GASD School Board Study Session/Voting Meeting - 5.4.26

001All right. Good evening everybody. Thank you for coming to our budget hearing. Uh the purpose of this meeting is to conduct the business of the Gettysburg Area School District. Board of directors meetings and committee meetings are open to the public but are not public meetings. All school district residents who wish to make public comment should sign in prior to the start of the meeting and request to speak during citizens participation. School district residents wishing to speak to the board shall do so only during the citizen participation section of the meeting. Public comment is welcome and all issues will be referred to the appropriate board committee or administrator. Comments will be summarized in the official board minutes which will be available by contacting the business office. Please take a moment to silence your cell phones and

002other electronic devices. All of our board members are accounted for this evening. Uh please rise for the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. All right, we are going to kick things off this evening with the with the big topic, the hot topic, if you will, uh, Belinda and the budget hearing presentation. >> All right. As we begin tonight, there's going to be a few slides that you've seen before through our budget discussions, but then it'll be some additional slides near the end that we can dive into a little bit more details. So before you this evening, uh just an updated timeline. Our May 4th this evening is

003the hearing. Uh we have until next meeting to make necessary changes and then the following meeting like following meeting June 1st of course then we'll move towards take action of the final budget. um the one of these slides that you've seen before, but it's a little bit of additions to this and the handout that I've provided to the board this evening will talk a little bit more in detail of this. So really what's the change of the budget? The comprehensive special education plan is really uh what's driving most of this budget um and the increases that are we're seeing which is um expected also nonexpected because um it's a little bit of a more of an advanced situation that we're in. uh we thought we had a little bit more time with the comprehensive plan

004but with the IU's level of services changing we are faced with many of the decisions front and foremost um as we move forward with our budget. So the areas that we wanted to talk about too was um the social workers um there's two of them that we currently have but they are family navigators um during the executive summary that I handed out um has the social worker as $121,64 is what the change is simply because um the IU is providing one of those. So basically we're moving towards having two. So the addition to the budget really is one when we already have two. The the second one from the IU is a more or less a uh a line item change per se, moving it from the IU's level of service to the district's level

005of service. So um the handout that I provided to you this evening goes into a little bit more detail as to um the intent of it. Um, and I don't want to sit here and read all the resources that were provided to you, but the the thought, the concept, um, how we t typically used the, uh, IU services before the family navigators contracts previously held with the district are technically being replaced to be social workers. We've had the posting up. I believe they're in the process of interviews. Um so uh our intent is to move away from contractor positions and have uh technically two social workers in the budget. So that is a change. Um the next one is the supervisor special ed. So the goal has been through the entire comprehensive plan to have

006two special education directors um and to split it out one elementary and one secondary. again your staffing request before you tonight. Um the benefit the benefits that are allotted, the core functions, the legal impact, all provided to you with the help of our HR department and director of student services um provided this information together simply because to give the board a little bit more feedback like what does it mean to hire a secondary supervisor and what will the person do? What is being addressed and what is not being addressed? the the reason for why we're calling for a secondary supervisor. Uh it's one of the critical items uh is in all this process is you know the oversight and the increased need for Huffman homes which is one of the main reasons to have the

007secondary supervisor. So again I won't read through all of the information. We thought this would be an additional benefit to the board members to see what the change is. But overall the administrative salary and benefits um we've factored 168,208 addition to the budget. Another item on the list um that is changed with this budget was the request for the building IT technician. Now this is a classified support position. So it's not a teaching position. This is a classified individual. So the salary benefits are slightly lower. Um but the responsibilities nonetheless are still just as important as the other two. So the intent was to serve as frontline technology support. Now I know one of the questions that came to me is if we haven't had this for a long period of time, we reduce staff

008from one uh a higher number to a lower number. Why that is and why this now? Well, the increased need in technology has far outpaced itself and it is to deal with the cyber uh practices that we now are faced with inputting and placing in the district's uh position. Um that would help us reduce some of the costly thirdparty vendors that we currently do as well as the day-to-day performances. Not only that, we have one staff member who's been doing overtime for a considerable amount of time. So this additional position will reduce that overtime need and um will help fill in wherever needed and necessary. I believe if it's not listed in here, it was like 140ome hours 140 some hours of overtime that one individual is doing simply because all the staff pulled together

009their resources where could um but it was still remained one person's task and responsibility to attend to many of the evening functions which called for uh IT uh services. So there again technology $112 uh,58 and again like you can see the the core functions and the impact that is. Um now uh moving forward uh one of the areas that we have is the as life skills learning support. They're all required as a part of the comprehensive plan and they're all needed due the change of the IU. But what is not factored in here is still a little unknown is because there are five paras in this special education IU's plan that we still have underneath the IU's object code other professional services that will become the districts. So IU's cost typically is a little bit

010more higher than our cost. So for us, it wasn't a need or necessary to move them over to salary and benefits simply because we have them accounted for. Uh it's just a matter of moving an align item once the final budget passes to pay them from the account is appropriated. So the what I'm basically saying is the funds were already there. It is not new. It's a part of the whole comprehensive plan and the IU getting out of the business of providing additional services. So we're assuming we're going to still keep that. One of Mr. sites questions before is why we still have IU's costs associated with it. Well, there still are services that will be needed. Um, but five pairs will move to our budget um at the close of this. So, that's why

011we didn't put a number here only because it's not necessarily new. It's just a transfer of services if I may say that. Um so then moving down are um contractual increases salary and benefits some notes to share. So the all other cost increases that you see contractual increases salary benefits piecers service contracts transportation hardware and software cameras it ranges anywhere from 3% to 6%. And why that is like for example transportation contract related to the index um the contract calls specifically right now for a cost index that cost index which is ever whenever it's developed at the at the state level that is transferred and utilized in our transportation increases to pay our contractors. So it's a it's not an arbitrary number. It is directly tied to something. So, you know, for example, next year

012a 3.12% increase just in the contract for transportation. Not only is the transportation contract increasing, the level of services that we're providing for special education students out of placement has increased by far. So, it would anticipate that there's more services, more increases in terms of transportation. um salaries in general without the additional increases went up 3.95% because that's what the contract calls for. Benefits while it may be shown a little later in the line item information that it's a decrease it's still the decrease is affected simply because of move in and out of benefits. Our health care cost with the um LBT trust, we are a self-funded trust. Our increased cost next year is 6%. Our staff pay a premium or a percentage of that 6%. So while it may not look like we're increasing

0136% on the budget, we do we are faced with an increase. It's just a matter of between the contributions from the staff and changes into the healthcare that it's not showing the true uh 6% increase. uh largest area of benefits is piecers and many years ago I remember when it was like 12%. And the projections came out that hey you're going to be within 35 to 40% within the next 10 years. Our piecers rate for 25 26 currently what we're in is 34% of every salary contract that qualifies for piecers. Now mind you, we have to pay that before we get almost a 48% reimbursement from the state. Um, so that rate 34% this year is going to 33.59% next year. So again, any salaries that qualify for piecers, we must pay on the dollar

01433.5%. Which is attributing to some of the increases in the budget. And then of course um this is our third year. Oh, let me back up for a second just to put a measurement to the number of staff that we have. So, we have um 239 full-time professional staff. We have 24 act 93 administrators uh absent the special education edition. Um it would be 25 if it moves forward. Classified is 150 and our food service operations are 31. But food service is not a function of this budget. It is a separate entity. So therefore it has its own uh revenue expenditures and budget which we will be providing to the board at some point in time but not that is not required for the food service budget to be board adopted. it is a process

015that they have to go through. But just to give a little background of our staffing count, but um this is the third year of ACTI. If you recall um the it was it was committed by the previous board that we would do a 1% increase for the next five years for ACTI's growth. um whether it would be um land and building development, but it was a start to a segue of additional need down the road. 1% for us is about $380,000. So next year's budget will have another $380,000. Now, I will say that the 2% that is along the way, $700 and some thousand dollars in total, while as a line item in the budget, it's not going to be spent as an expenditure. It's going to be assigned as an assignment to use at

016a later point in time when we have the bond or the money required debt infrastructure that's required by Gettysburg as a portion of ACTI. So while we have to budget and show 1% increases every year, this is one of those areas that we show when we budget, but we don't expend until a future point in time. So we don't want to lose those funds on a sun fund balance and it get used up somewhere else. We assign them funds as in a category and assignment. So, every year at year end, we're taking the 1% portion and assigning it to our um assigned fund balance. And if I can, I'll review quickly show you where that is in terms of um the uh items that were ended of June 30th, 25. And then of course, our

017cost in of inflation. It's no surprise every household in every area, the inflation is is going up regardless of what you have and what you do. Ours is not any different. Our operations are just the same as your household operations where we are facing cost and decreases in terms of utilities, general supplies. Um I would envision that we would have some issue getting some product over with the issues in the east. Um but again currently our cost of inflation is ranging dependent on the category 3 to 6%. So since the last >> Excuse me, I'm sorry. Sure. Um, Madam President, would you like to hold questions until the end or would it be more efficient to ask questions with the given slide? >> That's a good question. Are you >> However you want to do

018it. >> Yeah, I think that's probably better. We go slide to slide. That way people have it fresh in their brain. Thanks, Kathleen. >> I'm assuming you have a question. >> Well, I have several, but I'm happy to open this up to other people. I was going to say, why don't we do what we did a number of meetings ago? Uh, you know, pick a question, ask the question, we can open for other people and circle back. Okay. We know that a large u part of the increase in next year's budget is our absorbing special education services. And we've talked about that, but can we talk a little more clearly about what that looks like? not so much with figures but what are the specific services that we are absorbing. Thank you. >> Sure. And

019if I may, I'd ask for the professional on this area and ask for Bren Brandy Glennacres to to speak to this because she is the director of student services and overseas special education. >> Great question and we will get you an answer. Okay. Can you hear me? >> Okay. Um, yeah. So, I can I can give you as much detail. Um, probably maybe too much detail, but um really what it comes down to is you're correct. The IU pulling out and us adding classrooms back in, while we knew that was happening, it's happened a little quicker than we anticipated. So, um, we had initially planned and talked about the fact that like last year would have been nice to have a supervisor of special ed. However, we said an additional one, let's hold off on

020that. Um, we spend a tremendous amount of time already supporting Hoffman Homes, which we are the LEA for, which means we have to attend all of the IEP meetings, all of the RR meetings, which are re-evaluation meetings, um, any any meeting that has to do with a student, even if it's not our student attending there, we are in charge of Hoffman Homes as well. So, that takes up a significant a lot of time. I would say we attend I looked at the numbers it's about 10 per month just for Hoffman alone. So that's in addition to our students and our needs. Um then you add in the IU and we're doing approximately in a year right now 100 meetings for IU students. Now that's students in district and students that are in IU center-based any

021any IU programming that we have. we attend all of those meetings as well. When we bring the classroom back, the biggest difference is going to be um and it's we've already seen it um because some of our classrooms we've already brought back, but with all of them, it's going to mean that we are not only attending IEP meetings and RRS and things like that, we are now supervising those classrooms and it's full. So curriculum, um, we have to make sure we're staying in compliance, which is huge. We don't want fines. Um, we're going to be monitored soon. Uh, probably I think next year or the next is our our cycle. It depends on what they decide. Um, so as we bring those back, it just becomes more difficult with one person. I just can't see

022how we could do all of those things with the amount of students. We're talking an additional 50 students for bringing back the classrooms that we now have to oversee completely because currently the IU provides an instructional um advisor. They they oversee the meat of those things other than us just attending the meetings. So that's really the the biggest reason is just the amount of additional work that it's it's going to entail. >> Thank you. that data understanding that we'll be adding about 50 additional students I think is very useful data to understanding the the new cost for us. So, thank you. >> Yeah, absolutely. >> Brandy, could you also take a minute and uh talking about compliance with uh the autistic class, life skills, emotional support, learning support and so on. We are mandated when

023it comes to the student teacher ratios and and having enough personnel which is you know uh could you just review for the board and the public uh what what are some of those mandates or student teacher ratio requirements? >> Sure. So um specifically for our um autism support classrooms which we all have heard a lot about we have many um as students uh autistic support students who are coming into the district as far as we've had many each year as prek. So then they start as kindergarteners with us. Um it's typically eight students per classroom. Um we are and please know I'm trying to do everything. We just had discussion about how we can even make that number a little bit more flexible. There are some ways to do that with certain AS classrooms by

024maybe changing them a little bit and making them an AS and a life skills classroom combined because then your number changes to 12 if they're not full-time students. So the number though, the lowest number is eight. Um it depends on what level of service the students in the classroom get. So, if you have one student who is a full-time autistic support student in that classroom, you have to go by eight. If you have supplemental, which is your next level, it's a little less time that they're in the special ed classroom and they're out in regular education. Um, you can you can increase the number a little, but not a lot. 12, 15 students is typically still the most that you have in those high level life skills, autistic support, emotional support classrooms. >> Yeah. And

025and Brandy, correct me if I'm wrong, depending upon the degree of need, some of the students require almost one- on-one uh adult to student again depending upon what's in their IEP. >> Yes. And so we have paras in those classroom which this is talking about. Um usually the rule of thumb is you know when you're looking at those classrooms if you have more than six seven students you're looking at a second parah. Um one of the things we've talked about to kind of help offset this is if we have space in our classrooms we are always welcome to offer that space to surrounding districts that would like to pay us to send their student here. Um, and if that would change that to needing a second parah, we would then express that to that district

026and say, "Please know that because you're adding this student, it's going to be additional money you're going to need to to pay us to to bring the student because we're not just going to pay for an extra pair of >> Yeah. Yeah. thing. And then I also know sometimes trying to consolidate or combine classes when you have students that you know have a high degree of need, you're never it's a little there's a lot of uncertainty there regarding the group dynamics once they're if they're all in the same classroom. So it's it's uh uh it's sometimes daybyday and it's pretty complex sometimes. >> Very. >> Yeah. >> Thank you, Brandy. Um, further questions on this first slide. >> Question Dave on Hoffman Homes. Are we reimbursed for non district students? >> We are, but it's

