August 18, 2025 BCSC School Board Meeting

001I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Recognize we have a quorum here today. Uh any emergency additions to the agenda? >> Not today, is there? >> No, you have the ladies. >> Um approval for the agenda. If I can have somebody make a motion. I'll make a motion to approve the agenda. >> I'll second. >> All in favor say I. >> I. I. >> All oppose say sign. Passes. Um, we don't have anyone here to talk on the agenda items. All non-aggenda items will be addressed at the end of the meeting. Um, see, we'll move on to meeting minutes of the regular meeting for July 21st, 2025. If I get a

002motion, >> I'll make a motion to approve the minutes of the regular meeting of July 21st, 2025. >> Second. >> All in favor say I. >> I. >> All oppose. Same sign. >> Passes. Uh we'll go next here to team matters uh B2 vouchers and financial reports. Uh Make a motion. >> I'll make a motion to approve vouchers and financial reports. >> I'll second. >> All in favor say I. >> Is there anything to discuss with that? >> If you do, Tracy is joining us. She has CO so she so um I do know that there were several questions over the last few days. So if you have more, I think here to answer. If not, we can >> after she answer. >> Okay, we'll move on to communications. Um see one donations is we

003like to add. >> Yes, we we're at the beginning of the school year. Um so we do have a few uh and we are appreciative of we have some um for the volleyball team, for CAP, and for FFA. So, um, as we do each month, we just need your formal approval and, um, they just need to be receded in correctly. >> And then we move on to any updates on fundraisers. >> We do need just to formally approve those donations to accept those. >> And I do want to make note that Chris is the vice president. Our president is absent tonight. I'll make a motion to approve this donations. >> I'll second. >> All in favor? >> All opposed. Same side. And then we'll move on to the fundraiser update. >> We just like to

004talk about the current fundraisers that are occurring uh throughout the month. And so you see there's an FFA uh blueberry sale. We have Otterbin Elementary student activities, uh, candy sale, choir drama has a mattress fundraiser, and our choir has a pumpkin bash. So, those are going on during the month of August. Just wanted to, uh, bring that to your attention. No, no action on that. >> Okay. And then, uh, now we move on to the principal update. Who would like to start? >> I'm first on the agenda. >> Okay. There you go. >> All right. At Benton Central, um, as you guys all know, we are experiencing a lot of different changes. Our buses are coming to us first. Um, we're still all working out the kinks of that, but it's getting better every single

005day. So, um, for us that means a new schedule. So, you can't rely, you know, 93. We don't go a second hour anymore. I I honestly have forgotten what the time was now, but now we go at 9:0. Um we started at 8:18 and giving our 15 minutes for breakfast that we kind of desperately needed last year. And um we've also gained what we're calling SRT time, student resource time. Um you think of it, you probably heard about advisory programs, things like that. The kids are in an SRT. Um we have promoted it the heck out of it to them about it's it's their time. It's what what do they need to get done? We have a couple days a week or Wednesdays. We're going to do a couple days of clubs. Clubs are going

006to start tomorrow. That's going to be a work in progress. Uh just we're trying to get more clubs, more things out there for kids to to do on club day, but if they need a if it's a what I need day, it's check your email. We're trying to get them to be digital citizens. Checking their email, checking their email, checking their email. Many of the kids do not do that. Um they can work on Alex for math. They can work on me for um for English. They can read, they can do their homework. If they have a teacher who shares the same SRT, they can go seek that teacher out, ask questions. Um it's really that time, as we've told them, is for them um to use. So, we're hoping for great things there. And

007on Wednesdays, we're going to do kind of a brain training activity. Um we're working on those as we go through our conscious discipline training. And then as I said, Thursday will be clubs and then Friday another wind day. Um, back to lockers. It's been pretty smooth. Lot of a lot of uh anxiety to start the year and you know really although we've had kids have the ability to have their lockers with the backpacks, most of them chose not to. And so they after a lot of phone calls, we've sent out a lot of um directions, videos, etc., they've done really really well with it. So um they've done excellent with it and it's gone a lot smoother than I thought it might the way it started. So um and then all the sports kind of

008started up over the weekend and here we go. >> So we're full full regalia there. Um, Prairie Crossing, uh, we've started off with a great year. Um, we have had a couple changes with Mrs. Bar taking over, uh, with special ed and special programs and then, um, with Amanda Whe taking over as dean of students. Uh, both of them are in their element. They're they're they love doing what they're doing and they're doing both doing an excellent job and so I appreciate their help and and, uh, uh, what they're doing. Um, I had to laugh today because I had to remove a small snake from one of our bathrooms and Amanda Whe said, "Well, let me guess. There's not a manual for that, is there?" I said, "No, not a manual." So, uh, but again,

009both of them are doing very well. We're off to a good start this year. So, >> all right. So, Otterman, um, we welcome few new, uh, students from Prairie Crossing. That transition has gone really well. um getting those families in. I think last May really helped the students the tour in the school and getting the families in for back to school night. So that transition has gone very well. Um and I think the students are very happy. Um and then of course just like every year we did gain some students that have moved into our corporation. So we are excited to have some new families and new faces at Otterbin. um the new start time. I've had a lot of great feedback from our staff um at the elementary level letting them have a couple

010minutes especially with this new curriculum collaborating with their grade level peers or their special education teachers. Um that's it been a very good thing and I know that wasn't an easy process that we went through. So I just wanted to relay their appreciation to you guys for the hard work on that. Um with going along with that is the transportation. Um that was not an easy decision. I know um Jen Wright's not here, but she's gotten, you know, she hears it all. She hears the good, bad, and the ugly. And just appreciate her help in aligning all that and um a lot of lot of late hours, I know. So, we we appreciate everything she has done for that. Um and then just going through um we're really focusing this year at Otterbin on our

011curriculum, what we've adopted. And so, here recently, we have went through a purge of old curriculum um because if we're not using it, there's no reason to have it because if we have a storage room, they're going to use it. Um, so it's kind of a little shell shock for some. Um, but just giving them that support. We have the resources and materials we need and getting them to utilize with Fidelity what we have. So overall, it's gone very well. Um, we're very excited. I know we're going to be getting some construction going, so we're anxious to see that. >> Thank you. >> Okay. >> Thank you. >> Uh, if you want to take one and pass those around. Uh just a quick curriculum update. Um I would say the um access to materials uh

012and getting everything opened up and up and running is going well for everyone for the most part. um the reading program, the lessons kicked off this week and this has been such a successful roll out of curriculum because of the TD days we had in the spring, the summer days we had the um actual training that we had as part of um what we adopted. And um as you can see from the calendar with our PD days, this is just first semester, but with our PD days coming up, our October full e-learning day. Uh we'll have another CKLA coach coming and that will be a time when our teachers can talk with them about pacing, uh get some feedback on how the reading program and the use of it's going for them for K through

013five. Um remember that u we talked about this before that our focus this year is really being intentional um and considering um instruction which is thinking about those best strategies that looking at the data that we're collecting and using it to make decisions and then coming back to our curriculum mapping and our the other part of our focus beyond instruction are relationships. And so that's why our professional development calendar is broken into our BC collaboration days. We'll be focusing on instruction, our curriculum um and growth in those areas. And then we also have through the behavior grant uh conscious discipline coaching set up. These will be um either a morning or an afternoon session. And if teachers attend, they will receive um classroom tools as an incentive. And so they just have to jump on

014a Zoom before school or after school um and spend time with Katie Ahern, who is our certified conscious discipline coach. And if you want to know more about it, I can share more about conscious discipline. Basically, we are really taking a look as educators ourselves about the way that we um handle and react in situations. And we're learning lots of strategies and then passing those strategies on to students so that uh we do have improvement in behavior and an understanding of ourselves and the way we react and um building up that ability to come back to calm. you're ready to learn and the resilience um that goes along with that. So, we will have um Katie with us. You can see in November the grants paying for full days of coaching. So, she will be

015in the building at Otterbin on the 18th, in the building at BC on the 19th, and in the building at prayer crossing on the 20th. and what that might look like. Um, she has a coaching menu and so teachers could sign up, they could have her come into their room and actually get a lesson started while the teacher watches um, the way that she does that or they can also schedule um, a one-on-one chat with her. Now, you might think, what will teachers be talking to this coach about on a Zoom? Um, but it's it's tough situations. It's this is happening in my class. How should I handle this? Or I'm really problems motivating this student. What would you recommend? And um conscious discipline is um researchbased and it's they have a great history and

016work with lots and lots and lots of districts to help um move the mark with behaviors so that kids are ready to learn. Um okay, so that's professional development. And then on the back, we'll talk just a minute about compliance. You can see that um the IDOE puts together um windows for us and then this is our own BCSSE assessment calendar. So through the year we're getting ready um our our earliest learners kindergartens ESGI and um our early readers are taking those dibble assessments and then everyone will gear up um through eight and take the NWA later on. We'll have some ILarn checkpoints. You can see the SAT. We take the PSAT and there's a fall SAT kids can sign up for. All of our juniors will take the SAT in March. So this is

017just for your reference. Um but right now what's happening is we have to send out a security and integrity form for teachers to sign and also if you are a test administrator you have to take you have to do a training. So teachers are right now so excited about their classes and their students and their new lessons but we also have to do the compliance part of it and we're taking care of that. Let me know if you have any questions. Thank you. >> And I do know that our principles and um leaders, you may have other obligations and this is the time we always let you sneak out and no judgment for that if you need to take off. Thank you. >> Okay. And now we are we're on to the NEO policy special

018update on a first reading here. >> Yes, this is a first reading. So you have had access to this for a few weeks and you can continue to look at that. Uh basically it is to make sure that we are in compliance with the new laws and statutes and uh it's typically some language and some grammatical and technical terms. So just to highlight those uh regarding uh recording regarding the student assessments uh basically the terminology with that um supplemental pay um what what the uh state will allow us for to play to pay supplemental pay for our educators. Uh the enrollment of students without legal settlement uh the student transfers for athletic reasons that is allowed now. that that's a whole new um policy that we would need to put in. And the attendance, it

019does clarify the definitions of absences and it also prohibits schools from suspending our expelling based solely on absences. So those are the highlights, but your entire draft has all of the uh policies with the recommended changes from the so we will vote on that next month. Just wanted you to be aware of those highlights. Uh we have no old business so we will move on to the new business. So E1 here uh consider staff report and other personal items. A consider normal staff report uh items. I'll make a motion. >> I'll second. >> All in favor say I. I >> all post same sign. Uh consider approval of the updated classified employee handbook. Again, somebody make a motion. >> I'll make a motion to consider the approval of the updated classified employee handbook. >> I'll

020second. >> All in favor say I. >> I. All same. Motion passes. Uh, consider approval of the updated inclement weather policy for classified staff. >> Yeah, I can try to explain that. So, it's it's a it's a a newer policy and so I we just wanted to bring attention to that. It you have just approved it within the handbook, but just to be clear when we have e-learning days, we needed to spell that out in more detail. So it just clarifies things and just wanted you to be aware of that. So um you basically have approved it in the handbook, but for all practical purposes, let's just approve that section as well. From here on out, it will be part of the handbook annually. Yes. >> I'll make a motion to consider the approval of

021the updated increment weather policy for classified staff. >> I'll second. >> All in favor say I. >> I. I did. Yes. >> All oppose. Same sign. Motion passes. Now we move on to E4. Uh consider approval of uh disposition of the following uh obsolete equipment. Land automatic hot tank and pressure washer. A Robinar machine. Uh a Prolift 2 post lift. a laser for alignment tool, an Allen computer test center, and a Sebring hot pressure washer. >> From the automotive, >> right, >> that's all my old stuff. >> What the hell? It >> all worked for you, didn't it? >> You probably take it off their hands, right? >> If I can get a motion. I'll make a motion to >> approval of disposition of the following uh equipment that Chris previously listed. >> I'll second.

