April 9, 2026 Board of Education Work Session

001to order. >> So, notice of this meeting was given in accordance with the provisions of bylaw 0164B of the Riverside Local Board of Education, which was adopted in accordance with section 1.450 of the or OC and the Ohio Administrative Procedures Act. >> Can you take RO, please? >> One lens came out on didn't realize it. I'm like, wow, this is weird. >> You can take one and pixel. No, we might. We just got to go a little slower. >> Uh, >> Mrs. Krennki >> here. >> Mrs. Grassy >> here. >> Mr. Odino >> here. >> Miss Brewster >> here. >> Mr. Buyers >> here. >> Thank you. >> Can we stand for the pledge? >> I aliance to the flag of the United States of America and to the republic for which it stands. One

002nation under God, indivisible, with liberty and justice for all. >> All right. So, that brings us immediately to our first topic, which is our work session. I just want to kind of set the stage a little bit though. Um, so I've worked with um Dr. Tino and Dr. Thompson with the questions that the board had all submitted and provided. Um, and what I'd like to ask the board to do, um, a lot of the questions were answered in an email. So, you did receive questions to everything or answers to everything, but some of the questions will be answered in the presentation. So, I would ask the board if we can kind of hold all of our questions um that come up during the presentation until after they're finished presenting. Um, so they did make us

003this nice packet. The uh slides are printed a little bit larger than normal so we can take notes to come back to. Um, so we can see. >> Yeah. Yeah. >> Yeah. I'm done. This mic broke. My glasses are [ __ ] >> So I would just ask us to do that. The other thing I think it's very important just to set the stage here. What what's going to happen tonight is they are going to present um their recommendations for the district vision and d direction also um their recommendations for um how we move forward and then um that'll leave us into some really good discussion in there. There will also be some other options, some other realistic options for us to consider um as part of that conversation. um really want to keep us at that

004strategic level tonight because there's going to be a lot of tactical qu questions they can't answer today because again we're just coming up with how what does it look like moving forward, right? So going to ask us to kind of stay at that strategic level today. Um there'll be plenty of time for us to dig into the tactical details so forth. Um but again I I would just love to start with them presenting and then us come back to that discussion. Any kind of questions about that approach or >> All right, cool. Then I'm gonna >> I did just upload the slide deck for tonight into the board of education folder for the work session. Have a copy of that as well. >> Um that's up there. But thank you and really excited to have

005a chance to present this um as to where we're at. Um our whole presentation and recommendation is based upon not only the portrait of a fever, but one community pursuing greatness, getting better every day. really trying to to work that throughout. Uh first and foremost, we want to take a look at the landscape and where we're at um for these things. So really important what what's the problem we're looking at. Um we actually have a dual challenge. We have a s we have a systemic structure deficit where our expenditures grow faster than revenue. Um, in fact, if I've looked at the last 15 years and our revenue um has not kept pace with inflation is about half the half the rate of the rate of inflation. Not that the rate of inflation is great. I

006would say stop, but we're we're not to the point where we need to be. And at the same time, we have aging infrastructure that no longer meets modern educational standards, and we are one disaster away from a true um problem. Uh the district runs incredibly lean as we are the second lowest in Lake County in spending per pupil uh with 71% of our funding and our revenue generated from local sources. Uh that is the third highest in Lake County. So when you look at this the states or the the school districts in Lake County um the our our tax base here is is pretty significant. Uh we are fiscally responsible um and our fiscally responsible operations have led to significant estimated savings in both this fiscal year and predicted in next. Um just to look

007at where we are compared to Lake County um and some of our spendings that's there. So that graph and I know it's really small on the screens. It's small on my own but I did blow up some information here. Those are all the districts. Riverside is the second lowest in um amount of spending pure pupil. And that is I don't think this is going to work on the screen. No, that is the um we're we're the second I'll just the old fashion. We're the second bar right here. So when you look at where we are in terms of expense, our expenses per people and we are seeing the fact that our our revenue coming in, we still are our expenses are a little bit above what our revenue is. So this kind of predicts and

008shows some deficit spending that we're getting at. These are things we've had. We are doing some things and we are making some ef efforts to curb that where that's at and that's kind of where we're at from our forecast. That's what we've predicted. It's not a surprise. Dr. Thompson spoken that spoke about that at all. When you look at how we get our funds, so where our revenue comes from and again this is where it really kind of came out. I think oh this is local share. So the dark blue is is the local share what we bring in. We are the third highest. The two that are higher than us, Menor and Wickliff, which I kind I was a little surprised. I mean, you think of industry and how local local property local share

009is also it's property tax class A and class B combined. So, it takes both of those. So, Wickliff has lazol. I don't know what I don't know how many um tax abatements they have on Liverol, but I'm sure they give their share um to some. I'm not going to >> Dark blue. I'm sorry. Dark blue. >> Dark Dark Blue is local. >> Local. Okay. Uh, light blue is state. The I the thing that got me in this one that I really kind of took out to is Perry is about 5050 state and local tax. A lot of that is because of the tax changes that they made in terms of uh tangible personal property tax. The state still reimburses that back to them. So some of the changes they made in terms of business taxes

010and federal and that gets reimbursed back to to parent. So that's where we stand again. Um object spending per pupil the this is salaries. We've always said we're salaries and benefits. Salaries is this color. There's benefits. We're in line with most of the others. We are right in line. We have made a concentrated effort not to hide salaries as such. So sometimes what districts will do is they'll contract with an ESC for administrators or for specialized services and they'll call that a purchase service. We want our people to be our people. We brought them in and we've said this is what we're spending and this is where the money is going. to see where we're at and then what those functions are. Anything that's red or orange directly impacts students are classroom expenses. So that's

011where that's where we are. Um just to kind of spell out kind of where where the expenses go. The need is clear when you look at it. Um operating is an issue. We need to address operating funds. We do have a deficit forecast of a spending despite and I want to reiterate we've just by running how we run we've made a million dollar in savings in fiscal year 26 over a million. Um and then we have a projected $500,000 in fiscal year 27. So a million and a half in savings that we're trying to save just by running fiscally responsible. We're exploring win-win shared service agreements when we can. Fairport, our our food service agreement with Fairport is a great example of that. They get food service, we benefit from that in terms of um

012getting their federal funding, working to that to make sure that it is actually sustaining itself sustaining and we're not losing money. A lot of districts lose money in food service. We have always actually run the opposite. We make some money. That's a great thing for us. We have great cooks. Uh we have kids who are hungry and and we kind of we we work the way to make sure we do that. Fairport. We have reached out to Fairport and other local districts about other shared service agreements. We want to make sure they're beneficial for us and we're not just the big school out there providing the forms. So, they have to be the win-win model. Um, some of those are challenging. Busing comes up a lot. That would be great if we can find the

013drivers. Bus drivers are that's a that's a big we would love to help people. We have to make sure we have the staff to do it. So, we we are we have three open routes right now currently on our staff um that we're trying to fill. So we would need to fill more. So continue to find that need. Um we also think the Buckeye expansion elementary redistricting and taking Millard offline is going to offer savings. We are going to be able to through attrition lose some positions also through not having electrical service those sorts of things. That's going to help us out. Declining enrollment has allowed for us to do attrition. So we are seeing declining enrollment that has impacted our attrition and allowed us to save um money. So we are not in a

014significant trend where others might be. Also the second priority of the the need is clear and priority 1A and we call that facilities. Recently as we're going through the strategic plan I've had a chance to sit on some of our community focus groups as well as looking at surveys from 2019 and 2024 and all of them call for a clear and present need to address secondary education spaces. there. The need is out there and it is clear. It's a 75 year old building that has significant needs. We've got all the data to back that up. We can't do that without generating new funds. It's we either need those new funds to renovate current spaces, replace with brand new facilities, or a hybrid model of both. This high school and everyone we've talked to in our

015survey, it's beloved. It's iconic the way that it looks as you drive through Riverside Drive. they it is it is a signature showpiece of this community and it's a it's a source of pride and we need to embrace that. Um but a cost of a complete renovation it gets incredibly costly because you have to put kids while you're renovating this. You have to move kids out and it's not you can't renovate a school this large over the summer and section it off. It becomes incredibly cost costful expensive. So that's a hard one. And if we continue to delay and not work to address those issues, we've talked about, well, the boilers could go, well, the roof could go. All of these whatifs and we're getting closer and closer and the structures are getting they're making

016us more and more nervous um as to where we're at if we don't do something to start addressing it. We start to put money into this um into this facility. Is that the best use of our funds um at this time? And um so the facilities plan has been updated, submitted in the draft form to you as well to look at where we're at with that. Um so again, one community pursuing greatness, getting better every day. That's what we want to focus on. We're at a critical crossroads. Both operating building funds are needed. It's not due to mismanagement of funds. It's not to due to excessive spending on anything. Continuing with the status quo will likely have a significant outcome on this on the student experience. If we don't act and do anything at this

017point, we're at the point where students and student programming will suffer. Um although operating funds will always be the sole priority, I think this is the time when you need to look at both um to preserve long-term viability. And what's so what's the vision? So the vision first. So the vision and looking at this is reimagine the Riverside campus honoring our past while securing our future. It is important to look at what the community has said, how important this iconic uh building is. Need to honor the heritage. Um our our proposal is construct a new campus wing that count that complements the iconic architecture of Riverside High School when viewed from Riverside Drive. Don't take away that experience and that that source of pride from the community. We need to partner with with community members.

018We need to create a hub. I do believe that every community and one of the things that's lacking in this community that's coming out in our focus groups as well is we need a centralized hub for all these communities to come together. They come together for school here, but that's kind of it. Can we utilize what we have in land and spaces to really provide a central hub for that? We have talked with the YMCA. We have meetings set up with local townships. Uh we're talking with medical providers to try to find ways to do more than just a school and be the the all-inclusive community center for that. revitalize our high school. So, refresh or renew the current high school to accommodate maximum modernized programming. At one point, Dr. Thompson and I said to

019do that would be incredibly expensive and way more expensive than actually tearing down and building new. We asked TDA to look into it. They said absolutely actually it's not. It's it's pretty close. So we had some new ideas with them. Uh maximizing our shared investment and again talking about how do we leverage our partnerships so that when we do a project like this it just it doesn't just benefit our students but it benefits our entire community as one because that is a big thing for us. So what does that look like on a campus? Well, our proposal includes um making and revitalizing the Riverside campus so that it's 712. that works better from a programming standpoint. Um, as well as where we work in, you know, in in Ohio kind of operations. Basically 712 is

020is that secondary level. So you have sports that start at that age. You also have um the school day length is different K6 versus 712. It makes a little bit different. So looking at a 712 Riverside campus, Lamouth becomes an intermediate school that allows us to grow in any um in all those areas. And then all three of our elementary schools become prek4. So that doesn't mean we're going to add preschool to all of those, but preschool and through kindergarten through fourth grade will be served by our three our three elementary schools. When you look at kind of our enrollment and where births are, and this is just kind of a we're pretty flat in trajectory and we we're seeing and we're predicting that we're going to be around our largest class coming up around

021300. You know, 275 to 300 is our sweet spot kind of moving forward. So, we are seeing declining enrollment, although birth rates have declined a little bit. We're seeing birth rate decline not only across the the region, but across the nation as well. I mean, I've learned firsthand kids are really expensive. Um um but I also think we are seeing that that birth rate is is kind of declining and and we're not necessarily seeing that. We're seeing that in the same in the region as well. And we're in our class sizes. So, we're predicting 300 275 a class. What's it going to look like? So TDA did some renderings and these are just really kind of cool. This is so it is AI generated but this is the original high school. So if we redid

022the high school this would be the original high school remodeled and redone. They would build a wing on the high school outside of the right out there on the bandfield. So that's a wing. And then these back here would be common spaces. So this is your um cafeteria commons. Uh they add another gym here. This is the media center, all of that. So the space itself will be separated by programmatic grade level. So you'd have seventh grade, eighth grade as you move towards more high school. We would still keep our our brand new CTX wing um all that. But again, driveway in the front for student drop off. It naturally separates out our transportation facility by the drop off. Transportation was back there. This is kind of the vision that TDA came up with. We

023said, "Hey, what does this look like?" And that and then one of the great things about Riverside is how do we look at night Friday nights at Riverside? So TDA agreed. So they did a picture of it at night. Um and just a rendering of it at night. If they were to build a new building and what a new building would look like, one of the things we said is again needs to look like the high school. That's a new building at the same spot. really what they're doing is building in the parking lot behind the high school and shifting some parking up front. Um, but that would be the rendering of a of a new building, preserving the fieldhouse and all the me and all the history behind building the fieldhouse, making sure that

024fieldhouse is there and upgrading and modernizing the fieldhouse um and all and all of that. So that's the vision. What are the strengths in that? Well, we number one instructional operational efficiency. when you have grades 7 through 12, you can have teachers teach subjects between 7 through 12. That's where Ohio lensure bands fall. So, you can kind of you can be really efficient in the classes and the teach the the the classes the teachers are offering um get really kind of down to that all of your subjects along the way. Access to advanced coursework. One of the things um again in Ohio coursework 7th through 12th is you start to see hey we really need some access to high school courses in seventh grade CCP courses in 7th 8th all the way up to the

025up to that having the opportunity for those career technical spaces uh creation of that community hub is another one and then modernizing offerings about preserving our tradition. So really kind of what does that look like? What are the challenges? The number one challenge is cost and the impact on the local tax funding. The second one is securing the that commitment and buyin from partners. And the third is just timelines. The when is really important and how do we how do we make sure we hit our timelines and then we answer all the questions that we have which is a whole lot of work that goes from there. So how do we pursue greatness? What are our options and timelines? Well, we have two. Uh the first would be to put this on in November of

02626. There are strengths to that. The benefits are we the sooner we pass this, the sooner we start to collect revenue, the sooner we dig out of our our deficit spending. Waiting until May 27 forfeits that full year because you can only start collecting depending on what the board chooses. Um, you don't start collecting till the next calendar year at the earliest. The momentum, you know, there's a lot of momentum around our district right now and capturing on that momentum and building on that momentum moving forward, I think, is really important and this is an opportunity to build with that. um because we are we're in a positive space prevent significant reductions and and waiting amplifies our deficit spending which leads us to larger and more disruptive and future reductions. We can't we've talked a

