now we're going back now that all that ESSER money and all that stuff is finally gone and we're starting to >> see the I mean back to a bigger number. >> So, it does show that we're using the referendum dollars for the the programs. Yeah. Um, and it should show that we need it to continue with our good programs. Um, and that's easily seen now because the ESRE's money and all of that is not >> in play. So, we're getting a taste of of what we're using that referendum money for >> and that yeah, if we don't have salaries and benefits, I mean, that's getting
028rid of people and programs, you know, you down the road. And now the salaries and benefits that we did uh provide them um that's a competitive we have a competitive wage and so we can we can hopefully attract and that's retain >> and that's what's important too. So the referendum dollars are being used for good things. >> Yeah. Plus, $743,000 isn't, you know, a small amount to spend on curriculum. And that's that's been tested and um shows results for, you know, the people that have been using that their schools that have that curriculum series have shown good results. I think it's um even we've seen some examples where they've shown what they were teaching in that the students are seeing good results. So hopefully that >> should pay off. >> Should show up in our
029>> testing our >> um so then on to the operations fund. Um the our property tax revenue was up um about 530,000 from calendar year 24. That's due to an increase in AV, you know. So, our AV went upund basically $180 million, but our actual tax rate for calendar year 25 was three cents less than it was in 24. So, you know, we did receive more funding because of the increased AV, but we didn't have to raise our tax rate. We were able to actually lower the tax rate in 25 compared to 24 because of the increase in AV. >> And we have no control over I mean the assessed value is >> right. We don't have any control over this >> thing that we can do. >> Yeah. >> Uh and then just wanted
030to note that that other revenue if you look on your reports and the bar charts and stuff you'll see that in the other revenue for operations fund it looks like that it was increased quite a bit from 24. But basically $415,000 of that was a reimbursement from Bank of New York because you know before the bond sold we had to pay the expenses for the projects um out of the operations fund and then we submitted that once the bond sold and was reimbured. So you'll see the the increase of the expenses on the expense side but also the revenue side you know so it's it washed in and out. >> Yeah. Um and then with the expenses obviously you know actually the um the operations um salary and benefits didn't increase that much around $10,000
031but there's not a lot you know that doesn't have the majority of our employees are paid out of the education fund you know so the operations fund is just your custodial this office staff the custodians and um the bus drivers and obviously we have a lot of bus open bus driving positions so we aren't paying what we normally would have been paying for salaries and benefits for those positions because they're open. I mean, we did decrease the secretary here at the corporation office. So, we didn't have that expense in 25. Um, and then on the salary, sorry, I don't mean stop your thought. Um, the salary and benefits, I know like the admin office, but what about administration at our schools? Is that education? >> Correct. >> Okay. All right. I just had thought so
032but then I remember >> and it's kind of been all over the board. >> Yeah. >> Okay. >> I think at one point they were thinking that they were going to put the principles in operations but they did not do that. >> So okay. >> Uh and then our so the purchase services and supplies increased by $1.8 million which you know that was by design because we had been saving you know money in the cash balance to pay for projects. So that increase included the payments for the track um which the track um ended up you know it was like 1.9 million but we didn't we used some of that bond for it. So that if you're looking at that number and saying well I don't think that's right that's because part of it was
033out of the bond and part of it was out of operations. And then that 415,000 I just talked about those expenses are in there. And then some of our uh projects that we had been accumulating money to do with those carpet projects at all the schools was 300. And then we had our yearly maintenance projects like the asphalt, the miscellaneous painting etc. But the bulk of you know that increased 1.8 million is those projects. Um and then you if you look at the cash balance the review um the year-to-ate revenue was 8.9 million. The year-to- date expenses was 11.3. Obviously we overspent that but that was by design. We had been accumulating that cash in the cash balance to pay for these future projects. Um so our current cash balance is $2.6 6 million and
034it's still a 20 plus U cash balance if you look at it based on our fixed you know fixed fixed costs in the operations fund. So even you know I know it did decrease quite a bit but we wanted it to decrease because we had been you know saving that money for that. Um so we're still have a very healthy cash balance in the operations fund with the 2.6 six at this point >> but it is recommended that we have >> correct you recommended to have at least 20 I mean now say 20 to 25 >> so >> yeah so we're right in where the state and everybody is recommending so >> now before we were well above that because we have that money in there for future projects >> but now we're about we're
035pretty much where they're recommending and And then the debt referendum and rainy day funds. We already talked about the rainy day fund and its balance. The referendum, you know, is used to support the educational programs and the current balance in that is 11.9 at the end of um 2025. Then you know again all the other funds on that fund to bank report um it are if you see some that are in the negative that's because they're reimburseable funds. you have to spend the money and then we send for reimbursement the following month and then the state reimbures us on the 15th and 31st depending on when you submit the claim. Um, and then I did want to point out just so that you know if you're wondering about the balances at here fund in this