022>> Okay. >> All in favor say I. >> All oppose. Same sign. >> Motion passes. >> And again, we'll put that on the public's surplus site. >> Okay. >> So, Scott, you're welcome to go out there and buy it back. That's right. >> At least we get back for now. >> Uh, and we're are switching E5 and E6. So, E5 now is going to be considered approval of a confidentiality in non-disclosure agreement between Benton County Community Corporations and the Franciscan Alliance. >> So, I I'll try to explain this. >> So, we have a new contract with Franciscan um health for um athletic trainer. So, we have to And all of this took place in July. Um, and so we need a non-disclosure for the old contract and then we need to sign the new one.

023And so it seems to me we should do things chronologically. And um, so that's why I asked Chris to do E6 first. If >> I can get a motion on that. >> I'll make a motion to consider the approval of the confidentiality and non-disclosure agreement between Ben Community School Corporation and Franciscan Alliance. I'll second. >> All in favor say I. >> I. >> All oppose. Same sign. >> Motion passes. Now we'll jump up to consider approval of the updated athletic training services agreement between Benton Central High School Athletic Department and Franciscan Health uh effective September 7th, 19 or 2025. I'll make a motion. Second. >> So, you say this is something that everybody's running into. >> Yes. >> So, this is a new contract um that we've had here for a few weeks. However, uh

024our current athletic trainer has just resigned to take another position. And so, Franciscan is the one who we contract with. So, they are they are required to do the search for that. and that's on them to do. However, they're having shortages of trainers and so um it it could be a while before we find someone. But by signing this contract, number one, if we don't have a trainer, then we don't pay for it. But signing the contract means they have the obligation to do the search. So, my recommendation is is to sign a contract so that they will do the search and um hopefully we'll get a new new trainer soon. Will they be able to provide somebody an intern while we don't have anybody? >> They can do there. There are all sorts of

025um options now. Um at my previous school, this happened with Northwest Health. Um and then I'm hearing regionally it it is happening. So sometimes you can they can send somebody on gay nights. >> Sometimes they can uh borrow from another school for a week. Um, so you can you can piece it together. It's not our our best scenario, but um there are ways to to work through this and that is what Mr. Paul is doing right now with Francis. >> I don't have a a a good answer right now. But if we do not sign a contract, then we are on our own and looking for these trainers and we we don't have the pool to do that or the knowledge at this point. And the reason for the cost difference is because the the

026shortage of people available, >> the shortage and the competitiveness. Yeah. They just can't make it work anymore. >> Yeah. And I'm sure that part of the formula, the the U salary formula is with referrals and I'm sure they're doing the numbers and they're probably not getting the number of referrals to meet their needs. It's it's common. Franciscan IU um Northwest, like I said, I I have colleagues who experiencing the same Yeah. >> So, typically what happens if you don't have a provided person at an event that >> So, I I can just on my experience because I spoke to my former athletic director and so this is uh three years ago, four years ago, they are still without a trainer. So, their coaches do the taping after, you know, after school and they always call

027uh the opponent >> to see if they have that will come >> or if we are visiting being aware that they are there. So you you try to be proactive and will we have somebody at these events. So it's a lot of u calling and and piecing things together week to week, month to month. >> But I this is my third year here. It was a year before I left there and so they they don't have any money. I do know South Newton has a teacher on staff that has a training license and so that person dual responsibilities and gets paid for his teaching and then on top of that gets paid for training. >> Does Jer still carry his license or >> he does? Uh he will have to renew it, >> right? So

028>> there are some things we need to to look at. >> Yeah. >> And this resignation just came uh oh Mr. cancelled. Cancel. >> So, this is all new. The the re resignation just came, I believe, on Friday. Um, and this was up for uh agreement. So, I did talk to Jared and said, "Should we sign it?" He said, "Yes, absolutely." Because they are at obligation to do the search. >> Okay. Good. >> Yeah. >> So, potentially this could look way different in three or four years. >> Oh, yes. It could be an employee of Benton Community School Corporation solely without any contract with the hospital. Um, I don't see this improving uh with the hospitals because like I said, Northwest Health and IU, they they've had these issues and now it's Franciscan. So, it

029must be a pattern. >> All right. If I could get a motion in favor >> or I mean sorry in favor. Yeah. >> Yeah. All those in favor? >> All those in favor say I. >> I. >> Same sign. >> Motion passes. >> Um, okay. E7, consider approval of project lead the way curriculum and expenses. >> So, what this is is you project lead the way uh curriculum over at the junior senior high school. And this is really uh a tech an adoption of materials and we normally see this in our math curriculum and our reading uh materials. Uh this is a unique content area and they don't have a sample. They don't have partners or other grade levels to to do but they do need some curriculum materials. Uh it will enhance the uh

030human biology and anatomy physiology. Uh those are CTE courses and Indiana college core. So this will enhance their lab work potentially. This will lead to another pathway. So I think we need to uh approve this recommendation for the materials. It helps our kids in in the future with the U pathway. So and it's run just like other materials. >> Do you have any idea how many people are in the course? >> No. And and I don't even want to guess that in case I get it wrong. But those are two classes, the human anatomy and human biology and anatomy physiology. Those are your uh higher level courses. So um >> 15 to 30. Yeah. Yeah. >> And do you know how many hours a day she does that? >> I do not. >> I'll make

031a motion to consider the approval of project leader ALTW curriculum and expenses. Second. >> All in favor say I. >> I. >> Same sign. >> Motion passes. And um E8, consider approval of permission to advertise the 2026 budget. >> So it's um it's just advertising. It's budget season and so you just need to start the process. >> I'll make a motion. Second. All in favor say I. I. >> All those same sign. >> Motion passes. Uh and now we move to public comments. And we have first on here Stacy Drake. >> Do I sit up there or do I sit here? Whatever you're comfortable, as long as we can hear you. Yeah. >> I was not going to turn down sitting in one of these stairs. Okay. Thank you for that. Um, so my name

032is Stacy Drake. Um, I've got two kids at the high school, junior high school, and two at elementary at prayer crossing. Um, so I wrote down a little bit of a speech. Um, and I'm hoping, this is my first time at a school board meeting, so I don't know how long these discussions last or how to get on the agenda. I would like that to be an item that's discussed. Um, so I'll get started. Thank you for your time, your efforts, and your energy put into creating such a robust and expansive program here in Benton County. As someone in public health and in higher ed, these opportunities are going to have impacts beyond what you or I will probably ever see. the children's lives that are being served. I felt the effort, the communication from

033newsletters, the fun alerts. Dr. Zupin, thank you for those. Um, and parent square. These are amazing items that will keep Bitten County thriving and our population longevity. But what happens when there's a barrier created by a policy that creates undue hardship for equitable access? I am an advocate. I have connections to Dr. Nicole Adams who helped write the grant for teen mental health first aid. I would like to help bridge connections future to Purdue like I did at Purdue Extension. I'm a community builder. This is my home and so that means the other families are as well. The one-stop bus policy is what I would like to open up for discussion. Add as an agenda item to talk about. There's no option right now. It's this is our policy and there are no exceptions. What

034happens when there's split custody between two households? What happens to that? So, for example, at my household, and I know there's at least six or seven others, we have one child who resides there, who is in my custody 100% of the time. The bus stops there, he gets on, he goes. The other three children alternate four to five days at one house, four to five days with another house. So, when this bus comes up, they will pick up one child and leave the other three. Does that make sense? And coming from a family where two people are working, we probably will be able to find a way to get them to school. But what about the families that are facing economic hardships here? They're not going to have that type of access. I don't understand

035how how that is something that's equitable and something that's not even open for discussion. And I think that's what really kind of brought out the advocate in me. It's not only for my own household because I don't want to have to miss work to have to take children to school and I just read the attendance policy and so in my mind I'm thinking today they just sent out this policy that we're open to communication. We want to help advocate for attendance but yet this policy exists without any open discussion. So what I would like to do is to have some recommendations and I have four here. Again I don't know how school boards work. I would like it to be an agenda item. I would request that Benton County School Corporation establish an alternating address

036accommodation process for split custody or licensed daycare for those households where it's a case-byase scenario. Give the families who absolutely need it an opportunity to have those children have the same access to education as the other children. Because when a person has to miss work, that's less sick time. It's I I don't know if everyone here understands what it's like to be in poverty. It is the biggest barrier and I would hate to see a child miss out on school because they can't ride a bus, especially for split custody households. It makes no sense to me. Also, I would like to request that anytime there is a transportation busing policy drawn up that the social economic realities of the community of the entire population that's being served be taken into account. Open it up for

037public discussion and maybe that's something that already happened. I was not aware that it was. So for our family, it's we have to figure out how to get kids to school sometimes four to five days in a row. What are we going to do? Luckily, we have more than one vehicle. What about those families that don't? That's what I have. >> We we typically listen and um don't make a lot of response. But I am going to tell you that um the perspectives that you spoke about sometimes we miss those perspectives and um I am going to say that I will reach out to you to to talk about this. The one-stop policy is kind of a a universal one-stop. So, if I talk to other school corporations, we all know what we're talking about

038because we all have the same issues with safety. You know, dropping off a kid at a place uh where they shouldn't have gone that night because, you know, it it was three other places earlier in the month, you know. So, it is a real danger. However, there are perspectives like that. So when we adopted this policy, it's a policy that other schools have. So we feel confident in that, >> but you bring up some things that we we don't always think about. Yeah. >> And um alternate policies. I think there's room for that. We need to be careful with um >> Yeah. Communication has those issues. >> Documentation documentation. Communication. It's there's no process in place for those who need it. That's my biggest. >> Who truly need it. Yes, we truly need it and

039I know there's other families that do as well. So, I'm not advertising we're getting rid of this policy. Exactly. >> But case by case, don't let it be an economic hardship for families here in >> I would just say case by case with those parameters. Correct. If if it's going to be yes to your case, then what did we look at? Correct. >> So, I I would say no promises, but I will say it's worth a listen. And uh as far as I'm concerned, I think the people that you need to speak with is probably myself and the transportation director first and let's see if we can't get um >> I have done that and it I was turned down. I'll explain the whole situation and was turned down which brought me here. >> Okay.

