001on the number six. >> Can we get rolling? Sorry, >> Andrew's going to be late. >> I'm here. Oh, got text. I was like, I'm on the way out of the train. We miss him. [Music] >> Oh, he said [Applause] open. >> Thank you. [Applause] >> Let's go. All right. >> Like to bring the meeting to order and ask that role be called. >> Beron >> here. >> Belin >> here. >> Paul >> here. >> Halbert >> here. >> Waga >> here. >> Yeah. >> I'd like to ask everyone to stand for the pledge of allegiance. I >> pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> You had something. >> Yeah. I
002just have I just want to bring one thing up really quick before we start off. I just want to just have a brief moment of silence for the young victims of the mass shooting that occurred last month in Minneapolis August 7th. Everyone wants to know as a squad. >> Thank you. >> Okay. Thank you, Yousef. Uh >> the board will now move on to public participation portion of the meeting. Dr. Dearman will begin with superintendent's report. Dr. Dearman. >> Thank you, sir. Uh first item, foyer requests. We've had nine new foyer requests this month and there are still two in progress that Mr. McKenzie is working on. Um, next item we have Eagle Talon Award and I will turn that over to Mrs. Ellis to present. >> All right, I brought some special guests with
003me this evening. Um, over the past three years, I've gotten to work very closely with these two gentlemen in my capacity in student services as we plan to proactively address emergencies and our response to different crises. and I got to see Deputy Medina in particular in action about a week and a half ago. Um, long story short, these two gentlemen were helping uh label our trails behind Dunat Middle and Dun that valley. If you've not ridden back there before, there's about five different intersecting trails that they wanted to make sure that they could label so that in an event of an emergency, they could effectively communicate with one another and other first responders. So during that process, there was a medical emergency uh of Deputy Riyle and Deputy Medina was there on the scene to
004respond with medical assistance as well as dispatch additional life-saving support. Uh what resulted was Deputy uh Riy losing over 2 L of blood and obtaining 14 staples in his head. Uh, so definitely was a a very scary time, but we're thankful for Deputy Medina there. I did put down some words I wanted to read. Uh, his commitment to school safety is not limited to responding when something goes wrong, but day in and day out, he exemplifies proactive safety planning by building relationships and anticipating needs. I do know that these two guys like to joke around a lot with each other and with the staff, but as a mom and an employee in this district, I know when something goes wrong, they are the two people that I want responding, and I know that they will
005do so with 100% of heart, now blood, sweat, and tears. Um, it was the moment of true crisis that I got to see Deputy Medina's character revealed. um without hesitation. Um even before putting on protective equipment, gloves, he responded by getting two trauma pads to stop the bleeding while he was dispatching and making sure we got Deputy Riyle back to where he needed to be. He was calm and decisive, and he ensured that help arrived quickly and that his colleague received the care he urgently needed. This level of courage and professionalism is what the Eagle Talent Award is all about. He's super excited to hang this up in his office. Um, and it does say how his actions are in the face of an emergency serve as a lasting example of service to others. And
006we appreciate Deputy Medina on behalf of the school district, um, our staff and families. It's an honor to present you the Eagle Talent Award. [Applause] We're very also thankful that Deputy Rob has made a full recovery. He's still as snarky and sarcastic as ever and has made a full recovery and we're so super thankful for that. So yeah, >> thank you much. >> Thank you, Joe. >> They're not staying. >> All right. Thank you. Um just a quick reminder to the board. Um the budget uh is up for adoption tonight and all seven members need to sign that um so that we can get it turned in. So before you leave um please see Miranda. Uh next item I have is construction update. Uh first we'll go with the uh training center. Uh Dr. Adrian,
007myself Katie, Mrs. Zelis sent in on a construction meeting late last week and in that meeting it was shared uh the progress. Obviously the road is coming quite nicely. Uh we're a little concerned about the weather and how that's going to impact the core of this evening and the timing of that. Uh but we're looking at late September uh early maybe October now with weather opening of that road and having usable for traffic which is huge for us. The second update I have is on the Wilder Way Elementary School. Uh we have the community forum set that has gone out that will be 30th I believe at 6 pm at the Wilder Wake Gymnasium. Ratio Architects is in charge of that and they will be handling the events that evening. Uh next thing I have
008is a congratulations to Dr. Matt Andrews, who was selected as administrator of the year by the Association of Illinois School Library Educators for his dedication, foresight, and unwavering support of our library program. He will receive his award in person October 6th. Congratulations, Mr. Felman. That's all I have. Okay. 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, this concludes the public participation portion of the meeting. The board will now move on to the information discussion items. The next order of business is a public hearing for the FY26 budget. Could I have a motion to open the public hearing? So move. So make is there a second? >> A second. >> Okay. Andrew, is there any discussion? >> Roll call
009vote. >> Falcon. >> Hi. >> Paul. >> Hi. >> Holouser. >> Hi. >> Tyra. >> Hi. >> Yon. >> Hi. >> Okay. Motion carries. Is there anyone who would like to address the board regarding the FY26 budget? Could I have a motion to close the public hearing? >> I move to close the public hearing. >> Thank you, Andrew. Is there a second? >> Second, >> Tim. Thank you. Any discussion? Roll call vote. >> Paul, >> IER, >> I. Cyro >> I >> Wagen. >> Hi >> Y. >> Hi >> B. >> Hi >> Felton. >> Hi. Time is uh 610. Motion carries. The school activity account reports have been included in the board packet. Are there any questions? The FY25 administrator and teacher salary report has been included in the board packet. Are there any
010questions or discussion? Okay. Next, Dr. Darham will present a financial presentation slashupdate. Dr. Dear. All right. Well, for tonight's presentation, I just want to go over some finances. Well, um part of, you know, my job is to share information with the board so that they are fully informed um as decisions are made. And so with that, um that is part of tonight's presentation. The objectives, as you can read, are basically where have we been, where are we at now, and where did we see things going? Um certain things that we I think we can all agree on. The funding of schools in Illinois is not good. Um it's heavily based on property taxes, causes and inadequacies and inequalities amongst different districts. Um we cannot change that. We cannot dictate the funding formula. There's a reason