027lot about this and hear Dr. Thompson say more about this and not to steal a butting way out of this is it it's almost impossible. We need to kind of have some other ways to do it and we address our infrastructure now. We don't wait till they have a boiler go down or we don't wait till there's a hole in the roof or something like we address it. We address it immediately and we stop kind of the repairs that we have and everything we have is for a purpose and a structural purpose. What's the challenge? Number one, it's a tight timeline to turn it around in November to have a to have a levy spun up to have everything there to have the drawings the the concepts 3D models everything that we know we need

028because we've heard we need um that's a tight timeline to get there. those deadlines, you know, we need to know tonight to kind of have the proof, you know, the the the resolution and all that to move forward and getting input. So, really kind of getting that, you know, what is that timeline that we need to make sure that we have that so that we have that community input along the way. Well, the other option is May. If we go in May, what's the option? What are the pluses in May? This gives us really time to engage stakeholders, move forward in our preparation, really take a look at, you know, more time engagement, get this out there, ask the questions, answer questions, continue to move forward, refine the vision, um, get our partner and get

029our partners on board. And also, it's not a hey, you know what? H, it's reduce life fatigue. So, we're not we're not rushing anything. We're really being purposeful about how we place this. What are the challenges? Obviously, we lose the year in collections. Um, the longer we wait, if we are to do this, the costs that go up. Construction costs aren't going down. They're continuing to rise. We're looking at about a 5% inflation rate in construction from one year to the next. Um, we are accelerating our fiscal decline. Um, that's kind of where we're at. And then also the the imminent reductions and perceived threats from those as to what happens if it if we are not successful with the bow. So, what does that look like moving forward? And last but not least, let's

030talk about funding models and and how we can do this. And and in Ohio, there's a number of different funding methodologies as to how we can do it. As I said, we are over 70% locally funded. That's not going to change um anytime soon. I have not seen any legislation that says we are going to change that at any point. Um the tr the current method that we fund most of our our revenue with is traditional property tax that that is uh private real estate and also public utilities also also corporate um as you've heard Bill 920 has an impact on on property tax because it's a flat collection rate so it does not adjust with inflation. Um the primary strength is it's stable. Um it's people understand what it is and it includes our

031businesses. Um the primary challenge is it's burdensome on our homeowners and that that is a real challenge right now. Um not by again not by anything we've done the way we've shifted our taxing policy in Ohio. It has shifted the burden of property tax to our local homeowners um over the past 25 years. And so I think that's a that's a significant change. Um the another funding methodology is traditional income tax. This taxes every single wage earner and every single income earner. Uh House Bill 20 is not impactful on this. This captures investments. This captures retirement accounts and wealth and all that. So this this is all the community members in there. Um what are the challenges? It excludes business entities. Um and you can only adjust that in a quarter% increments. So you don't

032have the range that you have with a with a property tax. You can go up by mill by ten of a mil. you're looking at quarter percent increments which are very that's a large jump in our district. One of the new or it's not a newer way of funding but it's become more apppropo within the educational community with all the um all all of the I guess the the focus on property tax is looking at earned income. So earned income is is very different. This is what looks at wages and self-employment. It taxes those who are actually who are working and those are would be the people most likely to send to send their students to school or recently as a part of the schools. Um again not impacted the house not impacted with house

033bill 920. It does protect our seniors on a fixed income which we hear a lot about you know continuing to raise tax. It protects them. They are not subject to this to this tax. The challenge of it is a narrower tax base. So the impact does go on our fewer people. Um it again it misses our businesses. it doesn't hit investments and and it's also only in quarter percent increments. And the last one is we can combine them and we can do a combination income tax and bond issue. Um so you you kind of hit both. It's it's only the only impact that 920 has would be a property tax um on the bond portion of it or the or the or the property tax portion of it. The strength of it is it diversifies

034risks and it balances it out a little bit. Again, we capture back on those businesses that are that are great to it. Um the challenge is it's really tough to explain what this means and what this looks like and for every person it's different. So it's not a simple hey this is you know for $200,000 this is how much it it it's while it's this and this. So if you if you fit into it the actual the the explanation of it becomes more challenging. So the need's evident um and it's not a result of fiscal mismanagement. In fact, over the last 25 years, statewide tax policy has shifted the financial responsibility to our local property taxpayers. Consequently, Ohio is now one of the states with the lowest income tax rates. I believe we're third or

035fourth in terms of lowest fixed income tax rate. Uh but the highest property tax rates, I think it's 45th. So, there's a significant difference. Um property tax is something that needs to be addressed. We are we understand that. Um all the polling says that that that's that is a challenge for for our taxpayers. Additionally, over the past 15 years, the district revenue has not even kept place with inflation. That is a result of House Bill 920. Um those fixed rates that there don't adjust at all. Even if they adjusted with inflation, we wouldn't we wouldn't necessarily be here, you know, at all. We are well under under the pace of inflation. So that kind of spells the need. And then the recommendation is from Dr. Thompson as to how we move forward um and all

036the finances that go with it. >> Thank you, Dr. Ratino. So, I'm going to try to give you some factual information uh to kind of help you determine potentially how to move forward. But, um I I will say this that you know the analogy that you see in the picture, the ship going out um some irony in a ship in water at this point I guess in our world history, but we don't know what the we don't know how rough the seas are be. We we don't know. No, no one knows that. Um, what I would challenge and hope for is that we do what's in the best interest of our students, our staff, and our community. And what whatever you feel that is um I I would ask that we have the courage to

037do that, whatever that is for you. So, oops, wrong direction. So, uh, the questions that I'm that have been proposed that we'll address here on the back half of this is what funding mechanism makes the most sense and why. Uh, what are the tax implications of an earned income and a general property tax? Those are what I mostly focus on. Those two is even being on the ballot in November. Is that a realistic option? What are the risks of the recommended approach that we will uh touch base with here towards the end? What would happen if a levy fails? And uh the question is and we're not I think the two people most baffled by this question are Chris and I but um if your recommendation differs where and why and that's it and does

038my financial recommendation match with his vision that he set for the district and just to go ahead the answer is yes. Um so what funding mechanism makes the most sense and why? Uh so an income tax does allow us some financial stability and predictability. We know that uh we've talked enough about 920. Uh we can anticipate most of the experts are saying we can calculate about a 2% increase year-over-year on income tax uh versus virtually no increase on property tax. uh may be easier to pass as the communities uh are fatigued. I I think people are burned out by constant property tax act ask act ask act ask act ask act ask act ask act ask act ask act ask act ask act asks and um I've heard there's this gentleman in our community that

039kind of speaks to that I don't know um >> all rumors >> is it all rumors okay um it aligns with the statewide sentiment um you know regardless of what happens uh with the movement to abolish property tax clearly there are a lot of folks folks um that are that that are advocates of that. They it has its detractors as well. But I I think clearly what is being stated is that we can't continue to keep doing putting the burden on our property owners. Um and again, it's not subject to House Bill 920. And we've and we've tiffed um given tax breaks for almost so many new projects, whether they're commercial or um uh housing stock. And so we're not even realizing the tax increase we should get. I think every new residential neighborhood has

040either a 10-year 75 RID on it or obviously the case there's a board per tip. Uh but we don't we see that we see the houses built before and the students come before we start to capitalize on any of the financial need from it which really puts us in >> in a burden. And speaking of the word burden, um this does if it's an earned income tax specifically, it does help those residents on a fixed income for sure. And uh they might be house rich, they might be in an expensive home, but they see significant drops in their income. And as a person who's not that far off from that reality, it's becoming more real and real to me even on a personal level. Um captures nonpropy owners, renters, and higher income earners contribute directly

041to the school funding. And there is a perception that it's more equitable by some. Um and residents often see incomebased taxation as a fairer way to tax versus uh residents in terms of some people are homeowners, some people are not, etc., etc. So, what are the tax implications? So, I did income based on 100,000. I did homes. When we do get to that, you'll see I base that on $200,000. There are very few homes out there that are $100,000 in value anymore. So, um, typically that's what we have done historically, but I moved it up to 200. But for income, um, uh, it's real simple. So, we're looking at two numbers 75. Again, this is earned income, not traditional income tax. And I will show you the difference. So, obviously that's $750 a year, 6250

042a month. certainly has an impact. And then the same is true um that should say uh $100,000 income. It says home my fault. That's obviously $1,000 or 8333 per year. So I want to go back to looking at um the five-year forecast here. So this is the February forecast which is if we were looking at the straight February forecast that revenue and surplus would be red all the way across. If you look at the far left 2026 in the red says 896 my last uh well my the fall forecast had that at $1.6 million to the good. That was one change. one change by uh the count lake county on the roll backs and the homestead took that right off our books. So that is uh they have to vote on it year year-over-year but

043it is I have forecasted assuming that that stays as is. So you can see um even with an increase of 75, we only get out of deficit spending for just a short hot minute. It what this is telling you is we're not producing the revenue that we need to get out of that versus look at the red numbers across again on our February forecast with the 1% income tax. So, how can you can we do a building with 1%. Is that possible? 1% earned income tax generates estimated $13.7 million. Our general fund needs at least $8.5 million. The target set by the board was five to seven years to get at least that far in that range. Uh in order to do that, we would need estimated $8.5 million of annual increase in order to

044achieve that goal. Our debt obligation for a 712 building, regardless if it's a renovation or a new build, you I'll show you the numbers. they are shockingly close to one another. Uh would be $5.9 million. So if you do that math, what you'd find out is that for us to do this project at 1%, we would still have to cut $700,000 yearover-year. uh in order to hit that seven or eight or more years. I would hope it'd be more years, but minimally that number and meet our debt obligations. So, it is not as though we're asking for so much money that we don't have to worry about how tightly we manage the budget. It still needs to be managed very very tightly. And and I, you know, I can I can say this um as

045honestly and clearly as I possibly could. I when I came here, I anticipated some lowhanging fruit. Everywhere I've ever gone, there's been lowhanging fruit, but there truly isn't here. We run very lean. Could we make reductions? Sure. But I'm going to show you what that would look like in just a minute. So what are the implications of a traditional property tax? What if we went traditional? So I looked I modeled both four mill levy and a five mil levy. 4 mil levy would collect roughly 6.9 million. A 5 mil levy would collect about $8.6 million. So now we're going to that $200,000 home value. So, four mills would cost $280 per $200,000. So, if you live in a $400,000 home, double that number. And that's 2333 a month at $200,000. Double it if it's a

046$400,000, triple it if it's a $600,000 home. Five mills. Now, we know >> we know do does four mills generate enough money? The answer is no. Remember, we need at least 8.5 million to meet the board's goal of 5 to seven years. So, I modeled five mills, $200,000 home, $350 each year. That's 2916 a month. So again, this is what our five-year forecast would look like with a 4 mil levy. We're not even out of deficit spending. And by 2020, by 2030, uh we're at $6.2 2 million in deficit spending and we would have a carryover of just under $7 million which means we would be levy eminent almost by 2030 we're back on the ballot at 4 mills 5 ms it's a little bit better stretch it a little bit longer um but what

047I'm saying is with four ms or 5 ms or 1% we still have to make some reductions and we still have to run very tightly. One's manageable, one's not. Five mills would be manageable, 1% would be manageable. General operating levy um for homes at $200,000 in value. If we try, what would we have to ask for in general property tax if we were going to try to uh sustain ourselves, stabilize ourselves from a fiscal perspective and build the building? So, five mills for operating, $350 per $200,000. Four mills for $120 million bond issue, that's $275 a year. So for every home of $200,000 in value would be 600 whoop sorry $625 per year. It's a pretty significant ask. So why an income tax? Chris has already hit on that to some degree. Um but from

048my perspective it's the fairest. It's the most sustainable way to fund our schools. And obviously, those that earn more have a higher ability to make uh a payment versus property tax isn't directly correlated with anybody's income per se, especially if you're a senior and you're on a fixed income, which this addresses. We know that the escalating burden on property owners is significant and it ensures that all working residents contribute, not just property owners. It's more reliable. Uh it's voter supported revenue stream and environment where property taxes are increasingly unstable and under pressure. Is November realistic? struggle with that as I sit here and so does Dr. Retino. We've gone back and forth. How How many hours have we spent on this topic alone? >> I I don't want to >> several. But this is where

049I land. Um even still, if we delay, there's significant impact of that. There's a real cost to that. uh because we would lose an entire year of collections by waiting. So what that means instead of fighting out of picture that 5-year forecast in your head 490 8.96 we're either going to fight out of a hole of86 or we're going to fight out of a hole of almost $5 million. So what does that do to your five-year forecast? It shortens the length of your ability to stay off the ballot moving to the future because we have so much ground to make up from waiting a year. Um, of course, the downside of that is can we put together an effective levy campaign and answer the questions that the board will have naturally and what the community

050will have. Can we do that? and and and do that effectively. Uh I would like to have a lot more time, but all all of that swirling in my head, Chris's head, um we could lose obviously, but I really feel like we have to get out there, work hard, get out there every night. we possibly can talk to as many people as we possibly can and make sure they at least know our circumstances. Um I think if they do know and understand, I think we'll have the support we need to pass. So we just have to work hard and that's what it comes down to. Uh, so I wanted you to also know, you know, I don't know what the state's going to do as it relates to state receiverhip because there are so many

051school districts in the exact same situation we are in or or worse. So I'm not sure what that means. So I'm just telling you what state receiverhip means currently unless somehow legislatively it it changes. So fiscal caution that's the first step that is triggered by early signs of financial issues. Uh that will not trigger a response from ODW odo. Uh but we know that we have triggered that from the perspective that we're in deficit spending. The next step where the state does get involved is fiscal watch. And that's declared when our deficits exceed 8% of our general funds. I'll show you the exact specific numbers here in a minute. Um, and what that requires and it will require from us in the fall unless something changes that I cannot I do not currently see will

052be in fiscal watch which means we will have to put a fiscal recovery plan together board approve and send to Odo uh be within 60 days of the submission of our fall forecast. Then comes fiscal emergency. That's declared uh when they say our plan is unacceptable or if our deficits exceed 15%. If that were to occur, then a financial planning and supervision commission uh is put together. It's established. It actually takes over the authority of the board uh and really limits the ability of the treasurer and the superintendent to conduct day-to-day operations and every single expenditure must be approved by the uh commission. So, and what they will typically do or they have historically done is say, "Get on the ballot, require us to be on the ballot, and then cut the state minimums." So,

