001Since it is now 6 pm, I will now call the BA Valley Central School District's March 26th Board of Education budget meeting to order. Would you please stand for the pledge of allegiance to the flag 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 district vision as a reminder to all of why we are here. The vision of the Bow Valley Central School District is to become the best rural school in New York State. We will accomplish our vision by providing exceptional opportunities to all learners and preparing them to set and reach their future goals by embedding our core values into their student experience. Roll call. Mrs. Belle, would you please take the roll call? >>
002Tom Broadick, >> here. >> Paige Pder Sult, >> I'm here. >> Paul Fenton, >> here. >> Darlene Hooper, >> here. Sarah Coleman >> here. >> Deb Spalding >> here. Jason Welch >> here. >> Satie Burgess >> here. >> Thank you, Mrs. Belzilele. Attendees, if you haven't done so already, would you please sign in so we have an accurate attendance record? The sign-in sheet is located on the table by the entrance. Thank you for your cooperation. Executive session. Specifically, the board anticipates entering into executive session for the following reasons. A number eight to discuss the proposed acquisition, sale or lease of real property or the proposed acquisition, sale or exchange of securities, but only when publicity would substantially affect the value of these things. Do I have a motion to enter into executive session to discuss
003item 6A? >> Motion. >> Thank you, Page. Second, Tom. Thank you. Any discussion? >> Okay. All in favor? opposed abstensions. Motion passes. Um, we anticipate being back shortly. >> Yeah, I think quick. >> Okay, very shortly. We shouldn't be gone very long at all. >> Okay. Do I have a motion to >> um enter reconvene regular session? >> All motion. Thank you, Paige. Second. >> Second. >> Okay. All in favor? >> I opposed. >> Okay. Abstensions. Motion passes. Okay. We have returned to open session. At this time, do I have a motion regarding the SECRA notice of lead agency designation and determination of signis significance resolution for 7510 Court Street? Motion. >> That's not on yours, but >> Okay. Do we >> That's why we were like >> So, we have to >> Yes. A
004motion. >> Motion. We have to go through that. >> Okay. Thank you, Deb. And a second. >> Okay. Thank you, Tom. Any discussion on this what we just discussed? All in favor? >> I opposed. Abstensions? Motion passes. At this time, do I have a motion regarding the SECRA notice of lead agency designation and determination of significance resolution for 7520 Court Street? Any motions? >> All motion. >> Thank you. Uh Jason second. >> I'll second. >> Thank you, Sarah. Any discussion on this? All in favor? >> I opposed. Abstensions. Motion passes. At this time, do I have a motion regarding the SECRA notice of lead agency designation and determination of significance resolution for 7521 Court Street? Motion. >> A motion. >> Okay. Thank you, Paige. Second. >> I'll second. >> Thank you, Deb. Any discussion on
005this? All in favor? >> I opposed. Abstensions. Motion passes. Okay. So moving right along uh budget discussion 25 uh 2026 27. Dr. Meyer, would you like to begin? Okay. So, uh we're going to review some of the things that we talked about last month and give you a couple updates. And we do have the legislative budget to discuss. And I will uh open it up to Hayden if he has anything to add at any time. Feel free to jump right in. And I'll I'll try to stop every few slides or so to see if the board has questions, but uh feel free to stop me if you have questions. So reminder, budget timeline in New York State. So executive budget January, which we received. We uh recently received the legislative budget. The board has not
006seen that yet. I will give you the highlights. And then we're hoping for an on-time budget by April 1st, which will be an agreement between those two proposals. Uh the tax cap update from last month uh is basically that the numbers are not changing. We're still 4.24%. That's an increase of $363,237 for an overall levy of $8,99,741. Um I can put the exact numbers up but for reference in our CDES region um the tax caps are between point is so 0.4%. 5.95%. Uh we're expecting one district to exceed the cap uh up between 12 and 15% is our most recent estimate. And we were just found out earlier today that another district was also exceeding the cap. I'm not sure you know by how much. I don't know how much they are, but um the
007other district did determine at their board meeting last night it'll be 12%. >> 12%. Great. Thank you. Uh so what the tax caps look like for all of our u um the Bosey's region districts. These are on the board and I put these here just uh for reference really for for two points. one, um, just so you can see where we are in the region. And two, um, just to, uh, emphasize the fact that this is not a 2% tax cut, right? Even though we say 2% tax cut, you'll notice that none of these districts after the formula end up at 2%. Uh, so you look at a uh, 5.95%, that's one of our neighbors. Shay-Z is probably the most uh, similarly sized uh, district to us at 4.4. Mariah, also one of our neighbors.