011Illinois is ranked 49th out of 50th in funding of schools by the state. It's not good. We can all I think agree on that. Um, we also can't change that. Um, but Dunlap is very attractive. You talk to any of the real builders in this area, um, they always steer them towards Dunlap for a reason, and that's because of the fact that our schools are good. That is attractive to home buyers. Uh, I also understand, you know, there's a delicate balance between the attraction of only the good schools, but tax rate and how those two intertwine with one another. Um, but you know, why are our homes worth so much? It's because of the value of the schools. Our dirt is no different than the dirt in Oregon, Washington. And the materials in our homes
012are no different than those homes. Uh, it's the schools that I I believe is the true difference between us and some of the other districts. Uh, we need to continue to invest in our schools. That's obvious to keep them current, to keep them attractive. And then the last item is trying to maintain a delicate balance of uh investing in our schools but also you have to have money in reserves for a rainy day as well. And that 180 days cash on the end is from ISBY and that is the minimum requirement to get a 4.0 on your financial profile score on your AFR. So that's where that number comes from. Um if you don't get a 4.0 it's not the end of the world. However, it can potentially affect your bond rating uh which then
013in turn infects your plants. So, where have we been and what happened? Um I gave a very similar presentation I believe it was six years ago um regarding finances and at that time I made a statement that the path that we were on was not sustainable. And I've heard other board members, some that are still around, some that aren't, make a similar statement. However, that was six years ago, and we're still here. Um, and the path has been sustained. So, was I wrong, I guess, is the question. And we need to look back and see some of the things that impacted where we're at now. Say what you want about CO, but you know, we got $3 million out of that. And we were smart in how we used it. We didn't create a financial
014cliff by hiring a bunch of people that when the co money ran out, no we now we've got no way to pay for their salaries. We didn't spend it on salaries or people. Um we spend it on different aspects of what was needed at the time due to co we did not create a funding plan. Uh one of the things we did is we transferred some excess money that was IMRF and social security to the tune of about $2 million. uh three years in a row of EAB growth of 78%. Um it's predicted to do that again according to county in conversation with Mr. McKenzie. Um the last two years we've been at tier one which is a priority uh tier for funding of the evidence-based funding model and I just gave a couple examples.
015In 23 we got 3.75 million. This year uh 7.8 so that certainly helped matters. um teacher vacancy grant that was about a million dollars. And then just as an example, I can give multiple examples, but um Mrs. Casslet gave me this one and I think it's it's very clear of how we're being efficient. Uh between early release and summer school, we've done some creative scheduling to adjust uh to the fact that uh our staffing is somewhat limited and our space as well. Um by making these things available to students, promoting them and pushing them uh we are able to save 6.4 FTEES by doing this scheduling and people is where we spend our money. So this is a perfect example of one of the things um that the high school alone has done to save
016money. What this is, these are old. This is straight off copy and paste that financial presentation I did, you know, many years back. Uh when the board asked me to provide three different options as far as cuts, if we want to cut millions of dollars, what would it entail? Now remember, 80% or more of our money goes towards people. So if you look at these people slash slashp programs to get to those monies now these are also four to five years old so these are low I'm sure they've all gone up in that amount of time I mean you look at some of those things are those things we you know we tell oursel it's the premier district in central Illinois but are we not going to have you know family and consumer science project
017lead the way uh art some of these other things Here's a second menu to get it a little bit less. You know, 2.7 million at that time. There are some things that you can read. And then menu three, this one, uh, less again, uh, but also trying to make a significant cut as far as dollars go. Um, some other financial matters to consider. I've shared this before, it's not new. Um, and we talk about efficiencies. Our instructional expenditure per pupil is in the 95th percentile of all schools in the state of Illinois. And that includes comparing us to elementary school districts which are less expensive to run. High schools are expensive to run. Middle schools are expensive to run. Elementaryaries are probably the least expensive of them because you don't have the courts offerings and
018different changes that you have at the middle and high school level. Um then you look at the operational expenditure for pupil. We're in the 96. So, uh, I believe we're being very efficient. I would make the argument in both of those categories, uh, we may be the most efficient unit district in the state. So, we have been very, uh, frugal with dollars that we've been given and we're not spending money, um, on things unnecessarily. Uh, our student enrollment has increased 1,200 students in the last 10 years. That's equivalent to Princeville Grimfield being absorbed into the DAP school district. Uh, their entire populations. However, the supplies to each of the school buildings has not changed in that time. So, buildings are asked to do the same or more uh with equivalent dollars even though they have
019significantly more students. And then we really haven't hired in the last three years except for those that are mandated either by school code uh or uh dictated by class sizes. And we're just got too many students. We need to have a section just to make it work. Um the financial data that I'm using uh come straight off the AFRS except for 2425. Um those are from Mr. McKenzie. Those are un audited because Lawrence hasn't finished their audit yet. And then 2526 is a projection based off the budget that Mr. McKenzie presented, but the others are are straight off the AFRs provided to us by Dorance. Um here's just a big overview of of the different graphics. Thank you to Mrs. Ellis for helping me put these together. But here's revenues and expenditures. And I'll get
020to a slide that I think shows this best of all. Surplus deficit. I think this one speaks volumes. So if you look at this, you got to take some of it with a grain of salt. For instance, uh last year's 2425 shows a negative $1 million, but part of that was the Chromebooks that were put off and pay proof at a later date, but we're cash based accounting, so if it's done in this fiscal year, it has to count this fiscal year or um you know, that's in there as well. So, but you know, it's a very clear and obvious trend. We've been running roughly a million dollars or so deficit for for many years minus the co year fund balances. You can see a trend. Um the top line shows a linear regression as