053think of it if you're going into surgery. Do you want a skilled surgeon or do you want somebody with a butcher's knife? Because that's essentially what it is. We're just going to cut it out. Here it is. cookie cutter state minimums and the repercussions for your district. That's not their concern. So February, again, this is our February forecast as currently approved. So that's what we're looking at right now. So you can see we're in deficit spending at 8.96. That's at 1%. That triggers triggers fiscal caution. Next year, all things remaining as they currently are, which is next year is this summer, by the way. It's not next year, it's next fiscal year, but it's this summer. Uh we'll if our 5-year forecast doesn't significantly change. Um what I don't have in there is we're at

054somewhere around $5 to $600,000 in reductions for next year right now, which is good. So, it had dropped that a little bit, but it's still going to be over 8%. It'll still trigger fiscal uh watch. We stay in fiscal watch. All things again staying status quo, but not by much by8% is all that we're off from going into fiscal emergency in 28, but 29 we absolutely hit fiscal emergency and state receiverhip. That is where we are. That is where we are. And it is not. You can be the most fiscally responsible board and administration in the world. And every single school district will experience this over time because of House Bill 920 and because of simply the way the system is put together. If we were just so I did I I showed this to

055you earlier. If we were just to receive a inflationary increases on our revenue, that $17 million would be about 8 million in cash reserves. But because we don't, we're suffering the same pressures as any resident in this community, in this country feels. We feel it tfold. So again, just a quick summary, uh fiscal caution, you that's where where we uh where we are. Fiscal watch. We've got to submit that uh plan to ODU. Same in 28 and then fiscal emergency in 29. If we do not make and I would submit to you, we couldn't make enough cuts to get out of 29. We we couldn't make enough cuts, not operate. Uh we must have additional revenue or some significant change in state legislature and I do not anticipate that. So what are the risks of

056our recommended approach? Uh the risks are real. Uh again, it's that press cont uh uh timeline. It could impact our levy. Uh and that is real. And but I would also say, you know, I I guess I really don't speak to this the way this board can or the way pretty much anyone in this room can in that I I I I just moved here. Um so I don't I don't know tons and tons of people. Uh but I've been doing this for 29 years. And you can get fields. you can you get a feel you you talk to a few people you get a sense of where a community is and to me it feels like we have some support for our new board. Uh I think you all have shown you know our

057our longtime members like like uh Lori and Belinda have shown fiscal responsibility over dozens of years. I think there is a level of trust that exists and we just need to do Yman's job in getting out and getting this information out to the community and we're going to need everyone's help to effectively do it. What happens if a levy fails? So, I I I would break it up into two ways of looking at it. Um Chris and I have talked about this. You know, I think what you lose by matters. So, I would suggest we we react based on a margin and not on emotions. Set the margin before you know what the margin is. I think that helps guide you. But a narrow loss, five points or less, signals that the plan is viable.

058It has some momentum. And I would say we run it back. If it's a wider defeat, six points or more, we need to reset, take the building off, reduce our ask, re-engage the community. But in either case, there needs to I if we're coming back after a failed levy, we have to be very very crystal clear about what the ramifications are of a second failed levy. And if that were to happen, we have to follow through on that to the letter. You lose credibility when you don't do that. And I've seen that happen um in other places. Conversely, I would say you don't come out with that list before you in November. If we choose to go in November or if May is the first time, you don't come out with that in November. My

059experience is that people's reaction is very negative to that when you haven't failed a levy and it's viewed as a threat, an attempt to intimidate, coersse. Um, we're running lean. We need that needs to be part of our story. We're fiscally responsible. That needs to be part of our story to show the and the facts support that as evidenced by one of the charts Dr. Routino showed of our expenditure per student in Lake County is the second lowest in all of Lake County. Okay. So again, this was a question that was asked. No, they do not differ. Um updated facility costs. I want to well be I want to talk a little bit about enrollment. Um what what we are seeing Dr. already hit upon the number that we construct the building at at 177

060through 12 is uh adequate in our view. Um since 20 since 2020 to now we have lost over 200 students uh and declined by 5.2%. Since 2010, we have declined by over 20%. So, it's been consistent. Are there anomalies where a year pops up? Yes. But overall, birth rates have declined. And we also know this that is so different and so unique. Well, less unique now. We're getting it's been a while, but at least from where I grew up, there weren't many there weren't options. You went to your public school. Maybe there was a Catholic school. maybe. But now there are so many options and we are in a competitive market and I would s submit to you that buildings matter when it comes to the competitive market as well. What you offer parents and

061their students matters and that translates into dollars. So what what we're looking at I know it's small uh I did not make this in the bottom right corner UCDA has put this together for us. So this is a 712 building cost. This is the new the assuming tear down and new is what this assumes. You can see that's the base cost is $107 million for that building. And just to put that in perspective, well, let me go to the bottom one here. So all co everything all in is 119 called $120 million. It's just short of $120 million. In 2019, so not that long ago, in Willoughby Eastlake, we built North, South, and Longfellow, an elementary school for $127 million. That's how much inflation has impacted um construction and construction costs. And the longer we

062continue to kick the can, the higher the price uh for this project is. So again, you saw that picture. That's your That's your 712 campus. There's the night. This looks super cool. Had to add it. Sorry. Uh this is the what I what I'm I'm referencing as a hybrid or renovation. The 78 section of this building is new. The high school is renovation. So the new addition, ironically, is $59 million. The um the renovation is $59 million. Very little difference. But look at this. Look how close total cost $120 million. So I would have predicted and been wrong that renovation would be significantly higher. I think there are some advantages to renovation and there are some advantages to new for sure. Um the one of the main advantages to new is you don't have to

063worry about swing space and you've got that new where even if you totally renovate the renovation job is a bit more challenging because of swing space can be done but it' be a little tighter little more uh challenging and you are as much as you want to make it all new you're still hooking up and using some of the old systems that are 75 years old. So that's that's a downside of a renovation. So that's what the renovation looks like. You saw that the renovation of RHS and the new 7A building. So the summary of the building options right here just to give you a general overall perspective. And I want on the record I want to check the square footage. Ignore the square footage because I'm not sure I I'm not sure I I

064might have typed that and so I apologize. But 12 They both are 1,200 students. They're both 612. They both have a 600 seat performing arts center. >> The renovated one may be more. >> What's that? >> The renovated one may be larger because it's a renovation of the current >> Well, that is true. That is true. Good point. The hybrid model 712, 1200 students. So the pack is actually 850 seats roughly >> uh fa and it comes in phases three phases the existing renovation the new addition and the demo. Um now I will also show you that if you take a look at after it says new addition $59 million you'll see four years at 5% inflation rate applied year-over-year. So we are factoring in inflation. There is a factor in both of them for

065contingency costs. So I wanted to show you this earned income you see at the bottom's at 137 at 1% 75 is at 10.2 million. So if if it if it were a traditional income tax ask, it could go to 75 if it were traditional and still build the building and meet our financial needs for consideration, but much more challenging to pass. So, all funds um allocated again 13.7 million, general funds 8.5 million. I showed you this. That's a $700,000 reduction we need to make. Could we make reductions and then reduce our ask? Fair question. So if we drop to a 75% earned income tax, general fund still needs 8.5 million. Facility still needs 5.9 million. That would create an annual operating deficit of $4.2 million. Now before I go to this next slide, I want

066to say that it is um arbitrary. It could you could mix it around in a thousand different ways, but I I think it shows you what's important. So So what what does what does that look like? If you if you have to cut $4.2 million, what would that how would you do that? What could that look like? So if we looked at it from a few different ways, if we increase student academic fees, so I applied a $100 fee to 3,900 students across the board. Could be any it could be any different number, but it shows you what you need to see. If we did pay to participate, again, $100 for every student who participates in whatever that might be from athletics to musical. If there are 400 kids each season that are participating, uh

067remember that's just the high school now or the middle school. Uh you generate about $120,000 less uh free and less FNR issued lunch. The early retirement incentive, it fluctuates from year to year, but it's about $400,000 annually. I put that up there just to talk about there. There are some contractual things, but please keep in mind that that cannot that's not a decision the administration can make. That has to be negotiated. Um, and I would submit to you that probably be difficult to negotiate out. Certainly not negotiate out without something In return, if we rift reduction in force of three administrators, these are low-level administrators, that's 390,000, we'd need to riff roughly 30 teachers. Six support staff to hit our $4.2 million. Again, you could structure this differently. Sure. For sure. But my the point

068I'm trying to illustrate is $4.2 million is incredibly impactful. Incredibly impactful. And there would be unforeseen consequences of doing something like that like student exodus out of the district. Uh so the idea that we could reduce our ask at least if it's in earned income tax by 25% isn't realistic. So our recommendation is to consider placing a 1% earned income tax on the November 3rd ballot. The purpose is to support general fund operations and construct that either in new or hybrid. I don't think that that doesn't have to be answered today. Uh we're really fortunate that it's the same price. So we don't we can debate and talk about that longer. I would say that it would be paramount to make a decision fairly soon um because we're going to need some renderings, etc., etc.

069Um but we're fortunate that we don't we don't don't have to make that decision right away. Some of the key points is that is again a sustainable revenue source for our district. Um it applies to our earned income only. Our wages and salaries doesn't apply to social security pensions, retirement incomes. And where we're at, where we're asking you, as difficult as it is, and we understand how difficult it is. We've a lot of hours spent talking um just talking about what should we say to the board, what should we tell you, what should we recommend, what what it it hasn't come easily. So, um, I guess I would just like us if we could just to answer these questions. So, now there's the what and the when. So, if it's a 1% earned income tax

070and we can walk out of here with this this or the next slide, our our preference is this slide. Our second choice is the second slide. This would be really important. So what if the what 1% earned income tax? The answer is no. It's no. You're done. We're done. At least with that topic. If it's a yes, then that brings us to the when. Is it November 6th or is it May third? May 2027. >> So I just want to give the board a Are you good? >> I am good. >> All right. I am good. >> So let >> No, I just I don't know why I said I read 27. So that No, May. I'm not sure. I'm not sure when the May date is, >> right? So I just want to give

071the board time to ask some questions. So let's just start with one topic just to kind of keep us focused. So Chris is Dr. Tino is recommending again in collaboration with uh Dr. Thompson that we go with operating money in facilities. So I want us what questions do we have about that approach? >> So I I have one just to be clear. I I assume I know the answer but we know what happens when we assume. >> We do. Um, when we talk about facilities, I just want to be clear, RPI fund today, what do we have in there to do any kind of facility improvement? >> So, we we'll lock up about 1.1 million of the 3 million in Buckeye. So, we have as long as we keep earning the interest rate that we

072interest on the investments that we've been earning so far, it's been pretty steady, but we we have roughly uh $2 million. um which I would submit to you at least until this project is completed. Um we need reserves in case of something catastrophic and I'd be scared to to to to uh tie up over the course of time anymore from PI. So, you wouldn't recommend using what we have left to replace a roof or to put new windows in or Okay, >> that's got to be for >> 1.1 million is what's left. >> No, no, I'm sorry. 1.1 million of the 3 million is locked up in Buckeye, leaving us about 1.8 1.9 million for repairs. >> Right. >> Okay. I just wanted to make sure that was clear. >> Go ahead. Sorry. So when

073we when we had talked about this years a number of years ago, we had talked about taking the dollars that we had set aside in our PI fund and we were going to use those dollars because we had moved them over from the co funding um and we were going to use them for maintenance facility and a bus facility. >> How was that wrapped in here? Because >> those dollars were spent >> they were spent. Correct. They were spent so they're gone. So now are we not addressing those needs at this point? >> So one of the thoughts and again the renderings that we have came yesterday after we we tked TDA to kind of give us some ideas. Um and I in speaking with TDA some more um we we do need some more

074information from them but one of the thoughts we had in the in the current situation of if if we were to build the hybrid model so new new new addition keep the original high school rebuild it is to keep the current media center um of something and then what what's called the TING which leads down to the John R gym to address some of the maintenance facilities and all of that and then as part of a project work that in we don't have costing on that yet nor can we say this is viable or not but that is definitely one that we have um to which keeping the media center and the John R gym is pretty easy and Ryan so that's pretty thoughtful and pretty pretty standard and we can work that and we

075have we do have contingency funds built into each of the either new or or renovated to build onto the board or to build the board office um in a addition onto the house that's currently sitting there. um if that money if those monies could be used and repurposed into some sort of renovation of those spaces there as well. >> But that's not really answering the question because when we like like I said when we've done this before it was almost $6 million that we were going to spend on on a maintenance facility and a bus garage. We don't have a lift. We don't have a bus facility that's that's sufficient to work on our own stuff. Right. Um, and so we >> it was $6 million. That's gone because we spent the million dollars, a

076million and a half of our own funds on the CT X edition and we spent $4.5 million on interview. So, it's depleted. So, it was 6 million at that time. Um, I just don't feel like that's addressing this. >> That's fair. >> That's that's part of it. um >> it it it doesn't at this point in total fairness, it does not address that issue. >> Yeah. And when you look at the costs associated with um the um and I just want to clarify when you talked about the auditorium um in the print is a little smudged there, but um was it 800 seats did you say or 600? 600. >> It looks like 600 to 500. So, a new a new build is a 600 seat auditorium. >> A hybrid renovation add-on is renovating the

077current auditorium space as it sits, which I believe is closer to 800. >> Yeah. >> What's that? >> But right now the um >> 450. No, it's it's 6. I think it's 800. >> It's somewhere I mean the way this looks it's somewhere between 5.8 or 6.4. 4 million and those are the that's in the ballpark of addressing the bus garage and um you know transportation facility and maintenance. I don't know if maintenance staying where it's at, but we definitely have an issue with the transportation facility. They don't have a lift. Um there's all kinds of issues. >> It's currently over in Concord. >> Yeah, it's in Concord. And then they they also use a little bit of space in the fieldhouse. Um I don't know if does this also address some of the needs

078of the fieldhouse because you identified there's no air conditioning more space. I I I don't know. I wasn't part of those conversations. >> So again, I I think just to kind of keep this I I think these are all valid and things that we'd have to dig into more, right? If we would decide to go with whichever way and we'd have to have some discussions about how to do that and how to move forward. Very valid. I guess just to keep it at that higher kind of level again. Um is there any questions about the approach of building something new and or any is there any questions about building and adding sorry is there any question about adding facilities plus operating money um if we move forward? >> I I have a lot of concerns

