001going to ask everyone to please rise for the pledge and then remain standing afterwards. Thank you to the flag of the stands. One nation under God, indivisible, liberty and justice for all. >> So since our last board meeting, um we're saddened again. We have lost um a beloved teacher, uh Mrs. Patricia Dico, mostly known as Patty to most people, her friends. Um, Mrs. Drio was a music teacher in all of our elementary schools for almost three decades. She touched and left her mark on almost every student in our district as well as her colleagues, her parents, and our community as well as a whole. Uh, may the music she taught live in our hearts always. And please join join us in a moment of silence to remember her. Thank you. >> Okay. Just like to
002remind everybody that this is a workshop meeting. So, um there will be a public comment section um which will be for comments related to the agenda only. Turn it over to the superintendent of schools. >> All right. Good evening everyone. Thank you for those who are coming and thank you for those of you who are at home listening in. Uh tonight we are really going to be focusing exclusively on the first budget presentation of the school year for the 2026 27 budget. I want to kind of start by saying there are several parts to this presentation meaning that tonight we're going to kind of do the prelude and kind of go an overview of the tax cap and a whole bunch of reasons why we arrived at that tax cut number and where we are
003with our levy. There will be a second budget presentation next week which will go into detail with our expenditures and our revenues and then a third budget presentation in March which will go into more detail on our staffing and our enrollment and all those things. So this is just the first part um of a much longer process and we feel that it's important uh to go through each part with detail um so that everyone in the community has time to review and to look at and to comment on the portions of our budget. So this is not like a we're presenting it all tonight and then we're done. This is the first portion. The board will get to talk to us about it. Community will get to comment and then we do a second portion
004next week and then get more comments, more feedback and then we get a third portion in March before we adopt in April. So, this is a three-month kind of journey to adoption in April. And this is the first portion of that. One of the things I want to kind of focus on before I hand it over to Mr. Bartell's is what our priorities were when we talked in December. We had a lot of conversations in the fall about what you wanted for your budget, what you thought the priority should be, what we all felt the priorities should be in order to uh give our students and our staff the budget that they deserve so that they can learn in the best way possible. And I'm really really happy with what we're going to be presenting
005tonight and over the next couple weeks because it does the things that we set out to do. Uh so one of the first things that we set out to do was to close the gap between district revenues and expenditures. If you remember from some presentations in the fall uh there was about a four to5 million gap between how much we were uh collecting in revenue versus how much we had to spend. And that was because of many many years of state aid coming down and expenses going up and a 2% tax cap which Mr. Bels will disclose. But I'm really really happy with where we are right now. We've been able to reduce that gap to under a million dollars. It also this budget that we're going to present to you maintains all of our
006programs for all of our students and results in no staffing uh declines and no cuts for staff. So, we're keeping the programs we have that are vibrant, that are that are really key to the the excellent education that our students deserve. And it also includes in the capital line and in the capital reserve uh proposal enhancements to some spaces so that students have even better experiences, enhancements to math classrooms, enhancements to our uh drama and arts program, enhancements to our athletics, and enhancements to our safety and district health and safety uh and security. So, we're going to talk about that, too. So, I'm really happy with what's in this budget, uh, considering the conditions that we're under, which is a 2% cap in an era where inflation is over 6%. Um, it also reduces the
007use of reserves. One of the things that we look back to about 2017, the district began pulling over $5.5 million in reserves to help offset costs. And while that might have been an inappropriate thing to do at the time, we've realized we cannot do that year after year and then maintain a healthy reserve. So we are reducing our reserve how much we're drawing from reserves by over a million.4. Robert will get into the details on that in this budget. So I'm really happy to say that we are closing the gap. We are maintaining all of our programs and we are reducing the use of reserves. And additionally uh one of the charges from the board of education was to enhance our revenue. And we have found ways to enhance revenues both through aid that we
008kind of um helped to enhance and increase as well as uh areas and opportunities to get outside groups into the district especially over the summer to uh to use our spaces and to uh provide additional revenue for the district. So we're doing that uh over the summer and we're looking to do that on weekends in our theater spaces that we have enhanced as well. So again, these areas are the goals that we set for ourselves. And I'm really really happy to report that we're going to be presenting a budget over the next several months that that meets all of these goals. And um one thing I want to say is thank you to the board and to Mr. Bartell's because um you've done a wonderful job, Mr. Bartell, of just kind of modeling what it
009looks like to manage and to um to run a budget process that is thorough, that is thoughtful, and that keeps at the center. And I think that we've always had a five-year plan that has kids at the center in terms of the instructional things we want to do. But in order to be able to achieve those goals for our kids, we have to have budgets that make that that set that up for success. And that is exactly what we're doing. And I'm thankful to you for that and to the board for your support. So without further ado, I'm going to hand over to Mort. >> Thank you, Dr. Ferris. Um first I I want to thank all the principles, the chairs, the directors, central administrator for all their help um in getting me through this
010budget process. It was my first here in Seville. Um, and I think it may have been a little different from the way it's been in prior years here in Sville. So, um, tonight I want to provide everyone with an overview of the budget. Uh, and I'll provide a line by line budget next week for all the detail. Um, I should also note that the budget we're presenting tonight is a fully balanced budget, which means we're not going to be looking for any cuts from this budget. So if there are any changes that we make going forward should stay within the confines of this budget. If we need to add something, we take something else out. But right now it's a fully balanced budget that we're presenting. Um we want to go through certain areas. I
011want to start talking about the tax cap a little bit about our fund balance. Um we got our first state aid projections from the governor. So I want to talk a little bit about those. Uh some of the budget hurdles that we faced as we're going through this budget process. Um I want to talk about trying to make sure this is a stable budget. Um, and then talk about some of the things that are in there as Dr. Ferris mentioned the program enhancements, some security enhancements and facilities enhancements. So, first with the tax cap, um, there are several things that go into the tax cap, several different factors. Uh everybody thinks of the 2% tax cap as the cap. That's not always the cap. It all depends on other factors as well. Uh the first
