001It's recording now. >> Since I'm at home, I didn't get a chance to print out the agenda, so I'll have to kind of keep notes here on a >> Okay, Kim, do you want to call the meeting to order? >> And now I can't hear her. Can you not hear me? >> Oh, now I can. >> Okay. >> Wait, now I can't again. >> Conference me in. I said I tried to call in that number. Um, I'm just not sure. It probably will. >> I'm guessing it will be. >> Yeah. Let me let me call you back real quick here. Tim, can you hear me? Okay. >> Yeah, I can hear you much better. >> Okay. Um, Nancy and Mick, are you able to hear better? >> Yep, a little bit. >> Okay. Okay. >>
002Think we lost her. Sorry, I'm new to being at home and I had to uh kick Brody off the uh all the things he's using the internet for right now. My internet became unstable. >> We're just having trouble hearing Kim. >> Sorry, Kim. We lost you. I've got you back. Okay. Obviously, nobody can hear me. So, >> can you hear now? Mick, >> Nancy, and Mick, can you hear? Can you hear us? Hold on one second. Kim, >> can you guys hear me? Okay. >> Yes. >> Yeah, I can hear you. Okay. >> I just wasn't able to hear Kim very well. Okay, let's try this one more time, Kim. We keep losing her on the Please remain number. I was trying to join the phone. >> Can you guys hear Kim right now? Not
003really. It's pretty muffled. >> Hear a little bit, but it's muffled. >> So, you want me to hang up with you? >> Yeah. >> Okay. >> She's going to try to connect from her phone one more time. Okay. So you got I had a previous uh password and previous uh Zoom call that I previously called into so that it was just different. You guys changed it on me. So anyway, I'm I'm in now. >> Oh, good. Welcome, Ken. >> Much better. >> Okay, >> we're recording. >> All righty. >> Okay, I have both Mrs. Iols and Mrs. Lewis present. >> Yes. >> So, with that, we'll we'll get right into the uh the five-year forecast. Um just kind of an overview. the forecast, as you know, for us revenue-wise, doesn't change a whole lot from
004period to period. Um, that seems to be the case um with this 5-year forecast. Um, there are a couple changes from May. Um, and that's sort of what I'll focus on here in the beginning. Um, the one thing that you'll notice is under unrestricted grants and aid, and I can share that screen so I can highlight that. I can grab the right one. >> If you could just um tell me what line item since I'm not seeing on the screen, but I've got it printed out. >> Yeah, that is um item 1035. Kim, >> got it. >> So, last when we did this last in May, this was the line item that we had originally thought we were going to lose about $625,000 from the state aid. Um, and then we thought we were going
005to lose an additional amount of $625,000 and in fiscal year 21. Um, as of now, the the fact from 2020 is that we got about 400,000 of that 625,000 back, which was good news. And then also the assumption as of right now is in fiscal year 21 is that there will be no further cuts to our state aid. Now, that could change at any time, but what we're hearing from the state according to their their tax budgets is that uh we should be made whole for fiscal year 2021. So, I've made that unrestricted grants and aid. It's a little bit less than what it was in fiscal year 19 for 20. That was the loss we suffered last year. And then it's lower this year. That is the leftover fiscal year 2020 that we were
006making up for in fiscal year 2021. But if you compare that to the May forecast, that number is significantly improved over that time. >> Go ahead. So last year for the May forecast um we had predicted that it would be 457,000 would be our or what we would receive from the state this year. That number has been increased on the the November forecast to 1.3 almost 1.4 million. Any questions about that? >> Nope. >> Um >> thank you. >> Yep. On line 1.0 06. Um, this isn't a significant change from the May forecast, but I do want to point it out. Um, that decrease in all other operating revenue is the difference in the amount of uh pledges or donations we'll receive this year for Home of the Braves compared to last year. It also
007represents a dip in interest. Um, we anticipate interest rates and interest earnings to be uh significantly lower than what it was in fiscal year 2020. >> And then you can see that over time forecasted amount. >> Explain it. >> Explain to me the dip in the home of the braves. I thought that that we had already um or that uh that that funding had already been locked in um and that there were already the pledges for that. So why is there a dip in the home of the Braves funding? >> So you're correct. All those pledges are out there. But uh we had many donors who wanted to donate all all or a significant amount of their pledge last year instead of taking it out over the four four to four years they were allowed.