079about that. Um, our community at many points has indicated, I mean, we asked them for facility. We've asked them for operating dollars. I I I'm not a I'm just going to come out and I'm going to say it. I'm not a fan of com combining facility and operating into one ask. I'm just not a fan of it. I I >> can you tell us a little bit more Belinda just for un understanding of why you're >> because because I believe that we could do a hybrid model of half a percent income tax and 5 mil levy and split the two. Levy financing for facility is fixed. It collects for a certain period of time and then it's done and nobody like if you do that wrapped up into an income tax either you're going to

080say, "Hey, I'm not going to collect that anymore and I'm going to give it back." You would have to do some board action to give that back. Um so I guess my my question you're that sounds more like about how we go for the money to do it, right? Do you have any concern with saying, "Hey, yes, we want to ask for operating and yes, we want to ask for facilities." >> Yes. I'm not sure that I just don't know that we're ready to ask for facilities. I don't I'm not there yet. >> Well, and and you know, we also have to look at the history. Um there was an ask for the high school and I don't know all the finite details of it but I do remember the failure was around 75%. And

081um it's huge and that was how long ago? >> Well >> I I we need to have this conversation because it's part of that >> I don't disagree. I guess what I'm asking now we can is there a concern with the uh vision that Chris has presented? >> That's why I'm asking personally an hour and 15 minutes into it. Um, so far so good in my opinion. I I in having had discussions prior to this, I I think that 1% in one for both is a reasonable starting point. I do have a question specific to that. I don't know if anyone has control of the PowerPoint here. Uh, but on slide 30, >> you're welcome to use your packet if you don't want to [ __ ] This is a ways back. So if you don't want

082to go back, >> tell me what I'm looking for. >> It's this one here that has the February forecast with 1% earned. >> Yes, >> and it shows the future years. My question is, so it ends in fiscal year 2030 in this graph. What year do you think that 1% does put us in the red? 2032, 2033. Well, the the thing that's important to remember about a uh income tax, it takes two full years before it fully collects, which which is um part of why it doesn't impact the 5-year forecast quite as much. And the other thing which I did not build into the forecast is a 2% increase over time, year-over-year. So I I I feel pretty comfortable that um would we would we find ourselves in a position where we had to Oops.

083we had to potentially go back on the ballot at some point. Yes. The answer is yes. But I this gives us the best opportunity to stretch the longest out of any of our options. No guess no guesstimate though on >> if we're talking 2030 I mean just looking at I know you said this doesn't this doesn't have the 2% rollover but it looks like the depletion is about 50% year-over-year starting in 2029 2030 >> it won't it wouldn't even kick in fully until 2028 >> right so I think you're asking do we think we could get out to fiscal year 2032 with this >> yes I believe that. Yeah, I don't have any question about that. >> 22 million. >> And the one thing I wanted to ask is just because you know in conversations

084I've had um people wanted to know the re um revaluation um originally that was what 3.6 but then the county took 1.2. I just want to get my figures straight. >> No, that is um I can speak to that. that has been >> compound. So that number is >> state legislation has taken that away. So anything that we got over um I believe it's 3% of an increase has been taken away by state legislation. Now it's not taken away this year um because they're just not doing the sales tax holiday and they're funding it for that. So we have a one-year kind of hold harmless. In terms of our collections, um, they put in they put in some circuit breakers that that do limit our inside millage adjustment, which is what that is when we

085get to the 20 mil floor. Not only that, we they took us off the 20 mil floor because the substitute levy counts. So, we're about 20.1 I think or somewhere around there. We're real close to it, but because the substitute levy now counts as a part of the 20 mil floor, any any predicted increases that we had, I believe we we were predicting um about 1.3 mil, I think, is what we were thinking we were going to predict um for that that gy any any of those have been taken away. Um and so they are we are actually it it reduces back. So you take the county's roll back and you combine the state's holding us harmless this year but county puts a roll back in again. We're we're not going to collect as much

086next year as we collected this year because of that. >> Okay. So just to play the advocate for the the taxpayer. So I'm paying $1,100 more a year. Where does that money go? My the value of my house was it's re-evaluated. So I'm paying more money. I thought it was going to, you know, 3.6 was going to the schools. So now it's not going to the schools. >> Inside knowledge increases for everybody except the schools which are subject to >> but I'm still paying that amount. So where does it go? >> Did you call the state? >> YOU WOULD HAVE TO KNOW YOUR INDIVIDUAL TAX. Your individual tax bill would specifically spell it out. Now you paid that money this year. You're supposed to get a rebate back. And I believe that's how they're doing

087it when they put the levy when they put the the legislation in. There's supposed to be our credit on the next statement. I think they're crediting it is what they're doing. So there's a lot of because it came out after it. So you you should get some of that money back, but then you also get the the doubling on the on the owner occupied and then homestead if you qualify for that. All of those get doubled as well. Um and that's where the but still when they change some of these things I believe it it and granted schools take the majority of these of of local property tax but some of the other inside knowledge that goes to other places I don't think those are subject to some of these some of these rules I

088have to double check that and I'm not harmful >> but again I think everybody can look at their own individual property tax bills and it'll spell it out for you right So, so what I want to know is um so you said that the commissioners took 1.2 million. >> So is that figure going to be adjusted because of what the state does? >> I I you're the one that had the conversation. So that is a really good question that people don't understand and then we don't know all of the ramifications of it because if you get to say the 20 mil floor you 920 will kick in and if you go below it then do you adjust back up to so they don't know all of these laws are out there and there's all these

089scenarios where they're not 100% sure as to how they're going to play out yet. Um but they're they're in they're making these adjustments for that. And again, you're you may be paying 1,100 more cuz your individual house value may have gone up a lot more than your neighbor who their appraisal did not go up as much. So on average, our house values went up. I think it was 29% in the in the district. But that means on an average that some went up um and some went down. And so some people are paying less taxes. And again, in your specific, your $1,100 more also includes an additional fire levy that was voted on as well for that for Concord. So that came through at that time. So it's not only the appraisal and the adjustment,

090but then now you have the 3.9 mil f fire levy that was passed from Concord at the same time. So our Concord voters um are paying the additional 39 plus um whatever the reappraisal was. So it was kind of a double hit. I you'd have to look at your tax. When do the commissioners have to vote on this and will the state like define all of this like when so that they're making a um informed decision? >> I think the commissioners are going to vote for it regard I think they're going to continue to vote for it. They they they took it away once. I don't see them saying oh yeah we're going to in fact the last times we heard the commissioners they were if it benefits local taxpayers we're going to continue to

091do it. I think they're going to continue to do it. I don't and we have forecasts for that. I do not foresee a scenario and >> okay >> maybe I guess that's being conservatively um >> well I think we have to anticipate right we can only do yeah >> so you you went all the way forward again and I was still looking at slice 30 sorry >> I'm sorry >> yeah sorry I haven't seen go >> yeah I'm sorry >> I don't know who was doing I've got a question on it so the >> say I'm just going to look at 2030 you've got revenue you've That new levy you have expenditures. Is the building included in the expenditures and the board will have to approve that expenditure every every year? >> Every year. Yes.

092>> Is that included? >> Yes. >> So we're anticipating the revenue for for on the 1% income tax would go up 2% a year based on the fact that you think average wages will go up by 2%. >> That >> but healthcare and things like that sometimes go up 5 to 8%. >> They will. and we start >> how so and we're tying oursel into building and then we're tying oursel into that that large expenditure that's rolled into that number and now that begins to eat away faster and faster at what we have left for operating >> there there is no question to your point that the absolute safest way to build a building is a bond issue that's guaranteed money that can't be spent on anything other than a building. I concur. If if

093we could pass that, I would be all about that. Um, so I understand what you're saying. Is there a risk involved? Absolutely. There's a risk involved, but just it's it's the same as taking out a $15 million cops. It's the same thing. I mean, theoretically, the school the district could um fail to make that payment uh and then be foreclosed on it. That's possible, >> but that's not going to happen. And we're going to pay that first and we're going to deal with what's left. That's I guess that's my >> I would say that's the same thing. That would have to be the same thing as it relates to this. >> I think that's the point. And then we make we make that required payment. >> And now because other expenses have gone up more

094than two >> and I get it. We're guaranteeing ourselves at least two which is better than zero. >> I agree. I I understand your concern. >> Okay. Is the earned income tax like a continuous thing? It doesn't need renewed. It's on the books >> continuing. If we ever got funded differently, for instance, the state makes our funding formula, you know, no longer unconstitutional, right? Like could we go back and >> Well, one of the things you could do, um, most recently Parma, uh, there was an article someone sent me on Oh, Joe, Mr. Gardino uh on Parma schools um where they're seeking a 1.5% income tax, but they're going to um >> remove their >> remove the remove some of their property tax levies as it in response to the income tax. >> Yeah. I

095don't know what the legal requirements are to give back income tax. I don't know if you'd have to say we're not going to collect that and then try and pass a new one at a lesser amount. I don't know. I don't even know how that would work. >> Well, that would be for removing an income tax. Palmer's only removing >> Well, right. They're removing their >> property tax. Be a hypothetical where we'd want to >> Well, the school if the state starts funding this differently. >> I see. Oh, I see. >> I mean, we could be hopeful that they could get funded properly. >> You would hope that at that point they would say this is the way we're doing it going forward. all of your income tax processes are null and void starting in

096this. >> Yeah, that would be my only if if something changed >> or you could pull back the propert. >> Well, and also as a reminder, the budget commission or the county budget commission is different now or um the county budget commission can adjust um if they see too much in a in carryover. They they can go through and adjust a pullback levies or pull back collection number. Again, it's a property tax adjustment for an income tax. Um, which the argument of of perceived fairness is there as well because earned income is coming from certain um certain population property tax. Again, we're shifting the burden off our businesses onto um onto our our our families. Um, which is a that's a that's a big shift in >> in the whole >> surely the more >>

097educator >> the state the businesses they would love. real quick. I want to go back again. I want to get us back to the operating what what we're going to do, right? So, buildings and operating. Blind, I didn't get a chance to follow up with you. You said at this point you don't think you're not there. So, I'm just trying to understand kind of what other concerns you have. Can you share with like what what else you're concerned about about saying, "Hey, let's move forward with the recommendation of operating in facilities." What else? Because you said you just weren't there yet. So, I'm just trying to understand a little bit more. >> I can't put it into words. I'm just not there yet. >> Yeah. I I'm going to um speak a little bit because

098I've struggled with it a little bit. Um and and I did a lot of homework on this and had a lot of conversations just to to glean what people are thinking out there. I mean, you can't even go through the um checkout at Drug Mart on Pyro Road that there isn't a senior working and there was a new gentleman the other day and I said, "Hello, you're new." And he says, "Yep." He said, "I turned 65. I lost my disability and now I've got to work to pay my taxes. There's a lot of that out there. Yes, they're working. Is it going to be a lot of money on an earned income tax because they have this job? >> Zero. It's zero money on an earned income tax if they're >> No, it is. Oh,

099no. >> If they're working a job to pay their taxes, you're right. >> A chunk is going to come out. >> Yeah. It's not their retirement >> because that's what is happening with >> a lot of people, including myself. Um, I guess I go back to and I don't know if this helps you at all, but um, needs and wants. Um, we obviously I think everyone at this table would agree we have the operational needs are paramount. Would I like to see a new high school or new facilities? I mean, obviously we've been on this track to improve and rightsize our district and and get there, but I can't ignore the economy and the people I interface with that I I'm worried and especially in terms of we put it out there before in a

100good economy and it went down by 75%. >> There there's I'll disagree with you, but no matter what we put forward, someone's pocketbook is going to get hit. The 1% is, in my opinion, the least amount of human beings that get hit. And I don't know at what point and what age the school reaches before it transitions from a want to a need. >> Yeah. >> I I think this I think a new school has surpassed us just kind of saying it's a magic wand want. It at some point has to become an absolute need. Um because we talk about what's left in our in our PI fund. At some point, this school is going to have I mean, knock on wood, but some catastrophe. Hopefully that doesn't involve the harm of anybody. Well, we're

101not going to have the money to do it. >> I suppose my biggest thing is I think people need to have choice >> and we're taking we're taking away their choice for one or both by saying you don't have a choice. you have to do all of it. And maybe some people just can't afford that right now. It's a really crappy economy and if we're going to ask for something, I would rather just take it a little slower than that. I don't know. Like I'm I'm just again I'm not I'm not sold yet. In my 22 years of uh of my career, I think if you ask >> certain people at any time, some of them are always going to say that the economy is crappy in all of my 22 years working. Okay. I

102I I started working in the great during the great recession and uh the last time you asked it was during COVID and uh property uh construction prices were even higher then. There's never going to be a right time if you're looking for the perfect time. >> Yeah. And the thing is I haven't had a lot of conversation although we have some representation here but uh dual income um homes because it isn't just one income it's two incomes out of that household. So, you know, you also have to think about that and people are trying to make ends meet and people are stressed financially. I mean, maybe not everybody is, but it's a tough economy. I I I I want to set us up for success. I that's my bottom line. I'm just thinking what's the

103best path to do that without a failure. Well, our our second look at this, if you're ready to talk about that, is operational needs only. Um, adamantly opposed to two issues being on the ballot at the same time. Adamantly opposed to that. >> Can you explain what you mean by that real quick so everybody's on the same page? a a two a a however you frame it, if it's a bond issue or however it is that you can vote yes or no for an operating levy and you could vote yes or no for a building on the same ballot. Absolutely no. Um that's fiscally irresponsible. Um chances are it would doom both of them anyways quite frankly. But if it didn't and a building somehow were to pass, we have now just increased our operational

104costs >> with no way to pay for it. So if if the idea is to separate them to give people choice, which that makes sense to me, if if that is in fact the will of the board, then I would ask that we go this route. Reduce the ask. If it's yes, then it's still win. Still the win. but reduce the ask and then at a later date come back for a facility if that's the will of the board. I would tell you that it's hyper critical that five people are on board and five people are supporting it. There's also the concern of having two separate issues that a lot of people, and I don't mean to disrespect anyone who would go to the ballot box, but might not understand what they're voting for and

