001Okay. So, we will go ahead and call this meeting to order on Monday, August 18th at 6:05 with roll call. >> Williams >> here. >> Ben Riswick >> here. Mankey. >> Young >> here. >> Let's go. K >> here. >> Let's go. Me. >> Yep. >> And Hower >> here. Thank you. Okay, we'll go ahead and get started. Um, this is a work session to chat with Sandber. >> Tim Oswald Sandler >> and we're gonna just do a lot of discussing. So, come on up. >> I think you have my presentation in front of you. So, um, little bit of background, just kind of some history stuff and then some numbers. Um, my preference would be if I say something you want to talk about that, let's talk about it. We'll leave it to the
002end. Um, chances are if you're thinking it, somebody else's as well. So, um, property valuation, um, we've had we've had a nice run of of property value growth in the community. Um, remember actual and taxable. The difference being that that roll back, you and I, as homeowners, pay taxes on about 47% of the assessed value of our homes. And that varies from year to year, and it will change again for the next school budget year. by 27. Um, and so your taxable value growth is going to be a little lower than your than the actual value because of the roll back factor. And the roll back is statewide. Everybody gets the same ratio and it's it's a statewide calculation. U tax rate history. Um, you you've got a long history of u very stable levy
003rates on the right side. a little bit more going on on the left side, you know, moving dollars from here to there. You brought the peeppel on years ago from zero to a $134 and you did that in some stair steps. Um, you know, you've had uh two major capital projects, the new high school and the elementary projects voter approved. Each of those at the time took the levies up to 405. And then um that's the fourth column from the right. You can kind of see how that's trended downward as your property values have gotten higher. Your levy rates have come down on debt service. Um and I would anticipate that that trend would continue subject to this discussion a little bit. um peple and save dollars kind of available. Um if you remember the
004plea is a tax rate. It's a $167 total. Um and the uh save is an enrollment driven and it's a statewide calc. We're still waiting for the FY26 estimate should be due really any time. Um and so the um revenue there is is a reasoned guess shall we call it 4 4.7 million. You do have debt payments against the save uh few a few years remaining on the remodel of the middle school and then um one more year after that for the the save contribution you put into the elementary projects. Um so the save bonds pay off in full in FY31. Um and and you have dollars left over afterward just over 5 million. We think that's take that's an important discussion because you know in a vacuum you could say to us how much
005could we borrow and we could calculate how much you could borrow and it would be a lot of money. But in a vacuum isn't how we live our lives and you have facilities that you need to maintain from year to year. you have capital to purchase and buses. Well, not buses and technology and um other items that just kind of consume cash. And so the answer to the question, how much can you borrow needs to start with how much do we need to maintain our district's ongoing operations and then what's left? So, this chart does not show you what's left, by the way. We'll get to that. So, um, doing okay. >> So, the statutory debt limit, I just want to prove out it's not a problem. You have $172 million debt limit. You have
00683 million of outstanding debt at this time. So, a debt cushion of 88 million. Um, plenty for what you're talking about. Um all right. So let's u so let's move on then. So can we borrow against the ple? Yes. Um so when when you voted the ple um the statute allows the board to uh to take action and borrow against the uh and and you can borrow against the the only the voter approved portion. you cannot borrow against the uh board approved for 33 cents because that that can only be approved annually by that sitting board. So there's no way to bind to future board under the law. Um you have no debt outstanding payable from the ple at this time. um you know you any debt what we just visited any debt you would
007take into consideration would need to not leave you strapped for you know ongoing operational type items. Um Steve and I have worked through some cash flows and we'll get to those numbers, but um you do have some ongoing items and a a nice 10-year plan by the way. And so when we take that into consideration, we come up with you could borrow about 7 million against the PPE and still maintain your operations on and your 10-year plan. So that's uh not all of the Pebble, it's just some of it. um to remind you there's no no election requirement for a peple borrowing and there's no public hearing requirement. The board quite literally if you scheduled a meeting for tomorrow evening at 700 p.m. and could somehow give 24 hours notice between now uh you could
008sell notes. Now none of us can move that fast but but you could do it. So, um sales tax um the uh we believe that the district has not voted the um revenue purpose statement extension. So, let me back up a step. When the tax was first imposed, well, first made available, uh it was originally county by county. Um and uh when Poke first voted the tax, um all of the revenues from Poke County stayed and were distributed to Poke County schools. Uh that changed gosh, 2008, I think it changed to a statewide calculation. And um as part of that change, school districts had to vote a revenue purpose statement. It's what you you tell the public, here's what we intend to do with the money. Um and um it's just terribly broad. I mean,
009it's basically says whatever the law allows. It's a little more elegant than that, but that's basically it. Um and then when the tax was extended the first time, um that revenue purpose statement remained valid. This last time the legislature extended the tax, they rescended all of the revenue purpose statements effective at as of January 1st, 2031. And they required all the schools to go vote a new revenue purpose statement. So, uh we think you've not yet done that. And so it would be wise to get that on the ballot and get the voter approval um at your earliest possible convenience. We're not suggesting you change any of the wording. You'd still use the same, you know, statute says we can do X, Y, and Z, whatever the law allows. But but it's important because if
