5-12-2026 NBSD Budget Meeting

001Anyway, uh this is the time place set for the budget meeting of the Northband School District uh board of directors here on May 12th, 2026. Um that's the call to order. Why don't we start with a flag salute 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. And uh I think the next item is approval of the agenda, which is presentation of the budget. Uh and we would want to make a motion along those lines. Motion to approve the agenda. >> So moved. >> Second. >> I'll second. >> All right, we have a second. All in favor? Any discussion? None. All right. All in favor say I. >> I. >> Any opposed? Motion carries unanimously. So, we're off to

002um elections of the chairperson. Who will preside over this? Do we have any um candidates? Anybody who's wants to do it or someone who wants to nominate someone to do it? Let's not be shy. You want to do it? Sure. All right. There we go. We have we have a volunteer. >> So, uh it'll flaw. Never say that. >> So, u but I think we have to vote on that. Um Jeff Lang has uh volunteered to be the chairman. Uh just take it to a vote. All in favor say I. >> I. >> Any opposed? >> Jeff. Okay. There you go. There you go. Oh, I guess the next item on the agenda um election of a vice chairperson. So again, any volunteers or nominations. I know. Is that Did you raise your hand? I'm

003sure you ra I'll be vice chair. Whatever. That's fine. All right. So, we have a volunteer, Nathan Mcccleintoch. Um, all those in favor signify by I. >> I. >> Opposed? Motion carries unanimously. Uh, secretary, do we have any volunteers for secretary or nominations? You are a talkative crowd. It is. >> I think I think Anna >> My plate is so full, Nathan. I don't even know what I would have to do. But >> I don't think what's really required would have to do. I think >> Sure. >> You have to be voted in. >> Nathan, I'm going to get you back. >> That's about it. >> I know. Anna and Anna, you volunteered, correct? >> Sure. >> No, >> I was called volunte. >> You have to add it. You have to add it. >>

004I feel the same way. Yeah, I'll say Tim added it up. >> Any other nominations? No. All right. So, all those in favor of Anna serving as the secretary uh signify by I. I >> Those opposed. Motion carries. We should note that Carol is uh here. She is on the video. >> Hi, Carol. Okay. >> Okay. Then the next item on the agenda is the 2026 2027 budget message. I'm assuming who's taking that over. >> Um soon as we get the presentation up. >> Oh Tim Prior will >> Tim present the budget message. One second. >> So, the 2026-27 budget message. Budget committee members and Northbend school community, I am pleased to present the proposed budget for the 2026 27 fiscal year. This budget reflects our continued commitment to aligning resources with the priorities outlined

005in our strategic plan. While maintaining a discipline focus of long-term fiscal stability in a changing educational and economic landscape, the district remains grounded in our strategic plan goals which continue to guide our work. Our goals include foundational readiness for success, safe, supported, connected, and present, continuous growth and academic achievement, and equipped for success beyond graduation. A central theme of this year's budget is the necessity of remaining laser focused on maintaining a stable, sustainable financial position for the district. Protecting our ending fund balance is not simply a best practice. It is essential to ensuring continuity of services for students in the face of uncertainty. As such, the district remains firmly committed to maintaining a minimum ending fund balance of at least 5% of total adopted revenues along with an additional 2% of general fund total adopted

006revenues committed to economic stabilization. To further strengthen our financial position and proactively manage risk, we are implementing several key strategies. First, we are establishing a charter school reserve account. This reserve will set aside anticipated revenue generated through our contract with our virtual charter school, allowing us to better absorb potential fluctuations in enrollment and associated funding. Second, we are creating a capital and land acquisition fund. This fund will be supported by proceeds from the sale of 10.10 acres on Viking Lane and will allow the district to be intentional and strategic about future land or facility purchases and long-term capital needs. In addition, we recognize the growing importance of investing in our existing facilities. As our buildings continue to age, increasing our capital improvement fund balance is critical to maintaining safe and functional learning environments. The budget

007reflects that priority as we continue developing a comprehensive 5-year capital improvement plan to guide future investments. This year's budget has been developed using state school fund estimate of 11.359 billion reflecting the second year of a bianium. While funding remains relatively stable, the district continues to face a significant and ongoing challenge. Declining enrollment, lower birth rates, and smaller incoming kindergarten classes continue to impact our overall enrollment and revenue. In response, the district is taking strategic steps, including the reconfiguration of our elementary schools into a K2 model at Hillrest and a 35 model at North Bay. This approach not only supports student learning, but it also increases our capacity to accept and district transfer students, helping to offset enrollment declines. We are also monitoring a new housing development nearing completion in our community. While we are hopeful

008this will bring new students into our schools, the impact the exact impact remains uncertain and we have budgeted conservatively. The proposed budget maintains current staffing levels with adjustments made as needed based on enrollment trends and achieved through natural attrition whenever possible. We are also pleased to restore one full-time music teacher, allowing us to once again provide music instruction for all K12 students. Additionally, this budget includes appropriation authority to begin work associated with the seismic rehabilitation project at North Bay Elementary School, an important investment in the safety and longevity of our facilities. Like many districts, we continue to experience increased costs related to utilities, insurance, transportation, PERS. Despite these pressures, this budget reflects careful planning, disciplined decision-making, and a clear commitment to both educational excellence and fiscal responsibility. As we move forward, maintaining financial stability will

009remain a top priority alongside delivering high quality educational experiences for our students. I'm deeply appreciative of the continued support from our staff, families, community members, and board of directors as we work together to meet these goals. So Tim will continue to um present a couple of the additional slides and then I'll go into the organization. Um, as mentioned in the budget message, some of the ongoing budget challenges that we place that we face as a district, inflation impacts on goods and services, first costs continue to rise, uh, compensation for employees. So planning ahead for steps for experience cola cost of living increases is something that is um it's an ongoing challenge as we um add cola increases to the salary schedule. Those become compounding costs that have to be accounted for. Student needs are growing

010significantly requiring more and more services than they had in the past. Um, of course, limited revenue as state dollars fall short of costs of operating schools. Unfunded state mandates continues to be an issue facing public education. Uh, flat federal funding well federal funding while costs of operations increase. We have fewer students. Funding is dependent on student enrollment. As we get started tonight, um I just want to talk about the budget committee once again. Uh budget committee reviews the proposed budget from the superintendent business office, ensures the budget is balanced and aligns with district goals, receives input from the community, approves the budget appropriations, and approves the tax rate. Approves appropriations at a fund and function level only. recommends the budget to the schoolboard for final adoption. Does not set or approve staffing levels. Does not

011manage specific programs or day-to-day operations. Does not approve on an object level even though you do see the object level presented clearly in the budget. Uh staffing levels are decided by the superintendent and the administrative team based on enrollment projections, class size targets, available funding, and educational goals. and contractual obligations. Our budget remains our budget vision to remain firmly focused on what matters most, investing in the areas that have the greatest impact on our students. As we make decisions, we align them with our strategic plan, which prioritizes foundational readiness for learning, creating safe and supportive environments, and ensuring continuous academic growth, preparing every student for success beyond graduation. Um, we focus on maintaining highquality education, address the unique needs of every learner, ensure transparency throughout the budgeting process, and make responsible decisions that support financial

012stability and long-term sustainability. Again, the strategic plan goals are reiterated here. Go ahead and pass on past that. Um, this is a a simple graph we wanted to include. And I wanted to just present this to lay some of the groundwork around what state funding means in Oregon for school districts. At the bottom of the graph in the blue bars, you see the K12 state school fund allocation in billions. broken out by bianium and that goes from 2003 all the way up to the last benium 2023 through 25. And what you're seeing here if you look at raw dollars is that the state budget for schools has never been so high. But if you're only looking at raw dollars, you're missing a big piece of the puzzle, which is why this has been included. The

013state budget in relation to school funding is not proportionally increasing. The state budget as you see the education is getting a smaller portion of the state budget. The state budget is on the top there. Um the percentage of school funding in relation to the general fund of the state school state budget. Sorry, didn't see my words up here. Um so again 2003 2005 that 4.9 billion represented 44.8% of the state budget. The today the 11.7 billion allocated to education represents only 34% of the state budget. It does not address our budgetary challenges. inflation, rising healthcare pur costs, bed costs, mental health needs, transportation costs, cola increases, staffing shortages, um, which turnover costs cost us. You cannot find a turnover cost in a budget as a blackline item. But what turnover cost is estimated to be

014is 12 to 16,000 per employee. And that's something that we have to address um in increased accountability inquir requirements, unfunded mandates. So where you see this dollar amount increasing for schools, um you see that the growth is basically that we're receiving a smaller proportional share of overall state resources and the chart helps explain the financial pressures on schools. Um you do see that after 2019 some grants were included but again not to the level that they should be. Um there's also a purple line in purple boxes and those amounts represent the quality education model um that the state has invested quite a bit into um research around what should be the level of school funding that is needed to properly educate our children. Yet this even though this model exists, we don't get the funding