105both could lose because you have a percentage voting for yes for this and a vote a percentage voting yes for the other. So, there's also that concern. Well, there's a big communication uh factor here and that most people are not they've never been presented with the income tax to really understand how is that going to work for me? Um because we're always asking for levies and that they're so frequent and this is a one and done is what you're saying. >> All of our levies are all >> No, I'm saying an income tax would with the exception of the the joint financing. all of our all of our letters are continuous and we did that. So there is not there there hasn't been an ask for for for a long time and that ask has

106been on um you know property tax because that was always the way that schools were funded. >> Yeah. >> I think the shift in policy from um businesses to the homeowner coupled with the largecale appreciation um put property tax as target number one um and public enemy number one. And I think that that is I think everyone who you pull about property taxes, if you just say, "Hey, what do you think about property tax?" Everyone will tell you, "Well, I don't want to pay them." Um, but then when you start to have a conversation with them about what they actually pay for and why, they start to understand uh that that portion that they are useful um and that that there is a point and I want the services. I don't necessarily want to um

107you know, if that's the way to get the services, that's where they are. I think it's a bigger it's it's a it is a much bigger issue than just hey what do you I think the other thing that with property tax that really limits it and Dr. Thompson has, if he's done nothing else, he's hammered it home. Um, they don't grow with inflation. So, it's a it's a fix some ask. We have to go out and guess what we're asking for. Uh, and then we're stuck with that. And we make that stretch and we stretch that as I squeeze blood out of Iraq uh from from where they're at till we're till we're ready to go back again. And we we continue to do that. And part of that is we there is there is

108some when we made a bunch of significant cuts, we did not bring everything back. We didn't bring half of those things back. We brought some things back um to provide the experience, but the experience is different now than it was prior to that when we made significant cuts for our students. It is um that that's a portion of even part of the the reductions we're making just through making smart fiscal decisions. um and making decisions based on we are we are changing the things co put it in during those co years the one thing we have to remember was money was great we were getting money from we were well funded um and all schools were were pretty well funded some even more than than Riverside um but I think really and that goes back

109to where we are funded from that first chart 71% of our funds are from a local fund that is the third highest in Lake County um and where you look at where our businesses are, they're not as much, you know, they're not all class B. They're all class A. And that's the majority of our funds come from our local homeowner here. And I would say if you just looked at class A funds, and I I'm sure we can figure this out somewhere, we're probably the top because we don't have we don't have the the base that Wickliff has, nor do we have the base that um Willby has. And I think part of those fundings too um also include the new funds that Wickliff just paid for uh for that brand new campus which came

110through. That's a significant amount. Willby has all the the the school funding that are also coming. Matter has a huge huge industrial base through men that we don't have. We have some industry but not nearly not nearly the industry of the others. And I think that's a that's a pretty pretty significant shift in where we're at. So I I know that that that's a that's a shift. I also I I also think you know when you look at what earned income is versus versus all income um you know the the two family income we fully understand >> that that is a legitimate that that that's a legitimate challenge with this method of of funding schools. >> Can I give a I'm sorry. Can I just give a perspective on that? In my opinion, 1% on

111one person who's bringing in 200,000 is harder than when, this is assuming there's two people, there's two adults in the household. When I say this, than when both of them are bringing in say 200,000 and they're paying 1% each, now you're bring you're you're bringing 400,000 into the house. There's money to supplement the the loss in in my opinion. So, I I honestly think that coming from a house where both my wife and I are both income earners, I see that being easier in that scenario than when just one spouse is making money in the other. >> Yeah. I I've had a chance to talk to a bunch of different people from people with young children in our district to people who have no children left in the district and even um some of my

112neighbors that are retired and um I think they're more open. I'll be honest. I'm struggling with any of our solutions um as far as how to fund this, right? Because I don't think there's one that's perfect. But um when I look at this um I would agree >> and I just I just Googled some numbers because I understand the two and I I have a household with two working people in the household. um n on average they said a which I think this is low but this is what the internet said is um two working people in the household is an average um income of 90,000 which seems low to me might be old numbers but let's just go with that I'm at 1% in um and divided by 12 so how much would that

113be a month for them is $75 a month so again I I understand it's more money I I get it um we don't have a perfect solution the perfect solution would be that the state funds us appropriately me, but I don't think we're going to see that. We do have needs. We have operational needs. That's definite. And I think we do have facility needs. So again, we just heard if we don't do any like we have to hold this PI money that we're going to have left because of what we've inherited then for a possible emergency. So again, I understand needs and wants, but I think we're probably more towards the need side on the facilities. um even in even more on the need side with the operational money. So um I think it's important

114that we just don't talk to one base of our entire district. We have to talk to everybody, young kids, no kids, retired, everybody because there's no perfect solution for any of them, >> right? And the thing that would complicate this in being able to sell whatever approach we go is the fact that we don't have clarity to explain what the state is doing, how much income we're really going to, in other words, how this is going to look with the taxes they're already paying. Um, you know, when are we going to know that? Because that feeds into November or May. When are we going to know what the state is doing? >> Well, but seriously, because we have to explain, well, I'm paying this amount and and we have to explain why. Where's that money

115going? And >> but they need to look at their property tax bills to understand where that money's going. That's not >> No, no, no. You But what Dr. Ratino said is that the state is changing this about >> they've changed their law and there may be a rebate. >> Those laws have been put in place. It's how those laws are going to get actually enacted and when they come out is the biggest they and and I don't I don't know if they're done addressing property tax reform yet. >> Okay. Um, I think there's still some things that are out there that are going to continue to uh look at because I will say there is there there is also a a group that is working to put amendment on to just get rid of all

116property tax and nobody knows what's going to happen if that amendment makes it to the ballot and if it passes um and what that looks like because you have all the money that's bonded in property tax um and where does that go from? So, I think that's like those are all questions and those are all hypotheticals that we don't have the answers to to some point. We there's there's they're starting to make some some adjustments to that. But I do think um what I heard uh Dr. Zern say when he spoke was the average adjustment from the roll back to our families was about $120 annually. Yes. >> Um and and that was something that he came out with and I know that we and we've had some conversations with him about what this looks

117like from from the entire you know from that perspective. I do think too, you know, you talk about House Bill 920 and how it impacts us as it brings everything down. But House Bill 920 also if we see a great if we see a huge depreciation in house values like we have a housing market crash >> 2009 >> house bill 920 would come in and then say okay now your house is valued so much less now you owe us more so it it adjusts it back up. >> So it it works it works in both ways. We typically only see it when it works in terms of house and especially now we're only seeing this because we're seeing the big in the big impact in housing devaluation the housing markets just jump up astronomically um

118especially in this area. >> Yeah. So are you talking about the guarantee so if there's a loss we still we don't lose. Is that what you're talking about? >> So we are on the guarantee from state funding. Our state funding has stayed the same forever. It it it does not change and they've never funded that fair school funding formula. But that's that's a whole different thing. This is in terms of where >> the house >> it is it is about the it is so complex and they're trying to they're trying to put a simple fix in for a complex problem. It's so complex because we were at the 20 mil floor. Now we're not. So now we're still collecting where we're at, but we're really close. So the next reevaluation will probably get to the

11920 mil floor, but we're not going to see the gains that we used to have because we're not there. And even if we did, you can only gain 3%. So you're not So all there's a there are a lot of districts that we're seeing who are on the ballot now who are looking at larger sums and all that who have seen a larger impact to this because of it. We're not seeing that impact yet, but we're starting to see some impact where we count on a little bit of an increase. And what we're seeing is, you know, eight $600,000 increase and we're seeing a $500 $600,000 decrease giving back. We're seeing it held for a year, then we're starting to see less next year. But those are and then you've got the other things that

120hit too. You got the roll back, you got you know insurance costs, all of that have compounded to where we are now. Um and it's only getting worse because the property tax reform that we're seeing is not it it is not impactful and we are gaining at most 2% every 3 years. So it's not even 2% a year. It's 2% or 3% every 3 years. So it's a percent mean. So what we're what we are saying is we are coming back and back again to the local tax owner. And then you throw in some of these other levies or some of these other laws that say hey you know if it gets and we don't we're hearing it's not going to get traction but it might if continuous levies all of a sudden aren't a

121thing anymore. If that gets traction too now for it's I mean >> you know it is we are Yes. It is >> but to address the question of we need to have these questions answered before we can move forward which is logical and understandable logical and understandable I'm telling you it's not possible though it's not practical look guys we keep well we don't know what's going to happen so we're going to kick the can another here. That's our deficit. Look at where we are, folks. And if we're just going to do an operational levy, which that would be our second recommendation. At least what I'm hearing right now. There's no way we're going to get consensus on a building. And we don't have time to kick this two more weeks down the road. We don't.

122So, we need to be on the ballot in November and we need to be on it for operational funds. We at at least that >> at least. >> Why do you feel like you need 100% consensus? >> Because if you go out into a community with something that is that is as controversial as a building and income tax and something new and all of that and it comes out to a 3-2 vote, we will not pass. We need >> that's part of why our last one failed by it. >> We need all five people singing the same song, preaching the same message and believing in it. And there are reasons not to. I'm not judging anybody here, but I'm saying please, as your fiscal officer, we got to be on the if we can't do

123a building, then I'm hearing we're not not >> Well, I I don't know that we've heard that. I guess >> I don't know that we've heard that either. I'm just Where are you at? Okay. I'm I'm still Let's keep moving forward. I'm I'm not saying no. So I I You're sensing some hesitancy. I don't think it's hesitency. I think it's legitimate questions. So I don't think we're all ready to say that it can't be a 50 vote. But I see where you're coming from that >> if if there's not if there's two people here, for example, if two people vote no, there's constituents who would go with that just based off of what they know of that of that board member. Sure. But I don't think we're at the point where we're all saying there's

124no momentum to move forward. >> And I guess that's why I keep asking. So where are you at kind of right now as far as Chris as Dr. Martino's vision? >> I am >> I'm not saying give a yes no vote. I'm just trying to understand where you're at. >> Yes. I I see the 1% in November being the most logical choice as of right now. >> Well, but I'm talking about the vision of operating in facilities. >> Yes. Okay, Jimmy Lee. Yes. >> Okay, Belinda, I hear you're not there yet with the facilities. >> I feel like I need to hear from people in from our community a little bit more. >> And Denise, where are you at? >> I I've tried to talk to some people, but I don't think I've talked to

125a big enough cross-section. Um, but I did get some feedback today from, you know, this presentation. But I I I think I go back to we're in stressed economic times. And >> I guess what I'm asking though, I understand >> I'm probably definitely at operations. >> Dr. Tino, you've had some meetings with our community. Can you tell us what you're hearing? >> So, I think that that I think of those who have showed up to our um strategic plan focus groups. We've opened it to the entire community. Of those who have showed up, facilities has been a priority. They have they have come out and they have said they are ready for us to address the high school facilities. going back and looking at our surveys both in the most recent one and 24 and

126the one and 19 uh secondary facilities is a priority to this community and and addressing it. Um, I do believe that of those even in the prior bond issue that was out there, there was a large a loud contingency that that said that this building um is sacred to them and it is very important to them. I think we've addressed that in in our modeling of whether we build brand new and re revision it um but build it so that it looks the same or whether we build the hybrid approach and build onto it. we are we are addressing that they came out that came out very loud and clear in everything we have ever done um even with our alumni and all that when you talk with them about facilities um you know and

127and and I joke all the time our our alma mater is written about the halls and the paint color on the halls when we call it the halls of ivy that is it is that important to this community um and I think that we have we we have honored that past um and and even in the other parts of the story of the fieldhouse house. We are honoring um the past that got the fieldhouse to where we are and yet we are looking to how do we supplement that? How do we continue to build through that and how do we you know preserve our preserve our future? We've talked a lot about what that looks like in in moving forward. So I think I think we've addressed a lot of the issues that came out.

128The other parts that you heard um into why why it failed. Yes, obviously there there's an active there's an active campaign against it. I I wouldn't suspect um any any less of a of a campaign to there. I think in some of that we we've addressed, you know, the going through this building. Look, yes, there are some there are strong walls here. Um everyone you talk to with new construction versus, you know, old they don't build them like they used to. There is something to that to that standpoint. Um there's also something to the fact of, you know, yeah, she's got good bones. The bones are good, but we need to do a lot with with the pipes and and all of that. and um you know how we address what that is. I I

129think that I think that there's a lot of of discussion that's there. But I know our community who are who are coming out to to support and and to give their opinion whether they have students or not. We have those who don't have students in there are mentioning um we need to address our secondary facilities. H >> how many people came to the focus groups, the recent ones? >> Um >> because I know it was over the holiday too. We've had about 30 or 40. I mean, there's been, you know, we're sending a survey out. They're going to have facilities questions on there as well. I am going to tell you that that survey is going to come back with the same issues that we need to address our facilities. We'll send it out to

130as many people as we can, make it visible. We'll get it to our um our constituents. I I will tell you that that has been something that's come up when we need to do something and we need to act. I think we hit it with Buckeye. we're addressing that and are are having three elementary schools that are going to be um equitable in their services that they provide and provide that same kind of experience. Um and I think this is the this is the last >> step in two questions. Um just because people can't see the rendering and this is the first time I'm seeing it. So the media center and John R would not be there anymore. Um, so >> well I don't think that we know we don't know. I'm just looking at

131the drawing. I just want to know. >> So that drawing has the media center the media center and John are being being demolished just >> for pretend. Okay. Um and it was and and that was a >> okay >> to be honest that meeting we set that meeting up to get some costing estimates as to because we had we had heard and we assumed our assumption was renovating and just completely renovating or any type of renovation would be astronomical compared to just building new. You've heard that all the time that that is and TVA came back with hey here's a here's a solution where they're pretty close >> and that that was something that we were not on the >> we we didn't we didn't even think that was >> but we know renovation that

132>> once you start opening these walls you don't know what you're going to >> that is true as well >> that the contingencies >> and again which is interesting because TDA gave us the data the last time we did this um >> construction was a a lot more expensive than >> I I' I'm going to go on record and everybody I think everybody understands I am not against facilities. I have been a proponent of facilities since 2009 when I ran for board the first time I ran for board. I'm all for facilities. I'm not sold on the method of of how we do it. So So I just need you to hear I can get behind a building. I don't know if I can wrap my head around this stuff yet. I'm not there and