010you don't, the way that law is written originally, it's true today. If you don't use the sales tax per revenue purpose statement, you must use it to buy down the tax rate on your voted geo bonds. In your case, the elementary bonds. And if there's money left over on the voted ple in your case, you do have a voted ple. So you would lose the sales tax dollars. They would cease to be available to you for the purpose that you're used to using them. I doubt that's the intention of any of your patrons. Um, I don't think it's your intention. Um, but the legislature kind of just wanted to be ordinary and said we're going to make you vote again. Most of your peers have or are in process of of doing that at this
011time. You won't be the odd man out, but a lot of your peers have already voted. So, um, doing okay so far. Can that go on the next school board election ballot, which this fall? >> You got You got time to put it on November's ballot. >> Steve has work to do tomorrow. >> Yes. >> That's why you moved away. >> Oh, I've already told your lawyer it's coming, too. >> So, um, it would make sense to put it on November's ballot. Um, there's no sixmonth wait like there is on a bond issue. So were something's goofy to happen and it failed, you could come back again in March and and revote. So >> what happens if it doesn't get approved in a vote? >> Then the money goes to buy down the property tax
012rate. >> Okay. >> Yeah. >> Okay. >> You cannot. >> But ours is currently is good through 2031. >> Okay. >> So we're good at least till then. >> Very good point. You're good through 31. >> Okay. But if you want >> to extend to what was it, right? >> Yeah. >> And that's important because you're talking about borrowing some money to do the next round of projects. And the first thing we'll have to do is make sure that you have a valid revenue purpose before you can borrow. >> Okay. >> Can that be put on a ballot more than once if it were to fail? >> Yeah. >> But you said it doesn't we don't have to wait >> till November. You can do it in in March. I think there's a March special
013election for non-bond issues. So you could do it then. >> But would we have to pay for that election? >> Yes. >> Each election. >> Yep. >> So it's important to make it clear to the community. >> This isn't changing anything. It's keeping things the same. >> It's keeping it in effect to 51 instead of 31. >> Yeah. >> So >> it's going to take some education. >> It isn't in itself increasing anything for anyone. >> Correct. But it but it's it's not entirely clear why you're asking permission because you already have the tax. >> I'm already paying the tax every time I stop at a retailer. >> We're just reconfirming what we're going to do with it. >> Correct. >> So that they don't they know we're not doing anything >> other than our
014facilities and taking care of our projects. >> Right. >> Great questions. Any more? Okay. So, while we're having this, let's go on to the next one that uh so you're going to borrow, let's presume you're going to borrow some money um against the sales tax. The statute requires that you hold a hearing, tell the public what you're doing and the maximum amount you plan to borrow. Um that's a uh so that's a board hearing. Administratively, it's a 10 and 20 notice. So, it's a it's essentially set the hearing in one date and hold the hearing a month later. >> We do that for every public hearing. >> Yeah, most do. >> Yep. >> There's a 14-day wait period after you hold the hearing where a person could present a petition. Um, and if that petition
015was valid, it would force you to vote on the proposition even though you're borrowing against the sales tax. It's not a property tax bond. It would still come to vote and the only time you can vote is November for bond issues. So, it would come on, let's say we set a hearing in January and somebody gave you a petition, you'd vote in November of 26. Um, we have had votes. We have had petitions. Um, Waterlue is building a new high school and theirs was petitioned and they did pass. Um, >> but you'd stop the project. >> Yeah. >> While you're waiting, >> correct? >> 10 months to get that permission. That's the thing that worries us the most is we often times tell all of you you should hold a hearing before you know what
016you're ready to do in order to get it out of the way in case somebody presents a petition. And we realize it's totally logical. You'd rather wait until you know what you're doing, but sometimes you kind of have have to move differently. Um, I don't feel like we're trying to meet this November's election. So, I'm not suggesting we scurry about and hold a hearing and wrap it up by September. That'd be tough. Um, but we need to be cognizant of it when we're signing contracts with architects and thinking about bid construction bid lighting and things like that. So, I know we talked about a date certain that anything that was going to go on November like the RPS. Let's say that it doesn't coincide with that. What is it? The 18th of September. >> So,
017let's say the 25th, for example, we wanted to order a public hearing, which would be basically the second meeting in September, which is after that meeting. >> Yep. So you're looking at the next November then. So okay, got it. >> So when you've as you're refining your project list and timing and thoughts like that, I'll be the one kind of saying, "Hey, let's get a hearing done quickly." And now you know why. is I'm wanting to focus on we need to understand if we're going to be voting that it's November of 26 or November of 27, but it will be one of those November and uh we'll need to obviously strategize with their uh construction team according >> and this is what Mary Beth did my first year to get the $9 million to finish
018>> elementary projects if anybody was on the board at that point. That was one of that was what we did. I didn't understand it then, but I understand it better now. Got it. Doing okay. >> Okay. Now, to make it a little more interesting, if you're going to spend save dollars on a athletic facility, you have to hold a hearing. And I didn't say borrow, I said spend. If you're going to spend some of the money that you have currently accumulated or will accumulate on an athletic facility, you have to hold an additional hearing. So, what is an athletic facility is the first question people usually ask. And the typical interpretation is a facility that is used primarily for um competition sports and not affixed to a school building. So my example, um, Urbanale football