015for it. So um essentially if we're not meeting all the requirements needed to educate students, it's by design because they're giving us a model we should be getting funded on yet we're not funded on. And I just want this to be something that's in the back of your mind so that you understand the challenges that we face as a school district. The chart also highlights another key component of educational funding. The funding growth is not predictable. If you look at the dollar amount increase in billions from year to year, there is no predictable pattern and that also makes it very difficult to build balanced budgets that are extending over time. Um, this is where you'll see that as a public sector employer, we will utilize ending fund balance as part of a focused plan to

016build in financial stabilization based on this unpredictability of the state school fund. So, there there's a lot there's I mean there's a whole lot we could get into with this chart, but I thought it was important to kind of build that background knowledge, give you something that you could look at. Go ahead. Any questions on that chart? Um, so here we wanted to show you basically we know that enrollment drives the funding for education. We're building the budget here at 11.359 billion um per Oregon Department of Education funding. Um, this is the second year of the bianium. So they they they tell us how much they'll be funded in a bianium, a two-year period. In the first year you'll get 49% of that split. The second year 51% of that split. So we're in the

01751% split. And in the chart over here um change from prior year funding. What we were trying to demonstrate again is that unpredictability. We wanted to basically show that even though the state school fund dollars are going up and you'll hear hear someone say, "Well, you're getting more money than you did last year." It it's completely unpredictable. We don't know that until a bianium comes out and that is something that is is a challenge that we face every year we build a budget. So as we're going through this budget understand these challenges we face for us being financially responsible does not mean we should be focused on growing reserves indefinitely. Public funds are intended to support education system as a whole. So we utilize ending fund balances to maintain fluctuations in funding, plan for future

018expenditures, replacement cycles, and capital improvements as part of a responsible fiscal plan. Go ahead. Another um philosophy we build our budget on is that we budget for unfilled positions. So last year the budget committee members who were who were present last year will remember that we talked about this in depth. We knew in the community that enrollment was going down. We also knew that and especially on the secondary level we had a high level staff compared to our student ratio and it was not sustainable over time. We built the budget with all those positions in place maintaining current staffing levels knowing though at the same time a lot of people were leaving and we were going to take advantage of attrition. We were going to move people around with certain lensure to to make sure

019that we weren't refilling positions that wouldn't be sustainable over time because there were a lot of opportunities last year. There were a lot of positions that we took advantage of, but that again helped build a much higher ending fund balance this year because it was budgeted that way. So, we want to be transparent about that. Not all positions that are included in the budget are expected to be filled. It's approach that is deliberate and strategic. It's used across Oregon and the nation. It creates financial flexibility. It's conservative planning and it's strategic savings in the end. Go ahead. Um, one page I'm sure that popped out to you was page 24 of your budget document. And so I just wanted to just jump right out in front of that one and address it. Um, because you

020have staffing levels and I know some questions came out about this. Um, we see from the 2526 budget to the 2627 budget a drop in enrollment. This is not a Northbend issue. This is a state of Oregon issue. You see this happening everywhere aside from I think two districts in the state right now. And one of them is just I mean it's you know Esticada. I'll just say it. It's not a secret. But they're right outside Oregon, right? It's a bedroom community of Portland. I mean, so they're just building like crazy. And so that's that's one district that's experiencing significant growth because of their location and the cost of living within Portland. So for us, we're experiencing a decline in enrollment. We do have some things that will add to our enrollment. The fact that

021we're able to accept IDT so much earlier, we're already telling families, welcome to Northbend, who have put in interd district transfer requests. That was never done this early in the past. It was always done late August. So, it was very hard for a lot of the families to really make plans. You know, they would just make plans in the meantime and do to to stay in their school districts if they if they needed to. It was just easier to do that. Um, we also have the new housing project coming in in town and um, we continue to hear of progress made um, for the shipping port container port um, which would drastically change our schools. Um, but with that decline in enrollment, you see that the certified FTE has gone down quite a bit. And

022again, that is related to what I just explained. Last year, we built the budget maintaining the current staffing levels knowing that if we had opportunities through attrition, we wouldn't fill those positions. Instead, that would be strategic savings that would be in place for this budget. And but it would also give us some financial flexibility to address needs if they arose, which it did. Um, so it was good to have that flexibility. Classified staff, you're probably wondering why is that increasing? It jumps up by 10 people. Part of that is a big most of that is because we built in this budget funding for two additional preschool classrooms. That's a grant we don't and that's funding we don't know if we're going to get. We're building in the appropriation authority for spending it if we get

023it because it's going to happen really fast when it happens and we we hope it happens but we need to also include it in the budget because that way we're not waiting month or two months or three months to try to get get it put into the budget later and try to get it the appropriate authority added later. So included in that are those positions. You see um them there in classified FTE. Those are the extra educational assistance needed to run the two preschool classrooms. And you also see in preK teacher the bottom line there going from two to four. So that's why those numbers are increasing. We also have in that classified number um some extra EA positions that are included in grants. We build in a few extra positions in like SIA for

024student support and we saw that that was needed this year because in first grade and in fourth grade so uh first grade at North Bay and fourth grade at Hillrest we went above the recommended class size what we agreed that we would try to keep it below and because of that we wanted to add additional supports for those teachers. The appropriation authority in the budget last year allowed us to add those EA positions to support those teachers. We're not continuing those positions next year. We found other locations for the for those staff members if they're staying with us, but we have the appropriation authority to add them because they're they're built in here too. Um same thing is true of some custodial staff. we added an additional we actually added two but we we only

025plan on filling one of extra um custodial prostitutes. So, one of the big problems that we noticed, and it was especially true this year at the beginning of the year, um we had a lot of c custodial staff that were out and that created a huge problem in our schools because there's often only one custodian in the building when students are there. And if we have that, if they're out in two or three different schools at the same time and we don't have a permanent robing substitute, it's really hard to fill those positions. So, we're building in a couple extra positions to have some rovers just on staff positions. I mean, there's a slight increase for food service staff, um, which is again part of the grant funded. They're prim pretty much a self sustaining

026program. Um, any other questions on here? >> Why did administration go down? Well, a few years back, um, you'll remember that I filled two roles as director of human resources and director of business services. So, I basically we combine those positions into one. And then I became assistant superintendent because of all the different jobs I was doing at the time. me stepping into superintendent job means that we're not filling my superintendent, my assistant superintendent position. All those duties still exist, but we're not filling the position. So, there's a huge decrease there. Um, and the other part of that uh >> the 12 I think that's >> um uh curriculum was budgeted at 1.0 I know when the budget went through last year and now it's uh >> right >> budgeted lower as a more of

027a part-time. >> Yeah, one of one of our one of our directors is on not quite full time. Yeah, >> Chris is the first time Chris is hearing this. Dana, he's she's gone down to Bruce. Bruce Bruce is at >> Bruce is at 088. Um although he donates the rest of it. I was going to say, >> yeah, >> he donates his overtime, but um so that's that's why that's going down. We said we weren't going to fill the position. We didn't fill it to again redirect that fund back into the schools and that helped us fund the music teacher so that we could get music program going K12 again. Okay, good deal. >> Okay, so moving on to the organizational section. Um this is just where we have given you little flags. You should

028have some of those. So tab your questions as we go along and we'll be asking questions slides throughout the presentation so that we can go through the slides and then ask them over those items. So this is just so we can go through the budget document starting at the organizational tab. Um the first page 13 lists your district leadership team and who who's creating and presenting the budget. Then we go on to the North Ben school district board of directors. And on that same page, it will show you your K12 structure, Bitty Bulldogs all the way through high school. Num page 15 shows the positions of our budget committee members. Um then it goes on to have our adopted calendar that's done in December's meeting, board meeting, the budget district budget message which was presented

029by Tim Ryder. And then we have a budget format and process which actually gives you um includes like uh fund summaries and comparisons and the FTE we just saw. Oh, and then the budget school budget building and budget program budget narratives. Those are created by all of our district leadership team. And um within those you actually have the enrollment per schools listed on on the narratives from the each principal. So you have their enrollments and kind of a history of their enrollments per school. And then we get dive right into the whole stool uh student enrollment. This is as of September 30th of every year. So that's kind of our point in history that we revealed. So on page 37, you can see that um Northbend has an decreased and it says a loss of

030students enrollment since 2122. So you can see that we're on a decrease. And of course 1754 is the an estimated enrollment number. We're very close to that in year to date I think right now too. >> Right. >> So and then you also can see Evergreen's charter school has loss. They were coming off of COVID a really big gain of 1,1001 since 2122. their estimated is 900 but um when you see their actual year-to- date with enrollment they are increasing a little so um that is it's good news you can see some history on page 38 back to 17 FY 1716 and you can actually see it's a year-over-year change annual change at the bottom in that page so we are anticipating a loss from the prior year of about 95 5 enrollments F ADMR.