008And then we fall um in the fourth slot there. But again, this is based on a book. Um our incentive aid, as a reminder, um we continue to lose $65,784 each year and we'll continue to do so up until um year 14 where we get the last um amount of that money. As I mentioned the tax loan increase that the cap employee retirement system is up a bit uh from 16.5 to 17.6 teacher retirement system is down from 9.59 to 8.24. Uh so all of that uh a quick update from the last meeting. Um any questions on any of that before I move to the the revenue update? And there not not much here just like I did last time. Um you you'll see this here uh in the three sections, but still looking at
009that $ 8.9 million number. Couple other um sources of uh of some local funding um but not much. And uh then the total state aid coming in at 6.6 million and for a total of 16.417975. Uh and again that is um similar all similar numbers to last last month's date expenditure update. Uh Aiden, do you want to talk about any changes that we had to this stuff in it? >> Yeah, so only a couple changes. Um since typically we get our Bosey's numbers that first week of March. So obviously our February meeting, we didn't have final numbers. So those increased um just a tiny bit. Um we're seeing a larger increase on the Boseie services because of some changes at Boseies. Um, but we'll get to that in a later slide. Um, but really since
010since last time, um, the other category has has changed a little bit and that's just contractual stuff that we've gotten in, but there um I did also change the bus fuel. I don't know if anyone has gone to fill up their gas tank in the last month or so. Um, so I I we did prepare for a pretty substantial increase in our in our fuel costs. Um, but that is really the only changes since since last month. >> Thank you. >> Do you feel like it that substantial enough of an increase? >> So, uh, we're going to get to this a little bit later, but since you just asked, um, you can see right above it, the fuels for the building is only going up 364. Um, when we get into the legislative proposal, we
011could potentially see a little bit more of an increase in our foundation aid. If we do, that's likely where it would it would have to go because I was It's really tough to estimate fuel prices. >> Yeah. >> Especially because they just increase so much. We only pay for fuel once a month. So, I need to wait to get that next bill to really see how it's hitting us. Um, we purchase fuel off of state contract. State contract updates every single week. So, we get a new fuel rate every week. Um, so I just need to see what that's doing for the month of March. So, uh, to Hayden's point, so this is the legislative budget proposal highlights. Uh, so you haven't seen this yet. You've seen the executive. And as a reminder, they need
012to agree, right? So, and that that is often easier said than done. Um, sometimes they meet in the middle, other times they don't. Uh, so the executive proposed 1%, the uh, one house they propose 2%. Um, and that's what Hayden said. So that that difference of that that 2% that we would put toward fuel. Um >> what's great is both of those are less than the inflation rate. >> Um the uh in so there's also increased funding weight. So every student every student category has a certain weight to it. Um English language learners are one of those categories um that increases. We've never had uh um we we've you certainly had some over the years, but never like a ton that's going to really um affect our formula too much, but there there's some increased
013weight there. Um same that homeless and foster care students adding some weight there as well. And the universal prek expansion continues with a goal of full day prek for all four year olds by 28 29. So that definitely does have some potential for uh for impacting us if in a positive manner impacting our district. And the Senate also proposes transportation aid for prek students and the assembly proposes expanding funding for three-year-old prek. So let me just clarify. So if if it doesn't say that the Senate proposed something or the assembly proposed something, then they both propose together. Okay. Uh just uh to clarify that. >> Okay. Um >> right sorry right now the um prek students we don't get aid on their transportation but do we get aid from AAP for that? >> No >>
014we pay AAP >> for the transportation. >> No uh just in general we pay them for prepaid services but we do not have we don't have any income from them. >> Um okay facilities and capital projects. So, uh, they're proposing that renewable energy projects are become eligible for building aid. The Senate is proposing increased building aid for high needs districts. As a reminder, we are not a high needs district. Um, the um increasing the capital outlay limit from $100,000 to $250,000. This has been proposed a few times. This has been advocated for, I'm going to say at least five years, maybe maybe more. Um, so as a reminder, the capital outlay, these are these little projects, um, $100,000 projects that are part of the budget. Um, so we have one in the budget for this
015year and, um, increasing in for $100,000, an architect needs to be involved, right? So, and believe it or not, the architect likes to get paid when they do this work. So, they eat some of that $100,000. So $100,000 doesn't go um as far as it potentially could. So a $250,000 project really just um gives or gives districts in the state just some more options. They can do more um as part of those smaller projects. Um so that that's a welcome change for us. We would still, even if that were to pass, we would still keep ours at 100,000 for next year. Uh, and then, excuse me, make changes in subsequent years if we decide to do that. Uh, also looking at building aid for electric bus infrastructure and garage upgrades. Um, and both houses would
016sunset, uh, it's called Excel facilities funding in 2028. Um, we did a little bit of research, so if our capital project were to pass, we potentially could qualify for Excel funding. It's just a little bit of extra funding um from the state. Uh so um we would need to get something approved before 2028. It doesn't need to be built before 2028. It needs to be approved before 2028. >> I got one question. Uh the elevator over in main is any money been put aside to get that repaired? I guess it's in it needs some type of repair to it. Um so I do not believe that that is part of the capital um at at this time >> it wouldn't be. >> Yeah. >> Is there any plan in the budget for that for this
017year? >> So I know that the elevators were part of are part of uh the um capital project renovations >> um you know for for the the bigger project. Um, and you know, if if that goes through and maybe we need to maybe the elevator doesn't last long enough, you know, we need to fix it prior to that, then we can take steps to do that if needed. But, uh, hopefully hopefully it can, you know, wait until the capital projects we can get aided. If we were to do it now, we would be paying just out of pocket with no no aid on the back side of it. >> We also we have a monthly service contract with Otis. >> It's currently working. >> Yeah. Oh, it is working. >> Okay. All right. >> Okay.
