001I will try and man that for volume. Uh the board will now move on to public participation portion of the meeting. Dr. Dearman will begin with the superintendence report. Dr. Dear, >> did we take roll call? >> We did. We were talking. Yeah, you're fine. We did the pledge of allegiance, too. Uh first item I have request since last meeting. Mr. McKenzie has received seven employer requests. Six of which has been completed and one in progress. Next up I'll turn it over to Mrs. Ellis and she has a special guest. >> Great. Good evening. Uh the best part of being in student services is we get to see a lot of the wonderful things that are happening across the district. And for the new year, we wanted to be able to showcase some of the
002highlights that are going on in our classroom, some of the community partnerships we have, some of the activities. And what better way to start that with than with our unified dance team. This is a new program of students that are with our Eagles as well as in Mrs. Robinson and Miss Mrs. Zuk's class. So without further ado, they have a short uh presentation um within the Special Olympics and unified program here at Dunlap. So um I will let our awesome team introduce themselves and talk about the our program. >> Hi, my name is Sariah. I'm a senior. >> Roman tutor. He's a freshman. >> I'm Shayla. I'm a senior. >> I'm Julia. Happy Junior. >> My name is Mila. >> Okay. So, for unified dance, we practice daily during PE class. And our first performance
003is Janu January 27th at the Limestone basketball game. We're super excited for that. And then we are competing at IHSA State on the 31st of January. Um our dance is fully studentled. And >> my name is Mila. >> Yeah. >> And it was choreographed by me and Joya also too. And our costumes which some of us are wearing were funded fully by Special Olympics. And we are also getting dance shoots funded by Unified Drip. So we're super excited about that, too. Um, so we've done a lot of past events. We've done unified field day. Uh, we post today. We've done Special Olympics [clears throat] bowling. We do seasonal dances. So we do Halloween and Valentine's Day dances. Um, we've done a lot of unified basketball games and we have one next week on Tuesday if
004you guys want to come. Um, we've started unified soccer last year. We have a unified generation committee and we've been doing unified volleyball. And then some of our inspiring events is a sensory friendly prom and then a unified football game and a unified kickball game. We want to start a unified track and field team. >> Valentine's dance. >> And then um we eventually want to host a Valentine's dance for the schools in the middlei in their unified program. leaders will be presenting at >> so the UGC leaders special will be presenting at a con and then we're also participating in respect respecting. Yeah. >> And then last but not least, um we are hosting our first ever cool school plunge. So this is similar to the polar plunge. If you heard about that, you raise
005money and um jump into a cool or cold pool of water outside. Um this is going to be on March 6th um around the end of the day, so starting around 2:00 p.m. on our football field. Um I have heard a rumor that maybe Dr. Dearman is going to blunt and that is thumbs up. And I HEARD ANOTHER [applause] RUMOR THAT A FATHER and son duo, maybe both of you guys could be [laughter] >> and thank you for coming. [laughter] >> Um, [clears throat] and so yeah, so this is just some things that we're doing here at DHS. We've already raised over $4,000 for Special Olympics. Um we're incredibly excited and I know this group has a ton of energy and we couldn't be working with better staff or better students. Um so yeah, so
006thank you guys so much for listening to our presentation. [applause] >> And now would be a good time if you guys want to duck out. Go ahead and duck out. You're not required to stay for the rest of the meeting if exciting as it may be. Uh, next item I have is a construction update and I will defer to do that. >> Yeah. So, uh, good news. The fieldhouse is progressing nicely. Um, we're going to start framing the interior walls, the lower portion probably tomorrow and then next week, weather permitting, uh, how this cold front goes through and snow and all that, we're going to start putting the side panels up and roof panels up. So, that's going to come together nicely. Um, right now we're looking at middle to late July to have it
007fully occupied. So, I do want to show you something that just came in about an hour ago, otherwise it wouldn't be your package. But, we had the the final design of the fieldhouse is completed. So, this is kind of like a virtual walkthrough they put together so that our public can kind of get a glimpse of what that's going to look like. Um, but this this is a 4m minutee long video. It gives you a good idea of every detail. >> [clears throat] >> And that curtain will go around back and forth. They just put it up so you can see in this video. So, like I said, that's about 99% done. Um, just got to finish the work. Other good news on the construction update repel related to facilities I should say is we
008just got our second bill for the high school power and over the last two months we've saved between 9 and $10,000 since we switched to solar. So not bad kind of getting it fine tuned but overall starting to we're starting to notice that in our bills. >> Great. >> Thank you Dr. Adrian. Uh, I'll end on a couple of positive notes. Uh, congratulations to Katie and the high school on making the AP honorable again this year. So, congratulations to them and and the staff and students for that accomplishment. And then one that we've been waiting three years for. Uh, we are fully staffed on bus drivers for full-time routes. Hasn't happened in three years. So, I haven't been getting all the texts and the buses and rearranged because we have bodies. Thank goodness. So hopefully
009that continues. So thank you to Drew and Dr. Adrian for getting that done. Uh and that concludes my report. >> Okay. Thank you Dr. Dearman. >> At this time we'll move on to public comments. Is there anyone who wishes to address the board? If so, please raise your hand. Okay, the board seeing none, the board will now move on to information discussion items. Get this out of the way. I guess the school activity accounts have been included in the board packet. Is there any discussion? Okay. Next, Russ from Gorans and Associates will present Russol, sorry, from Gorans and Associates will present information regarding the FY25 audit. Welcome, Russ. >> Thank you. a little. >> Yeah. >> Okay. So Russell, boards and associates, we audited the financial statements of your history for the year end June