012thing that uh we talk about as a tax based growth factor. That's uh different improvements in properties around Seville. Uh comes from the assessor's office. It allows a little larger increase um in the tax levy. It's just one small factor for us for next year it was 1.00008 which is an extremely small amount. Um if that was a 1% increase you know it would be fine. Even a 0.1% increase would have been a little better. This is 08%. So very small change there. Uh the allowable levy growth factor the inflation factor for the tax formula was uh 2%. So it's 2 is that factor. Uh pilots, we've had the issue with the pilots from last year coming into this year. So, we have no pilots for this year. Um and no pilots projected for next
013year. >> We're stable with the pilots right now. Um as far as capital exclusions, uh there is certain deductions you're allowed for capital exclusions. So any debt service expenses transfer to capital um and the offsets on building aid which go back against that those are different exclusions uh that are calculated in which also impact the tax. There are some other factors that go into the calculation but they're not impacting this year. So the way you calculate the tax cap is you take your prior year's tax levy, you multiply it by that tax base growth factor, you add back what you had in prior year pilots from what we had last year or the current year. Um you subtract out your prior year again, which is the current year's capital exclusion. um and you get kind
014of a a base tax levy. That's the number that actually increases by that growth factor, that magic 2% number. Um after that, you then add uh you then subtract your current year's pilots and then you add back your capital exclusion for next year. So after going through that calculation, uh the maximum allowable tax levy s will be allowed for 27 is a 2.796% increase. Um our projected tax levy uh is going to be 69,795,000 just basically slightly less but basically pretty much at the tax little bit of an update on fund balance. So the reserves have been used in the past. Reserves are always used to balance budgets, it's just a matter of how much of them um you would use strategically. Um if he's generating additional revenue, if your revenue and expense lines are
015about the same, um as long as you can replace what you uh are putting into the budget, you should be in good shape going forward. Um it's not a recurring source of revenue. So when you're using fund balance, you have to generate additional fund balance through that following year to replenish those reserves. So once you use them, they're gone unless you can replace them. Problem we've had here is the district for the last several years has not been generating any replacement of those. So we've been using kind of a high level, but we're not replacing them. So your overall fund balance continues to decline. Should not be able to replace Uh for the current year, uh Dr. Ferris sort of mentioned this. On our expense budget, we're looking at being under the expense budget by
016about $2 million. On our revenue budget, we're expecting $2 million more than we have projected in revenues. Most of that is due to state aid. So, our use of fund balance for this current year's budget was 5.5 million. Based on kind of what I just said, We generated four million, but we're using five and a half. So, we're going to be down about $1.5 million. Um, I'm still working with the treasurer right now. I have done an initial fund balance projection for the end of the year. That's what this is. We're trying to refine that. Um, I'm hoping to have a different number next week. So, I just want to work with our treasurer to kind of an agreement on what, you know, so it's not just me making estimate. I want to make sure
017um those numbers are stable and I'm hoping that it's going to be a closer number. So, I want to get as close to that five and a half million as I can. Um >> how does that compare to last year or the previous years? Like if we're down to 1.5 million, what what had we been pulling? >> So, we had been pulling uh three and a half to four million. >> Okay. Thank you. So, we've had some good luck dropped, I think, close to $7 million over the last two years. So, my projected planned use for future fund balance for this district is to strategically utilize it um and to reduce those amounts. Um there is one part of your fund balance that's applied fund balance. That's about $2.9 million. That's actually not a bad
018number to use. Um my number that I used when I was in Rockwell Center was $2.8 million. I had that number for 25 years. Um just generate that same number. The reason you want something in there is you need contingencies in your budget. Uh you don't want that number to be down to zero. If that number is down to zero means you really don't have much contingency in your budget. You're running kind of right at what you're projecting and you run the risk of overspending your budget. So we don't want to do that. Um so so we want to make sure there's some contingencies in there and so I do have some contingencies in the budget which which we'll talk about. Um we have a debt service reserve uh that's kind of used to offset
019specific uh capital expenditures. uh you generate money for that debt service reserve when you go out to borrow money. Sometimes you get a premium payments upfront. So um if you're borrowing $15 million, for example, you might get an additional million dollars up front to reduce the long-term interest costs. You take that money that goes into your debt service reserve and then you spend it over the life of that debt service. So it's a 15 year life. you divide that million over 15 years. Um, so that's going to generate somewhere I think for next year is about $85,000. So we had been using about uh 25 25 or 30,000. Um, we just issued a couple of debt in the last year with the energy performance contract and the bond. Um, so we have additional monies that
020are now in that reserve. So that will be used over time. So, it'll be about 85 to $100,000 that we'll be using from that each year. Um, I think all the other reserves that we have really should not be used unless there's some specific need for it. It should not be used to fund your budget going forward. Uh, it should be used if there's a spike. So if you have a workers's comp, if you have a certain budget amount and the amount that you have to spend way exceeds the amount that you budgeted, that's the time to use that workers comp reserve. Same as uh for the employees retirements reserve. Um that's where we're using a lot of the money from. There's a significant amount in the employees retirement reserve. Uh the teachers retirement reserve
021we had monies but that's pretty much exhausted with the use of it for this year. Um, so those reserves also are reserves that I would not use unless you had a spike in those rates. So we need to work to reduce this reserve, reduce the number of reserves that we're using. In 2425, we used almost $6 million, used about five a.5 million for this current year. Um, what I have in the budget for next year is down to about 4.2. So, I'm cutting 1.3 out of what we're using. I think a good number would be around $3 million going forward. About 2.8 or 2.9 in um in a um applied fund balance plus whatever you have in that debt service reserve. And I think that's a reasonable amount to expect to recapture each year through
022your contingencies. >> How confident are you that we can get to that in the next year? down from the 4 point >> um >> 4.19 to the 2.9. >> It's hard hard to say at this point. Um I don't want to guarantee it. Um just looking at the way we are going forward if a couple of things break right. I think it should be not too much of a problem. Uh for example, again I'll talk about in a little while health insurance premium increases. We had a big premium increase in health insurance this year. If that number goes down or is, you know, in the 2% range, for example, for next year, which there's a possibility could be, um, and the teachers retirement system rate, which we got some good news about that, um, for
023next year, it's going down. If that number drops again, um, and they do have a lot of money in their, um, in their fund, so there's a good chance that that number could go down again. that puts a little relief off of increasing those budget numbers and that should allow us to reduce that. So, um there could be some other things, you know, other expenses that we don't see if we're able to reduce transportation a little more if we don't get certain special education expenditures. So, there's a number of different things can happen. It's just hard to kind of project this far ahead. No. Correct. >> Well, we'll talk about state aid a little bit here. >> So, this chart is our budgeted use of a fund balance. So, as Dr. Fmer mentioned, we were
