001Everyone's here. Uh, please stand if you're able and remove your hats for the pledge of allegiance. Any pledge allegiance to the flag of the United States to the republic for it stands one nation. >> All right. Great. Welcome everyone. Uh we don't have any public comments that have been uh emailed to us and no one in the audience for public comments. So I'll skip item two guidelines for public comments. We'll move straight into our study session. Uh and today uh here in June we have a study session on the budget presentation. We have a PowerPoint from Stephanie and from Chris and I'll let them take it away. Good morning. Um, okay. So, this is the 2627 budget proposal um for next fiscal year. Uh, we bring this to you guys typically in July. Um, and
002as we talk with you guys, our timeline this year is moved up about a month mostly because of our migration to the cumulative system. Uh, where we make our transition in July. So, we need that this budget adopted in June before that all happens, which is why we're here today in mid mid June at the study session to kind of walk through it with you guys. Um, and then hopefully at the business meeting later this month, it'll be a smooth adoption for the budget. But we wanted to get your guys' well one give it to you guys in advance so you have time to review it um and get any questions from you guys as well. Um, this has been Let me get my clicker. um pretty much a about a six-month process. We started
003this way back in December, probably even earlier. Chris did it earlier with the enrollment projection, but it's an overall six-month process with the district administration team and our building leadership teams as well, our principles and and assistant principles in um the planning, especially this year with the reductions that we had to make. And I'll go forward one slide. Okay, we try we tried this and now it's not working. Um, you want to click in your presentation? Maybe that's it. Yeah, we we were double prepared and is there we go. I think once we're in it, then we should be okay. Um, [clears throat] so back in 2023, uh, when we started to see or foresee this deficit problem going forward in our budget, we got the directive from you guys as a board to essentially
004close the gap and bring our expenditures in line with our revenues. Um, and that's what we have taken since then in the planning and developing of our budgets um, to make sure that we're closing that gap. Luckily, we had a hu a a large fund balance at the time to be able to soften that blow and soften those deep cuts that were needing to be made um over a handful of years. So, we were able to kind of as you'll see in our fund balance and as you have seen um we've slowly dipped into that fund balance to absorb those reductions and not need to make as deep a cuts each year. So, we'll start with the um general fund and just to recap because I know Larry, this is probably your first budget presentation
005that you've seen from us. Um I'll kind of go over it a little more in in depth and explain some things, but of course you and anybody on the board stop me with questions if you have an any as we go along. Um these are our five primary operating funds. We have general fund, ASB which is our student body fund. Um debt service fund that we operate and um service our debt outstanding bonds in capital projects fund um which we do all our buildings through building and schools and major improvements and then transportation vehicle where we purchase um our buses our bus fleet. And so we'll touch on each one of these throughout the presentation but the one we're going to focus on primarily is the general fund. uh because that's where we do most
006of our business out of, right? Um so just a recap of the general fund budget for 2627. Um projected revenues is just over $67.7 million for next year and projected expenditures is 68.5 million essentially. Um with an overall net deficit of $732,000 projected. um ending fund balance about 8.9 million and we'll kind of dive in to what makes that up um these coming slides here. So, in developing the budget, um, we had to respond to a lot of different challenges as we've kind of harped on with you guys over the years, years now, I can say years. Um, it's a lot of the same challenges that we've seen. Um, primarily enrollment decline is probably the most impacted one. Uh, we've seen or project to see 225 uh, student enrollment loss between 2425 and 2627. Um
007and then again going further into the future we do see a further decline in enrollment. So that's an ongoing challenge that we see and we'll have to respond accordingly. Um the other thing is the projected expenditures increasing at a higher rate than our revenues. And so we've seen that one through the salary gap, right? We've talked about this over and over where we are not fully funded from the state for our staffing for what we pay uh based on our salary schedules and then also with that salary gap when we apply IPD which is what we get funded from the state for those increases that gap gets bigger and bigger. Um so that's an ongoing issue as well that we see that we have to address with budget reductions. Um and then inflation in our
008MSOs. So MOCS are material supplies and operating costs. Um example like that we've talked about insurance or insurance has gone up what is it 60% 70% um in the past couple years um but we're not fully funded from that from the state. We only get IPD applied to our MSOC allocation. So we see a maybe two to 3% increase from the state but overall our operating costs have gone up significantly higher. Um another area is insufficient fundings from um for our other programs specifically special ed. Um for next year our special ed program is u projected to operate at a deficit of $1.1 million. Couple major um factors there is one is our student needs. Uh we have student needs that are can vary from student to student. We get funded from the state a
009certain dollar amount but that's not based on actual costs for those students to serve those students. Another issue there is our staff availability. um we do need very specialized staff for the special ed program like our occupational therapists, our speech language therapists and really the availability of those staff is limited. Um not every school can find those kind of people who can do that job and so we have to contract out a lot a lot for those services and usually at a higher rate than if we were to hire somebody. But it's not we we are always looking for those staff. It's just they're just not out there. Um and then another item here is substitute costs. We get funded from the state a small portion of what we spend on substitutes which overall deficit
010is about 1.7 million that we have to come out of pocket to cover those substitute costs. >> One thing with that we we don't get any funding for classified subs. So all of our c our sub costs for custodians para educators and all of those they don't we don't get any state funding for so they we have to look to local funding to to fill the gap on that. >> Okay. So looking we're going to take a look at revenues and expenditures um and kind of break those down a little bit. Starting with revenues, um, looking at last year, so 2526 budget to next year's 2627 budget, revenues are going up just $475,000. And that's about a.7% increase from the prior year. Um, I highlighted there a handful of items. These aren't going to add
011up to that 475 increase, but these are just things to note. Um, IPD for this year was 2.6% 6% that we receive from the state for our funded state programs. We obviously have programs that aren't tied to state funding. So, we don't see that increase across the board like our federal programs. We don't get an increase there based on IPD. Um, excuse me, levy and local effort assistance. So, LEA, we saw an increase of about or project to see an increase of about $450,000 in levy and $365,000 in LEA. food service projected revenue. We do foresee a decrease in that of about a half a million dollars um based on enrollment and on decreased participation in those programs. And then the big one here is our decrease in enrollment of 109 students projected. So that's