040And and I will say this this week the >> insane >> I bet. I bet. >> We need to change it. We need to change it. And a lot of these things are for the good. >> Yes. So I would say then if if we can have a conversation with the transportation department absolutely >> and the board knows uh that there was a discussion I will bring them up to speed. If it is something that we're going to amend then it will come in front of them. >> Okay. >> And if it is something that um you feel like you weren't heard then you have gone through the proper channels and then you're you you could let them know. Okay. >> Um I do want to point out again that you know we we had

041a good reason for it. We still believe in that. >> I understand. I understand that part. When I spoke with Jennifer, she stated, you know, if there's an accident or a wreck, we need to know who was supposed to be on that bus. But the flip side is how do you know that kid got on the bus? So, if there was a different tracking system like a chip or some sort of card that was scanned, which I know that's funding, that's funding related, but even then there's still a safety risk because you're not live tracking who's getting on the bus, who's getting off the bus. So, it's kind of if that's not already happening, is it truly a safety issue for these situations? >> For those I I see what you're saying. >> You see

042what I'm saying? >> Yes. Okay. >> And and I am will say again in my world is the schools. So, yeah. >> Um I have been in the office uh an hour or two before and the number of calls that we need to change here and and it is chaotic. Yeah. And so um if we could arrange a a meeting and yeah explore this. >> Okay. >> All right. That's it. Thank you for your time. >> Thank you for coming. Thank you. >> It was very nice. >> And then we've got Jake. >> Yeah. Is it okay if I stand up? >> Absolutely. >> Whatever comfortable there. >> I'm Jake Miller. here with my kids Amos who's six a first grader second day or second week of first grade at Ottoanora got another year prek

043before she comes to school also at Ottoan we moved to Otterban in 2023 um for a number of reasons including the wind ministry which brought me to this area as well as we knew the school system was excellent and thank you very much for Dr. Zuk for your service to our students um school's reputation as well has been excellent to us. Um, our family and I I do not know how many other families, but I do know our family has been badly let down by the abrupt change to the the transportation policy and practice regarding buses in so Amos rode the bus every day to school during during the whole year he was in kindergarten last year. We live about eight street crossings from the school about half a mile had a six-year-old, you understand

044having some hesitation about having a six-year-old walk that far unaccompanied. I know there are steps that could be taken to mitigate that hazard and make that a safe walk to school. And my understanding of the Indiana state code is that that responsibility falls to the school board as the governing body of the school corporation to figure out how that problem can be solved in partnership with parents and families. And uh to my understanding of recent board meeting minutes that that that conversation, that discussion to to my knowledge has not taken place. Um, I'm speaking largely on behalf of my spouse as a wind technician. I'm not home in the mornings. I leave before anyone gets up. Um, but I will tell you it's it's not only a challenge for my wife to get not one,

045not two kids out the door on a certain timetable um when she had been counting on bus service this year. Um, but also to find that out because The day before school started, August 11th, we still had not heard from our bus driver, which we we had been told that those calls were still still going out. We were starting to get a little nervous when it is the day before school starts. We call Mrs. Müller, who drove the bus for this last year. Come to find out we're in a walking zone, which apparently we were supposed to somehow know, which we had no indication all of last year that we were that we were being added to the bus route as some sort of a courtesy, which seems like because we weren't actually in the

046bus at all. We just thought we were. I don't know how we were supposed to know that. So, there was clearly a a failure of communication that we were put in that position of having to scramble. Um and and we have it easier than some other families. We're we're making it work. It's been stressful to adjust. It's stressful to make it work. The stress falls disproportionately on my spouse who can't be here because she has work tonight. But it has been stressful. I come to this my wife and I really want to be part of the solution. not just complainers about the problem. We're here to to offer ourselves as as constituents and community members who want to improve the situation for ourselves and for other families. Um the board is responsible for figuring out

047how each student in the district can safely get to school. It's my understanding. My wife got in touch with the state director of school transportation. That's what we were told. Um so we'd love to get in touch. Um with you, Dr. Zukin, with Jennifer Wright, with whoever else needs to be a part of that conversation to figure out how we get the kind of safety infrastructure in place that's going to make it possible for us to practice a walk zone and not just add everyone to the car. Whether that's going to be crossing guards, just eyes on the kids, whatever it's going to take. You probably know that like any small town, the sidewalks in Otterban are spotty at best and that's an issue. But these are all solvable problems and I just want to

048to address that that we were that we and I don't know how many other families have been let down and we here to help come together figure out how to move forward supportive members of the community. That's all. >> Well, thank you. And um first of all, I want to um acknowledge there was a failure in communication regarding a walking zone. Uh to be honest, in my uh two years here, I didn't know we had one. And the reason why we didn't know we had one is because we've had buses run there. So now with the shortage of drivers, not many excuses, but it's a factor. Now there now we're going to utilize that walking zone, but then we got to remember, do people know there was a walking zone? So I I I want

049to clearly state yes, failure of communication with that. I do know that and I'm not for sure if it's your wife or not, but I I have somebody that I am meeting with with Mrs. Wright next week to discuss some walking zones. >> That sounds like Jen. >> Okay. So, um I do know that other school corporations have worked together to get walking zones and some of that entails green pathways and some of it might just be guards. So, that's our responsibility that he's talking about is to safely get the kids to school. It doesn't say we have to use school buses, but we do need to make sure. So, you are right. Uh we could communicate better. We can do better and we will. Uh we need to find some solutions. Now, a great

050solution would to be to have about five new bus drivers apply tomorrow. Um but we do need to do this and I do have a meeting scheduled. Um I wish I had an answer that says tomorrow morning it'll all be fixed, but I don't want to make promises I can't keep. But we will look into this and it sounds like I'll be talking with your uh wife about this. >> Excellent. Thank you. >> Yes. So, thank you for coming. >> Thank you for coming. >> Um with that, we move on to any comments from anybody from the board or superintendent. >> Mine were just transportation. I I know that it has been a bit of a challenge. I do know um that any school corporation who changes their transportation has their challenges at the beginning

051of the year. I I believe that by Friday I think um things will be better. I'm not saying that all the things will be handled but we're making some strides and please know that the changes uh are for good reasons. Um just wanted to make everybody aware that I acknowledge that >> and we still are having the bus driver shortage. >> We are. Yes. Yes. Now, on a positive note for the uh bus transportation, uh Oxford uh library, I want to give a shout out to them. They have an afterchool program that they are doing to help our Oxford students or anybody else uh free of charge. And they had such a large number that our buses were overflowing. Our our even our 78 passenger bus is overflowing. So, we have a a driver who

052will uh leave Prairie Crossing starting today. She did that and the white bus to take those students. So it frees up capacity on our yellow buses and allows those students to take part in that after school program. So >> they're offering that free of charge. >> Oxford library. Yes. Yes. It's very impressive. >> Yeah. >> Okay. >> Well, with that I will adjume. >> Thank you. >> We have a few minutes and then we have a work session. >> Yep. I will call to order the work session. Start that now at >> 654. >> Okay. So, um work session to discuss a variety of topics uh in order to get ready for future board meetings. Tonight we have a couple of informal uh presentation orformational presentations. Uh the first one uh Jud Bars is here

053to explain the building corporation information as it relates to our funding uh the bond uh projects and then Brock Bowser from Baker Tilly uh to go over our financial information regarding uh Bitton Community School Corporation. So um I do want to let the board members since we have presenters tonight uh you as board members are encouraged to ask questions as they arise to engage with our presenters. Uh anybody in the audience if we could just uh wait until the end and we'll have your chance to then talk to our presenters there. Okay. Uh so first we're going to start with uh Jud and uh I have asked him to be here because I think there's a misconception on our new storage and athletic uh annex. So I want to make some clarifications and then have

054um Jud explain the uh financing part of that. So to clarify, this is a 100 by 100 building intended for storage of large athletic equipment, mats, high jump, uh pole vault pits, things like that. The existing b the the rest of the building is for multi-purpose. No equipment, just space for people. And so the equipment we are using are the batting cages and they will be brought over from a gym in order to be used in this new annex building. Uh there was a misconception of maybe this was a big building that had basketball hoops and walking track for the community to use. Um no that's not the case. That would be a nice thing for bitten community but that's that's not what we have here. So, I just wanted to to be clear on

055that. And the reason is for storage, but it's also to help with scheduling conflicts, uh, baseball and softball, uh, during inclement weather, uh, if they go right after school, then they take the time of basketball or volleyball even, uh, or they have to wait until six o'clock in the morning the next day or late at night. So, we're trying to help with some scheduling there. So, I just wanted to make sure everybody was clear on what this building was and was not. And then also, uh, there are questions on the building corporation that we used with the bonds. There's some misconceptions. And so, I thought you could, and you were here a couple of times to explain that, but I just thought you could explain it one more time. >> Sure. >> Just to make

056sure everybody's clear on that. >> Ready for that? >> Sure. >> Come on. there. Um so the idea behind a building corporation is um school corporations can't issue debt and so the legislature provides a means for them to do um kind of the equivalent of and it's kind of it's what everybody does and there's laws that enable this but you can transfer you transfer the real estate to a building corporation and that's how all of the community schools were built by uh building corporations and then the building corporations issue bonds which is like a mortgage and the school corporation leases the buildings from the building corporation and those lease payments pay down the bonds. So um the bonds are you know 20 30 40 year old bonds and so like for instance at Otterban the

057uh until March of this year an original building corporation owned the buildings there. Uh it was the Benton Benton Community School Corporation Building Corporation. Benton Community School Building Corporation. And that was intended to own the Otterban Buildings until they paid off a bond there, which they did. The bond was taken out in 1993 and it was paid off and the property was just never transferred back. But that's typically what you do after the bond is paid off. They transfer it back to the school corporation. So, if you went to the GIS website for Benton County and you searched under Benton Community Schools, you'd get hits because that that would tell me that none of that property is mortgaged right now being held by a building corporation. And if you search for Benton Community, Benton Community

058School Improvement Building Corporation, Benton School Improvement Building Corporation is the name of your current one. You'll find that it owns most of the school buildings like Prairie Crossing, Otteran, uh BC, all of that is owned by the building corporation because there are outstanding bonds in one form or another uh out there uh being paid off. And so in March of this year, we transferred from the old building corporation at Otterbin to this new building corporation that we've been using since Prairie Crossing was built. Um that real estate to set up the new bond issues that that are coming for Otterbin's improvements. Um, and then a bond issue will be done in like September. And uh, a lease will be signed between the school corporation and the building corporation. Uh, that'll be the same term as

059whatever the bond term is, the mortgage term is, and um, payments will start being made to the building corporation who then turns around and pays the bond holders that put up the money. And so that is what um a municipal bond is is are these are people who invest uh in these uh debt devices to provide lower than market rate interest usually uh for building projects. And the the benefit to the people who buy bonds uh is there the income on those bonds is income tax-free. That's the benefit to encourage people to buy bonds to and I'm not talking treasury bonds but to buy building corporation bonds. Um the income that they generate is uh interest or income tax-free. And so like I had a client in Otterban who had 26 different municipal bonds and