018Uh then the um the library materials uh are jumping from 6:25 to 1133 which is almost double. >> Wow. >> Which is great. So our what do I think we get about $12,000? We might get $20,000. >> That's close. >> Yeah. even if it goes to seven. >> Yeah, it's a good jump. Um increase in uh the career and technical eight ceiling. So again, that that's good. So a lot of this is um not huge for us, but it but it all adds up, right? Uh both houses restore teacher center funding. Uh so again that doesn't necessarily help um the district directly but uh like the uh North Country Teacher Resource Center at Plasma State that would be something that would uh get the funding and both houses expand farm to school reimbursement. So that's
019great. Um Senate calls for funding to support special education services uh to age 22. the assembly would backlog uh would eliminate the backlog of prior year aid claims and community schools funding increase. Uh Senate so slight difference here senate is at 105 and the assembly is at 100 million for that. Um now also additional funding for CI civics education AP exam fee waiverss and scrapia as center graduation measures implementation and climate education and financial literacy. Uh so which is great. These are um so some of those are have been mandated for climate education and financial literacy have been mandated by the state and effectively have been unfunded mandate. So this would give us some funding for that. So um I would say nothing um nothing huge there but uh but then all that's up and
020we'll see what they agree on. Um and then uh you may have heard um the issues with tier six. Um for any of you that were teachers in your state teacher retirement system um they've been calling to fix tier six for a while now and they are looking at um possible changes such as lowering the contribution rates uh early retirement earlier or retirement options uh and adjustments um to overtime calculations. But there's enough. But none of that is in the final budget language yet, but those are the proposals. >> Um, >> please. >> I have to do 42 years >> because I'm a tier six member. >> How many years do you have in >> three? >> I love the other 39. >> No, that's that's not even 42. >> I'm probably gonna be there
021with you for different reasons. >> You have you have a big calendar. I >> it's a lot of days to count down. >> Um any any questions on the legislative update uh before moving on? >> Okay. So, I just want to say one more time. So, none of that none of that means anything until there's an agreement. Uh and again, hopefully it it doesn't seem that both parties are as far apart as they have been in previous years. doesn't mean anything, but I'm hoping that that means that we're that we can get an on-time budget. Just makes, you know, planning is just a little bit easier for us on our end when there is an on-time budget. Okay. Uh health insurance rates. Health insurance is one of the biggest costs for the district. Probably probably
022never behind salaries. Um, and um, if you take a look, our platinum plan 2, um, the cost for a family plan is $36,888. That's a 3% increase. The individual plan is $14,174, 3% increase. Medicare primary 0% staying at 10,669. Uh, for the and and all of our active members around platinum. 2. Um, currently no actors on platinum plan one. You'll see that that one is more expensive and is 48,760 6% increase there. 6% increase on the individual plan 18,735 and again no increase on the Medicare primary uh that one. So 11,931. >> Quick question. You say no current act. Could someone become an active one at this point? Not not no. Um but up until was it this year or last year other districts they're they still were allowing some um some activives but we
023but the consortium has closed that up. >> Okay. >> Uh workers comp is down uh from 59 946 to 5147. So, uh, moderate decrease there. 3% decrease. Our fund balance projections. Um, Hayden, you want to walk through this while I got a drink? Great. >> Yeah. Um, so obviously fund balance is decreasing. That is mainly due to the moves that we did, I believe, at the November board meeting. November or October. Um, I definitely want to stress the projected part. This will change. Um I I typically find um if we ever have surprise purchases or surprise repairs, they typically come in the spring. Um >> like an elevator. >> Yeah. >> Um we do we're we're monitoring the pumps right now. Um I do know that at any moment could happen. Um so we're that
024that is why it's definitely projected and we will see that change. Um, and then part of that too, um, we have some some upcoming retirements. So, um, typically around that time I I'll look at can the budget support those retirements or do we need to pull money from the employee benefit reserve. Um, I usually don't do that till first week of June. Um, so we check that. There's a lot that goes into just that unallocated fund balance. Um, it it affects everything. It affects our entire financial situation. So, there's a lot of math that goes into it. The nice part about unallocated fund balance is as soon as we hit July one, it takes me two seconds to calculate it. It's just the projection part that goes into it. So July one, I click a
025button and it's here you go. This is what you got. Um, so we'll we'll see some changes. Uh, we'll update that as we do more budget presentations. So that number will change throughout the months. >> And I'll I'll let you keep rolling with this one. >> Um, yep. So, four, we commonly hear the 4% uh rule. Districts can't have more than 4%, districts can't have more than 4%. Um, I kind of want to explain why that's not feasible. Um, so for us, 4% um so it's based on the 4% is of your next year's budget. So, calculating our budget that we're planning for this coming year, um, our 4% would be $656,000. I want to point out we have no income over the summer. Taxes don't start till September 1st. Grant advances don't get paid
026until September October time frame. State aid doesn't start coming in until November. So what I have as of June 30th or July 1 is is all I have. So if we only had that 4% fund balance, that presents a major cash flow problem. Our health insurance bill every single month is $320,000. If we do not pay that on time, we are fined 1% every day. So there's >> I believe it is it's every day or every week. I know there there's I've never missed it, so I don't >> Yeah, please don't. This is not the goal. >> Absolutely. Never never miss that. Um luckily I share a wall with the health insurance consortium, too. So if um they usually know if they don't have it, we have to pay by the 15th every month. if
027they don't have it by the second of the month, I usually get a knock on my door because they know I'm never going to miss that. Um, payroll. Payroll is a a really hard one to uh estimate because of Oasis. So, they have all that summer programming. Um, so I I've said 180,000 is roughly what our payroll is over the summer, but it depends. Oasis really sways that um having that program sways our payroll. um Boseies is build monthly. So we look 432,000 um is roughly what our Bosey's bill would be for July and August. Um and then accounts payable just our regular bills is about 240,000. So you add all that up, it is significantly above 4%. Um we only have one district in our entire Boseies that is below the four at or