021far as the ed fund. Um a pretty clear and m stayed fairly static and then transportation up until recently fairly static but we've been transferring some money out of there. Um, so you'll see that dip a little bit and that's to pay for some of these other things that we're talking about. This is a perfect example of working cash. We put money in that for years and not really touched it. Um, and then you see this big dip um because we transferred money out of there to cover the training center. Um, this slide I think is very telling. Um, it's as straightforward as you can get. Um, revenues and expenditures. um this assumes in the last years that are projected a 5% um growth in EA or revenue and then a 7% increase in expenditures
022and I think those are very realistic uh expectations in those numbers. Uh if you look at this the revenues and expenditures um they are not going in the right direction. And that can be seen here as well. Um if you look at uh the expenditures that's the top line you can see a very clear linear progression going up and that's to be expected. We understand that um revenues are also going up but not at the pace um that the expenditures are. We have a gap that is being created. Now this does not include any of the major structural work or other projects. Dr. Adrian put together a spreadsheet and I believe that's $17 million worth of um that was over the course of five years I believe. I went back to him and said, "Okay,
023I understand that, but what are some of the things structurally that we have to have?" Um, and he brought up some of, you know, these THS RTU air handler units. They're 1997 models. They're 28 years old. Um, they're not going to last forever. And kudos to our maintenance staff and Joe Wolf and Tyler uh for keeping those things going and piecing them together. you can only kick this can so far down the road. So, these expenses are coming. Um those other expenses that are not in the projections that I gave to you. Um the playgrounds, we're going to put a new playground in the Wilder Wait. Um it's going to be the Port Rubber Surface. My recommendation to the board is we need to do the Port Rubber Surface at the other four schools. Um,
024if we don't, I'm afraid we're setting ourselves up for a potential problem. Um, we've done the engineering with fiber mulch. It has got us by to this point, but it's needing some attention, too. And I believe it's about $20,000 to bring in a load of that top resident. >> Yes. >> Okay. Um, so the cost for the playgrounds was about $1.4 $4 million to do all the playgrounds, not including modeling the other four uh in the for service. And if you look at these items, uh Dr. Avery's done a very nice job of breaking these down into more manageable chunks each year. Um so the total, as you can see, is about $3.5 million roughly. Um that may change a little bit as time progresses and costs adjust. Uh but those are the major structural
025needs and you can see down the bottom left you know it doesn't include the annual O and M1 on kitchen stuff doesn't include any summer project doesn't include capital projects um there are several things that aren't there but this is like the musthaves that really can't wait as far as our district goes uh our district is not really going to change too much uh this is the projection from decision site which has since been excuse me purchased by power school and they give a conservative and a moderate prediction and they've been very very close. So they had us at 4825 that's exactly to the number well I'm sure it changes every day but last time I checked they was spot on perfect. So these numbers are very realistic. So, as you look at this, we
026are going to continue to grow, but then we're going to level out. It looks like about 5,100 students, somewhere in that range. So, I don't anticipate dramatic growth, but I also don't anticipate us losing enrollment either. Um, some area tax rates. Um, ours is $444. You can read for yourself what some of the others are. Some of these aren't really fair comparisons, I don't think. I think the Washington average is probably a fair comparison. And Washington is at six and a quarter if you average their three elementary districts in with their high school. U Morton's probably a good comparison as well at 528. Uh some of these others maybe not so much. So then, you know, what are the solutions? What are the remedies? Um are there cuts that can be made? Of course, there
027are always cuts that can be made, but when you're looking at the discrepancy of of millions of dollars, and we don't buy a million dollars worth of paper clips every year, and I showed earlier with the 95 and 96 percentile rankings, how efficient we are and we are, and I've done a breakdown before, I won't do it again, of every dollar that comes in, how much of that is really liquid cash. Um, it was not much. Uh, so if if we're looking to make significant cuts, it's going to come in the form of people. And that's why I wanted to show those older menus from many years ago. It's going to come in the form of programs and people. It has to because there isn't just enough meat on the bone anywhere else to take
028millions of dollars away. Um, in my personal opinion, I don't think we have an expense problem and I think the data reflects that with our percentile ranking. Um, we have an revenue problem. Our education fund rate percentage. Now, I know our EAP has grown. So, our percentage, our slice of that pie has not changed. Now, the numbers have grown because the pie's gotten bigger, but the percentage that we take hasn't changed. I went back 25 years. That's as far as I could go, and it hasn't changed. Well, think back, Don. You can think back. It's your birthday. Many, many years ago, uh 25 years ago, how many school psychologists, OT's, PTS, counselors did we have? Very, very few. Now, we have a lot more. And I'm not saying those aren't needed. They certainly are. They
029certainly have their place. I'm saying that the demands on the ed fund have increased so much but the percentage that we asked for has not changed regarding that. Um so then there was the question you know how how do we do that? What do we do to close the gap? Because the path is not sustainable and some of the re recent expenditures um have expedited the timeline of where the rubber is going to meet the road as far as expenses are going to outpace revenues and we won't have the ability to get into reserves to pay for them. So what's what's the remedy? What's the solution? Well, there's several. Um, you know, this is not the first time I've talked about this. A 30 cent tax increase that would still tie us for the lowest
030tax rate of anyone in QR County. And the impact on a $300,000 home would be 282 hours. Um, do we need to do that? No, I don't think we do. I don't think we need to do that because if you look at this the days cash on hand on these projections um you know we're fine in 2014 2 uh627 looks like we're okay and we dipped below that 180 projected in 2728. This is a difficult calculation to come up with because it changes every year. Um it the cost to instruct a pupil change. I mean, there's several variables that go into that equation. So, these are estimates, but they're going to be ballpark. They're going to be close. So, I'm not asking the board to do anything at this point. I'm not recommending anything at