024much lower. We were a little under $3 million back in 1718. Then not sure why the increase was in 1819, 1920 up to 2021 to bring it up to close to $6 million. Um my guess is the district was in in good shape at that time. Uh they were seeing other revenues or they may have been seeing it. My guess is actually they were probably seeing it some of their revenues decline. Um So they were putting a little bit more in fund balance into that. Then you get into the 2021 year where you had COVID and you had a lot of additional funding. I think again still your um expenses were still probably getting tighter. But with the COVID funding for a couple of years, it seemed like things were flush. So they got up
025to using close to $6 million. They used that for a couple years. everything kind of seemed okay because you had that um COVID money coming in from the federal government, but then trying to continue to apply that COVID money drops off. So that gap between the expenses and the revenue. So those revenues kind of fall off a little bit. The expenses are still going up. You're now getting a bigger and bigger gap. So you're not replacing that. So a list looks like you're using the same amount, your actual fund balance is declining. So that's kind of what's happen. That's why you need to >> and correct me if I'm wrong, but like you could flip that graph and that would be our enrollment, right? Like our so we really should have never gotten there because
026at the same time that the increase in uh use of fund balance as revenue is going up, our our enrollment is going down, right? But also expenses were growing considerably after in the second half >> inflation. So there were a couple things happening. Um our enrollment was going down. Uh our state aid was going down and our staffing was maintaining flat >> right. So uh with the exception of uh two years ago when we had a retirement incentive and didn't replace nine positions. Yeah. >> Prior to that we were just replacing all positions. So I think even though enrollment is going down, we had the same number of staff. So I think that as enrollment goes down and as you get retirements, you have to take advantage of attrition opportunities, right? And that's what we've
027been doing the last two years >> and what you'll see in 26 27 is we're getting closer to the 1819 level and then next year we'd like to be right back to the 1718 level. >> That 1718 level is as Mr. Patel said like an appropriate amount of fund balance to have. >> So now to get into some of the state aid numbers, as you said, you know, next year is not an election year. This is our this was our election year. So um uh we did get um big benefit with the UPA change. So this change from 5,400 to $10,000 makes a huge impact here in Seville. Um not only does it fully fund pretty much fully funds the entire UPK program, but what it does is because you pay for the program from
028federal funds, not general funds, this aid is categorized a little bit differently and the expenditures are categorized differently. So not fund fully funding it. You're pulling expenses out of the general fund. So, it's the same thing as giving us additional money into the general fund. So, that's lowering our expenditures. So, hopefully that will help us bring those lines together, those revenue and expense lines >> to match them up. >> So, will that be a lottery anymore? It's always going to have a lottery, but we have been fully inclusive for the last um since we added the eighth section, which was three years ago. Uh we have had everybody who wanted in has gotten in. And sometimes we end up with like two kids on the wait list, but then by summer they get on anyway.
029So we've not turned anyone away from our prek, but you do have to have the lottery just in case. But we've not turned anyone away. And so it's been fully inclusive for three years. >> We can't always guarantee that there Yeah. So, basically we have three sections at Lincoln, three sections at Sunrise, and two at Cherry. Uh we give a parents the survey of which school they'd like to be at. Some people request a different school though because um we have scope after and before care at some buildings, not others. So even though you might be a Cherry parent, you might pick the Lincoln school because you want uh the afterare. So, we've had a probably about a 95% like happy parent with where they're placed rate, but it's not perfect, but everybody does get
030in. >> Uh, we have we have space. Um, but like we >> could add a section. >> Yeah. And the nice thing about the $10,000 per student raise is if you can only have 18 students in a section with a teacher and an eight, but you can add 20 kids if you add a second aid. In the old system, 5,400 a kid. You really couldn't afford to add an aid. Now, if you have two kids, that's $20,000. You can put them in and then add the aid. So, there's it's a better um >> cost. It's more aligned with what it actually costs to to support the kids. And that's why, as Mr. Patel said, "We've been funding half of it and the state's been funding half of it. This year, for the first time ever,
031the state is funding the whole thing." And that helped decrease our expense side, which will get our revenues, our expenses even closer by about $680,000. >> Anybody in the state? Uh, but some uh some districts don't use their own cells. We have our own program inside and in house. So, it's more expensive, but now it's fully covered. Um, scope will have to decide what they're going to charge districts, you know, and and such and such. But I believe the quality of our prek program here in Seville is unmatchable. It's one of the best programs you'll find anywhere. >> Okay. The other uh piece is foundation aid, which uh the governor had put in at a 1% increase. I know there's been big outcry from many school districts that that number is too low. Um, generally
032the governor puts out a budget that's a little less than what actually ends up. So my guess is that number probably will be 2% in the end. Um, unless they decide to put money on some other funding source um, which they have done in other years with Excel monies and smart bond monies and different things. So um, so I do expect a little more to come out of that that 1% for is about $200,000. So if it goes to 2% that would become $400,000. The bad news is our good news and bad news. Good news is our weight wealth ratios are going up. The bad news is that impacts our state aid ratios. So because our wealth ratio which is based on a combination of um the adjusted gross income of people in Seville and
033the property wealth in Seville um our number is going up to 1.2 or so that on the next slide but what that means as that number goes up it impacts your aid ratios. So your aid ratios are going down. Um we're These are expense driven aids. Bosey's aid, transportation aid, building aid. They're all based on expenses that you have in the current year for next year. Our Bosey's projection of aid for next year is 1,818,000. Uh but because our ratio went down from 58.8 to 54%, uh if we were still at the 58% number, that aid would have been 1,969. So we lost $150,000 in expense driven aid because those AED ratios went down. Similarly with transportation aid, that aid ratio 150.6 to 47.2. That translated into about $130,000 loss in aid. >> So the
034um the $200,000 we got for the foundation aid just kind of got wiped out with the ratio change. So we didn't really get >> and the pro the problem we have with that again this is you know one of the hurdles as I'll mention with the tax cap is you don't get to add that money back any place >> so the state looks at you and says well you're more wealthy you can afford higher taxes but they don't let you turn it into higher taxes so you're still limited so you still have that so it's it's a loss of revenue for the district >> Robert can you just go over the uh what was the total transportation money lost. >> About 130,000 that we lost. >> Thank you. >> Yeah. >> About what you found.
