001I'll call when you're ready. Mrs. Daneshaw Here. Dr. Pomeroy Here. Mrs. Bush Mrs. Cutrone Here. Mr. Feinstein Mr. Bankens Here. Mrs. Wesneski Here. And Mr. Wood Here. Uh there are no visitors. There was an executive session for finance and information personnel. There'll be a motion on the regular voting agenda to approve the November 24th committee minutes. There'll be a motion to approve the voting minutes as presented for the 24th meeting. Motion on the regular voting agenda to approve the December 3rd reorganization meeting. There'll be a motion on the regular voting agenda to approve the December 3rd special meeting. reports. What's up first today? Save them for the voting meeting. So we'll move on. Uh we have several uh reports tonight in the voting meeting. So we should be able to move on to the budget.
002Finance and transportation. There'll be a motion on the regular voting agenda to approve the financial report for the months of November and December as presented. There'll be a motion on the regular voting agenda to approve the following disbursements and credit card statements for the months of November and December of 2025. There'll be a motion on the voting agenda to approve the PO School District audited financial statements for 2024-25. There'll be a motion on the regular voting agenda to approve the GO notes series 2026 resolution as prepared by bond counsel. And there'll be a motion on the regular voting agenda to approve an agreement between the PO School District and David Benefits Consultants to prepare and electronically submit the 1094-C and 1095-C. There'll be a motion on the voting agenda to renew the Beard Legal Solicitor
003services for the PO School District starting January 1 of 2026 billing at $180 per hour. There'll be a motion on the regular voting agenda to approve a three-year agreement with Parent Square Smart Slice to host the district's website starting January 1st, 2026 to June 30th, 2029. >> [snorts] >> The new website will be active as of March 22nd, 2026. The cost is $58.65 and year two is $38.65 and year three is $39.96 as presented. There'll be a motion on the regular voting agenda to approve a contract for professional services between the PO School District and PSBA as presented. Motion on the regular voting agenda to approve the Crawford County tax claim sold properties identified as a map number shown. There'll be a motion on the regular voting agenda to approve the following drivers for the
0042025-26 school year as Do you have any question on budget finance? Move on to building and grounds. I have the [clears throat] motion on the regular voting agenda to post the the 2012 Ford bus that's up by the bathing shop on municipal bid to sell to the highest bidder with a minimum bid of $500. There'll be a motion on the regular voting agenda to post three broken cafeteria tables on the municipal bid uh to sell to the highest bidder. Any questions? And we will move to the doctor for curriculum, instruction, and assessment. There'll be a motion on the regular voting agenda to approve field trips for the 2025-26 school year as presented. There'll be a motion on the regular voting agenda to approve the 2012 guidance plan for the Philipsburg-Osceola Area School District from 2026
005through 2029 as presented. Question? Personnel committee Joanna There'll be a motion on the regular voting agenda to recognize tenure for Rebecca Murphy. We motion on the regular voting agenda to create a 5.75-hour cook position at PO Middle School retroactive to January 5th, 2026. >> [snorts] >> We motion to post the 5.75-hour cook position at the middle school effective January 5th, 2026. We motion on the regular voting agenda to transfer Stephanie Neville from a 4.5-hour cook at the middle school to a 5.75-hour cook at the middle school effective January 27th, 2026. We motion on the regular voting agenda to post a 4.5-hour cook position at the middle school effective January 13th, 2026. We motion on the regular voting agenda to transfer Tiffany Harper from a 4.5-hour kitchen helper at the middle school to a 4.5-hour cook
006at the middle school effective January 27th, 2026. We motion on the regular voting agenda to post a 4.5-hour kitchen helper at the middle school [clears throat] effective January 27th, 2026. We motion on the regular voting agenda to create a 4.5-hour helper position at the PO Middle School effective for the duration of the second chance breakfast program retroactive to January 5th, 2026. We motion on the regular voting agenda to post the 4.5-hour kitchen helper position effective for the duration of the second chance posting effective January 5th, 2026. We motion on the regular voting agenda to hire Cheryl Anderson 4.5-hour kitchen helper at the middle school for the second chance breakfast program at $13 an hour effective upon completion of her required paperwork. We motion on the regular voting agenda to hire Jeff Lindeman as a 5-hour
007district-wide custodian at the high school effective upon completion of the paperwork. We motion on the regular voting agenda to accept the resignation of Adam Feliciano as a 5-hour district-wide custodian at the PO Elementary effective December 26th, 2025. We motion on the regular voting agenda to post a 5-hour district-wide custodian position at the elementary school, Philipsburg Elementary School, posting effective January 5th, 2026. We motion on the regular voting agenda to hire Jacqueline Harper as a 5-hour district-wide custodian at PO Elementary School at the rate of $17 per hour effective upon completion of required paperwork. We motion on the regular voting agenda to accept the resignation of Eli Callowa as a 5-hour district-wide custodian at Osceola Mills Elementary effective January 20th, 2026. There'll be a motion on the regular voting agenda to post a 5-hour district-wide custodial
008position at Osceola Elementary School posting effective January 7th, 2026. We motion on the regular voting agenda to hire Rachel Odell as a 5.75-hour special education instructional assistant requiring safe crisis management certification at Osceola Elementary at the rate of $15.25 per hour effective upon completion of paperwork. We motion on the regular voting agenda to hire Tiffany Williams as a 5.75-hour special education instructional assistant requiring safe crisis management certification at Osceola Elementary School at the rate of 15 15.25 per hour effective upon completion We motion on the regular voting agenda to approve the following student teachers for Penn State University for the 2025-26 school year as presented. We motion on the regular voting agenda to approve Emily Deemer as a graduate practicum placement at the PO high school library for the 2025-26 school year. We motion on
009the regular voting agenda to approve a request from an employee for an unpaid day on January 9th due to exhausting all sick and personal. We motion on the regular voting agenda to approve a request from an employee for a half unpaid day on January 23rd, full days from the 24th to the 27th of February. Sick days may not be used for the reason requested. We motion on the regular voting agenda to approve a request from an employee for a half unpaid day on February 26th, full unpaid days on the 27th through April 3rd. And sick days may not be used. We motion on the regular voting agenda to approve a request from an employee for unpaid days from January 23rd through February 27th due to exhausting all sick and personal. We motion on the regular