031So which is different than enrollments. So and then we go on to have a class sizes. So 30 page 39 shows you of course as of estimated as of September 30th coming up um our sections our school sections kindergarten through 2nd and moved over and then um 6 through 8 and so forth making the total there 1754. It says how many um per grade level average class size is on the bottom of that. So, and then our actuals that happened September 30th of 2025 is on the next page. So, this is where we came in in reality on September 30th. And it says that we came in at 1849. So, then we have budget assumptions. And with budget assumptions, we'll go over budget assumptions a little later and enrollment projections a little later in more

032detail. and then some definitions of classifications and definitions. So that kind of gives you your organizational section. We'll go back to page um 41, your budget assumptions page, which is a building is kind of all the assumptions, a lot of the main assumptions we've used to build this budget. So oops. So the state school fund is based on extended ADMW which right now is FY2526 enrollments. And then of course we're building our budget on a on our resource beginning fund balance of 10.5 million. We estimated flat funding for grants plus a little carryover the ones that allow carryover and ones that are not ending this year. >> And I don't know if everybody understands that that very first line extended ADMW. So ADM is our average daily membership. ADMR is the the students actually like

033the the resident student actual person just one to one. ADMW reflects additional weights added. So um a student who is in an English language learner would have an additional weight. Student who has an IEP would have an additional weight. So they count for more weights. So one student could count for two in terms of funding. Um but the extended part of that is the state builds in um in in how schools are funded that you're funded on the higher of the two years. So we submit our estimate for next school year early in the year and then they're going to fund us on either what's either what's higher either this school year number or next school year our estimate that was submitted. Later they reconcile everything. So you want to be as close to actuals

034as you can and that model is designed to help slowly land the plane so to speak if you're in declining enrollment. So typically over the past few years districts have been funded on their current school year because next year is predicted to be lower. So that when we say we're funded on 25 26 school year per student, that's why because this year is an expected it's higher enrollment than we're expecting next year. It could shift and then and then the numbers will shift too but that's we just that can be confusing. So I just want to throw that in there. Thank you for that. Um so current staffing levels have been used for the 2627 budget. So current staffing levels in 25 26 are rolled to be used in 26 27. Um payroll increases of

035course is a step plus a cola at 4% those who get a step and cola is 4%. increased um transportation costs for an RFP. We had to go out for an RP anyways, but increased transportation and then general insurance costs. That's your pace. That's your general insurance cost. Doesn't have to do with employee insurance at all. Um and and then of course your 10.10 acres. We are hopefully going to have a sale go through. It's also recorded in fund 404 to make sure it's visible and it's a set aside for future purchases. And then we also have increased allocations for the reserve accounts this year. >> And the transportation, you'll see that it's in the budget in several places, but transportation costs, they they were going to go up no matter what because we were

036at the end of a 5-year contract with our current company. And when we talked about um in extending that contract, the proposal was like a 25% increase. So we went out to RFB request for proposals um because that was outside of our original agreement that it wouldn't I mean we couldn't go with that legally really procurement law. So, we went to the RFP process and we actually went with a company that gave us a lot of the um a lot of the things we asked for and at a reduced cost even from our current bus company. So, um we're able to even though the costs are going up, it's cheaper than it would have been had we stayed with Mid Columbia. And then that 10.10 10 acres. Um, we felt it was important to create

037a set aside for that because again, it's onetime funding. It's not money that we should just say, "Yeah, let's just roll this in this budget and use it up." It's money that we should be intentional about. You know, we're not going to be able to sell that 10.10 acres again. So, let's take that money, set it aside, make it visible so that when we do need to use it, or if we have a plan for it, we'll be coming to the board and explaining what that plan is. Okay, so we're just moving on to um enrollments, which is of course we already went through it and I noticed it's but it's page 37 through 40 of your budget book if you're interested in that, but we'll go and this is just a synop um like

038a summary sheet of 37 through 40. And um of course we're at 1754. We projected we ended up being at 1849 last this this FY 2526 year decrease of 95 and um Evergreen Charter School is projected increase really of 48. So that helps us and you'll see within the budget I've built a little extra for May reconciliations on if evergreen is going to continue to grow and so forth. Also with that is we've heard about the extent of ADMW within the proposed budget. We are on 2526. It's reconciled um reconciliations of ADMR is evaluated throughout the year to make sure that we don't overpay evergreen EVA. I'm going to call it EVA. So so we keep an eye on that. And then um yes there there's always the May reconciliation from OD of the state

039school fund which we heard about of >> making sure our um funding per state school fund is accurate always on the extended ADMW. So >> after they have your enrollment yeah for the whole year >> then they'll they basically true you up. Did they overpay you or underpay you? So this is just a a nice graph to show um the declining enrollment which we saw um and just >> you missed the message. >> Yeah. >> One more view. >> Yes. So for every and it is for every ADM 100 ADMR um there's about 1.6 1.16 million and that's based on the general purpose grant for 2627. the general purpose grant for this year 2627 is the $11,639 and then we times that by 100 and that's where you get the 1 million. So it's just

040a nice review if you're losing money. That's kind of how it goes. This is Evergreens and the trend is as of September 30th. And so for every hundred students um currently right now it's for every like 100 students that evergreen increases about 69,000 stays with Northbend School District. So, some budget highlights and these are just highlights um that uh are throughout the budget and it's new new student transportation um reconfiguration of the elementary schools K12 K2 at Hillrest of course and 35 at North Bay. Um unemployment reserve has now been established. We're just topping that off every year to make sure we um it doesn't ever get underfunded. And transfers to reserves have increased and highlighted. I have some slides to follow that actually highlight those transfers and reserves. Um this is where we heard

041about the potential extra 32 student slots for the preschool program that's also been incorporated in this budget. Um, a new three-year state summer learning grant was received and it is part of this budget as well at 480,000. >> Mhm. >> And then of course the seismic rehabilitation grant uh planned to finish completion by 9:30 of 2027 and most of the work is going to be done in the summer of 2027. with that you'll see in our transfers we have transferred some for contingencies on the seismic um so the next two slides >> part of what we part of what we're planning ahead for with that seismic re rehabilitation grant at North Bay is to so I mean they're going to be tearing down walls they're going to be doing a lot of different seismic related

042work if we have a need as they're putting things back together to put it simply we can then pay a little bit extra to to to meet our needs, which is much cheaper than doing it from the get-go ourselves. So, for example, we're budgeting for the installation of four single use bathrooms at North Bay. So, there's there's two student use bathrooms and one of them only has one toilet in it anyways. The other one only has two, but they're they're kind of just open bathrooms, right? And they're not restrooms that staff can use. And so since they're going to be doing work in that area anyways, if we put some money aside, we can then have for individual use restrooms installed. So that's something that we're taking advantage of that grant to do work we

043wouldn't be able to afford to do anyways. Um, another thing I wanted to jump up to is that unemployment reserve is now established. So, um, I know, um, you know, Rodney, you had asked me a question about it during the budget training. And so what we've done with this is um this is an this is a perfect example of an unfunded mandate for schools when the state decided that it would be a it would be a good idea and maybe people think it is a good idea. Um I'm not trying to give my opinion but it basically that someone accepts a classified job and they know they don't work all year. They accepted the job right but and they're off the summer but then now they can collect unemployment during the summer too. um even

044though it was a choice to to accept the job. So we have to now fund for the unemployment. I mean we have to now budget for that. So that was a huge unknown because nobody knew who was going to take it and and it's still something that employers are employees are learning about and and testing. So that that dollar amount we anticipate will grow a little bit year to year, but it's not growing to the extent we thought. So now it's just, hey, here's a bucket that's for unemployment. If we use money from it, we'll top it off every year. So that's what Lorray was explaining there. The reserve now is built. So now if you see a transfer into it, it's just to top off that amount. So we're prepared for a big increase,

045not a not a huge increase. We're prepared for an increase, but we don't have to put as much into it as we did last time. >> Thank you. So we'll um follow follow this by transfers and then reserves. So on on page actually 47 um column one under the general fund in the second grouping kind of you can see um the one 1,995 page 7747 excuse me if you you don't have to go there but anyways it's exactly this the breakdown of the 1 million995 is where we are transferring the money this year I mean 26 27 seven for the budget. So of course tech tech infrastructure yeah replacements really tech replacement textbooks replacement um turf athletic facilities van maintenance van then you have an athletic van replacement the weight room and then safety and