035[laughter] >> No, I the savings were over got over half a million dollars. >> Yeah. >> That we picked up. >> The other thing that's kind of interesting is we've reduced some buses, so we've condensed to save money, but then we have less buses, so then we get less aid. So, you know, you get some and then you get taken back. Every time you push one button on the scale, the other side pops up. >> I mean, you can only imagine what uh the like the prices of the houses and sable, right? That what are being sold is so much higher than they were 10 years ago. And that's what's impacting our wealth ratio, >> which is kind of sad because the better we do as a community, like it's a great schools, it's a
036great community, people want to move here, housing prices go up, people have more wealth, the more you get kind of hit with less support. Um, building aid remained at 68.6%. So, we're still doing very well with building aid. Building weight is not building it is not impacted by that wealth ratio. That's why it's staying the same. So, this just is a chart that shows our wealth ratio and then the aid ratios. So, you can see as that one ratio is going up for wealth, your aid ratio is going down. So we've lost significant amount uh almost 10% um in um in our Boseis aid and probably 60 to and over 10% in transportation aid in the last five years. So these are the overall just comparative numbers um between what we're actually receiving for this
037current year 2526 and what we're projected to get for 2627. You can see overall it's about a it's a it's a wash. Um the universal prek is what kind of saves us here. So that's an additional 674,000 So, budget hurdles. Um, did find a number of issues trying to put this budget together. Um, we do have the tax cap which does limit our ability to increase our tax revenues. Um, we needed to reduce our dependence on our reserves. Uh, we have health insurance which increases. We had a 9% increase for 2026. Uh we don't know what that number is going to be for 2027. Um I have a chart in a minute which will show kind of comparative over the last several years and and what what typically we would expect. Um we have other
038declining revenues. Our interest income interest rates going down. So our interest income uh go kind of goes down with that. Health services uh we would typically bill out for health services for students attending uh it was the West Christian School. Um that school is closed. So there's no revenue coming from um from that. Uh we have the our declining state aid ratios and both and transportation. We have increasing debt service. So it puts pressure on the budget. It increases our tax. It's outside the tax levy limit. So it it kind of raises the cap. But again, you know, we're not looking to increase what we want to um raise through our taxes. just so it's it becomes an additional uh thought process that we need to look at our workers compensation claims. We've had some
039ongoing medical costs for claimments. We're looking into that and and trying to get some of those uh long-term claims closed out. Um and one of the biggest problems I had was budget omissions with this budget. So there were a number of budget lines which were cut and excluded which really are necessary um to run this budget. Things like chaperoning, athletic supervisions, substitute costs for nurses and aids. These are all >> they were they were z they were left out. The budget lines were zeroed out. So I had to put that back in. It was major hurdle that I had to get back back in there. You know, the expense the ongoing expenses that you're going to see each year, you you can't just cut those lines. So, um and then this is the health insurance
040rates. So you can see we had one we had one good year in the last five um 2025 which you know almost no change at all in the family rate. But if you look at a a fiveyear average it was 9%. If you look at a 10-year average the last 10 years the average was about 7%. So my budgeting is somewhere around six 7% increase for 2027. Um, that's that's where we're going to be. I'm hoping it's going to be less than that. I'm hoping we're going to have a good year, but that's kind of what I've put into this budget and we really want to maintain stability with the budget. We have to get it back um back on track. Um, which means there's a number of different things that need to be included
041in there. So in this budget, uh I do have programs and staffing levels to remain the same going forward for next year. I have no cuts of any programs or any staff. Uh any changes to any staffing would be driven by any enrollment. So um we don't need staff for certain classes. That's one thing, but we're not going to cut anything. Um, as I mentioned, we need to restore necessary budget lines, chaperrons, athletic supervisions, substitutes. Uh, there were a number of pieces in there that we had to restore. I think that came up to somewhere around 600 $700,000 of budget lines. >> It was not cut. It was just not properly placed into the budget. >> Omitted. >> They were Yeah, they were omitted. Um, I have contingent staff in this budget. So, I have
042two contingent teacher staff in this budget. So, for example, we it does look like enrollments at elementary could possibly be up a little bit uh next year uh especially based on birth rates for the students who might be eligible for next year. So, if we need to split a class someplace, we have uh we have a um we have two teachers in there for it. Uh if we needed to add a special ed teacher for a program, we would have some money in there. So, I have money in there for two additional uh teaching positions. I also have money in for a number of additional special education tuitions and related services. So, I have contingent money in there. If we find we have another few um students who we weren't planning on, there are students
043we are planning on, they're fully budgeted, but if we have other students move into the district who we're not anticipating at this time, or if there are additional services that are issued through uh cse at this time, it happens next year. I have contingent monies in place for those related services as well as additional placements. have allowances for lane movements. So, every year teacher staff have the ability to move over lanes based on um certain course requirements that they take based on how many credits or um inservice credits they get. Um I didn't see any any budget line for that in this year's budget. You really need to have that because you have a certain number of staff each year who do move lanes. So while we don't know where that's going to be, I
044have set lines for that so we have money for staff who need to move over. That's not going to be an additional drain on the budget. Um want to reduce the reliance on reserves. So from cutting our fund balance use by 1.3 million. Uh I still think we have a significant amount in fund balance here in Savo. Um, so even if we're dropping a little bit more, I think we're still good. We still, you know, we can't go too much longer, but I think we have enough to kind of wean ourselves back on without kind of putting anything drastic where we would have to look to cut programs or staffing. So that's I don't want to do that. I think we can get through there in the next year or so. Um, and we also
045wanted to be cautious in this budget. So we didn't want to add any large recurring costs. So, we are looking to improve different programs. Um, but we're not looking to do that by adding any significant recurring staffing costs. So, what new things are included for this budget? Things that we're looking to enhance. Uh, we have money for middle school for academic team professional development to support and enhance academic learning at the middle school level. Uh I have money in there for three additional sports teams uh at the middle school uh both boys and girls soccer and the boys baseball team. This would provide opportunities for an additional 60 students or so um who might otherwise be cut and may not find another sport to participate in in those years. Yeah. And I want to add
046um what we're seeing two years in a row now at the middle school is um in in girls soccer 20 cuts plus in boys soccer 20 cuts plus in boys baseball 20 plus cuts plus like 25 26 27 28 kids on a team. So we feel like middle school is not the time we want to make cuts. We want to have inclusive programming, let kids play, and then figure out in high school, you know, when you're trying out for JV and varsity, that's where cut should take place. So, we want to do everything we can to give as many kids opportunities as possible. And these particular three teams will allow us in the spring and the fall to really uh have opportunities for everybody. And then if there are cuts, it'll be during the winter
047seasons where there's less space. >> Um, I'll be talking a little bit more about capital projects later, but one of the capital projects we have is to upgrade our math classrooms at both the middle school and the high school. So, we're looking at eight classrooms at the high school, four at the middle school, um, and adding some flex seating to some of those rooms. >> As you remember from some of our past meetings when we had presentations, uh, they talked about the math program and how we're doing a lot of group work and standing around the room and, uh, using whiteboard spaces. And so, uh, the teachers are doing great work. We want to support them with the tools they need to do that further. >> Uh, we're looking to improve literacy in elementary schools.