010voting agenda to approve a request from an employee for an unpaid day on January 20th due to exhausting all sick and personal days. We motion on the regular voting agenda to approve a request from an employee for unpaid days on January 5th and January 6th due to exhausting all sick and personal days. We motion on the regular voting agenda to approve a request from an employee for a half unpaid day on February 26th and a full unpaid day on February 27th. Sick days may not be used for the reason requested. We must know the regular voting to approve a request from an employee for an unpaid day on January 12th due to exhausting all sick and personal days. Thank you. >> [laughter] >> I just want to say I just want to say can we
011post the job that we just, you know, like last time? That's what I want to say. Linda appreciates that. Um this is Mrs. Nesky. There will be a motion on the regular voting agenda to extend a school counseling agreement between the Pottsville Area School District and the Intermediate Unit 10 for the period of January 31st, 2026 through February 27th, 2026 as presented. There will be a motion on the regular voting agenda to approve a teleservices assignment with Candy Harrington from January 5th, 2026 through May 26th, as presented. There will be a motion on the regular voting agenda to approve a linkage [snorts] agreement with the Pottsville Area School District and Community Counseling Services, Incorporated for family-based mental health, family stabilization services for the 2025-26 school year as presented. There will be a motion on the
012regular voting agenda to approve the following individuals from the Jean Marie Foundation to provide free therapeutic support for students at the Pottsville Area Middle School during the 2025-26 school year pending clearances as listed. There will be a motion on the regular voting agenda to post the head varsity girls soccer coach position for the 2026-27 school year posting effective December 12th, 2025. There will be a motion on the regular voting agenda to approve the following position volunteers for the 2025-26 school year as listed. There will be a motion on the regular voting agenda to approve the following extracurricular positions for the 2025-26 school year pending clearances. There will be a motion on the regular voting agenda to approve team events, practices, and activities for the 2025-26 26 school year as presented. Question. Sure, I can read
013them. Okay, we have a 20 item one there, 25-26 calendar. Just so you know, today's date was reflected in there, so it's been edited since the I sent it when I went on Friday, so it includes today's dates, so we should be good. Um school board treasurer, there will be a motion on the regular voting agenda to approve and we need to nominate one as a school board treasurer through June 30, 2026. Number three, Intermediate Unit. There will be a motion on regular voting meeting to approve Sydney Cookerly as the Intermediate Unit 10 representative through December 2028. And then, there will be a motion on the regular voting agenda to approve Edward Vankus as the Clearfield County Career Technology Center representative through December 2028. And at this our voting meeting tonight, we're going to need
014to identify an alternate that will be Number five, there will be a motion on the regular voting agenda to approve individuals at the Clearfield County Career Technology Center alternate representative through December 2028. Question. Anything on the committee meeting go over before we adjourn? What does a treasurer do exactly in terms of school board? Do you want to speak to that? I don't really I I really can't answer that as far as like we we handle all the financial stuff and everything. I don't really know. I think you have to do a signature name on the bill and the check. Well, the school board president is on on the checks along with myself. So, so between now and the voting, we'll have that >> [laughter] >> Something you you're fit for. Is this a necessary I
015guess it'd be my question. Is it a what? A necessary thing to have? We have to have a treasurer appointment. So, Mr. Menarchik would have been our previous I don't think the the workload's very heavy. Right. Did you remember he left? >> [laughter] >> Look like a fine candidate. Anything else? We'll adjourn and we'll reconvene at 7:00 o'clock. Motion that we adjourn. Motion. Second. All in favor? Aye. >> [clears throat] >> We're adjourned. We'll take a 10-minute break. Justin, your food is food there for anybody who didn't sign in. It's healthy. >> Grace Allen here. Yeah. Call the meeting to order for voting meeting of Monday, January 26th. The quorum is here. Um >> [clears throat] >> Please announce it as we go through each one, [laughter] and then we'll go back to the presentations.
016Anything under C, budget finance? Which one was with that name before? Which one? Yes. Yeah. Okay. What's that name there? K1 and K2. K4 and K6. Okay, let's go to budget finance. Do we have any under A? >> Three and six. Three and six, budget finance. C3, C6. Mr. Wood. It's K3. K3. I have it under other items. K6. A3 and A6. I see. Everyone see what it is? K, yes. >> [clears throat] >> Anything need pulled out of any category besides K3 and K6? Um I7. I7. Anything else out of any category? We have an consent agenda. We're going to do the poll first. Consent agenda all except for I 7, A 3 and A 6. I have a motion. Motion. Second. I have a motion and a second. Roll call, please. Mrs. Bainey
017Shaw. Yes. Dr. Bloomery. Yes. Mrs. Bush. Mrs. Cockerill. Yes. Mrs. Reinstein. Yes. Mr. Vankus. >> Yes. Mrs. Vestnesky. Yes. And Mr. Wood. Yes. We have voted I 7. Uh motion to approve the following extra curricular positions for 2025-2026 school year paying clerk services. I have a motion, please. Motion. Yvonne has a motion. We need a second. Second. Dr. Bloomery. Yes. Mrs. Bush. Mrs. Cockerill. Yes. Mrs. Reinstein. Yes. Mr. Vankus. Yes. Mrs. Vestnesky. Abstain. Mr. Wood. Yes. And Mrs. Bainey Shaw. Yes. Motion carried. Under I K, school board treasurer, I need a motion to approve someone as a school board treasurer through June 30th, 2026. I'll put my name in for consideration. Bloomery. I have a second for Dr. Bloomery. Second. I have a second. Roll call, please. >> Mrs. Bush. Mrs. Cockerill. Yes. Mrs. Reinstein.
018>> Yes. Mr. Vankus. Yes. Mrs. Vestnesky. Yes. Mr. Wood. Yes. Mrs. Bainey Shaw. >> Yes. Dr. Bloomery. Yes. Motion carried. And for the Clearfield County Career Technology Center, we need an alternative representative, alternate representative. I need a motion for someone to take that position. They would only uh 10 1 8 can 9 attend, right? Correct. And he has 100% attendance. Incorrect. What day is it? Second Monday of the month. >> [clears throat] >> It's a good opportunity for them. I can probably do it if I can make it as well. Anybody interested? Nobody jump? Well, I suggest we use Shawna Bainey Shaw as the representative for the Clearfield County Can I have a motion, please? Motion. To accept Shawna Bainey Shaw as this Career Tech Center representative alternate. I'll second that. Roll call, please. Mrs.