133I can't vote for that yet if I >> understand. >> Right. So I want people to understand I can wholeheartedly get behind a building. We all know that. But I >> that's what I was trying to get at. So I'm looking at this as two different things. >> Two different time. >> So that's that's the win. And I think that's our that was our concern as well cuz again this is it's an abbreviated timeline. >> That was our so when we have our you when Dr. Thompson I said we we talk about hours we keep going back and it's a big circle we spin around because really and truly May is May is ideal for getting all the wind together who the partners are. We've we've had conversations with community partners to say, "Hey, we

134want to do this. We think this would be a great example. Put a community center in." So, we get more buyin because if you provide a community center, a senior center or something like to that aspect and we find alternate funding for them and we provide a we're building construction. So, now all of a sudden costs are reduced for them as well because you've got scale. Having that all of that information as a part of this project we think that that's a critical piece to it component to it that all takes some time because they all have boards or they all have directors or they all and bringing them to the table and that wasn't a part of the original plan. It was about a school and a school our school is more than a

135school. I mean you need this is we don't have a community hub. This can provide that and that's >> I believe that's going to take a lot longer than a month. >> I absolutely >> right. So, like that's why I'm not there yet. And it's going to be a process to get there. Not, hey, four weeks from now we're going to vote on something. It's I'm still not going to be there. We're not going to have a ton of these questions answered. >> Yeah. Um I'm just looking at the numbers up there and I know we didn't put in the the 2%. Um is casement development proceeds that thing. >> Not it's not started yet. >> I mean, so we don't know. I just yeah I I just talked to somebody who said they are

136moving towards >> this question is for for both of you. You gave us the hypothetical of we do it in November and it fails and then we do it in May and here's our financial situation. What what we didn't look over is if we do it in May and it fails and then we do it in the following November. Right. So what what would be the situation then? I don't expect you to have that. Remember if you pass in if you pass or fail in May or you or you pass in November, >> it's the same. >> It makes no difference in terms of collection >> because you Yeah, you only um get a half collection in that first year. So we would get a we would get collections in January of 2027 but no

1372028 sorry 2028 in and starting in January but it' only be a half collection and that wouldn't begin until January whether we passed in May or we pass in the tax will not collect till 2029. It takes two years essentially to ramp up all. >> So if you go one more so go one more year >> on here >> then you're not collecting till January 29th. >> So correct. >> Correct. So can you hit the button one more time? >> Yes. >> Because the year you pass your income tax you're passing it for the following year and then they're going to do tax returns the following year. >> So we don't we don't go on this November. Say we don't or we fail either one. Now we're to here. So this is the this is

138the hole we're digging out of and we would begin to get a half collection here. So that's the hole we're digging out of >> on property tax >> on a on a property tax. That's correct. Income tax would even be slightly longer >> income tax. So let me let me make sure in >> but income tax ballot in 2027 can you can't go back and pro proact or >> pro pre-olct. >> Yeah pro retro >> ret. Thank you. >> What's the word? I didn't hear it. >> Retroactive January. >> They're voting in May. We're going to go back to January. Yeah. I'm going to be against that. >> No, you can't. >> It's starting in January the following year. >> Right. Correct. >> Right. >> Yes. >> So technically you don't get it until the

139year after that 29. Yeah. >> So, so for example, if we if we did a bond issue, let's just say a traditional bond issue, >> you're going to be able to begin construction faster than you would if you did an income tax because you have to wait for those funds to start receiving those funds. >> And an income tax, you're only going to you're going to get it over four quarters. You're going to get it in four installments. You're not going to get it in one lump sum either. You're going to get a big chunk in >> we get it in two now. >> You income tax, though. income tax you'll get a big chunk in April and then you're going to get it in July October and then the following January because that's when

140people are paying their taxes and that's when they're paying their estimates. We collected income tax at the ledge and that was our cycle >> um was four quarterly. >> So let's flip the discussion a little bit. Well, going to going back to case I just want to go back to casement and even and even any of the other developments that we didn't have a say in those as as the residents move in if they are earning and bringing students we collect on them when they move in as if that income tax is on the books. Whereas in casement or or any of the others, those properties, >> they're subject to 920. We see a little bit from the new growth, but overall, we're not seeing the amount of growth we would get if we expect

141all these families to come in. Having this structure in place is more beneficial for us as a school because now we that is that is additional income, not just a leveled income where new new housing goes back to the whole pool. You get some, but you don't get the overall impact that you thought you would get cuz you get some on the inside mouth, but not on the other ones. >> I guess I would be >> 920. >> I would be a little bit more comfortable if I could see this a little bit more detailed. >> Which part? >> Yeah. >> You mean more lines like more P&Lesque lines? >> Yes. and more years and and scenario like this is what happens and we pass it here and this is what we collect and this

142like I would like to see those line items in there individually. Here's the revenue from the income tax >> and this is what's going to go for facility because >> and what the expectations are for general operations because again some some of our expenditures for operations are going up more than 2%. >> Oh, they're all going up more than Why do why do we not uh forecast out farther than 5 years? >> Well, um I can tell you in my experience, I would tell you the viability of a 5-year forecast isn't even that great. >> If you if you look at if you look at a five-year forecast, year one is should be rock solid. Year two is usually pretty good. Year three is shaky. Year fours and fives are way off. >> And it

143would be good to just say, "Here's my assumptions." And that this is this is what it's plugged. >> I mean, I could stretch it out to 10 years for sure. I mean, I I don't know the accuracy of that, but because there's just so many >> intangibles, variables that I I don't know to account for, but I can do that if it helps. >> All other things being equal, this is what it would look like if these are assumptions like >> Yeah. And I have two things. Going back to casement, we have two new board members and a new treasurer who is not I don't know if you've seen the what was the the agreement and and where how we're recouping 100% back off that deal and how it looks over a period of 30

144years. Correct. >> Um it's longer than 30 years. >> Yes. But we need I think it would be helpful to see it. People need to know that's on the horizon. That's so far out because we don't know when it's going to happen. So, you can't even project it right now because we don't know when >> it's going to start. >> It was supposed to be >> people in houses by this fall and they're not going to >> Yeah. And I get it, but I still think we need to see it. >> They're a year or two out. So, you got to push it back. >> Yeah. >> Which which I think we I mean, we could look at what that looks like. briefly explain the what she's referring to the >> So we have a

145so so the board voted for a tiff for casement and it's in five phases. >> Can you explain what tiff means? >> TIFF is a tax incentive >> tax in incremental funding. >> Yeah. >> To which the the city or or actually they they give them a tax break. They still collect taxes on the wood. Those monies go to the developer to put in and develop and the township to put in um infrastructure to develop the develop the infrastructure kind of start the project up as a bond >> possible amenities >> sold in the bond. Yeah. The um there's going to be a I think they're putting in a town center. >> So taxpayers are funding this essentially. >> Um the the casement property the the casement owners themselves are buying it for the next

146>> Oh, it's just >> it's just for that just for that specific area. That is a unique area as well because when you buy into the casement property, Basil Township has an additional 5 mil bonus on there for each of those houses that go just to funding the township. I mean they they they kind of say it's like an association fee instead of having an association, but typically you see those are these are five. It's it's a large number that's going to fund the township. >> So basically what it's doing is they're asking us for the money to fund it up front. >> Yeah. So we don't like it. >> But what's unusual about this agreement was that um typically like I know in Concord we didn't get 100%. So >> we weren't made 100%

147whereas this one we are >> in in stat and please correct me if I'm wrong Dan in statutory law a township can just say to any new development um we are going to put a 1075 which means over 10 years 75% of the taxes they are pulling from us the tax come from us they're pulling those and using them for whatever we would still get 25%. They don't need us to agree to that they can just do it because hey this is what we can do and they said we can we're going to do it. That happened with us at the multi home development by by Caseman Concord did that and the new one off of uh prrowy it they did a 10-year age 75 is 1060 um on on those are larger houses they'll

148pull those after 10 years then we get 100% of the tax bonds that will come from it um >> but you don't get reimburseed for those years >> don't either and and it also is just to that increase goes just in inside a millillage it does not impact all the stuff that is outside of that because those are subject to 920. So everybody else's tax bill goes down a little bit when those taxes come online because you can only collect what you said you want to collect. So it only deals with like the four inside mills that we have. So we're not seeing the huge growth that gets there. What a tip is is a tip is a negotiated agreement where we said for anything longer than 10 years or 75%. We said to um

149we we worked with the township to and the developer were all part of it to say we're immenable to this but what does it look like um from that end. So what this one is is upfront we only get I don't think we get anything for the first two years up front. After that we start to see some of the proceeds back. Anything above what's predicted um we split the difference. So, we're guesstimating what these properties are going to sell for. Um, and by lending those funds and bonds. Anything more than that, um, we we work to split those because I think they estimated the average home in there to go for $400,000 and and went on that. Um, if they sell for over that, >> um, then there's extra money that comes there that

150can go to the township or we we negotiated where that money goes as well because it's not a straight It's not a straight agreement. So, >> so we do get made whole, but it takes us 10 years, I think, till we get made whole. And it's >> per section. It's a pretty decent >> um we'll put the spreadsheet in there. It's very complex as to how to figure it out. Um >> can you put the agreement out there for them? >> We >> I'm sure I can figure it out. >> Can you put it in the board? Just we'll put it in the board folder to >> I think the challenge is though until they start building until homes start selling there's no guarantee funds. So you asked about why don't we forecast out past

151five years. >> They forecasted 30 plus years, right? And now they forecasted 30 plus years already on year one which should be solid. They haven't started building yet >> default. >> Okay. So >> so you know what I'm saying like one of the things I wanted to ask about you know the forecast is the um there's negotiations coming up right? >> Yes. Good point. Mhm. >> So, I have a placeholder in in negotiations. Uh if we don't hit said placeholder, then uh those numbers will be worse. >> You mean you have a placeholder in the forecast? >> I do. >> Okay. Great. >> And I mean, it's public record. It's 2%. Um but two, they haven't seen 2% in a while. That was would be >> it's well and it's not it's I don't mean

152to speak for you. It's also it's also healthcare increases. >> Yeah. >> Um we're focusing 10 >> for healthcare. >> So so if if I mean you never know may 10 is been pretty steady uh >> the last two years. >> So your forecast has two 2% raise 10% healthcare adjustment >> plus steps. And of course we've calculated steps included steps. So steps are in um some of the things that are a bit harder to project is column movements um that impacts. So so we account for some of that but that's a year toear guess but if you know if you if you put in 2 two2 you know it's always difficult. Some some treasurers put in zeros and I'm opposed to that because it make it makes it it artificially inflates your 5-year forecast.

153And so as a board you look at it and you think, "Oh, it's not so bad." And then a contract comes and they're two and a half, two and a half, three, and all of a sudden your fiveyear forecast is blown to smitherreens. So >> on expenditures is there is there uh I would assume maintenance is would go down. There would be less money needing to go into facilities facilities. Is that factored in there at all? >> Um no not at this point. Um there would be some degree of savings. Uh but the additional increase in expenditures or or operational costs are um air conditioning now. Now you're running air for a pretty big building when before you didn't pay for air. >> I I think too for a fiveyear forecast we wouldn't I mean

154it's a fiveyear project I would think too. So you wouldn't have to build the new building online and have been completed and wrapped up. I I guess just from a very practical perspective only very practical perspective is regardless of what if we're going to be on the ballot this November regardless of what it is um especi if it's a building where where we again Chris and I talked about it for hours we we thought we even thought about even pulling the recommendation quite frankly because we were so worried about it being so tight up against November. If if we wait another two or three weeks to make this decision, I think it renders it renders us in a >> pretty hopeless position. I mean there is there is that >> you don't want to you

155want to be as transparent as you can and be out there and say these are this is what we're on for this is what we're doing these are the these are the renderings and all of that and to get the and and those things there's a lot of work >> to that and time to that and effort that goes into that and there's >> there there are only so many hours in the day I think that's and and I think it's put out the the challenge And Belinda, you hit it right on. I mean, the challenge truly is that that well perfect plan is not a building in November with a bond issue that those >> even if it's not with a bond issue like that's neither here nor there. I don't know if we

156like >> is there any real downside to saying like go in November for operational and then go into May. I I'm just asking what is the >> from my perspective if we can't go on a building absolutely we go operational in November >> at least operational >> but I think what Belinda is asking is what's the risk of putting the operations on November and the building on later >> I mean like what are you thinking the risks are because quite frankly I'm not quite certain I feel that there is do you know what I mean >> so I think the risks are we're sitting in a 75 year old building that's had a couple years where they haven't necessarily maintained that all of the things that could go right now are incredibly expensive. >> But

157even at that, you're even even if you went November versus May, you're still >> you're still 5 years out. I mean, like, what difference does it make? You still have that. >> Yeah. So, I my question is a great example. >> I'm sorry. >> Yeah. I mean, they're they they have their new building. They're ready to go. They're ready to open it. It's delayed a little bit because of construction. October, their boilers go. in the original building and they have to heat that building from October till January that when they can get occupancy, that's an additional cost. Now, now you can do it with >> temporary boilers and and working things and all that, but that's a that's a legitimate that's a thing every year. >> I get it, but I don't think we're fair

158poor either. I don't think we have a different type of a budget than they do. So, so like all fair, you know what I Like >> I understand the concern of doing both at one time, right? This quickly, but I also have a concern of doing two separately for this reason. You knock on someone's door and you ask for $10 and then 3 months later you 6 months later, a year later, you knock on their door and ask for another $10. Regardless of the dollar amount, they're saying you're at my door again. Whereas if you had asked for $20 originally, you might have gotten a yes. But the fact that you're knocking twice, meaning the fact that we're going to ask the community to go to the ballot box twice, run two campaigns, get the

159momentum for people to get out of the house, and it also depends on what else is on the ballot. If there's other things on the ballot, it could be uh uh to our detriment or to our benefit. It just it depends. It also depends on um what what what parties in power that determines a lot of whether educational things pass or not. So, there's just a lot to consider. Um, so I do have a hesitancy of of splitting it. >> I think it will be very telling what happens in May. >> I I agree with you. >> I believe that that >> not I don't say we should sit back and sit on our laurels and not do any work, but I'm just saying I think it'll be very interesting to see >> I would

160agree with that. how well or how poorly they do in May and and and take a take a listen to that. Do you know what I'm saying? We've got we've got >> wicked lips on there's I think across across the state there I I haven't seen the exact numbers cuz I >> it'll just be interesting. >> But I would I would agree. I think the majority of the new money issues are earned income that I have seen. You have not se I've not seen a lot of traditional >> I haven't seen any nobody I don't know >> is the one that I know >> put property tax >> it's 49 >> I don't even know I don't know anybody who does >> nothing I just saw that article today >> so what's what's the dates

161again >> let me ask you this I I guess I want to step back one second let's let's twist this a little bit I went more let's do we agree with the vision right let's step back and say, "Does anybody disagree that we think we should be on the ballot in October?" Not for what? Just be on the ballot. November. >> Sorry. Yes. Nobody should be on the ballot for October. Lord, >> November. Okay. >> I don't even know where October came from, but anyways. >> Does anybody disagree that we should be on the ballot in November? Four, >> not four, just >> anything. >> Something >> more than a Okay, let's just say for at least operating. >> Yes, >> we should be on in November. >> Yes, >> that I can agree on.