01030th of 2025. >> Russ, hang on a sec. >> Yeah. >> Teresa, can you hear him? Okay. >> Teresa, is is Teresa there? >> I don't know. >> You don't know? >> Okay, fair enough. Teresa, are you there? >> I can call her. I'll text her. >> She was there. We did a sound check before we started, but admittedly I didn't. >> Still connected, but maybe we dropped her somewhere. >> When I heard about the cool plunge, I my hand might have jerked and I might [laughter] have hit the phone. >> I'm going to be making a donation, by the way. I'm not >> pool plunging as it were. >> You're going to be in that water. >> My healthc care provider would not be. >> It wouldn't I wouldn't get clear. >> She can
011hear us. We just can't hear. >> Is that right? Um that is not acceptable. We could call her on speaker and that might work. >> Yeah, we're muted. >> Yeah. >> All the way on. >> PhD thinks that he can do it better than me. >> I sure do. Let's try from my I mean at least for this first part I want to make sure that yeah she has the ability to comment. I don't want it to be right. So Teresa you can hear me. I'm going to be calling you. See if we can do it that way. Increase it. Teresa, can you hear me or no? We're not voting on this anyway. >> All right. So, I'm going to let her listen. Okay. >> And we attempted this. I don't know what else to
012do. >> No. >> Okay. All right. Sounds good. As long as I don't get docked for any time, you know, >> we're not agreeing that [laughter] you don't charge. >> You didn't charge for that time. You're >> I don't charge that time. Okay. Started a while ago. Fair enough. >> Um, >> no. So, uh, the first thing I was mentioning is was, you know, we audited the financial statements for June 30th, 2025. And so, the most important thing, um, isn't necessarily all of the numbers because we audited those numbers, but really is the opinion we issued and the report we have on compliance and internal control. So, that being said, the the opinion that we issued on the financial statements is an unmodified opinion. Some people refer to that as a clean opinion. That isn't
013different than um what what has been uh that the district has had in the past. But just to mention, yeah, we did issue an unmodified opinion on the financial statements. The the other report that we issue is a report over internal control um used in our planning as well as compliance and we didn't note anything that rose to the level of having a finding in the report. So that's those are probably um the most important pages in here. Although it may not feel like it, but that's that would be the case. And if we stay with I I think each person has one of the blue books here. Um if we want to stay with that uh page eight, um and it's a landscape page there, but this has the the fund balances of the
014district on page eight. And so if you want to know where did the education fund or where did the capital project fund what you know any of these funds where did they end this would be a good place to start. Um so you know as a board member if you wanted to tag a page this would be a good one to tag. Um the second one that that I would say is fairly important is is uh page 10. You just flip the page one more time. And so page 10 is so I I think of it as how did we do right as a district would kind of refer back to revenues versus expenses and how are we would would uh would basically be the fund balance. So how did we do uh page 10
015about half a little over halfway through you can see the results of in each individual fund as far as revenues received versus expenditures dispersed. So an ed fund $2.785 million that uh the expenses exceeded the revenues the building fund about $200,000 expenses outpaced revenues and transportation 500,000 surplus or revenues exceeded expenses um and then working cash 700,000. So the the handout that we're going to cover that's up on the screen is primarily going to key off of those funds. That would be the ED fund, building fund, transportation fund, and working cash just because that's the health of the district right there. How is the district doing? And then again, this page here, if if there was one page, you have the ending fund balances on all the funds as well as, you know, how did
016we do? Um, you know, I've been given top quizzes to boards. Um, I thought I'd go with extra credit tonight. So, there will be an extra credit um section, but also page 13, we're going to see local revenues. And local revenues always to me seems a little what is local revenues, you know? Um, so number one, we know local revenues is real estate taxes. Um, so if you just focus on the far right hand column, you can see $42 million is real estate taxes. So that's local revenue. And if you come down a little further and just stop at the millions. So 1.1 million uh oh that's corporate replacement tax again a local revenue. Um coming down further 2.4 million interest earnings um on the investments $2.4 million. And then focus all the way at
017the bottom this school facility occupational tax receipt sales tax $2 million. So again so this kind of gives some context of what is local revenue. you can see here on this page or if you ever need to come back and say now what what was local revenue well here it is it is on on page uh 13 the only other page in here that I will mention I think it's a good page um is all the way in the back page 51 not quite all the way in the back but would be the fund balances before the advanced taxes um and so I'll give you a minute to to get there page 51 again it's a a landscaped page Um, okay. So, page 51 on the far right hand column is the total for all
018the funds. And if you draw it all the way down to the second number up, it's $21 million. So, in June, the district received what? $21 million of real estate taxes and it went into the bank. So, it's really, you know, that 21 million is really set aside almost should be set aside to think, well, we received that. That's really to fund next year's budget. Well, that's in these ending fund balances. So, I always like to take a look at where were the fund balances before that 21 million. So, if you just go one more line up, about $35 million of fund balance before those advanced taxes. And if you take that line all the way to the left, that's the education fund has about 13.8. It's about 3.74 months, 3.775 months worth of expenditures.