012about $1.9 million um in revenue there. And just a visual of the enrollment projection going into 2627. You'll see in 2324 when we were at our peak at the 3,693, you'll see it kind of trickle down to next year we project at 3,468. This chart also breaks out the type of enrollment that are there. We have our K12 enrollment. We have our AL in the gray. And then we have our open doors, our re-engagement program. and uh running start in the gold in the our transitional kinder in the green there. >> Um just to highlight though this year and we'll bring this up at the next meeting. We just ended of course we just had our final count. You might have saw the email go out yesterday on our report. So we did actually the
013loss the actual loss of students um from 24 25 to 25 26 was 44. So we had projected 63. So we end landed 15 over projection. So if we can land within 20 um over is pref preferably over projection. That's really good. So uh we we ended up at a good spot there. >> Yeah. And and that because our budget's based on a trend that doesn't really change much our end point for 26 27 at this point. Um, but having that additional 15 students there would probably, I would assume, make a little increase there on the end, but projected wise, we're still at the 3,468 for next year. And then a look, a breakout of our revenues um by source, just so you have an idea of how we're funded. Um, state general aortionment. So
014that's our basic education allocation. Um, about 55% of our revenue comes from there. And that's that gray big gray chunk. Uh second up is our state special which is like our um LAP program, our transitional bilingual program. Those state funded or special education would fall in there as well. That makes up 21%. Um federal makes up 8%. Those are our title one programs. Title two, title four, title six, all of those federal programs would fall in that category. Um and then local taxes and local effort assistance. So those two combined make up 13.1% of our annual revenues. And so just a little plug there, reminder that our levy, current levy expires in 2027. And without passing that levy, we would also lose that LEA funding. Um so just keep that in mind as we move
015forward into the fall when we're talking about rerunning our levy next year. >> Anything down there? I was just gonna make sure you you said it. The Ellie the key point that a lot of people don't know, we won't get levy ef or local effort assistance if we don't pass the levy. So, we definitely need to pass the levy to get all those funds. >> Yep. And we in the past haven't had an issue with passing levy. Knock on wood. Um but there are districts throughout the state that have seen a double levy fail failure and we do not want to even consider that. But it is it is a big big hit to our budget when we're already making reductions. Okay. Expenditures. Um from 2526 we had about $68.5 million in expenditures in the
016budget. Uh 26 27 we're actually seeing a decline of $21,000 reduction in expend budgeted expenditures. Um, so pretty much holding steady from the prior year, mostly due to the fact from our budget reduction process where we reduced about $3 million in expenditures from the prior year um as well as reallocating our resources. So if we had um some state or federal program funding available, we moved some staff around. So we were able to reallocate resources to better maximize our funding resources there. One thing I do want to mention, and we'll talk about it again later, too, is our nutrition program. We are continuing to offer meals at no cost for 26 27 for all students. Um, and I think we've talked about it with you guys before that when we reapplied for C, the program
017that that ensures all students eat at no cost, our high school did not qualify this last year. And so we because of our large carryover in our food service program, we have have elected to supplement that funding gap because we don't get reimburseed for that full meal for those students. Um we're going to supplement that gap with those carryover funds. Um and so we decided to do that again in 2627 and which is about a $300,000 difference there. You have something to add Kevin? Yeah, just that you can't use those funds in the carryover of nutrition. You can't use them for anything else other than nutritional services. So, it's not we could transfer those into some other fund and use it in a different way. So, that's why we chose to use it to support
018our students and keep the high school uh students eating for free. Uh that um that is just a one-year fix for right now. So don't I wouldn't expect uh that to be part of a presentation a year from now, but who knows what will happen between now and then. Um it going back to the old way of qualifying uh families whether to they receive reduced or free meals. Um sounds like something that is easy and doable, but it is very staffheavy. you have to have a lot of people in order to uh get th those forms completed as well as processed and then determining who at during the actual service of breakfast meals it it it becomes very employee related heavy too. So um it's going to challenge the district even if it's just one
019building that it would have to go back to the old model but we have to do what we have to do. we cannot continue to supplement uh that more than just probably next year. >> We actually were required um in 2526 we were required to offer all meals at no cost for at the high school as well even though they didn't qualify because we we actually applied for the status early a year early and that way we could ensure uh that we qualified for four or five four out of five of the buildings for the next four years. So now we'll have three years left. So, the other buildings will were guaranteed that they have C status for the next three years. Um, the high school, like we say, they they we can reapply for
020the high school, but the numbers aren't there. They probably won't um qualify. So, we'll probably have to go back to a free and reduced model for the high school after the 26 27 school year. >> Okay. Um, you guys have seen this chart before. We brought it brought the updated version to you um at the business meeting in May. Um there hasn't been any any updates to this um since then. This is just a summary of the reductions made through the budget reduction process. Um overall we've reduced 27.2 staffing positions and you can see the breakout there. Certificated we reduced 11 positions administrative 2.2 two and classified 14. Um, and then you can also see there the reallocation of resources. We were able to reallocate about $270,000 worth of uh resources to save there. And
021then down below the uh operating costs reductions. The big one there is a um relocating our preschool to the kinder building. We won't be operating the preschool building, the ELC old lint building over here next year. will be closing that down to save some some money there just because of enrollment, right? We had space available in the Kinder building. So, we condensed those classrooms into one building. And then we have a just a handful of miscellaneous reductions on the operating side as well listed there. The reason why that is only 397,000 is because we did a lot of the a lot of the cutting in those areas um in years prior. So, we're getting we're getting to the point where those operating costs um it's just not going to provide a whole lot of savings
022uh anymore. We're down to what we have to have in order to operate um as we should as a school district. But it becomes really really difficult. We've already taken all that lowhanging fruit off of the operating cost. So if we were and more than likely we'll be doing something similar next year, I that would be an area where you're going to need to focus on. Um and even though we we took all that, you know, in the big picture it's only $400,000. Yes, it needed to be done, but really it's the staffing costs that are where the continual reductions are going to have to come from. Yeah, and just to add kind of a note here too, we're and we've talked about this with you guys before, but we're kind of facing two different