027not an equal to equal cost allocation. And it's not it's not a neutral like we receive minimal amount of reimbursement for Hoffman Homes >> and that's set by >> set by the state and the services far outweigh the reimbursement >> and we're not allowed to adjust the service cost >> unless we look at it and we bill for additional administration services which we do not do at the moment. Um haven't had the opportunity to do that. Um we are in typically talking in negotiations with Huffman Homes. Um recently we just had a meeting with them to understand the level of services that they added to their programs. Uh so there's more yet to come. Lee Dalton's involved um with us. So there's there's more yet to be developed in the terms of Huffman Homes if

028I if if I mentioned anything in different folks. >> Okay. Sorry. >> No. Did I mention anything indifferent from there? >> No. We we've actually been working um Brandy can attest to it for quite a quite some time with uh Sax and Stumply Dalton on the agreement we have with Hoffman Homes because we have not been charging administrative fees for what we're doing there and we're looking to start to do that. So that's a work in progress at the moment. >> Did I respond to your question? Okay. So am I to understand then the district will hold on to that LEA position >> in years to come? >> That's correct. >> Is there Okay. Is there a commitment time on that or >> we we have to it's just our legal obligation because they are

029in our district. >> They're in our footprint. >> Oh, because they're in our district. Okay. >> Um Belinda, I have a question about uh just to clarify what you were saying on that the way that slide is written. So the the costs that are not attributed on there yet because of things that are changing um for the paras when I was hearing you say that we're bringing them over from the IU so then that's becoming a part of our budget but you said that that cost is unknown at present moment. I guess my question is >> it is it is out until we know the exact paras it is currently it is currently a part of the schedule a cost of expenditures for the IU that they provide us. Um so in other words I'll

030show a little bit later there's like a $3.2 million still appropriation to the IU. Some of that is these um pairs. >> Got it. Okay. >> So it's accounted for. or it's just >> it's a matter of moving it from an object of a 300 series to well we'll move it to a 100 series. >> Okay, thank you. >> Any other questions on this slide, Kathleen? >> Yeah, thank you. So, we're looking at adding two social workers. The LIU will pay salary benefits for one and the figure up here is for the second social worker. What is our current expenditure salary and benefits for the family navigators? Um total it's about 120,000 for two. >> All right. Thank you. I thought we had said at an earlier meeting this actually is a cost savings to

031us and it's it's a it's pretty flat, right? >> It typically could. So when we're estimating this, we're estimating the high number of benefits. So dependent upon the selected candidate, it may be a single medical plan. That would be a costbenefit analysis. And I have one more question really for the benefit uh for those of us who were not on the board two years ago when the decision was made to fund ACT for five years. Can you just help us uh understand why uh are we funding a percentage of the budget versus a flat rate each year? Thank you. So this is a very complicated I think response. Um the decision that ACTI has for growth and capacity to move into the community. Um the decision was to bring all the Adams County districts together

032that are representing uh students and ACTI and um develop a debt profile for uh they cannot uh we do not borrow their funds. they can only borrow with the funds and the commitments from the districts who they represent. I'm not sure if Michael you have more a little bit more um on that, but um so there was a study done similar to how we would go through bond borrowing. Um they bring their financial resources in. what would it cost to do a new building to find land do a new building to service all their needs and grow their programs at that particular point in time I think it was a scenario done that it was $10 million and Gaz's portion was a minimum decision to do 1% a year because we could not do that

033all at one time so we started building 1% in this will be the third year for 2627 building that in because of course our our commitment to pay as Mr. Sites and I had a previous conversation about this um if we pursue a $30 million project that's our responsibility and our in ourselves to pay um it would be about $2 million of our own funds for the next 20 to 30 years. So like special ed, we're having a trouble adding in new initiatives or new new concepts unless we properly plan for it. So that's why we started planning 1% a year to start building in because we knew at that time that we started two and a half three years ago that we were not going to need the funds right away and every district

034was in agreement that we would build money in over time for the initiative because of the importance and giving the students the same initiatives and st same opportunities in the county as other local um career technical education centers that are out there. So to piggy back on Kathleen's question, who's the regulator with ACTI? >> They have a JOC, the joint operating committee board, >> right? But who's the regulator to keep cost within reason and not just build to build and to >> who who who regulates that? >> They have a director as well. So it was Mr. Den Road is retiring. So it'll be the new director. They have a superintendent of record which I believe is the superintendent uh from Kanaga Valley. Um those two as well as the JOC has the um has

035the authority over how ACTI operates. >> Okay. So, so let's say our portion is 30 million of the amount that we talked about today and then we figured out that the payment per month was going to be around 177,000 for 30 years >> based on a moderate bond rate. What if an entity such as a district does not have that resource? What happens? >> Well, it's one of the questions they've asked along the way is what can our what can the districts afford? We may be we Gazby Gazdy may be able to afford a little bit more than a Fairfield or a Bermudeian. So each one were asked what is it that you potentially could afford and what would the board accept moving forward because they do not want to look at a $75 million

036project and every one of the schools turn it down because then they're back to square one and they're not moving anywhere then. They're not they're not gaining an advancement and the students are really truly losing out because not having a career in technical school available to them with additional programs and services that they can use within the community. >> That's what I'm I'm saying. Is there a control over the type of product they build and buy? because you can build X one way and have the same functional utility or you can build B and overspend for a product that gives you the same amount of educational value. >> We got to figure out where the regulator is. >> So they have their own board and we have a representative going to the board. >> But

037from understand how the joint agreement is is that we're the ones required to spend it. They're the ones required to design it. >> Correct. Well, how do you keep the designers in check? U >> well, I would assume, and I don't like to assume, but whatever decisions the JOC would make as a collective of what they're purchasing for land or what they're building when they would decide because every school district board has to vote on it. It would be presented to you just like anything else. You could ask questions, you know, why are you doing this? Maybe you should do that whatever that thing. And I'm assuming I don't know if they have to have public hearings here like we do because they're a little different. >> They would have to have public hearings. Each

038board needs to vote. So if one of the boards do not choose choose not to go forward with this, then their project could be on the line from the very beginning. And just so you are aware, even though we're not the largest school district in that collective, we pay the most because apparently Gettysburg has more rich people in it than >> Well, no, we have more students attending to the programs. >> No, they have they have a larger district and there was a study done and Gettysburg has more >> local taxing authority >> then even that's a bigger district which makes no sense. But >> thanks Tim. I mean my thing is what you're talking about today. The question is do we have the resource of the drop off of our debt load right now

039that come 2 3 years from now can afford 177,000 a month. That's the question cuz we're having our own issues right now without it. >> Yeah. And that'll be a decision for a board to make. Yes. >> Okay. Just wanted to ask. >> Yeah. And as a reminder um I think important to remember we do have a representative. Tim is the representative for the JOC for us and Justine is the secondary if he can't attend. But these meetings, their meetings are also open to the public. So if you are looking for more kind of detailed um updates there as they come, um we will receive some here and then you could always attend those meetings as well. Any other questions about this particular slide? Did that answer your question about ACTI, Kathleen? Okay. >> Okay.

040Thank you. We can move on. Okay. All right. So, this was what the change was from earlier on, which you saw the slide. We're just putting some numbers to it this evening. Um, the additional expense change since our last um not our very last meeting, but the meeting before, we had some additional increases that we have to address. One of those is the substitute teacher services. Um, our rate is increasing because the county got together and said that they were changing the rate as well as our level of service, the demand is far outpacing and far increasing what our um actual allocation is per budget. Uh, for example, um, current year we're probably down about 200,000. Um, and this is this is relative to teachers, uh, short-term sbaticals, uh, shortterm maternity leaves, day-to-day substitutes. It's

041just that, and right now, this particular time of year, May, um, it seems like everyone is asking off. And of course, your demand for substitutes are very high in need. That hasn't changed over the years, but we continue to see an increase. And now with the rate changing, we're increasing that. Uh last time I spoke to you, I indicated that we have a property vehicle insurance package increase about 467,000. I have an update to that number and we will be updating the number uh for the next meeting. I actually have a decrease. We are changing uh administration who's providing the assurance. Um we are successful. Our broker was successful uh because I indicated to them I was not happy with the increase for like the fourth year in a row. Uh it was ridiculous. And

042so we are moving from Udica back to Liberty. And Liberty we will probably saving about $120,000 just in insurance change. Just having the same level of coverage we currently have. It's just saving saving dollars there. Um if you many of you may not remember but Liberty kicked us out of the program simply because of the roof um disaster that we had with the storm. Uh we had a high claim. Then we came along and had uh an additional insurance package for the HBAC issue that we had at the high school. So of course they said they would no longer rate our business. So we were forced to go with another company and another company took well advantage of us um not once but three years in a row. So this time they were coming back

043with a nearly a 7% increase and the broker worked very hard, very pleased with the service that we're getting. So we're actually going to see a decrease and that will be representative in the next budget uh presentation because we'll show a change in uh rates. Um another expected change for the next meeting on May 18th is the decrease in title one funding. Um we learned that that the very last meeting. So we will need to address the revenue because um federal program revenue is in a current level receipt. Uh so therefore if the awards that came out and they say they're decreasing and it was confirmed that it is decreasing that amount of money, we'll need to reflect the budget appropriately because I do not want to put additional money in there expecting it to

044get to receive and we don't. So, um it's always better to conservatively uh budget and receive more, but not to overbudget and receive less. That's a disaster waiting to happen. Um also, our um slight decrease in our homestead farmstead state allocation, it came in just as of Friday afternoon. So, I have an update to the slide to show you uh later in the presentation what that truly looks like uh as a reduction to those approved homestead farmstead parcels. And then of course we have a request out to the county give us an update um any assessment data update uh in terms of what will likely hit uh July 1 bills. So that request went out and as soon as we get that information for the county we'll update the next meeting what if any change

045of additional assessment that may come in if there is. Um, and then we'll of course any changes to the capital plan, the general fund budget, and any other reductions as we review the next few slides of the presentation and future decisions of the board to prepare for the final budget. >> Any questions on these items? Thank you, by the way, for the insurance update. >> Kathleen, go ahead. >> All right. Thanks. Uh, I have two questions. I just want to confirm except for any changes to capital plan, general fund budget, and any other reductions, except for that, these figures are all uncontrollable variables. >> Is that fair to say? >> Correct. Yes. Yes. >> If we didn't backfill the reduction in title one funds, and I'm not suggesting that we don't, Title One, it's imperative.

046>> Um, but if we didn't, what would happen in the classrooms? >> Um, Dr. McFarland can speak to that. Uh typically the title one funding covers um six of the nine title one teacher salary and benefits. Um so a reduction would probably likely happen in the level of supplies, professional development um and any other resources that are provided. So, we do not further reduce five to five out of the nine because that's just a direct hit again to the to the district's general fund operations. While we have those salaries budgeted, the fact that we have title money to help cover them is a huge benefit. So, for us, um we would not change the level of service. It's just a matter of which who pays federal or us if it's fair. >> Thank you. >>

047Any additional questions on this slide? >> Just a quick point of clarification. The um decrease from homestead to farmstead that's a revenue decrease. >> It is it is a revenue decrease. Yes. Yes. And the delta for everything else is like an a change in increase. So the substitute teacher is 300,000 additional. >> Correct. >> Okay. Thanks. And >> that that that was actually made. The $300,000 change was already made. >> Okay. >> So what bel what's below the changes expected the um insurance changes expected yet to the decrease rather than increase and the title one is expected yet as well as any assessment data updated. the the $300,000 was already put into the budget. Um, as well as the insurance addition was already put in in your numbers that's been presented to you with the

048proposed increase of 4.2%. So, that was already factored in. So, now it's a matter of fine-tuning the numbers a little bit more. >> So, so Belinda, the state allocations for homestead farmstead, most of those resources from the state come from gambling. Am I right? >> That's correct. Yes. I >> I'm just blown away why that is a decrease with all the advertising that I see for gambling today and and they're putting uh you know gambling uh machines in dormitories and at colleges and uh which is just crazy I think. But uh I'm wondering that some of that money is being funneled somewhere else is I'm afraid but >> it's supposed to have helped senior citizens as well. So I don't know like the year this year for 2526 it was an increase. We couldn't understand

049why the large increase that we were getting well it caught up a little bit. It's a decrease next year uh proposed it's certified by the state. Um and uh I will share the numbers just a little bit. It's not substantial but it's still an increase and it's a decrease and it's still a decrease in what the average parcel will pay or see on their tax bill. Okay. Right. So, moving along. So, here is our summary of revenue expenditures. This slide was the same slide as what was prepared before. Um, I just want to sit here for a little bit just so everyone understands. Now, obviously the proposed budget was 4.2%. So, you see on the the far right hand column uh what is proposed, what is out there in all the documents currently. Um, one

050of the things I like to point out is our ending our beginning fund balance June 30th to 25. This is where our audit finished out. So the 4.7 million $4.7 million that is where we finished the end of the year in June 30th which we always like to see what that number is before we move forward to see what if any if it increased decreased in terms of budgeting because our board historically has used unassigned fund balance to balance the budget in order to keep the minimal increases below um what what we were permitted to do. So here what I want to talk about obviously the 1% column still hasn't changed. 3.5% is the column that I made the recommendation on. I think we can get to 3.5% but not without changes to the budget,

051not without reductions in expenditures. Do we need 4.2%. Probably not. But what I want to say is the ending fund balance is 4.7 million. If we stick with the same expenditures, not reducing them, we need to have a little over $5 million, four six% on a sun fund balance to be what the policy calls for. That needs to be maintained. Now, in order to maintain that at a 4.2% 2% increase, we need to add $3161, sorry, $36 $31,61 to the unassigned fund balance. So, while 4.27 4.2 makes sense, that's not necessarily addressing the expenditures to try to bring it down as probably low as possible. So, that's why I personally made the recommendation 3.5 simply because I think that's more doable. We still need to add money to that unassessed fund balance because it's 4.7