031this point. just making people or the board aware um that some of the recent decisions have expedited that timeline of when revenues will out excuse me expenses will outpace revenues and we won't have the reserves to fall back on to pay some of those things. So we need to look at different options. There are three different ways to do this. We can do a referendum um that would make it permanent if we want to do a 30 cent 40 cent increase whatever we want. Um, you do a referendum. Uh, you can do working cash fund bonds. That's that is the most common way according to Bernardi Associates who's handling our bonds. I asked what percentage of the schools in the state do that because we've done it before. We did it with the IRF and
032Social Security. Um, he said between 75 to 80% of the schools do working cash funds. It's not uncommon. And I said, 'Well, what about the 25 or 20 20 25% that don't? And he's like, some of the suburban schools don't need it. They're flush with cash or others have done things where they've made it permanent. They don't have to issue them their year. They did a referendum. They got an increase. So, they don't have to keep going back to that. The next question is, well, why, you know, 30 cents? um 30 cents because that that still tied us for the lowest and also it just made the numbers easier. 30 cents $300,000 home roughly 300 bucks. It's just easy. There is no rhyme or reason to it. We can do other things. So that is
033my financial report as far as the status of the district as I see it. I confirm this with Mr. McKenzie. He helped me with some of the numbers. Misser and I have discussed this. She helped with the numbers as well. Um, she agrees. So, we've got three people looking at this and all coming up with the same results. So, I believe the data is reliable. Questions you have for me? >> As a district, have we ever ran a referendum to increase the tax rate? >> Not that I'm aware, >> but again, I don't think that's necessary at this point, but maybe you were. >> I'm just curious. Historically, we've looked at 12, 13 years. I I knew we hadn't since we've been here. I was just curious if anybody knew the history there. >> Not
034that I >> Dr. Durman, can you go back a few slides to the the red numbers? You know which one I'm talking about? >> And and I understand there's nothing that needs to to happen today. I get that. Um and uh thank you Dr. Dearman for taking time to make with me and go through this. You know how I like numbers, right? Um, you're looking at 28 29 I'm going to look at my screen because that's a little small for me. 27 28 2.8 million $3 million. 20 28 29 4.3 29 and 36 million based on this. And this is a 7% increase in expenditures which if you look historically you'll you'll see that and and that's going to happen, right? because most of it is people just like you said 80% plus is people
035right um I'm looking at the the budget just for this year and and I know this is in your in your uh projections but this year alone for the 20 uh for the next year or the current we're get we're going to get an increase in evidence-based funding of 1.6 million and I had that conversation with you that's not going to continue at 1.6 6 million. We don't know what that's going to be. We have had an EAD increase of we're expecting 7%. It's been three years already at that, right? I think this will be the fourth year. Um I guess my big concern is where we're at here and and same as you have, right? Uh we're looking at 2627 or 2526 $400,000, right? Then we go we go up to one a.5 million.
036If we can't get there with this these type of increases with evidence-based funding, 7% increase in EAB, I just got a huge concern and I know we've been using reserves and I I know I've been saying the skies are falling. I get that. But we're we're seeing that right here and we're going to see that. And I guess my question to you is is there something that we can start proactively now whether and I know you guys are looking at that you uh Mike McKenzie proactively now to take a look and do that deep dive and I know it's 80% there but we have to come up with something um I know how it's affecting people in these increases in these property taxes. I hear it. I hear it on the I think everyone else
037probably hears this too. It affects everyone in this room these property taxes and how they're going up. Is there something that we can proactively do and I' I've requested this a finance committee right to take that deep dive. Maybe there is something there may I you know I don't get into the weeds right as board we govern that but what are your thoughts there? I know there's different different triggers you can pull but I think at any given time what happens if that increase when we're saying 5% next year's one. Where's where are we going to be then? in Yeah. You see what? Yeah. Exactly. Exactly. >> Yeah. So, I'm I'm just asking if we could be proactive. I know the the you know, the sky is falling for me when I see this. Um
038but just want to know your thoughts. I just want to get ahead of it. >> I I completely agree and that's part of the reason I I'm here now before things get in crisis mode because we're not in crisis mode. We're okay. We're now >> right. I agree. We need to get out front of this. I've been saying it for a while, but it's been expedited now. We go back to this slide. This shows these negatives. I mean, that's not great either. And trust me, people are looking at this. I got a call yesterday from Bernardi who's doing our bonds, and we'll be discussing that later. 44 million. um investors called them and asked uh you we see some deficits fund transfers what is the district's plan to address these shortcomings in these operating costs
039um and my response was we don't have a plan we are in discussion and actually a support agenda item Monday night we are aware but people are looking at it is my point and uh you know, those experts in the industry see that it's a problem. So, we we need to address it. As far as your question goes, you know, can we do a deep dive? Yes. But if we're looking at millions of dollars, um I'm just telling that's going to be an important piece and I just have a hard time recommending that to the board when we tout ourselves at the premier district, but we're going to be cutting programs and people that I think make us attractive. That's what separates us from some of the others. Yes, our tax rate is low. I'm
040not arguing that. And our homes are worth more, but why are they worth more? We don't have special dirt here. We don't use special materials in our homes. It's the same dirt, same materials they have in Washington and Metamora and Princeville. So, why are they coming here? Well, those two factors. So, they are intertwined and I think there is a balance there. So, I think we still need to keep that tax rate low, but also be realistic. This district lived for a number of years off that exponential growth at EAB, and we've lived off of it for the last three years, but that's not going to last forever. We've had years where it's declined, my first two years, then it leveled out, and now we've seen these increases. I don't really like doing projections to
041be honest because if I would have come to you four years ago and said you know what I think we're going to have three years of 7 to 8% growth at that time you would have ran me out of here as being crazy never predicted that to happen. So with that um I think the linear regression models that I show are very clear and that expenses are going up, revenues are going up, but there's a gap between them and it's only growing and we have to do something to address it. The deep dive is certainly a good >> and I think that's I just want to make one more comment. comment. I think that is imperative that we do that because if you go back to that slide once again, um 2829 2930, you're looking