060he literally would sit around and look for bonds that pay they always pay out like twice a year and he would find something that paid off on like the first week in January and the first week in July and then he'd find a bond that would pay off on the third week in January and the third week in July. and he had it set up so he had this stream of bi-weekly uh payments uh back that were all these different bonds and then none of the income from that those bonds was taxable to him. So it's it's not as um now there are a lot of institutions that buy those not just individuals. It used to be back in the day, like back in 93, there was probably more individuals that owned bonds, interest in

061bonds, than institutions. And now I would say it's probably the opposite. I would say institutions are usually behind most of the bonds these days. But it's just the device that the legislature intends for school corporations to use without incurring debt themselves. They transfer the property to the building corporation. the building corporation leases it back and gets payments over time to pay down the bonds. So like when Prairie Crossing was built, there was a big bond issue. And as that's gradually getting paid down, you're that building corporation is going to have other bonds that are going to take that some of that space, I think, is is the goal. But >> the use of the the building corporations as standard. I mean, there's not another procedure for it. That's what you do. That's what all schools

062do in Indiana at least. >> Okay. >> We appreciate you're reemphasizing that so we can answer some of the questions. >> Sure. Jud, the people that are involved in the building corporation, do they just need to be there by name? Do they really have a task to speak of? >> They So, I would say so there are three board members for the building corporation and it's been reconstituted. they generally fall by the wayside after a project is underway and bonds are issued. They really don't have any duties after that until the next thing comes up. And so we one of the three board members from the 1993 building corporation was deceased and the other two were just inactive. So we reconstituted the board. The the school board does that names those people. And um there

063was a bank in Fort Wayne that was the original holder of the bonds on the 1993 bonds and they were contacted to confirm that that there was full payment on the 1993 bond and they needed to release it which cleared the title to it. Then we transferred it over to our current building corporation so that it was titled like all the rest of the building. We want we want all of the um school buildings that are using building corporations to use the same building corporation. We don't have separate building corporations in Warren County. They they'll do separate building corporations and it gets confusing trying to figure out like what's the Seagar building corporation versus the Warren Elementary School Building Corporation. Sometimes it gets confusing in meetings. It's like a fast game pingpong to follow what

064what the hell is going on with the money. And um it's a lot simpler when you have one entity. I'll say that by a long shot. You can look at a sheet of paper and know your position at any point in time without having to flip pages or anything. You just you can see it and know >> and those board members are all Ben County. >> Oh yes. >> Yeah. So uh currently you have um Jack Duncan and um >> Mike Selene and Pat Claire >> are the three board members. >> And then what is their function? What do they do? So they they are the they kind of listen to what the plans are for from the school board because the school board appoints them and um because we need a separate entity holding

065title to those assets. They are the ones that sign the bond that sign the mortgage to put the bond out and sign the lease with the school corporation with the school board to lease it back to the school. That's really all they do. But it's all public meeting, all advertised. There's there no shortcuts. It's all due process and whatnot. But >> And we held those meetings and then you you met with those individuals as well. >> Yes. >> Uhhuh. >> And so they and so they signed the uh deed to get it over into the existing building corporation. That was one thing that they did. and they signed the preliminary lease that's been kind of negotiated that will be for the right term and for the right amount of money to pay down the bonds

066that are anticipated. They've seen all of that and I think we have another meeting uh with you all um in September. Uh the bonds are tenatively set to be sold September 24th and from October 2nd to October 9th, the school corporation obtains the signatures on the closing documents of the president president and secretary of both the building corporation and the school corporation. So there'll be one more meeting it looks like at the end of September or early October to wrap it up and then they'll be issu they'll be sold. the proceeds of the bond will be sold and that will generate the money that will pay for the project. That's it's just like a mortgage. I mean, you could literally substitute mortgage for bond and you'd be talking about the same animal. It's a dead

067instrument. >> Any more questions? >> How about anybody? >> So, in the past, like in the 93 bond when that was written and paid off now. >> Is it retired or did it get refunded again? >> It was paid off. Retired. >> So then our taxes dropped down because that came off. >> It It depends. It So So that what I'm talking about using one building corporation for all building projects in the corporation in the school corporation. It it not me ne necessarily went down to zero. There may have been something else added like prairie crossing was was added at some at some point to existing debt. I don't there's a limit on what you can have outstanding and um the mortgage on the the bond on the otter project was paid off. While that

068was being paid off were other projects started. Yeah. Yes, there were because uh for instance prairie crossing would have been started during that time. So part of my presentation shows outstanding debt as of today and the proposed projects and how how it fits in with the overall debt structure. So you'll see a picture of outstanding debt. So in the past before you did with the building corporation, did the public have to approve any major projects? If you're going to do a new bond, then it had to be put out to the public to support that. the the the same processes public processes followed on old projects. The building corporation procedure isn't new. So the So you're saying that the public still has to support or can vote no, we don't want to continue with this

069project or we don't want to have this new project, whatever it would be because it's so so maybe I completely misunderstood. Um, what I've read is that the leasing is a way to circumvent the debt out the the debt maximum debt that you're allowed to have by the state. And then school boards were refund refunding bonds at their maturity. So, they discontinued, which gets back to where you say we're neutral to taxes. And I still argue no, we're not neutral because that should have dropped our taxes because the bonds paid off. But we just keep going and >> basically piggybacking what's changed in legislation this year where you can't do that anymore. >> I can I can talk a little bit about that. So yes and no. So it limited what are called general obligation

070bonds but it didn't limit first mortgage bonds and that was intentional by the general assembly because they saw a lot of school corporations were issuing go bonds within one or two year maturity to keep that payment going. So they essentially that is no longer an option for a lot of school corporations. The project being proposed remitt schools is a first mortgage bond. So the general assembly did not what's the right term not eliminate that as an option as dead. >> And so what were you going to >> the um I was going to say the amount of the um Otterbin old old bond the 93 bond uh that pertained to Otterbin that building corporation didn't own any other land other than Otterbin. And so that tells me I mean just kind of academically that tells

071me that the debt was only on the Otteran school. So whatever the improve the project was in was secured by the real estate in Otteran only. No other school corporation assets were ever titled in the name of that building corporation. And uh I don't I just tried to find the dollar amount of that mortgage. I don't know what it was but it was paid off and never released. So, it was literally a mortgage that's on the at the recorder's office that's just never been released and no one's making payments on it because it's paid off, >> right? >> And so, we asked them to release it. So, clear the title. >> I've got one other thing that follows up on what you originally just said. Okay. And about when the public gets involved to limit

072the size or to uh kill a project, I would say that takes place earlier, not at the stage where the the bond is being sold, >> right? The I would say we're past that point, but the public is involved in that by the public notice in the newspapers is involved in that process as the um project is sized and um the lease sized and the bond is sized to u determine how much is going to be needed to be borrowed to build that process happened. >> Okay. Which you and and I don't mean to be combative. I'm just want to make sure that I am looking at the correct facts Holly said last time and then I think you maybe attended the BCA meeting with Sean and said and it's up there. multiple public meetings

073where this particular building was being discussed. >> And I think that is extremely misleading when you because when you say that in a public meeting and everybody hears that, they're like, "Well, yeah, I mean, they talked about that apparently." No, you didn't. And I have minutes and I can go back. I've gone back and I've read through all the minutes from January present and the only time this was ever talked about on that building out there was the the Auburn project and the ones that that definitely probably need to be done and the storage project at BC never talked about being a $3 million building or you know sports >> sports annex. Um I just think there's so many which it's a done deal because you guys knew the the July 1st deadline I guess

074because of bonds that's when that bill went into effect and so everything was paid for before correct >> he know he just he clarified >> technically these bonds are not subject to that July >> um so at at any I just want to make sure that we're spending our money wisely um we're trying to do it on the county level too and that's a struggle as well. But I also, like I said in the last meeting, I think when that referendum comes up, I think there's going to be so much opposition and push back on that that the teachers are going to really they're the ones that are going to take the hit. And we need to be frugal about our money before we get to that point so that you guys don't have to

075worry about, you know, getting rid of staff and AP programs and all that stuff. That was the other comment that was made at the last meeting that didn't set well with me is if we build these complexes, it's going to bring the people of the county. If you look at the statistics of where these kids are moving to for their education that's not here because of what we're not able to provide, if we don't put our money in the education first, then then develop your talent for your sports. I mean, I've raised my children through this school corporation. Um, I was raised through here. I felt I got a great education, but I mean it's not like we were going anywhere else in the 80s either in the '9s. Um, but in today's world, these

076parents will travel miles to take their children to a different school. And I think and I don't that's not solely on sports. It really isn't. And I've seen what these teachers have lost out here at these schools, a thing that are not provided. But then we're turning around. We're spending all this money on tracks and and buildings and tennis courts. And I'm not saying they don't need it. They do. I mean, they should have the opportunity just like anybody else, but is our money going in the right place? Are we are we I went through auto mechanics with that gentleman right there and I probably got one of the better educations that you could ask for just from that man. And it means a lot. It really does. And I'm not going to sit here.

077I'm not going to bash anybody. I'm not. I mean, you guys have a tough job just like we do sitting where we sit. It isn't easy. But when we're talking funding and know the dollars that we've got to deal with every day and make sure the people of this county are taken care of, whether it's the adults, clear down to the children, cuz we're huge on children. This is a it's a hot topic for us. It really is. And I want them to have all the availability of sports, but their education comes first. That's the way I was brought up. And that'll never change. And my kids' education came way before our sports part of it did. My boys played football. My daughter just graduated college with on the deans list. Proud as all it

078can be with her. John sitting in the same spot. His kids played sports out there. They've graduated with honors. They've done well for themselves. We've got something to be proud of here, but I don't want to lose sight of the focus of where where the kids come first. And my opinion, this is my opinion, nobody else's, is education should come before the sports side of it. until you've proven yourself in the education side to where we can where we're turning out kids that that have a chance of life when they leave leave our school system that they know the ins and outs dayto day and just don't hit the wall and get smacked in the face because oh well we we didn't know this going into it then then we've done something right that's what

079we've done we've we've produced a child that has had all the facets it needed of that of the education process by the teachers. Edy Fischer sits in there. The things that woman does is absolutely amazing. The program she puts on, the time she puts into it in the summertime to make sure all the other teachers have what they need. That means something. And so do the coaches at night spend their weekends and their nights coach and plus teach and do all that. I've watched that. I've been on the sidelines with them. They put their time in, too. They do. and they deserve probably more than what they get. But this all comes down in my my opinion, it comes down to we need to have the education first. And it's just frustrating with how this

080was presented, what I walked into that day, and what was sitting on the table with those drawings. And you know, and again, my opinion, I don't feel that the public was informed as they should have been because when we sat here at the last meeting, it was classified as a storage annex, but it's off to the north side of the building. It's got a 12t door. Everything else is a complex. >> So, >> okay. So, I I I hear you and I do want to not spend too much time on this. >> No, I'm fine. That's that's it. I'm good. um as we transition because I do I I I believe that your portion of it's a device it's it's a mechanism of funding. So I I don't think anybody has questions on that. No

081>> I do think that uh that the presentation on our financial condition will be helpful and >> I do want you to know that on our July retreat that Chris here mentioned, you know, we're halfway through the referendum. uh we knew we would need to make some decisions, have some options, and indicated that perhaps we need to talk with the commissioners because we're all in this together. So, us understanding each other is important. If there are other ways for us to get the word out because in our world, we had meetings after meetings and public meetings and Gail has been here. I put things out on social media. I share the board presentations with the Bit Review. But if there are other things to do that in your world too because you're in the same

082boat we are. You'll have people show up at your meetings and say that's why I hate being on this side. I appreciate what you guys are need to do something different. I'm not opposed to doing that. Um, but I do want you to know that Edie Fischer, you're right, and she was hired to do this. And and whether you know it or not, we have spent hundreds of thousands of dollars on curricular materials. And Abby Spitznogle tonight talked about purging. >> Those teachers want to hang on to old materials. And this group right here said, "Uhuh, >> we invested and and you've been here on on the materials that math and language arts cost us. They better use it." And so we do spend money on on that. And it's not always at the forefront.