052million and we're still calling for 5 million. The only way the unassessed fund balance is going to change is if the expenditure line, this right here, drops. So that's why the decisions that need to come in terms of the capital projects and capital plan if we're reducing a million dollars once that million dollars if that's what it is and we're using some of the assigned funds that number changes to 6%. So whatever expenditures are whatever the line of expenditures come out to be 6% of that number needs to be maintained according to policy. So, um I think personally we can get to 3.5. I definitely can we cannot do 1%. It's that's just um not feasible because I don't know at this point where I could come up with an additional million dollars to try

053to just minimize 1%. question. And just so everybody here knows, the other thing that she hasn't said, that unassigned fund balance, she uses that money to pay all the bills. Until we get our money from the Fed and the state without that 6%, she can't pay the bills. We're in trouble. >> Correct. So tax bills come in, we send the tax bills out July 1st. as they come in uh in the magnitude that they come in, we are setting those funds out for as far as we can based upon our our payroll dates, our payable bill dates and so forth. So until that money starts rolling in, this is the only option that I have to pay the bills from July to August until money starts truly coming in to help funding um the the

054operations because state money doesn't come in till probably about September, October, November, and December time frame. So it's still on the local hands to help fund the operations over summer months. Thank you for bringing that up. So, any other questions on this slide? Just I wanted to spend a little more time on it other than uh what I did the previous meeting. Okay. So, as I mentioned before, um here is the um piecers portion that we want to, you know, take a portion of this to help fund that additional percent increase in piecers. And then here is the capital improvements to be utilized in some fashion or another based upon the decisions what we do for the capital reserve. All other items there um they have been assigned for a specific purpose. This assignment here

055the 2526 budgetary reserve I'd like to point out that that is going to go away. That is not going to be available for future resources. That's $1.6 6 million that we said of unassigned fund balance we were going to set aside and use for this year's budget. Um, as of uh March analysis um on the uh forecast five financial report uh that you should see coming out of the next meeting, we are in a deficit of about 1.1 million so far projected. Uh so I envision that those funds go away and again why I've been promoting like there's no fund balance usage to move forward with uh to help close the gap on the budget. So um that's therefore that's why the the um recommendations have been made in terms of capital projects and so

056forth. Any questions on this slide? >> I just have a quick question about the budgetary reserve. So that's being utilized for this year's budget, but it says it was established in 2017 2018. So is that something that has been utilized to do so for other budgets beforehand? >> Yes. Yeah. So since 2017, we have been setting funds aside available fund balance to help address the deficit the shortfall >> in theory. A practice that we would do if we had the ability to do so. >> If we had the ability to do it, we had excess fund balance. Um the and Mr. sites asked me a little earlier today like why why would we consider doing this? Um boards have changed not just previous board but the boards previous and past. At one point in time

057it was grand to have be very conservative and your revenue come in more than what you budgeted because the additional revenue goes right to fund balance. also to underspend what you plan to spend because the unspent portion goes into the fund balance. So you were able to continue doing the budgetary reserve year after year. A few boards pass said we wanted to get we want you closer to what's truly happening. Don't be conservative. Start start doing your budget on terms of what is known. Take a little bit more risk. So we've been doing that. it's caught up to us and now we don't have no fund balance appropriation to use to help fund the gap. That's why the importance of revenue equals expenditures moving forward. >> Thanks. >> Just another point of clarification real quick.

058I think you said 1.1 billion for over budget in 2526. >> Yes. >> And it's 1.6 million for the current budgetary reserve. Are we going to hold 500,000? >> I'm hoping. I don't not sure yet. Um that 1.1 million is just the cost of education, special education, outplacement services, and the increased students that came in. I'll have a number to that in just a little bit. Okay. Uh this slide is just um a number summary of what I shared previously just looking at revenue of itself. So this isn't any different from what was shared before. Again, it's broken down between local, state, and federal. And then showing the total revenues and the commitments there of that we had um estimated. Any questions on this slide? I'll keep moving along unless someone says, "Hey, I have

059a question." >> I do have a quick question. How how concerning is it that we keep using piecers money? >> This is one of the reasons we set this money up. Okay. >> Um, so years ago, I'm not quite sure what the year was, we had um a good amount of fund balance. So, the commitment to to do so was reserving that um number. And so, it really is truly the difference in the rate. So, going from 34% to 35.49% is like less than a half a percent. So, um there's a calculation um Mr. form does on salaries using the percent difference and that's what's pulled out of piecers. >> Okay. >> So, it's supposed to be over a period of time. Eventually, yes, we'll use it. Um but the goal hopefully is to get

060us through the hump of the increases continuing upwards to 38 40% and then hopefully it flat lines out that we'll have enough funds set aside within the budgeting process. That way we don't necessarily need to draw on that. >> Okay. Okay. >> Mhm. I just have a quick question and I was just trying to pers because I'm trying to remember back six years ago. We just So am I correct in saying that six years ago in my first year on the board our budget was like 72 million? >> I I can't see this writing. I have a slide here. Can I respond to that? >> That's fine. I just wanted to see, you know, that we've gone up, you know, 10 million or so in the past six years, which is quite extraordinary for reasons,

061but as a general, we're looking at this, but I'm looking at in my head, I'm going, that's 10 million in six years. That's a lot of money. >> It So, let me look here a second. >> Um 1718. What when which year did you come on the board, Mr. Sigman? >> 18/19. >> Yeah. Uh we were at um about a $60 million budget. >> 60 million. >> 20 million. Better yet 60. >> Uh if you're referring to the budget, I'm looking at the actuals. Okay. >> Okay. >> Yeah. >> It's still almost 20 million in six years. Quite an increase. >> And and what's the student population between that year and this year? Has it increased or decreased? about >> we we have been probably maintaining the same amount of population. >> Okay. >> Yeah.

062I will say and one of these things is attributing to this you know we had an influx of $8 million of esser money and while we tried to it not add additional things to the budget very highly almost close to impossible to do because once you have those resources in the district you're going to continue those resources and find a way. So, you know, you can't and I've said this before with Esser money. This was great. I mean, CO money coming in was wonderful. We're we're all meeting to determine how can we best utilize this money because we know it's going to go away and we know we're going to have the cliff. We are the cliff because it was an influx of money and now we we don't want to remove the services. So,

063of course, there was a natural $8 million increase to the general fund operations. Um it it's I'm just going to not assume that everybody knows what ESS stands for uh in the past, but that was CO COVID relief funds for elementary and secondary education. Um I do have just a very quick clarifying question based off of what Donna asked about um piecers. So when I'm looking at that slide um committed fund, I'm just trying to make sure I remember committed funds. Um, we're not, that almost made it sound like we're taking money away from PE, we're not taking money away from piecers. We're taking money that is allocated to go towards offsetting the costs of retirement. Correct. >> So, so piecers committed funds I think let me pull up a So, so PERS committed um

064I don't have it on this slide. I'm sorry. >> That's okay. Um the committed is restricted funds. So the board restricted those and it was like $3.2 million. Oh, I'm sorry. Yes, it is there. $3 million at the end of June of 25. And so when the pieers rate increases, a portion of that rate is factored in like there's a calculation that's done. And so we're not using the whole $3 million because Pers didn't go up $3 million. We're using a portion of that 3 million. So next year, this time it'll be $3 million less the 272590, >> right? >> So we'll decrease it over time >> and similar to I mean it's a different allocation, a committed fund rather than a signed fund, but similar to this idea of like the budgetary reserve like

065once it's once it's done it's done, but it was set up back in 2003 2004 to help offset some of those increases in cost. So, it is still going towards piecers. I guess the concern could be that when that goes away, we don't have it to use anymore, right? Um, but definitely just wanted to make sure I was right about that. Okay, great. Thank you. >> Here's our expenditure summary. Regardless of whatever tax revenue that we obtain, uh, the expenditures right now are sitting at 83,4250. And um likewise uh we need to bring in the 301 um $31,61. Um you can see like the actuals uh the actual expenditure summary. So we utilize fund balance in terms of $229,28. Not a large number uh but we did we expended more than what our revenue was

066for the 2425 year. Um we're hoping the 2526 year we have 1.6 million set aside. We're hoping it stays like 1.1 million as projected being over. Uh that way it would cover us. But uh there's no guarantee simply because like I said um one controllable area and what I've said before is special education and it's no one's fault. It's we're just doing a great job servicing these students and so the word is out. Come to Gettsburg. literally. So again, you know what when I like the terms that talk about budget, I like the terms that talk about this is what's called object analysis. So 100 series is all salary and wages. 200 is employee benefits. 300 is professional services. This is all I use level services. 400 is other purchase of property service. So this

067is rental and some other things. 500 other purchase of service includes the majority of it includes transportation and charter schools period. Um other small areas there but the majority of this category are those two things. Um charter schools are not something that we're able to control either. So there is a lot of uncontrollable cost increases in this budget. uh supplies. And while it says, excuse me, whoops. While it says supplies here, please don't be fooled that that's all just classroom supplies because it is not. Supplies range from um Oh, also our property liability insurance is in that 500 category as well. Um, supplies range from general supplies, classroom, general needs in terms of custodial supplies and things of that nature. We have natural gas in here because it's considered a supply. Electricity, other fuel, um

068oil and so forth, gasoline, diesel fuel, we have um meals and refreshments. We have the published materials, both um textbooks as well as consumables. Um we have tech hardware, software supplies, and just software and support in that 600 category. So, it's just not, hey, let's just cut $4 million of supplies. Um it's it's not that easy. Um and I'll show you what board control you have later on in terms of supplies. So I just wanted to point out like you know these these are relatively uh summarized objects. 800 covers um interest on our bonds um and any other dues and fees that are developed. And then of course 900 is principal and interest and our cap reserve transfer along with our um our acti. So uh those where those items sit within that budget. >>

069All right. Well, thank you. I do have a question uh related to that side and and to Tim's point about increases, you know, each year. So, we're looking at about a $4 million increase, a little bit over from our current year budget. And did you say that you'll have a later slide to show us within that previous slide where the controllable variables are? >> All right. Thank you. >> Yeah. Not a very big portion, but I'll show you. >> All right. So, our budget summary of revenue and itself just a visual presentation of what was been provided before. So our local revenue is 8.3% change which is um a 4.2 4.2% increase. It's based upon the full max um as we presented with our proposed finals. So a 4.2% comes off of course the revenue

070will change in the local sources. The state itself is 3.16% change and the federal of course considerable change from prior. However, um this doesn't represent the change that's needed to bring down the title one dollars. So, I would envision that even though it says 22.8% from prior year, it's going to come down um and it's going to be a little bit more in line um even with that 66 million because it's not a large portion of federal revenue that's that's designated. Questions here? Here's the detail on that. As you can see on the detail, um here is the real estate taxes. Largest area of local revenue is real estate taxes and earned income. The two of the largest areas that we work with um in terms of local revenue. Um local revenue, earned income tax

071subject to wages earned uh within our footprint. So, of course, um while we try to take a look at that, that's also one of those uh areas that could increase likelihood of it increasing. Um it could very well increase if the proposed um uh limit on um income increases from what $7 an hour to $12 an hour to $15 an hour. So likely it could come come as an increase down. Not next year of course because that needs legislative approval to change the minimum wage. Uh but again I mean there's some you options down the road that could affect that change. Um state money of course um sorry very little change in state money and that's pretty much representative of what we're currently getting. Um, this budget does not estimate what the governor is proposing

072because the proposal for Gettysburg is not very not very large of an increase. So, what you see here is really the change um from prior year to current year in terms of the starting number that the governor is using in terms of his budget. So if he says he's providing X number, we compare that number as a starting number and see where our budget lies and we at least budget that. But we do not address the increases that the governor proposes simply because it's truly a pie in the sky. Um until that budget gets passed will we know what our true allocations are, which is many times after our budget needs to be approved. And here's just a representation of what the um expenditures look like. If I can just interject with a quick question

073for clarification, the um federal just on the revenue side before we we lose it >> is uh >> that's accounting for the anticipated 68,000 reduction in title one. Not yet. So we'll potentially be running that >> yes >> down. Yep. Our expenditure summary um salaries and benefits overall uh between the two t categories 2.75% increase from prior year. The purchase of services a 9.2% increases of prior year. And then of course salaries and other equipment and so forth it's a 14.48%. This is a a a kind of roll up of many objects into this category. So you can see um the difference there. And the detail to this slide is here. Um, as you can see where I've received those where those numbers came from, the 2.75% the um 9.2% and then as well as

074the 14% listed there. Um, so it the previous slide is just a visual of the higher level of detail on this slide. Questions? All right. So, homestead mileage, homestead farmstead numbers are in. So draft final tax millage impact whether it's 1% 2% three and a half percent or 4%. On the average assessed homes average assessed parcel of $280,000 if I was looking at the 3.5% increase. It equates to new money of $11266. Divide that by 12. It's $9.38 per month on a 3 and a half% increase. Um, keep in mind that the Homestead Farmstead number will apply to that and bring that number true number down a little bit. Um, the resolution on Homestead Farmstead. This had the number of 1,938,97167 son cents certified by the state of gambling money. We had 7,28 eligible homestead

075parcels and 160 eligible farmstead exclusion which brought the deduction to the taxpayer of $266.16 based upon 11.4815 mills. That resolution is on our website. It was approved last year. So that is just a reiteration of the numbers that is available. Um why I'm mentioning it is because the new numbers they came in the certification came in to 1,937800,44 which is a reduction. We also increased the eligible parcels from to 7,422 uh homestead parcels and 159 farmstead exclusions. So the exclusion number the sorry excuse me the certification number came down the parcel number that's been approved went up by 214 parcels. So based upon a 4.2% 2% increase. Of course, now that's not final because we haven't set the rate yet, but based upon that, it would be $258.14 added to the parcel uh as a