023things here too. We have enrollment decline that we have to adjust staffing based on enrollment. And then also because of the gap in funding, we have to reduce our expenditures beyond that to get down to where we're funded for, right? To bring our expenditures in line with our revenue. Um, so it's a double whammy that we've been trying to address with our reductions. And so going forward when we talk about our four-year projection, the continued enrollment decline, we'll see that reduction in staffing again, but then also we'll probably have to make cuts beyond that for closing that funding gap as well. >> Just one more thing on that. You can I I hope that you've seen that from the first time we showed you that. I believe that was back in was it back in
024April the first edition and then we showed you another one and we're at 2.9 what was it 2.936 or something like that. So, um, uh, we'll we'll still we're still evaluating everything as it comes to us, but, uh, obviously you can see that we've continued to take advantage of other savings, whether that be through retirement resignations of employees, movement of employees, uh, or other f things we find to cut. So, I'm not saying that that's going to be the end of it. There may be more in the in the next month or two. Um, but I think we're getting close to where we're we're going to be. That's another thing to rement mention again is we've done it all through attrition to this point. We haven't had to reduce any staffing beyond um if a
025staff member leaves, re-evaluate that, fill it or not fill it. Um but we haven't had to cut staff without a resignation. Okay. Um expenditures, just to look at how that's broken out between program. uh regular instruction makes up about 43% of our expenditures. Other instructional programs, which would be our special education, our flat program, TBIP, uh makes up 15%. Uh CTE about 10%. That's our CTE program. Uh special education 12.1% and then support services, which is our transportation, food service, district office, maintenance, and grounds. All of that falls into that 20% category there. and then by object. So 82.9% of our budget is spent on salaries and benefits. Last year that number was just over 84%. So we're bringing that kind of more into a reasonable area. Our target um would be between like 80
02681% to be staffing um and benefits. So we're making progress towards that, but we're still a little high on that on that side. um supplies makes up 8% and then the rest is purchase services and travel which is minimal at point >> I don't know of any other school district that's under 80% people that's pretty typical so >> and then visual representation of our staffing FTE you can see over the past four years the reduction on the certificated side um the 11 staff that we cut um for next year takes us down to certificated staff and that includes administrative in that number. Um classified FTE, you'll see we had a little increase last year and that's based on budget so it's not necessarily actual but um and then 155 budgeted for next year. And this
027is our operating disclosure. This is an annual requirement that we have to bring to you guys. this is the last year we have to do this. Um but really the overall picture it shows what we're funded um in basic ed for our material supplies and other costs. So in our basic ed program, our AL programs and our district services side district-wide services um program 97 um we were funded 4.6 million through the allocation model and we have budgeted currently uh 5.6 million. So, I mean, this does show we're about $1 million short in what we spend um versus what we're funded for for those operating costs. And that's that would include like our [clears throat] our utilities, our even our curriculum would fall in there. All of that um is included in this in this
028amount here. >> Could I ask a quick question? Can we go back to the change in staffing FTE? Thank you very much. for the classified part of the reason for the large gray area there on the uh 2526 was an increase in some classified staff for special education if I remember correctly and there's a decrease in it this for this next um budget uh annual term is that because we've had students graduate or graduate to less intensive needs or how were we able to lower that number >> we did reduce uh some paris staffing through special ed but the majority of the decrease there was other program >> so we kind of have kept levels up for the special education as a as a certain cohort moves through and >> found other places for uh
029class >> many students coming in require a one-on-one and they have it on their IEP so then we're required to keep it so that's part of it >> yeah okay great >> and that's >> that's why you still see that 1 1 million deficit in special education because of the the high number of classified employees we have to employ. So yeah, this that would include like we've reduced uh two custodial positions. So that would be part of that. Anything uh two uh admin assistant positions uh in the buildings and a variety of paras. So yeah, that's where you see the the definitely the decline there. >> Yep. Any other questions before we move on? Okay, so all that being said, um our overall deficit for next year is at $732,000 um leaving us with 8.9
030in fund balance and which is roughly 13% fund balance percentage. Uh our board policy is at 8% minimum fund balance. Um, a thing to note here, like we talked about earlier with the nutrition program, $300,000 of that deficit is related to the nutrition program because of covering those meals at no cost for the high school. Um, so overall really there was a net reduction of about $430,000 to the unassigned fund balance outside of that nutrition deficit, that one year nutrition deficit. >> Made a lot of progress this year. um really proud of the fact that we were able to make the reductions that we were able to make, especially the staffing, the number of staffing positions without having to riff was really, really good for our financial position. I think this is good reminder that
031the nutrition money that's being utilized, again, we've said it, is in the bank. It's carryover money that's in the bank for that program. So, that overage does include that. So, we really cut it down to $430,000 deficit. So, we're getting there. So, that's a positive thing. >> And just to take a look at this next side is kind of where we've come from the past couple years as far as our budgets and actual deficits for each year. 2425 we had a in the down in the green. The budgeted deficit was 1.3 million. We actually ended up at 1.1 deficit at the end of the year with the reductions we were able to make throughout the year. Um and then in 2526 we've revised this to more actual but we project we will end at the
032end of this year in the green we had budgeted $1.2 million deficit but we anticipated to be more towards the $945,000 deficit with some reductions that we made and the additional enrollment that we've had throughout the year because we're 15 over projection. Um, so we we went from the 1.1 deficit to $945,000 deficit and now we project $732 deficit this next year. So you can kind of see how we attempted to close that gap and um lighten the impact on our fund balanced. >> Yeah. And if you just take that 732 and reminder of that new 300,000 in nutrition, you can see that it's pretty substantial what we've been able to do over the last couple years. Um, if that goes down to, you know, 432, I know it doesn't feel that way when you
033see some of the other numbers. It feel like, God, we just cut them $3 million and we're still having to borrow from the savings account. And that that's the reality of the place we're in with declining enrollment and and inflation. It feels like you just you cut cut and you still you're still having to do um do what we've been doing. But I this is an area where I at least for your benefit as a board is that it was directed for us to start making the making the necessary cuts so that we keep the district in a good financial position and not become so dependent on the fund balance. This at least is some evidence that we've been able to do that. Uh Chris and I and staff have hoped that that number would
034be less than well 732 or 432, whatever you're I mean we were hoping it could be 200,000. We were actually worried at one time it was going to be uh 900 or a million and that wasn't going to get us where we wanted to be. So, I I we want it to be we want it to be more, but you know, it is what it is. And at least we've shown some progress of of closing that gap and not being um not uh being so dependent on the fund balance, which we know if we continue to be dependent on that, the fund balance is going to go away. It's not going to be there and we're going to violate your the policy of [clears throat] >> Yep. Okay. Now looking forward uh we as part