083Is that something we need to put out there? It's our day-to-day operation. So sometimes we get caught up like you do. I I assume you're doing your day-to-day job. You're grinding. Do we need to stop and tell the community what we're doing? I I'm open to that. I think we're open. >> And I I want to address something because you brought up something very and this is where I really look for you guys to help us coming up to this next referendum because you hit hit the nail on the head. The opportunities and the programs that our school corporation has is because of the referendum. So this pool of money that we're using for the structures and stuff, we can't use any of that money for education. >> I understand. >> Yep. And so that's

084where it's so important and we want you guys to help us tell the community this is what this referendum has done, which we're that's what our big retreat was. We want the community to know, hey, this is what we were able to achieve by having this referendum. We more than likely tonight are are going that way. And yes, that was a huge topic of how's this going to look when we do this structure, but we're going to turn around and make we have to let the public know that that money can't do anything for education and the programs. It's a referendum and that's where we us losing kids, we don't have the monies to continue those programs. We don't want to take them away. The success of your kids and your kids and your kids

085and hopefully my kids is because the choices we're the hard choices we got to make like you guys have to make. And so that's really what we were hoping to achieve with you guys because also we wanted your guys' input on. So we appreciate you coming and doing that >> and and and I want to turn it over to Brock so we don't lose sight. But I do I I will say in the end we may have philosophical differences on those bonds. I I don't want to play semantics. I call it neutral because I believe they're neutral. You're you're saying, "Hey, they're not neutral if they can fall off." As long as we understand each other, we don't have to agree. But I think we need to at least understand the perspectives and I think

086Brock can can share some of that and I I just don't want to lose, >> you know, I don't want us to be here till 10. >> If you could give me just a couple minutes, let me just hit some some points. >> Are you going to stay? >> Yeah. Okay. >> And and then I'll I'll be quiet. >> When I go back to Well, I'm not going to read. When I go back to the the minutes, we can discuss that another time as far as whether the public knew. Public didn't know. No, because it was not put in any of the minutes what it actually was. But when we're sitting here and we're looking at spending money on a big project like that, had we not spent the money on that, and I understand

087we have the same issue where you can't take money out of certain funds or whatever, but had you not spent the money on that and that would have dropped off the tax base and our taxes came down when the referendum came up, it would have been a lot easier to sell that. Hey, you know what? May we go ahead and continue that. We we dropped a little bit here, so we'll just continue that. But we're not doing that. We want to be neutral where we're keeping our taxes high and we are very high. But when we look at the programs that we've got at the school, like he was saying, I just want to just read a couple of them for and I got this off the internet through the state academic progress ratings. Tri

088County 71% better than any other school. West Lafayette 65%, Seager 43%. Benton Central 33%. Um, test score ratings, West Lafayette 92%. Tri County 76, Seager 56, Benton Central 52. We're half. We're right in the middle. We need to work on the product that we're putting out. The worst thing though that I learned in there is when you start looking at the um lowincome people, Tri County, nine out of 10 kids that are low income excel every year or they progress every year. Seager eight out of 10. Relier seven out of 10 pretty good central four. The only one worse than this, which was kind of surprising, was West Lafayette, which but they probably don't have they've got a much lower low income percentage. These are the things that I look at and I'm like, man,

089I wish we would spend money on things like that and put out a hell of a lot better product than we would a new building. So, that's all I'll say. Thank you. >> So, Jud, you are welcome to stay, but you're also welcome to >> I'm going to Good. So, I got one more meeting tonight. Yeah, that >> I'm gonna turn it over then to Brock >> Baker Tilly and as we're getting his presentation. >> Thank you. >> Just to clarify though, we can't vote on anything public meeting. >> It has to be public. >> Can you hit cancel? >> There you go. >> Still agile. >> Okay. So, do you have his presentation? It's going to be >> Yeah, it's pretty much ready to go. >> You know what? So, do you need to

090exit? Close it out. >> While they're working on that, I'm going to forewarn you that I will probably move around a little bit just because I'm sitting most of the day. So, I hope that's all right. If we think the microphone cannot hear me, I will walk closer to the microphone. So, please please let me know. >> So, Dr. Zupin promised me four hours this evening. >> These are these are good conversations that are occurring. They don't happen in every community. So, I think more of the dialogue because especially this part I heard you gentlemen might be on the county commissioners, county council. So some of the content I'm going through tonight will impact you almost as equally on the property tax side. So these type of conversations can be really powerful because as communities

091work together to address some of the challenges, the awareness really needs to be enhanced and there's opportunities to uh as I get on my soap box, opportunities to work together to try to quantify some of the impacts coming up. >> Can you guys see the screen? Okay. You want to move us? >> There's extra chairs up here. >> So, as we bring that up, >> bring that up. >> Four main things we will be talking about this evening. So, part of it is going to be educational. So as we look to the Senate and rolled act one and start thinking about the impact to homeowners, a land, rental property, business, commercial property, business, personal property. Try to give everyone an understanding of what's going to happen to net assessed value or at least direction where

092it may be going not only in 2026 but through 2031, 2032. So SCA1 is is a big piece. You heard Dr. Zubin mention we wanted to sit down and do this. I think the original ask was February, March. It was that time, as you probably all recall, the general assembly was heating up. There were a lot of bills being introduced about property tax, some of the changes that ultimately landed on. But um we chose to take a step back to see what happened with the general assembly, then try to assess what what all impact this is drawing might be this summer which brings us to today. So we've been averaging one or two presentations across the state of Indiana on legislative impact. So we work with approximately 65 70% of school districts across the state

093of Indiana. So again I apologize for walking around. So, we're going to talk about the legislative session and the changes that are occurring with net assessed value. We're going to get into some fiscal metrics that the state of Indiana either requires you to compile and report out or ones that are available publicly. Just try to uh allow everyone to recall what some of those impacts are and trends are. We're going to talk about the financial projections on the operating funds. Then ultimately we're going to finish it up with just a reminder of existing and what the proposed debt so we can u remind ourselves what the debt structuring could look like. >> Okay, great. Thank you. So quick reminder, I think I was here back 2019ish. So what's happened over the past five years? why

094things are so different for schools than six years ago, now five years ago when the referendum was approved in June of 2020. No secret almost feels like a lifetime ago with co the needs of the community were different than what they are today. But after coming out of CO in schools like in many other rural schools throughout the state of Indiana and nationally for that matter seeing seeing some enrollment declines, but there was a record amount of funding coming from the federal bills. So COVID relief, I think for all municipality types and even some businesses had record funding and that led to no secret inflationary pressures in 2022. But on top of that, you all may recall what was going on during the Indiana General Assembly during that time. There was a lot of debate

095about what's the right way to educate kids from a curriculum standpoint. I'm not a teacher by trade. Dr. Zupin or somebody else who has more educational experience can talk circles around it. I just recall that there was a lot of debate going on at that time about methodology, standardized tests, etc. But what we saw in 2022 from a national perspective is record number of resignations and staff shortages in the education field. 2023 there was another record set staff shortages and resignations. more inflationary pressures. I think everyone not just here at school district feels that felt that at home in 2023. Then there was a new standardized test I learned that was passed. So there was new tests that teachers had to uh begin to educate toward with these new curriculum standards. Again, I'm not the

096expert. I could talk about it from a high level. 2024 more inflationary pressures. There was another record set with staff risk conditions and shortages. And now the state of Indiana is implementing new high school diploma standards. You all know this, but it comes back to all of these new standards are being implemented. But now with funding, federal funding going away in 2025 with Senate Rolled Act and House Bill 101, the state revenue that supports classroom expenditures. So when you think of state revenue, think of classroom. The revenue given by the state of Indiana in 2025 is pretty limited over the next couple of years. So it doesn't keep up with what we're expecting with inflation. So you got a federal challenge on funing. a cliff in 2024. You got limited state dollars coming in beginning

097in 2025. Oh, by the way, there was another record set this past summer with with with record resignations and shortages. So, kind of like an up and down flow of funding. Like 2021 to 2024, great had a lot of federal funding, had more state funding coming in with supporting the inflationary impact. But now sitting in rolled act one you have federal reduction limited state dollars and there's going to be impact sold act one as well. So three tiers of funding could be impacted in the years to come by >> the white go into the regular screen just tap. >> Oh nice. So let's get into some of the summary of legislative changes. So year by year, you can see it's not just a one-year implementation of these new changes, but actually it's going to be

098a six-year implementation over the years on what these different property classifications are going to receive for deductions. But let's start here, 2025. First things first, July 1st, 2025, all schools have to have a minimum salary 45,000. schools check teacher compensation as a percent of state funding. So we talk about compensation that's salary and benefits at least 2/3 approximately twothirds of your state funding has to go toward teacher compensation that schools check. If your debt service tax rate is greater than 70 cents every new project has got to refer. If the schools is not near that don't anticipate we'll ever get near that. There's a lot of school districts probably about 30 who are in that range. The one I do want to try to bold is all referendum now has to go to an even

099year November ballot. >> So you may recall up to this point you could go on a primary or you could go in an odd year. There will be a handful of school districts who will pursue a November of 2025 ballot for renewal. that schools did not choose to do that as of July 1st because you had to make that decision July 1st, 2025. But now, if you seek renewal, either earliest you can do it is November 2026 or you have to wait till November 2028 or November 2030. So again, only even years. A lot of school districts, and this is part of the strategy that many employs like to take two swings at a operating referendum or any type of referendum approval. So, a lot of districts who may have a referendum expiring in 2028,

100not suggesting that the schools take this approach. I'm just mentioning it for reference. There are some schools who will pursu who will pursue a renewal in November of 2026. So if they're not successful, they get another swing at it November of 2028 before it expires. Again, not suggesting that's the strategy. I'm just sharing it as reference only. Then for the gentleman in the back, I'm sorry I didn't catch your names, but you brought up the point about a oneear cool one-year geo bond cooling off. Yes, that is take took effect July 1st 2025. You'll see later on the projects for consideration that have been approved and proposed our first mortgage bond. So they do not fall within this geo bond designation. So that's why there's a difference between the two. But more in the meat