019Cockerill. Yes. Mrs. Reinstein. Yes. Mr. Vankus. Yes. Mrs. Vestnesky. Yes. Mr. Wood. Yes. Mrs. Bainey Shaw. Yes. Dr. Bloomery. Yes. And Mrs. Bush. Motion carried. That concludes the voting part of our meeting with presentations, which will surely be part of the meeting. Uh does anybody have any questions on things that were voted on? No explanations. So, we'll go to presentations. Senior High. Uh we don't have Grace Henry. How about me? And Eli. Uh However, those two are representatives, they also do the national anthem at our lot of our sporting events. They do a super job. I think that's what they do. So, we will listen to Mr. Dockins. All right. Well, good evening. Um so, I wanted to share that the high school [laughter] academic decathlon team finished third recently in the region on January
02015th at their meet in South Williamsport. They're going to be going to the district championships on January 30th, where they are in the running as one of the top five small schools in the state. So, we're looking forward to how they perform there. The events recently in South Williamsport were music, math, science, and economics. We had 10 different students receive medals. We had 13 medals total. Um Gra- Gavin Crooks, Brody Han, Grace Henry, Anastasia Ricotti, Macy Bush, Nick Webster, Lucas Amy, Connis Connor Wallace, Bailey Reynolds, and Davian Richie all received medals at that meet. And Davian Richie received the overall gold medal and had the highest math score in the entire competition. >> [cough and clears throat] >> So, they did a great job. Um I also wanted to share that our CSO students, our
021chief science officers, I'm going to steal a little bit of Ryan's thunder because I know he has this on his um notes to share as well, but they did receive recently a $1,000 mini grant from Abnet. Um and they will use that money to fund their upcoming STEAM night, which will be held here on the 20th of February at the middle school. Uh there will be several outside organizations there such as Shavers Creek, Pittney Robotics, and Center Recycles. Those are just a few. Um and then the high school students will be overseeing a number of STEAM-related activities. So, hopefully some people can come out for that. Thank you. Thank you. >> [snorts] >> Welcome. I just wanted to kind of follow up on what Linda was talking about our our family STEAM night. I just
022brought some flyers. I'll just pass those around. Enough for everybody. We're proud of it. Mrs. Gross has been working hard. We're going to be hosting it here at the middle school uh February 20th. At the middle school, uh upcoming we have our eighth grade will be taking their yearly field trip to the CCCTC on February 12th with Mrs. Gulick, our school counselor. So, that'll be um you know, kind of an exploratory field trip for eighth graders to kind of get an idea what lies ahead at the uh at the votech in Clearfield. We had an in-service day last Monday. Um you know, MTSS is the is a push here at the district and in a lot of school districts. And we had our tier one and our tier two teams do a really nice presentation
023for our faculty in the library on our in-service day. And basically just to kind of make it simple, our tier one team is the team that maybe plans like the school-wide celebrations and um our tier two team is maybe the team that that looks at interventions for maybe like smaller group of kids, kids that might need re-taught on how to behave in the classroom, or kids that might need academic interventions in math or science or English or social studies. It's a process and it's it's in progress and I'm really proud of the the progress that they're making and I thought they did a really nice job. In my report I attached our students of the month for November and December. We had a nice PBIS assembly uh right before Christmas break. And if you you
024might have noticed on the picture we had a a special guest uh Brian Roach which is our uh custodian here at the middle school. He also got into character as Orange E the Mime. And if you you had to be there, but the the faculty, staff, and the kids got a huge kick out of it. It was it was really it was something. And we're trying to finish our mid-year benchmark testing here at the middle school. We were able to get our math and science in on Friday. ELA is planned for this week. And we're just going to look at the data and that'll help us kind of project how our kids what our kids need and how our kids might be able to do on the PSATs coming up in April. That's it for
025me. Bill. Mrs. Mason. All right. Um in December Osceola held a family reading night. Um it was well attended. We had over 150 people join us. Um Santa was there, the Grinch was there. Staff volunteered to read stories. We had crafts um and snacks. So, evening with families. Um I also noted our students of the month for December and our theme for December was caring. So, these are the students that were nominated for being caring in our classroom. Um the chess club is up and running in the fifth grade again for the second year in a row. Kids are super excited to uh start this again. Fifth graders play after they're done eating lunch every day. Um so, they look forward to that. Um benchmark testing also um we completed it and we used all
026that data at our in-service day last Monday. Um it was really great like we had our tier two team presenting as well. So, we really dug into the data and see where we can make improvements with student interventions. Um and this is for Justin and I both. There was a keystone competition planned for tomorrow and we each had students going representing um in the design competition. It has been postponed. So, we'll keep you posted um when that actually happens and when they have a makeup day. Thanks. Thank you. All right. Good evening, everybody. Um couple things going on at PE. One, our student council. So one of our members of student council is also in our gifted program developed a project called virtual pen pal. She's been working on it for 3 years. This year
027we kind of started looking at reaching out to other school districts. So it's all virtually done. The students are currently writing letters to each other online through Google Classroom. So we've teamed up with Moshannon Valley Elementary and we have over 30 fifth grade students that are connecting with with students at Moshannon Valley Elementary. [clears throat] So she's super excited. This is a project she's been working on for a while. We have a cash cow fundraiser currently going on. Last year we started a it's called PE kids for kindness program and all the funds that we raised through a couple different events throughout the year go towards pediatric cancer research or a or a student or family in need. Last year we donated all of our funds to a second grade student at PE and their
028family. So we're looking to do this again this year with one of our families. As Sherri shared that we did our midyear benchmark assessments our K to 2 students complete something called Acadience Reading and math assessments. Our third, fourth, and fifth grade students complete blanket assessments. And we actually had our a fifth grade science teacher Mrs. Stoll. She's utilizing something called Firefly. Something new we've started to branch out a little bit into the other buildings in the district to see about how we can utilize that to help prepare our students for assessments and also to get some benchmark scores for our students and collect some data that way. A lot of the data was collected during those benchmarks. Our teachers also utilize during the in-service day last Monday. We had 72 students with perfect attendance
029during the second marking period and 165 other students who only missed one day. So over 50% of our building missed one day or less during the second marking period which is really good cuz with the weather changes a lot of sicknesses going around and things like that. Those students will be recognized at our end of the end of the month assembly. And just the last part I want to give a little shout out to a couple of our teachers. One is Miss Abigail Benson. This year she for the first time in I don't know how long she combined both of the elementary schools together for an evening concert for the families and they were able to team up with the middle school and present here at the middle school. I heard it went really really