035of the budget we do have to put together a four-year budget projection looking beyond just next year for another three years. Um and so in that projection we have some assumptions to make um because I mean we have our crystal ball but it's only as good as what we we hope it will be right or foresee it to be. But um these are the the key factors that we put into our four-year projection. um en enrollment decline. We do see that continuing obviously as those big classes graduate and we have smaller kinder classes coming in. Um we we foresee another 600 or 600 God uh student decline um through the 29 uh 2030 school year and at about $10,000 a student. You can do the math there on what that would um um decrease in
036our revenues there. We do project that we will approve our next four-year levy um at the same amount as it has been before. That's what we put in this four-year forecast. State revenues increase between 1 and 2% obviously less the enrollment decline um removed from that side. Federal revenues we kept the same. Um that's not impacted by state IPD. It's really based on federal resources and decisions made at that level. So we kept that that consistent there. Expenditures, salary and benefits we increase 3.5% based on contracts based on IPD um from the state um on that side for our state funded programs. And then reduction in staffing as a response to enrollment decline. So, we we estimated uh staffing declines for each year. Obviously, that'll be based on actuals um and where we're at at
037the time with our our salary costs. Mox we inflated by 2%. So, those operating costs we inflated by 2%. And this is our budgeted projection of enrollment. Um in year two which is 2728 we anticipate a decline of 75 students 80 28 29 a decline of 68 students and then 2930 um a dip of 119 students. So it's it's not slowing down those those bigger classes are going to be gone. So um we foresee that's where we get the 262 decline is from those three three years there. And we did use the same model that we used to project enrollment for the the years out. So we're using a survival from one grade to the next projection. So that's what we used on those as well. And then on the staffing side there at the
038bottom, we just project a decline in staffing of 10 FTE for both certificated and classified from year to year. Um and of course that's just an estimate at this point just to show a response to that decline in enrollment. So with those factors in um this is actually the revenues and expenditures without any reductions in expenditure. Um so without making any reductions this is where our fund balance um or our overall net position would change for those years. So in 2728 that second year we would dip in we'd be over $2.8 8 million in year three $4.6 million and in year four $7 million in the red. >> So again, this is based on just the projections and if we don't make any adjustments that we just kind of go about our business and just
039don't don't do anything and don't probably prepare for what reality is then we'd be facing that. So this is the worst case scenario. uh this is what we have to do. This is what these guys are are obviously very good at is is being very very conservative not inflating artificially inflating numbers to make the numbers look good. It's exactly opposite of that. It's it's providing the numbers in the worst case scenario so that you see if the district was to just not not look at all the other variables and factors that are around them and just hope that things are going to work out. um we would be in a very difficult situation and that is not anything unusual over the last two to three years. We've tried to show you both cases and this
040is the worst case scenario of not doing anything in response to declining enrollment and inflation. Y >> one other thing I'll note here too, you'll see at the bottom um for the other financing uses in 2728. We do project out that we'll start doing those capital project transfers of $100,000 each year to help kind of fund that account because we use capital projects to do those big um facility repairs like striping our parking lots, HVAC work, all of that stuff. So, um, we haven't made those contributions for several years now. And so, having that fund kind of dip down, we're going to have to start reinvesting some funds into there to make sure our facilities are up. >> We know one very big expenditure that's going to come up in the next three years and
041the roof on this building's going to have to be replaced or a something done to the roof to help it. We've got some leaks throughout the building already. >> Yeah. And um those repairs, those expenses aren't funded from the state. That's really part of our MSOC allocation that we have to set aside or some other funding source that we have to set aside for that. >> And Stephanie, on this in this table here, where is that indicated >> in Yeah, >> it's on that right above the yellow, you'll see in those last three years, >> their financing uses. Is that what it is? Okay, I saw that. >> Does those funds get transferred out into the capital projects fund? Sure. Okay. So, overall picture of our fund balance if no reductions were made. So, taking
042that same slide from before, projecting that out into our fund balance amount, you'll see by year four, we're in the whole $5.5 million. Um, obviously, we're not going to let that happen, but like Kevin said, this is the worst case scenario where this would lead us if we don't respond to this. and the same historical look at that same information. Now, um if we were to make additional reductions, this chart shows that we starting in 2728 would reduce another $2.7 million. Um and again, remember we're responding to both enrollment decline and closing the gap. Um at the very bottom, you'll see the enrollment decline projections, the 75, 68, and 119. So those factor into these reductions as well. It doesn't make up the entire reduction amount. You figure $10,000 per kid, right? But it's also
043closing that gap on the expenditures to revenue side. So 2.7 million we project in additional reductions for 2728 to bring us down to about 8.8 million in our fund balance or 12.92%. uh 28 29 and we're going to so another thing these are cumulative cuts so just like I think we projected in the past 2.7 in the first year the second year includes that 2.7 plus some so a million50 in that third year there to get us to that 3750 so it's not like we're cutting another $3.7 million that year it's a cumulative total um 2829 that'll get us down to about $8 million in fund balance or 11.38%. And year 4 and 2930 um total cuts of 4.95 million which is a additional 1.2 in that last year um takes us down to 5.8
044million or just above our minimum fund balance policy of 8%. [clears throat] >> One thing um we can't bank on is the legislature to bail us out if you will. Um, so we plan for the worst case scenario and get us to where we need to be, but you know, we're hopeful that it is a priority of the state to take a look at the way that we're funded. It it makes no sense just using teachers as an example. They fund us on an average model. And right now, we're an $18,000 gap between the average and our um our average teacher pay because we have a more senior staff. So, you know, you think about that every year. And and it's not just teachers, it's all the way across classified employees, administrative, it's all underfunded.
045They need to look at um a different model. They need to go back for teachers back to the way they used to do it with a staff mix and they funded us based on where everybody fell on the salary schedule, but they don't do that right now. But we can't bank on that. We can't bank on them bailing us out. So, we're not planning that we're getting bailed out. No, >> we're not planning on that at all. And this the economic uh situation within our state is not in the best case. And we we realize that we don't expect anything. Uh we always prepare for the worst. Uh and we I I expect there to be cuts next year uh from the legislature instead of uh increased funding. I do expect cuts at some place.