046security is actually um it's it's um in case uh what was safety and security was in case um things like door locks and those kind of things. That's what it's kind of for. Um, and the reserve set aside was for Evergreen's charter school 30 300,000. I started the ones that are new this year. So, safety and security is new this year, just getting started. And the Evergreen set aside is just getting started and these are all up for um change every year. >> Yeah. So, so you were directed to page 47. If you go down, uh, one of the things that always jumps out is is if you go down to the bottom of that expenditure summary by object classification, the 700s transfers. So, what we're looking at or the and everybody asked the question,

047what are the transfers? Where are you transferring it to? And it's a great question. You should ask that question. I'm glad you do. So the in the general fund column 1.995 million is transferred into these funds. So what this does is it builds these are most of them are long-term replacement cycles. We like the tech infrastructure we we have to build when we have this built out. We have like a 10-year plan built out for this for textbooks. If we don't plan ahead for it, then this is where districts really get into a lot of trouble. They don't have the money to replace their equipment. They don't have money to buy their textbooks. But according to the state law, we have to replace our curriculum. It's every six, seven years. We're replacing one subject at

048a time. Some of them are cheaper, others are very expensive. English language arts adoption is an enormous amount of money. If we don't plan transfers yearly, there's no money to do it. So, what we'll transfer in a certain amount every year, we're we what we're trying to do is make that a stable transfer so we can build a long-term sustainable budget. So, you'll sometimes you'll see one year you might see the money go in and we might not budget use it all. Another year we might use a large chunk more than the transfer because it's a big adoption and that reserve will will dip and it'll go back up. It just depends on what the adoption is that specific year. So, we felt it was important to kind of go through this and let you

049know that the field turf amount is a large transfer. And the reason for that is because several years back that turf account was utilized in a different way. Um, and that was not a decision by anybody in this room. So, it's something though we have to put we have to build this account back up. Turf only lasts so long. We're 100% liable for safety. We have to replace it every so many years. And and you know, you have maybe a 10-year lifespan on it max. Um you know, you might go up to it depends. We get it tested every year. They fluff it up. They do lots of different things to it. But we have to build a fund for that. The same thing with that track. That field turf, the turf fund also is

050for the track around the football field. It cost you last time we did it, I think it was $600 700,000 for both of those things. Um, so and it'll be more next time obviously. Same with our vehicles, our athletic facilities. A lot of that equipment is very, very expensive. We're trying to build up funds to replace those things. Um, so that's what all that is. The Evergreen Reserve set aside $300,000. We're the same concept with the unemployment. We want to establish a bucket, a safety net. This is part of a long-term safety plan. Evergreen as a virtual charter school could h something could happen. They could close their doors. We're going to be holding all the PERS liability. We're going to be we have people hooked into this budget, you know, right? The way our

051the way originally established with the evergreen is the money just stayed in the general fund. There's people attached to it. We're trying to get that out of there because that's not a healthy budgeting system. We need to build a reserve account so if something happens, we have the money to get through a year. Or ideally what we want to happen is build that bucket of money, the evergreen, the virtual um reserve account and use the money after it's realized because when they're in declining enrollment, that impacts us too. When we're just rolling the money into our general fund and spending it, then all of a sudden they drop by 100 kids, 200 kids. Now it hurts us as well. We don't want to be in that situation anymore. Instead, we want to take the money,

052set it aside, which is this is half of it right here. We're try to do half it this year, half of the next. And then after the reconciliation, after the state realizes, okay, now this is their true enrollment. They tr us up on our budget. Now we can use the money for one-time purchases rather than sinking it into personnel which have compounding costs. So that's the reason for that. another one of the safety nets we're trying to build into for our system here. Okay. So, reserve um reserve for the unemployment is um actually a sub account of the general fund. So, their beginning fund whatever used is not used their beginning fund balance in that reserve. You can see that that's why I budgeted 10.5 on the assumptions but it's a 10.695 695 on some

053sheets, but so the 195,000 is their beginning fund balance for the unemployment. So we only had to transfer 80,000 to tap it up um put it to the top of our list. And then we have reserve for the QSCB bond debt payment that's going to be ending here this 20 it's 6:30 2027. We have a reserve capital projects fund 401 that is at 600,000 this year. It has been at 100,000 in the prior years and reserve or seismic projects with the extra contingency we were talking about um Tim was talking about earlier of 300,000 as a onetime bill for this year I mean for 26 27. So we have reserve account listing is just a listing kind of of all of our reserve accounts tech textbook athletics fans so evergreen set aside unemployment and then

054we have the pers reserve also on the end of that we're not transferring any money into that at this point do we have any questions on the things we've covered so what is QSCP >> oh okay so I do have that in my slide because I wanted to make sure I got it right but let me go to what it It's on page of the slides right here. Qualified school construction bonds. That's what QFD. >> It's this. We're paying it off this year. >> It was a giant roofing project. North Bay, >> correct? >> Years ago, almost done. that that's what qualified school construction wants. Any other questions? So, if there's no other questions at this time on what we've already reviewed, we're just going to go over some all fund overviews, general funds, special

055revenue funds, and capital projects. And so, for all funds, we have uh proposed budget at 73,373725. last year was 68,632 056 that's an increase of 4.4 million and um so what makes up this 4.4 4 billion change and it's and just in summary it is uh the $720,000 this is all funds remember $720,000 for the land sale we have about 245,000 for operating contingency which went up a little we have transfers that have increased at 1 1 million20 evergreens increased about 700,000 um transportation increase was 782 2,000 and seismic uh was an increased of that seismic fund was increased at 295,000 and unappropriated increased by 477,000 roughly. So that was makes up this $4.4 million. So you can also see a history which is nice on page 48 summary of budget budget histories all funds

056and all four of those lines across are um the adopted budgets and then the proposed. So you can kind of see the consistency there across the history. Um you can see also in um the fluctuation in general fund requirements 1000 function you can see that in 2324 it was 28 I'm talking about the second the middle column here and then it dipped down in instruction charter school is in that 1000 instruction function the charter school and they dipped after co a lot and they continue to dip and then you would have a propose a little more that 700,000 is there only if they the reconciliations come in. So that's why it might be it's the 27 26 million but >> we have another safety net built into our contract with the charter 2 where we

057we retain essentially one of their state school fund payments and they don't get it till the end of the year. So it's a it's another safety net we built in just just to demonstrate >> apprudence. And also on page 49 which is the next page it's a nice comparison of the proposed the current proposed at the top the prior years adopted at the bottom and over in the um right hand column you can see the unappropriated section the appropriation of 73 million the unappropriated and so appropriation is 70 million and so forth and appropriation in the prior year was a 65 million but it's also nice to see in the columns instructional all the way down so you can see the variances And it's easy to pick out variances. So instruction it's a your increases

058evergreen your support services the main main increase was transportation and then in interun transfers your main increases your your transfers we just went over the 1 million extra >> which is not going to be something that that's because we came in with a large ending fund balance this year through the savings we're a instead of just leaving it in some balance for strategically placing it for long-term expenses for known needs and next year we won't have to transfer those large amounts into that into those funds. So this slide is only just an kind of an overview an overview um of the percent per fund. Uh so general fund of course is the most of our funding and then we have special revenues grants and special purpose is the second largest and then capital projects is

059the first largest for the funds special revenues and debt service they didn't change any from the prior year to last year really in percentages. So that's and then we go on um general fund revenue it's on page 67. So this is an um just percentages of your how much is of your budget is state sourced, how much is local sourced. But 67 is the breakout of um kind of a good overview of your revenue sources, your local sources on the left hand columns. It's your local sources, general fund, your intermediate sources, and then your state sources. So, and then we don't cover any any federal for really. Um and then inter fund transfers. And this is revenue in at 620 635. and then beginning fund balance at the 10.695 on page 67. So that's just

060types of revenue. If you have any questions on different types of revenue, please ask. So, so we can go into general fund. So now that was um that was general fund. >> Y general fund. So the proposed budget is at for general fund is at 50 million229,400. Um last year's was 47 million. So we have an increase in the proposed versus last year's adopted budget to budget comparison at 3.2 million. Page 77 on this one. That's kind of okay. So um just revenue sources if you're looking at sources it's state school fund is the largest portion we have property tax we have local revenue and of course the estimated beginning fund balance is a source that we use um as noted earlier we're on the second year of the bianium so the ex and and

061we're on a 51 4951 split and we're in in declining enrollment which puts us on the prior year which is our extended ADMW for applies to us. So we're in we're going to be using 2526's enrollments extended ADMW. Um we have so we're going to cover a lot of the comparisons on the expenditure side a little later. Um those are those are going to be on your function comparisons and your object comparisons. But really they're the same numbers just broken down into two different ways. Function level and object level. They're all the same totals. Um, and just remember the large large new transportation evergreen extra for increasing enrollments for this a state school fund reconciliation and of course pace insurance costs and then increased general funds transfers. Next we'll be reviewing the ending fund balance