030well. The families really enjoyed it and the kids really liked working together at both buildings. The other teacher I want to give a little shout out to is Mrs. Orwick. Her art classes the fifth grade students are making Olympic medals. So she's been presenting lessons about the winter Olympics that will be coming up and the kids got to learn about the different events, the history of the Olympics, and just some of the backgrounds there. So I you know we really appreciate what our teachers are doing for the students. Thank you. For student services our ESL teachers Christina Markle and Jen Depto created a presentation for the staff in all four buildings to kind of go over myths and facts about our English learners and also just go over some ways some activities for the teachers
031to differentiate [clears throat] and how to help them best in the classroom. It was very successful and informative. For homeless I've been working with the principals and we met with our regional director to create a document that would have all of the resources for Centre County, Clearfield County, and try to organize it so that when we have a family who's experiencing homelessness we have something that we can give them. But then also we brainstormed ways and we got to use it with Justin and a family we brought them in and met with them to give them resources and make phone calls together to help with the support. Mel Curtis has been a wonderful support as well at the YMCA and he is going to be um he's working with our principals to start food pantries
032and they've created a space and a way to manage that and very soon we'll have food coming for our students that are experiencing hunger during the day. Good evening everyone. So lots going on with winter sports. Cheerleading has been working really hard and covering a lot of our winter events, girls and boys basketball, wrestling, and even our unified bocce events. Their game day team did a halftime show demo at the girls basketball game and they had that great numbers and great participation happening with that program. The middle school has been to a few local competitions and doing well. Our competitive spirit team is off to nationals this week in Orlando. Boys basketball is currently 4-11 and girls is 4-9. Hopefully we get some more wins here as we finish up the second half of the
033season cycle. The girls team did win the West Branch holiday tournament and we had Casey Hughes was recognized as a Progress Land athlete of the week coming out of girls basketball which is exciting. Wrestling has been rocking it doing well. They're currently 14 and 3. We were team champions at the Red Devil Duels and our home Mountaineer Tournament Duels and we qualified for the team duel championship and we earned one of the host spots as a four seed. So that is currently scheduled for tomorrow at at our high school. We have we're hosting West Branch and Central Cambria. We'll wrestle at 5:30 and then PO will face the winner of that duel meet. So that's tomorrow. So that's pretty exciting. The girls team has struggled with some injuries and illness but they're currently currently one
034and three. They finished fourth at Anthracite Charlie Hunt, Kendall Mears, and Daisy finished third there. Payton Kepart and Casey Davison finished fourth. And we hosted our Lady Mountie invite where we had Daisy Questner finishing second and Riley Bush took third in our home event. So but they are like I said battling some injury and hopefully they get healthy here to finish off the season strong. Unified bocce has been been rocking it. We have two teams enough for two teams. So that's pretty exciting. So our A team is 4-2, the B team is 1-5. >> [clears throat] >> We have two home events that I hope to see you guys at. February 10th we're hosting a pink out. So it'll be a great event. Our team and the Bellefonte team will be coming. We're wearing pink
035shirts honoring people cancer survivors. So it should be a great event. Then they have their senior night will be February 12th. We have one swimmer Nick McEachern. He's been competing in LHAC qualified for the LHAC championship where he probably didn't do as well as he'd like but he was seventh in in the 100 yard backstroke and which is an improvement over his 12th place finish last year. But he has qualified for a District 6 championship in three events. 50 yard freestyle, 100 yard backstroke, 100 yard butterfly. So butterfly's that's a tough one but he qualified for districts there which is exciting. Junior high teams boys and girls basketball boys are 2-9 for the A team and the B team. The girls are struggling but definitely can notice improvement from beginning of season to last. Some
036of those girls haven't played it's like their first year playing sports. So they're working hard to get better. Junior high wrestling boy is our 4-3 with a third place finish at Clarion, a first place at Moshannon Valley tournament. So Our sports have been rocking it all thank you. Our paraprofessionals attend January in-service this year. So they usually attend one during the school year at some point and Alicia McGraw who is one of our autistic support teachers at the middle school. She did a presentation with me for them and it was called power engagement and student dignity. So we talked a lot about um how we work with students and what that looks like and then we spent some time looking at the mission and the vision of the district and our core values and what
037does that look like in your actual everyday practice. And then in the afternoon we did some less fun things but we looked at our medical assistants and how we can make sure that we are keeping with the newer requirements and making sure that we are maximizing as much as we're able to do with the services that we're providing. And then we also did some training with both the special ed teachers and our paraprofessionals on what the codes are regarding restraints of students and what that looks like and just some of the legal requirements. With Mr. Rossi's help, Mr. Rossi's our transition coordinator for the district, Mrs. Bacon and Mrs. McGraw now have reopened the PO print shop at the middle school. So that's exciting. The goal of the print shop is to give students real
038life experience with following directions, filling orders, working together as a team. So teachers can place an order and then they have a designated time where they can come down here and work as a group to fill the orders in the office. And then Dr. Reese mentioned PO unified bocce is midseason. The coaches this year Miss Gregory and Miss Phillips have two full teams and our next home meet is February 10th at 4:00 p.m. If you have not been to a unified bocce meet I strongly encourage you to go. It is it is a [snorts] highlight for me. It is just absolute joy to be in that environment with the students and and to just see how excited they get and see all of the students working together. It's really wonderful. So I strongly encourage you
039to come out for that. Thank you. Tom, do you want to do the introduction? So, the next presentation is going to be Baker Tilly who did the district's 2025 audit. Chandler right now is letting them in meeting here and it's going to be It'll be Jacob Mookler, John Compton, and John Taylor from Baker Tilly to go over the results. Good evening, gentlemen. Good evening, everyone. Um, Kelly here. We're all set to go. Yes, sir. All right, let's get started. I think we're going to share our screen here. Um, appreciate the opportunity to be with everyone here this evening on this snowy night. Uh, my name's John Compton. With me tonight are John Taylor and Jake Mookler. We are the external auditors from Baker Tilly and we're here tonight to discuss with you the results of
040our June 30, 2025 single audit of the Philipsburg-Osceola Area School District. The audit is complete at this point in time. We signed off on the audit report on December 23rd uh immediately before the holidays and it's since been finalized and delivered to you and we actually filed it with the Federal Audit Clearinghouse and the PA Bureau of Audits um shortly thereafter. Uh, so it's been filed with the regulatory bodies that need a copy of the audit. The audit is actually due for the federal government and uh the Commonwealth of Pennsylvania March 31st of 2026. So, you're about 3 months ahead of schedule in that regard. That's um always good to be in that position. We think you'll see as we go through the report here this evening uh a number of things. Um, first uh