101and potato of our presentation is from 2026 on pay 2026 taxes will be the first year that new deductions will be implemented in the state of Indiana. We'll get into some of the detail here later. But your main takeaway is 2026 is the first of six years where increased deductions will occur for homeowners. So when you think of homeowners, think of the 1% property bucket. That means that they're paying no more than 1% of their market value on the home, unless you have a referendum. So homeowners are getting an increase in deductions over the next six years. The 2% property bucket. So who are in the 2% property bucket? Residential rental. So a home rental, a land, and long-term care. that 2% bucket because they're not paying more than 2% of their gross assessed value

102for a circuit breaker. Then the 3% bucket, business personal property, there will be potentially some relief coming as well with some different thresholds that we'll get into a little bit later. There are some additional budgetary additions that won't impact Bon schools at least at this point. So another change second year of implementation in 2027 that we'll go through in detail. 2028 is the third year. Two things I want to mention in 2028 charter school revenue share takes effect in 2028. At this point the numbers because it has to be a charter school revenue share in 2028 based upon formula either the maximum of 100 kids or 2% of your M schools is based upon 2024 2025 numbers is not impacted by that charter school share in 2028. It has to be kids who attend a

103brickandmortar charter school not a virtual charter school. The last bulleted point does impact Benton schools will also impact the county with the change in lip. So local income tax, you're paying part of your your paycheck is going to a local income tax. Right now I think it's 134,000 memory serves what bitten schools is receiving for lit. It goes away under the current laws for sea 1. So there is a revenue impact beginning in 2028 because of this legislation and all entities county library oh who else? Um county library townships will have some mechanisms cities and towns will have mechanisms to replace lint revenue with some new options. schools specifically were mentioned as not having any option to either lobby the county or the a city or town to request it. We're not done. In 2029,

104year four of implementation of new deductions on all property class types, 2030, year five, and ultimately 2031 is when we bottom out from a deduction standpoint. Here's what I'll mention is there is some possibility that the general assembly will continue to tinker with property taxes. So everything I'm sharing with you tonight is based upon what we know today. If I'm standing here a year from now, it could look a little bit different because I think there is a desire to somehow tinker with property taxes in some fashion going forward. So if you're a homeowner in 2025, you are receiving or pay 2025 taxes. So a reminder that homestead properties are you're dwelling in plus up to one acre property. So 2025 and we'll look at an example here. Next slide. You're receiving a flat $48,000

105homestead deduction assuming you apply for the homestead deduction. then you're getting a supplemental homestead deduction of 37 12%. So what's occurring if I could try to give you that ele elevator speech on what's happening over the next six years for your property taxes. This is great for homeowners. You're transitioning out from a flat dollar amount. So going from $48,000 standard deduction to zero. Okay. We're implementing a full percentage basis where your current supplemental homestead deduction is 37.5%. And it's going to be 66.7% in 2031. So we're going from a flat amount base system to a percentage. If you did a calculation in 2025, I've seen the percentage based upon home values for these calculations to be somewhere between 45 to 55% depending upon your your home value. By 2031, twothirds of your property will be

106taxdeductible from a net assessed value. I think as this board knows if your net assessed value goes up or goes down tax rate may go up. So what the general assembly found as they were implementing this system is well net assess value is going down which means tax rates are going to go up. So that doesn't necessarily mean that tax bills are going to go down. So they added this additional caveat of a supplemental homestead credit. You probably have heard that $300 credit, $300 savings. And that's what this is. So, a supplemental homestead credit of coming off the bottom line that you will receive the lesser of 10% of your property tax bill or $300. So, if your tax bill is $1,500, you're going to get a $150 credit. So, the lesser of 10% or

107$300. And that is in perpetuity as we understand it. That has no life cycle or ending. There are some additional credits for the 65 and older, I think the 65 and older, it's a incomebased credit as you can see there at the bottom what those income thresholds are with the promise that 65 and older will not pay more than 2% annually yeartoear increase. There's a disabled homeowner credit as well. So, probably thinking, well, that's all well and good, but what does it mean to me from a homeowner stand? So, if we pull the average home value in bidden schools right now, according to the US Census Bureau, 153,700, if you like to do the math, go ahead and do it. $153,700US 48,000 times.375. So, at 2025, that average Bitten School's homeowner paying a net assessed

108value of about $66,000. Everybody see how I got that? So, as you saw in the prior slide, hopefully this works. Whoops. Nope. So, as we go back, you can see we're increasing that supplemental homestead deduction year by year. So for 2026, we're keeping the flat $48,000 homestead deduction, but the supplemental homestead deduction increases to 42%. So if we assume there's no growth in net assess or excuse me market value which there will be but let's assume just for apples to apples comparison the same value that assessed value actually drops to 63,000. So there's a 4% drop in that assessed value for the average homeowner. What we've seen so far the school district is located in three counties. Warren Benton typic introduce my colleague Ethan Melton by the way. Ethan, thank you for pulling these data.

109Two counties have have certified their net assessed value to date, Warren County and Benton County. And we've actually seen both of those county percentages decrease comparing 2025 to 2026. This is one of the drivers because of that. increase deduction more deductions changing in 2027 going from 48,000 to 40,000 then increasing the supplemental homestead deductions and that same apples to apples comparison you can see ultimately until 2031 when we quote bottom out that average homeowner will pay the least amount if their market value doesn't increase will pay the least amount of AV in 31. What you're seeing is a 4% 3% 3% 3% 5% 6% decrease in debt assess value. So over this time horizon this average homeowner your market value would have to increase 4.3% per year just to keep the net assess value flat.

110I'll say it again just for dramatic effect. average homeowner would have to see a 4.3% increase in gross assessed value to keep this on average flat of around $66,000. So we've seen more than 4% past few years, but we've not seen that over the past 10 15 years. So your guess is as good as mine what's going to happen over the next couple years. But again, this credit is Not part of net value is supplemental homestead credit first restaurant I thought Arby's like Arby's coupon and getting that cost taken off the bottom line just means you keep it in your pocket which means school district library county are not collecting that revenue so the DGF department finance estimates this credit in 2026 to be about $89,000 to community schools. So, it's great for homeowners, but

111there is a revenue impact to the operations for schools. Sorry, I feel like I'm blind people with this reflection on my watch. So, now it's transitioning to the 2% properties. So, what are the 2% properties again? Residential rental properties. of home rentals, a land, and long-term care. So, this group on a holistic standpoint never received a deduction before. So, you can see in 2025, no deduction. beginning in 2026 transitioning a six% deduction all the way until 2031 for ad rental property home rentals in long-term care approximately onethird of the market value now will be tax deducted. So you got homeowners getting increased deductions 2% bucket getting deduct deductions which is leading that way to a decrease in net assess value. What happens when net assessed value goes down? Tax rate probably goes up. So this

112is a 20-year snapshot of a land throughout the state of Indiana. There is a formula that is that's been designed by the Indiana General Assembly that determines the base rate per acre throughout the state of Indiana. So it's not like Benton County has one special base rate per acre. Monroe County has a different one to county has a different one throughout the state of Indiana. There is one base rate per acre. So the gray represents the numbers that have been certified by the state of Indiana, the department of local government finance. In 2025, the base rate value per acre is $2,120. Excuse me. No, that was 2390, right? >> That was the original. Thank you. So they changed it in 2026, I'm sorry, pay 2026. They had certified 2390. So we were expecting about a

11367% bump per acre. The general assembly changed the methodology on the capitalization rate. So went from 2390 now to 2,120. So this does not count the 6% deduction as well. This is just a straight base rate calculation. So farmland farmers will see a drop in excess value in pay 2026. LSA legislative services agency is projecting that here in the blue. This has not been certified. This is a projection. But LSA is projecting a 6% increase in base rate. But if you compare 2027 to 2025, you can see 2027 is projected to be lower than 2025. And again, that does not include the 12% deduction that they'll be eligible for in 2027. So now transitioning to the 3% bucket. So who's a 3% bucket? Commercial and industrial or business personal property? business personal property changing what

114is called the dimminimous amount. So for those of you who may own business personal property, you complete what's called a form 103 is your aggregate amount of business personal property. So when that aggregate amount is less than 80,000 in your 2025 taxes or 2026 taxes, you're not paying any property taxes on it because it's considered to be dimminimous. That dimminimous threshold is increasing to 2 million in 2027. So it's great for businesses, great for farmers who own combines and tractors potentially if that aggregate is less than 2 million. But there is it is going to potentially impact because that dimminimous amount of increases that assess value could go down which means tax rate could go up. So dimminimous that takes effect to pay 2027 taxes. Additionally, there's this 30% floor. So any new equipment put

115into place purchased in this calendar year right now. This is personal property is after you depreciate it, there's a floor of 30%. If you purchase new equipment this calendar year, that new equipment is no longer subject to that 30% floor. So, a lot of CFOs, a lot of farmers will probably be doing this. I would do the exact same thing if I were their shoes. Well, is now the time to replace equipment in order to not be subject to that 30% floor. Since that is such a business and individual based scenario, it's really hard to predict what could happen with this property type. So, we'll have to monitor that and as net assess values roll out, try to measure what what the impact is. So 1% deduction, 2% deduction, now 3% deduction with business personal

116property. >> What do you mean by a property floor? >> So what do you mean by when you say floor? >> I say a floor. So think in terms I'm going to use a high dollar figure. So let's say there's a manufacturing company. They have $10 million of manufacturing equipment as business personal property. Typically accountants will depreciate that over maybe five or 10 years or whatever the useful life of that equipment is. So let's use $10 million as an example and let's say it has a 10ear useful life. So after seven years right now that $10 million equipment still has a $3 million value. So they'll continue to pay $3 million of assessment on that business personal property. If they replace that equip to purchase new in 2025, there no longer there's no longer a

117floor for that $3 million. So as it depreciates, there's no limitation for that $3 million or 30% goes away where ultimately it may not pay any property taxes potentially. >> Okay, thank you. >> That answer your question? >> It's a good question. So with that mindset and thinking in terms of what these deductions are, you always want to be mindful of who are the largest taxpayers. So Bon schools an obligation you have is having debt outstanding and as you heard Mr. Bars talk about investors. You have to update them on an annual basis of who your largest 10 taxpayers are. So here is what we reported this past summer for the largest 10 taxpayers as a percent of your net assessed value. So the smell test we always do on this type of report is

118look at this total number. That means it's 20% of your total net assessed value is with these these 10 taxpayers for your rating. schools has a rating just like your own personal credit score. So the school district's credit score, one of the metrics they monitor is 20%. Typically rating agencies like to see that being somewhere between 12 to 15% to be considered a diverse tax base. It just means that you're higher risk because if one of these were no longer used if or the farming operation went out of business, you're at risk because it could impact your overall medicine value. Your takeaway is just know that your top 10 taxpayers are about 20% of your total medicine. So let's start looking at some of the metrics. So this is a stoplight feature. So the state

119of Indiana requires you every January, you all probably remember every January you get these fiscal indicator report. So the state of Indiana requires you to review eight indicators ADM which is your average daily membership or enrollment. What your fund balances are whether you're running a surplus or deficit your fund balance as a percent of expenditures. revenue by type, referendum revenue as a percent of total revenue, net assessed value, tax rate. We added these two additional ones because we think they are equal in importance even though the state of Indiana does not require you to approve this. But this these are the indicators as of 1231 2024. This is a preview. You'll see this report come January as well for your uh review. average daily membership. You'll hear me talk a little bit more about this