019um you know you can follow it through and do the math but the the O andM fund or the operation and maintenance fund has about three months and uh so so that's again something that you might want to focus on might take a look at um okay well with that being said we can always come back yes for reference if anybody wanted to look at this report it is on the district website already yes so the annual financial statements are on this website Okay, >> excellent. That being said, I'm going to transition to the handout. Each one of you should have it. It's up on the screen as well. Um, and that first page again, the handout looks like everybody has it. So, with the handout, uh, the first section is fund balance. So, you
020know, there's 23, 24, and 25. And you can see, uh, about $211 million of fund balance. if we looked at the audit report, but what most of that's made up of building contents, equipment, uh those types of things, and then there's some restricted funds. So, if we get to the net equity and the operating funds about $36.6 million and again, uh the operating funds are the education fund, building fund, transportation fund, and working cash. All those funds combined. Um and then the middle section of this is well uh what how do we do compared to budget as far as actual revenue actual expense versus budget by the ED fund, building fund, transportation fund like to see that plus or minus 10%. You can see the building fund looks a little fuzzy, doesn't it? The 200
021some odd thousand. So I didn't even think about this could be extra credit as well. Somebody knows what the answer there is, but u Mike probably does. So but in any event um unanticipated transfers, right? um of $8.5 million. So again, if you if you pull money out of an operating fund and put it over into capital projects, not an operating fund, you're pulling money out of the operating funds and sliding it over there. So So some unbudgeted transfers. Um the bottom section has the financial profile, the score of the district, and again this is the first goaround. ISB ultimately sets those uh those uh the profile scores. 3.65, 65. That was an improvement from 3.55. And that's primarily the outstanding debt of the district. Each year that goes by, pay down some of the
022principal and ended up getting to a point where you picked up, you know, from 355 to 365. If if you're curious, why not a 4.0 expenses to revenue? That would be the issue um of the 365 versus 40. Next page of the handout 23 24 25 and the far right hand column is the change. Um you know I focus on the change how you know what additional dollars came into the district and from where $1.786 million dollars came into the district and you know so primarily it was what evidence-based funding. I would never suspected that if you asked me just to guess where that would have been without seeing the numbers I wouldn't have guessed that. Uh I did have to go back and look just to double check. Um that that was new dollars
023that the state put into evidence-based funding. So out of 300 billion the [clears throat] district ended up with about 1.897 or $ 1.9 million. The expenses if you follow all the way to the bottom and second line up $2,562,000 more of expenses. It's about 51.1% additional expenses over the previous fiscal year. And then you can see the 1.748 is those funds combined, you know, as far as revenues or expenditures outpacing revenues. And just for fun, u and I've already given you the answer somewhat, but if you looked at page one and you saw the fund balance change, it's a negative $10 million coming out of the operating funds. And yet this is 1.748. And you know, kind of let the cat out of the bag already. when you do the transfers moving it out of
024the operating funds into capital project which is not an operating fund um that's where you get this this difference between these two and this is going to come up in one more uh graph as well. Okay, next page is where does where do the dollars come from? And just more of a picture. And you can see real estate taxes are a big deal. Uh 67% of a of a dollar that the district receives is real estate tax. And then you can see evidence-based funding of other local revenue which we talked about previously um is at 11%. Okay. So, how are categories doing? Just historically looking at revenues and you can see real estate taxes have been increasing the last couple years. Other local revenues kind of flattened off and that's going to be again interest
025primarily interest and corporate pre-placement tax. Evidence-based funding, I put WOW next to there. I wouldn't have guessed that to jump but it did. Other state sources really depends on timing. Um, and then federal and flowth through primarily is going to be title one, IDA, some federal, you know, whether it's the school nutrition program. That's what those dollars are. >> Can I ask you a question? >> Yeah. >> Uh, you mentioned that evidence-based funding, that jump. What is that attributed to? And you may have told us this before. Yeah, we're uh we moved from a tier 2 district to a tier one district because when they do the math at the state um uh our percent of adequacy of funding uh in that formula is only about 70% which you know it moved us down to
026to the L to the tier one which is where you get the most money gets uh assigned to tier one districts and I mean has really kind of saved the budget. I mean, you know, the same thing happened this year >> where that's the biggest change the last couple years has been >> and do we anticipate that continuing? >> Yeah, I don't see us falling out of a tier one right now. I mean uh there have been some shifting of that because of uh uh during COVID the uh um personal property placement tax in some of these communities got shifted around some some shifted but it's kind of shifted back now. So we should be there I I don't expect us to fall out of that tier >> anything soon. And so we went from
027when I first started here we had maybe $3 million in evidence funding. We're up over six now. I think even over seven to this year. So, it's it's really helped us. Hopefully, they'll continue to to uh increase that funding. Gotcha. Thank you for >> Okay. Next page of the handout is uh expenditures of education, operation and maintenance, transportation and then the total the operating funds fiscal year 2425. Um and the grand total was an increase of 2,562. We we've seen that number previously and um and if if you're interested, most of that is in salaries and benefits, right? So about a 6.5% increase in salaries and benefits overall. Next page, where where are those dollars spent? Um, this one, 81% is [clears throat] is on the high side, okay, as far as salaries and benefits.