036bank to fund report on the very last page it has like the bank names and the balances in each of those and you can see that the CDs you know for the farmers and merchants have as on its own. So if you're ever wondering how many you know how much money we have in CDs at the farmers merchants you can see that. So at the huer fund you can see it has a little over a $7 million balance and we have $6 million there. So it's, you know, over the years has accumulated over a million dollars in interest. Um, as far as the referendum goes, I know it's 2028, but is that like through 2028 or up to 2028? >> Through. So, we'll our last draw will be December of 2028. So, if you wanted
037to continue it, you would have to have it on the ballot in November of 2028. >> That's all I have. Unless anyone has any questions, Dr. Zen can go through hers. Yeah, mine won't take long because Tracy's talked about it. So, I'm probably just going to summarize the first part. It's it's the uh starts with the ADM enrollment. Tracy has talked about the uh declining enrollment. Um truly u a lot of external factors that would be our population. Uh as you said, Rob talked about that. Um and also just want to just remind everybody that the options for students today when you can go virtually um there are some people choosing that. Uh we do monitor if we lose students to other schools but I can tell you that's that's not typically what happens. It's
038uh mobility uh families moving it is choosing virtual or in the population. So but we'll continue to look at that and and uh and understand that. Um, next you'll see the fund balances and this is just what Tracy had uh emphasized just a few minutes ago. You will see that for 2024 that the operations funds dropped lower than maybe other patterns. And again, that was by design. We we knew what we wanted to spend that money on and we did that. So that's that uh chart. Um the next one, fund balances as percent of expenditures. So if you look there in 2024, it says 56.1%. And what that means is is that we could continue operating for 56.1% of the school year with a stop delay revenue. Um and and that's that's uh still pretty
039healthy. Let's see. The next one is the deficit surplus. Again, we're just looking uh to make sure that revenue exceeding expenses is the goal. We we have that. We did talk about how the referendum uh dollars help with that. Just emphasizing the importance of that fund. And then um the last page uh just shows our different funds and the main ones are our um the uh federal and the state revenue um the operating the local nothing has changed over the years that basically looks the same. So the only thing I want to summarize here is that with Senate Bill one, which is the bill that passed regarding the property taxes, the financial impact on Benton Community Schools will be delayed to some extent. We've talked about that because of the benefit of our referendum. So,
040other schools right now, you will be hearing um unfortunately some are already contemplating or uh planning on riffing uh teachers and programs because of this Senate Bill One. And I'm not going to say that we're immune to that. I'm just saying it's delayed because we do have referendum dollars. Other schools who have referendums are probably in the same boat as we are. Um, so we're going to um remain vigilant on our funds and uh plan accordingly, but we have a little bit of of of time to plan and feel bad for the other schools that don't. But it will affect us. That bill will affect us. It's just kind of a a delayed response for us. and and Brock kind of highlighted that as well when he showed the decrease of the different groups whether
041it be the business owners the acreage um >> percentage is changing and all that >> everybody will be affected >> yes unless something changes so >> well away they go able to give an easy explanation of Senate Bill one or >> that was they changed uh they were g really giving property tax breaks And so that affects the county and and us. We won't see the same amount of revenue. That's basically it in a nutshell. >> And it's it's Yeah. And it's it's the majority it's the majority of our um it's a higher our higher contributors areffect are benefiting from that. >> So the county government, they will receive less. I mean it's just uh it's it's great for your your land your homeowners and >> um it just it's gonna hurt us and and
042it's tiered uh for three years the effect of it in the changed >> so when Brock was doing his he was trying to project out to what it would >> the third year what that would mean >> it seems like they >> increased the valuation of everything so much you're not seeing a decrease in your rate >> because even that the tax rate might like you just said on on some of our paperwork the tax rate is lower The valuation is skyhigh. So you're still below. >> Yeah. Which is >> But I still want to go back to what Brock shared with us. Our tax rate is still below the state average for schools with the referendum. >> That's huge. >> It is. >> And it makes me wonder without the referendum we'd be close
043to someplace in the 50 cent. How do you run a school? And I think that's why I wasn't here, but that's why back in 2020, we had to do something. >> So even with the referendum, >> we don't we're below the state average. >> So that's why I want to make sure that people understand what we're using the referendum dollars for. And I think that's where Deler can help. >> Yeah, I I agree. I think it's it's good to to have that um just out there and communicating because it is it is a question that a lot of people in the community have. Yeah, it's it's good to to put that out there. >> Was Was it Wes yet that I had sent you something about the that they were exploring a referendum or transferring
044in students? >> They've always had a referendum. >> I was going to say they always but they were considering transfer students. >> Yeah, they were considering transfer I guess. Oh, yeah. Because they've never allowed, >> right? >> The only way you could go there is if you were staff member and if you could bring your kids >> or a volunteer. >> Why you know somebody like that? >> So that's all all I have. Do you guys have any good information? >> Yeah. Thank you. >> Okay. We are adjourned. Let's go ahead and do that. 7:40 7:40.