008So over time it gradually get the amount we collect each year gets smaller. >> Okay. I I mis I misunderstood you. I thought you meant that there was a reduction in the pledges. So >> no no not at all. Nope. >> Okay. Thanks for clarifying. >> Yep. Any questions under revenue? Revenue typically, like I said, for us, uh, because so much of our revenue is collected through taxes, through property taxes that we don't have a lot of ups and downs or a lot of instability. Um, which is nice for forecasting, but is also, um, as you know, doesn't create much of a window for gaining in revenue over time. So, that's the tradeoff with the stability. Any questions in that area? >> Nope. >> Okay. So, as we move down to expenditures on line 3.01
009in the May forecast, I had included the amounts that our custodial staff would have earned as payments through the district. Um we actually uh the board of education voted in May that we would go to an outside service to handle uh those cleaning duties. Um so I have adjusted that 2021 uh payroll amount from 22,28,000 down to 21,359,000. Can you see that Nancy? I I see you squinting. I know it's pretty small. Nancy, you're you're >> Yeah. Which line is it? >> Uh, it is line 301, personnel services. >> Okay. Yeah, I see it. >> In addition to the um the custodial staff, we've also uh restructured some of the administrators and then also have replaced uh some of our administrators. Um and that has helped uh our personnel services burden as well. So when
010we moved the janitorial services to uh would that then be in purchase services? So you basically took it out of personnel and employee retirey insurance benefits and then there is a cost and that would fall in line 3.030 for purchase services. >> That's absolutely correct, Kim. >> Okay. All right. So, um, the reduction up above, I mean, it goes back to the point when we originally made the decision to do that is the reality is is we save money because the reduction from line 3010 and 3020 is less than it's I should say significantly more the reduction than the increase in line 3030. >> Correct. That was about a net savings of $300 to $325,000 for us. >> Okay. Yep. >> Now, the unfortunate piece of that, you'll see under line 3.04, is that most
011of the what we made up on that particular um savings we lost because we had to buy um a lot of materials this this fall for safety iss for safety around the pandem pandemic. Um, so that shows on line 304 the jump from 1.3 million in fiscal year 2020 to 1.6 million in fiscal year 2021. You'll see that number goes back down to normal range in fiscal year 2022 as we anticipate most of our supplies and materials for safety are in place even if the uh precautions that we need to take for the pandemic are still in still in order. Do you think that we're there's going to be some ability to get money from the state or from the federal government with respect to some of these safety supplies for CO or are the
012schools kind of out there on our own just expending more money for these precautionary measures? >> Right now, Kim, it's a combination of both of those. Uh we did receive some money through two separate funding sources. uh one is the uh the CARES Act and the other one is a suburban um classroom I can't remember the exact acronym but it's suburban CRF fund. Uh they're both federally subsidized. Uh the district got about $200,000 through those two funds. Um that helped offset some of our cost this fall. Um there's also I did read today um that the county has some money that's left through the car's act and that they're offering that to school districts and I will pursue that as much as I can. And then you know of course that at any point um
013there could be more federal relief um based on on what the federal government wants to do at this point uh moving forward. >> Yep. Okay. And I know you I know you I know you always have your hand your hand on that and you keep your eyes open for it, but you know obviously we just need to keep our eye on that but to find the money if it exists out there. >> That's correct. And none of that's built into the forecast because I don't have a you know I don't know if it's coming. You know the hope is that there will be some but I don't know if there is and what amount it will be. What's really interesting about what Mick is saying, and you asked that question, is Hamilton County is actually
014going to take this up in a um resolution this evening to provide an additional $50 per student for each district out of CARES Act funding. Um and they actually sent us an email about a month ago saying to the schools, "Do you need the money?" And we were all like, "Yes, we need the money." Um, and what we've been told as superintendents on our calls is that after this $50 not to expect anymore, but again, it is what it is right now. So, that that could be another good source of funding we'll find out about tomorrow. >> That's for the county commissioners. >> Yeah. >> Nice. So, another item to note on the five-year forecast is capital outlay line 305. Um, this is not a change from the May forecast, but it is put I