041in terms of the accounting and compliance uh there's no findings in the audit. Your folks uh Tom and his team continue to do a good job with the kind of the back room accounting and uh the financial reporting. They're well prepared for us with this process. Um, for those of you who have been on the board for some time, that's not always been the case there at the Philipsburg-Osceola. Uh, there's been a real uh turnaround in your business office and the way that your accounting is done. So, uh we appreciate that and that makes a difference in this overall process. Um, the the idea behind an independent audit such as the one that we conducted here is that management keeps the books and the auditor gathers evidence to support the numbers and the disclosures in
042the financial statements and we give an opinion on that information. And in situations where the auditor gets involved with the bookkeeping and makes the the overall process more difficult and so we appreciate Tom and his team and and their uh being ready for this process. From a financial uh reporting or financial position standpoint, I should say, you'll see as we go through the numbers that there was about a $3.2 million decrease in your general fund fund balance. The vast majority of that or about 2.9 million relates to an accrual that was recorded for a payable for the district's exit from uh this self-insured health insurance consortium that you uh vacated uh in fiscal 2026. Although uh that check if it's been written yet, probably is if if not yet, it's probably will soon be written.
043Um, in fiscal 2026 um it was accrued back to your June 30, 2025 numbers. So, that cost, if you will, is reflected in these numbers that we'll go over here this evening. Um So, we have a lot to cover here tonight. We know it's not a great night in terms of weather, so we're going to move through this pretty quickly, but feel free to jump in as we go and we'll do our best to answer any questions you might have. Over on slide two, this is our contact information, two Johns and a Jake. Uh, I think later on in the presentation we have our email addresses and telephone numbers. Always happy to hear from uh management or the board with any questions or concerns you might have as it relates to this process. Uh, feel
044free to reach out to us at any point in time. Over on slide three, in terms of an executive summary, uh I had mentioned the the the very last bullet on this slide is the uh decrease in your general fund fund balance. Um, in terms of your general fund fund balance and um the sufficiency of that fund balance, if you think of that in terms of a reserve uh that the district has essentially set aside for future purposes. Um, there's different benchmarks or measurements that we use to kind of gauge how how sound that fund balance is and uh the district prior to June 30, 2025 was kind of uh below where you should be and then with this um situation in 2025 with the exit of the self-insured health plan, uh that didn't help
045matters. So, you'll see as I think John Taylor goes through the numbers, um you're below where we would expect uh a school district of your size to be in terms of a fund balance. Um, generally speaking, we would look for a government such as Philipsburg-Osceola to maintain about 2 months worth of operating expenses uh in your fund balance or if you take your your budget divided by 12 multiplied by two, that's approximately where we would like to see uh the district be in terms of fund balance. And we'll take a look at that here in a moment, but um uh that was a significant uh event within the 2025 years audit. And as I mentioned previously, uh your folks continue to to do a nice job with the bookkeeping. Um, that helps this process uh
046immensely in terms of the work that we do. It enables us to kind of focus on uh the more technical side of things and how your accounting and reporting on things versus rolling up our sleeves and getting involved with the bookkeeping. So, we appreciate that. Um, over on slide four, just to kind of try to put this in perspective here, um there are external third-party users of your financial statements. There's a requirement from the federal government. There's a requirement from the state. Uh, the bonds you've issued have financial reporting requirements and um those those regulatory bodies or your investors expect the district to report its financial position and results of operations in accordance with generally accepted accounting principles. Uh, in the governmental arena, there's an organization known as the Governmental Accounting Standards Board or the
047GASB as we call it. Uh, the GASB sets accounting rules for state and local governments including uh your school district. And that information, those rules that are put forth by the GASB, are what we use in terms of evaluating uh the way that you're going about reporting your financial uh position and results of operations. Uh, an audit such as ours involves our gathering evidence. So, we'll we'll deal directly with your bankers, uh you know, bond trustees. Uh, we will uh examine accounts payable invoices. We'll balance things. We'll look at how you bid your capital projects. All those sorts of things and at the end of the day we'll kind of step back from all of that evidence and uh kind of looking at it from the framework of the GASB and we'll we'll develop an
048opinion on your financial statements and we'll issue that opinion. Uh, for your June 30, 2025 year end, we've issued what is known as an unmodified opinion. That means that your financial statements are fairly presented in all material respects in accordance with generally accepted accounting principles. That's a high bar. Um, these accounting rules are complex. Uh, the GASB has been prolific as of late. It continues to put forth new requirements and the fact that you're able to get to that point and Baker Tilly can provide an unmodified opinion on your financial statements, that's a real achievement. Um, in addition, because the district has received and expended more than $750,000 in federal financial assistance uh we conduct what is known as a single audit uh which is really two audits under one umbrella. We've audited your financial
049statements and I I spoke to that a moment ago. We've also audited the district's compliance with um all these uh requirements from the federal government as it relates to your federal programs, and your your most significant federal program, the one that we audited as what we refer to as a major federal program for June 30, 2025 was your child nutrition cluster. Uh in our opinion on your compliance with all of those requirements was also unmodified. So, two two opinions in this audit, one on your financials, one on your major federal program compliance, both are which were unmodified opinions, and that's uh the the highest level of assurance that we can provide as auditors. Pause there for a second to see if anyone has any questions on what I just covered before we turn it over
050to John Taylor who's going to walk through the number side of the audit. Okay, hearing nothing, John, if you would, please. Yes, sir. And good evening, everybody. I'm just going to spend a little [clears throat] bit of time talking about the budget versus actual results for the district for the fiscal 2025 year, and then look at your fund balances, as John mentioned. So, we do uh like to check in and make sure the district is spending the funds that it raises uh in accordance with its budget. That budget versus actual statement shows on on page 18 of the audit. And there you'll [clears throat] see that the district did have uh revenues in excess of what it budgeted for about 3% or $1.1 million. uh for 2025. On the expenditure side, it's it's apparent, as
051as John mentioned, you can actually see those negative variances. The district spent about $4.3 million or 11% more than what it had budgeted during the year. And again, that relates to that reporting or expensing of that excess from the self-insured health plan. As you look at that statement on page 18, you'll see many, if not all of the functions the functional categories of expenditures showed a negative variance as the district or Tom did allocate that liability across all the expense categories. So, that most of most if not all of those negative variances related specifically to that. But all in all, the district uh did budget at the beginning of the year to to basically break even, and the fund balance decrease in the general fund was was actually $3.2 million. And again, of that 3.2,