028below the 4%. Um and they do not pay their Boseies bills over the summer. um they only do payroll and health insurance. So they get hit with collection notices, they get hit with fines and it's simply because they don't have the cash to do it. It they have to make that decision of paying their employees or paying their vendors. Um so it is a major major problem. There's so many advocacy efforts about increasing the 4%. um our Boseis region I believe ranges from about high 2% is our lowest fund balance in the Boseis region and the highest believe Putnham is at 112% so they could not receive money for a full year and they'd be okay. Um they're also K6 and have 30 kids so a little bit different situation. Um, but just kind of
029wanted to touch on that 4% like it is a it's a pain point for every district across the state that it it is not feasible. And the other piece is there's nothing written into law about what the penalty is for being above 4% because everyone's above 4%. Um, so so that's kind of where we're at and why we approach fund balance carefully. Um, it's it's not just a decision it that's made lightly. It is because of cash flow. >> Yeah. Then we move it out as soon as we get a chance to and we're caught up. We move it out and put it into reserves. >> Yep. So this year we moved reserves in October. Typically we try and move reserves in in June. Um which I believe would be the plan again this year,
030but uh I had to do it late last year just because of our our audit. Um so that's why we we did it a little bit later. >> And what is it again this year with with our proposed budget? >> What is our >> fun balance? >> Uh I I'm projecting 1.8 8 as of June 30th will be our total uh unallocated fund balance. Our reserves are significantly different though, but that's in later we talk about reserves. >> Thank you. >> There you go. >> And the the reserves are here. Um I I'll let you keep going. >> Um so I I did put the balance as of February 28th um just because it's the most accurate. Um, and then what I'm projecting for June 30th. When I say projecting, I'm looking at what's our
031average interest rate. Um, so I did project our interest lower because we're seeing every single day the interest rates. Well, they were dropping. Now I don't know where they stand. Um, and then any usage between now and the end of the year. Uh, so retirement payouts, we are expecting to have two retirement payouts um, as of June 30th. Um, and then uh, you see taxertiary, we we did put dissolve by the end of the year. So that'll be a discussion at a later board meeting. Um there are very very strict guidelines on a taxertiary um reserve and one of the requirements or the biggest requirement is that we cannot have more in that reserve than our pending claims against the district. So I did contact the county um to figure out what our pending claims
032were and was told uh no idea. No one tracks that information. So, I had to go through I think I spent one night until about 3:00 in the morning because it was a very cool website just going through all the Essex County taxertiary claims and I really couldn't find anything. So, I when we get audited I have nothing to prove why we have 236 or $246,000 in that reserve. So, we would have to be in compliance by June 30th. We would have to dissolve that reserve. But, um I just put it up there because a decision has not been made about that yet. We don't know. And I I will say we have had claims in the past. We have paid out um some of those um claims and these are all like based on
033tax to students, right? >> We just did recently. >> Yeah, we did. >> We do every year. >> Um so those are SCAR claims. So there's SCAR. Those just go to the when you fight your assessment, you fill out the form. Those refunds that we're doing are not necessarily taxertiary claims are massive. Like we're some people I was reviewing one the other day in a different district. Um they are fighting their assessment of $4 million to get it lowered to 735,000. >> That would be a massive claim against >> Well, I immediately think of Essex Center because they fight their all their bills every year >> and they have for since they started. >> So they can take it further and do a taxertiary claim which is filed in Essex County Supreme Court. >> Um
034>> the the SCAR ones are just handled really between Um the assessment is it bar? Is it B? >> Y assessment. >> Those are just that that those are those little claims that we do every year. We budget for those just in case they happen. Um but yeah, the tax certary ones are are really the big ones. Um but as of right now, we it is not appearing that we have any open claims. tax certiary claims will stay open for 10 to 15 years before the >> I know around the there was one that carried over from pre merger that that carried over and I'm sure that's probably why it was why there was money in that reserve and then you horse track for less than you know so that was probably whatever was left
035over and then we just have to move it out but um but interest rates are remaining pretty strong so we're doing pretty well um the past couple months Um, so just kind of monitoring those. We do not touch our reserves. So some districts will take loans from their reserves to fix cash flow issues. We do not. Our sit in that account and they do not move. So we collect every dime of interest that we can. >> You're allowed to do that without a vote of the taxpayers. You're allowed to take a loan. >> Uh, when I say a loan, it's meant like a month loan. Like you have a cash flow problem, you can do that. It has to have a board resolution. If you count your money on April 1st and you take a
036loan and put it back before May first before you count it together so it doesn't count as >> using the reserve um >> kind of >> I really really try not to in this district never been a problem. So it's good. >> I like how much the transportation >> um other than that not a whole lot of updates. It looks like that um the totals are not increasing that much, but that's due to that dissolving um and and just some other miscellaneous changes. >> And how do you have the transportation jump up likeundred and >> um um because that was a mistake. >> Okay. >> Um that is because I took the taxertiary out and I was like why am I not balancing? I kept looking and looking and looking. >> You split it. >>
037I I plugged it in there because I can't take it out, right? I can't just dissolve a reserve without court approval. Um so we just had to plug it because >> we would have to have that discussion of where do we put that money? >> When you dissolve a reserve, it goes to your unallocated fund balance. Okay. >> Um we don't necessarily want to increase our unallocated fund balance even more. So we would have to either >> uh there really are no other reserves for us to create. We pretty much have them all. Um but all the reserves have very strict requirements. How much can you put in per year? How much can you take out per year? um like TRS and ERS is based on percentage of salaries that you can actually increase where
038you can only put in 30,000 a year. There's there's so many different requirements. Um so we are >> on our transportation and maintenance. Is that a million or 10 million now? >> Uh a million sorry >> the capital project one. >> No, the capital project's 10, right? >> How much is in it? >> No. What's >> Oh, the maximum uh I believe it is 10 on that one. >> In the transportation, do we have >> I believe they were matched >> because they're both technically a capital reserve. They're the same reserve. Um the state doesn't have a transportation maintenance reserve. They have a capital reserve. But you can do like sub accounts that for example retirement there's a retirement reserve. There's not an ERS or a TRS reserve. There's an ERS or TRS sub like