015I did put two numbers in there for 21 and 22 at $650,000. Um, and we are we are going to hold to that budget this year. Um we we have not done any uh capital improvements to the buildings um such as uh roof replacements. We have not done anything to the parking lots. Um any of our upgrades to our facilities are going to be done through um the lease purchase program and the energy program that we've secured. So at this point I feel pretty confident that we're going to stay below that budget of 650,000 for capital outlay. uh most of that money will be in the the bus p lease purchase agreements we have and then also technology which we feel at this time is uh a very important spend for the district um as
016we we never know whether um what the future holds as far as whether students uh need remote learning and we also have our braise virtual academy which currently operates under that model. So technology has been a huge um a huge point for us to make sure that we keep funding at the current levels for that. Um those have been done to lower our cash spend. Um and as you'll see down in line 601 um this year the loss we've got down to 755,000 um compared to the May forecast where we estimated about 1.8 million. So, we're we've we've done a much better job of of preserving some of that cash in our uh cash balance on line 702. >> That's that's fabulous. Um and I appreciate you guys doing that. Um the question I have
017and you raised it a few minutes ago, Mick, is you know, now that we've approved the energy proposal, etc., where do we find that? Um is it like separately provided for? >> So that's actually in both and purchase services right now, Kim. Um as of this time, I haven't got the official accounting on how I'm supposed to I I'm assuming that under debt service that that will go that amount will go under debt service that I need to put on there on on the five-year forecast. But I have not got that number at or not got that accounting number at this point. >> So that's part of our savings under purchase services. >> Okay. Because we're going to run it through, but we haven't we haven't borrowed yet under that, but we're in the process
018of doing it for purposes of items that would have otherwise been in the purchase services or in the line item for capital outlay, but we're going to do it through a different source. And it's just it'll have to fall in the forecast somewhere because we're going to obviously have interest expense etc etc. >> Correct. So what'll happen in the future is um we will we will book that 3.7 million into the permanent improvement fund which is fund three. Um as we expend for the project we'll expend out of fund three and then in fiscal year that will be the first year we will make a payment on that. and you'll see a line item um probably 4055 and 406 that will show the principle and interest of that lease purchase. >> Okay. >> So, Mick,
019what would could you just summarize the um reduction in expenses, which is terrific, but what like the top three key factors again? What you think contributed to that the most? Well, the um the top one would obviously be the restructuring of the the custodians. Um I think that was a very uh important move by the district. Um so far that has worked out well operationally. Um so I think that's that was a huge move that the district was able to make this year. Um second uh most important thing I would say would be the um gosh I just remembered my third one and forgot my second one would be the um I'm sorry >> that's right >> let's go to number three since I remember that one it would be oh and number two was
020the re the restructuring of the administrators um we were be a we were able to um restructure uh Mr. Stegman's job and we were be able to restructure Mr. Al or Dr. Alt's job and uh we re we hired a new uh transportation supervisor. All of those things have contributed to um a significant decrease in the amount that we're paying administration this year. And item number three is something we hadn't talked about, but something that we were able to negotiate through the last collective bargaining agreement. and that's where we were able to uh restructure our uh PO into high deductible health plans for our uh employees. Um we're still seeing savings from that. You'll see a line 3.02. Um has has had very minimal increase since fiscal year 2019. Um, and that can be directly
021uh related right back to that collective bargaining agreement where we were able to um secure that high deductible health plan. Um, you'll see moving forward, a big concern of mine would be line 3.02. Um, I have estimated or assumed about a 9% growth in health insurance over the forecasted years of the u the five-year forecast. And you can see that how how fast that grows over time. Um in fact in year 2025 if everything remained the same. The growth in line 302 uh would be almost as much as line 301 which is personal services salaries uh based on the assumptions I made for salaries. So, um, that's definitely something that the district needs to pay attention to in the next few years and figure out how to, uh, help control those costs in healthcare. >>