048So, we have a new reading writing program that I believe we're piloting for preK to grade five um to help improve the uh literacy at those levels. Um library aid time. I know this was an issue um with the cuts last year's budget. We did have requests from the elementary principles that said this would be a big ad back would help them tremendously uh along with uh additional aid time for some of the special a classes which is really they're just looking for 15 minutes a day. Uh it just helps them you know coordinate those programs >> and uh the library aid time will allow there to be also the kindergarten time. So by putting back the library aids it restores properly the kindergarten aids. So there's a connection there. I just wanted to point
049that out. >> Our Chromebook replacements, we started this year um to provide uh new Chromebooks after four years. So instead of students keeping those Chromebooks for six six or more years, we we're going to replace them after four. So they'll get them in fifth and nth grades. That's going to continue. Um and uh we're going to try to put back some things that were cut from the budget, not omissions, but they were cut. um curriculum writing and staff development. Want to try to restore that to previous levels. So to get those going. So I want to do that again in all levels K to 12 provide additional curriculum writing opportunities and staff development opportunities. We're looking to increase our security in our buildings by providing additional camera software and maintenance upgrades to better monitor the
050cameras. So we do have basic software but we would like to uh increase the use of that. Um there are mapping capabilities um where you can track uh track movements throughout buildings uh where you can um see everything on a map. So, if you're looking for a particular area, you can go right to a map, click on a camera, and it'll show you that area rather than trying to look at the different cameras that we have and try to figure out where you are in the building. So, you look right at a map and identify where you are. Um, we can provide additional cameras for more coverage both internally and externally. So, both inside the buildings and outside the buildings to cover um points that we don't have covered right now. Uh, we want to
051make sure all of our entrances, exits have cameas um coverage on them and we want to make sure all of uh the interiors of the buildings um have strategically placed cameras so we can better monitor what's happening within our buildings. Um, additional store swipe access points are again to better control the building. Um, when we open and close doors in both internally and externally, the exterior doors, the internal doors um want to make sure those we have additional access points um on all of those. So, we're doing all that to help enhance security for next year. Facilities enhancements. Our capital projects are not limited by the tax cap. Um the c tax cap does have more flexibility and I'll kind of show you how that works. Um we already include a transfer to capital line
052within our budget. It's about a million. It was about a million dollars last year. We're looking to make it 1.5 million for next year. Uh, one of the reasons it's we have it up to 1.5 is I've taken um repair funding which was in the building maintenance codes and moved it to this transfer to capital. Uh, it all qualifies to be included as a capital expense. So, this is a better place for it. It allows me to put additional um monies into other pieces. So, into staffing and other within the tax cut by taking these lines out of the tax cut. So, um I think that's a good use of some of that money. So, we'll look at that in a minute, the totals that are included for that. Um we're looking to improve our
053facilities in in many areas. Uh and we want to use the capital reserve also at this time. So, monies were put into the capital reserve a couple of years ago. uh we really don't have any ability now and clearly in the next few years probably for a number of years to increase putting funds into a capital reserve. So I'm thinking this is a good time to start using some of that money in combination with the transfer to capital line to get some nice visible things happening in the district. I know last few years we've done some bathrooms and that's kind of taken up most of the money. want to do some things that kind of people will see will impact the lives of students at all levels. [snorts] >> What is our what is the
054balance in the capital reserve around? >> It's about about 1.1 total. >> Yeah, we put in a million dollars and over the last couple years we picked up about 100,000 interest. >> And just to be clear, that's money we already have. Like it's not money has to be raised. >> The money is already there. It will require an additional proposition, >> a vote, right? uh an additional vote, but the money is already there. This additional vote will not cost taxpayers a penny. The money is already in the reserve. >> Right. And if I remember correctly, the the the specific uses was in the in the proposition when we voted to create the reserve. >> Yes. When we created the reserve, it was for instructional spaces. It was for instructional programming, athletics. There's a variety of
055verbage in that and the community voted to put this money aside. Um >> all that I think Robert has that stuff in it, >> right? like in in the upcoming >> Yeah. Yes. >> Sorry, we're heading. >> I just want to make a point that um this is something the community already voted for and but they would have to vote again to spend it to use it. >> Robert, I had a quick question so I don't forget it at the end. Um if the if the security um upgrades were building related, would you be able to get that in as a capital project if it was building related? if it was like somehow if it was enhancing so like instead so you could put it on that line instead of using it >> well >>
056in the general like in a general fun >> we do have it in that line >> oh so the security >> it's in the transfer to capital >> are in the capital yeah >> oh not the capital reserve >> no no >> the capital reserve >> it's in the capital reserve the capital the capital reserve it's it's still separate it's >> yeah so that's that's in that the security enhancements are going to are in the that proposition. Yes, >> correct. >> Okay, that's what I thought I was just told. >> Every Well, I mean, based on what you said, literally everything in the capital reserve could be in the transfer to capital. Okay. >> So, but we already have the money. We don't need to increase taxes for that $1.1 million worth of projects. So,
057that's that's why we're using that. >> All right. So, these are the projects as we're just talking about from the capital reserve. Uh, we're going to upgrade, do a complete upgrade of the high school auditorium, the sound and the lighting upgrades. Uh, complete upgrade there. >> How old do we think that system is? >> Very old. Uh, it's it's uh pre20, I believe. >> Uh, we want to move the weight room up to the fitness center. This would be a complete renovation. Uh, we have plans to do that. We have some designs, a state-of-the-art weight room, um, and a great space. Um, so I think that's a great use of, um, the money for that impact all all of the students. >> One of the things I think is important about the weight room is