042at 4.2 and 5.8. Even if you would do that 30 cents, that's a bandaid, >> right? We we've got to take a look at what we're going to do as a district. I I I won't be on this board and I want to leave this district or we're not going to have people in 2829 saying what do we do now? That's that's I I want to leave it better than better than it was. Right. So just make sure that's where I'm at because I can see that writing on the wall and that would just be a band-aid fix if we don't take a look at that. >> Any other questions? Thank you for your time. >> Thank you, Dr. Dman. Appreciate all your work. Thank you, Mr. McKenzie. >> I guess I just want to
043uh comments all I have is um I want to follow up a little bit here on So, Dr. German, I mean, you uh acknowledge that, you know, the deep dive isn't going to get all or exactly all of what you need, but I think you said something like it's a good place to to start. I mean, and I know Teresa had uh thrown out the idea about a the finance or a finance committee back in July and an email. circulated it around a little bit. Then it was talked about and then well it's got to be open and who would be on it that kind of thing. I mean should there be a dedicated no more than a couple board members but continuing this conversation instead of waiting till the third week of October for
044the next time we talk about it >> probably. >> Yeah, I think that's a good idea too. So, I'll work with um you Dr. Dearman and um I'll reach out to Teresa and then maybe pick a different another person to well ask Teresa if she'd like to participate. Find another person to join in. >> Tom, are you within the next before the next meeting? Is that what you're saying? >> Yeah. >> Okay. You'll have to pick another I I'll talk about it after this, but I can't I can't be on that committee. So, somebody else on this >> Yeah. Well, I'll talk to we'll want to make sure that we get to the right. Um I'm just saying to continue the convers agenda and again, you sent out that email in July and here we
045are two months later. Um but um I mean there are things literally on the agenda that uh I reached out to talk to a couple people today about that I haven't given a lot of thought to since we got together in August. And that doesn't happen very often and it's not the entire agenda or anything like that. But just refreshing myself today. Um aside from returning all the phone calls to people, thank you. Um, I did take a look at some of the items and as a refresher and again this group does not doesn't have the ability to just get together and hash things out as you can in like the real world. So it's very different for us. So it's a lot of individual phone calls and conversation. So I will u I'll make
046sure that some collective gets together uh between now and the next meeting. We can all send you our list of deep dive suggestions, can't we? >> Yeah, you might be closer to the >> Let's get that started. >> Closer to the >> I got, you know, than you think anyway, Tim. So, yeah. Okay. You'll just bring it to the meeting. Let's see. >> So, you're you're you're volunteering, right, Tim? To be on that. >> That's what you get for >> No, I didn't. >> That's what you get for talking first. >> That's what I heard. That's what I heard. That's what I heard. >> All right, moving along. Um, information regarding the 2026 bus and fleet purchases has been included in the board packet. Are there any questions, discussion? >> I think I'll come back
047next month. >> Request. >> That's good. >> A good time to ask for money. >> Well, did we did we skip them last year or was that two years ago? >> Two years. >> A couple years ago. We did three years. >> Yeah. We talked buses last year, right? >> Yeah. >> Right. We bought some last year. >> We did. Yes. >> I'm sorry. >> Yeah. We bought less of us. Yeah. >> Okay. >> It's been about between 400 and 600,000 the last couple years. >> Yeah. Yeah. Yeah. Yeah. >> So you you saw my rationale. >> We have 70 70 vehicles and that's not including the 50 other engines that Brad maintains throughout the year. So they're it's just overwhelmed over there. And if you just do the simple rotation, you're driving vehicles that
048are 20 23 years old if you only do three years. Uh we put a lot of thought on this. The the crazy thing is if you go back to my first presentation this role I think the buses were $115,000 and all the things that we absorb during as a district whether it's labor costs going up materials cost going up I don't know anything more than buses but that's the simple fact of what they are and that those are the costs. Uh these are really high quality buses though these are I mean for about the same amount of money we're getting a much better bus than we were previously. Uh Brad Swman is a master mechanic. He's a component of these buses. So the other vehicles we've got in there are just budgetary items that we
049believe we can get vehicles that are good vehicles for that cost. They're not specific cost, but the buses are just >> we transfer money out of transportation fund, right? 2.2 million. >> Yes. >> Is that correct? >> Correct. But there's still plenty of reserve balance in there. >> Yeah, I agree 100%. Yeah. >> But when you're talking about the price of buses, right? >> Yeah. >> Just saying that, you know, we do get the dollars into the transportation funding. I know they were transferred out. >> Well, when I was doing my preliminary budget, I wasn't expecting the buses that at all. I thought maybe 140 150, but >> no. >> Yeah. >> And Brad would say, "Hey, we can bring this up and both people are going to say the same thing." That's just what
050>> Right. Right. Right. Right. I did everything everything's high. All right. >> Thank you. >> I think the semi market actually has softened from the truck market has actually softened a little bit >> in the last two two years. The semi market has actually softened a little bit from my rec. >> Oh, really? >> Little bit >> because there was a shortage a couple years ago and then now they're starting to catch up. Well, I think the availability is a little bit better turnaround time, but cost for us. >> I don't remember what the wait time was. I know it was over a year at one time. >> Okay. >> Yeah. So, small buses. Now, you got first the activity bus of last year. Those have been a huge help. Now, you're still going to
051hear complaints, but there's some large teams that we can't transfer transport everybody on that team all the time. But those activity buses have eliminated the stress on the actual certified CDL drivers. Coaches can drive those and they've been much appreciated and alleviate a lot of pressure on those get news all the time. >> That's great. >> So it says 64% will be reimbured to the district over the next 5 years. >> Yes. For buses and the transfer students we get reimbured. It used to be closed to 90% they prorated it to 75. 80% they keep that 80%. >> So we get a lot of that money back probably closer to 60%. >> Okay. Thank you. This concludes the information discussion item segment of the meeting. The board will now move on to the consent agenda.