039the capital that would be like any any acquisition that you you would consider. >> You can do that. Any equipment purchases fall under that. The state actually just changed the equipment threshold. Again, found that out today when I was filling out a form. I had to call a couple other business officials. Um, so now equipment is anything above $10,000. It used to be five, which is actually very nice on the asset collection. We have to track every purchase over those thresholds and we have to depreciate it and there's a whole lot of math involved in that. So that's actually a a welcomed change. It's the $10,000 move. >> Okay. Um we did that. Uh so I I put on here the um veteran exemption discussion only because uh we you know we had planned to
040talk about that as a proposition. Um I just for for the public that's here uh I'll just share that uh we recently found out our plan was to put this out to the public for a vote about the veterans detention and uh we recently learned that that's not something that we are permitted to do. that that needs to be a board vote uh not a a public vote. So um we we will we plan to continue those discussions at our regular meeting and find a path forward from there. Um so our uh propositions will look like um the proposition one is always the the budget and as you've seen uh trying to do that tax on the tax gap. Proposition two would be the um board of education member elections. Uh and then proposition three
041uh the bus and van purchase and again coming out of the reserve. Proposition four truck and tractor purchase coming out of the reserve and then um five the library and since we've added some these numbers may may change a little bit. Uh but and then so officially and feel free to correct me but we've just added three. >> Not yet. No. Yeah. >> So, we started that process. >> Okay. Okay. So, at a subsequent meeting, we could potentially add, >> right? >> So, you decided to do that. >> Great. Okay. >> Can Can I backtrack a little bit and ask Kaden some question? >> You did it. >> Okay. Had um have you had an opportunity to view that long-term financial analysis by Dr. Tims? >> I I do it. I give all the numbers,
042Tim. That's the spreadsheet. I'm the one who has to do it. And um what was your initial reaction to his >> Okay, so we're >> we're actually going to go through it. >> Oh, okay. >> Uh okay. Um so, uh again, I say the same thing, Hayden. Um jump in. I'll turn it over to you if needed and feel free to ask questions here. So the key takeaways from the financial analysis um uh going through here. So the purpose is to review the long-term financial trends and plan. Okay. The analysis shows the projected expenses and it shows that those projected expenses grow faster than the revenues over time which is common across New York state. But the reason that it does that is that those projections assume that no changes are being made. As Hayden
043mentioned, he's he's tweaking things all the time. He's going to uh, you know, tweak things between now and June. We tweak things every month. Um, so you're making uh little changes as we go. You know, that affects staffing, programming, uh, and expenses. Um, but these adjustments are made every year. So, of course, you know, it's not like we say, okay, well, um, you know, health insurance is going up by 3%, uh, um, let's not do anything about that. We look at that and say, okay, where are we going to get that 3% from, you know, and so we we make decisions and figure out how to do that. But, uh, Bokeh Valley has remained financially stable since the merger and continues to plan for the future. And I want to say this as I'm going
044through some of these slides. So, we have three districts, and I'm not I'm not saying this in like calling out districts, but we have a district who earlier this week put something out that they're cutting they need to cut $3.3 million uh in their budget. Another district for the third consecutive year is cutting $1.5 million. Another one is going out uh over the tax gap to try to cover 2 something million there. Um another district is also going out over the cap. that's to cover these things because they they uh used a lot of that co money to help fill some of those gaps and didn't necessarily uh make some of the decisions that we have made that we have tweaked. Now, can I sit here and say that in 10 or 15 or 20
045years that we're not going to that we're going to look exactly like we are now? Of course we're not. Of course we're because we're making these little changes. So I I don't want um you know like we're we're not walking around like failing our $100 bills or anything, but but we're we're we're doing okay. We're in a good spot because of of this planning we've done. So the board of education controls only one revenue source, the local tax levy, which is a little more than half of our revenues, right? If you don't control foundation aid increases or safe harmless formula, expense based aids, reorganization aid, federal aid, the electric bus mandate, none of that. You have no control over any of that. So what can you do with the local tax levy? We set the
046levy at the cab, control expenses, we adjust staffing through attrition, build and maintain our reserves. We have long range capital and equipment planning and this multi-year financial planning. Those are all things that we have actively been doing since we merged. Um, but the long range financial projections show those budget gaps because they assume that there's no staffing changes. They assume that there's no program changes. They assume that there's no expense reductions and they assume that there's no operational adjustments. But that's just not true. Like we do all those things, right? We do we we're constantly doing all those things. Also, you know, when we budget for our like retiring teachers, when we budget to replace those, we are very conservative in that budget and we may not, you know, match the retiree step that they're
047on, but we're not budgeting for step one to come in. We we budget for more and then for all those positions, we try to hire for less. Um, but then for our revenue planning, right? So if you when we're when we're talking about a budget for not 2627 but for 2728 we are assuming that we're getting zero dollars increase in that foundation a number. Any dollar in foundation aid that we get is $1 more than we expect to get. That is about as conservative as you can as you can plan for. Um I am expecting I would be shocked that if in my career I have 10 years until I can retire that we don't see a change to safe harmless. This is the we have we're talking twothirds of the district in the state
048are on safe harmless. That that has to change. It just doesn't make sense. What is that going to do to our district? I have no idea. And anyone who says they have a clue of how it's going to affect our district, they don't know what they're talking about. They're but that will change. I have no idea how that's going to change. What we do know is that our reorganization aid is going to decrease by 65,784 per year. We have put every single dollar of that in reserves since we've merged and then some. That total of $6 million that we're getting for merging, we have already put that amount into reserves. Um >> even though it's decreasing, how many more years do we have for it? this. So, we're budgeting for year eight and year 14