019stadium, right? The gym next to the football stadium is affixed to the school. It's not an athletic facility. It's an academic. So there's a little bit of wiggle room as to how you define things, but but but kind of things that are outside of the frame of the school building, it's probably wise to consider they're likely to be athletic. There's a little bit of argument about, well, if we only use that space for academic purposes, even if it's for athletics, maybe it's exempt. Does that make sense? We build a soccer field, but we only use it for our PE class. So, there's probably some gray area there as well. Um, but since you are talking about some projects that have an athletic feel to them, you need to be aware whether we borrow the money
020or spend save cash. If we borrow the money, you'll have two hearings. We spend save cash, you'll have one hearing. Now I don't So now I want to jump back to couple. None of that's required for couple. this board has the authority to borrow money for any lawful purpose for ple. So there's a little bit of strategy around you know when we borrow from say when we borrow from how do we use the dollars you know every dollar is green in my simple mind but they're not some are blue and some are red and how do we allocate them and account for them separately so as to spend the ple dollar on athletics and the save dollar on academics or something like that if we can if we can we hold a hearing doing all
021right. Okay. So, we calculated um that you have uh you could borrow about 26 million against the safe if you had a valid revenue purpose statement. At this time, you have just under 13 million of bonds that remain outstanding from the middle school and the elementary projects. Um, and when you, so you add the 7 million for PEP capacity and the 26 million for save capacity and you get to 33 million of borrowing capacity between those two. And that still leaves you with the money necessary to provide for your 10year facility plan. >> Doing all right, >> we we do, but I do have a question on that. I'm jumping to the next page, but it relates to what you just said. >> Yeah. >> Um, in the 10-year plan, there's a significant difference in
022the amount like for the year 26 compared to 27, it's almost two and a half times less. >> So, and I I think Steve maybe I don't know if you I know you've got the kind of the master plan of the 10-year plan, but why is there such a difference between those years? in >> um I can bring the plan up and take a look quick maybe if I can >> because like in 26 it's it's 11 million in 27 28 tonight it's more like four to five to 6 million so it's almost h you know half the amount so I didn't know why there was such a discrepancy there the income is smaller too the income in 26 is 34 million in compared to >> well and some of that's borrowed money though, so
023that's clouding the income number. >> I just didn't know if it was like the like we don't have as many projects each year or >> once we get past 27 there's not a lot of projects on the 10-year plan. >> Okay. >> On that. So that is probably one piece of that. >> Yeah. Because I'm just wonder like I don't know how that like I don't know how often things come up outside of what's already on the 10ear plan. Like what kind of cushion does that have? >> Yeah, a lot of HVAC right now, >> right? That's what I'm saying. Like >> or million4 something and I just in the high school. So yeah, >> and you know, we I know we plan for maintenance on that kind of stuff, but obviously more comes up.
024So I didn't know how much cushion we had in that 10-year plan because I just I saw a pretty big difference there. >> So while you have while he's looking, you have a 10-year plan. You know, we're we're running a cash flow out to 201. So, what we've done in year 11 is taken year 10's revenues and added inflation to it. So, that we're we're not borrowing and ignoring that we're in year 11. You'll still have a 10-year plan in year 11. It'll just be a new one. And so, we need to make sure there's cash there. Now, I think the follow-up question you're dancing around with is, is 4 million five the right number to be swirling away? That's a topic that we need to spend some time on >> uh with Steve and
025your team a little more. Um so what I did on the revenue since we're on that page, so under column 4 is fiscally year 26. Um and you'll see kind of a shaded tannanish color. Beginning balance 8.2 million revenue from save 4.8 Eight revenue from Pepple 3.1. Add those two together. Bond proceeds 26 million. See that little bit of interest earnings and total revenue of 34. So if we peel the bond proceeds out, instead of 34 million, we have plus or minus 8 of revenue. Then we go down to the expenses. 11 million of expenses from the 10-year plan. So, we're in a we're in a deficit, right? But we had an $8 million beginning balance, so we're fine overall. You have bonds, the save bonds from the middle school and the elementaryaries, two and
026a half. And we end the year with a with a positive balance. And even if you that very bottom bluish line there, even if you took the 26 million of cash from bonds out, you still end the year with 2.7 million or so of cash. Do you all see that? >> But if you do that the next year, >> you're in trouble. >> It's not good. >> Because look what I did in the next year on the expense side. There's four numbers there and I colored them red to just tell you these are Tim madeup numbers. So keep that in mind. I made those up. They may have a little bit of input from you, but not much. And so I made up the cost and the timing. So assume you do softball, assume you
027do something for baseball, assume you do the middle school track and um football field, and then assume you paid 25 million for a CTE. Now I realize I don't think that's what it actually costs. So we have that issue to talk some more about. But what I was trying to do was solve on that 25 million is how much could we spend? We max it out. What can we spend? So you see we end in 27 with three million of cash and then we work our way downward from there until we get out to 34 or so when we start to trend uh back upward a little bit. Jenny, in your question, yes, the projects, they're not a lot of additional large projects that have big money. We've actually blown up the um the we