0522.9 million related to that self-insured health activity. >> [clears throat] >> And then just, as John mentioned, a sound general fund fund balance uh would we would like to see about two months' worth of operating expenditures for Pottsburg. That would be about $6.5 million. And as of June 30, 2025, the general fund's fund balance was approximately $1.9 million. So, less than those recommended levels. >> [clears throat] >> Just a couple slides to to visually uh see that. This is your different uh components of of fund balance at that point in time. The restricted is the the small piece. Uh committed dollars are in green there, $1.1 million, with the balance being unassigned, 677,000. Just a reminder that the school board does commit those those dollars for certain purposes, but could also, if needed, uncommit [snorts]
053those those dollars to use for for general operating purposes. Slide nine is a comparison. The dark green bars showing that's recommended uh two two months' worth of operating expenses is what we would like to see in fund balance. And the left side and the right side, you can see both those those components of general fund fund balance are less than those recommended levels. And [clears throat] then just uh historical trend or over time, you can see the the district's uh general fund fund balance uh as it moves uh to the current year, you can see that drop-off. And it's our understanding that uh there'll be some restoration of that fund balance with uh in future years' health health insurance savings as it moved into the new plan. Perkoskiola >> That's a That's a good point.
054If If I may, um you know, the the nature of governmental entities and their budgeting and their fund balances is such as you'll have years where there are surpluses and years in which there are deficits. Um you'll hear governments talk about a fund balance replenishment program where, let's say um the school or the city or county or state or what have you has a a fund balance policy in terms of where you're going to maintain that fund balance, and for whatever reason it it kind of dips below that level, uh governments will implement this so-called fund balance replenishment program where they'll budget in such a way that um surpluses will kind of bring that balance back to where um you would like to be. And that's our understanding the reason why the district uh left
055the existing or the four board uh insurance consortium was you felt you could do better uh under a different arrangement. And um you know, the understanding is that those savings will help uh to get your [clears throat] fund balance back to where we feel should be, where I'm sure you folks do as well. So, good point. Okay. At this point, I'm going to keep moving and turn it over to Jacob. He's going to look at a few more uh slides with the financial information from the year. Take it away, Jacob. Thanks, John. Yep. Like John said, I'm going to go over some historical information from the last five years. Um on this first slide, you're going to you're going to take look at the general fund revenues by source. Um and in the legend on
056the right-hand side, you can see kind of where the revenues are coming into the district from. Uh the majority of the money coming from from the state, and then local will be the next will be the next bar bar. And at the bottom is the federal, and as the the COVID money continues to decrease, uh we expected that decrease in federal money coming into the district, but mostly [clears throat] it is state money. Go ahead, John. Next slide is general fund expenditures. Um we've been touching on general fund expenditures a little bit, so I won't go too much into detail here, but uh the the high green bar and and the blue bar in the middle there are the two highest um expenditure types, and that would be your instruction and then your support services.
057And you can see there uh what kind of expenditures are um included in each of those expense lines. Um Go ahead, John. Jumping into the capital asset activity for the year, um on the governmental side, the capital assets were 40.9 million net of depreciation at June 30, 2025. Um additions during the year were a little over a million dollars, and depreciation expense is 1.9 million for FY25. And we've included here um the high school roof project um being almost all of the $1 million of current year additions um on the governmental side. And then on the business side, for the food service capital assets um were 548,000 net of depreciation at June 30, 2025 um with no capital additions in in the current year, um and its depreciation expense of a little less than 9,000.
058So, here is this slide is taking a look at from 2020 to 2025, the long-term debt um for the school district going down um over that time as debt service payments were made um with no new additional debt being issued at that time. Um we expect to see that to continue to to decrease. This slide takes a look at the district's pension contributions to PEASERS. You can take a look at the numbers in this slide, but the biggest thing here is that at the bottom, um the employer share of this PEASERS contribution is subsidized 50% by the state. Um so, not not the total of these dollars are being taken on by the district. And go ahead, John. Here is another liability slide, but this is the district's proportionate share of the net pension liability.
059Um and this this figure is allocated based on uh PEASERS' proportionate share of the the state of PA's total PEASERS payroll. Um so, that would be uh Pottsville Pottskiola's share of that total liability. And I think Oh, yep. So, this is the Go ahead, John. Yep, thanks. The uniform guidance um looking at the single audit section of of our audit work this year. Um if you look into the actual issued financial statements, you'll find that the schedule of expenditures of this federal awards, which details the amounts received and expended um for federal programs during the year is found on page 58 and 59 of the issue statements. And you can see there in the middle there the district expended $2.1 million in federal financial assistance during fiscal year 2025. And in similar to last year,
060we did not identify any findings similar to what John Compton said earlier in the presentation related to the district's major federal program, the child nutrition cluster and the school lunch program. So at this point, looking at financial and historical data, I'll pass it back to Jay here to give his final summary. Yeah, well folks, we'll probably be sounding like a broken record, but in in terms of the accounting and the compliance piece of the audit, all went well. Bookkeeping was very well done. No significant audit adjustments, no compliance issues. On balance, we would recommend kind of making that a focal point in your budget sessions going forward to try to replenish that. That can be done over time. There's nothing, you know, written in in law that says you need to be at a certain
061level. It's just a best practice sort of thing. So we would encourage you to kind of work on that. And we know Tom absolutely understands this and is working toward that. The remainder of our presentation for maybe the next 20 or so slides contains certain communications that are supposed to take place between the audit firm and either the audit committee or the finance committee or in this case the full board. In the interest of time, we won't go through that. We'll leave that with you. John Taylor, was there anything in particular you wanted to touch on there for the board? I'm saying no. I Tom, if he hasn't already um has these slides and is is ready if he hasn't. Like I thought to share that with the school board. So nothing in nothing in
062particular. Okay. So we'll turn the floor back to Tom and appreciate everyone's time and attention this evening. And if there's any questions or any any thing of interest here this evening you want to discuss further, our email addresses and telephone numbers are in the slide deck there. All right, thank you, gentlemen. Thank you. Thanks. Have a good evening. Yep, thanks, gentlemen. Thanks. So the next presentation is going to be PFM Financial Group and Dinsmore our bond counsel just to just to give an overview of the 2026 GO bond resolution that was on the agenda. Yep, now and then yep. And then just add just allow Murphy and Jamie. Do you need Jamie Doyle or Murphy? Good evening, Jamie and Murphy. So I appreciate you guys jumping on the call here and waiting to this point.