076reduction of their home for their homestead farmstead on their tax bills as they went out. So again, that number will likely change if we move down to three and a half. We did not factor that. We just did the 4.2 just to see. Um but it did go down. The certification came down, partial numbers went up for approval. So therefore, the appropriation went down compared to previous year. >> I have a question um not pertaining to this but the slide before uh because it was bothering me. You said on the up there on the uh 2027 budget uh salaries for employees is up 5.66. 66%. >> Mhm. >> So my question is is the teachers contract is only 3 whatever percent which is the majority of the money including uh act one employees because they

077usually get the same similar. Um so I'm just trying to figure out how it gets to 5.66 when it should be like no more than four as well. So the current special education funding plan, we added four additional salaries in this current budget for that we did not plan for that was bringing back some services. So there was four new additions of the staff that we are it's not new for next year. We added it this current year. Um so therefore we have to maintain that right. There's there's four positions. Four positions half a million dollars. So in excuse me so the positions we're getting back or we're taking back though but we are not paying the IU the money we were paying them before. Correct. >> Yeah. >> You're going to pay them the

078same amount of money and then take on more kids. >> Correct. >> Um typically the district's the district cost is a little bit more uh cost feasible than the IU in terms of benefits. not necessarily salary. So salary can range. Um but the benefits are usually like the IU has their own level of benefits. They're within the uh LBT trust. They offer different benefit level than what we offer um based upon the contract. But between adding the four staff members um adding um one of the social workers um and just in general like the classified staff um changes uh fillment of positions. Yes, it's 5.66%. I I was just, you know, I mean, I thought if we were taking on those positions, it'd be less money we're giving them. And I'm not saying it'd be

079a a break even scenario, but I didn't didn't know how much more that would be than we're not paying IU. >> Yeah, the IU budget is a different line item, Mr. Sigman. Like IU budget is the 300 category and the salaries are the 100 category. >> I get that. But there is there a deduction to 300 category to offset that? >> It is. It is a little later on. Not as large of a deduction, but it is. >> But at some point in time, can you show us the difference so we know how much >> more we're paying over the difference of what we were paying before, just so we're clear? >> Yeah. >> Thank you. >> Mhm. >> Okay. I'll make that note for the next meeting. Definitely. Um, any questions on the tax

080millage impact chart? >> I do have a question. So, we're focused on that $280,319 market and assessed value. Why is that the figure that we look at? >> That's the average um parcel in in Gettsburg area's footprint. >> Yep. >> Okay, moving on. Um, so you've seen this slide before. This was the act 1% increase. Um what I'm just sh just to reiterate here act one is permiss permissible by um the department the state to say you're permitted to raise taxes up to that level every year and this is a representation of what gettsburg had risen had had address taxes. Now you can see that um the history out of the uh past four years we raised to 1% which this is all ACTI right here. So in essence we didn't raise any taxes to

081general operations that went strictly to ACTI. We had no tax increase here and it was 4.8% and here we had a 1.38% um that year. Now again this is subject to change 4.2 but this is just showing you as a representation act one index is 4.2 and our proposed final is 4 4.2 but that's not our final. Um so like I said you saw that slide before along with this one. This is representative of what Gettysburg is compared to ACTI um in act one. So you can see where ACTI was like as I mentioned before is increasing here those smaller uh green color block um and you can see our increases was attributed attributed to ACTI this two years. Next slide is um the act is several of them here. So, it's the act one,

082which is the larger larger slide. Here was the superintendent's recommendation of 1% every uh year. And then, of course, the blue was Gettysburg's uh increase thereof. Um down here's a note as to how many years we raised taxes um and those we did not. uh as well as accumulation of revenue considering not going to the act one index. Um again this last fiscal year will be determined what we have to do. So you saw those first three slides uh at the previous presentation. This next slide I think the gentleman I have to think what his name I'm sorry >> Kenneth. >> Yes. >> Yeah. He had requested to see well why couldn't you consider raising taxes to the cola. So we did another slide in comparison what the cola is. The cola is the orange.

083As you can see the cola this year was raised 8% and there was we're capped at the act one index down at 4%. Um there was there was no way that we could raise taxes to cola. We were having a hard time getting out of the gate at 1%. So you can see our tax increase is relatively small. Uh in terms of the cola, the cola did very well a few of these years where our tax revenue did not uh increase. And like the other three slides showing you the cumulative loss if we were permitted to go with COLA uh the social security increase, it would have been a cumulative $159 million that we would have added to our budget. But again, we are capped at the index and we weren't necessarily raising to the

084index. So, these are just numbers to share with you as to where the items fall and what our own limitations are, whether it's district imposed or whether it's state imposed. >> Just to be clear, Belinda, from the slide before um that this I don't I mean, maybe it was on there, but I didn't remember it. The superintendent's um recommendation is on there that that has been true since 2018 that there was a recommendation to do a 1%. Yes. To gradually lay it out and make sure that we were spreading it out. Yes. >> Okay. Thank you for that clarification. >> Sorry, just to follow on that though for the 2627 the superintendent is at 4.2. >> Well, the 4 point that's not necessarily the superintendent's recommendation. I don't believe >> uh that it's not necessarily

085his recommendation. The 4.2 really is preparing a budget for you on display to say here's the maximum amount. We're not going over. That was the proposed adoption. Um it's required to have the budget out there for 30 days and to provide at the hearing opportunity hearing from the public and then make a further determination that tax rate will likely come down in the course of doing many additional things to the budget >> question. So your recommendation is >> my recommendation along with Belinda is 3.5. >> Okay. So I have a question for you Belinda. When do we get to the reflection point now that we no longer have unrestricted fund balance to pull from? Because at some point in time, you're going to have a burn of cash where you're going to have it cross

086where you're not going to have enough cash to pay bills. >> Yeah. Now, >> when's that happen? >> The five-year budget projection is coming out at the next meeting. >> Okay. >> Now, again, mind you, it is a projection. It's not a I'll take my crystal ball and rub it. It's not a true number, but it will represent and show you where the revenue and expenditures increases occur based upon the history. Um, and then project that out for the next 5 years so you can kind of see uh lay a road map basically of what the board wants to consider. >> But there's going to be a time when those months that you need the cash, like Tim says, you're not going to have it. >> Yes, that's what's called cash on hand. And I

087can provide an update to that slide at the next meeting. >> Cuz is it then going to be required that we need to put money away for an unrestricted fund balance because as the expenses go up, our amount of liquidity has to go up. >> Yeah. The only way that you can um change your unassigned fund balance is cut expenditures or increase revenue. Right. It's the only way. And whether that revenue is state money or local money, either one, your revenue has to increase to match your expenditures. >> But the reflection point sometimes going to dictate that you're going to have to increase the fund balance regardless. >> Correct. >> In order to carry yourself. >> Correct. >> Okay. >> Yes. Yes. All right. Um Okay. So, I believe Mr. Sites was requiring and this

088is very small. I apologize. I was trying to get it on the one slide, but I will review these numbers. Um so this is a summary percent change and the average. So this is based upon actual cost. Uh all this information can be attained off the website um by looking at each and every year on our annual uh audit reports. Um basically um the um I'm just going to go to the the average here. So all the actual revenues over a period of time you can see them individually compared to prior year or what it is but the ultimate average of all of those years combined is 3.45%. Likewise let me finish my oops um there we go. All right. So likewise, oh sorry, our expenditures are listed there individually. Actual expenditures, this is not

089budget. Actual expenditures and the average is 3.41%. So in summary, if you're just looking at this average, we didn't do too bad, right? So we had 3.45 of revenue, slightly above what our actuals were, 3.41%. But I'm throwing caution to the wind because this is based upon actuals. We didn't hit 2526 budget. Nor are we looking at 2526 budget, excuse me, 2627 budget with the whole world of special education changing. This is not going to maintain itself by any means. Um so in this summary, while we may have been budgeting one number, our actual reflections we did well. So, you know, in hindsight, if you someone was looking at this would think, okay, well, you didn't raise taxes and you still did well. Well, that's true. In essence, it's true, but you're not funding future

090needs by this, and you're not you're relying on fund balance year after year, and you're also punting the bill down the road that you out here, we are, we're out of fund balance to to utilize to balance the budget. So, while we did good those years, we're in for a storm ride for the ne current year and next year in terms of special education. So, um I don't mean to be like, you know, this is great information, but I'm just throwing caution to the wind like this is this will not be the same um this low of a percent. I will see the expenditures rise above revenue unless something is addressed. Cutting expenditures, increasing revenue, one of the two things that happen. Likewise, um for um as we look to the unassigned fund balance, you

091know, it was the biggest conversation over the past few years where unassigned fund balance was increasing and so board said, "Hey, do a better job of projecting your budgets." And we did because we historically the district had always conservatively budgeted. Um that wasn't mean to say that we were underscoring revenue or or overexpensing expenditures. It means that we are conservatively approaching the budget whereas now we are taking a little bit more risk and basically it's catching up simply because the true cost now is outweighing what those um those estimates were. So down below of course is our unassigned fund balance over that same period of time based upon actuals. So you'll see in 1819 here compared so we were down 3.94%. We utilize 3.94% of fund balance. Next year over we are down 11.41%. Next

092year 17.42%. another 24.22% use. 22 23 we had an influx of money 44.9% an influx. So we started doing some assignments right. So the influx came in, started doing assignments and then of course you know as we continued on 23 24 we're down another 12.45%. 24 25 we're down another 26.34%. So historically we are using fund balance. One year we had an influx. Thank goodness for that because we would have had a worse condition on an average. So in the end over a decline over those seven years we had on an average use of fund balance 7.4 44% nearly 8% of fund balance. And so now that the use is there and gone, it's not available for appropriation. So we were doing what we were asked and so now here we are, right, wrong or

093indifferent. So we were utilizing fund balance to help balance our budget um to be um fiscally responsible and to not raise taxes. Okay, any questions on this slide? Just to clarify, when you say we were down, that means that we used, for instance, in 2425, we used 26.34% of it, but we never went below that 6%. >> Correct. >> Bond threshold. That's our policies. >> Mhm. >> But but we did have a change of policy from 8 to six. >> Yes. >> When we had that influx of money. >> Thank you. So yes, the influx of money we were carrying, our budgeting practice typically was 8% of fund balance. So we were at the higher end 68% and so we were at the 8% level. Uh the one year there was increased then it was

094a commitment to say okay start doing um better in terms of budgeting and so therefore the utilization of fund balance dropped. >> But your revenue equalization actually is coming only because you use the unrestricted fund balance. So it's not really revenue correct it's just taking from an unrestricted fund. >> Correct. So if you took that out of your revenue equations at top, it would be much different. >> It would be. Yes. >> It'd be drastic. >> Yes. >> Okay. >> Yes. >> Good questions. >> Um next slide. Um so here is what that looks like in terms of graph. Um we had tax increases um on 1819. So you can see we have revenue increase over expenditures. We had a tax increase in 1920. So we're right at the line um right at the line

095of expenditures and tax increase. right at the line. Am I on the right year? Yeah. Right at the line again. Tax increase. So 22 23 we're running still to the state of the line. Um we had no tax increases in 20 2021. You can see expenditures exceeded our revenue even though we plan no tax increases. This is based upon actual. And then of course for 2324 we're here um right here. So yes, we have received additional revenue, assigned some funds, our expenses came in a little less. Um and then of course we're here for um 2425. We're running right at the line. So if we add the two budget years, um it would represent something different to where they're crossing moving forward. >> Right at the line means a balanced budget. Is that how you're

096defining that? that we did pretty good. We were We were better than We performed better than expected and we did we didn't do too bad. >> But that was using unrestricted funds. >> It was It was >> So So if you did a line without the unrestricted funds on here, it would give you a true picture of actual revenue. >> Sure. Absolutely. >> That would be a different chart. >> Yes, it would be. >> It would not be a good chart. >> No, you're true. And belinda, to Dave's point, unrestricted funds is one-time money. It's not perpetual revenue coming in. So, it's really is stretching the definition of revenue. >> It is. Yes. All right. So, now we move into our bond fund money. Um, one of the requests that we had is, uh, can

097we use bond fund money to pay for normal expenditures? Yes. Um, bond fund money is to be used for other capital-like projects. So, we started the year with our audit ended at $7.3 million. Um this is combined for bonds of 2020 and 2022 bonds balances as of March. Uh this is the actual cash that we have remaining of bond 2020. And here is the actual cash for the 22 bond. So um both of them um we like both bonds equals $3.9 million. So we started with 7.3 million to date we spent $3.4 million. What did we spend those funds on? Capital-like projects and or other items that were part of the capital plan. For example, FIP means um facility improvement projects. Uh requiring FIP projects require us to borrow money typically because they're are largecale

098projects. We don't have those funds set up set aside to address largecale projects. So that's why we would have borrowed the 20 and the 22 bond restricted funds which that's what this is restricted can only be used for capital like and or bond um projects. It cannot be brought back to the general fund. It cannot be used for general operations. It is for a specific purpose and they're restricted. So restricted in the terms of well if we did spend our money down on these FIP projects for Lincoln and James Getty for the HVAC projects we have funds remaining obviously you see right now we have this this funds remaining we've been in discussions so far with um looking at the uh HVAC and planning replacement for the admin building as well as the here it

099is the team room the team room and planning so those two pro bigger projects are are are still in the works. So, um other than that, our regular capital projects um we we addressed the sewer pump, we addressed the greenhouse renovation project at the high school, we addressed the window replacement at Franklin Township, we plan, you know, started doing the planning for the team room as well as the planning for the administration room. So, that's architectural and engineer cost associated with those. We also did the fence replacement at Lincoln. um the baseball path as well as the video scoreboard and the portable play play clocks. So we these were expenditants as well as our first arbitrage payment to the IRS all came out of the bond fund money. Now the goal of the bond fund