120in the coming slides and Dr. Zup and I welcome her her insights as well. This one probably puts us at the biggest risk. You heard the gentleman back talk about enrollment and the way we're trending. The stoplight feature means that anything that's not green really means that caution. We need to investigate, understand why it's occurring or what's occurring, why it's occurring. Fortunately, as of 1231 2024, there's not currently a concern. But if this enrollment trend continues that we'll see in the coming slides, that could turn into a red at some point, but at this point, we'll consider that a yellow fund balances. You'll hear one of the greatest strengths of it schools is the strong cash balances. We have a really strong balance statement. That's kudos to this board for being pragmatic, having a plan

121in place. 2024 we ran a balanced budget. So we're yellow, not accumulating too much in the way of of additional um because the education fund ran a deficit. However, the operations fund ran a surplus. So we put it in yellow at this point 2024. You heard me say number two fund balances fund balances at percent expenditures really strong. It's a great place to be. gives you a lot of flexibility in addressing the challenges that are coming ahead with SBA1 revenue by type. There is really only shouldn't say really there's only one mechanism or le you can pull from revenue for schools property taxes. So revenue by type you've done it but you can so call it a green referendum as a percent of total revenue. This just means that you're relying upon referendum revenue and

122your total budget is not good or bad. It's just a fact. You're fortunate to have a referendum, but as we look ahead, we'll see what would happen if we don't have a referendum. Net assess value. You all saw firsthand and experience the changes with BP and what what happened with their assessment. So, we had a couple of drops in that assess value. So, we'll call it yellow, but we'll continue to monitor as two of the three counties have come out. We dropped. So, we'll have to uh continue to monitor that tax rate. You'll see me say later on the bitten schools has about a 86 cent tax rate in 2025. The state average is dollar2. So you're well below the state average. Circuit breaker losses as of right now from a percentage standpoint you're lesser

123than some of your peers and percent of your total budget being less than 1%. So sort of greater losses have been manageable, easy for me to say. The debt rating, we'll we'll show that in the coming slides as well. You got a really strong credit. So two charts separate but both related to enrollment. This is your legal settlement in residential enrollment from 2017 to 2020. These are all data available from Indiana Department of Education. The blue bars represent the number of kids K12 living within business schools. And this is one that piqued our interest in looking at these data. In 2017, we have 1,935 bitten schools kids K12 living within your borders. So that residential enrollment, excuse me, that legal settlement, if you look at the line, try to best fit line is going down,

124but 2024 1,783. >> It almost tracks the same for the ones that are. >> You're right. >> Is that county or district? >> District. So incorporates kids live in all three counties. So the correlary to that is you can see the gap between the blue and the yellow. So that's essentially what this is. So the purple are those kids who live outside of B schools who are attending B schools. What is that pink color my color? So pink are the ones who live within schools but transfer out. So then you can see what that net transfer impact is. But the one that has my radar because Dr. Zupin and I have talked about this one is this is not just a bitten schools challenge. Heard me say I know you've heard Dr. Zupin say it

125as well. In the state of Indiana this is a common challenge for rural schools. I think what 60ome counties of 92 are decreasing in population. So kind of being your lifeblood of your school district on that blue line you all are keenly familiar with. So now looking at everybody's favorite topic we look at some of the expenditures. So if you combine the education fund which is supported by state revenue and the referendum fund which is a property tax revenue it supports teaching and learning. So we talk about what are we paying for out of education fund and referendum. The 100 object code are salaries. The 200 are benefits. Salaries and benefits. You can see over the past three years, purple being 2022, blue 2023 and yellow 2024. Pretty much everything we do out of these

126two funds are for PG. So this is very common. throughout the state of Indiana. Teaching or education is a people based industry. So right within what other schools throughout the state of Indiana and nationally are doing. Similar to the operations fund, majority of the cost are salaries and benefits when you combine the two. So compensation for staff operations fund. Remember that it's not just teaching and learning, it's how you operate your school district. So 500, 600s are transporting kids and your supplies. 400s are let me take a quick step back. 100 100s to 200s are staff compensation. 300s are some some contracted services. 400s are building maintenance type of items. 500 and 600 are some contracted services and supplies. Then the 700s are your capital investments. So learning more you all recall during co there

127were some delays in shipping. So my school was delaying some of the time was not as clean as we would have hoped. you can see some of the impact year to year with uh delayed delivery of school buses. So that's how we spent our dollars over the past three years. Bon schools has a A+ credit that is considered to have very high grade credit. That is a very strong credit rating by standard of course. Standard Core is not doesn't just rate the state of Indiana, but it rates school districts throughout the country. So having a A+ rating is great because anytime you sell bonds, you're going to improve by about three to five basis points every time you're a notch higher. So how that compares to the rest of the state of Indiana, you're in

128this yellow. So you're in good company with a lot of your peers throughout the state of Indiana. So we did a SWAT analysis and working with Dr. Zupen and Tracy. So SWAT is like what are our strengths? What are our weaknesses? What are our opportunities? What are strengths are got a strong credit rating? We've got really strong cash balances and we have a comparable low total tax rate compared to our peer statement. And that's not by accident. These are things that you have strategically targeted to put yourselves in good position. Some of the weaknesses though as we look ahead is residential enrollment is decreasing. We talked about that blue bar transferred out of the district are also increased let revenue loss about 134,000 in 2028 that expenditures projected to outpace revenue beginning in 2029 that

129we'll look at then concentrated amount of excess value compared to large tax. Those are opportunities though You got some flexibility with how you may want to plan for the referendum. With those strong cash balances, some of the challenges presented by SEA1, those strong cash balances that buys you some time to make some informed decisions going forward. We'll talk about the debt schedule later on about how your debt schedule at this point all debt matures in 2029. You position yourself to consider capital investments in 2025 as a result of that work and we're monitoring possible refunding of the 2016 bonds. You heard Mr. Bars talk about how bonds are are mortgages. Yes, in some ways. Um but what I would say here is you can't refund a municipal bond anytime you want to like your own

130mortgage. They have call dates. So to keep that tax exempt status you heard talk about there's a provision that we can only refund bonds within a 90-day window before the call date keep the tax exempt. Your takeaway there is these 2016 bonds having July call date. So if interest rates are low enough we'll seek an opportunity to fund. We'll see the threats as I see it is legislative actions one prison's challenges no doubt about it especially with net medicine value economic uncertainty what could happen with inflation seems to have subsided here in in recent months so the federal government is passing more costs on Medicaid down to the state right Now, Medicaid is the second largest expenditure in the state budget. If they pass more cost on to the state, K12 and higher ed are

131the largest portion of the state budget, about 47%. Medicaid's about 26%. So, if Medicaid eats up more of that pie, that could present challenges to schools and higher ed being compressed. We'll see what the Medicaid impact is in the coming months, which means they could open up the budget again, which is not something they would do during a short session typically unfunded mandates, new standardized tests, and high school diploma requirements, then the wind. So, those are the threats posed. So, let's get into all of those factors being together. These are schedule assumptions. I'm not going to read each and every one of these unless you want me to bore you to death. Point being that working with Dr. Zupin and Tracy trying to use some of historical trends to help project out where we're going.

1321% annual decrease in enrollment anticipating and projecting a 2% increase in state funding yeartoear. Hopefully we get that from 2026 on circuit breakers based upon historical trends. So we'll see what happens if circuit breaker is impacted by decreasing net assess value increasing tax rates. So we'll have to monitor that going forward. Net assessed value is based upon what we're seeing in SCA1 which is somewhere probably between a 2 to 3% decrease annually net assessed value unless we get really strong growth. Our levy projections are based upon 4% growth in operations fund and a 3% growth in the operating referendum. So those are our revenues from a high level dispersements assuming a 4% increase for salaries and benefits in order to keep competitive in the marketplace beginning in 2026 for all other expenses assuming 3 and

133a.5% in 2025 3 and a half% in 2026 3.25 2027 2028 and 3% from 2029 to 2033 somewhere close. Some would argue that's probably high for inflation. Some may argue it's low. Basically on trail of where we've been the past few years in the debt we'll see it's all outstanding plus approved debt that we'll review. So what it looks like is we combine the education fund which is state funding the operating referendum and the property tax fund operations and rain. The blue bars represent our annual revenue yeartoear. So the 2022 through 2024 numbers are actual based upon what was submitted to the department of education by tracing and her team. And the yellow represents the annual expenditures year to year. And you can see this black line which represents the cash balances at the end

134of every fiscal year. Reminder that schools like all but two school districts in the state of Indiana are on a calendar year budget. So these are the cash balances as of 1231 of every year. So based upon the assumption of you know what let's keep the referendum rate at 31 cents from 2026 through 2028. So you can see this blue line the blue bar year to year is going to keep up with that 31 cents. Let's make the assumption that the referendum is either not sought for renewal or we just let it fall off. You can The change from 2028 to 2029 is that drop in the referendum. So assuming no 31 cents actually zero cents beginning 2029. But if we continue operations as normal, we would peak in 2028 with our cash balance of

135an illustrative about 36 million. Then through 2033, you can see we'd be back down to about 11.8 million at that point, assuming that we did not realign or right size our budget as a result of the drop in referendum. >> Do do have schools because you've worked with schools with referendum, >> have they ever changed the rate that was voted for? >> Yeah, good question. So, um, so many different scenarios play out and community by community decision, but there are some I live in a community who is seeking a referendum at a lower rate than what was approved back in 2019. So the other illustration in talking to Dr. Zupa and Tracy is what if scenario? So what if we didn't tax at the full 31 cents over the next three years? What could the

136impact? Great segue by the way. Okay, >> so looking at 2026 through 2028, if we set the referendum rate to 15 cents, if we essentially cut it in half, what would that look like between these four funds? And you can see that still running a budget surplus in 2027, but in 2028, that's that first year of our LIT revenue going away. At that point, the model from where 2029 we ran a deficit in the 31 model, the 15 cent model, you actually start to see a slight deficit based upon these assumptions in 2028. And again, we assume that falls off. It's not either soft renewal or is not extended. That's again why you see this drop in blue 2029 through 2033. And rather than having 11 million in the bank, expected at the end of

1372033. In this scenario, we don't have about $4.2 million based upon these assumptions. If you don't mind, I want to go back to that. So, what what are schools thinking when they are midway or closer to the end? What what is in their thought process on changing the amount? >> You're saying for when they seek renewal or just >> prior to? >> Yeah. So, if I'm in your shoes, I'm letting my projected cash be my lead. So the board gives direction to Dr. Tracy on what are we comfortable with cash balance wise in the short term. So this is a projection through 203 but as you approved Dr. Zupin Tracy will be presenting the budget here in the coming meetings. So as you set the tax rate you don't have to make decisions tonight. This