028have what we call our on andm money for operation and maintenance. We've actually stuck some additional in that to bump that up for any of those kind of repairs. It's just some additional, but there's not a lot of large projects going forward on that. >> Okay. >> From there on, >> because like I'm thinking of the the middle school band like that. I don't know if that was that in the 10-year project or was that like >> it came up and there was Right. So, that's what I'm >> like. Do we have cushion every year? >> We we have things like that that we'll discover. >> Pebble and save each year. There's money allotted for each of those four projects. Now if you have to take care of uh HV HVAC at 1.4 million >>
029we hope not but uh you know that's there is cushion there to take care of some things. Yes. >> Okay. >> And the ple that we give to the schools is not I'm going to say it's not necessary. It's nice. they the projects that they're doing. I shouldn't say that because the riser project is a school based on that needed to happen. That probably should have been put in the 10-year plan. >> Okay, >> that probably should have been done when I got here, the safety issue, but typically what they put in those applications are it would be really nice to have that they don't have in their own budget. So that is it's a small amount but we can adjust that if I mean I would like to be able to continue doing it
030but we have more ability to adjust that >> and in like 28 we have make sure I'm in the right year here like 27 28 we actually bump in 29 we actually bump that special base project up to 851 from 335. So there's because there's no projects, we're bumping it up in case th those projects need something needs done in those years. >> But like HVAC replacement is regularly scheduled in there. It's just >> sometimes it has to happen sooner than expected kind of a thing. Is that >> in the roof? So there's every other we got 500 grand going across every other year all the way over to like 31. >> Okay. >> For roof repairs. Okay. >> Well, we shouldn't have had them repairs we had at Polarius the buildings. >> Uhhuh. >>
031Okay. >> And I think that >> to predict that >> what we're trying to get in there that we're working with um Mike's team is how often do schools need to replace carpet? How often would you like to replace carpet? Sometimes the carpet still is fine, but just like in your house, >> you don't wait 25 years to replace carpet. So, we're trying to get some of those regular things. When is it time to paint the inside of of a school? Like last year, I think it was middle school was painted internally. A lot of the high school was painted internally. So, when can the principles expect that those things happen so that they're not using those in their plea wish list? >> So, I just we created something, but I'm not a a tradesman.
032So, we're having them kind of make a better prediction than we are so that we can incorporate that and make sure that our 10-year plan is going to cover those things. And if we got to a point where it was a short year and the carpet could go another year, then it gives us some flexibility. But it's just been hard nailing all of that down with everything that's going on with HVAC and all the other summer projects. So, hopefully we'll have that within the next couple of months. And we even have like stadium turf replacement over like in 29 or 30. >> So built into that. >> And some of these like the middle school track and the middle school football field were part of the 10-year plan. We pulled them into this because it's
033part of the facility conversation. So there's no reason to leave that in the 10-year plan if that's part of this whole >> update that we're trying to do. I don't remember if there was anything else that we took out besides the middle school. >> Yeah, just the middle school track was really it. >> Okay. >> So, what happens with the remodel of B green? >> Um, Eric did a walk through last Thursday and after tonight he's dropping his son at college, so I'm going to call him tomorrow to get some more definitive numbers from him. But he did that to get us We got the kind of pie in the sky number. now having that walk through and making he didn't he's not he didn't um measure and it's more of the he had a
034engineer with him so they did a lot of looking so he should be able to narrow it more it's not going to be our final number of course >> does it have to come out of here is my point >> somewhere >> um well that's that's part of the conversation >> because we do have options for doing that right now that does not have to come out of this. >> Tim, with your experience, you've looked at a lot more budgets than I have. Are you comfortable looking at the 10-year plan and the numbers that we have there that there's a that that's a very reasonable what we have projected out till 31 or 36. >> I'd like to spend some more time with the team, >> okay, >> for on on that >> before saying,
035yeah, we're you know, we're good to go. I I hear what you're what you're worrying about is we know we we know we don't have everything on this list >> and what if something comes up and what if it's 500,000 to remodel this and five and next year it's to do that and >> you know I've cut it close when in doing the max calc now keep in mind I'm doing max >> okay >> and um we need to make sure that I think that you have a little cushion there which leads me to if um the next part if that's okay. >> Yeah. >> So on the written part the thing you you notice was not there is there's no discussion about voting a property tax bondish like we did for the high school
036and for the elementarymentaries. Um unless you're unhappy with me. I've invited myself to come back in a month and uh explain to you how we would do that and how much capacity you have there. Um Steve and uh your consultant are going to meet and work a little bit on taxes and the the five-year plan for your budget. It's important if you you know if you go back to this very first page where I charted out the tax rates for you um you're if Yeah, on the right side you've traditionally solved for a tax rate, you know, $1790 to $18. You can kind of see see that trend. And what you've done is you've used the various levies within to move them up and down to move other levies up and down. That's all great.