063Good evening. It's a pleasure to be here this evening. And if you would permit me to screen share I believe you all also have a hard copy of my presentation Yep, yeah. in front of you. Yep, they do. But again, I'm Jamie Doyle from PFM Financial Advisors, independent financial advisor to the school district. And our presentation this evening contains the results of the second step of your financing plan, which is a restructuring of some of your existing debt. I just listened to your budget presentation. And again >> [clears throat] >> your exit from the self-insured health insurance plan has strained your reserves a little bit. And this restructuring will create some cash flow relief to help you rebuild those those reserves in short order. So if we go to the cover of my presentation, you
064can see this transaction is $1,360,000. And if we go to the next page, I always like to talk a little bit about interest rates and market conditions. And I'll focus on that lower snapshot of the tax-exempt BVAL index. So you can see, you know, over the holidays, the long-term fixed tax-exempt market was pretty steady, not a whole lot of fluctuation despite the Federal Reserve Committee lowering short-term overnight lending rates at their December meeting. But then you can see we caught a nice little dip in interest rates in January. And we were able to take advantage of that dip in rates for your transaction this evening. If you look at page three, you'll see your overall debt portfolio. And as always, the top half of the page is gross debt service, meaning principal and interest. And
065the bottom half is your local share after some [clears throat] old grandfather plan con reimbursement. We have added tonight's transaction column 10, the GO note series of 2026. And that is all-in what your debt portfolio would look like after this evening. The next page is a summary of the two-step plan of finance. So you can see in column five, that's where your local share of your debt service stood before we did anything. You can see in the green the 2025 transaction that you already undertook. And you know, as of this morning, you were at column seven all-in. Tonight's transaction is in the blue. Again, it's a restructuring of some existing debt. And what it will accomplish in column eight is it will scoop some of that debt service out of the current year to the
066tune of $178,485. So basically, what that means is you've budgeted the number in column seven, you budgeted $2.2 million, we're going to scoop $178,000 of that back out. So at the end of the day, your your net payment or lower payment will be $2,022,000 and change. Likewise, next year in your upcoming budget year, we're going to scoop out about 877,000 of two of your old issues to create again, you know, some cash flow relief so that your payment will only be $1.1 million. And we're suggesting that you budget the number you otherwise would have paid in column seven, but then you'll have $877,000 to set aside and rebuild your reserves. So that, you know, that will be part of the efforts in in the current year and in the upcoming budget year. And then you
067can see where we're layering that debt service that we scooped out of those first two years is over the next 11 years or so, mostly out here in 2036, 2037, and 2038. Because, you know, that's where your debt service was naturally dropping off. And so you [clears throat] can see after you get out to a certain point in time, you'll level off at a million 940,000, I'll call it. Noting that all of these numbers in column nine are are lower than where you started off in the current budget year, which was $2,179,000 rounding up slightly. To go through the mechanics of what is needed to accomplish this, oh, I'll point out one more thing on this page. When when I last presented to you in person at your meeting, we originally envisioned this restructuring to
068go out to 2040. So based on the rate that we received from M&T Bank and some optimization and what happened in the market, that dip in January that I described to you, we were able to shorten this two years, which also saved you some money. If you were to compare the total in the blue to my prior presentation, we're better this evening by about just a little less than $342,000. And on a present value cost basis, we're better by almost $64,000. So again, really pleased with with the results of this particular restructuring. >> [clears throat] >> So how this will work begins on page five. On page five, you'll see all of your 2015 A bonds. If you did nothing, you continue to make these payments on this page. And you can see you have
069payments that go from April of this year through and including April of 2041. On the next page, page six, you can see the part we're going to restructure. So again, it's all of the principal maturing in the current year and in the next budget year and the associated interest. So, we're going to scoop those payments out. On page seven, you'll see the remaining portion of your 2015 A, so you can see it's blank. There's no principal in the next 2 years, but you will continue to make the payments on this page for the remaining portion. And then we get to your 2016 bonds. That's the second series of bonds that we're scooping. So, this page shows all of the bonds if you did nothing. Payments range from April of this year to April of 2041.