046I don't know where they're going to come from. Uh they have the ability, they have the responsibility um to fund basic education. Now, there's a lot of things that we depend on that are not part of basic education and they can uh decide to fund those. The biggest one would be levy equalization. That's the that is not part of basic education um because it requires a levy to be passed and levies are decisions made at the local level, not at the state level. So, that's one fear. Um my other one is for our youngest uh learners uh the transitional kindergarten program. um is not part of basic education and although we only have one classroom of those uh that's a huge benefit for those kids that are in that class um and that that is
047not part of basic education and that could be eliminated amongst a lot of other things. So we we don't we don't plan for any additional revenue uh from the state and we don't plan from any additional revenue from the feds and we don't plan for any additional revenue as you heard Steph say all of all of our projections are based on not jacking the levy up either. It's based on where we are right now the rate that we have for our levy. So all this is done in the most conservative way that we possibly can uh and not trying to artificially inflate numbers to make things look better uh than they really are. >> So um the question that I've got is we show a a de a declining enrollment right 262 students. >> Yep.
048>> Why do we not see um a reduction in the budget during that same time? Because in my mind we're los we're in my mind we're losing 2.25 million or sorry 2.62 million >> y >> per stu or for that drop in students. Why are we not seeing that drop in the revenues >> that that is factored in there that so we did adjust the revenue side. So the revenues up there include that enrollment decline. We just didn't include any expenditure adjustments in that first chunk. So, if I go back a couple slides, we didn't include any expenditure reductions yet. These ones include that expenditure reduction side. Does that make sense? Does that answer your question? >> Well, I think you >> and that So, there's a couple factors there. We had the enrollment decline
049that we removed the $10,000 per kid, but we also had IPD coming in. So, we have IPD from the state on the ones that on the staff that were funded for and the FTE based on student enrollment. So, that uh for these two three years, I mean, it's anywhere from 2.7% to 2.4% year four, what you project in year four, 2.5% I think. Um, so we have those IPD increases there, but then we also have the cut in enrollment. So that's probably why you don't see >> Okay. And that's kind of where I was thinking that the revenues would stay about the same. >> Yeah. >> Um, but if we were to have a decline in revenues, then that would also increase our percentage in the fund balance. Correct. >> Yep. Okay. Um, and then
050just a visual. Um, we always throw this in there to kind of look at how our fund balance makeup is. Um, the yellow chunks down there is our minimum fund balance. So, of our total fund balance, the yellow is our minimum fund balance, the 8%. The blue is our reserve fund balance. So, anything like our carryover revenues, our inventory, the unspendables is the blue there. And then gray is our unassigned. So, as you see in those last three years where we take a dip back down to our pretty much our 8% minimum fund balance, um you'll see that those un unassigned fund balance goes away. Is all it's all going to be part of minimum fund balance. So, strategies moving forward, I mean, these are the same that we've we've had for the past couple
051years as we're looking at our enrollment decline and responding to our our funding shortfalls. We're going to evaluate, like Kevin said, as positions come available. Are we going to fill it? Are we going to not? We're going to make that as a decisions as a um district responding to enrollment. If we're losing kids, we got to respond by cutting staff, right? Because we're funding funding our staff or funding our staffing our schools based on enrollment. [laughter] Um, and then just we're seeing like facility maintenance, like we're talking about putting $100,000 into capital projects each year, making sure that we have the ability to continue to make sure our our facilities are are wellmaintained there as well. Anything to add? >> All right. So, that was general fund. Do you guys have any other questions before
052we move on to our other operating funds? Yeah, I just had a couple here. I was kind of keeping track of um when you're talking about the the food services, how much would it cost um if the kids had to pay for a meal or the families had to pay for a meal? >> Yeah, >> it's I don't have it. Um but it it's usually the reimburseable cost. So, it's like breakfast is usually cheaper than lunch, >> right? I I would think breakfast is like a couple bucks and then lunch is $3, I think. >> Okay. >> We just haven't had to. >> Yeah. I I was just and >> we're looking at making a difference so they have to pay for something whether we partially, you know, because I'm assuming there'll be step downs
053with that if we have to do that. >> Yeah. Because it's part of the free reduced system again. So students would have to fill out those or parents would have to fill out those free reduced applications and so their status would be their income response there. Um, so if it's a reduced price, it would be less, maybe a dollar, $150. Um, and then full price is $2 to $3, I believe. Yeah. >> Okay. >> But have your free students too that it would be waved completely. >> Right. I was just wondering how much of a a cost burden it would be to the families themselves if this if it sounds like when, not really if it gets implemented. >> Yeah. >> Um, the other question I had was you talked about um cutting preK. What
054what savings would there be from that? >> It was uh TK >> TK, transitional kindergarten, which is the the tweener kids between preschool and kindergarten. Um for us, we're fully funded on it right now. The state has decided to fund it. Uh it is what do we get? >> 2020 >> $220,000 to fund that directly from the state and and we're it's it funds our entire program. We don't have to add to it. Um but it's capped right now. So, let's just say that we wanted to add another class to it. That would all be on us. If it's eliminated, um our hope is that those kids could go into our ECAP preschool program and so there'd still be an opportunity for them, but that would be dependent on having more ECAP spots available to
055us. >> Is there [clears throat] has it? Sorry. Go ahead. >> If it's eliminated, um obviously we'd have to reduce the staffing that goes along with that program. >> Yeah. Yeah. And there's one certified staff that goes along with that with what two other paras or one parah. Yeah. And all those are all those are paid for within that the money we get for TK. And if it's eliminated by the state then then >> the other downside if it's eliminated is those students and we have 19 right now TK students. Those students don't flow into our system and most of them do. So then we lo you know that's just less students. I was asked the other day if we're looking at cutting the preschool program. That's not going to happen because we don't fund
056pres Well, I shouldn't say I won't be here, so it might, but it it wouldn't it wouldn't be in our best interest, at least from my perspective, because we're fully funded for our prek program through ECAP and then our tuition students are paid by the parents. So, um it and those students funnel into our system, a lot of them. So, it would be kind of one of those double whamies if we if we eliminated it. But anyway, we I had a parent ask me that they were worried that we were going to cut our prek program. They really like it. So, >> have we ever run up against uh the limit on students we could take for that >> or TK or for preschool? >> Yeah. Well, both. >> Both. Uh yeah, we actually have
057I think five or six students on a waiting list for TK placement. Um and we have off and on had uh students and families that we've not been able to support because we don't have the we don't have additional space. >> Yeah. They max they give us a max on our seats for ECAP. So once we hit that number then the other kids go on a waiting list until an opening comes. >> The same with TK. We've been like Kevin said capped by the state through the changes in legislature the past couple years um with the reduction in that program. They've capped us. So they're not ex letting us expand beyond that state funded. >> And there have been times where um seats in um PK have been come available uh and then we'll we'll