049is the last like in year I think I said this last time is that they'll tell you it decreases over 15 years and that's not a fair statement because in year 15 you get zero dollars, >> right? Right. >> So, yeah. >> Do you know like estimated what we've received so far? Would you take the eight years and times it by the 65 or >> uh >> No, because it would have been higher. >> No. Um yeah, I I I could um I can tell you not not right the second I can tell you. >> So we haven't used any of our merger aid for any portion of our budget since we've been starting to get it. >> Correct. >> That's a one-time fund. So it's it's difficult to use it because it it's non
050it's a nonrenewable cost. So it's it's like using a grant >> Yeah. >> to hire someone. And I I know that I said this, but I want to just say this again that we are the last district in the state to merge under the old formula. Okay. So the 31st, what is that? Next Tuesday. >> Troy and Wangto vote to merge. And if they merge, they get $242 million. $242 million. That's so much money. We got six six million. Okay. So, >> oh, I don't want to hear that. >> Can we unmmerge and then remerge >> or make it worse if you want? Wineskill is a K8 district. They have 240 students. >> Oh, >> Troy can absorb them. So, they said it'll take about three days to absorb the students. They need to hire
051zero people. >> So, yeah, on that a little >> Oh my god. Have you tried to say >> Oh, you can't. So, we're the last one. So, we get a portion of that. >> Okay. So, >> I sat in the commissioner's office and told her that she did not give us enough money. >> And I don't know if this is so I I gave a list of I don't know, I'm going to say 10 to 15 things that they should have done differently. They are doing nearly all of those things now. And I don't know if it's a compliment or an insult because we didn't get any money. We didn't get any additional money. So, um I don't know. Uh but yes, I I' I've done a lot of the things. Um I need to
052we need to move on. >> Can I just ask one more question? Um which ESS funded positions or programs are now in the general fund? Are we We did not hire position, right? >> Yep. So, we did not hire addition the the any positions that have been added since 2020 were not funded with that with those funds because um and you will see the districts that are having the financial troubles right now are the ones that use those funds to hire >> those districts are also his have historically not gone up the cap. >> So, okay, >> if you look at it, so things that we have done, right? So we've reduced through attrition, right? And it's up here later, but we it's we've attrition 10 positions since we merged. We also reorganized the buildings
053to improve efficiency. If you remember year one, this was not the setup, >> right? By putting uh pre-K5 together and 612 together, we have we are operating significantly more efficiently where and you can see that that we put more in reserves in the year since since making that move. So that that was a huge move for us. Uh and and we did that when we realized early on that we could be more efficient. Uh and that also significantly reduced travel time between building which which again is it saves us money. Um, we have been really since we merged have been planning a capital project to bring all students to one campus which I can only imagine will uh make us operate even more efficiently. We we aggressively use Bosei services. Um, and also want to
054say that these staffing reductions that we did make through attrition had minimal impact on students. I don't believe that we that in doing that we we uh lost very much programming at all and over the last 5 years or so our enrollment has uh has been relatively stable. So we have been that right sizing that Dr. Tim's talked about we've been doing that since uh since we merged. But you look at our fund balance approximately at 8 to 10%. Hayden just talked about why our reserves are approximately at 52% of the annual budget. I do not think there is a district in the state that would not trade that number with us. That is it is probably if it is not the thing I am the single most proud of as a superintendent of emerg
055district. It is it is up there. It is an incredible number. Forget about the percentage. There are districts with budgets significantly larger than ours that don't have anywhere near eight and a half million dollars in their reserves. um the uh but but it's all because of planning. We didn't none of it happened at immediately. We've been able to do this year after year after year because of planning. Um but and again we talked about this last time but I want to you know say this again to the board that we have been um like dumping money into the reserves and really targeting the capital reserve really hard and the transportation reserve knowing that you know we're purchasing buses and the electric bus mandate and all that we are probably due and I'm going to say
056after the capital project vote when we know what that looks like of saying okay we need to be a little more intent intentional about these reserves and and what do we want to do with these reserves? But right now, you know, it's just been just throw as much money as we can really in these and then fun the other ones a bit. Um, but school districts generally fall in three categories. Districts that cannot balance their budget, districts that rely on fund balance to balance their budget, uh, which by the way, this is a common practice probably happening all across the state this year. We have never we have never used a dollar of fund balance to balance our reserves. I will go this far in saying there's not a district and state that can say
057that. Um and districts that balance their budgets with recurring revenue and long-range planning. And that is the category that we're in. Uh we are absolutely financially stable. And we are financially stable because we f we have been following the recommendations from the financial advisor. We have been working with Dr. Tims for a long time now since year one and we've been doing all these things um all these things on the list, all these recommendations. We have been doing every single one of these things and um and that's why we're in the shape that we're in. But we do have these long-term plans. We've been putting money away. We have been um following all those recommendations. >> Uh >> now we do have several retirements this year. Were you able to um eliminate any through attrition
058for the upcoming year? >> So the retirements that we we have music of PE and foreign language and so we do not believe that we can attrition any of those positions. Um, we are expecting um a uh um couple resignations uh that um I'm going to go as far as saying were unexpected and um I believe those will be on the April agenda. I have not gotten a letter yet. Just um they were gracious enough to have a conversation with me. So wonderful. Uh and I think that perhaps one of those positions um I mean but but we need to work at that. you know, we we some of that is easier said than done. Um uh so um potentially um but again when if we can get to one campus then I do think
059that there's more of an opportunity for for attrition but 10 positions through attrition that's not nothing that's a lot. Uh so and uh and some of those happen quickly um and others you know have been slowly but but we we're up to 10 and and that's great. Um so again the the recommendations from Dr. Tims we're doing we're following the recommendations. That's why we're in the position that we're in. And um I am I I couldn't be happier with where the district's finances are. >> And Hayden, you're in agreement with that. >> Absolut absolutely. I I I now um oversee the business operations for six school districts. Um and this is probably the only district that I inherited a long range financial plan. It is not common for them to have that or do that.