028Now, when I back up and look at it, so I was at a district yesterday and um most of their special ed is paid to a cooperative. That's not necessarily the case here at Dunlap, is it? And most of those expenses that are paid to the cooperative get consumed in salaries and benefits as well. So you can see the other objects here of the district 2%. Um most of your special ed is already in salaries and benefits. And so that 81% makes sense in that context. Um but you know again 81% is probably on the high side for most districts. But again if you're if the special education is in house it is it should be higher. Next page of the handout, what are the categories of expenditures doing? And as you can see, salaries
029and benefits have been increasing. Purchase services increasing slightly. Supplies and materials actually came down some this year. Uh capital outlay um you know, typically that's going to be buses and your summer projects. Um, and then the other objects, again, other objects is primarily going to be payments to for special ed, maybe to, you know, I guess I'm not sure right off the top of my head. Uh, but again, it's not that much. Next page of the handout, uh, revenues and expenses, and yellow line would be the revenues, and the other is expenses. And you can see they've been fairly tight. um expenditures have been greater than the revenues for what you know all but a few years right there. Next page of the handout is the 9month average daily attendance as well as the comparative
030estimated operating expense per pupil. And uh as you can see, 4,498. We didn't count students. We didn't stop by and count. Um this is something that's reported to ISBE, so it's it's a should be a consistently reported number. And then the bottom has the the operating expense per pupil. And again, that's a a mandated calculation. It's nothing we come up with oursel. Um and you can see that 4,498. So unit districts in the state of Illinois. I think I've got this somewhere about 387. So Dunl left district as far as size student countwise probably about 40 or thereabouts unit districts unit districts. Um and then you can see the bottom um has the expense per student. Um I did I did pull uh Tom had asked me to you know hey last year you told
031us a couple different districts you know what what is that? How do we compare? you know, um, and so I did pull some and I think, you know, when you start talking about 4,000 students, there really isn't that many districts within that. You know, there's you look around and well, okay, 150 has quite a few board school, you know, pupils and uh, Dunlap does, but as far as comparability, Morton has about 3,000. They they clock in at 12,465 operating expense per pupil. And this is 2024 if you were interested. Um, you know, people that are right at the 4,000 Bloomington 17,500. Um, is it Chadam? I always think it's I think that's all Chadam, right? >> Right. Yeah, there you go. Uh, so they're at 12,37. Uh, Danville clocks in at 24,94. Um, so that
032gives you kind of a feel for where things are comparative-wise. And let's see, next page of the handout has the uh comparative assessed value on the top and the tax rate on the bottom of the district. And uh I guess so >> Russ, let me ask you real quick. I'm sorry. >> Go ahead. >> And thank you for getting those >> numbers. Um, when you take that that 12,115 our number, are >> are you just taking our Are you taking our total expenses into that 44.98? You're not >> How are you breaking that out? >> There is a So, this is a >> There's a formula. >> Okay. >> And it's not my formula. It's the state's formula. >> You think it's reasonable or No, you don't like it? Um it it's consistent. >> Okay.
033>> How's that? >> Sure. >> Um so and it's consistent across the board for everybody. >> So I think it's something you can look at and say, "Well, this is a consistently applied number and we should be able to compare ourselves somewhat to other districts." >> Okay. >> Um >> they're going through the same calculations. By the way, the numbers I just read would be compared to the 2024 because, you know, we the information for 25 isn't out yet for districts. I mean, you know, yours is 12,115, >> right? >> Um, but but we don't know other districts as of 25. >> Okay. >> Yeah. >> All right. Thank you. >> Yep. >> So, the next page of the handout, like I was saying, assessed value at the top, um tax rate at the bottom,
034and remember that the real estate taxes are the biggest driver, right? It's the biggest revenue generator. So, these are important things. Um, and as you can see from the assessed value, you crossed the billion dollar mark the district did as far as assessed value of the district. And that's a 7 and 12% increase from the previous year. And then you can see the tax rate of 4.4362. Next page of the handout, the operating fund balances. And you know, we we've talked about this a little already. And you know, if we would have just looked at this um just flat out looked at this, you might say, "What happened?" Right? I mean, we we went from what to what 24 to 25. Um but again, we we've talked about this like three or four different times
035to where some of the dollars of have been pulled out of your operating funds working for cash primarily um and moved over into the capital projects fund. So that is the dip there. Let's see. We're getting we're getting to the end. Uh on behalf payments. Um it's just to mention that the state um hypothetically, it's not hypothetically, they do they put cash into the TRS system on behalf of the district. This is more of an actuarial uh valuation rather than the state, but you can see the state path, you know, they they designate so many dollars to go into TRS on behalf of the district. Um and that's $15 million. So I and I I don't know if I've gone through this recently, but you know, if you if you think about the pension the
036net pension liability, and again, this is actuarial numbers, uh but still good information. So the total uh net pension liability, $189 million. And if you're going to guess, well, I mean, the state's going to cover some, we're going to cover some, right? Um well the state out of that $189 billion 187 million is the state's share. So you know it's kind of like well the district we don't have a huge responsibility here other than I mean you start looking at the numbers and how big the numbers are and I don't want to fearmonger. I mean, this hasn't been an issue for quite some time to where the states kind of looked at the districts and said, "Hey, we'd kind of like to push some of this back, right, of this of these unfunded dollars." And
037I suppose politicians have to get elected, so it hasn't been spoken about in a while. But anyway, and again, not to fearmonger at all. It's just good information to know. Hey, that that is that's that's what's happening. Okay. And the last page, oh, it's not the last page. There's bonus pages here. Um, so the the outstanding debt of the district and you can see, you know, there's been a steady decline. You're down to almost $30 million. And I know if I'd looked today that would be different, I think. Yeah. Okay. Um, to where you're doing some projects and uh you can see the high in 2013 76 mil and you've brought it down to about 30 mil as of June 30th of 2025. I always include the next couple pages. Um I I guess I
038guess I I I would look at these next couple pages and say I would my my my guess of why the assessed value is a billion dollars is because of all the commercial property because Dunlap reaches down into Puria carves the top into Puria but it's not is it take a look at the residential um as far as the assessed value is concerned and see where where those increases are coming from. Uh not to say you you wouldn't want the commercial, right? That's a great base to have. Great base to have. But really, the residential is the bigger driving force out of the two. And that's, you know, again, if I was just, if you're just going to ask me what drives it, I would have guessed commercial several years ago. I know this trend.