100money like bonds borrowings first of all let me say any bond borrowing that you have has a threeyear spend down limit period. after you spend that after you're down three years and you have not spended those money, you've got an arbitrage payment to pay back to the IRS. What that means is when we borrow the funds, we got a great rate, absolutely phenomenal rates for the first one, like a 1.5% interest on the 2020 bond. We would never refinance that, nor would we turn that back in and, you know, add more money to it because you cannot like the interest rates are higher so we're earning money. Um, the goal when you get a bond is to spend it down within three years. Your goal is not to sit on money and to earn interest

101because you will have to pay the piper back to the IRS because that's not what the intent was for. That's why they have a three-year spend down limit. Um, our bond barring's um commitment was extended due to project delays and then arbit you know obviously arbitrage was required. Reasons for the funds remaining in the 2020 bonds are due to the scope. So we did the scope in the 2020 bond which was the HVAC at the high school I believe. Um we didn't do the wait room. We didn't do Terzo flooring and the bids came in so much lower than we estimated. So we actually had money left over from that bond. As you can see we're we're still trying to spend it down. Um so those items um were not you know obviously changed in

102the term of the 20 bond which remains um unspent funds. So then of course two years later we are then borrowing funds because we knew we were going to be James Getty and Lincoln HVAC projects. the time that we went to do these projects, I think it was going to be um a base bid um a bid typical format. Um however, those funds that was also delayed uh simply because one the admin building was in on that project. It was removed from the project. Um it was pulled for whatever reason as well as the delay was due to the to the request to explore ESCO for the district. So we explored ESCO via means of omni partners um and it was just in general board's decision to delay. So that's why we still have remaining

103funds in the 2022 bonds and talking to council um for these bonds. Um you need to spend these down to have an dimmin dimmin yeah dimminimous amount. Deminous means less than $225,000. So, our goal of course as a district and why you see these items being done, they're being done out of this 2020 bond because our first and foremost goal is to get the 2020 bonds to zero. Now, getting that to zero is a great thing, wonderful thing, but we still have arbitrage payment. We can make that arbitrage payment from the 2022 bonds because it's not going to be spent. So, in essence, right, to date, we have um $3.9 million to use towards the team room and the admin HVAC project, which we would spend these funds down first and foremost. We do not

104have another project to that magnitude out for a couple more years that would further delay this and continue the arbitrage payments. Just, you know, putting it out there. What does your arbitrage cost? >> Um, it's it's a calculation that MTech does for us and it's based upon what the remaining funds are at a specific point in time. >> Is it a percentage? >> I believe so. I have to pull the documents, Mr. Sites, and review and provide you an update as to what those numbers are. >> The question is if you're earning if you're making earnings off of that 3.9 million >> at what's your general rate? Fives. >> Right now, it's about five and a quarter. Okay. >> Mhm. >> If your arbitrage is less, >> it's the difference between what we borrowed at

105and what the current rate is is where >> So, it's going to be about five. >> Mhm. Yeah. In terms of this, yes. But let me pull the documents and give you an update to that. >> The reason I'm bringing that up is is that although you're spending arbitrage, you're actually breaking even if your earning power is still equal. >> Our earning power is still equal. And it's not a bad thing to have arbitrage by any means. It's we we just can't sit on the additional income uh interest income. We just we can't do that. That's not that's not the intent of borrowing funds. We're not to borrow funds and sit on the money. Um and so therefore, like we have set funds aside within these two borrowings to pay back the arbitrage payment. So,

106while I can say we need to spend those down and we have two projects, a portion of that money is going to need to go to back to arbitrage because we're not going to have it down anytime soon. Three years is soon to be well three years on 2022 >> is like this fall >> but but your earnings where's your earnings go to in a general unrestricted fund balance or is that go back into the capital? >> It goes back into this plan. Yes. >> Okay. So, in other words, then it's pretty much staying equalized. >> Yes. Yes. So, when we pay it, we pay it from here. until that inverts. >> It's not a bad thing. >> It's not It's not bad. It's just It's just sitting there. Still a requirement that we have

107to do. Okay. >> So, that's the bond fund money. >> Just another quick point of clarification there. if there are additional I mean so within the five-year capital improvement plan say you look at LED lighting or a couple of these other things that maybe you could bundle into saying energy efficiency improvements or you know something that could potentially make it over a threshold for bond funding. Is is that possible? Is that accurate? Are there constraints on taking that type of approach to the five-year capital improvement plan? Typically, let me let me rephrase this just a little bit. If you had the money in your capital plan to do smaller projects, a million, two million less, you're better by far doing that and using those funds. But if you're anything over 2 million or more, you

108should be borrowing money um outright because you know like the goal to keep it within the capital plan the projects underneath a certain dollar value is you're not going back to taxpayers and andor increasing um millage just to fund your borrowing. Now I will say there's not going to be an increase outside of ACTI to the taxpayers. Why is because when we borrow our money we do what's called wraparound debt. So, as our schedule goes across, we're going to have some debt drop off relatively in the next two, three years. So, that money that drops off should be designated back to use to help borrow for the next project. That's what one of the reasons why you see the $7 million in the general fund budget. That is committed dollars that was intent to use

109to borrow the next fund money. It's relatively important when you're borrowing money. The bonding agents and the bond borrowers want to make sure that you're fiscally set and look at your rating to determine if they will give you the funds to borrow. So, the fact that spending down the unassigned fund balance is one factor. So, we always want to be cognizant of that. But if you're utilizing your bonds like your drop off money on your bonds and you're not setting that aside for the future project, you're hurting yourself more. you're hurting yourself in the longer run because it's going to take twice as much longer and harder to try to make those funds up to borrow for when you do need the project. So, it's really a planning mechanism that we already have in place.

110Um, we know when our debts dropping off, we would we would never be able to take that money debt dropped off and provide it back to the general fund because once it's there, it's there. You can't bring it back to use for general operations. Um what you do have control over is how much money we send to the capital plan and that's for our discussions like here. >> Okay. So our capital plan here itself this is the first of the five years. Uh you've seen this before. This was what was presented to the board. It had all the items listed on here and funding this first year of the capital plan is $660,822. The five-year average of these plans when they're developed, five-year average is something we try to be at at a million close

111to because while these expenses for next year are obviously below a million, we're trying to build in the other projects that are coming down the pike. All right. So, last budgetary meeting that we had, uh, the capital improvement plan. So, what does this all mean? So, we have presently our budget, our general fund budget has a million dollars set aside to fund the five-year average capital plan. As I, as I said, right now, it's only sitting that we need $660,000. So, we have some options with us, right? So we could say, okay, we want to cut the whole million dollars, not use anything. Doing that, I would recommend any excess fund balance go over to capital reserve at the end of the year. That's an option. Or we could say come along and say cut

112the million dollars to just $660,000. That's an option. So we'd be reducing the budget $400 some thousand. Or we can come along and say, "Let's defer these future projects." By deferring these future projects, what's are listed there? The LED signs, the grill, the terazzo flooring, and the LED signs at the high school. Um, one at the admin and one at the high school. If we defer those to a future need, then then our true cost for next year's 2627 plan is $499,97. So, we could take the difference from a million to 500,000 and play that. So, and and defer these costs. So, there's another option. There's like three options already. Um the budget slide, however, obviously I was using some of those assigned funds to help offset this increase. So, whatever we do with the

113capital plan, whatever the board feels comfortable doing, we'll need to change that assignment and how much and how much we want to appropriate for that assignment. Do we want to use all of it? Do we want to use half of it? Do we want to use a quarter of it? Um, it is onetime money, I will say, but it is there and available to help fund the capital plan to get our budget more in line. So, historically, this has been an area where we imposed cuts because we didn't affect the classroom. This was really changing um the plan and such as deferring future costs associated with our facilities and our facilities department has done a wonderful job defer deferring those costs before. It's not something that we haven't done. It's not something that we're, you

114know, we're unheard to do. We are prepared to do that if need be, but really we wanted the board to like have say in this because I do know some of the board's experiences are funding for future needs. So, we want to make sure that you you are comfortable because this is the board's budget. It's not my budget to you. This is the board's budget and what you feel comfortable uh with. So, um, you really have the options of what that plan looks like. Um, again, you've kind of adopted the plan, but it but again, until each item comes back for the board, if it's over a certain threshold, certain amount, it would need board approval again. So, you have the opportunity a second time around to say, "Hey, no, I'm not going to do

115that." But in the beginning, you have the opportunity to say, "No, we're only going to do this, and this is what we plan to do." Blinda, can you speak to um so the line of deferring future projects? I know that was something that we had talked about looking at this meeting um and you have a handful pulled out already and listed. I would like you to speak to >> Sure. >> that choice. >> So deferring future projects um reduces the following items from the next year's five-year plan. And let me go back. Um this is what you saw before of the five-year plan. So, it's basic basically taking a look at the admin LED signs that's estimated there. I apologize. I can't see that number th this far. Um I think it's 40,000. Thank you.

116Uh I could turn around. Um the stadium grill and hood at the concession stand. Um that is 50,000. Thank you. Um repair taz trazo flooring is needed. Um, it's not a comp, we've never intended to do a complete replacement. It was considered at one point when we were borrowing money, but it came quickly off the table because it was determined not to do. So, we've been taking trying to take sections at a time to replace the Trazzo floor rather than do all at once. Um, that estimate is 27,000. Is that what that is? Thank you. And, um, the other fourth item is the high school LED signs. um and that is another 40,000. So those four items is what would bring down the first year cost to $4997 by deferring those four items. >> Is

117that the recommendation of the facilities of Josh and team? Is that why those four were pulled out? >> Yes. Um it is a recommendation simply because these were additions and I'll say this like lightly. These were additions to the normal process that we were doing with a facility finance committee review. Not saying they're not needed or not wanted um uh but it was a last minute addition for our team to add in. So therefore, the other items on the list um were much more awaited, much more of importance. >> They've been a part of the long-term plan. >> Correct. >> Okay. So those others can be in theory deferred um >> correct >> sooner. Okay. Thank you. >> So it's really um like I said options here on this slide. reduce the whole million, reduce

118it 400,000, reduce it 500,000, and then look at the assigned assignment of the capital reserve. Okay, so now we get to the capital reserve. So at the end of the year, we had $1 million sitting in this fund. This fund has is restricted as well for capital like projects. Typically we have items such as technology infrastructure plan, our copier replacement plan. We do not lease our copers. We buy outright and when we keep them until they actually fall apart and then we replace a little at a time. But we have a plan in place to replace them. We have instructional ITRP that's um instructional technology replacement plan. Then we also have our administrative technology plan the ATRP. We have cap five-year capital plan items in here such as roofing, mechanical, flooring, paving, fleet, maintenance and

119mowers. Um the five-year energy other and then other miscellaneous building and grounds categories that come up. So these are like little pots of money that's been set aside for these specific things that we we know we will need. So we have that um as well as it has the um FIP for um unspecified future larger scale projects. This FIP portion would fund the difference for the team room and the admin building. So while we're going through our planning phases, the goal would be use bond money first, use the capital improvement, capital plan second for those projects. So the questions I was asked a couple times years ago, well, we don't necessarily have the funds. We do have the funds. It's between two different funds to do the projects, but again, the board has a decision

120whether they want to move forward with those when time comes, as well as approve bids and so forth. So it could all in in theory change. >> And this is the fund that you're referencing when you're talking about a potential for taking money out to help balance >> not out of here. I'm talking about the million dollars out of the general fund. >> Thank you. >> Yes. Yes. Because once the money's in this account, I can't pull it back for general operations. It's it's not permitted by school law to do so. Um >> it's also a capital reserve line, but it's in a different >> correct >> uh fund. Okay, thank you. >> This is what's called fund 32. Bond money is called fund 39. It's a just a different way that we we accumulate

121those funds and keep track of those. So funds available as of March, we're still sitting 11.1 million. Why? because we're using the bond money for some of these projects to spend that bond money down first and foremost. Any questions? Okay. All right. Um Kathleen um asked for what are our unfunded mandates? New legislation out there is this whole column here. Um that's to me all considered unfunded. So we'd have to put measures back into adding cursive writing. It's not a part of curriculum now. Charter schools in any of the changes of charter schools are unfunded. Um even you think okay well requirements of cash of events. Well why is that additional um duties? Well while we keep track of cash of events now there's different checks and balances that we need to make sure that

122we're doing. It's far easier to say, "Hey, we have a system in place that we can take credit cards at games. We can, you know, concessions or doing fundraising, great. It's fine. But if we're required to take cash at games, um, then there's another level of oversight that needs to be done. Two people need to be available. Two people need to count the tickets. Two people need to count the money. So, it's just it's while we're doing it now, it's it doesn't come with any additional revenue to help support the the initiative is what I'm saying. Um, structural literacy acts, keystone or AP testing doesn't get funded. Uh, our cyber resident verification act 47 that just came into play. There's no new money coming for that. Um, and then of course the anticipated cell phone

123ban. while we address cell phones in our current operations with policy depending upon what this is could change some additional level of oversight. We don't know what that'll look like yet. All these other items here I say it's conditional considered underfunded. This is all state money. So the state does not fund us onetoone scenario in any one of these categories. So that is why I've listed it as it's all underfunded because if it was completely funded, we wouldn't have an higher we would not have a need to tax our taxpayers if we receive onetoone funding on this down to our basic debt. Special ed is definitely underfunded by um the state. So, but these are all areas listed here. Um, all state money uh that is considered un underfunded. Any questions on this? So, just

124for the clarity of the public like uh we had asked about this. I think Kathleen had seen something come through from um the state or a PSBA um like update of what's happening at the state level um that you know we have many things that we're beholden to provide to students and have in our school districts um without receiving the funds to do so. So we're we have to then find the money to do these things and have to continue to to have them. Uh Kathleen, it looked like you maybe had a comment or question. >> Just to thank you. >> Yes. And just to clarify that state funding is 28% of our revenue budget. >> I have a quick question too. Just it there's um some pressure from the federal department of education to