052Are there are there any questions or discussions regarding the items on the consent agenda? >> Could I have a motion to approve the consent agenda? >> I move to approve the consent agenda as presented. >> Please say is there a second? >> I'll second. >> Nick, any discussion? Roll call vote. Hi >> Shyra. >> Hi >> Wagen. >> Hi >> Y. >> Hi >> John. >> Hi >> Belman. >> Hi >> Paul. >> Hi. >> The bill the board will now move on to action items. The bill list, treasures report, direct district investment report and bank statements are included in the board packet. Could I have a motion to approve payment of the bills? I move to approve the payment of the bills in the amount of $5,645,2214 as presented. >> Teresa, is there a
053second? >> I second. >> Andrew, is there any discussion? >> Roll call vote. >> Wagen. Hi Goldman. >> Hi Paul. >> Hi Tyra. >> Hi Motion carried. Earlier this evening, the board held a public hearing regarding the fiscal year 2026 budget. At this time, I would like to ask for a motion to approve the adoption of the budget. Could I have a motion to approve fiscal year 2026 budget? >> I'll move to approve the adoption of fiscal year 2026 budget as presented. >> Thank you, Nick. Is there a second? >> Second. >> Thank you. Yousef, is there any discussion? The only thing I'll note for discussion is that [Applause] I believe that this is the um this is it is a deficit, but I think it's the smallest deficit that we've budgeted for uh in
054the last five years. And so uh I don't think we were given I don't think we gave the administration the mandate to obviously you want the budget to um to level out but um I I I know we didn't tell them to only bring us a budget that was uh that uh broke even. Uh we told them to give us what it looks like. And so, um, based on Mr. McKenzie's comments from last meeting, I I took them to mean it was conservative. So, I'm hoping thinking that it'll be better. But, um, some of the, you know, earlier comments notwithstanding, I mean, those are real and that's where we are. But I am booied slightly by the fact that it is at least while I've been here the smallest budget deficit um in 5 years
055that we're approving um ahead of the next fiscal year. So thanks for the hard work on that Mike and everyone else. Any other comments? Okay. Uh roll call move. >> Yeah. Hi >> Felman. >> Hi >> Paul. >> Hi >> no. >> Kyra >> I wag >> hi. >> Okay motion carried. Then remember to uh sign that. I think regardless of how you voted we still need one signature. Correct. Correct. Okay. Thank you on that information regarding the resolution providing for the issue and sale of approximately 44 million of debt certificates to build and equip a new elementary school building, build, equip, and renovate school facilities and improve school sites has been included in the board packet. Could I have a motion to approve the resolution? I wanted to make the comment the 40 where
056did the 44 million come from? See if we can get a motion first then we'll have discussion or you want to make your comments first then get the motion then have discussion. >> Correct. You make comments first change that. >> Sure. Um that is assuming with wilder weight we go with I believe it was called option one which was before uh prek classrooms and uh early childhood bright future the additional road uh I think that was the B road as they had it on the label from last time and according to Mark BB of ratio and P Kirk Anderson and PJ hair that hallin cost was about $43.5 million. So I rounded up to 44 because with these you can always take less, you can't take more. So that's where that came from. This does
057not include the playgrounds that I spoke of at the other schools. Um does not include any of Dr. Adrian's structural work. Um the verbiage on the resolution is written in such a way that if we were to do more uh we would have the option to do that and spend it at other buildings besides Wilder weight for building improvements which obviously air handlers and those things will qualify for that. So that is the logic behind the initial request and some of the things that are not in that request. >> Dr. Dear I don't have my my information from last meeting but what was that the second one was the first one 690 am I they thinking right >> students >> is this the second >> this has always been for a school of 700 to
058750 >> okay I thought there were three numbers from last year >> so it was the original and then option one and then option two >> square footage >> you had the original and then option one was with the four classrooms And then option two was with the six classes. So this is option one. >> This is option one with the road. >> Okay. Got it. Thank you, Mr. Feldman. >> Okay. Now, could I have a motion to approve the resolution? Move to approve the resolution providing the issue and sale of approximately 44 million of debt certificate to build equip new elementary school building equip and renovate school facility at school sites. >> Okay, thank yousef. Is there a second? >> I'll second. So this you only use 4 to2 million on the school. The
0592 million is just up for discretion by who? >> By school board. You have approved expenditure. Yes, >> I'll second it. >> All right. Thank you. And do you want to add I mean because you and Nick participated in this so I assume you're comfortable and you you and Nick were cool with option two in the road. That's how >> you're good with that. >> We'll cut it for prek rooms. >> Okay. Did you want to say something there? >> I'm just Dr. German. So, are you you're not suggesting using additional bond funds for these projects that you mentioned? You think this 44 is maybe allow for that potential? potentially according to what Mark and Kirk said, 43 and a half million. But if we can value engineer that back and have a couple million
060left out of the 44, then the board needs to have a conversation when we go to actually issue the funding bonds. How much do we want to issue? But I I don't see it changing much from the 43.5 million. Um the actual quote of what it's going to cost to build a building. So no, it does not include any of the extra stuff. You had a motion and a second. So you >> Yeah. Other discussion. >> Yeah. I guess I have a question. And this really dubtales into Dr. German's presentation earlier with the all of these items that we know we're going to have to take on for the construction uh maintenance, construction, other things. whether it's air handling systems, roads, all these things coming that that we know that those expenses are going to
061be there. Is there any reason not to want to amvertise some of that over the longer term of bonds as opposed to being put in a position where where we're bootstrapped year after year? And so I guess the question I'm asking is from the from your perspective, Dr. impairment is is it better to pad this number with something so you know you can get those other things done as opposed to again each year kind of coming back and saying hey look this roof needs done these air handling things need done we've got to find the money for that and us being the same point over and over and over again >> the that's a great question and the short answer is um there is a cost I mean it's borrowing money and there's going to
062be fees associated with that in the forms of interest. But um you know those playgrounds I'm I'm telling you we need to do the other four and we're setting ourselves up for a failure if we don't. That's $1.4 million. That's not in this number. Um those air handlers are 1997s. Uh they're not going to last. They they just won't. Um that's going to have to happen. That was another $3.5 million. So, you know, there there is a cost associated with it. You want to pay now or pay later, but the money is going to have to come from somewhere. This would provide an option to get the money and delay that conversation that we just had about potentially having to raise taxes further. Uh if we don't, we're going to have to take that money