037And but what I see happening is in a in a 2% environment for SSA and essentially flat enrollment for urban bail and three or so% increase in property values each year. The way that math flows through that big aid and levy worksheet is tax rates go down. That's that's one outcome. general fund tax rates go down. Now, that's influenced somewhat by cash reserve levies and to recover for sped and um but I see that you probably looking outward five years, your general fund rate's going to come down some and you have some wiggle room to push your debt service rate upward and still solve for that 1790 to $18 tax rate. If we did that, we have have some voted geo bond capacity that we could work with. And that would take pressure off of
038the discussion we were just having. How much save and peep are we doing here? What if we can I'm totally making up a number, but what if we could come up with 25 million of geo bond capacity? Well, you know, on the list of things you've got that go a long ways towards taking some pressure off ple and say >> or possibly not borrowing against ple and just going out for more to keep the safety cushion that we had with ple and that is an option too, right? >> Yeah. the total levy um which I don't remember if you were around um at the end we vowed when the high school came up it was never going to go above >> 1799 >> and in retrospect you know we should never have committed to that
039for all eternity but there are probably still people here >> who remember that >> not in urban >> so um you fooling around with that very much might not be a huge hit with the public. >> Understood. And so I want Steve and Gary is his name to uh have some time to work on their >> fiveyear budget and then what they'll do is feed me the numbers on that side and then I'll come back and calculate how much geo capacity. The flip side of that discussion is you would be asking your patrons for a new voted bond, right? No tax increase. It's not a terribly difficult discussion unless they hate the project. It's not really a terrible discussion. So, >> and that happens because as the enrollment does not go up, our debt service
040we would take from 320 to >> maybe >> and just shifting maybe the 85 cents >> up to the out of the general >> so that it stays >> cuz we said 17.99. So, you still almost have 5 cents >> there. So we could still keep the promise and unless we have some major surge in enrollment that >> what was that in 2008 maybe even 2006. >> Yeah. >> We made that commitment 20 years ago. >> It's an it's a new generation. >> Yeah. >> Unfortunately there's a lot of us still around. >> Fortunately fortunately >> just to note the last >> John would bring that up. the last two years actual rate that >> has gone down >> dropped down is because of those roll back valuations when I do my certified budget and
041get it into the county auditors it's before all this valuation stuff hits. So that's why those are a little under the the 17. Every time I file my certified budget they've been at the 1799. So I just see that the operating levy is probably going to be a little lower in the future than it is right now. Your uh your need for cash reserve is is going to decline. Um and that creates room to push the debt service will be upward. So, we'll just back into how much funding capacity that switch produces and uh that'll really help color this discussion about other whether you need to borrow and how much you need to borrow against PEP and save. >> Can you talk about I know we talked a little bit about um property tax. What's
042the state want to do property tax? >> Uh you're talking about change in front of the Pebble money or >> Yeah. If if we were to borrow against the Pebble, can you talk about what that would look like if the state did go through with something in their property tax changes that would affect PPE and where we would be? So if you if you borrowed against the ple the the maximum amount um and if the legislature changed the law such that they altered the the property values and the um tax rate and the income which is what they proposed to do this past year. If those two things happen, the borrowing trumps because you borrowed. And so what that means is you'll collect taxes from your patrons, whatever you need to to pay the borrowing
043back. If it's above the statutory levy rate, so be it. Uh that's the way Iowa law is written on all on all of the voter approved um tax back levies, bond issues and pep. It's not true for save since uh that's a different formula. >> Advantageous for us to utilize that then as a buffer of protection from any changes or not particularly. >> We have schools that have decided to do that for that very reason. Um, I have to be careful because I I can't say to you, hey, this is a good financial decision. I'm not sure it is, >> but it's certainly a defensible one. You know, you're you're certainly trying to protect yourself. Um, if you do not borrow against the pebble and they change the law, well, whatever they change it to,
044you're subject to. Um, we're trying to be take them at face value. They told our lobbyist at the end of the session. We weren't trying to uh alter schools income, which we kind of said, well, but everything we told you from January until May was that you were doing that. Well, yeah. And I think they came to realize that um you all did a great job talking to your legislators about how this impacts them and they heard loud and clear. Um so I don't know. Um I'm hesitant to go where you're at, but yet I certainly understand why anyone would choose to do so. And you certainly have time between now and January when they would come into session to decide you want to do that. What I'd like to do next if we can
045is figure out the piece around the bond issue. So, how much can we vote based on the the budget projection and then bring that into this chart so we can back off how much PEP and say we need we need to add the AO in somewhere and help cover it off identify how we're going to pay for it. And the AO is I mean we have we have funds set aside that we've been Mary Beth started putting in I don't know before I came. Um, so if I guess this is where the board would have to guide because if they said go ahead and proceed with the AO because you have enough cash on hand, that would come out of the whole picture here. But then I think there's there's argument people could say, well,
046why don't you just do the softball field? Well, mine would be because there's a full plan and if I just do that and plop it down, what what's the rest of the plan? >> Yeah. I mean, because we don't know we don't know where to go from there. So, I just I don't know what that cost is. Again, I have to get some better numbers to see where we even are. But that could also be if if the move was to start with the AO, we could still do save bonds to accompany whatever we had on cash if it wasn't the same wasn't a complete amount. >> My my concern is that that beginning balance that 8 million2 there probably includes the money you've >> set aside. So we'd be to not spend money twice