062the beginning fund balance slide. So as a resource we are using in this budget the 10.695 695 and I wrote here that it does and I mentioned earlier that it does include the unemployment sub account of the beginning for the beginning fund balance in that um estimated ending fund balance for as of June 30th 2027 is the contingency operating contingency of 4.5 million and so 2627's use of the beginning fund balance of the 10.6 Six is 6,195,000 and the contingency is the 9%. >> The contingency is the ending fund balance by policy that we must maintain the 5% and the 2%. It works out to be about 9% of the budget when it goes into the general fund of 9% of the general fund. But this is another thing that we we not you won't

063see all districts put their required ending plan balance into a contingency. They'll just kind of leave it hanging in there and they could actually use it and we don't feel like that's safe. If we need to get into that, that should be a board decision. There should be reasons for it. When it goes into contingency, it means we can't we can't we don't have appropriation authority to use it. the rest of that end fund balance the use of it is again strategic use that I had talked about before. Um again our our job in the public sector is not to just continually increase this. That would actually really really hurt us when we got into a a a negotiation because it would look like we're just sitting on all kinds of revenue that we don't

064need to educate kids. But instead we need to strategically place it into funds we know we need money in. you know that what we're planning for because we have it we can build those funds for future use is why that's being used but again we're taking the amount we were required to have on annual fund balance and putting it in contingency that 4.5 billion and the next slide has to do with just the history and your history is always going to show the drop to the contingency only. It's that's how um that's what is guaranteed and then um but you can see our history of the beginning fund balance has been increasing and this is history as as almost this is how it's been shown several years and it's um as it drops only on

065this graph to the contingency amount and just so um just remember that ending fund balance is all about cash flow really you you monitor your revenue coming in you budgeted But you monitor your revenue coming in actually monthly and you make sure your revenue is coming in. So if your revenue is not coming in and your expenditures, that's where that's what's really going to be affecting your ending fund balance. If you think about it, it's a cash flow really. So um that could help be over your operating contingency of the 4.5 million depending on how much increase of your revenue coming in like interest income. We can only budget for so much interest income, but it right now it's really good. And so we we don't want to be basing basing a budget on estimated

066interest income, but that does help our ending fund balance increase. So that's why you are seeing the 10, the eight, and the 10 and the 10 again. So the next slide actually shows a history of um a history back to 2324 2425 2526 and of how much is really so actuals came in at 2324 at 39 but we had budgeted 44 so that's a s budget savings of about 13% the next year was 23% you can see of the adopted budget 25 26 is I'm estimating that probably come in right about 41 million which is going to help the ending fund balance which is at 10.6. And um then if we estimate next year's even though um so that we even though it's a 4.5 per the budget because that's all we can guarantee at

067an operate an operating contingency level. It's probably going to come in a little higher as that estimate estimate shows. that that's exactly what this page is for, just to show you the history that if you were that that chart, we just looked at the graph with that dip in the ending fund balance. If you go into our previous few years budgets, you you're going to see that same dip, but we then had the savings. So, that number comes back up and we're showing you here the percentage of what it is from adopted to actual expenditures. So when we're building this budget for 2627 we're saying that we're going to save 6%. But historic we're because we want to be conservative. We want to underpromise overd deliver but we want to promise according to policy so

068that the savings is there but historically you can see we did that same thing these other years but we saved 13 23 and 15%. Each of those years. So with that type of careful spending throughout the year, we can realize savings through the year and have the flexibility to address specific needs that come up and arise throughout the year which happened to. So that's what the items that could affect the 26 277 ending fund balance kind of are about your payroll actuals could come in lower than budgeted. It could actual the actuals and then you have the OD state school fund reconciliations that come in um Evergreens reconciliations is le maybe maybe less than anticipated for this budget. Um interest income could be higher than this. Um so that just is saved and it helps

069fund the beginning fund balance for the next year. Um when it comes in higher one year we don't reallocate to the appropriation within the same year. So we just it's it's saved there to be help our end beginning fund balance for the next year. 2526 is um beginning fund balance could be higher than anticipated as as all expenditures come in at the end of 2526 and then they so we do our best to estimate estimate and then it could be higher enrollments could increase um transfers may be lower in future years and then of course mindful spending. So even though we have it appropriated doesn't mean we need to spend it. spending a little bit extra time there just so you try to help build some understanding of it because that can look like it

070it can look like something different and it can feel like something different. You know, if if you were seeing that drop down completely and you just heard that we also just put out 30 reduction in force notices. That would be a really concerning because then we were saying then we would say well we're spending all this and we can't sustain it and we're going to lay off all these people. That would be a bad sign. Increasing our transfers is a good sign because you'll see that they're going to things that are actually needed in our schools. So, moving on to expenditures. Actually, this is um the 55. So, this is showing your function level percentages. 55% instructional, 32% support services, 9% operating contingency, which is your 4.5, and then other uses at 4%. So, I

071just wanted to make sure everybody knew that all functions go to support student education. No matter what function it is, we're required by PBAM, the Oregon budget law, to put them in different functions, but all functions support student education. So just a few support service um 2000 function level items that actually go direct to the students is it that's direct to students custodians maintenance and buildings that includes your lighting heating water sewer garbage businesses payroll accounts payable budget auditing grants we have human resources psych services guidance counselors nursing services principles and secretaries board of education sped direction curriculum transportation for students. And then at a 3,000 level function, which you're going to find in your special revenues, is your food service. And that's a direct impact on student education. And then we have 5,000 level

072for your transfers. This is used for student education. It's for your replacement textbooks and your replacement it and replacement athletic program um items that need to be done. So, and also capital improvements that for student facilities. And that's an important point because like when you look at the you know a pi graph like the the gra the pie chart represents the whole. So in this case think of it as a dollar. When it says 55% goes to instruction you think 55 cents out of the dollar goes to instruction. But we're following the library mentioned the pbam program budgeting and accounting manual. That's a common accounting manual used across the state for all school districts. It's required that defines what fits into each category. It doesn't mean that money is not supporting instruction. Support services like

073Lorray said, does not feeding the children support instruction? Of course it does. It supports it in a different way. does a check-in checkout program who helps a child who has maybe just lost a relative get through the day or a child who needs a little bit extra social skills training to be successful in school not support instruction. Of course it does. It has to do with the accounting pieces of it and how money is tracked. >> Okay, we'll come back to order. Ray, you want to continue? >> Yes. >> Go ahead. Okay. So, we're going to just run into special revenue funds and then debt service and then capital projects and then some answer some questions that have been submitted via email and um then conclusion. So, and comment. So this is just an overview

074of the grants that we have in our budget titled Indian Ed and then TAP tribal attendance IDA um early lit grant SIA grant student investment uh preschool promise grant the summer and so and then summer school learning is the new one high school success is 290 fund 290 and then also included in special revenue funds is some special purpose they're not grant funded, it's your food service. It's f that's fedally funded for the most part. And then you have uh student activity funds fund to 298 if you're looking in the budget. And then reserve accounts where all the um it's anyways the reserve accounts and that's special purpose. So they're set aside for a special purpose. Is >> that what we were talking about before like the athletic field and all that kind of stuff

075that >> as Yeah. for the reserves. Okay. So, last year it was um just nice and wanted to know about the athletic participation versus um student enrollment kind of a history. So we can see a history there from 22 23 all the way to what's anticipated and um in 26 27 fall winter spring is on the next slide of the beginning year to this anticipated year end per sport. So you can kind of see that um that increases and those percentage is kind of nice to look at. Any questions let me know. And spring sports this is spring sports. So you can see that um track is there and then the bottom one is all high school athletic programs and it's based on actual enrollment not a percentage of um you know percentage of the

076people enrolled in not percentage of the student enrollment versus in each sport. Not very well but okay. So then we have student investment accounts which is to do with class size reduction well-rounded education uh instructional time increased instructional time actually um health and safety those are the four items that SIA supports these are just some highlighted grants that we over >> SIA is part of integrated guidance now OD lumped integrated guidance it's SIA high school success are the two largest and that has a whole another planning process that lives outside of the budget committee. Then of course the budget's within the b overall budget but last spring you might the board members would recall and it's all available in public record is is when we have present the whole budget for a bianium with the

077student investment account and we had line by line items of what we were going to spend money on and it was all based on our strategic plan goals and we actually have um a document and I think that's also posted on our website that it it it it tells you what how each expenditure by line item goes to a strategic plan goal. So it's very transparent how that aligns with the strategic plan. So that I just wanted to point that out that there's a whole lot more information and I think there's like a 47page document we wrote about all the different programs in the school district and how funds are braided and come together to meet all the goals of the student investment account as well. So you can see that it supports 19 FTE