039But anyway, it's good information to know. And the state railroad kicks in so much, right? You can see that. Well, no, you can't see it. [laughter] Uh, >> so that's that's the end of the presentation. Um, I don't know if there's specific questions. Um, >> Tom, I have a question when it's my turn. >> It's It's your turn. >> Okay. Um, so Russ, I got a question for you. You had And I'm going to focus on the financial profile score. I know that went up looks like a 3.65. You indicated that is because we were paying down the debt. Uh what do you anticipate that would be next year when we we bond for Wilder weight? You also indicated that our reserves are down to 3.75 months if I heard correctly for the END fund
040operation on&m is 3 months. What do you anticipate will happen to that financial profile score? >> That's a that's a great question. I have not run the numbers, but it it's you know if all things were consistent, you're definitely a 355. I mean the the that that that change is going back to a 355 at least. >> Yeah. I ran the numbers for the new debts and we will we will we'll go back to the 3.55. >> Right. What are you projecting for next year revenues to outpace expenses or I mean that would be the other factor? >> I'm still looking at it >> at a deficit. So it'll be probably back to that. That's probably what that's probably what I would guess as well is the 355. You're definitely not hanging on to the
041365. Um, >> that was my other point. Thank you, Mike, for bringing that up. We've seen a deficit several years in a row continue to most likely see that. That's why I'm asking that question. >> Yeah. And the other the other question you had was the what the advanced taxes the the months of reserves if you will at I think I think we had that at 374 in the education fund. >> Um so you know I mean I I've always said you know I obviously we don't have a policy. It's not our policy. It's really the district policy and I don't know if you've ever formally said hey this is what we want as a district but you know we look at it to say yeah you should have three to six months and I
042think I think you could probably go back to previous presentations and that's what I would say you probably should have three to six months right um and preferably and I know it's not there um I really like some dollars in the rainy day fund if you will that be your working cash fund and and I understand why some money was moved out of it but it would be Thank you, Russ. >> Mhm. >> Other questions for Russ. >> I might have one on I don't quite understand the on behalf. So back in 21 they the state gave us 19 million. >> Well, >> there's no money that changes hands here. This is just an actuarial amount of what they should have put into TRS. So what made it out of 15? What's the $4 million
043or why does that change? >> It could be that they changed assumptions, >> the actuaries, you know, and calculating that, but again, it's it's an actuarial calculation. It it isn't like Mike said, this this doesn't relate necessarily to cash moving hands. There there are funds that go in the TRS, right? I mean, the states I don't know what the amount they carve off and actually put in, but this is actuarially determined numbers. This is just for our district. What they should have, you know, what the the actuaries say they should have put into TRS for us >> in in the last year. We never see any money. It's all between the state and TRS. And right, >> but then there's a formula that we have that uh Russ does to figure out what they should
044have put in for us. And you know, for a long time they weren't. Now they are putting a lot of money into TRS. And uh I was TR has had few years you know good returns. So their uh percent of funding has increased to like 50% now which used to be more like 40%. But you know uh but this is a weird number that we have to put in there. And I always remind people we we never see a dime. It's all between the state and TRS because they're uh you know we pay 9% of the teachers salary you know goes into we pay the TRS on behalf of the teachers but then the state is supposed to put in a percent also and that's what this is supposed to represent. >> Okay. >> Just
045like you and your business you put in 7.65% of into social security and Medicare and the employee put 7.65 65 with TRS it's 9% that we put in through the employees and then uh >> uh the state supposed to put in the the other 10% or so that that what this is what this is supposed to represent. >> Okay, >> good. And then um any other questions? Uh, I'll just make just because we're talking about bonds, I don't know where else to stick it in the agenda, but just to put a put a button on an issue from the last couple meetings. So, with the bond, the new bonds that we just talked about for, you know, what'll affect the score moving forward, etc. The final answer in round numbers is that yes, this refi
046of the bonds is adding a couple of years, two years to the whole thing, but it is netting a uh a million dollars less had we not >> right >> kick them out for two years. >> That is correct. >> Okay, any questions about that? Good. And we are having 44 million more, but we're also having payowns this year. And that's why that financial score will still be under 50% of our debt service allowance. And that's why that financial goes back to 355. >> But that's a guess by both of you. 355. I mean, it could be. >> Yeah. You don't know, right? Neither of you know. >> Not until we get there. >> Okay. Well, sure. >> All right. We'll come back. We'll see how it is. I keep the packet. >> That's right.