058ask to have those spots because we have a waiting list and we could place those kids. Sometimes they reallocate from other areas, other ECAP programs and we're able to take that um those spots. That doesn't happen very often, but we're always hoping. um and then been following um ECAP and their their kind of their policies and procedures with regards to um allowing more spots available. And we're always hopeful that we have because we have room most of the time we have staff in order to do it. We just we have more students who um more families who want that than we can offer to them right now. >> And when Chris, when you said they don't come into our system, are they from out of district? Well, what I meant by that is normally the
059kids that are in preschool will come into our kinder um they could and they're most of them are resident students, but we do get some non-residents, but they're most residents and we that's how we they're with us then and that and then they they roll into kindergarten. So, we we don't want to decrease our kinder numbers at all. >> Right. Okay. Thank you. Yeah. >> Okay. We'll move on to debt service fund. Um next year budgeted revenues is 4.2 million and those are our um property taxes coming in. We collect those through property taxes. Um and we our expenditure side there is our principal and interest on our outstanding bonds. Um so ending fund balance there is 1.5 million. Um, and just to kind of recap, uh, we like to keep about a million dollars
060in our debt service fund. We don't want to bank extra money. I mean, we're not banking money there, but everything that comes into that is spent on principal interest for our outstanding debt. Um, and then at the end, if at the end, expiration of that debt, if there's anything left, that gets offset by the amount levied to our taxpayers. >> These are bond funds we're talking about, not levies. >> Yep. All I say levy because >> Oh, you're good. Y still a levy. >> It's levied, but it's a bond levy. Yep. Um and so we have two outstanding bonds. Um first one from 2018 will be paid off in 2042. We have $37 million left on that bond. And then 2022, which is our refinance bond, will be paid off in 2036. We have 17.5
061million left on that one for a total of 54.5 million in outstanding debt. And then sorry just start sorry Steph there's a slide right there that that tells you that um we're not going to be going out to our voters and asking for uh more funding for schools. All right that's the slide that tells you that we're if we have $54 million in debt um and we [clears throat] can only go to a certain capacity and so that's just not going to happen. So, anybody that thinks that out there that we're we're going and going going to go build a new high school or remodel the high school, um that's not going to happen uh anytime soon. Uh more than likely, if it did, it would be when those 22 bonds are paid off in
0622036. And then we always provide where we're at with our tax collection rates. Um, we have the assessed value for 2026 located in there with it, which is an increase of 7.4% from the year before. So, our projected levy rate for that year is $163. Uh, which is still below the $165 that we communicated to taxpayers when we did the four-year levy proposal. Um, for our bond rate, that's down to $1.17 um for 2026 from 123. So total tax rates being collected in 2026 is at $2.79 which when you look throughout the valley that's about mid-range if if not on the lower lower end >> lower bottom third but top of the third. >> Yep. Okay. So capital projects capital projects fund uh revenues projected at $1.2 million. Most of that's going to be our
063state match coming in from our current projects going on. Expenditures are going to be ramping up for those two projects for the turf field and the CTE edition. So we're budgeting 4 point about $4.6 million in expenditures there leaving us with a fund balance of $1.3 million next year. So both both of those projects are scheduled to be done obviously the turf at the end of this year but the CTE edition before the end of the next fiscal year 2627 but there'll still be some expenses normally that fall into the following year after that. So we do have about $600,000 held back for the 2728. >> Yep. And that's on this guy here. We make that note. Um and this is just breaking out the the plan projects. In addition to those two projects, we
064have parking lot striping that we do. And that's where that hund $100,000 um transfer comes in is to cover those costs for like parking lot striping and other projects that come up like the roofing or HVAC or any big repairs. >> Yep. And that's what we budget $200,000 a year in just capacity for those projects should they come up. So we have the ability to do that. And then our last two funds is >> Steph, can you go back there and and give the board what or Chris a projection of when what what will be left over in the capital projects fund once the projects are completed? What's going to be left there? Because we've always talked about having something left there, not exhausting that account. Chris, what are you what are you anticipating? >>
065Jen, if you go back one slide to that one. So, what we're looking at is Oh, >> you're Oh, you had it. That's right. Okay. Um, so you'll see here at the bottom projected ending fund balance at the end of 2627 at just under 1.4 million. 1.4 [clears throat] million. So budgeting $600,000 of the um remaining cost in the 2728 year. We're probably going to land right in the $700,000 range when we're done with all the projects, which is still a a decent place to be. So we have some money there built up for those unforeseen things that come up. I know we have to crack do the crack seal and everything on the high school a lot in the next couple years and just different different things. So I think we'll be in good
066shape when we're there. >> Yeah. And that's all also very very conservative. We don't want to like overestimate or or underestimate in this case. It's just a conservative approach. Um knowing that the projects uh one project is is just it's starting. But when I when I remind you that uh like how the projects are going and I use on time and on budget um what I mean by on budget is that we we're not seeing the projects go above what we anticipated. So we have to dig further in to the capital projects fund. That's also when I say on budget is the budget in those projects has contingency funds in it for the unknown in multiple different areas. And if we continue keep them on budget and not have to even get into the contingency
067funds, that's excess dollars that can be backed into the capital projects fund. But we can't bank on that because the projects aren't done yet. So once those projects get done, even the the turf field project, it has contingency in there as well. And if we and when that project is done you and we didn't use contingency, those dollars would then go back into the capital projects. Not as much on the turf field, but in the CTE project, there's some there's some pretty good amounts of contingencies, just not knowing exactly uh what it uh the project's going to provide and we want to be able to complete the project. So, there has to be some contingency to support that. But hopefully if I keep providing the updates where they're on time and on budget, that that's
068a good thing for us. It means we've not had to get deep into the contingency funds uh in order to support the projects or the worst case scenario is that it exhausts the contingency fund because of something unknown that takes place and now we're having to make decisions of pulling money out of capital projects that we'd never expected. um the the budget uh didn't didn't cover what was needed, but we haven't seen that. And that's that's uh Yeah, exactly. That's also um why we uh we so feel so good about our current architect and engineering u partnership with Knack is that they've always provided us projects that um once the budget's established, it's been able to cover it. So, we're hopeful that that will continue. All right. So, the last two funds here, Associated Student