078and um I don't know if I want to read the slide but anyways it has behavior in there social emotional learning class I was reduction staff out outdoor education um some mentoring stipens literacy specialist some extended opportunities it's the afterchool opportunities this is for the um staffing side of things and this is for everything else it supports that's beyond staffing uh that we pay for. But you have your um therapists, that's an outside service. Um professional development, safety and security of the student and curriculum and some high school recovery classes, high school alternative edit learning programs and some connectivity checks as your hotspots. A lot of it is um then we have the high school success program which also is does your community college expanded options which is important and your supplier program CTE teachers

079and supplies with your CTE teachers your grad coaches uh preschool promise grant this is where we've added some a view of the 30 if we have the 32 extra student slots above We have currently have the 39 student slots. So it's two more class preschool classrooms, one coordinator, three pre so it's two more preschool teachers than we had before. It's 5.25 extra FTE on the classified EAS. We had 5.25 25 before. And then it's just materials and supplies, transportation, and some capital improvement projects, which >> that's and the whole preschool program entirely grant funded. Nothing comes out of our fund. Nothing comes away from our student dollar. >> Capital missile playground upgrades, those kind of things for your capital improvements. And then we have early lit grant. It's another um integrated guidance grant and it

080holds your literacy specialists, some professional development and some supplies and materials. So this is where um the QSCB bond is qualified school construction bonds started in 200 2010. We're almost done with it. So it's for the North Bay Elementary roof project was originally graded back then for That was debt service. And so then we have 400s is the capital projects. And we have 401, 403, and 404. 401 holds all your regular facility improvements. 403 is your seismic rehabilitation grant. So it's the special money for your 2.5 million grant plus that 300,000 extra transfer for your support of improvements while construction is in progress. And then 404 is the potential sale of your 10.10 acres of $720,000. And then we have in that appropriation 15,000 appropriated for the trail system. It's in special 404 listed out

081there in your budget document. So uh just some capital projects that I thought would be helpful and necessary to list out what we do with our capital money in 401. These are some of the ones we have listed for next year. your Hillcrest stairlift, your abatements, so forth. You can read those. Um, and then >> it's we it's hard to get through all those projects in a year, but we want to budget for them if we can. If we don't, the money rolls into the next year. We'll try. I mean, we will try. It's hard to sometimes hard to get contractors. Sometimes it's hard just to keep up with the number of projects. Planning a project takes a lot of work. So even with our on our own maintenance staff, if if you know all

082of a sudden we're like the middle school, like all of a sudden we're digging up sewer lines in the middle of a year, you know, that throws off a whole lot of other projects. Um trying to get bids for projects takes a long time. Sometimes we can't even find people to give bids on some of those projects. So the Hillrest stairlift, I just want to highlight that. Um you know, that's like what $130,000 I think it was. And and but it's never had a stairlift. that's never had an a an elevator. And if a student is struggling with mobility, they're they're going out onto the street down a hill and then they have to go back up the hill to get back in the building. And it's just something that our administrative team said, "No,

083not any longer. We're getting a stairlift installed." And so is it it's happening now in the midst of the reconfiguration, but it was a long time coming. So we wanted to make sure that was a priority. It's already ordered. We already have this planned for this year. So that'll happen. Middle school abatement just every year. It's just we hit three classrooms every year. We're almost done with the whole middle school, but every year we try to hit three classrooms, pull out any of the remaining asbestous. It's not loose asbestous right now. It's I mean if if anything, we test constantly. We maintain a record of all the asbestous in the buildings, but that's just something that's been ongoing and we've been doing three classrooms a year. some of these other things, you know, the the

084met metal shop duct work. We're hoping to get that done. We don't know if it will. It's got a lot of ventilation in there because you can open up the big door. It's got big fans, but we'd like to add some more duct work if we can. Some of these project the roofing projects, I mean, we just really struggle with contractors to do the work. The work is planned. >> How you'd like to see some of the some of the projects? Just out of my own curiosity, the Broadway property, is that the one that's adjacent to Clyde Allen? I assume the school it bought it. Okay. >> Yeah, there there was a house adjacent to Clyde Allen baseball field. Um, we we share the parking lot that the city's community center is right next to

085Clyde Allen baseball field. That whole parking lot is the city's except for in front on the street, but it's that's very small. There's been talk of the city selling that property, the the community center, which we would lose all our parking. So, a we needed to identify more parking spaces. Um, we also had an issue with uh the fence line. It was um their fence line was built on our property and then there were some extra people living in the backyard on our property but inside the fence. Um there were some you know there's people that there's obviously some mental health challenges there but also a lot of drug use going on there adjacent to that field. Our kids are exposed to it. So we went over there um introduced ourselves to the owner and

086just um talked to him for a bit and he was um interested in selling the property. We've got an amazing deal on that property. Um $150,000 for the lot, for the house, the lot, I mean, and and everything else included that's been piled up in the backyard for years for free. Um so, um but that will be cleared out and and be parking and it will remove that safety hazard from our students and our community. So, something I think that we're all proud of. >> The funding sources The funding source for that was Pacific. We had a house that we owned on Pacific Avenue across from the high school. Thank you for throwing that in. So, we sold that house because it was no longer needed. That house was purchased several years ago. Um, and

087it was purchased for our um adult transition program for the students 18 to 21. And um it it it wasn't in a good it's not it was a it was a great idea in concept but we didn't have the staff there and then they're they're off campus. So when things happened administration had to leave campus to get to the house. It was it was there's there safety issues trying to get to the house and and then they're unsupervised when they're over there. Um, so there were several issues why it didn't make sense to keep the adult transition program in the house. By moving it back into the high school adjacent to life skills and middle learning, we increase staff oversight. Now we have multiple teachers that can all support each other. If educational assistants absent,

088there's educational assistant in the room next door, they can help cover each other if we can't find substitutes. So then we moved for those reasons moved that program back into the high school. So now we had a house sitting there unused. So the house was sold to pay for and paid for this property >> and then this clean up side of things. So that's >> and the cleanup. Yeah. >> Extra from the difference between the two is >> Yeah. So we have some email questions and I just on the slides I'll just provided the questions and then um and then I did say in my notes here that the FT staffing certified decrease classified increase questions were answered on the FT slides. The beginning fund balance questions that were done were and fund balance were

089also answered on earlier and so I didn't I'm not listing them here um unless you have additional questions regarding that. So um the beginning so this first one is about the beginning fund balance and does it play a part in the May part and so it does beginning fund balance does play a part in the state school fund of May reconciliations in regards to cash flow really so >> is there I guess one thing I'd want to ask because I want to make sure as a committee you have time to talk about things too that you want to talk about but when you look at these questions um are there questions here that are unanswered for you Um >> well because we didn't submit them shouldn't we go through them in case somebody's like watching

090or wants to know >> I would say that everybody who submitted the questions are in this room. >> Oh okay. So, I we talked about we talked about we tried to answer I think a lot of these already. So, I don't know. I just I just want to make sure we don't spend a time answering questions. We're happy to answer them again if we didn't answer it or if we if you think we didn't answer it to elaborate on it. I just want to make sure you have time to talk if you need. >> Um Lori, were there some that you felt >> purchase services is a large expenditure category larger than salaries? Yeah, >> that was just um we went over the object of 300 purchase services and it's transportation utilities, charter school which

091was your 360, repairs and maintenance is your 322 um and you have copier usage in there also and then travel and professional development, athletics, referees, those kind of things, hotels, meal costs going up and so forth just in and then you have outside services which is mostly captured under 389 but um it's just outside services anything that's a service and not a supplies or materials per the ban. EBAM which could include referees, athletic referees, plumbing supplies, pool rentals, SRO, which is a general fund, SRO, one of them is in the general fund services. So that's kind of what encaptures the 300 purchase services object level and then expenditures that are directly tied. So uh that I think we're going to go over that one in further detail about the strategic planning later. Well, yeah, the

092expenditures, it's hard to say in the in the SIA budget, it's easy to because we've already aligned them. We could definitely pull things out of here point by point and say this is how it aligns to strategic plan. Um, what I thought we might do is um is is just talk about how we do strategic plan work because it kind of fits everywhere into the budget. It's it's how we it's what we live. Is there is there >> thank you >> that question I actually wanted to ask some background that question was when I think of and we actually had some people in the room here. So when we think about last year and the strategic planning planning that happened we had you know of course large groups of people coming together you know community

093involvement and that was really to develop some of the plan but this year is our first year actually imple strategic plan and we have been still working with a team performance back that is um helping facilitate the building um building mold building meetings and then also district level meetings. And so what that may look like um each building multiple times throughout the year has we have met with with our building admin around strategic planning but also our buildings have brought teams So typically teachers are getting subs during the day and they're taking you know a block of time whether that be maybe two to four hours and they're actually meeting with performance back and reviewing data. They're going over goals. They're looking at strategies and so um with with the administrative team. So those groups