047I like that. >> Yeah. >> Um Okay. Thank you, Russ. Appreciate you. >> Yep. Thanks. >> Thank you. >> Okay. I want to go back to um just real quick, uh when we were having some technical difficulties, uh Teresa had a question about the school activity account report. So, I want to go back to that item. Teresa, do you want to state your question? >> My question is, and maybe Mike can answer this, and it's related to the activity accounts versus on the bill list, I see on the bill list for the DHS activity account. Keep in mind, it's a bill list. It says donations from private sources for 1650 and other revenue for 23675. Can you help me understand why that's on the bill list and what's going on there? >> Um, we are
048uh >> Why don't you come over, >> Mike? Why don't you come over here? >> I can't. Yeah, I can't hear him. >> That's a neat trick though, Mike. Yes, >> I didn't catch all the numbers you're saying, but I know this month we are paying to the activity funds, the DHS activity funds. Um, we've got some Caterpillar matching grants of like 20ome,000 uh when they were doing the 10 times and so we're or whatever whatever Caterpillar was doing. Um, but I know we got a bunch of uh matching grants that came to the district accounts and now we're uh we wrote a check to the uh high school activity fund so it can go to the some of it was was robotics, some of it was swimming, some of it was, you know, was
049there were several things. So that was the big amount to the to the activity funds. It just it came to the district accounts and then we pay it to them uh just because it it came to our account. uh instead of the activity fund account. >> I'm sorry. So, if I would look at the activity accounts for this month, I should see that in there >> under revenue. >> No. Well, uh yeah, it would it would actually reduce the revenues. Yes. In this case, uh you wouldn't see that yet because it would be in January because we had revenues that came into our other revenue account. uh they gave coming to the district, but it really was supposed to go to the um uh uh to the uh >> Thank you. >> the activity funds.
050So, >> we get those occasionally, but not very often. So, >> okay. >> All right. That that's it on that, Teresa. >> Good. Thanks, Tom. >> Yep. Okay. So now we will go to uh information regarding the HVAC replacement at uh the high school and boiler replacement at Hickory Grove has been included in the board packet. Is there any discussion? And I know that someone had a >> give you a little bit of background on that. Dr. Dear came to you in October. >> Let's come up here so Teresa can hear a booming voice. Dr. Dear man came to you in October about some of the infrastructure concerns that you have that may not be new construction but maintenance. Uh we have 10 buildings in the district we've got to maintain. Uh the oldest one
051back go dates back to 1945 done that grade. We're going to add two new buildings here in the next 30 months. So we'll have 12 buildings. So something to consider 12 to maintain. Hopefully the newer ones will be easier to maintain. have to worry about those for a while. But as Dr. D and I worked through some of these infrastructure concerns, you know, he had me put into place a 10-year pavement plan when I first came on. Then it was a 10-year roof maintenance plans we came on. So, we feel good about those. I think we're in really good shape because you guys in the previous board committed to maintaining those uh throughout the summer projects, whether it was the, you know, 60,000 for just general roof maintenance or maybe it was doing 250,000 300,000
052in pavement maintenance in our district. You think about all the payment we got, that's a lot. And I know you guys get complaints about a lot of things, but I know you get about potholes, too. So, we try to try to maintain that. But as you get deeper into the infrastructure and working with our HVAC and I think Teresa brought up a couple years ago, why are we having so many problem with HVAC? So, we're trying to get a handle on that. We've got a monitoring system in place that we feel good about. But when you look at the data, we've got eight units on top this building, 24 units on top of this building alone. We've had so many add-ons. Eight of them are from 1997. So, they're nearing the end of their lives.
053They're 20 to 25 year units. And they've been pretty reliable for the last 5 years. But I mean compressors go down, they can be replaced. Motors go down, they can be replaced. Bladders for uh Freon can't always be replaced or repaired. So we vastly underestimated what it would cost to replace those because the cost of those are similar to buses in the last several years. They just keep going up and up and up. So when we sent out I mean Dr. And I talked about a plan to replace these 1997s because eventually you have to replace them all in the next four or five years and we don't want to replace all of them in one year. So we said we'll just pick away at it two at a time. Well during that process we
054had a boiler go down in in the high school junior wing. So the way boilers work there's usually multiple boilers two or three and they work on what's called redundancy. So boiler A will work and be the lead for one week. Boiler B will be the backup for that more. Run a little bit of of power out that way. And then the next week boiler B will be up running and boiler A backs down. If you got three, this kind of does that same thing called redundancy. So we've gone several months without that second boiler at the high school and the junior ring. So it's running at full capacity. When it does that, it depletes its lifespan, too. So that had to be added to that. In that same time, if your grove lost one
055so and they've got three over there, so they've been running at two, but still as you do that, it picks away at the age and the longevity of the lifespan of those two existing. So that's why we decided to put them all out for bid. They were actually bid in two packages. Hickory Grove was kind of separate and the high school was its own package. They came back higher than what they are um or higher than what we wanted them to be. the bids, you saw the bid calculation, they're pretty competitive uh in all good people bidding them. So, we felt good about the number of people that bid them and the quality of the contractors. But that's where it came back at. Now, I've talked with a couple of you. Yeah, you can defer
056this and move it down the road, but we can't defer the boilers. I think we got to have those. You know, the rooftops, the main one that we're worried about, the one that covers the office in the front hallway, that's down quite a bit. I mean, if you've been in the office, it's down quite a bit. We get all kinds of complaints. Dr. Dar and I talked about that during the week. Like, man, we get so many complaints when those rooms off for a few degrees in in September and then if they're hot for multiple days in a row, we lose a lot of grace because people are losing their patience at that time of year. So, the last thing we want to do is have one unit go down in September on 100 degree