047and I'm spending it through this formula. So you're right. Everything you just said is accurate. Um we reduce the cash balance and take AO out of the discussion. We're going to end up at about the same spot. >> Do we have a um idea? I know like we're paying X number of dollars for rent here. What would that translate? I'm assuming it would be less to maintain the yearly budget of let's just say Rolling Green. If Bowling Green became the AO and maintenance facility, um the cost to run that building, is it less than what we're paying rent here? I mean because already paying for >> we would be paying electric and gas and all those same things but it would correct me if I'm wrong come out of >> right now the rent comes
048out of ple >> the money was general fund at that point >> to the general fund. So for so like right now we we basically hook about 370,000 for this rental of this and all the taxes and things that they bill us on that. So my my estimation I think rolling green would probably cost more than that to maintain and run with electric gas and >> maintenance worms. 300,000. >> I don't see how >> I have no idea. That's that's a good question. >> But the other variable there is that it's not completely the AO that we are hoping to get maintenance and storage space out of that building. >> Yeah. And we're currently paying to mow it and to plow it, >> right? >> And we currently have the utilities turned on. So like
049we're already paying that. So would it be that much more if there were people in the building? Like >> Well, >> heating and gas. That's hard to say, man. That's >> But you'd also be putting in a more efficient >> Yeah. >> system. Right now, there's no air conditioning in there at all. >> The heat is a boiler type heating system and you would assume to be putting in a dual system, >> something a lot more energy efficient >> and you'd be replacing windows and you'd be replacing doors and you would be bringing the building more up to today's code that would be more energy efficient. >> Okay. But we're paying we're paying utilities on top of our rent here. >> On top of rent here. Yes. >> Right. So, >> yeah. And that's out
050of the general fund. >> So, we're I mean we're not saving that money, but we're saving the rent piece. And the rent piece because we've got this we've got AO2, we've got the storage unit, >> but aside from time and vehicle maintenance and >> that would be the point. It's it's where the p majority of the population is >> and it's accessible. People know where it is. >> And I think, you know, as far as the community goes, >> finding it for registration or whatever. >> I mean, so there's so there's a lot of pluses. The other reality is we don't know. I mean, so you've been great, Tim, on providing this information. Of course, what it's led to is many more questions. >> Yeah. Right. >> And and so I, you know, I think
051it behooves us to say, you know, these are the possibilities. These are things to think about. We need much more specifics. And I will say, having been on the board when we did the elementarymentaries, we thought we wouldn't be able to put up that second elementary, you remember? >> Yes. >> Until 25. It would have been this year. And because of Tim would have been a lot more expensive, isn't >> that? And so we've had, you know, two or three years of kids that got to be in a new building that wouldn't have and they would have been scrunched into I don't know where Jensen's done. >> Um, but the bottom line is there are a lot of variables in the bond field and creative ways to do this. And I I have to say
052that your firm brought us to that place to where we we didn't believe that we could ever do that and it was millions. And um so I would vouch for the questions that you have. I think my experience Piper has been fairly conservative but also generous in helping us to get where we wanted to be. I mean, and the bottom line is taking two years off of the materials increases, all those kinds of things that we had during that time period was a huge plus. And um so I would say that from a past experience, I would have faith that what you're trying to guide us to is a a good path, Tim. >> Thanks. >> Yeah. And I don't disagree. That's just those are numbers that would help me is all I'm saying is
053if we could put the you know because we're currently paying for lawn care and snow removal and and you know so I'd like to see you know because that would make a difference on our yearly budget if if we could save $100,000 a year because it's it's more efficient to be there than to pay utilities in two buildings than one, right? Like that would be helpful to see. But I agree like that's going to if we do if we do that and it impacts that starting point then that changes everything else where we go. So I it's like I kind of need that information you know what I mean to help guide me to get to where we're going if that makes sense. So >> you want the amount of money that it costs to
054maintain Rolling Green as an office versus an AO. >> Yeah. Or like Yeah. What would >> like comparing if if if the AO was in Rolling Green, what would the yearly expense be? We know what it is here. We know we're paying rent. We know we're paying utilities. We know we're paying tax. So, what's the total cost of being here? And what do we think the total cost would be at Rolling Green? And then what are we paying of Rolling Green sitting there empty? because we'd have to, you know, we have to deduct that, if you will, from, you know, the expenses because we're we're already paying a lot of things at Rolling Green. >> And I think we also have to um I just say this because of Jensen, we have to that building
055is not kept. There's no people. So, >> right, the longer it's there's a playground that we don't keep up. There's a we do mow the grass, but it the building itself there's I don't know how long it can afford to sit there, >> right? >> Because I I'm not saying I'm going to neglect it, but it's just when there's nobody there, right? If you're at Webster or Valyrias and you see something on the playground that needs to be fixed, you put a work order in, you get it fixed. The problem is there's nobody to see anything. >> And I don't want to end up in the same place that we were with Jensen that I end up with a building that has to come down, right? I It's not in that kind of a condition,