069Body, um projected revenues here of 709,000 and expenditures of 677,000. This again is the the fund that the student group, student clubs operate out of um at our elementaryaries and high school and middle school. Um and they they budget they do their trips, they do ASB activities, all of that stuff flows through here. So um usually budget on the high end for expenditures just so they have the capacity to do what they want to do with their clubs and and activities there. Transportation vehicle fund. This is the fund that we purchase on and replace our school buses out of. We get depreciation from the state each year for those buses that are on depreciation schedule still um of $270,000 uh which includes some investment interest there too. But that's our budgeted revenues. Expenditures. We budgeted
070$477,000 in expenditures. We currently have one bus on order and was there we're planning to buy >> Yeah, we have another that 477 um we'll pay for the bus that's on order that we'll take possession of next school year and that leaves about 250,000 260,000 in expenditure capacity if we buy a second bus next year. >> Ending projected fund balance there is 137,000. Um, which I mean the goal of that fund is to make sure our fleet is is new and safe and we're not running really old buses out there on the road. So, and then also with the budget, we bring to you guys each year the fee proposed fee schedules. These are just some highlights. Really, there's no increases across the board um other than increasing minimum wage for gain management and then
071increasing our classified sub rates to what's based on the salary current salary schedules for for next year. Um tuition, preschool, there's no increases there. Um those prices are listed up there. Um, and then overall there's really no changes, but you'll get the full the full fee schedules with the the budget documents um at the end of the month. And then budget resources once the budget is adopted. Um, all of these resources, the full budget, four-year forecast, presentation, and the citizens guide will be posted to the district website as well. We do have budget information out on our website on the business services website um for this current school year as well. We have the current budget reduction plan out there. We have our FAQ that we put together on fiscal um items and we will
072put our flyer for the budget reductions once it's done. We'll have that done in the next few days. We'll bring that back to you as well at the next meeting. There's our pretty faces. Do you guys have any questions? [laughter] >> I don't. It is. It doesn't look pretty, but it is what it is. And we've made significant efforts to to make it look better than it could have been. If we would have done nothing for the last three years, uh it would not be this [clears throat] more than likely [laughter] it would be in a very very difficult situation. I mean, and I've mentioned this before, districts that get themselves really into a lot of trouble uh are districts that are have a declining enrollment and they're not responding to the decline. They continue
073to maintain their same staffing levels and then they're in a real big bad or a bad position because they don't take care of it. I think that CILA over the years um we've done a good job staying up on that when we have a decline in enrollment. We adjust our staffing every year to what our enrollment's projecting and that's really helped us. We maximized on COVID relief dollars. We um we used that money I think in a in a good way. We maintained programs that were um needed for kids and positions with mental health counselors and different things. We used our COVID money for that, but we had a plan to continue paying for those things that came out of COVID relief after that money was gone. a lot of districts kept staff on that
074were funded by COVID and then they were like, "Okay, how are we gonna pay for them now?" So, I think um I know I'm leaving, but I feel like we're in a good spot. I know it's a they're tough times or tough conversations with principles when they have to lose positions in their buildings, although it's really hard to argue when you have still have class sizes that are are uh good levels in the classrooms. Um, so and we do we're not putting our uh we're not making uh too deep a cuts so that class sizes are unbearable. So I think that we are we're getting there. This year was huge to be able to make the reductions that we did and I think uh thoughtful process next year and the year after and the year
075after just as long as it's needed that we continue to to follow that um process I think we'll be in good shape. >> All right. So in summary, what you had today was uh what is an anticipation of what's going to come to you in two weeks at the business meeting. All right? Is where the budget hearing is necessary. Um the budget itself comes to you for action. Um and the reason why it's coming to you in June and not July, it was already been stated and all those things. And so what this does is gives you um we'll still do some sort of presentation at that meeting as part of the hearing which we're required to do, but this gave you a lot more information ahead of time. And hopefully that's has been a
076benefit to you and that our recommendation is that the budget be approved uh at that meeting for the reasons for we've given you the transition uh Chris leaving as part of that um transition to accumulative and and anything else the the quicker that we can get that done the better that we can continue to plan for the for next year. So but again that that is your decision as a board. Um, if you have any questions, this is a lot of information in a 7:00 to 8:05 meeting. A lot of information. Um, if you have any questions, contact any one of us and and let us be able to answer that before you get to uh the next meeting. But we did make progress and I hope you realize that. I hope you see that.
077It's hard to see sometimes. I look at it like Derek looked at it like like how can it still be the same and we just and andor we cut almost $3 million and it doesn't feel like we've cut anything. We don't see the evidence of it. But the reality is there has been some and you hopefully you'll be able to see that and uh going down to it shows 732 but to me I always look at it as 432. >> All right. Any uh additional questions or comments? >> Well, I this is really just kind of general with enrollment. So, enrollment's down across the country and birth rates are are down and so that's probably not something that's going to change, but there are a lot of students in this valley and are we doing
078anything to encourage out of district students to join us here? I mean, we have a I mean, we have there's a lot going on in SILA. a lot that we could really, you know, show off. And I'm just kind of wondering, are we are we are we advertising our greatness? [laughter] >> So, um, there's kind of some unwritten rules that you do is you don't go out and try to poach others, but you do build your programs up and and if if people want to take advantage of that, you give them the opportunity. Um, >> yeah. So my question is, are we getting that information out there? I'm not saying let's hang banners around. >> Yeah. [laughter] Yeah. Yeah. Um we do have most of the time there it's at the middle school and high
079school uh that you get those transfers in, transfers out, and we'll still get our transfers in and we'll still have students transfer out. Um hopefully those uh are equal or greater to us, but we only the problem is at at the high school especially, we don't have the capacity there cuz that's where all the large classes are. And at the middle school somewhat similar, not as much as the high school. But yeah, we'll we're not going to turn anybody away. And we've told the principles that like, hey, don't don't take students just to take them. Make sure you do your due diligence and that they're going to add to add to our schools. instead of take away all the resources that are needed if they or bring those things with them. But we're not going
080to turn students away for sure. And and we do need to do a um a better job of promoting the things outside of our district that are going well at the middle high schools where those primarily those out of district transfers are coming in and out. But I mean we have a great kinder program, beautiful new building. Like join us like get it. we if we can get these students in early might stick around and those are the smaller class sizes so we're not cramming them into the middle school and the high school. >> So here's one I I hate to even say this but I'm going to is that we're actually at this time last year in our kindergarten enrollment process. I think we are like 10 12 students above where we were last