058right now it's in the basement. It's obviously got to be replaced because it's so old, but by bringing it up into the light, you know, on the floor with the gym, so to speak, it'll be more accessible to a whole wide range of students, not just those who were willing to venture into a basement. Um, >> also I just want to comment on these four items. All of these things when we did our 100 days of learning study four years ago uh came from parents and families and students that they wanted to see these things happening in our district. So we know we need them, but we also know we we feel the community was asking for these kind of things when we surveyed them about the work that needed to be done. >> And
059and it seems like it's fair, right? You have the arts, you have the athletics, you have the classroom, and you have the security being touched in all. So it's spread it's it's spread evenly >> and the aside from being spread evenly the other thing we're looking at is to try to impact every student right >> every one of these things is going to impact every student in the district. So, um, so again, math classrooms, um, that's this is where we have the monies for those, uh, whiteboards and then the security camera additions and upgrades at all of our schools. Now, within the transfer to capital portion of the budget, um, our playground blacktop areas at all of elementary schools are really getting into bad disrepair. We need to replace those. So, we're going to do
060that at all three elementary schools. Uh, give them a fresh black top area, nice clean, so we don't have any tripping hazards, things like that. Um, the middle school locker room. We're going to do the lockers in the floor. We did the boys middle school boys locker room. We need should be doing the girls locker room as well. Um up at the high school want to upgrade the um the current wrestling room to the new fitness center. Same we want to do a state-of-the-art weight room. We want to do kind of state-of-the-art fitness center as well. Um and just kind of make that a great space for everybody. Um, since we're moving the weight room upstairs, we want to make use of that uh current weight room which is in the basement. We would like
061to make that into a bike slance studio. So, it's kind of in two parts. We wanted to make one part kind of a stationary bike studio and the other part a dance studio. Um, in the high school, we've had an issue with the drop netting partition impacting our volleyball program. If we do nothing else, I vote for that one particular thing. >> We had a feeling you'd be in favor of that. >> I can't believe that's $24,000. I'll climb up there and cut that thing off. >> Yeah. >> I've told Dr. Cox several times, get me a ladder. I'll do it. >> Um, also with the high school, um, if you've ever been in the library, um, and it's a sunny day, it's very bright and distracting. So, we want to provide a shade system
062for that large skylight that's right in the middle of the library. Um, and then we have these are the items that I've kind of moved out of the um uh facilities budget lines for for repairs. Districtwide HVAC repairs. $200,000 we've had in our regular lines which we're now moving out to cover those types of costs. So, um, we're constantly having those repairs around the district. Um, they're legitimate capital projects, so we're going to keep that here. Um, and then we have a line for other repairs. So, typically we would have, um, in the budget lines for special repairs, special building project lines. Um, we want to put this general thing and whether we put it in the budget or not, we end up with repairs that need to happen throughout the year. So, it may
063be a water heater going down. It may be um a floor that buckles. Um, there are monies um in insurance that would cover some of these things, but there are other things that just happen and we just need to have them fixed and repaired. Um, so we want to keep that as more of a general repair line. Uh, so it would cover site work, cover lighting upgrades, um, masonry repairs, a number of different projects. >> Can I just ask a quick question about these numbers? Are are these like numbers that have already been sent out the bid? Are we based on like past experience or I'm just trying to >> So some of them are based on quotes, others are based on architect recommendations. uh which we still have will have to go out to
064bid for like the blacked up areas. We're going to have to go out to bid for that. Those are expected numbers from the architect. >> I had a question about those. Do can you put that out as one bid? >> Yes. Yeah, we'll do >> and get all three, right? So, you could potentially have like a lower cost, right? Because you you >> No, we would definitely want them all in one shot, >> right? One shot instead of like breaking them up then you I would imagine you would get >> cheaper. And we always try to like estimate something that's conservative so that when we get it and if it's under that we don't get one that's like way >> No, I get that. But I'm just saying like up there it's it's itemized by
065school. I was just wondering when it goes out to bid it's going to be one job. >> It it's >> well it's showing to each school's representative showing there's little differences between the schools >> the sizes. Yeah. Right. L is bigger. I >> we did have other requests from our elementary schools. Um, we just felt, you know, and a couple others may be, you know, worthwhile requests, but we wanted to make sure since we were going to do be doing the black top, I think it was two of them. The third one was a little questionable. They had some other um, uh, things they wanted to get done, but if we're doing two, we might as well do all three, right? You know, to your point, and take advantage of that. >> Yeah. Get a
066lower price. >> And, um, in past years, this was the bathroom renovation. Correct. >> There's like five. >> Correct. I think the last couple of years that's what this >> So it's not like it's not like we're requiring uh it it's it's just good practice to look at your facilities and try to do maintenance every year >> rather than wait and then go out for a while. >> Correct. And and you really need to be doing these. And the fact that there's no bathrooms in this does not ne mean that we don't need to repair some of our other bathrooms. There are still bathrooms that need to get done. Uh but we just felt we take a break from this year. We want to do some other things, hit all the buildings. Um >> yes,
067exactly. That's that's what that last line is for doing districtwide repairs that that would come up. Um, and to Mr. K's point, we did have our um, uh, building condition survey done this year. It's required to be done every five years. So, it was done this year. Um, that generated a list, uh, big list, a total of about $94 million worth of projects. It's actually not bad because it included many wish lists. So included within that is things like turfing our fields. So things like that are in there. So $94 million to me actually is really not a terrible number. Um again it's a lot of wish list items. It's all things that have to be repaired. A number of these things they don't need to be repaired now but the reason allocations are in