022Great. Good job. Thank you. >> Yep. >> So, with that, are there any other questions regarding the five-year forecast? I guess the only thing that I would say is it's obvious um to me on the finance committee that you know even though you guys have done a fabulous job as far as cutting expenses etc etc that it is clear that we still need to deal with um a conversation uh with the board next year just you know we did not have um the ability to put um an operating levy on the ballot this past year. But it's clear to me looking at the 5-year forecast that the numbers are such that we absolutely are in need of putting an operating levy on the ballot shortly because as we look at, you know, on your forecasted
023model in 2022, we're getting very very close to getting, you know, below a cash balance of of, you know, you know, approximately well, it's I know it's 11 million here, but you got, you know, the there's no fluff. in that and and then the next year it goes down to a 7.8 and you know I mean the reality is is we are we are looking at very few a very short period of time for which we need to consider putting on operating levy on the ballot because we are obviously um spending more money on an annual basis than we are able to bring in. Um and it's not because you guys are not buckling your belts you are. Um it's just something that we, you know, from a finance committee standpoint, we just need to
024make sure that uh we need to keep on top of. >> That's a great point, Kim. And that's, you know, one thing that just to um sort of add to that point as well. Um we're we're really just conserving um expenses at this point. Um the district's getting to a point where we've found a lot of the items that we have we can we can continue to to add savings um to the five-year forecast, but those items are starting to wear out. And eventually, you know, like you said, we we do need to have a long-term plan to um to really to really put ourselves in a sound financial position. All right. If there's no further questions, um, when I do the when I do the presentation on Tuesday, I will talk about some of
025these items that not really specifically looking at the numbers, but many of the items we talked about into a uh, concise 5 to 10 minute uh, presentation. and we'll just go over kind of those highlight items we talked about. Um some of those uh money saving items we had. Um some of the concerns that we see in the five-year forecast. Uh the main concern with the that the need is still there for more revenue in the district. Um and that's that's kind of where I'll go with the presentation. If that sounds all right with the finance committee. Um, Mick, the only other thing that I would point out is, you know, not only from an operating budget standpoint, but obviously, you know, on your capital outlay, the reason why you've you've reduced it to the
026point you've reduced it to is because we've got not only considering uh you know, both uh you know, um we're also considering doing things with the buildings um such that we would do potentially a bond issuance And the reason why you haven't expended the amount of capital in renovating or repairs in the next two years is that we are you know there we need to seriously consider not only you know the operating levy but also uh the bond issuance and I think that it's important to point out that the only reason that those those maintenance expenses are as low as they are is because we are hopeful that we will be able to pass a bond issuance and to the extent that we're not able to that those maintenance and those maintenance and capital outlay
027expenses are going to be significantly greater. >> Right. And that's that's that's a great point. That's why I doubled that in fiscal year 2023 with the assumption, you know, if we don't pass a bond along with an operating levy that those expenses um for roofs and parking lots and the things that we need to continually replace are going to come right back to us. >> Sounds great to me, Mick. I have complete confidence that on Tuesday you'll do a great presentation. All right. Thank you. >> Anything else? >> That's what I was going to ask. Do we have anything else on the agenda? Because if not, I I can certainly call the meeting um you know, ask that we have a motion to adjourn the meeting, but Mick, I wanted to make sure that you
028or Kirk didn't have anything else on the agenda or Nancy didn't have anything else that she wanted to talk about. I don't >> I did want to mention Kim that uh the financing offer came back on the uh the lease purchase for the energy project at 1.66% for 12 years. >> You rock, Mick. >> I know. >> I gotta say Capital One rocks on that one. But uh I I will take the uh the praise. That's for sure. >> Yeah, I was gonna say just take just take the credit, Mick. Just take the credit. So, >> we'll do Kim. Uh >> that's great news. >> Uh with that, if there's nothing else, I would call a motion to adjourn the finance committee meeting. >> So moved.