056but just how far do you go before, >> right? we have to put if we're if we put off the AO that's fine but we have to kind of project out what do we have to spend >> to keep it in a place where we don't end up with demolition right >> so that's the I mean the neighborhood is already >> concerned about the gardens and the you know the weeds that are growing in the sidewalks and I just >> can't get the guys over there when they're doing all these other things so we can we'll have to get that mapped out. Maybe that's something Eric can help me >> figure out because he's done the most recent walkthrough. So, >> can we get an additional estimate? I was wondering those same things but related
057to what if we have to build something new instead of using rolling green. I know we know it's at a certain condition, but what if we built something at Jensen or at Rolling Green or on the high school or on the lot out out west? Like what what if we just raised a building that met your needs? What does that cost? Just so and a ballpark. >> New construction. >> Yeah, new construction. like if we just start from scratch, we build this, what does this cost compared to what does retrofitting fall and green look like? because that might open up more conversation or doors too. >> I will say in the facilities committee though that was one thing Eric did say if I remember right Katherine is that that building has got good bones to
058it >> and to resurrect something else when you have the bones there for that building and it just needs a remodel and some other things. >> I appreciate that. I just don't want to close off other location discussion because >> and I think that that's those are good questions to bring up. But the other thing that I I I think really helped us sell >> the two elementary school bonds was that they weren't going to move. >> So anybody in the neighborhood was who had been through there was very attached to that. We didn't move the high school. Um and again looking at where the population is balanced now you know um I think you have to consider that too ease of access and uh ease of um yeah access basically. Um the other thing
059I think that we need to consider is the fact that we don't really have any good storage now. >> Yeah. >> And so >> we rent one. I mean, so that's another cost and another >> uh consideration because it in theory if we could open up some of the space at the high school that is desperately needed for other things and take that stuff out of there and even turn it into an industrial tech classroom that we desperately need. >> It's not going to save money, but it will it it enters into the considerations >> to serve our our population >> better. Uh, so it might not all come down to money. Um, but again, we just raised more questions. >> Okay, that's what this is about. >> Yeah, >> it's very hopeful actually. I
060really appreciate this. It's very hopeful. Well, so my my ask to you is um think about the questions as as you're milling about the next few weeks that come to mind that haven't been addressed and um how do we get those written down and get them addressed? I'll be back to explain geo bond capacity tax rate stuff. Maybe by then Eric will have a little bit of color on what AO options look like. you can answer some of the questions you were just asking about operational >> because we really haven't set a priority as a board of like >> projects and where to start because I so I mean >> yeah I think that's pretty valuable to have that because isn't that kind of a next step for us that we need to kind of
061set priorities >> I think so and the um committee that made the recommendation if like let's let's say scenario IO is that you guys say, you know what, get that softball field moved right away. Put that back there behind the middle school, work with the city, get that done. Then I think we again my apprehension is we're just going to plop it in without the rest of the plan. But at some point, if things start to morph, I want to go back to that committee who made the initial recommendation because they made it kind of as a package. So if we're not going to do this, then here's some options. What's the facility committee think? So, for example, they don't want to move. It's clear that they don't want to move. The community doesn't want
062to move the baseball field. Well, then you leave the baseball field there. So, then we have to shift to how much work does that need because that needs to be included because there's going to need work on that. So, what else do we do? Do we go back and look at putting tennis courts? Because we had talked about possibly if nothing else could go there, put tennis courts over there. So then we don't have to go to the Walker Johnson. We have our own home tennis facility. So I think it's going to kind of be a unless the whole package is adopted and prioritized, we would need to continue bringing that committee back periodically to get them to >> I don't think the vision was ever to do it all at the same time, >>
063right? >> It might have been stages, >> right? Um but the other reality is we're going to have to um uh negotiate with the city on how that's all going to go together uh and what happens on towns end and >> right well we have to address all those issues on towns end and >> yes >> that is going to up the price tag >> and they may not widen that yeah they may >> widen the property and how is that going to affect That's right. >> That's going to be on our dime. So those are things that we have to think about, >> but those are variables. So So if it's just track, if it's traffic when the school's out, >> for example, because it's only a softball field versus >> junior high track,
064a football field, >> a baseball field, >> but but the football field is already being used as a football field, right? you know, and and we know that we have capacity for parking and the foot traffic that comes with that. So, softball, potential baseball, tennis, whatever. >> Yeah. >> That really changes it because even that the track is smaller, so they're not going to be hosting the track that's there. It's just it's not going to happen. So, that's not going to impact the neighborhood the same way as the totally new fields. >> Yeah. And city restrictions may clarify for us, >> right? what is absolutely not going to be built back there. So, that's something that is they're not going to make those decisions until we officially say, "Here's what we're thinking of. Here's our
065plan." And then they can say, "No, yes, no, if you do this, if you do that, cuz right now they're they I mean, yeah, they can have a ballpark conversation. You might have to think about this. You might have to think about that." that, but they're not going to be prepared to make a decision until we go that step further. So, at some point, we're going to have to get something prepared to take to them to officially get that answer. So, >> do we have uh land values as well? And are they in these numbers like the the land value that we have out west, the 12 acres or whatever? That's not in this >> and the Jensen property like that's worth something. Those numbers aren't figured in here at all. >> Not at all.