068that building condition survey is maybe within the next 10 years they're going to have to be repaired. So you may have a roof which is 15 years old. Maybe the lifespan is 20 years. It needs another five years. So monies are allocated for possible replacement of a roof. Doesn't mean it has to be in a bond or in a capital project, but it's just meant to let you know these are things you need to be considering. >> Correct. >> And then my last slide is the total budget. So our budget um as I said it's balanced. The budget to budget increase would be 1.94%. Um, our projected tax levy as I mentioned will be 2.79 and we would have a second proposition for use. Yes, it's under the under the cap. So, we would again
069got another goal. So, I got list my different goals for this year, but [laughter] we're not we will not be asking to exceed the tax cap. slight very slightly. >> Um I always like to be just under. >> Yeah, that's where you want to be. >> Yeah. Right. >> I mean not under but Right. You want to >> you want to be kind of close unfortunately >> because that it affects future years. >> Unfortunately with tax cap it becomes kind of >> right >> a difficult conversation sometimes because if you do um cut and go way under that If you wanted to save a couple hundred thousand dollars and drop it, you never get that money back, >> right? >> Once you do that, it's lost. >> Uh it creates a cliff. If the district
070had plenty of funding and was generating all sorts of fund balance year after year, might be something you want to do. Don't want to do it in with the financial circumstances we're here. Uh we really need to maximize the use of all that. But um I think it's an appropriate budget. I think things have been done um as we've gone through the years gone through the year. Um we've gotten some good news, some bad news. So we had a big increase in the health insurance received some new um earlier this week on the uh on our teacher retirement system contribution. Uh the projection was it was going to be somewhere between 8 and a quarter and 8.75% I had in the budget. think we balanced the budget. Um uh I was estimating somewhere around eight
071and a half. We got word that it's actually going to be just under 8.24%. So I was able to cut another $100,000 or so out of my TRS contribution line which kind of got me to the end was able to balance the budget getting for other things. So there are some pluses and minuses that happen throughout the year. Um you continue to find out different things. Great news when we heard about the UPK money was great. Um, but it's it's a process. So, I think we're good with a balanced budget. Um, I would not change anything. If you want to make some internal modifications within the budget, we can talk about that. I wouldn't change the funding in any way. So, for example, I'm hoping we're going to get a little bit more money in
072state aid. Um, I don't want to change my state aid projection. It needs to stay where it is, get any money, more money, that's great. Um, if we find out we have a special ed student who happens to move out of district and we don't um have we know we're not going to have that expense, that doesn't mean we should reduce that budget line or we keep that in there as an additional contingency. We want again any one of these things will help build back that um that budget gap. So, which I'm now reducing from the five and a half to the 4.1. So, so that's the number we're going to try to build back next year. So, instead of me trying to find five and a half million next year, I have to find
0734.1.2 million next year. Make the job easier. >> I just said there was a little telling. He said, >> "No, [laughter] >> you did it again. I heard you. You heard him. >> [laughter] >> The other day we were uh in the parking lot talking about the final balance and he goes, "Yeah, next year we can." I said, "You said we, you said next year. [laughter] >> Now it's on camera." >> In all seriously though, Robert, I want to say thank you for your uh presentation. It was it was very clear and you could see where you're trying to maximize our state aid and and uh maximize the use of the the budget so we can save money for the tax base. So, thank you very much. >> It's refreshing to undergo this process this
074year after I think that we've struggled in the past um with your explanation um and just very common level and informational. So, we do appreciate that. So, thank you and I'm glad to hear you'll be returning questions. [laughter] Robert, will um will this address uh some of the like those operating deficit numbers with our fiscal stress score so that we can lower that because right now we're we're we're pretty dangerously high, right? We're sitting at like 23 23 something >> 233. >> So we're like 1.7 away from like a designation. So are there and I I know it was like >> you couldn't put two years together, right? Like backtoback years. So is this going to Is this is this budget going to help us in that way so we can have that score dropped?
075>> Yes. So the key is going to be this year. >> Yeah. So, if I can get that gap to within 1%, then we'll have a little bit of breathing room to um increase the tax anticipation notes, which is something I think we're going to need to do again, okay, for next year. Um, we will be able to increase it a little bit, but we'll be able to increase it as much as we need to if we can get those revenues% this current year's operating budget so that we don't >> and we're very close. >> Yes. >> Okay. >> Yeah. I'm fairly confident that we're going to be able to do that. >> Now, what now? What does it do to that number? It would it could it because that number previously was like 8
076point something, right? And it jumped to 13.3. Yeah, it's >> could it lower it back down to eight or would it slow it out? >> Yeah, it's it's it's a 6.67% a year. So now it's up to 13 something%. >> It's going to jump to 20 >> or so. If um if we're not within 1% okay this year, >> uh if we are then it won't go any higher than that 133 for the next three years. Okay, good. >> All right. So, you just got to get that one year in there and then not that you want to be in >> we're going to get several years. >> So, so you want a few years in there like that and drop it off completely. >> So, we're aware and we're we're we're trying to control
077and >> yeah, we're definitely our eye is on it and we've been watching it and some of the decision-m has been based on that. Uh but I also want to say we have no designation and the next level while we never want to be there is not like >> It's susceptible >> but we don't want to be anything but that begins at 25. So no designation to 24.9. >> Correct. So we want to head it the other direction. >> Yeah. >> All right. Good. >> Um I just want to say thank you. Um, I feel like we're in competent hands. And every time I hear about omissions and $500,000 that was not appropriately gotten from the state, I'll phrase it that way. Um, you know, I I I'm sure many people hear that and are
078frustrated. Um, but I I think the community um can support this budget. I I think um it's a great budget and I I thank you for your work in doing that. And um you know, I think we want to show the community that we're trending in the right direction. Um and we're trying to grow revenues and we're trying to um stay within the tax cap and support children and and improve what we have and it's constant improvement, right? Like you were saying about being a homeowner and you know, you always need upgrades and things age out and and uh but thank you for um I think this is a great budget that you presented today. >> Thank and then next next week we'll be line by line, right? >> Yeah. So next week we're going