063out of reserves, which is only going to expedite that timeline, I'm afraid, even I think you guys are saying different things though, right? Cuz you're So you said we got to do the 44, but Nick is talking about making the number bigger, >> correct? >> Okay. You're saying so >> and there there is a cost associated with that. There's no denying. >> I would think that that we should look at we should have that deep dive first. Dr. Demer Dearman, I I uh you know, these are operating funds just like if you if you have a house and you have maintenance required, right? You need a new roof, you need you keep borrowing. I'm just uh I'm I I just think we need to look at the expenditures and where we're at and go from
064there before we make a decision to to do that. If if the board wants to do that, that that's up to the board. >> I think we have a motion in a second with it. >> Yes, that's where I'm at. Not 48, not 50. I mean, this is taxpayer dollars once again. >> Okay. Any other comments before I call the question here? Seems like there's some enthusiasm. Roll call though. >> Iman. >> Hi. >> Paul, >> no. Hower, >> this is for the 44, correct? >> It is >> 44. I >> Okay, motion carries. Information regarding the replacement of the pool filtration system has been included in the board packet. Could I have a motion to approve the pool filtration system replacement? >> The board has three options here. One option is do nothing. It's
065always an option. uh not what I would recommend. Uh second option is to replace it. Uh Dr. Adrian cost of that 200ish thousand. Uh can you please go over those timelines again so the board's aware? >> Yeah. So the existing system was put in in 1990. Uh it is a sand filter system and it's my understanding that to the best of the knowledge of the company that serves us for the last 15 years, the sand has never been replaced. The sand makes it when you replace it, it makes it more efficient. That being said, our system is pretty efficient right now, but it had a 25 year life expectancy on much like hot water heater in your house, right? And I have one in my house now, and I replaced it by now. And the
066Lord said, "Don't touch that thing because it could last another five or six years. And as soon as you touch it, there's no guarantee the new one will will last five or six years." You know, that being said, having gone through this last process with the coronator, that process took six months. And that was an easy switch in all of our minds because we're just taking the updated version of that corator that's about this big and putting in the old same brand, same function, like for life. Okay. Well, that was an easy one for the engineers at the state to decide, yeah, that's okay to do. Six months it took that process. If the filtration system goes down, that's going to be an entirely new filtration system. Okay? There's not one, they don't make one
067like the old. That's going to go through even more rigorous uh review process. So, that process could take 8 to 10, 8 to 12 months to get the health commitment for that. All right? That's a long time. So that that heaven forbid if that filtration system was down tomorrow or next month you can even if we had a permit like that it would take a minimum of six weeks three to four weeks to get materials two weeks to install minimum of six weeks. We know when that pool down for 6 days the the hardships that it causes for the swimmers and the parents that are involved in that by transporting them all over the place. We know what six days looks like. Uh unfortunately we know what several months look like recently. I can't imagine
068what it would look like for that program if it were down 8 to 12 months because that's really your only recourse. You've got to submit all the drawings. It goes in the queue and a bigger project like that is going to take more time to review. >> Okay. So, I just want you to be aware of that. Yes, Tracy. >> Okay. So, I I'm not I'm not a swimmer. So, help me understand this. Right. So, if if you do this today, this replacement system, what's the timeline? >> Okay. If we do this today, we I think I got to talk about Mr. McKenzie. We're not quite sure about the scope of this work if it's specific enough that we don't have to bid it, but we may have to bid that work out. That would
069take probably three to four weeks to bid that out appropriately starting tomorrow. >> And then from that point on, it would take a year. >> When I'm talking timeline, okay, how long would the pool be down? >> It's tough. I know you have to go through the bids and everything. replaced it. If you replaced it >> if it continue to run >> if but if you if you spent the 1859 or whatever your quote said, how long would that change out be? How long would that take? >> It takes two weeks to do the change out. >> Two weeks. >> Yeah. Once we get everything online, it takes they say 10 business days. >> And and once you do that, what's what this replacement system, what's the life of it? >> The life expectancy? >>
070Mhm. 25 years. >> 25 years. >> Well, it's a 10-year warranty, though. What I read, >> I mean, in the document, >> if you put in a new system, what is the life of that system? >> That's the new system. >> Well, this this is a replace. So, this isn't So, you're Okay. So, that's the same thing. >> You were talking two different things. If it goes down, it's going to take >> so much longer. >> Yes. If it goes down, it's still the same process. >> Okay. So, it's the same system. >> The same, right? >> Yeah. So I'm just what I'm doing in this multic is to try and get you aware of it so that you can't say or you don't well if you move out why didn't we do something about
071it you know because it really is going to be a major hardship on those programs if that thing goes down >> so this would be two weeks versus if it goes down and we don't have this in place 8 to 12 months a year right is that what I heard >> yes >> it's no brainer okay thank you thanks for thanks for clarifying appreciate I'm fine with spending the money to fix it, but can we get other bids? We're going to get other bids. You said you might want to bid it out. >> I think again, we had to look at the particulars of this particular services provided. If it's specific enough, we may not have to bid it, but I'm thinking there going to be other >> I wanted to I wanted to regardless
072I don't know the company you're working for, but can't get a second one bit anyway. >> I think it's only fair for I mean, how many times have they come public participation and talk about the pool? I mean, we got a new training center where we're getting, you know, probably different sports or giving attention to the pool not getting any attention, but at minimum we can do is pass this to get this, you know, make sure they're on the right track. Just like last time they talked about tennis courts and next thing you know, you brought up to me and Nick that you had a conversation with that playing field. Now they're going to be able to play tennis and volleyball there. So, I think in the pool it's only fair for them to get
073be able to do the sports that they want to do. Don't treat all students equally. How long ago was it, Tim, that we you you were on that that we >> 2019 that we did that. Was it that long ago? Is that what you said? 2019. >> 2019. >> Yeah, 2019. >> Okay. >> All right. Seemed like it was just yesterday. >> The previous 2019. >> Okay. Wow. It's been a while. >> That was not like 155. >> What was that? It was like 155,000 in 2019 and now it's >> Didn't they spend much more on it for something >> on different things though? That was one of the that was one of the several fixes or things you were going to do and that one came off >> thinking it would last another six