081year in enrollment. So I I I don't want to say too much about that because who knows what the reasoning is behind that, but it is a good indication going in uh that we see 12 and it's funny you talked just about 12 kids, but 12 is better than than being below where we were. Now we're still being very conservative. Actually, we've just um we've just not we have a kindergarten teaching position that's open. Okay. and we're not going to open it outside. We're going to wait until we see the whites of their eyes at the beginning of the year and know that we if we have to respond because of a an increased in kindergarten enrollment, we can pretty much hire somebody. We had 98 candidates for a fifth grade job. The candidates are
082out there. That tells you that tells you that nobody's really hiring. They're all doing similar things to us, but that we will find a candidate. So, we've held on putting that out there um at the kindergarten just to see that if enrollment does come back a little bit. But yeah, back to your original question, Sarah. Yeah, we're open. We'll communicate. We're open and and uh if there's opportunities for us to promote and encourage uh those to take a look at our programs, we will definitely do that. >> Question. Hopefully, it doesn't come to this, but it's looking like you will eventually have to riff. Right. So if that's I mean if we get to that point like what districts are we have that 8% policy other districts have depleted that if and when we get
083to that point what is our district's policy on riffing? And I guess like it it's two-part question. So we're talking about you know we have a senior staff and then IPD gap. So, it feels like if we were going to riff like all the young people that aren't getting paid as more, it's going to exacerbate that gap. Um, so how do we I guess evaluate our staff and have real number like real quantitative and qualitative evaluations of our staff to determine riffing. Well, I'll I'll I'll start just by saying that we're dictated by uh contract, the teachers contract and the different contracts, all all of our contracts with different classifications to go through a specific process when we have to reduce force. So, and that for all the groups is going from the bottom of
084the seniority list up. So oftent times, let's say you have a psychologist at the very bottom of the list. We would have to riff the psychologist all, you know, up as far as we need to go and probably more. Mo most districts do more because you're going to have to bring that psychologist back because we have to have a psych, you know, that's just an example. So, but you have to go from the bottom up. So, you are you are reducing your your less experienced people, which is less money that they're making. So >> which means you have to reduce more of them. >> Yeah. >> It's all collectively bargain. >> Yes, it is. Yeah. >> We still we'll still reduce through attrition as much as we can but only do that so far. >>
085Okay. >> Based on >> Yeah. We as we look at our staff um and we do the we look at our certified staff uh we look at the seniority list. You know, you do there are a number of staff across the district that have not retired this year, but if you look at where they are, more than likely they are going to be at a point where they're going to retire. Um, and those are spread throughout the the the building and that that that may be um able to to cover some of the the need for next year and the year after. But then after that, then it's then you're starting to see the middle uh experience level staff um not ready and eligible to retire. Now, there's good and bad to that. it means
086that your higher priced uh teachers per se because their experience level is up are not in there and so you're going to be paying less. Uh but I'm not sure that's going to offset the whole the whole problem. So, but if you look at our staff, we do have uh we do have experienced staff and not just in teach I did mention teachers, but we do have them in all the a lot of different areas as well. And so you're probably going to see some retirement um um to help us with the attrition of reduction of of staff. Challenges are going to be is where are those staff at and what do they actually teach and how do you rearrange them. So I riff is one area that we are worried about because it's probably
087going to have to happen. It may only it may have to happen in one employee group and not the entire group of employees. Um the other thing we worried about is is having to move uh people un you know without voluntary. So unvoluntary transfer is a term that we use that we have to move people around because of needs in other buildings and uh that that sometimes uh is not wellreceived by the employees that are involved. So, having gone through a rift myself, um that's how I ended up in CILA 15 years ago was the state cut the budget and being a counselor at Green Hill. There was I was 21st on that, you know, I had 20 counselors underneath me and 21 came over from Maple Lane. So, I ended up, you know, two
088hours away from my house driving back and forth. So, it's not pleasant to go through something like that. Um, and so I feel for those people when the cuts are going to come, but it also created what you were talking about, Joe, they had to cut more because more senior people and I had 10 years then all of a sudden I was one of the the lowest on the seniority list. So there was a lot more people that had to go like what you were talking about. >> And it gets very ugly with riffs. It does. >> Something that takes a district a long time to recover from. We're fortunate. I'll say in my 26 years, we've never had to riff. Hope it never happens here. Just hope that the attrition happens to get to
089the number, but we'll have to see. >> Great. Uh, any other comments or questions? I I still have hope for us to bring it in line without getting there. Uh, well, whether you know, whatever reason that would be, whether it's through attrition or additional funding or revenues get better. Um but I'm very deeply appreciative of the work that's been done by our district both going back you know uh to building a healthy fund balance um many years ago and over the course of many years uh to be able to kind of um uh give us a bit of a softer landing here um and then for the current year too especially Stephanie Chris and Kevin and the work that you've done to to get us um closer to closing that gap. So really really appreciate
090all that work. Uh, I would ask the student board representatives if they have any questions, but [laughter] >> yeah, that's [laughter] the question. Claire closer to that% Yeah, for sure. >> For sure. Yeah. You don't want to have too much in the reserve and um >> but we don't have double what we need. Just want to make that like still 5%. There are districts that are >> I I think the other thing that people need to consider besides just the fund balance is that there I have a high degree of confidence just like Dan said. I really appreciate the work that you've done. Um, a lot of school districts aren't in the same We're all in the same position as far as decreases and declines, deficits, but not in the same position as far as
091how well you guys have managed the budget. And so, I have a high degree of confidence in what you're doing. I appreciate what you're doing. Wish more people would see this part of it. Um, it's not easy. your job isn't easy and the decisions that you're making are very difficult, but um I really appreciate just like Dan said, the work that you're doing and um I think the public needs to know that. >> Thank you. >> Yep. Thank you. Y >> I'm not so happy with the state. Um the constitution says that we need to provide um ample provision, right? And I think they're spending money in other places and education should be a priority. >> Yeah. And that is the note I had is man if if we were well prepared for this and
092I know other school districts were as well eventually it gets to a point where even wellprepared school districts are going to bump up against this as we are beginning to um so uh the state uh will hopefully see >> yeah it's almost mccclary 2.0 you know, is on the horizon where uh you know, the Seattle School District and and their tax base is able to uh increase through the levy and and not feel the impact as other school districts. And so we are my opinion, we're headed there again. It's just going to be 2.0. >> Feels that way, too. Yeah. Yeah. >> All right. Well, thank you very much uh for your presentation. We have no need for an executive session, I believe. So any comments or questions from the board? Go to the order.
093All right, we will adjourn.