079to have the detailed expenses and the detailed revenue budget and then the use of reserves. So it'll be all lined out, you know, and that's why we don't do that all in one meeting because we this meeting we're doing this part is the introduction. Then next week we do the expenses and the revenues and then the following which I believe is in March uh we do more of a staffing projections, enrollment, transportation and some other and then the three-part budget. >> Yeah. If we handed out the line by line budget today, nobody would have heard my presentation. >> Everybody just be flipping pages. was good. >> Um, so this conversation was positive and um I look forward to just staying on this course. Thank you. >> Robert, you start out by saying that this was
080your first budget here, but how many budgets is it really? >> This is 31. >> And it shows. [laughter] Um, yeah, I just want to say thank you. I want to agree with everybody else said. I think that this budget has something in it for everybody. And even as conservative as as you're being um in your projections and our increases in revenues, it's still able to just put that little bit back um that we had to unfortunately take back. And um I think we stay on this path. You know, our goal has always been to replace whatever it is we had to take away and um and enhance going forward. And I think obviously looks like we're on the path for that. So I think that's a positive thing. I just want to say it's
081been a pleasure working with Robert on this process just going month by month through really eye opening about what needs to get done and also what happened in the past but also >> thank you also to the administration for all your input as well. So, that wraps up our report tonight. >> All right. Thank you. All right. Uh, board discussion, uh, claims audit report. Anyone have any comments or questions? >> All good. >> Look good to me. Um, draft of the school calendar, assuming we're following the Bosey's calendar, the Suffach Bose calendar. >> Controversy. >> Uh, interestingly enough, there is controversy in Nassau County. So, um, yes. Uh, no, I don't think there is. Okay. And then the other is an update on charter schools. Really just going to table that to next meeting. Um,
082not only did I not specifically get an answer to Desmond's question, which was a really good one. Um, there's also since we spoke last, um, there's been a lawsuit filed against Sunni um, in regards to the approval of the charter schools in Brentwood and Central Icelip. And, um, so I think that everyone's trying to figure out which direction they want to go. So, um I should hopefully have answers by next week, but I don't think we should jump in and and make any resolutions or declarations until we know what's going on. All right. Anything else for budget discussion? >> Okay. Uh public comment. Anyone like to comment is on budget items only. Sure. Thank you. Um just a reminder that um we appreciate any feedback from our community and we recognize free speech as one
083of our fundamental freedoms. This freedom is not without restrictions. Please follow our guidelines. Uh participants in public session must demonstrate civility and address the board and the community. Um we have 30 minutes set aside for this comment. Um you will be extended three minutes. Um comments and questions from public are limited um to three minutes. As I said, uh, speakers are requested to identify themselves or group and the board will not permit discussion involving individual students, district personnel or community members. Thank you. >> Yes. >> Hi, how are you? >> Uh, my name is Alexis Kromanacer. Last year um there was a forum at the middle school regarding uh adding armed perimeter guards at our schools and we had over 80% of the attendees supporting moving forward with that. In addition, we had close to
084900 Savo residents sign a petition also in favor of this measure. We invested significant time and effort to make our voices heard. Since then, many of us have been wondering where this stands. Can you share what progress has been made specifically towards implementing armed guards, perimeter armed guards, and what the next steps are? >> Um, at this point, we've um put together a budget based on what we feel that the uh community can handle in terms of a tax being under the tax cap. That budget includes uh significant enhancements to security but does not currently include >> I mean that's very upsetting considering that we were all at the middle school. We all went through all of this last year. Um it really seems like we wasted a lot of time if nothing is going
085to be moving forward with it. Um, I'm asking that it be placed on a ballot so that the community can vote on perimeter armed guards because that is the only way to get a a clearcut answer since nothing else is working. And I know that I'm not alone in thinking that. Um, and as a community member, we want to feel that our voice is heard and 900 people and taking hours out of our days and night to go to the middle school, having police officers come and speak about their experience and um time that police officers could get to the school, response time. We had plenty of service members come out and speak on their own. um experiences. So, it seems like it's been dismissed and I'm not the only one who feels that way.
086Um I'm really hoping that something else will be done. >> Okay. Thank you for your comments. [clears throat] Anybody else like to speak? Okay. Thank you. Okay, moving on to recommended actions. Yep. I'm going to go 601 to 602. Can I have a motion? Kelly press. Um, any discussion? All in favor? Motion passes. I'm going to take 7.01 1 um through 8.01. Can I have a motion? >> Motion. >> Tom Desmond. Second. Any discussion? I'd just like to mention that um we have two donations for scholarships. Um very generous donation. Mr. Kevin Petraino has donated um 6700 for the Christopher Desario scholarship award. Daro scholarship award. So, thank you for that. And um Mr. and Mrs. Peter Feith have donated $50 to the Lori Abram scholarship fund. So, we also thank you for that. >>
087And if I may, I just like to add that um it was really nice to see their names in there and to hear their names. Um two really special people, Chris and Lori. >> Thank you. Any other discussion? All right. All in favor? Motion carries. 10.01 to 10.05. 5. These are final adoptions of policies that we've had two reads on. Um, can I have a motion? >> Kathy second, Chris. Any discussion? Um, all right. All in favor? Motion carries. Right. Upcoming dates. Speaking to the microphone. Upcoming dates. Uh February 6th, um high school blood drive. Um always a shortage of blood, so if uh people can go, that would be great. Um February 11th is a family connect night. And uh February 12th, next Thursday, will be our board, uh education business meeting that will
088take place in the middle school and that will be at 7:30. Um and again, there'll be two public sections, one about the agenda items and one about other issues. >> I have a question about the blood drive that takes place in the gym. and all day. >> And anybody come from outside of the community? >> No. >> Is that for students only or >> students only? >> Okay. Thank you. Thank you. Um Okay. Um I think we're going to hold off for after exact session till next week. So, um, a motion to adjurnn. Chris, Tom. All right. Any discussion? All in favor? All right. Good night.