060Um, so 100% agree. >> Okay, that's good to hear. Now, as as the in just this is a tough question to answer probably without without it being an opinion, but as as the incentive aid runs out and and I agree with I totally agree with everything already said like one of my concerns is, you know, we're doing the right things with with our with our our fund balances. it feel it feels like the majority of that is coming from that incentive aid. Um and and there will be a time especially since a lot of it has gone into the capital fund balance where we're going to have to call upon that and it it's it will be what's best for the district. But as that as that dwindles, do you feel do you feel like
061we are are we relying heavily on that at this point? If you took that away today, said we have no incentive aid, that then what does our our our fiscal status look like? >> I would say it is still fairly stable. Um, so what we look at when we're when I'm analyzing those types of things is I'm looking at how much can we get in reserves to maximize interest, >> right? >> So really I I treat fund balance and reserves kind of like a retirement account. Um, that the interest that is gained is replacing what we're losing each year. So we're losing $65,000 a year on that. Our interest is growing though because we have so much money in reserve. So that's the point of replacing it. But also the fact that we're not >>
062120 or something like that, right? Our interest >> that's what we budget for. Um we we see it changes at the end of it or it's in our audit report exactly how much we get. It is typically a little bit higher than that. >> Um but the fact that we have not touched it means that we're not we're just not using it. So it's okay if that were removed tomorrow. we are still in a financially stable position. Um if they just >> and it feels like it right now because I believe we are putting more in our fund balance or I'm sorry more more in our inves than what we're receiving for incentive aid, right? >> Okay. >> Yeah. It's um it's one of those things. So >> we all know it's only going to
063get worse year year over year. I mean >> and it's something that you plan for though. who I we see districts that that if they don't have that long range financial plan, they don't go at the cap, they don't have those reserves, they hit that cliff. It might not be next year. Typically, budget decisions that are made now, tax cap decisions that are made now, they don't affect us next year. They don't affect us in five years. They affect us in 10, 15 years because it catches up. You know, you go under the cap to save, you know, $50,000. Well, >> compounds. Now, next year, our tax cap is based on the $50,000 less. So, we're not calculating. We're not able to grow that revenue. Um, but I I just the financial situation of this
064district is is not what we're seeing where everyone else is. And and the other thing that the while I of course would have liked for a capital building solution sooner than that I think that the timing might really work out nicely. You know like in year 14 getting 65,000 year 13 you know only 130,000 all that still money you know it's all money right but that's not that's not a huge amount of money. So in those years when it's not um like a massive amount of money we get to one campus we're going to see those efficiencies uh and it's going to um I think it's going to feel like >> we're getting incentive >> year one would be a whole new baseline your fuel cost your electricity costs your transport you know >> and
065let alone the the attrition you start to realize afterwards >> attrition is really important too just because So you mentioned 10 positions in annual cost that's probably a savings of about $1.5 to $2 million, >> right? >> Salary benefit. We pay I mean ERS 17% of a salary now. >> Uh that's a a lot. Um you're not paying health insurance. And health insurance is not a year-to-year cost. We have retirees in the health insurance consortium that have been retired significantly longer than they've worked. So health insurance doesn't doesn't end when someone retires. It continues in sometimes 40 50 years. Um so that's a it's a that's why attrition is is incredibly important because if it's through attrition it that it it stops. Um so a lot of people say oh you know a high earning
066teacher retiring. We're only saving on the salary though because we have to keep their health insurance or we may not. We may net zero on a retirement because they have a family health plan and we're replacing it with someone who also has a family health plan. But health insurance is not one of those things to a lot of math involved in the health insurance world is basically what I'm getting at. And the the other thing too that I will say because I know Hayden's involved in this as well that so um eight years ago when I started the health insurance consortium that was the wild west. I mean it it it all I can say is that it was it was just out of control there. Um but now they have I mean they have
067a whole How many people are in that office now? enough that I'm losing mine and being kicked out. >> Any >> I believe we're at six right now and there I there's two additional positions that were going to be posted. >> So this is for the health insurance office that eight years ago had zero employees in the office, right? it was um an part of Christine like it was onetenth of her whatever and now it's a legitimate I mean it's a $100 million organization and it is now run like a hund00 million organization and I say that that um I think it was the year before I started or maybe two years before I started there was a mid-year increase to health insurance because they were out of money not out of money like oh
068we might run out of money like they were out of money in the middle of the year and Now they have a hund00 million all because of me and he but but again like but it was the the the >> 99% you >> I I I'm the emotional support in that office because you can imagine how many I mean there's I think we're 13,000 lives are on our covered under our health insurance plans. The amount of calls they get per day, the amount of times that they get screened at the all the stuff going on. So I'm just the emotional support but my point >> health that's important. It's now being run like a $100 million business and they are investing that $100 million just like we are investing our reserves and so it it's
069it's it's good and I think ultimately going to um make those costs as stable as they can be. Our neighbors at the age had 20% to 3.2 >> believe they're 20%. >> They had a 20% increase this year on health insurance. We had three >> we had three and zeros which was to see zero increase year-over-year. I we're sending out uh memos to retirees tomorrow and I'm sure it's going to make some people very very happy to see >> zero >> got my answer John. >> Um so they've done a lot of work and it is the most streamlined operation I have ever seen. Um I would say I would I have to the work that has been done in that consortium is absolutely insane. >> Um okay la I think last thing I have