094have come together a few times this year. I would say that they their there's certainly expenditure was to some of this staffing support to be able to hold some of those meetings trying to well a lot of our expenditures are direct what those goals are you know safe and and supported connected and present has been one of the big ones you know especially with some of the check-in and checkout that we're doing some of the behavioral training in there our school resource officer uh and what they in there. So, we've done a lot in there with that as well as the fencing and the cardinal breeders and those type of things as well as each school focusing on the culture and working on building that culture uh to address some of the major issues that

095came up in strategic planning like bullying prevention. What can we do that way? Self-regulation in the elementary school. So, uh, they've connected at present has been one of the big ones as well as the foundational readiness at the elementary level and a focus on that. The early literacy in there, the science of reading and the implementation through our RTI with response to instruction program uh, in there. We've done a lot in that way. Looking at data, analyzing what we need to do and responding to the needs that are out there as well as one of the goals that was identified, the preschool uh opportunity. Having started a preschool and then being able to expand it was one of the major goals in there as well. Another goal that we had in there was academic uh

096uh growth, continuous academic growth. and looking at that what we could do and we've done a lot of things in that area as well especially at the middle school and high school where it's a little bit different and then of course our last goal was you know that transition to the community uh for a graduate to be ready that portrait of a graduate and ensuring that all those skills are there continually meeting talking about what we can do it's interesting because you come to a board meeting used to be and I've been in a lot of board meetings over four years you sit there and you So a strategic plan would be put on the you'd be done. Everybody excited it get put on the shelf. Now we're coming to meetings and said making presentations

097sharing data with the board on what we're doing and and the difference we're making related to strategic plans and where we're at on that. Knowing that we have four goals. We can't implement them all at once. We're picking small chunks that we can do and making progress towards that knowing that it's a five-year plan and we hope to to meet the goal by the end of that fiveyear cut. >> You may not see line lines in here that say, you know, this was spend on strategic planning, but when I think of some of the expenditures that are supporting our strategic plan, um, and I really hope I'm not muddying the waters, but just today we actually had OD representatives come down and they did District tours and interviews is because we were the recipient of

098a stronger connections a few years ago. It's a two-year grant. It's ending in September 30th. And so that grant um so Bruce talked about that grant funded like an SRO that the wayfinder activities and other budget line expenditure in the stronger connections as an example was additional counseling services. Well, those additional counseling services while they're being paid for by the Stronger Connections They are absolutely supporting our strategic plan by ensuring that we have more counseling services in our schools which is something that was identified mental health services through strategic. So again you may not see a budget line that says oh look this this here but when I think of you know the expenditures towards supporting our strategic plan like that stronger connections. anything on the sp um I I you know like for another

099example of way that like sort of the funds all braid together which is why it's hard to just pinpoint things but um along the lines of the safe supported connected and present when you think about social emotional learning um one thing that we're doing in that that we're planning right now is to strengthen those programs next year and that is happening through our two instruction instructional coaches and a leader from each grade level. And so we have one instructional coach funded from the early literacy grant, another one funded a little bit from early literacy and from SIA grant. And then we have our teachers all supported through the general fund, but they're going to the teacher leaders now they're going to come together and they're going to build a scope and sequence of lessons for

100all the elementary grade levels that we can say, okay, this is going to be what the expectation is next year to help improve the culture climate of the school to address the student experience and create a more positive environment and reduce sit that you know bullying things like that that are occurring. Um they're the the scope and sequence is going to include the wayfinder lessons, future ready skills. It's going to include um zones of regulation. So the the identification of and management of of your own emotions and also kelso um pro which is problem solving. how to how to address situations when as a student when you're on the playground, how to how to address conflict, things like that in a positive way and proactive way so it doesn't escalate. So that's an example of

101how all these different things come together to support our strategic plan and they become really our sort of signature strategies and implementation. Um there's I mean this this exists everywhere. the the response to instruction, Oregon's response to instruction. We did extensive work with that with the teachers doing academic pacing. Um what are the essential components that we should see in a classroom that need to take place during a a a early a literacy block? You know, what's what's in place there? What are the the mustd dos and the mayos, so to speak? Um what are the assessments look like? What are the b what are the how are we screening students for interventions? Um the it's it's focusing our work on the strategic plan on what the community and staff wanted and on what the

102students said that they needed through that planning process. Professional development, you know, expenditures will end up aligning to the strategic plan. It really is kind of what we're focused on constantly. Another example is we're through our funding we've just posted a BCBA position. Um that is a board nationally board certified behavioral analyst position I believe is what it is. But a BCBA is a a very high level very skilled behavioral specialist that can help us with onboarding new staff. One of our big problems that we we we face is in our life skills program, our special education programs, our um social emotional learning programs is staff are hired, they go into these programs and there's not really a training component. It's like if they have the right temperament, they might stick it out and learn

103the skills over time, but that, you know, there's this ongo staff, too. Yes, there's skilled people in some of those programs that try their best, but they're also working directly with kids. So a BCBA can work side by side with these people and actually train them how to interact with the kids, make sure that their work is focused on actual goals to help the students learn better skills and learn how to improve. And through that, we're going to then build in an and I'm going to say RBT. I forgot what the other term is. >> RBI. >> RBAI certification. And um what that is is more of a classified level that works under the the BCBA and is trained at tracking the data, working on the skills the students need. The this is a person

104um that will be able to work with our um neurode divergent students, train staff and neurodeiversity and strategies to work with these students. It's a person that can serve as an autis autism evaluator and consultant for our staff and and really have a massive impact on our programs and really scale up the services we're providing to all the students and staff in the district. So again, something that there's an align item for it, but there's very intentional work towards supporting the strategic plan. >> Can I add one thing to when we looked at that? We looked at taking funds from a variety of sources and pulling them together so that it wasn't out of one budget item. Yeah, it might have been some things from ESD. It might have been some things we're already doing.

105How could we do that without having to cut a position or add to the budget as we went forward? >> Um, so that's a little bit about strategic plan work. >> Next question. Yep. >> Okay. So just these are the other three and then I have one more question on the last slide. Two more questions on the last slide for emailed questions and so um can run through these really quick. We did touch on a lot of that the big uh transportation cost was a big one. Uh reconi reconi I just wanted to touch on reconfiguration as a significant change was listed. Um we did list it as a significant change because it is a change to our district but it doesn't mean that there was a significant cost associated with it. Um so moving

106teachers, switching locations in the budget, we uh appropriated a little for that for um for the moving company. I mentioned the 31,000. Uh we have extra summer staff classified to support staff um and 13,000 there because this was one of the questions. And then um we do have teacher movement from classroom to classroom. they get a um there's a so 21,000 in that movement about so it's based on 30 stipens. We don't plan on using it that um is normal for right now. We just looked up the history right now. We've only spent 7.5 for this year. So it's a normal thing we normally spend money on. Um we just increased it a tad because we knew we were going to have movement. And then and then you know that again just because it's budgeted

107doesn't mean we'll use it but we want to make sure we have the appropriation for it. If it doesn't cost 30,000 to move obviously we won't spend 30,000 to move. We didn't want we didn't necessarily want our maintenance staff moving a lot of the heavier furniture so that way that that we want a low budget. We are going to move all the the material supplies things like that all be done on pallets. Um, so also on the transportation cost, >> I I'm on that transport, we had to go up for RFP anyways. >> And so we actually our district has chosen a transportation company that that best supported the district needs. Well, >> while we had to go for RFP anyway, this question's come up a lot. >> And I know it's a guesstimate because

108we don't know what we would have got if we didn't have the change in routes, but can you give a guesstimate on how much you think it increased cost to add the routes the way we did? >> I think so. We know our costs were going to go up no matter what based on our current routing. It was already going to be like a 20 25% increase. And then they had tagged on our current bus company tagged on another dollar amount to it, but we sat down with them ahead of time and and talked about what that looked like and and basically the answer was we'll just double the routes. And that is just really a that's just not the that's not the answer. That's correct because we're able to look right right at the

109routes right away and say, well, what if you did this, this, and this? and it would already reduce rise time for everybody. So, a lot of things that we wanted to happen weren't necessarily happening. The the first student is has the software and experience and and you know they're national. They're using the same software from the smallest district in this country to absolutely the largest like Chicago public schools, things like you know districts of that size um running their um routing software and they're able to give us what we asked for in the RFP which is maximum bus rides of 45 minutes. We're anticipating a lot less time on those. So, I honestly don't think that using the right software, using some Zwok zones that weren't in place before. Um, we're going to be able