125implement a voucher program within Pennsylvania. Would that be taking away then from some of our federal money or how have you looked at all into how that might impact our budget? a great concept, but I don't see it um happening. And I'll tell you why. Years ago, I was still around when they did the charter program. We receiving subsidy for charter school reimbursements. Um typically was anywhere from $50 to $100,000. It was the intent was to offset your cost for charter schools. Shortly after that, legislation changed and that revenue source dried up and the charter costs went through the roof. So if there was a voucher program, I think it's taking resources from other areas to provide a voucher program is what I would say. I think a voucher program would be great in the

126cities, but local um rural areas I don't think would serve well. >> But you wouldn't anticipate it coming from like Title One or from other sources of federal money that we currently >> I don't anticipate that. >> It just Okay. >> Yeah. I don't anticipate that. I would envision it coming out as a legislative change um and as a process for that. Likewise, I think there's a legislative um opportunity right now. I think Mr. Masterone is is promoting um uh 75 years and older, no tax, no tax, no real estate taxes. Uh great concept, but there's so much so much surrounding that that's controversial. Like why 10 years? Why is it a certain age group? Why is like there's so many questions and just like just like the voucher program there's a lot of questions

127and it really hasn't necessarily been thought through or people have asked the questions to pursue that. >> Lots more information on that to come I imagine uh from PSBA as well. Here's a pie chart really of how our um objects are lined up. Salaries and salary. So again I'll go like this. This is 100 salaries 200 benefits 300 and 400 supplies are 600 um property of course is zero and then you have your other objects and your other financing sources listed here. Um so it's just visual presentation without any other numbers other than percentages. Uh this slide is the more details. This presentation will be available. So you can see um that the two largest areas are um professional educational and professional other. Then of course followed by the administrative and then the rest is

128all classified positions. Um in summary, 5.7% increase overall. Um equates again 3.95% is the standard increase. Um so changes in and out of the program in and out of those accounts really equate to the 5.7%. And that's just really a change from the current budget. So not a change from what's currently happening. Okay. benefits. largest two areas here as I mentioned before are depersers um and social security of course um the largest increase medical is not reflective for the numbers for reasons like it did increase 6% but because changes um in people's plans or you know retirements and or new hires different levels of plans and the percent of payment from the staff is actually showing a a cost savings in rather than a true reflection of 6%. However, the staff do pay a percent

129of the premium. So, if the premium's going up 6%, staff pay a portion of that. Um, but mostly in the benefit section is the piecers and uh social security. Um, all other expenditures I've listed the objects along the side here. So 300 professional technical services as you can see it goes across um IU services here 400 is other property services 500 other purchase service it's charter and transportation and insurance um that's property casualty insurance supplies as I mentioned before is all all of those items regular supplies um technology supplies 700 property is like any newer for replacement equipment. 800 other objects. Uh includes um our um principal, excuse me, our interest on our loans. Um some other grants. Um this budget does not include um the contribution for sorry drew blank here for a second.

130the um I believe the board received a um communication from Miss Booze on um GAF. So this budget does not include that contribution moving forward. If it would have been, it would have been in this area, but it it is no longer a part of the budget. Um and then of course the 900 category other financing sources has the million dollars for capital reserve has our principal portion of payments and um our budgetary reserve overall all of these categories combined 5.3% increase over prior year tuition and charters. So um the question came up who are all the charters we pay how much we pay what is budgeted and so forth. So the tuition and charters is broken down by these several accounts here. Uh 561 is PA leas meaning their other local education agencies. Typically,

131they are all other Adams County districts and or any other school district. Um, these are special education placement. They're not regular ed. So, these are students in living in our district that are sent out for services. VOTE, ACTI, um, excuse me, five, let me go back to the 562 charters. um our 562 charters. Uh as you can see the cost is um while it is very high here uh it dropped down a little bit for current year and it even dropped a little bit over or went increased a little bit over 25 but dropped compared to the actuals. That's because there's a new 363 form available now that um takes a look at different rates for cyers versus bricks and mortar. Um, so we're hoping that that can be in a little bit of a

132line. Um, but, um, the chart below shows the tuition to other LEAs listed there, like who do we pay for special ed placements. That is these two columns here. Um, to show that that these are the locations that our students that we sent. I I will I will say also that not only is it tuition, we pay for transportation to send these students to. Charters in our district um are these two columns here of who we use. Uh two bricks and mortar which is Vita and Monasuri. All the rest are cyber. So, as of January, we had 329 students, students are regular ed, and 72 are special ed that we pay for. Um, the 567, excuse me, the Tvotech AC, which is the ACTI here. Um, that's all uh tuition payment for ACTI. Our students

133going to the Vette to ACTI 567 and 568 tuition APS and PRI APS um 567 is approved private schools that's what stands for the APS and there are PA charter schools typically for the deaf and the blind 568 P RRI APS tuition these are private residential rehabilitation institutions in state and detention centers uh and alternative education programs. So you'll see up here that there was 10,000 budgeted. The likelihood that I'll get moved down to the the category below for 25 26. These typically these two accounts are subsidy deductions. Um so it's not something that we track on our end. It's just a deduction our account to account for those students. The last item here which is other tuition river rock. Um please don't let that name just uh throw you for a loop because it

134is other tuition all other tuition and I'm going to name off a few. So this is Mari which is formerly NHS human services that we send students to. It is Huffman Homes the cost that we spend there. It is River Rock Academy is specialized education of PA when we send students to Yellow Breaches also to Pyramid Healthcare Inc. and then of course Newstory in district placement because we have new story classrooms in the district as well as sending out students for new story. There is two facilities new Cumberland and Carlilele that send out for placement. So, um, our charter costs all within that 500 category encompasses these, uh, not just, uh, cyber charter tuition. Okay, I want to bring this slide back up again from our previous presentation. Um, I think this is relatively important

135for special ed. So, uh, while our new numbers aren't available for 25 because it's it has not been state processed yet, um, we have 428 special ed students enrollment as of 24. And there it shows the comparison across, um, the average as well as the national. So, you can see that we are 1.5% higher than the national special education enrollment growth. What I wanted to bring this up is we have I'm not sure if you're familiar with um special education but to date find the correct slide my notes currently right now we went from 428 students to 490 students this year. So there is more than 50 students that we're accounting for. out of that 490 enrollment, we have 60 that are out of placement, which would be the other tuition cost. So, while I

136don't have a measurement of true cost on that, I'm just informing like the cost of the students are rising and it's attributing to why our budget is increasing. Um, I won't be able to receive the updated PD numbers probably until about October or what 25 is. Uh but I do know that um enrollment's currently being worked on and as of right now uh the special ed enrollment is 490. So that's quite a bit of jump from 428 just over a two-year period, less than a two-year period. Um likewise, I provided uh the actual cost. So you can see it's risen over the last five years. Um, like I said, 2025 wouldn't be available, but you can imagine the cost increase if we're going from 428 students to 490 students where that number will lie up.

137Um, board control. So, one of the questions that came up is how much truly is within board control of the total budget? Um so I share with you the categories of 600 and I've highlighted the areas within this category um to be general supplies which would be classroom supplies and operating supplies, custodial supplies um as well as meals and refreshments are typically um staff focused. Um also um conferences when they do attend conferences of meals and refreshments charge um as well as the tech the uh tech portion of supplies. I highlighted these, but I want to make it clear that even though I highlighted these, this isn't the total cost of the count that can be cut because there this still attributes to the classroom in so many fashions. It would be hard to say,

138oh, I'm just going to cut that because it would have a direct classroom in uh impact. So out of like the 600 category where one slide says we have 5% of slides really the board has control of less than 3% of supplies out of the total budget. Um because by all means uh none of us are able to control special ed. um there are several contracts in place that um are typic uh why I like to mention that simply because you hear a lot of the acronym of a zerobased budget. While it's a great concept, it's not easily attained. you would have to start a zerobased budget years in advance. It's not a year-to-year approach simply because you're taking everything starting zero. You already have contracts in place that you've honored or you have to

139honor them that that there's there's no way you could go back to a zerobased budget. So the contracts that in place at that particular point in time, there's our measurement. We start from there. Um, so in all in all out of the total budget, it's less than 3% that the board really has control. Can you say go back and dress your supplies? Sure, absolutely. We could go back to our administrators and say cut x number of supplies. I can't guarantee you that it won't affect the classroom because it's their designation of what that cut looks like. Um but I did want to share with you uh where where the authority in terms of reduction and how much can be done. >> Since you brought up the board control, what is the total percentage on the

140total budget percentage that the board actually has control of? >> Less than 3%. >> The entire budget. Yes. >> Okay. And I did have one other question that you passed the piecers, but um the state went from total uh retirement to a half retirement half 401k. >> Mhm. >> And how many years ago that been now? Do you know? >> Five, six, seven, eight. >> I think it's five five or six years. So, how long do you think that it's going to take for that to help what we pay in peer? I mean, because you got to wait till the people that are full retirement are gone, then you just have the people that have half retirement and half 401k until that helps us out in that respect budget wise. >> I don't envision any

141that happening anytime soon because we're as a district, we're still required to submit the percent of salaries regardless. So whatever that staff member is selecting in terms of their retirement, that is their retirement package. We still are required to fund our percentage of salaries. So it is not a savings to us. >> No. No. But it it was sold to us as a savings to us the district. >> Sure. >> Yes. >> Definitely. >> And at a look it should be if >> Yeah. Where I see that showing up is is on a balance sheet item when piecers certifies the amount of money that's due to them for uh those that are retired. That's where I see that showing up as a balance sheet item. It's not a reflective item on our expenses. >> Yeah.

142>> Um Kathleen has one more question. >> Yeah. Just some just some clarification. So when you say the board controls less than 3% of the total budget or the items on this slide because for instance we would control whether recommended positions are actually added and that kind of thing which would >> sure absolutely you have you have the abil ability to um to remove those recommendations or say no defer those you have that ability but I'm saying overall the overall budget while I'm just showing it on this slide I was bringing it on to show um in terms of supplies what what you have but the overall budget is still less than 3%. unless you're making those salary adjustment changes. But the only in my my view the only one I see changing is the

143technology position because the others are part of a comprehensive plan. And so if you adopted the comprehensive plan, it means you need to adopt the plan itself which would account for the new staff coming in. When I see you saying like having control over it, I'm envisioning you're also meaning with fewer dominoes, if you will, right? Like to what it is that we've agreed to do. >> Uh next slide. So um this is uh again your board control on this um is the cap reserve. Here's where it was over the past four years. Um, and the request for this year is 1,ion40,000. The 40,000 is earmarked for the administrative technology replacement plan. So, the $1 million is obviously a choice by the board to cut um or change dependent upon the plan itself. And I

144believe other than that is just here's your discussion discussion items in summary which was shared before. So we have discussion around the capital improvement plan the assignment of fund balance any board directives if in the event that you want to eliminate some of the salary additions. Um and then of course the tax options what that final rate looks like. Um, while I put the unassigned fund balance policy, um, reducing the 6%, that's obviously an option, but it's not a timely one, nor would I recommend that simply because it's taking your unassigned fund balance even below uh what would be sustainable. Um, but I do put it there because it's clearly an option by the board if you so choose, but it's a process to it because it would have to go through policy and you'd

145have to set a new limit. And I >> I have a question on that. Out of the 4 million, whatever it is that's in there, how much of that how much money do you actually need from the time school ends till August to pay your bills before you get money in? >> Does that is that close? I mean, is that what you need? >> I have to pull that together to show what our dispersements were July and August. >> Yeah. Cuz I'm like, if you needed four and a half million, then that wouldn't help. You know what I'm saying? Yeah, let me let me pull that together and I can report that out the next >> Thank you. >> That's a good question, Tim. Making sure the unassigned fund balance is helpful. >> Yeah. >>

146Um lights are out. >> Yeah. No. Um so I imagine at this point, thank you, Belinda, for the presentation. So, at this point, um, we've been asking questions throughout, but I think one of the imperative things that we have to decide tonight is what we would like to see reflected in the budget that's presented next meeting in terms of um, accounting for some of those kind of some of that money we need to find, right? Um, so I I'm happy to have this be a discussion amongst ourselves. If we need more questions answered, people are in the room to do that. Um but you know sharing sharing thoughts and opinions on it um and what we're comfortable with. The floor is open for that. And you did say that we could you could take money

147from the bond Yeah. the bond line to put into the capital improvements plan. >> Once the bond money is spent down, it has to be a diminishment dimminimous amount less than $225,000 to be transferred to the capital plan. >> So, it sits in the bond money >> and stays in the bond money until it becomes $225,000 or less. >> Mhm. After I pay the arbitrage, it needs to be less that amount. Then I can close the bond funds out and put it into the capital reserve fund of 32. Right now I have what? $3.9 million sitting in that fund. >> Well, I'm just saying like if you wanted to take 660 whatever the that improvement plant was, you couldn't take the bond money to put into to pay the 660. No, because it's it's bond

148money can't come back to the general fund. >> Just uh two along those lines. >> I was just thinking because it's actually doing projects. That's what it's for. >> It is, but where the money is being designated from and to where it's going. I can't cross over into the general fund operations. >> So I can >> So you have to start a whole new project to make that money go away. I would have to do some level of project to remove $3.9 million of bond money. Yes. >> Okay. >> All right. >> Sorry, just al along those lines, the dimminimus, is that based on the bond 22, which is the 3.2 million, is there a second dimminimus or is it lumped for the 2020 bond? >> It's lumped because the goal is to get 20

149down to zero, >> right? 22 will be used to pay the arbitrage and then whatever is remaining in the 22 if it's not spent on projects it needs to be below the 225 in order to to move it over uh over to um because the IRS does look at that uh and they determine like what their balances are and reporting um for what we have to send in documents to them. They they want to know what the balances are. So, um, we could take it down to zero, the 20, but the 22 needs to pay out as well as pay for other projects. >> Would you be able to put back up the slide with the percentage options? I think it's the fourth or fifth slide. Sorry clicking back. >> No, that's all right. I