066>> And I did get appraisals on all of the properties before Jensen came down. They're what, three, >> maybe two and a half years old. >> Okay. >> So, it was more for >> our mental conversations on >> those ballpark numbers. I think we'd have to get another appraisal done. >> Yeah. to to be up to date. And of course, now that we don't have Jensen there, um I I want to say it had a land value as well as a a building value. Yeah, >> but I would want to do it >> again to make sure that they were more up to date >> because that I guess in my opinion that would be good information for us to have as well because that gives us potentially another >> income >> revenue source or
067I mean if we could if we did something with either one of those properties that could dramatically change >> and we have to remember there's no property here. So if we get rid of properties, >> right, then we have nowhere to go. >> We have to have options. Yeah. >> Right. Right. >> Yeah. I don't want to not consider that. But it's good to know what that value is. >> And you're coming >> totally ineffective tonight. >> You're coming in the second September meeting. I can't. >> So that's the 20. >> Do you remember the meeting? >> 29th. >> No, I really appreciate the way you explain these things so slowly and methodically. I really appreciate it. It was >> Well, this is my first go round, so I learned a lot. >> I >>
068learned a lot. >> I think I still have the originals from the two elementary. if you'd like to >> walk through memory lane. >> It's all very I mean Tim, you did do a really nice job with me especially who just landed in the state and is learning the state finance. It's just a lot of dominoes getting set up and I'm trying to figure out which pack I pull it out of first. Do I pull the cities out? Do I pull ours out? Do I it it is I appreciate the board's patience, too, because >> I've been part of these kinds of conversations, but I've been told what to do. Somebody else was in my position helping figure it out. So, I'm glad that I have the finance explanations and that you guys are understanding
069that because it is very complicated. So, I know you're still figuring it all out, too. If you could give us like an overview of like we're going to start here and then we're going to have these meetings and talk about these things and we're going to end up here. I think that would help just to figure out how how we're going to get through it all together. >> I can put dates in there, but I have no idea what we're >> even need dates. It's just like this happens and then that and then that >> like sharing with the community and like >> some of it is that would be helpful >> going to be dependent on the previous meeting and we do have a community meeting on the 25th. of September that we will
070begin publicizing soon just to give them an update on where we are. I mean, there's some misconceptions out there of what we're doing. So, we want to make sure people understand they will their input will be sought. This is not a it's not a Rosalie plan. This is a facility committee plan that will be organically developed through that feedback process. So, >> and in the past, Eric and his firm have kind of helped. >> Yep. He'll be part of clarify these are the steps um and rough dates um >> to kind of keep us on track and he's used to doing that for the district. >> Yep. >> Since I came here >> been a long time. >> Yeah. >> I'll be having >> I remember we used to use shy bannery. >> Yes. >>
071Well, and this would be a good meeting to earmark for training for new board members in November as well >> to watch. And we any meetings that we have like this, we don't normally stream these meetings, but because this is such a a public >> um event, public input, um we felt like it would be more transparent. So if anybody's listening out there, we will plan to transmit all of these stream all of these meetings. >> So I had on my schedule that we had a work session on September 8th. >> We do. No. >> What did you >> I can be here on the 29th. That's fine. >> Are you sure that's the 29th? >> The second meeting is the 29th. >> The first meeting is a workshop, but it has a different >>
072The eth is location. >> September 8th is a work session for the board meeting and the 22nd is a regular board meeting. >> Oh, you said 29. Okay. Can you >> It was coming on the 8th, but >> you want me to come back? Pro the ETH might be a longer meeting because that's where they do all the explanations for the board to have questions. So the 20 what? 22nd >> 22nd >> would probably be a shorter meeting. >> Fine. Fine by me. >> Okay. >> Yep. >> Not that our meetings aren't really exciting. >> We'll put you at the beginning. You can tell with all the people here. >> I've been here when there was some excitement. Yes. Yes, you have. Yeah. >> Thank you very much. >> Thank you, Tim. >> It's good.
073Now you don't have to drive three hours back, huh? >> Are you 3 hours away? >> No, he lives here. But when he has to go out to uh >> let's say Sue City or something. >> Oh, I thought Oh my gosh. I I three hours. >> No, I thought >> this is good. He's happy. I thought I knew where Rolling Green was and now I'm going to drive back. I don't know that I don't remember. >> It's an airline neighborhood. >> Yeah. 81st Airlines. >> It's tucked right in a beautiful little neighborhood without >> go Douglas to 86. I I'm sure there cannot please. >> Well, the front garden has been weeded because I did that. >> My husband helps on air. also on just further west. >> That's what tripped me up. I
074saw it on >> my literally. >> Did you notice it was during the meeting?