070for you uh upcoming meetings. Um so we are still like I said awaiting a New York state approved budget. Those should be the only real changes that you're seeing on our end would be if something happens in that agreed budget that was well outside the scope of what we've been talking about. Um, and you know, but like I said, if any changes, we'll certainly uh let you know that. And then um during the month of April, we do need uh to approve a budget to give to the taxpayers. >> Okay, that's it. Anyone else have any questions for Hayden or Dr. Meyer? >> Thank you, Aiden. >> Yes, thank you. Thank you, Dr. Meyer. Um, we do have to approve our propositions. So 7 A. Do I have a motion to approve items 7A through
071D1? >> A motion. >> Thank you, Paige. And a second. >> I have a second. >> I'll second. >> Okay. Thank you, Sarah. And any discussion? >> I have a question. I don't know if Josh's not here, but I don't know if you've got the answer. Didn't we We just got a plow truck last year, right? Yes. Yes. Yes. >> And did when did we get the tractor? Was that two years ago? No, >> that was also last year. >> So, we do we have a replacement plan on all vehicles, tractors, trucks, vans, buses. Um, and >> I know I'm going to be asked by the district, is this something that's going to continue like a new plow truck every year, a new tractor every year, >> we have a replacement plan. So, we so
072far I went back and different, right? >> Correct. Yeah. The the plow truck was p purchased for one. Now, it's time for the next one. Uh, same thing with the with the tractor. >> Good, good, good, good question because I mean the district need needs a plan and you know what's the useful life of those and and where's the best value and when you when you get rid of one and replace it, but I assume we've we've looked at that and then we also look for those opportunities to spread it out so it's not too many too many in one year, right? >> I mean, we put the truck out last year. We got a good I bought a good price for it at auctions international. >> Yeah. So we do uh we're required to
073bid them. Um and typically I've seen some some pretty good bit with the we were expecting on the van too that for that to be about $10,000 more than it came in at. Um >> catch the van. >> I do know why we would need a new van because we do have a lot of single transportation and I know that just from when I'm traveling around I see it. >> Yep. It actually goes right by my office window every day. >> And I don't think that like the public has noticed it. So I think the public will understand the van. >> Yep. And um actually uh the truck that we replaced last year, it was the highest I have ever seen an auction go. I believe it was 20 25,000 is what we got for
074the truck that we replaced. And typically I mean on a bus we get like$1 or $2,000. So it was pretty substantial. >> Yeah. Um the auction have been really good. So it's not like we just dispose of it or >> that was a 2018. >> Yeah. So it was crazy. >> Yeah. I watched it because I kind of thought about bidding on it. Then I was like, "Okay, it's out of my brain." >> Then it kept going up. I was watching it too just to see if >> Yeah. >> was not expecting that. >> Are there any other questions? Okay. All on All in favor? >> I opposed. >> Abstensions. Motion passes. Number eight, our next meeting uh a regular meeting will be on Thursday, April 16th, 2026, 6 p.m. at the Mountain View campus
075and b a special meeting will be held Tuesday, April 28th. Um time will be to be announced at the Mountain View campus. >> Okay. >> That that that second one is for the the Bosey's board approval. uh post these board member >> in the budget in the budget >> in the budget. Yeah. >> And is that usually done during the day or is that an evening? >> We we've done it at any time. I I during the day I mean really I don't even think we need chairs for the meeting. It usually is you know >> I look back it was three minutes last year. It's been four minutes >> during the day. So we really for that >> 90 seconds or >> Yeah. For that reason, we typically try to do it during the
076day. Um, if that, you know, really whenever we convene um, >> yeah, forwarding together, >> um, the can I can I just say one other thing about electric buses that I don't know why I put it in my presentation, but I'll be quick. Uh, so um the, uh, it did come up uh, the legislator legislature shot it down about delaying the electric bus timeline, which I'm sorry, repealing the electric bus timeline. They are now trying to delay that that that timeline. But um >> then they also proposed when it after it was shut down, it's included in their budget to now incentivize bus garages and charging stations. So it was kind of a it was a little odd. >> Yeah. So I think they gonna offer money. >> It's in the proposal. We talked about
077some of the incentives. I thought that was >> the NAERTA um NAERTA is going to do our study at no cost um which is great. Uh and um but but I I did want to say that just about the um the electric buses I really and maybe it was wishful and I didn't think so being that I have not heard anyone in the state saying no problem we got this you know so um >> there was a district that had a discussion they get the bare minimum transportation aid they they've discussed just ignoring it because they get bare minimum aid so there's no loss to them to not buy electric bus because you can still buy You're forfeiting your aid on them. So, >> and on miles, too. >> Yeah. And you're forfeiting your for
078a district that gets no aid. >> Well, with the big cost difference even a district with a it may actually be cheaper to buy. >> I'm curious what the insurance >> No, we will apply in a year. If we would have applied it would have >> right >> we have another year. >> Yeah. >> We'll wait till the the last year to apply to apply. >> I believe you get two wafers too. >> Okay. Number eight, executive session. Specifically, the board anticipates entering into executive session for the following reason. A. Number six, to discuss the medical, financial, credit, or employment history of a particular person or persons. Do I have a motion to enter into executive session to discuss items 8A? Item 8A. I'll move. Thank you, Paige. Uh second. >> Thank you, Deb. Any
079discussion on this? All in favor? >> I opposed. Extensions. Motion passes. Now, no action will be taken after the executive meeting and it it's expected to be quite lengthy. So, I want to thank you all for attending our budget meeting and have a good night.