150have a clicker though. >> That's helpful. Yeah, >> cuz I when I'm thinking about the direction our conversation can go, obviously there's >> You mean this one? >> Uh, no. I'm talking about like slide five. Yeah, >> this one. >> Yep. Correct. um because I'm looking at you know the the as it stands right now the administrative recommendation is a 3.5% and of course we're here to also talk about the ways in which we want to look at the capital fund right um whether we're using the reserve funds from that or taking things off of it um there's still a $22,000 deficit there so I'm imagining that that is something that could come from deferring some of those capital items um like like had been suggested. Um, Belinda, can you remind me now that I'm

151flipping through slides what that what money that saves to defer those different capital items. >> Um, >> there were four listed. I think it was LED lights and or the screen and >> yes, >> Terzo flooring, >> the grill. >> And just a question on that. >> How much? Ryan, I'm sorry. >> Just on slide 22. >> Oh, on the same question though, deferring that just hurt you next year. Correct. >> You're just putting it off to the following year. >> Yeah. And then you have to raise taxes to pay for that because you put it off another year. So it doesn't really >> decision. Sure. Yes. Exactly. >> Right. Well, those those items I mean I think the point of that was those items were things that were added and are deferable. At some

152point if we would want them or the board at the time would want them, you then could vote on actually paying for them and doing the thing. Um I I know we also have an item on our agenda later which may or may not be on the on the table to discuss in great detail tonight, but um we were looking at that process for capital plan as well in terms of how that's funded. But as it stands right now, all those items are coming back across the table at some point to be paid for anyway and uh decided upon whether or not that's that's to happen. Um all right, now I'm looking for that slide. if someone else has something to say. >> So, um, the capital improvement plan you have, sorry, only until I

153made the move. Oh, we're mint over here. Um, so the capital improvement, sorry for a little humor. Um, the capital improvement plan currently stands for 2627 as $660,000, $822. Um, if we reduce the four items, we're reducing it down the capital plan from 660 to $4997. So, we have a million set in the general fund. So, then we're looking at here's the million in the fund. Do I bring it down to 660 or do I bring it down to 500,000? And then what do I do with the assignment is really the decisions. I hope that clarified it for you. >> That did. Yeah. I mean, that accounts for more than the 22,000 that's on there. Um but then of course this budget that's presented right now as a potential also already allocates 948,000 plus a

154little um from the reserve funds as well. And I think that was part of the discussion was whether or not we would like to use that amount there um or not. And just for clarification, those four items that we're talking about, the LED sign in front of the administration building, the the hood over the stove, none of those are essential. I mean, so I don't even know that I would look at that as deferred maintenance. To me, deferred maintenance is something that's essential and we're saying, "Oh, we can't afford it." And I'm not a fan of deferred maintenance because, as Tim said, you know, it will cost us more later. It's a rolling stone that gathers way too much moss. But these other items, I don't think I personally would be sad to not happen

155if it can help us, you know, par this budget down. Thank you. And two, just to clarify, because we're jumping around from slides here, but back to slide five, if that $500,000 were available, we could then not use as much as the the 2627 assigned funds from capital project. >> Correct. >> And so we could drop that down potentially to like 448. >> We could drop it down to only fund what you're going to do for the capital plan. So, right 500. Yeah. >> How does how does the impact on this may be a Josh question, but how does the impact on um the facilities and capital plan how does it impact it to have less money allocated in the budget and if that is like offsettable by the reserve funds regardless, you know? Um

156I don't know. That's a weird question. Like if we were to take it right now there's a million dollars set aside for these projects which isn't 100% allocated for but I imagine some of that like it's it's set at 660 if we're keeping it as is there would be $400,000 or you know math it backwards a little bit um that that you know isn't being used but like what does that go towards is that to make sure that if something comes in higher that we're prepared for that. What happens if we don't have that? Well, Belinda mentioned earlier, we we shoot for an average of a million dollars uh a year over the five years. This year, we're um our plan calls for 660, but if you go to I think it's next year, the

157year after on the full plan, we're probably sitting around 1.4 1.5 million. So, we just average at that 1 million. Um so, just because we're a little little below this year, um doesn't mean we're just going to take that money and put it in an account and not use it. um we're going to um kind of put that in a in a savings account and then use it at a later year. That's what explains the the million dollars on average um relative to cutting from 660 down to the 500 with the two LED signs, the hood, and then I think it was a TZO line on them. Um you know, Mrs. Pratt, you hit the nail on the head. I mean, it's kind of a want, not a need. Um and uh you know it's

158not like uh we don't have those now. So it's not like we'd be at a deficit if we didn't have them uh next year. U we could always look at it at a at a you know future time. >> Okay. Thank you. Does the um saving does the difference between this the million and whatever that actual is um you said it would go towards a savings account or something. Does that go into the reserve fund or does it go towards something specific that's different in terms of a fund? >> So if we kept the million in it would go right over to the capital reserve. So we'll do it if a million is set in the budget, we transfer a million over to capital reserve at the end of the year. So if if we

159didn't if we made that smaller but then also had a little bit left over in the reserve fund by like what Ryan said using less of that 948,000 as a result um of cutting these other items from the capital plan then if there were a need for finances we didn't account for outside of that 500,000 budgeted right um we could then still pull it from that reserve fund like the reserve fund is there to help cover that regardless of what that $1 million. Yes. >> Okay. Thank you. >> Mhm. >> But that's a one time. You don't get it back. >> Correct. Once you're using it, it's it's gone. Yes. >> It's gone. >> Yeah. >> Mhm. Yeah. >> Two, just to clarify, if we were to pull the trigger on like admin building and

160and made it down from the 3.9 million to the 200,000 reaching that dimminimus, we then could use that 200,000 towards our other items on our five-year capital improvement plan. >> Yes. >> Okay. >> Yep. the I think the I don't know the exact numbers whether the team team room moves forward um I think that was factored at 2.3 million and the admin building was 7.5 million they were high estimates of course we haven't got bids back to make the determination but both of those bond money be spent first and then the capital reserve would be next So if we do do those projects, I don't envision a dimminimus happening unless you decide not to do them >> or they get dramatically redesigned. >> Sure. I mean, yes. >> Yeah. Okay. Now, we need to have

161thoughts about how we're using funds. everybody start start having thoughts. Um I I do understand the thing that Dave's talking about and everybody's talking about. I think everyone understands the idea of kicking the can down the road. I also like that I'm hearing that there's ways that money can re-enter the capital reserve fund. And I do think there is some necessity looking at this budget, my personal opinion, of following along with some of this um recommendation at least, right, of using some of those assigned funds from the reserved reserve project funds. Uh just because we don't I mean there's there's a large amount of money to make up and we don't have um great options from where to pull it from. Um, but you know, I I I do kind of also like thinking through

162what Kathleen's saying in terms of those items or what we've been talking about, those items on the capital um plan right now that are wants rather than needs that aren't deferred maintenance. Um, I I kind of see some version of reducing the capital plans budget accounting not accounting for those wants at present moment and then saving more of the reserve funds as as a potentially good option for looking at a 3.5. Um, but like readjusting those those amounts of money. Um, that's where my head is at right now, but I don't want to be the only one to talk about it. And you don't necessarily have to make a decision. I just need to know what to prepare for the next meeting so you have more thorough discussions because decisions absolutely have to be made

163by the next meeting. So if you want to see options, I can come back with options and what they look like because again I already have to make changes to the budget. >> Yep. in terms of federal program money and um the change in the um insurance. >> Okay, I hear what you're saying. Then let me ask this question in a different way. Are there other people that would be interested in seeing a kind of rework of the 3.5 with um the capital funds taking off those wants and making it more of like a 500,000 budget and then changing that difference from the assigned funds capital reserve if that makes sense? >> Yes. Does do we need to vote or >> No, no, this is not a voting meeting. We're just looking at what Belinda

164can have on the slides for next meeting in terms of more detail. >> The 4.2 and the 3.5 with the adjusted to of the capital. Get rid of the 1% because that's not even realistic anymore. We went down that road for eight years. And so that way because when you talk to the county, if the assess assessments don't come in where we think they're going to come in, then you're you know which direction you're headed. And what was it again? I'm sorry. You wanted >> the 4.2 and the 3.5 >> that I got >> with the adjusted capital. Taking the adjusted capital out of the the four items we don't need. >> And Josh, is that is that next year? You said we going to need 1.4. >> I can't remember if it was year

165two or three. Uh I believe it was the running track replacement. I don't have the plan in front of me, but >> I just was, you know, if we move those things, that's fine, but I don't think lowering the budget cuz the next year you need 1.4. So, you didn't help yourself. >> Now, do you want to see the capital the assignment? Whatever is going to the capital is the assignment. Go ahead. >> So, if I'm putting $500,000 for capital transfer, not a million, then do you want me to see $500,000 of the assignment, a onetoone scenario, >> meaning taking rather than a 940? That's what I was proposing. Yeah. To see what that looks like, right? Because you're right, Tim, that you don't want to then like say, "Okay, we're not funding the reserve

166anymore." But I'm hopeful that we can use less of the reserve and in theory then save that that way. >> Okay. >> But I I imagine that could help account for that 22,000 that's unaccounted for at current at current current moment as well. >> I believe the 22,000 can be accounted for using the reduction in the insurance. >> Oh, fantastic. That's great. >> In the 66. >> Mhm. Yeah. >> So, I do have a question. I heard you say earlier, and I don't want to make any animation with the tech department in this district because they're awesome, but that seemed to be the one new position that could be negotiable. Is that what I heard you say? >> It it is. Um, however, they've kind of been asking for it for a couple of years

167and we've been putting them off >> for a couple years. it is >> the need really presented itself more simply because um the PIMS coordinator was out for extended period of time and there was really not an individual for backup or support readily available. Um, so we found ourselves in a predicament to try to to fill in and continue operations in terms of PIM's reporting, which is very important to the district because that means revenue to the district in terms of what your students are being reported as. So, are you are we trying to catch up to what was not done because of that person being out or and if we catch up, do we still need that additional help? >> We still need the additional help whether we caught up or not. Um the

168like the needs the department has said that the needs have increased by far for the past few years. Um especially terms with cyber threats that we've been getting um cyber emails. We're constantly getting before you know emails coming out to be careful and aware of um the oneman show of Jeff Williams being able to be responsible all hours of the day is almost getting to the point it's not feasible moving forward. >> I get it. >> Right, wrong or indifferent. Like there's so much that he can handle and there's so much that others can handle. So um it's just that the needs have increased. Um, so it's not really negotiable when you talked about those positions, right? I think it really the the point of calling it negotiable in the context of what was being

169talked about, I think, was the difference between special ed supervisor um is needed for things that are mandated >> federally mandated. Yeah, mandated for um IEPs and and education plans, but not so much for our our tech coordinator or our IT position. Um, but you also mentioned I wrote down you mentioned that there's an immense amount of overtime that's being paid at present moment as well. So, we're effectively paying for at least another half position of a person as it stands right now. Um, and we I mean the board knows pretty well about the cyber security component of we've been getting all sorts of spam emails for a while. So, >> but but too I mean if you know in terms of needs and wants, if we have a ransomware attack that is then siphoning

170off money that we would rather have just paid somebody and um you know we we might try to think of that more as a need than a want. >> Does more of the PIM's um accounting does that increase I mean I know there's lots of components to that but does that um increase with the increase in special ed as well? >> Yes, it does. Um I have a quick uh analysis of some of the items that was um um the complexity of the IT responsibility have increased over significantly. The curators of growth are and include um the onetoone Chromebook initiative has grown. Uh ongoing device monitoring and troubleshooting and repairs continues on. Uh and sometimes that doesn't get done necessarily right away. uh the PIMS management of 33 separate PIMS collections uh total approximately 86

171submissions some of which directly impacts district funding. We have um the district AV events which logged over 195 hours additional extra time o hours that's for assuming responsibility of concerts, plays, musicians, similar events. So it's a substantial amount of overtime that there's just not enough staff to go around and to help do some of that. And of course, Mr. Williams has the cyber security. It's become nearly a full-time responsibility, particularly ensuring that equipment is processally patched and updated. While some process are automatic, many still require manual effort. And then of course, another area he indicates is the software and online subscriptions. The volume of software and online subscription in use has expanded considerably over time, placing increased demands on the staff for troubleshooting and maintenance. He has expansion of the managed systems since 2012. The

172responsibilities have changed. Our HVAC instructs changed. Intercoms, lighting systems, telecommunications, cyber security systems, um cameras um are now part of uh his uh realm and just um the additional position would help serve as um the additional Skyward PIMS assistant. we are looking into or evaluating a new um student software system. So having another support person and technology would help by far um as we go down that path. So it's a a mirror of um activities that uh it has been asked for and it's just getting to the point that it's it's more needed now than ever is is really how it was presented to us. >> So I'm going to take my question back. Okay, that original question as to whether we needed it. >> Still a good question. >> I think it was a

173valid question. I'm going to actually follow up on it. So, the description says this person will be assigned >> um in into one school building. >> Yes. >> Which one? >> Uh middle school, I believe, is the building. >> And then the the two existing people on that staff, will they handle the other four buildings? >> No, this person will also handle other buildings. It's just they will be housed at the middle school. like their responsibilities don't end just with the school itself. It is they're still responsible and will be responsible for the entire district. It's just where they plan to put the person for a physical presence to have someone there. >> All right. Thanks for clarifying. >> So, aside from um seeing an example of the budget presented with those changes to the

174capital reserves and capital plan items, is there any other data that we would like to see? and what Dave said about percentages. Um, is there any other data that we'd like to see presented at the May 18th meeting with regards to kind of changes to what this looks like? >> Ryan, >> um, you know, I I hope it's not too much math, but um, there was a request from somebody from the public to to look at 2.9% um, in terms of what that that would look like budget-wise. Um, and I think that we should respect that request. Um, so if we're going to remove the 1% and maybe take a look at the 2.9%. Um, if you're like feeling pretty taxed out by the border, that's going to be something. >> So, no, we'll remove

175the 1%, 2.9%, 3.5%, and 4.2% is what I'm hearing though. >> 2.9 3.5 and and the index. >> I believe the 2.9% was the um increase for social security, right? Yeah. >> Yeah. Right. And you're and you're going to do what Tim asked as far as knowing your burn time over the summer. >> The amount of cash you burn >> because that's the critical level is because if you're burning more cash then >> percentage is going to change. >> Yep. I have that down she here. Plus I'm also going to provide you uh the am interest um Dave. So you have that and um the summer the two the three options um and then adjust capital to the removing the four items and then um adjust the assignment versus what that capital transfer is and

176show you along with the other changes to the budget that are made so you can see where we're lying. Okay, good. >> Any other needs there or questions there before we move on for tonight? Great. >> Thank you. >> Thanks, Belinda. >> If you have more questions for us, send an email. Um, all right. We're going to move on to the next. Uh, I don't believe there's any citizens participation. I think they have since left. Um, hopefully they found it informative while they were here. We're going to do our routine approvals. I'm going to take uh 51 to 53 the agenda and then the regular meeting minutes for April 7th and April 20. I'm going to leave out uh human resources for now. So looking for a movement between 51 to 53. >> So moved.