057day. But, you know, think about the equipment we're relying on. It's not very good. So, again, as Dr. deer and I spoke, we felt it needed to be brought to you guys to decide how you want to handle it. We we I felt honestly there's a level of negligence if I don't bring it to you. We just keep patching stuff up and then you know I'm gone and then three or four years later we need to replace eight of these things and you know 6 months what's happening. So that's kind of where this is coming from. We do need to make some moves on this. Whether or not you want to make all of that, it's entirely up to you because next month I'm bringing you the information for summer projects. But the reason why
058I brought this early is the supply chain in these units is a lot longer than getting Tazwell County or whoever out to do asphalt and concrete. Uh and we don't want to start next year without functioning in this building. I mean, you guys get a lot of complaints, but I know most of them probably come from the high school. It's the biggest building. It's one that gets the most use. uh the most people are in here. So, you're get more people with more eyes to complain. Uh but this is a priority, you know, and then right behind that, we've got all the units on top of Dunlap Middle School 1999s. Now, the chiller that runs that is 10 years old and pretty reliable, but those air handlers are all 1999s over there. So, we've got
059some antiquated equipment that we're going to have to figure out how we want to diligently replace that without, you know, being too crazy in one year. So that's that's the logic behind this proposal and understood it's more than any of us wanted it to be but those are competitive numbers and that's where they came in. So that's the information >> go ahead the funding for this we can use some of the county school facility sales tax. Is that correct? >> Yeah you can. I mean >> because it's a capital offset come out of reserves. Yeah, with that we've been very fortunate that fund because the last couple years we have replaced boilers with that impromptu uh work with Michael McKenzie to do that. [clears throat] So that goes that goes pretty quickly when you start
060doing boilers in HR, >> but yes, you could. >> Couple questions. Um you said you didn't think it was going to be this high. I'm just curious what what you think it was >> about 500,000. >> Okay. For the whole with the two instead. >> Now grant these are the highest these this price can ever be right now. Sure. >> Because we have in there some contingencies built when you're putting these new units in there. There could be electrical issues and running electrical could be a big expense. So those are accounted for in here. Hopefully we don't have to. Hopefully that's good. But we ran into that a couple years ago with asphalt. We bid a price but then there was some base that wasn't there like oh we didn't account for that. So we
061want to make sure any contingency was accounted for in >> is the couple more questions. >> Yeah. the the Hickory Grove. I mean, that is is that 10 years old? >> 2013 would be 13 years old. >> 12 years old. >> 13 years old. >> Yeah. >> Okay. So, older than I thought than I remembered. >> And that we thought that'd be about 125,000. 150. It's more because our contractors and engineers have felt like the piping that goes into that is causing a lot of problems because we've already replaced one there. So they've gotten together and they've designed a new piping thing that's included in this to not only help the new one, but to also help the older ones. So I think there's an error there. >> And does the I mean I get
062So I thought it was 10. It's really 13, but 13 years I mean that's a far cry from you started your talk here with 1945, >> right? Yeah. >> So I mean does that is that odd? I mean is that >> no new technology like that unfortunately doesn't always last as long like the Wilder weight steam uh boiler that's still going you know we those but you know you've got to have so >> and we'll keep it >> they have to be energy efficient they have [clears throat] to be energy efficient now the new code so that raises the price up for all that stuff the new codes really impact the bottom line >> all right last question and maybe I missed it when you were going through this initially you were talking about redundancy
063and some other things but I I wasn't following Exactly. So on the we're going off the memo that's actually in the board packet. Um for the high school, I heard what you said about the boiler, but the two separate RTUs, >> right? >> When you put these all together, it's the half million, but are these all I mean, is this part of the redundancy thing you talked about or can it these all have to be done at the same time? If I if I had to, we absolutely, in my opinion, have we have to do the boilers at the high school one because there's not one in that area. And number two, we've got three over there at Hickory Grove and they're only running on two. So, you got to do those. Then it comes
064to the rooftop. I think it's eight that controls this in the main hallway and part of the cafeteria and C hallway. That's the one that's on it last leg. It need in my opinion needs to be replaced in Joe's opinion and some outside contractor's opinion that we consult with. And then the fourth one is the one that's just not very efficient because we've added onto this building multiple times. It's asked to control and and climate control a larger area than it's supposed to. So it needs I mean it's always running at 100%. So of all the ones we've got up there, these are the two that we identified right away. But there's three there's there's two RTUs >> at the high school >> and a boiler, >> right? >> So it's it's three at the
065high school out of all the one you're saying those are the three that you've identified that have to get there. >> I think the boiler at the high school is number one. >> Okay. >> The boiler at Hickory Grove is number two. >> Okay. And then and then the two RTUs after that >> at the high school, >> right? But those but that in your even in your bid either one you don't you don't break out the RTU from the boiler you're just correct >> showing it to us as a whole half >> right >> okay >> that was the way KD so Ked did this design for us we using them because we didn't have a whole lot of luck with Farnsworth Mechanical on the pool unit you guys know all about that so