074years. >> It was discussed what they decided. >> Yeah. Yeah. Yeah. >> Right. >> Okay. >> Could the pool replacement could that come out of the bonds and all? >> It potentially could if there was excess funds. Okay. >> Potentially. Okay. Any other questions on that? >> I did have a conversation with Mrs. when she left, Mrs. Huntington, she was here out in the hallway at the last meeting um about you know the pool in the 70s when it was built was a very nice pool. It's just it's outlived its usefulness in my opinion. Um and I believe she's right. It's not up to our standards. We we need to do better. But the where it's at, we couldn't do anything more with it than what we've done. I think the only other option is
075to look at a new pool. And I pitched the idea to her of running a referendum, uh, similar to what Olympia did. If the people want it, give them the opportunity to vote for it and let the voters tell the board what to do. Um, if it's really desired, they'll come out for it. And and she was agreeable to that. Just it would take some time and some effort and some coordination to get that going. I don't think we're at that point now, but I think in the near future, um, as we continue to look at this pool and the 150,000 or more it costs a year to run it. Uh, is it worth putting the money into it or do we need to look at this other option of potentially building a new pool
076if the voters decide to do so? Again, not ready for that at this point, but something for the board to consider. >> And I'd love to tell you that this will solve all the pools problem, but it won't. I mean, we're just replacing part of an old old system and shutdowns happen. Even our new HVAC system, I say new 5-year-olds, we've battled that the whole time, most of the shutdowns because of the Hback system. So, I just wanted you to be aware that we have antiquated piece and it is important to the community that it's not shut down for a year. >> Yeah. >> Okay. Could I have a motion to approve the pool filtration system replacement? I move to approve the pool replacement system that's presented. >> Is there a Thank you, Andrew. Is
077there a second? >> Do you any more discussion? >> Okay, roll call vote. >> My only comment there would be like is it imperative present time to to do this if in fact we're going to have a referendum in a year and now we've spent 200,000. the voters say, "Yeah, let's do a new pool and now we put another 200 grand into this pool." I mean, if it's not imperative today, that's my only comment. Do we need to vote on this item today? Can it be postponed? That would be my thought to flesh out this referendum concept a little bit more. >> Well, um, the answer to all that is sure. I mean, it can be pushed. I mean it can be flushed out more. The problem with the referendum is let's say it goes
078swimmingly. You guys get it? Okay. Yeah. Thank you. Um let's say it goes swimmingly. That is 15 months from 14 months from now 13 months from now. And then you're talking about say let's say it does what it's supposed to do. Then you're talking about building one after that. And so that's another year. And I don't build many pools, but probably a year design, plan, figure out where it's going to go. So you're really talking about even if that worked, it's two years out. And that's movement. Two years out of both of those things coming together. So I get where you're going. I mean, I actually use the analogy loosely about uh, you know, putting new tires on a car you're about to trade in. had that conversation with administration, but I came back to
079the same thing that conclusion that I think Teresa sort of uttered earlier about just the, you know, being pragmatic about it. So, but to answer your question, no, it does not have to be none done now, but you are potentially rolling the dice. Um, that it will it is functioning now and then it will continue to function for, you know, if this were to go through a couple more years, but if it goes down, you just lock kids out of swimming for 6 months or more. >> And and if I thought it was a, you know, 30, 60, 90 day kind of, you know, let's study this. But again, you're talking about not knowing anything more about that for another 13 months. Are they in there every day right now? Swimming. Swimming, right? It's It's
080like their season. >> Yeah, it's real season. >> They're there whenever we're there. >> Yeah. We can't Yeah. >> You don't need the 200,000 to start a permit process, though. You can get that started now. You >> want to be able to solicit the bids. >> Yeah. >> Or you get the process going if you you approve it so that you know you're going to get a a proposal. Here's the final bid for 200,000 189 whatever bids. >> But I need that I can have your approval before I go do the bidding process. >> Yeah. It's a number not to exceed 200,000 at this point. >> I mean, well, it's 189, but you got to figure any extra plumbing they need to run the new system. You got to figure something that the because it
081takes so long to get the permit. Do you order that equipment before you get the per permit or do you wait till the permit comes and then order? I don't know what the order only takes three to four weeks right now. Okay. >> So, that's not the issue. It's like Ted said or maybe Tom, if it was down for six weeks and we could fix it in six weeks, that would be a problem. We'd all deal with it, right? It's just that long wait period for the permit is what that's what I'm bringing to you. >> And my question is, can't you start the permit tomorrow without us even >> Yeah. Well, I'm not I can't start the permit without a vendor who can authorize the permit, do the engineering specs, and send it. We
082have to have a vendor in place >> with his with his with his engineering on it, send it off to the state, >> right? Go. Yes. >> Okay. We've got a motion in a second. >> Tom, can we put a not to exceed on there? Do you want to do it that way or just >> because I know you said that. >> Yeah, I meant what I said. So, yeah, not to exceed. It was said somewhere 200,000. I didn't make that up. Maybe it's not written right here. >> Yeah, >> that was a proposal. >> Okay. >> The bid was at 189, >> right? The bid was 1856. >> I see. I see where the confusion is here. So, it was presented, but it was presented as it's in his memo that says not to
083exceed 200,000. >> Yeah. Okay. >> All right. We had a motion and we had a second and we had some clarification here. So, we'll call vote. >> Wagp. >> Yeah. Hi >> Felman. >> Hi >> Paul. >> Hi >> S. >> I say that motion carried. Information regarding the semianual review of close session minutes has been included in the board packet. Could I have a motion to approve the recommendation that the closed minutes from July 17th, 2024 through January 15, 2025 remain closed? >> I move to approve the recommendation. >> Okay. Thank you, Tim. Is there a second? >> Second. >> Teresa, any discussion? All those in favor say I. >> I. >> Any opposed? Okay, the eyes have it. Time is uh 7:12. This concludes the action items portion of the meeting. Is there
084a motion to adjourn to close session? I'll actually move to adjourn to close session for the following purposes as stated in the open meetings act. I have two at least here. A the appointment employment compensation and performance of specific employees and B student disciplinary cases. Anything else anyone wants me to add? Okay. Is there a second to my motion? >> I second. >> Okay. Thank you, Andrew. Any discussion? All those in favor say I. >> I. >> Any opposed? Okay. 712. We'll be back. Come on. Yousef. Is there a second? Second. >> Nick. All those in favor say I. >> I. >> Any opposed? Time 7:40. Do I have a motion to approve the human resources consent agenda? I move to approve the human resources consent agenda as presented. >> Teresa is our second. >>
085Second. >> Rick. Any discussion? Roll call vote. >> Hi. >> Hyra. >> I. >> Hi. >> Y >> I Spelman >> Is there a motion to adjurnn? >> I move to adjourn. Andrew, is there a second? Any discussion? >> You got it. >> All those in favor say I. I. I. Any >> opposed? Motion carried. Reading and journ. guys.