110to actually do this. I would almost say for I mean, it's like I can't say for cheaper because the cost went up, but it's kind of like that first chart, the proportion of the state school fund versus what we receive. Like, yes, the cost is going up, but I think we're getting more for less, if that makes sense. >> And it was going to go up. >> Yeah, >> it was going to go up anyway. And yeah, and it would have gone up, I think, a whole lot more >> than it's going to because we're already meeting with them and talking about what those routes are going to look like. Um, of course, there's going to be a few exceptions because we have people that live on the back side of Lakeside, you know, of

111the lake. So that'll be a little bit >> small item. But Tim, were you able are you is the district at risk for uh increase in fuel >> costs or is that set? >> All the they all like the fuel pass through. They all have that. >> It's a pass through. >> Yeah. Yeah. That all the contracts give you that. So fuel costs go up, so do our so do our fuel costs. >> What do you mean if they go up? Maybe they'll come down. >> Okay. Um so just touching on the um second little one we already went over the 1.13 million biggest but the 355 I'll just reiterate again is about your um it is the uh it's in the function of 2542 which is your maintenance and that was a question how

112come maintenance went up so much on that function and it's really about the additional roving subs mentioned subbing and subbing increased over what we had pre previous and And then also that's where our pace legal annual that is a 48 right there increase on that line item. So and then repairs and maintenance increase a little. So we'd already gone over that but just again um and then the board of education went up. It's um so when we when the 2526 budget was created we didn't anticipate four new board member roles changes. So that was a big change there. And with that comes professional development and um with any change of board it comes that way. And so you have also outside services and some outside services of members memberships KOSA OSBA they've increased their costs

113a little. So >> we just you understand we don't get paid anything. >> We the board members do not get paid anything. Um in fact the board Oregon passed a law that board members could actually vote to pay themselves. Right. Not very much but a little bit. our vote our board said no we're not going to take that money um and we're very happy with our board members um when the when the when but but you know when you have we knew there are four seats running but no one knew all four when we made the budget would be replaced so um that's where just a little bit extra money budgeted because also what's fantastic about this board is like everybody went right except Carol's head we brought Carol's head but everybody went to that

114OSBA training at the beginning of the year you And that's a very valuable thing for a school board to do. And so, um, having, >> yeah, all those different trainings and >> we, yeah, there's a lot of train and there was more at least that were brand new plus some of the other board that wanted needed to brush up, which is a good thing. >> And we're also we're also we're also using OSBA for the superintendent evaluation support system. So to help, you know, we in in years past, we haven't really seen a robust superintendent evaluation system. And one that, you know, I'm I've been on board with from the start. And so we're going to use them sort of as consultant throughout the year to help build the board's capacity to also give me

115meaningful goals and meaningful things to reflect on to again focus on the school district. So different ways where that budget, the increase is very beneficial to our students. I also wanted to add that on that reconfiguration piece, we're also have indirect savings that aren't accounted for, but they come in the form of increased services through the reconfiguration. And we already see this unfolding in the master schedules, reading intervention, social emotional learning. They're doubling the blocks of time they have for students. So, we're seeing this in our title one reading program, a title one intervention program for for langu they they've always focused on reading because they're doing K5. All of a sudden, right now with a reduction of three grade levels, they're able to double their blocks. And when we're looking at the master schedule,

116I just looked at one the other day, they now have the reading intervention for grades three, four, and five. They also have math intervention for grades 3, four, and five. That's a service that hasn't been offered for grades three, four, and five. And now it is. So that's an unreal. Like to me that offsets this cost for moving because that will be ongoing. Same staff, double the services. >> Okay. So the last two questions were over um transfers, and we kind of went over transfers already, but >> transfers we covered some detail, so I think we're good there. Um >> and then the last question was just if we get um we've underestimated enrollment and increases dramatically. >> So if we gave the estimate for school but what if what if we get 200 more

117kids than we anticipated. Do we get that money? We will later. Yeah. And I mean you will eventually for sure. You either you get offset one way or the other. You don't get to keep extra. You don't get they'll pay you the extra later if you if if you deserve it. If you have the enrollment, if it was really far off, and we see this happening sometimes, um, we can submit those new numbers to the state and if they feel it's significant enough, they'll adjust the state school fund like that mid year. they already do some adjustments mid year anyways, but if we were really far off and needed the money to function, um it's also good if you don't need it to not adjust it because then that extra money goes into your ending

118fund balance to then increase your ability to service students the next year. Okay. So, it's just really next steps and if if we have additional questions and comments, the next steps is um just to remember that um budget committee approves appropriations and tax and rates and amounts. They also just approve appropriation by fund and function level. And um you can actually see resolution on 32 page 132 is just kind of a sample resolution. It's not your motion if you wanted the sample motion but this is the resolution that gets for the adopting and so you can see your fund functions there and what would be the appropriateation approval. Yeah. And then um you can also see the tax rates page 132. And so >> any more questions? What we missed here for you? >> Yeah.

119Any questions from anybody? >> I have a question. From the 48 students that Evergreen um expanded, do we know what percentage those were in person Northbend kids before that? >> I don't have that number off hand. We can easily look it up. Um >> I'd be curious. >> They're the 48 expanded for next year when we say they're growing. Um that they're they're from anywhere in the state. >> Is it Yeah, I know. But I just wondered how many came from Northbend with the >> I think it's in our policy. I mean, we're tracking who goes to Evergreen, but um I don't have the number off >> hand. So, they're pretty strict on like you have to follow by the rules. So, I wouldn't say that. >> That's very true of online schools. Like you

120Yeah. They might on the way out the door say I'm going to evergreen going in evergreen and then not engage and then there's this 10day drop law >> and for some people it is you know some kids just need an alternative choice and I'm grateful for the alternative choices but a lot of times it's just open. >> Any other questions from anybody? No. Well, I want to thank the staff and Tim, you guys. I think um this is my third uh budget committee meeting. Um and I think that you guys did a fabulous job. It's clear that the staff spent a lot of time on this and did a lot of explanation. Um like I said, third year through it, it was sort of old hat for me. So, I thought you guys did an

121excellent job. So um I think in years past there was always uh sort of uh the presentation uh and then we submitted questions and then we came back and had a brief question and answer session. Um uh but it appears that that was done sort of concurrently with distributing the budget this year. So um is anybody uh particular on which direction we had? We can certainly entertain a motion for approval or come back again. I think there is another date in is it >> a week from today. Couldn't remember if it was one or two weeks. So, well, go ahead, Bob. >> What can I >> Okay. >> Hey, just I have a comment just to make really quick. >> Sure. >> Just in case it's um required by law to have public comment. Don't

122we want to just kind of have an open public comment and close it? Oh, >> just in case. Okay. >> Even though >> So, yeah. >> No, I'll >> open it for public comment. >> I'll open it for public comment. Is there any members of the public either present or online that would like to provide input? >> Anybody? >> Is there anybody online, Jeff? >> No. >> Okay. Anybody for public input? Last call. All right. We'll close for public input hearing none. If there is Bob, would you like to make a motion? >> Make a motion that we accept the budget as proposed. >> Okay. And do you want to you want to read the motion? I think we would be good to to have it official in the record. >> Page 128. It is

123be it hereby resolved that budget committee of North Ben School District number 13 approved the proposed budget for fiscal year 2 2026 2027 and the sum of 73 million 373,725 that the budget committee further approved the property tax rev school district being as follows. $462 26 per 1,000 of assessed value for permanent rate tax at the meeting held on the 12th day of May 2046. >> Okay. So, there's a motion. Do we have a second? >> I'll go ahead. >> Second. Thank you. Any discussion? Any further discussion? No. Just to read. Uh I do have a question. Uh Tim, maybe you know the answer to this. In years past, those of us that have spouses within the district, we've at least announced that. Does it make sense for anybody that is in that classification to

124at least announce that they might have a potential conflict? So, I'll go first. My wife is uh within the district uh at the high school. She's an employee. So >> my wife is also >> my wife is an employee of the district as well. >> Okay. All right. So we have a motion in a second uh for the following resolution. Be it hereby resolved that the budget committee of Northbend School District number 13 approve the proposed budget for FY2627 and the sum of 73 uh,373,725 and that the budget committee further approves the property taxes to be levied for the Northbend School District 13 as follows. uh 4.1626 uh per $1,000 of assessed value for a permanent tax rate. All those in favor signify by I. >> I. >> Those opposed. Motion carries unanimously. >> Well,

125with that, I want to thank everybody for their time tonight. Especially thank the staff. You guys did a great job. Um uh it's tough for a group of non-school people to come together and to look at this level of detail but you make it as easy as as it can be for us. So does anybody have anything else for the good of the order? Otherwise I will accept a motion to adjurnn. >> Motion to adjurnn. >> Is there a second and a second? Any discussion? All in favor? I I >> motion carries.