138is just what we're seeing based upon these broad assumptions going forward. So as you determine your budget and approve the budget, you still have another step in the process. So after you adopt your budget, then you'll get the 1782 notice, which I know these gentlemen are familiar with with the county as well. Then if you make any adjustments at that point is when you certify it. So there's what three potentially four more months of this process to play out. At that point you'll know your enrollment, you'll know what your total net assess value is and you'll know what your program services and needs are to determine what is the appropriate tax rate for 2026. So we're just trying to give you a sense of where you could be headed directionally based upon a comparison of

13915 cents or three months. I didn't we last year we we went for the 31 and we didn't get the 31 right >> because of the the cap and what you could receive. >> See, we're not getting I mean we don't we're not 100% in control of that either, >> right? No, you're you're exactly right. That's why we assume% growth. So the state of Indiana did cap the levy growth >> because a lot of communities were growing gosh 5 10 15% depending upon the community. So the state of Indiana capped it at 3% >> for everybody that way. Yeah. >> On the red, green, and and yellow. Uh so for the cash reserves, um us being healthy, is there a rule of thumb? Is there a standard that you know we should aim for? >>

140Yeah, good question. So the old tradition, I shouldn't say, you know, the traditional model is that you would want nothing below 15%. That way you have two months of reserves on your books and you can maintain. So if the state of Indiana delays a payment, the county taxes are delayed because of new property tax, you got two months of reserves to make sure you make payroll. Well, what the industry standards are now going to is either more of a rangebased system or what's called a riskbased system. So in if I'm in your shoes that smell test like what is a appropriate range somewhere between 8 to 33% depending upon the risk for the district because the reason why I say 30 as much as 33% is because if the county were to delay because of

141all these new property tax changes they got to do a lot of software but you still have to make your debt payments. What we don't want to do is borrow money to make the debt payments. We don't want to borrow money pay back our money. So, we want to make maintain a strong balance. So, if we have to make a debt payment, we can make cash on. Do you know has has any or do you know that I guess it's a question any legislation that it's coming out for the windmills because if they're not supplemented, they're not efficient. And I don't know. I mean, that that scares me with we're heavy on the windmills and that can be cut. >> They're not making money. It's a good question. I'm not aware of any legislation coming

142up. That doesn't mean it won't. >> Yeah, you're right. That's why you would for that case it might be more appropriate to more of a risk based amount because if you look at that portion of your assess value that's relying upon windmills and that goes away how much revenue are they paying for your referendum and want to keep that cash on hand >> 8 to 33% that's a big range >> so it is intended to pretty wide. I think the the statewide average for all school corporations, I think this number was going back to 2023, but it might be 2024. So, excuse me for not recalling exactly the top of my head, but the the school average was about 33%. So, what question you might be asking is, okay, that gives the school corporation So

143what does that mean to the average taxpayer though between the 15 cent tax rate and the 31 tax rate? So let's go back to that average tax $153,700. This based upon the 2026 deductions. So 48,000 flat 40% supplemental. So an average taxpayers being $63,000 in net assessed value. So on an annual basis, if you set the rate at 31 cents in 2026, that 31 cent tax rate, we got $197 per year or $16 approximately they pay for extra similar to that because it's roughly half that average taxpayer would have their tax bill for the referendum rate cut in half for that average taxpayer. 5 year for that 15 cent referendum tax rate land $618 per acre. So if somebody owned 100 acres we're paying about $615 per year for that 31 bore roughly half 15

144cents of about $298 that does incorporate Mr. melon that does incorporate the 6% deduction for the 2% properties. Then for rental property thou for each $100,000 you're talking with a 6% deduction for rental properties as well $291 for 31 cents about $141 for 15. But for commercial property, no deduction if it's non business personal property. So that for each $100,000 of commercial and industrial property, 31 would be $110 over 15 $150. That's comparison to what it means to average. So to wrap it up, this is the existing debt. I know this board's seen this many, many times. You heard me say that Benton Schools has an accelerated debt payment. So, as of today, we're in budget year 2025, a little over $3 million total in annual payments. So, you pay twice a year. You pay

145your debt on June 30th and December 31st. Why? Because it coincides with property tax collections. Pay your property taxes in May. Fit schools gets it first. in June. Okay, you're probably taxed in November, make the debt payment in December. So the gray is the outstanding debt as of today. If nothing changed, debt would mature 2029. prior boards. Part of the strategy is like you knew similar to every other school corporation I think we working with in the state of Indiana, your list of capital needs far exceeds what you can issue in debt. So as a result, we always try to structure to give you the option that if you want to issue new bonds to make capital investments, that's why this board cut out some capacity in 2026 knowing that you They want to issue

146bonds in 2025 to make those capital investments. So we talk about it being tax neutral. We can structure these in a way to avoid any type of tax rate increase. So this is an illustration for the proposed $6.6 million bonds paying over 20 years. This is what it could look like. We can we can tailor it to whatever the board's target is from a a tax rate standoint. not slip bonds even. So whenever we do that, we can change around the maturities and push these down, push the first few years down and push the better years up. So again, it's kind of a what you measure on on how you want to target from a tax rate and tax management standoint. >> So when you're talking about all those those list of items that we

147want to get done, capital projects doesn't cut it. So we use, you know, typically the geo bond is is the way to go, but with this cooling off period, could what does that look like to us? So we I believe when I came on, we were uh issued a geo bond for the technology and safety. So what And it's typically a threeyear, two or threeyear payout. So what does that look like? This cooling off. >> I'm not an attorney. >> Okay. So I I want to any bond council to confirm. So but my understanding is from a geo bond perspective it's kind of like a three-prong test. The first question you ask yourself is the last time we issue geobs did it have a twoyear or fewer repayment. If the answer to that question is

148yes okay then what's the next question? Does your proposed bonds have a fiveyear or fewer repayment? The answer to that question is yes. Then you go down to the third question is well then when do the prior bonds that have a two-year less maturity, when do they mature? There has to be a cooling off. So let's say you make your final payment. Let's say you have two-year repayment or excuse me a two-year maturity. you issue bonds for example in February 2024 in the final payment. It's not when you make not when Bon schools makes a payment but actually when the bonds bond payment is made in January 15 of 2026 since that would have a what a 23month repayment you could not issue geo bonds again from February for when you initially sold the initial

149box. So it's a one year cooling off when the bonds mature, not when you make your last. >> And uh do you know what the premise was behind that? >> Yeah. My understanding just based upon listening to the testimony is a lot of school corporations because of a lot of schools schools have a laundry list of capital needs. So a lot of schools were issuing geo bonds once they got their net assessed value in August or September issuing a small geo bond just to keep the tax net assessed value was going up. That means so too was the tax free. So that tax was going up to homeowners. So it was a way methodology for the general assembly to basically say no you can't do that any longer. If you do, we have to have

150more than a five year repayment. None of this one or two repayment. Good question. So, this is not final. I want to be clear about this. This is not final. Whatever the board determines from a target target tax rate standpoint, knowing that if netis value goes down, we might not be able to even absorb that payment that we're estimating here in 2026. So just by the sheer fact part of that total assess value goes down we may have to push down the capacity anyway. So we'll continue to work Dr. Z and Tracy and ultimately get your direction on how we may want to approach that. That's all I've got. I know that was probably pretty lengthy. >> I do want to ask about the refunding because I think John you had mentioned that my dealings

151here and at my previous school, we never refunded. It was a you pay off and then you go to a next one. So the refunding is that common? H do you know if B's done that before? >> Yeah, because you would only refund if you can save dollars. There's a specific state statute that says you can only refund if you save on interest. So the point being that what a lot of schools do and I would recommend the same to J schools is pass a resolution give yourself a minimum savings threshold that way you got all target exactly what the parameters would be for us to even consider refunding and if we didn't generate savings still move forward so you've given Dr. and Tracy the authorization but not required. We would only do it if

152we can save on interest. I made that same recommendation to school board last week and CFO the other day. So there's no harm in passing the resolution because ultimately if you can't refund because interest rates are not where they should be, it means you got a good deal when you first sold the bonds and that's great. Got to go home mortgage. refunded back when interest rates are low and you can't refund now. It's okay. That means you got a great interest rate. So just again it puts you all in the driver's seat to make decisions that are best for you and your taxpayers. >> So when we had our retreat um it was talked about quite a bit with um when it comes time for renewal, you know, will we need the whole 31 cents?

153Should we reduce it? Should we have none? And so a lot of that discussion was about the renewal, but you and I, you know, I've talked to you here in the last week or so. You you have brought up other options. I I did not know that schools did that. It and I'm not implying that we should. I'm just saying that that was a surprise to me that that after a voted referendum amount that that could be changed. And so, um, that's something that during the the retreat we did not talk about. And I don't know. I guess I'd like to talk to other schools with referendums and and wonder why they might do that, what the strategy might be. >> Yeah, >> they did it here, right? They reduced they voted. very the very

154first one we we did the I was not on that board but they did >> the board prior >> and when we came on >> it threw off the whole >> projection but then what we did is we we stayed conservative then the next two years trying to get a better >> they voted 15 cents on the referendum which got us in a hole essentially because it could have been 20 cents or whatever. How you calculated that kind of gives you a visual what you actually on your, you know, to stay a balanced budget essentially. Like why why ask for a referendum and take 31 cents if you only need 20 cents. But it got us the and I wasn't on that board either, but they voted 15 cents. So when the new board kind

155of came in because everybody was upset about that. We had that vote right away 31 cents which also upset upset the taxpayers. So now like that's that's what I when I was on the board I was like let's just stay balanced. Let's not take more than we need. But that's that's kind of what we're all trying to get on where we were already in a hole. So, we need to work on that and even vote on I think we we vote on it every year, don't we? >> Yeah. >> for the amount for the amount that we take, but the voting for the 31 cent, it cannot vote. That's the cap. Correct. >> Correct. Y. >> Now, the new langu There's new language. So whether it be tax rate driven the ballot question now it's

156levy driven. So you're setting a max levy if you were to pursue. >> So you're not setting on 31 max. You're saying okay we want to generate $5 million a year. We're not going to $500. >> But West Lafayette they have a referendum merely to pay teachers. So they have Not that that's a need. They do it so that they have the money sitting there if they need to pay teachers more. What my understanding was from a board member tal I mean how can you guys be where I mean I because they grow and they have you know a lot of students that I found out it was for them to control pay their teachers >> and they've never had a problem getting it passed though always been a high percentage. >> Correct. The only

157mechanism that the general assembly has given schools to pursue to provide teachers more compensation is property tax. >> All right. Thanks for sticking with me. >> Thank you. No. Yeah. Thank you. >> I do. Before you leave, I want to make sure asking I don't think I've got anything. The only thing I would say is when you're looking at the average homeowner um in Lafayette or a big city where there's tons and tons of houses, that makes up a huge percentage of the pie. That's not the case here. So, we're talking about average. That really is an average because probably it's probably less than 10% of what actually comes in. I bet >> yeah I think we're like 93 94% comes from >> I go back and calculate that number. I know we've got it

158somewhere. That's why it has such a huge impact. I mean, when you're talking, you know, just a little bit on a $150,000 house, that's not that much. You start looking at the who that burden is on. Thank you guys for attending. >> Thanks for coming. >> You're in our shoes. What do we do here? >> What do we do from here? So, >> I mean, I I didn't even know this when we were talking in July.