162>> Okay, what do we need to do so these guys know what we want them to start going after to say we want if they can go on if we should be on the ballot for no in November for operating and facilities. What what do we need to do to add that second piece of the recommendation? >> I mean, what would we have to say? It had to be a fully baked plan. >> They'd have I mean, you'd have to have when I say fully baked, there would have to be all the things that we just mentioned. >> Well, but I just heard I heard May, too. So, when you say fully baked plan, tell me what you mean by that. >> Well, I mean, I I see where Miss Gra is coming from that

163doing it November without having all the answers to all the questions we're going to get in the community. So, we would have to have all those answers. Yes. And I don't know if there's >> I don't know that we'll have all the answers. >> Well, we lost 70 to 30 and we had every flipping answer to every question people wanted to know and we still lost. >> Yes, but we had board members. >> But we right we had board members who were out there telling people we didn't have the answers. A debate between building while between renovating or building >> still on the ballot. Let me let me finish that train of thought though because if we still go back out to the public and we don't have the answers to the questions, then we

164really don't have the answers to the questions and then they can't we I can't fault them for voting 7030 because we didn't have the answers. We have to have the answers and I don't think we can have them. The the community was the community was brutal with their questioning. >> Again, I think there was >> I get it in play at that time definitely. Yeah. I I don't think >> but I don't think that you I don't I don't believe that you're going to find really >> you're still going to come out of the woodwork. Well, I know that there was something um I remember hearing wasn't paying 100% attention, but the fact was that the there were renderings, but there was no real finite plans >> because that's the that's >> I know, but

165everybody kept saying, "But that would cost a fortune, you know." Is that am I correct? Because that's what I >> was $163 million ask. >> Yeah. >> And versus now four years later, it's And people are going to want to know why is that different but the rendering is massively >> over. Okay. I'm just telling you they're going to want to know what those differences. >> I would say the difference. >> I I I also think the difference is in I mean yes you you have those you you have the questions. You have those who are are are the historians cuz I heard I've heard that too that you know that that you're you're not going to you know all of the other things all we're getting knocked down and that's not what we need.

166And so you hear that too. So I think part of the answers we don't have all the answers because I would that's but I think we are addressing what we have heard over the years as we've come through is yeah we we we hear you love the building. Let's let let's build something that either looks like it or isn't. I mean or we just renovating it. Let's let's let's look at that. >> So but I I don't think you can go to go out and say one or it might be one or the other. We have to know which one is it going to be. Which one? >> I would agree. >> So here that I Yeah. >> So here's the thing. I guess what I need to understand because I don't know that we'll

167have to get on the ballot in November. I do not know that we will have when you guys say all the answers. I guess we need I need to understand so I and Dr. Tino and Dr. Thompson need to understand what does all mean? Because again I every single question is not going to be I guess some people are just not going to want it. >> I don't mean every single possible >> as soon as you answer their question they'll move the goalpost and then you'll have to answer. >> So I guess what's the minimum that we need to give again we're not going to have renderings because you can't we're not going to go out and pay for the renderings right now. >> Okay we know that then do we think do we think

168hypo if we don't have those things is it even worth us entertaining the idea of doing both in November? But but you're asking us, right? But it's gonna be the same thing. No matter who will the partners, who will the partners be if you think that there are going to be partners? Are they willing to do that? What's that look like? What's the structure? How much are they going to give? What's what's that going to be? Are we going to what are we going to do with the maintenance facility? What are we going to do with the buzz garage? How many square feet are is the facility? What are we renovating? What are we rebuilding? Like those are questions we have to answer. >> Yeah. So I think I think so to all Belinda's questions

169and this is what I mean by all versus some. I know Dr. Tino and Dr. Thompson are having conversations. They're meeting with the township trustees coming up. They've met with the YMCA. They've I don't know who else you've talked to. >> I'm talking about uh >> uh they're talking to these people. Can they tell us who is possibly confident that somebody will partner with us? Right. They might be able to. Will they be able to answer every single question? >> And I don't think that they don't think they will be able to have those agreements in hand prior. I I just I there's no I don't think >> until you're until you're ready to build. >> We will not have >> but again I think what they can say is with confidence we think these

170are these guys are going to partner with us. >> Yeah. I would think I don't I don't agree with that. I believe that those boards will have to like have some some thing that says we've agreed to partner with you. There will be some agreement that we are agreeing to move forward and we're setting some parameters. What those look like? Who knows? But they're they're going to have to come up with that. They're not going to say, "Well, yeah, I think we will." >> Mr. McIntyre, I'm just going to wealth of knowledge. Um, you've worked with a lot of different schools in this kind of situation, I'm assuming. Any kind of thought on how that would work. >> Sure. Um, oftentimes it's done with a general memorandum of understanding that would be reached between the

171two parties. It's a very brief document. It's essentially aspirational. comes an agreement to agree subject to the development fully of the the co-development or the partnering plan. Um but it all starts where Dr. Ratino says you are right now. Um oftent times you know uh county libraries end up on or near school district property. That's a common model in multiple counties in the state of Ohio. And so that's what where you've described things right now, Dr. Rino, is where it all starts. And to say here are our partners, our potential partners, which is what other districts will do under similar circumstances, is a fair representation to your community, knowing that it's subject to lots of work that's going to take months, if not years, to to finalize. Um, but I think the mechanism that you're

172using is the right one and to get some momentum around that idea and to be able to share that with the board hopefully would be enough at this point because it's really all you can hope for under the circumstances. >> Okay. You you had asked us board members if we were okay with just operational in November, but I I would like to turn the question to the two of you. Would do you prefer if if if not that we do operational in November or we do both in May? >> I would I would I would prefer we would have started a month ago, but um we didn't. So here we sit. What what what I'll say definitively, >> I I think it's a I think it's a significant mistake not to be on the ballot

173for at least operations. At least operations. >> So you're saying if we had the preference would be just at least do operations. >> At least do operations. And while we frame our campaign upfront, being completely transparent, 75 meeting our operational needs, we're working with our partners. We're going to come back in May for an additional increase at 0.25 or a bond issue. I don't care what what bond I'd feel safer with a bond issue if we could pass it, but whatever it is. But we're going to come back. We're going to address our building needs. We need to address our building needs. But all of these questions that are out there, we're not going to have those questions answered in by by May either. It it's you're you're just you're just not. We were finalizing

174partnerships at in the midst of construction. I would >> and and will of East Lake, >> but we got them all done. >> I would agree. You can't wait until May, not next year to ask for operational dollars because what you're going to ask for in November is going to start the clock ticking on January 1st. You can't wait another year. So, if you don't go till May, that's you're waiting until to collect anything. And we can't do that. And I I would agree with you. >> Can you take us back one more time, Mike? I'm sorry. While he's taking us back to the Let let me re let me rephrase my question then. You you both came in here with this packet. Were was the hopes that we'd be doing both in November and

175and >> Yes. Yes. The hope was that we would >> and you're saying that we can't answer all the questions whether it's 3 weeks from now or 6 months from now because things change during the process. So why would we be better off I'm asking this is not rhetorical. Why would we be better off to wait for the for the building to be a part of it rather than doing it now? >> I I don't I don't think they're >> I I >> Go ahead. You I'll give you that one. >> Um >> I think >> Can you put Can you just rephrase your question again? Yes, you two you you came in here with this. I'm assuming in the hopes that we would be on board with this November with both being a part

176of one vote. One vote on the ballot, not one vote at this table. With that being said, and the fact that you're saying that having a fully baked plan in 3 weeks is not realistic, nor is it in the middle of a construction process because it just doesn't work that way. So, if we're never going to have all those things answered other than who we're planning with a basic rendering, things of that idea, what would be the point of delaying doing both now? >> Why wait? >> I think that's what they're saying. There's not >> I know. I want I want them to say sorry. I mean, yes, >> that's the recommendation. You're not >> That's what I was I just wanted to be that blunt about it. >> Wait a second. to Miss Graass's

177standpoint is going November with with the 1% you start collecting in January, you're still you are still committing to the building and to the per and you're you're bringing these people in and you're bringing them they are also making significant capital commitments as well that they particularly may not have and they have to see what can we how can we work to funding, how can we fund the other parts that are there that we have seen modeled in in Wickliff for instance is is asking for the community center and then the ask that went to there to kind of help with that and what that looks like and looking for funds and and reaching out for that and what that looks like across five communities is a lot different than what it look like in

178in Justin Willoughby or Justin Wickliff and and the tenor for those communities who in some conversations with people to get them to the table even is is there any interest or tenor to that? And they all kind of perked up and said, "Yeah, that that could work, but I don't know where that's done in in other areas." I could think of Macedonia built a community swimming swimming pool a long time ago. This is long time ago, but eventually opened up to the entire district, which is similar to us, the five communities that come together. Eventually open it up to the entire district. But it was originally just that city's community, that recreational facilities complex where they open it up. This would almost be the exact opposite where there's not really a city that has anything.

179It's it would be the Riverside if we if we were able to get Concord and Panel Township and and Leroy on board the Riverside Senior Center. Well, what is where is that? What does that look like and how does that look in this opportunity? What's the cost? And then they would have to argue out who's spending it all. I would say, well, you're taking money from us in the first place. You know, you could use that in the in the in the ridge that you're doing and help that help you build that. >> But I think that's the like in terms of of of the complexity that's there. There are some complexities in in our specific circumstance that are very different than using the model at at at willby East Lakeake where East Lake had

180a specific setting. Willby had their own because Willby Senior Center, it's the Willby Senior Center that partnered with the schools and not the East Lake Senior Center. I don't know if the East Lake seniors get to use it, but it's a >> So, back to your question, I guess. I want to make sure >> I think their recommendation was this is the right thing to do. They have confidence in the recommendation they presented. >> Right. >> Um, >> okay. >> That's why I asked you to restate. When you did this in Willoughby, >> when you when the board first voted to proceed, >> were the plans any more baked than they are right now? >> Yes, >> they were. >> By a ton, like you already had all these partners uh signed on, the YMCA,

181what the rendering would look like, where the pool was going to go. Um, by the time we hit the levy trail hard, which we hit it about 5 months ago, um, that was all done. >> And >> um, and the plan the >> the planning with the Y took three years. But the advantage we have with the Y is the person I work with is Dick Bennett who and we've already had we had all the legal stuff already done. He even me he even mentioned that in our meeting that that's all done. Um I mean it's an incredibly condensed timeline with November. >> Yeah. Well just just look at this and I will go wherever you want. Remember, if we pass here, have collection next year, that's a regular issue. But we're talking about if

182we do income tax, we're going to be close. >> That's 15 is the cut off. Right. >> Mhm. Right there. Right there. We're done. We're done. >> And that 142 is assuming all things are equal. >> Right. Right. So, so, you know, I really truly in my experience, 29 years of this says, if you don't have all five board members on board, I mean, you're you touch the seniors, you touch everybody. You're the most liked person in this community. >> You guys are younger and new and have been out on the levy trail. And that's true. That's how I would say. one of those things. So, so no, I'm not trying to give anybody compliments. I'm just as a strategist, I'm saying I need you guys to get the younger people and this you you're

183you know them. Everyone likes you. >> Everyone knows you and you and you reach out to everybody and you're connected deeply with the seniors. If you're all on board, I like our chances. But if three are on board and two aren't or three are two, you know, however them, it'll fail and we don't have a week to kick this. >> I think what I'm hearing is you've got five people who are who are okay with operational in November. I'm >> then we do that and we go back in May for of some kind of building. You you've decreased your odds of passing. You've decreased your odds of passing for absolutely sure for exactly what you said. Your $10 $10 analogy is exactly what there'll be people that'll be like, >> "What the heck? You guys

184were JUST ON THE BALLOT. >> Keep tapping me." Yeah. >> Now you're coming again. Sounds like you still have to work that, >> MR. MCINT. THANKS. >> I'M JUST telling you. >> It's a lot of time. >> I I've heard this go out a lot. Yeah. >> And strategist and all that. And the real answer can come down to, you know, when you when you make a vote, a lot of that's personal and the what's in it for me. >> I don't >> 100%. >> I think the what's in it for me when you when you sell the one community vision of operating and facility reaches a lot more people than the what's in it for me for just operating. Now, I can say that earned income, the what's in it for me for our

185senior community is well, unless I'm working for some reason, I don't that tax burden isn't in it for me. So, what's in it for me? I can still support my schools and it doesn't impact me financially. That's what's in it for me is I feel good about myself supporting the schools and it doesn't >> What's in it for me was I didn't have to pay for anything. On the opposite side, if you're going to hit just the ear earned income for operation, then this the young people are saying we want schools now there's nothing in it for them and they're getting taxed. >> Mhm. >> I think we could get >> I think we I think we could within 60 days of if we had a green light today, I think within 60 days we

186could getus. If we're going to get a senior center, we can get that done. I think we uh Dick sort of already alluded to anou um a memorandum of understanding in terms of you're not fully committed but at least we can go out on the trail and say this is the vision here's the drawings and here's some pictures of what it'll look like. Not perfect, not perfect, but >> this might be me not understand the process being new. If the if the five of us hypothetically we voted five zip to couldn't this technically be an MLOU. I mean if we said let's move forward and then 6 weeks from now we find out that our hesitations were right and and some of the concerns have blown up and we want to put pause. >> You