177>> Second. >> Thank you. Any discussion on those items hearing? None. Kathleen. >> Yes. >> Dave, >> yes. >> Ryan, >> yes. >> Donna, >> yes. >> Al, >> yes. >> Mike, >> yes. Tim, >> yes. >> Justine, >> yes. >> And I vote yes. Moving on to 5.4. Can I get a motion for the human resources recommendations? >> So moved. >> Second. >> Discussion or questions on that. Hearing none. Dave, >> yes. >> Ryan, >> yes. >> Donna, >> abstain. Al, >> yes. >> Mike, >> yes. >> Tim, >> yes. >> Justine, >> yes. and Kathleen. >> Yes. >> And I vote yes. >> All right, we're moving on to our information items. Um I will mention why in case um we don't remember having this conversation a little bit earlier on why 7.1

178is on here. Um so we had approved the capital plan as it stood um a while back and part of the discussion or part of the questions that came up afterwards were whether or not uh the process we used for paying for and approving the projects on the capital plan was was an adequate one for um our our needs as a district and a board. Um, meaning I think Dave brought up the the idea of does it make sense to approve the plan and then revote on everything rather than um just voting on it off the bat and funding everything for the following year, not beyond that initial year. Um, the 5-year part of it would still remain as a year-to-year thing, but um, looking at that. So, we were just going to talk about

179it a little bit. I would, uh, I'm happy to do that a little. I'm also looking at time and thinking that perhaps we can discuss this more robustly at another time as well. Um, >> yeah, I I'm wondering if that's okay. Um, so >> this be deferred maintenance. >> Yeah, I was going to say I I think it's an important conversation, but I do also know that that is not something that is going to uh change for this current year as it stands. So, I'm I'm cool with that. Uh, I'm cool with maybe having it as another information item on June 1st. Um, I just want to make sure that that's okay, particularly with Dave since this item was something that you wanted to talk more about. >> And that'll be based on the fact

180that it doesn't exceed what was approved in the amounts. >> Right. Yes. Because I think Right. Yeah. Because that's part of why it comes back is sometimes those those >> Well, before they were coming back regardless. >> Mhm. They were. Yeah. But you're saying if they don't change from the approved amount that they would not come back and then if they did then they would come back. So that's kind of what's on on the table for discussion. Are is everyone okay with tableabling this for another month? So we'll not see this on the 18th meeting but we'll see it on June 1st as an information item. Great. Uh 7.2 is trans transportation contractor transfer. I don't remember if someone was going to talk about this one. Belinda, do you have information on the transportation contractor

181transfer? So 30 West Carriers is already starting its phase to um retire and so one of the buses whether it's bus 21 or 23 um has been offered to Kyle Fluke which he also has a bus company um and he also has been um doing some um activity runs. Um Kyle Fluke is also interested in expanding his bus operations. So um we are envisioning that uh West 30 West carriers as well as uh Genie Warner, Judy Warner um the the Warers are going to be at some point within this contract or at the end of the contract telling us that they're no longer in business of providing transportation. So therefore, we're looking at um the segue to get Kyle in um also to take on more fleet as well as Mr. Huffman. Uh this is

182something that was very similar done with Mr. Huffman uh with um I think it was the War Warers again. Um but basically allowing them to take over this bus and also provide service for us. So um their contract calls for operating other asking for other contractors to address um this. So we're basically giving the opportunity for Kyle to take the one and gain gain additional buses. Uh because as it stands right now, none of the other contractors are asking to increase their fleet. So this is our our mechanism to maintain current level of bus rosters um and continue the service rather than having um the service go un uncalled for or unanswered so to speak. This is a good recommendation obviously a very good recommendation because I'd rather have something in the pipeline for someone

183to take over the route and future routes than not have anyone at all and be forced with trying to find uh coverage for those routes >> and bus drivers are hard to find. >> Yes, still looking for some. >> Any other uh questions on that item? Okay. Uh 7.3 is the PSBA voting delegate. Um, I don't know if this email got sent to everybody, but we received an email a little while ago, uh, from PSBA talking about this. Um, basically, you can read in more detail here what it is, but there's a meeting happening in November on a Saturday, um, that requires school boards to have voting delegates there present for PSBA as a representative for our school board. And it can be anybody on this board uh, up to two. So, we need one,

184we can have two. Um, I will forward that email in case it has slightly more detail to everybody. Um, and then next meeting we'll we'll be nominating and voting on those people uh or person for the meeting in November on a Saturday. Do we remember if it's a Zoom or an Inerson meeting? I think it's in person. Great. Thank you, Morgan. And it's like somewhat local. Great. Any comments or questions on that? Okay, great. Moving on to 7.4, VA settlement 2016 to 2017. Uh, is there someone providing information on this one? >> Belinda, do you want to discuss I know we keep going back to you the settlement? >> This is your meeting tonight. I'm just kidding. freshman. >> That was the one where the administrative fees I think were $45,000 and it came back

185with a settlement for them paying >> 43 43. >> Yeah, just down a little bit. >> Yeah, they originally 45 though. It got down to about 435 then. This goes back to a 1617 um inaccurate filings and it was determined that Vita owed us funds and so other charters were also in this filing and so um VA basically agreeing to paying the outstanding balance while absence the fees. >> Any questions about this item from 2016? Okay, >> great. No, wait. I So, where does that money go when we get paid? >> Where does it where will it go? >> It's going to end up in our unassigned fund balance. >> All right. >> At one time it was a receivable. Um because it was so old, we cleared out the receivable, so it'll just be

186as other revenue into our unassigned fund balance. >> Great. Thank you. Um Okay. Are there any board updates from the two kind of committees that we have, the JOC or the PSBA legislative? Tim? >> Yeah, go ahead, Tim. >> Um, apparently I'll make this short. Um, uh, our meeting wasn't uh anything. they uh um had some students that were students of the month and they got their awards and then um we had an uh executive session talking about uh potential land u purchase but uh other than that that was it. >> Thank you. >> Anything from PSBA? >> No report. >> Okay. Um I will just go remember I just want to bring up some >> Yes. Oh yes. Yeah. Go ahead. You can do that before my thing. >> Mhm. Yep. Okay. So, >>

187an item from the floor. >> Yes. Item from the floor. So, I had a request by a couple of individuals to get a status report on our two lots on Hunterstown Road. And then in addition to that, I did some investigating on my own. Do we have a report of where we are? >> I I I have nothing new. >> The last I know I've been sending communication to Stocken, not Stocken Leader, Staxen Stump. Um, Representative, I believe Mr. lockman is being very hard to deal with. Um and our solicitors have been on um on a regular basis trying to touch base. Um and so there there's still a lot of um um uncooperation there on that terms. Um but I have not received an update since. Uh, so I did send information over to

188Lee Dalton to kind of check to see where we're at on the process. >> Have they Have they made uh the gentleman in the back a monetary offer plus the offer to burm everything in front of him? >> The gentleman in the back. No, because his driveway comes out, right, >> and is not a part of the parcels that we initially worked on. >> Well, but they were supposed to be the access points. Well, his driveway is past the par is not a part of the parcels that are to be accessed in. The gentleman called and asked if we can if he wants we want to use that driveway to access. We would still have to cross over the parcels to get into the lots which are on the opposite side. >> Okay. So, the

189other thing is has anybody looked at getting direct access on the state highway to the two lots? >> We were trying to work the solicitor is trying to work with Mr. for Lochman to make sure cuz we paid for the access. We paid for that all development. We had all rightaways all set in place and so Lochman has been out there barricading the ent. >> It's barricaded right now and looked at it. But my understanding is is that when he was sold that property, it came the whole way out to the highway. >> It did. Yes. >> So we lost our rights because it was never recorded properly. Uh well, it supposedly was and he had changed he had changed his um linage. >> Okay. So, I looked into getting highway occupancy permits directly into

190the lots from the front and you don't have to worry about the back and my understanding it possibly can be done. >> I'd have to check with the solicitor because I think that was one option that they were looking into. >> I checked with the civil engineer and they think they could do it for 1500 a lot. >> Belinda, you said that you asked Lee for an update. So, in theory, this is coming. >> In theory, it's coming. Yes. I just haven't heard, you know, obviously with her being this evening and our um wonderful replacement probably wasn't informed. >> I hate that this is my only contribution of the evening. >> You've been ready. This is not something uh this is not a matter I'm involved in, but I I will make it a point

191to follow up with attorney Dalton tomorrow >> because if we're still burning attorney fees on this little project and you can get access for 1,500 a lot, >> you'll spend that in >> 5 hours. Depends on the attorney. >> Yeah. Um, I wonder if we can get, you know, you're already talking to her about it, but I wonder if when that information comes if that could be something that because I'm looking at it for the benefit of the students. >> Oh, absolutely. Because >> I mean, for $3,000, why don't we just try to get it done >> and and forget about fighting about it? >> I I would just add for Saxton and Stump, I mean, this has gone on way too long. And in talking with Dave Snyder, and I I appreciate uh Mr.

192sites addressing this, but uh we've had those kids out to the recre park to install playgrounds, the Apple Museum uh over in Upper Adams. That's not what they signed up for. They signed up to build a house from foundation through the finish work. And it's just it's a damn shame, frankly, that it's taken this long to make something happen. And I I know these 16 kids and and the the trades instructor are really I mean just devastated that they didn't get that experience. So anything we can do to expedite this process and make it happen uh so that this at least for next year's students in the fall I I think is imperative. So Mr. Sites I I personally thank you for your efforts on that. >> Thank you. Yeah. And I and I will

193follow up on that to get you guys some updates. >> Thank you. >> Sure. Um, okay. So, I have one just kind of general item for the board um coming up over the next month as our time to evaluate our superintendent over here. And, um, there's been a couple of different um, forms that we're looking at using that I circulated via email to you all. So, I think looking at the timeline here, um, if you have any other feedback on those forms, uh, get it to me ideally tomorrow morning. uh looking at kind of finalizing that form. Ryan, I'll reach out to you cuz you talked about wording on one of those things. Um so that that way we can run that form by Jeff and make sure we agree on it and then it

194would be sent out to everybody as soon as possible after that um later this week so that we can fill it out by the 18th. Okay, any questions on that process? I'll send that timeline again to you guys. The goal here is uh a meeting with a final evaluation uh with Dr. Master here on June 1st. Okay, great. Thanks, Dr. Mner. Go ahead. >> I promise I'll keep it quick. Just a few uh housekeeping items and um as we do each month, we award uh our GLOES awards to outstanding faculty uh throughout the district. This month, we are recognizing um Axa Jones, who is kindergarten teacher at James Gettys, Jackie Temple at Franklin Township, and Tammy Hallbaker who works here at the admin building um our affforementioned pins coordinator. So congratulations to the three of

195them. Uh just a couple of like I said little housekeeping items. Uh we do have to sign an agreement with the IU uh so they can provide the services that uh we will need from them this uh upcoming school year. Anything that we do require of them or that they can't provide for us, we will get a statement of work supplied from the IU outlining any costs for those services. Um obviously we would if we accept those costs, we'll we'll sign to have those. But the agreement that we're going to sign, it's just that we will work with them uh throughout the school year. And then again, any individual services we need, we'll get uh statements of work for those. So, uh we will be taking care of that here in the near future. And

196the only other uh just small piece of business that I have on here just to bring up as I emailed all of you earlier um last week we did receive a letter from Vita requesting a meeting to discuss um them purchasing Eisenhower from us that was brought up a couple years ago um when we had our demographic study. We were advised through that study not to sell that building. Um and again I believe you all got my email last week with the reasons for that. Um, so at the moment I would say we we would not plan to sell. At least that would be our recommendation. Uh, but that obviously something that the board can discuss at a future date. >> Thank you, Dr. Bernard. >> Dr. McFron, >> today is the first day of

197teacher appreciation week. So, we'd like to thank all of our teachers for their continued hard work and dedication to our students. Um, next school year we are providing our professional learning opportunities to our staff via our new summer academy offerings in August and June. Um, a catalog of 73 total offerings by our staff for our staff was shared on Thursday. Teachers are currently in the process of registering for these summer academy sessions. I'd like to take this time to thank all of our staff who are leading summer academy sessions as well as our team that has been working behind the scenes to make them successful. And last but not least, it is May, so there are many upcoming concerts and events in our district. An art show at the high school even next week. Please

198check out our website and we look forward to seeing all the great things our warriors are doing. >> Great. Thank you so much. An exciting time of year for sure. Uh we will see everybody here one more time before graduation, but um a happy teacher appreciation week and a big thank you to all the staff from the board as well. Um, our next meeting in here is on Monday, May 18th at 7:00. And can I get a motion to adjurnn? >> So move.