066we've kind of been farming some of this out to different architects and engineers to get a flavor for what they offer So Ked was doing the fieldhouse. We're really happy with their work and design there. So we gave them opportunity to bid this and they identified a lot of these things and said, "Hey, you're going to have a better bidding package if you lump these three together and then do that one separate." So that's why we did that. >> So that's how they all got it and they all came back with relatively similar numbers. >> Exactly. >> Together. >> Right. >> All right. Other questions? >> Question. >> You were mentioning that the boilers seem to be like the number one thing, right? Isn't there also a boiler down at Ridgeview as well? >> Not
067that I'm aware of. There was one done this summer that we had some valve problems and we had to call MSI and they did all the valve replacement. But there was one there then. Yeah. >> I mean there there could be one go down temporarily and they they may not tell me. >> Okay. >> But when one goes out of commission, they're like, "Hey, we got one out of commission." Heating element or something like that that they can't repair is a problem. >> Okay. Yeah. Yeah, I just thought there was one over there that was down as well. >> Yeah, I could check on it, but not that way. >> What's that? >> Hang on. Students are out. >> Okay. >> I'm sorry. >> When would the replacement start if we were to get the
068money? Have to be in the summer. >> Yeah, this summer hopefully. I mean, that's it's all supply chain and hopefully we'd have them in the spring and we started right this summer. >> You just asked Dr. Adrian when he would be thinking about this and he responded with summer. >> Yeah. >> So, uh Teresa has a question. >> Yeah. >> And uh Tom, I want to let you know I got to drop here in a couple minutes. I'm going to be boarding a plane. Uh one of my questions is and and I don't know if it's out there. I know there's a lot of priority maintenance items that need to be done. This Hback is part of it. Do we have a five-year capital plan? something that's going to show us what we do anticipate
069per year to spend based on the highest priority, medium, low, that type of thing. >> Well, yes, Dr. Jeremy shared a framework for that in October. Uh, this is kind of the first step of these immediate things we need to do. Uh, we can absolutely occupy a five-year plan very easily for that. We thought we'd start with the most critical needs right now and knowing that we would probably move to two more RTUs on the high school to 97 next year unless something else popped up that absolutely had to be replaced. >> And for Hickory Grove, knowing that that building's only 13 years old, would would this would this have been expected to have to replace so soon? >> That was my question. >> At Hickory Grove. >> Yeah. That's unfortunate. Uh we already replaced
070one over there and like I mentioned, you may have missed it, but that's one thing that our engineers have identified and the uh last contractor was in there. The piping that goes to those was not ideal and did not allow for the proper uh circulation in their opinion and that's why they this bids a little bit more to improve that piping over Hickory Grove for all of those boilers. We did that recently with Dun Valley too and they lost one. Okay. So my question my my next comment would be when we uh build wilder weight here coming up, can we ensure that we do that correctly so we don't encounter this issue 10 years down the road? >> Well, they're going to they're going to they're going to do it by obviously the required specifications
071on that unit and we're making sure we we're doing that with our with Ked is going to make sure they comply with all those installation uh requirements. I I am not sure what the warranty is on those units, but I can find that out. >> 13 years. >> Yeah, >> maybe talk to the builder that built it, right? We know who that is. Um I just don't want to get into the same the same issues, right? >> When we're doing a new building. >> Yeah. >> Let's let's take the lesson learned and go from there. Thank you, Tom. I'm gonna have to drop. >> Okay. >> Safe, Travis. >> Dr. The uh RTU replacements, are they the is it a one for one same size? Yeah. >> Are they suggesting an expansion to because of
072>> like the one that you said it's overworked all the time? Is that a bigger unit? >> No, they it's the new equivalent and it's energy efficient and it's also energy reserving per code. So, they're all new units for that process and it's supposed to be because it's more efficient, handle the space better. >> Okay. >> Yeah. But like I said, hopefully we don't need all the extra wiring and conduit and stuff, but that's worst case scenario on those. And again, we want to bring it to you because we don't want in several years all of a sudden you got to replace six or eight of them. >> Yep. >> Thank you. >> Okay. Thank you. >> Other question. Any other questions on that? >> Thanks. >> Okay. This concludes the information discussion items. The
073board will now move on to the consent agenda. Is there any discussion regarding items on the consent agenda? >> Could I have a motion to approve the consent agenda? >> I move to approve the consent agenda as presented. >> Andrew, is there a second? >> I'll second. >> Nick 10707. Any discussion? We'll call vote. Miranda >> Fman. >> Hi. >> Paul. >> Hi. >> Tyra. >> I. >> Hi. >> H >> I motion carries. The board will now move on to action items. The bill list. Treasures report. District investment report is included in board packet. Could I have a motion to approve payment of the bills? I'll move to approve the bills in the amount of 5,757,65264 as presented. Thank you, M. Is there a second? >> Second. >> Tim, any discussion? >> Roll call
074vote. Hall. >> Hi >> Kyra. >> Hi >> Wagen. >> Hi >> Y. >> Hi >> Bel. >> Hi. >> Which carries information regarding the press plus update 120 board policy revisions has been included in the board packet. Can I have a motion to approve the updates? I'll move to approve the board policy updates as presented. >> I'll second. >> Thank you, Mick. Any discussion? >> Roll call. >> I >> This concludes the action item portion of the meeting. Okay. So, I'm going to be making a motion to close to ajourn. What did I just say? I'm going to make a motion to adjourn to close session for the purpose of uh I guess a point in employment compensation, discipline, performance or dismissal of specific employees. Just so the public knows, uh, this is to
075talk about the, uh, upcoming, uh, superintendent search, and we're going to get into the meat of that a little bit further and come back with some more information to the public. So, um, is there anything else that someone thinks they're going to bring up in close session? I would like to disclose that now of this list. Okay. Then I need a second on my motion. Second. >> Okay, Seth. Thank you. >> All those in favor? >> Any opposed? Okay, the time is uh motion carried and the time is 7:10. Moving into close session.