187can always pull it off. Yes, you could all you if if we hit May and the and the income taxes got their butts kicked across the board, you could always withdraw from the ballot. >> So that's I guess that's why I'm asking what is we don't have to pass these proposals until June. what I wanted to work on. >> I know like >> nothing official, but I don't want to go I don't want to be out there >> doing all the work that we have to do if we're not going to be on the ballot >> if we say >> I think you I think you guys have to do the work in order to convince those of us at this table who aren't sold on it yet. We have to do the work. >>

188But the other work that needs to spin up at the same time involves getting the kids re resurrecting the kids committee. we started to have those conversations and bringing them back into it. Um having having a levy committee start to get together and get those boots on the ground to work and what they're what they're behind and what the vision is and and spilling with some of them. I think that's a part of it too that that has to work in in concurrently because it's not just hey we're going to move forward this and put this forward but it's also all of the work that happened and and really and truly see you know Dr. Thompson and I can tell facts and these are the facts. these the actual truth tellers and those who can

189outside of these meetings who can go out and and give the reasons you the yes votes and all that are you5 our kids committee and everybody else and we can continue to get vaccinated and when we take vacation days then we can say yes we need to go vote and all that but it but for the parts that when we are on the clock working which is any other day that we don't take vacation according to the attorney general we we are giving facts. >> Okay. >> I I'm I'm concerned we don't have some of that stuff kind of buttoned up at least in better fashion than we have it right now and then they fall through and people already voted. I'm concerned about that and I'm and I I'm concerned about again I'll go

190back and I'll just continue to maintain I'm not I'm not completely sold on the completely funding all of it with income tax. I'm not not there yet. Again, >> I I don't know what it would look like for us to vote on, but I would almost wish that we would have some kind of vote of confidence to say get the ball rolling and you have you have our blessing, but we have the right, as we all know, legally, to hit the pause button. >> And you don't need a resolution or anything to do that until you go to do it. >> Well, and I think that's what I'm saying. Like, why are what is the hesitation behind doing that and like getting bringing more data to the table? Well, I I guess what I think

191that means is the levy campaign is rolling. >> Oh, >> we're rolling. >> I We That's what That's what I'm saying. We need to form our levy committee, >> make our investments, begin >> sign ourus with our partners. >> When you say make our investment, what's the financial implication if we do all that and then pause or or or rescend or stop? Uh depends on it depends on how much we spend but thousands >> on what hypothetical >> all your literature your signs your your >> Well, but but that would that wouldn't be till later down the road, right? >> No, I think they're they're trying to like ask us to do that now and I'm >> not ready to have us do that now. If >> what would be on your yard sign now

192until >> remember you you got what early voting in se >> September >> October >> early voting started >> early October >> for May. >> So if you guys recall when we were on the for 2016 for the bond lobby I mean we were we were doing meetings neighborhood meetings as early as >> with Kis >> but we already had a we already had we were a year into this process already. I'm just saying the process of getting those meetings, getting that information out there. >> It is Dr. Thompson alluding to >> I think what they're saying I if I'm hearing from both you and you if we we need to commit now to something so that those things can start happening. So we need to commit now either to operating alone operating in facilities

193together and again I like how you've been putting it. If we can say we think we're confident that we can move forward with operating but we know these things like to come to the table you can start that if we're going to sit here and say no we're still not confident that that work can't begin and I've ran multiple levy committees I know you have also it's a ton of work it a lot of work um so I I I think if if I hear what you're asking you guys are asking us kind of give us with confidence where we're going >> yes >> um I just want to Mr. McIntyre, I saw you shaking your head at a couple things. I mean, from what you've seen in schools, again, the risk to us right

194now, kind of where we're sitting, have you seen other schools at this point at this time, and have they come out with a positive outcome or do you see them more likely the risk is really high? >> Uh, no. I think the risk is very high. I I I think it's immeasurably high. I I think uh now is the time for action. >> Absolutely. >> Could sorry could you be more specific? Action define action. >> Uh ma basically what Dr. Rino and Dr. Thompson have laid out is the approach that I would say the vast majority of school districts would uh implement immediately under the circumstances that you find yourselves in if they were in those same circumstances. >> I think I know it's not a legal question, but I know you just see so

195many different things out there. That's why I wanted to ask. >> It's you you are in the 11th hour and it's time to make some decisions. So you're speaking operationally >> because of the forecast. I I need to >> so yes absolutely operationally but I would also say that from a facilities standpoint uh my non-legal perception is that uh the state of this building is such that it needs immediate attention and it's frankly very difficult to to solve a facilities issue of this magnitude um with with this other circumstances you find yourself in in terms of needing operation money. Um but to come for the board to come up with essentially a an enthusiastic endorsement of what Dr. Rino and Dr. Thompson have laid out I think is the question that you need to answer

196tonight. And um I would say that most school districts would um would jump at the opportunity to have leaders in place that wanted to pursue that with the community. Right now this facility needs work immediately. >> A community that is probably more engaged than it has. I I I know I wasn't asked this specifically right now, but I'm going to share it. I I think that there's so many there are way more pros of doing both now when we're not going to the public twice. I think that uh I think when we get the package that operationally if we don't pass it in addition to the building aspect that there's going to be a lot of cuts to the hypotheticals you laid out with teachers and administrators and programs and pay as you play and

197the fact that we can package that all together. I think the momentum is in our favor and if the two of you feel confident that you can package this and present it to the community in a meaningful way then honestly um I have confidence in both of you to do that. >> I like how you said that I would be on board too. Mhm. >> And you know, as far as your experience with income tax, I know East Lake was looking into an income tax and then they scaled it back by a point and you know a percentage and then they took it off the table entirely, right? It went from two to one. >> They So for instance, your your exact questions, they started at two. They saw prediction this from pre pri prior

198to they saw predictions of the impact of legislation. Then they then they pulled it back a little bit. They saw impacts they saw the impact. So 2% they were to pull off all their emergency lobbies. It be 2%. Then they then they saw the impact of all the new house bills and they they had to they're well 2% doesn't cover this. So they pulled it back. Then they went to one thinking one will work. still saw some implications of what was going on. Pulled it off again to kind of to take a look at, you know, the bigger picture as to where their implications are. Granted, they're slated to lose a lot more money than we are. It I think it's to the tune of 8 million a year, if not more. I don't know

199the exact number, but their increase was a lot larger because they have been on the 20 mil floor forever, and every single levy was an emergency levy. >> Crushed over that. >> Yes, we are not. So that that that bill alone significantly impacted where they are two years out um to the point where I don't know I I think it is it is astronomical what they're going to do for the lift for that and again >> right >> they're not they've got a lot more business funding they're not necessarily funding as much locally as we are too. So there's a bigger asp in in that aspect as well from our standpoint and where we are looking. Um you know this is again we're building on the momentum. It's it's a one-time ask. It's a here's

200where we're at. Come come all in. You know it's it it's both. It's packaged. It's it's there. We will work to get out every single thing we can. And I think it's okay to say at some point, yes, we're working on that. We will get it as soon as we can. And if if that's the sole reason because it's it's a it yeah is a it's another quarter of a percent. I understand there's implications to whatever you ask for. But that that looks a little different sometimes than a than it that impacts, you know, than a 9 mil list. that that that looks a lot different than a 5 mil bond issue where we're specifically spilled out and that is we are addressing we are absolutely addressing our our our high school needs. Here's the

201render we came up with. Here's the first aspect. We continue to build that out and as we build it out we'll share we'll have those meetings publicly we'll bring you in on it and and whoever wants to come and be a part of it that to be a part of it but as soon as we get that momentum rolling now we've got some we've got some unrolling. Yeah, we got to keep in mind we have five board members behind the whole plan for facilities and this is what we're doing and this is how it's going to look. Um, and we still have some opportunity, but there's other untapped funds that we don't even know that exist and aren't necessarily grounded or even organized. I think of the youth sports and all the youth sports and

202all the use they want in our fields. If we could get those parents organized in some way to say, "Hey, we're doing this." And it may be on the back end of a five-year project, but we still have Cleveland Construction. They may come to the party late. The same way the senior center and will be that at least the story. I don't want to speak for you, but the senior center kind of came a little bit late to the party and added into it. The same way that happens if we start planting the seed now with some of our our strong sports parents, the same way they kind of raised funds for the fieldhouse, fieldhouse 2.0 0 could be a re a real a reality because now you're building construction at a much reduced rate

203than you would be when you're when you're doing it on your own. Our our our eye clinic and doctor's clinic came in at the completion of it was the last deal we struck and we had already built out the space >> and they had confidence because of what they saw and the fact that you had board support and I'm assuming I'm assuming the case the same would be for us. There might be third party companies or businesses who hear that we're all on board moving forward and say, "Well, if the board is supporting it and think about what would happen with um the financing for Buckeye, there was some scare tactics there and they backed off, we would have the opposite effect here if we were all pushing forward, >> right? So, I just again

204I think think we're kind of running in a circle here. We we don't have all the information. I think um we need to say besides refer three things, I guess. to you. Um, Miss Graassy and you, Miss Brewster, can you get behind the recommendation of the superintendent and treasurer as things develop or kind of where you at? >> I'm I'm going to cross my arms and just squeeze my fists really tight and say I if you guys are adamant about doing this plan and you're behind this plan, if you're behind this plan, I'm going to get behind this plan. I'm I I have reservations. I'm going to ask you 1,500 questions. >> I expect that. >> I mathematically that was a weird thing to say. >> I I actually expect 501 >> and because I

205know it's I know I know all of this is what's best for kids. I get it. I have lots of >> But it's not just what's best for kids. >> Let Let me finish. I I'm I have lots of questions and lots of reservations about the funding mechanisms and whatever. and I'm going to ask you a thousand questions about that kind of stuff because >> because people are going to ask me because that's >> what I do and they're going to they're going to ask me that stuff and I have I have to feel comfortable giving them an answer that I'm comfortable with, not something that's just being spit back from you guys because >> I would just set your limit at 2,000. >> Okay. That way you have that >> 500 bucks. >> I'll

206get you GPT limit goes way up and the cost is really expensive. I will get you one of those grocery counter clickers you can have that remember those red things. >> Remember those I >> No, with the just the little red clicker. >> Oh, >> I'm dating myself. >> I remember. >> All right, Miss Bster. Um, I I totally hear everyone and their rationale and everything, but I'm still weighing on what is going to be successful at the ballot and and what I hear day in day out and live um or see how people are living. And you asked me to represent seniors. Wow. I mean, I I just had, you know, something fixed in my house. He's from Leroy. And wow, did I get an earful. I mean, it's like and I tried to

207explain, you know, this isn't going to affect blah blah. >> And I I'm getting, you know, >> I mean, I'm worried about passing operational based on some of what I'm hearing. I'm worried. >> So, I I think what I'm hearing though, just again, I think you guys have >> a green light. Obviously, there's questions that are going to be asked along the way, but I think we're hearing. >> Is the board comfortable with at our next board meeting a resolution? We don't need the resolution to proceed in all the legal notices yet, but would the board be comfortable with a resolution to uh in support of this? No, I think we have to have the resolution to proceed because without that I'm not going to be okay with our levy committee spending money either. Like

208we have put that on right now if you're ready. >> We can't. We didn't notice it. >> I believe that we have to commit to that. And if I'm not willing >> No, I don't mean right now. >> I if I'm not willing to commit like if we're not willing to commit to that as a board then then no, I wouldn't be comfortable. >> But you would be comfortable with passing a resolution to proceed. >> If if you guys are if that's the way you want to work it, >> that's the first step. Like I believe that you're gonna have to do that because otherwise I don't >> Dan >> like I just >> I will we will start spitting. >> Thank you. >> All right. you >> a lot of good discussion for all

209your work and >> it it's gives me talking points but I think it's >> I well I I think >> the biggest the biggest thing for really and I I understand yes we are we are trying to do what we are hearing is the most is not taxing seniors out of their homes property tax is not stable I think stable is a fair word to use there's unpredictable unpredictable is very much something that comes out of it. This is the new um way to go. I think May is very telling to a lot of it. Um what happens in May is a big is a big issue. I think statewide and not just in this cross-section, but truly statewide is a big is a big thing that's there. And I think there's a lot that

210comes from um how we sell the vision >> and and I there's a lot of people who we've showed just that >> just the rendering of old school new school combination like like that that hybrid model flexing that out. There's a lot of people who we showed that to they paused they wait they this is what it could be and that has peaked some interest. So that is >> operational dollars is never going to change whether like no matter what happens this May operational money is we're still going to have to go for operational and I I don't think that May should change the vision. If this district is going to move forward then you got to move forward hope like >> full full blast or forget it because we've seen what that does too.

211So, >> you guys got and I would I would also like to see um I know we're making a statement does not apply to social security pensions or retirement income. Uh there's also RMD that a lot of uh people talk about. Uh it's required minimum distributions if you had an IRA or whatever. Um you know, all of this is taxable according to the IRS, but not this. >> Correct. It's not earned. It's it's no it's no investment >> unless you have a part-time job to pay your tax. >> If you have a part-time job that would be the only thing >> it's 1% 1%. >> All right. So again I think we have um moving forward. >> Okay. >> All right. So we still have a little bit of business to do >> but we're

212going to excuse some people. >> Oh that's right. You guys have more business. >> Um so we're going to move to executive session. So, be it resolved that the Riverside Local School District Board of Education hereby adjourns to executive session at 7:52 p.m. to discuss personnel matters relating to the employment of public officials in the Riverside Local School District, Board of Education, hereby designates all matters discussed in this executive session as strictly confidential and finds that this designation is warranted because of the status of these matters and the need to preserve confidentiality to properly conduct the business of this board of education. And I get a second. Second, >> Joe. >> Sure. Give me the name. >> Joe. >> I'll take that one. >> Okay. >> All right. Um, do you have a roll, please?

213>> Miss Brewster. >> Hi. >> Mr. Adino. >> Hi. >> Miss Mrs. Grassy. >> Hi, >> Mr. Buyers. >> Hi, >> Mrs. Kreninski. >> I >> um motion carries 50. >> All right. Um, I think we