070And page nine, again, we're scooping out the principal payments and associated interest in those first 2 years just like on the 2015 A's. Page 10 shows the remaining portion, so you'll continue to make the payments on page 10. Page 11 shows how much money we need in order to pay off the principal and associated interest on the 2015 bonds. It's about 582,000 rounding up slightly. And on the 2016 bonds, it's about 701,000. And then page 12 is is what Tom will use the budget on forward for this new series of 2026. It shows the 3.76% rate that you're able to lock in this evening from M&T Bank. It breaks out principal and interest and semi-annual debt service for budgeting purposes. And the upfront cash flow savings that I just described. On page 12, you'll see
071the sources and uses of funds. You'll see that at the top a million 360 360,000 is is the face value of the note. You'll see estimated beside all of the uses, not because I think they're going to change significantly, just because they're estimated until we get a little closer to settlement and and get the invoices and finalize everything on the final settlement sheet. Anything that's that's left over in miscellaneous and rounding, which I do expect there will be some left over, will go into a sinking fund toward your first debt service payment. So, there'll be a little bit of additional cash flow savings that will offset that first payment as well. Settlement would be scheduled for March 2nd and and that's a very important date because we need that date to occur in advance of
072those what would be regularly scheduled April 1 payment. So, this is plenty of time to settle and then, you know, those April 1 payments that we scooped out will become part of of this series of 2026. The yield of the issue, that's the rate that we'll report to the IRS, is is a 3.76. It pretty much mirrors the rate on the bank loan itself. And then the remaining pages are the proposal from M&T Bank. So, you know, you can peruse those at your leisure, but I'll point out a couple of the highlights. Again, it's a million 360,000 and it's tax exempt. And if you look at the next page, you'll see it does have prepayment privileges, they call them, or or call options is what we often refer to them to. So, you can see
073there is a premium if you were to turn around and prepay it in the first year, the second year, the third year, but once you get to the anniversary date of the fourth year, there's no prepayment premium at all. So, you know, if if you wanted to once you get to the fourth year, you know, you'll be able to you'll have the option to prepay if if you'd like to. So, I'm going to pause there cuz I know that was a lot of information. I'm happy to answer any questions that that you might have before I turn things over to Murphy to see if you have any questions on the resolution itself. Questions from anyone? Put this in layman's terms just for all of us. If you look at page four under the blue, we
074know we went through our audited financials, we have about 1.9 million in fund balance. By doing this, those red numbers, the 173 for this year and the 877 877,000 for next year, will go by the end of next year at the end of June 2027, we should be able to absorb that into what our fund balance number is. So, our 1.9 should in theory grow by those numbers there. Questions? All right. Go ahead there, Jamie. Hi, Murphy. Thanks, [snorts] Jamie. Um, good evening, everyone. My name is Murphy De Pompey. I'm from a law firm called Dinsmore and Shohl right out of Pittsburgh. And I'm really quickly going to walk you through your resolution that's on agenda item C4. Uh, basically, this resolution is going to authorize that everything everything that Jamie just explained, your general
075obligation note series of 2026. It will pledge your taxing power to pay the note back. So, you will promise to pay the note back based on the taxes that you collect as a school district. It also accepts the proposal from M&T Bank, which is at the end of the presentation that Jamie just showed you. And it authorizes Dinsmore and Shohl, us as note counsel. So, we assisted in the drafting of this resolution. If you act favorably upon that resolution, we will assist in the drafting of closing documents and get everything settled. Uh, it all your resolution also authorizes us to file with the Department of Community and Economic Development, which is a requirement of the Local Government Unit Debt Act. So, if you act favorably upon the resolution, we will take that approved resolution. We
076will take the proofs of publication of the two legal ads that we will publish on your behalf. So, summary notice was already published letting people know about this meeting and about this resolution. If you approve the resolution, we will then publish an enactment notice, which will say that we have enacted the resolution. And then we will also file a debt statement that says whether or not you're within your legal borrowing capacity, which you absolutely are. So, we'll compile all that and send it off to DCED. That's not a review of your decision-making. They cannot veto you. It's just a procedural requirement of the Debt Act. Um, probably most importantly, the board will not have to take any further action in order to get this loan across the finish line aside from authorizing this resolution tonight.
077So, that's the final thing that this resolution does. Um, and if anybody has any questions about it, I'm happy to answer. Yeah, so we were able to we actually were able to do votes before the presentation. So, the resolution has been approved. Oh, Yeah, so we'll we'll get everything signed and FedExed back out to you this week. Fabulous. Thank you so much and we'll get that enactment notice published. I'm really glad to hear that. Any other questions? All right, looks like it's a go. We're ready to roll. >> Okay. Yeah, we appreciate your time. >> thank you for your time, guys. Thanks so much. Bye-bye. Appreciate the help. So, um, budget Yeah, budget update. Yeah. So, basically, I just wanted to provide the board just with a real quick update as far as calendar events.
078So, at our next meeting in February, we will be I'll be presenting the budgeted revenues from the state for federal and for local at our February 23rd meeting. At the March 23rd meeting, I'm going to have all the proposed expenditures. 26-27. At our April 27th meeting, I will have the proposed budget for the board to adopt at that meeting. And then the goal is to have final budget for your approval on May 26th. And we also set at that point the tax levies and implement them accordingly. We won't have the homestead farmstead amounts in the state until May 1st, so we can't really adopt anything until that last May meeting. But we're we're we're on pace to be about a month ahead of time from where we were last year. So, again, proposed budget at
079the end of April to be adopted and then a final budget, which will set the rates, and that's May 26th. Questions on any of the timeline from Mr. Martin? Mr. Shoemaker? All right, so let's do an update here. We've been going at it for about an hour for this meeting. I mean, is is all right if I stand here? Is everyone good with that? All right, so you have a handout in front of you. Let's go through a couple of things. All right, so last 6 months, we've had our several meetings. We had in August. Those agendas are out on BoardDocs. We had August 13th, August 25th, September 22nd, and then October 27th. You can see that on my superintendent's webpage a copy of those two presentations. And basically, at that time we said we
080were going to come back in the January-February timeline with some additional information. And so, tonight's step one of that process. You go to the next slide. Got the next slide there, very good. October 27th, this presentation focused around substantial decline in enrollment and the financial review of the last 10 years within the district. Tonight's not necessarily to rehash that. Again, those presentations are out on the website. We'll go to the next slide. We did have during the October 27th meeting, there was at the elementary level three scenarios, at the middle school three scenarios, and at the high school three scenarios. So, if we go to the next one, since October, what's some what's a couple things we can rule out at this point through our conversations? The K2 building, the 3-5 restructuring that we had
081basically proposed as a scenario, we've ruled that out as an option at this point in time. We also had an option of bringing fifth grade back to the middle school. Would there be benefits to doing that? And we've also ruled that out as an option. So, if we move into the 26-27 budget assumptions. All right, just going through some things here. Local revenue relatively flat to 1% increase. When we look at that, we have there's no assumption that there's a major business moving in. There's no assumption that there's a major employer. There's any type of commercial items going that'll be coming to the district. We do know that there's a tax appeal currently by a major employer that will affect the district one way or another. And so, local revenue is one of the assumptions
082that were in our budget. Go ahead, next. State revenue We're going to get into some numbers on throughout this presentation. One of the assumptions is the same increase that we received this year is in these numbers. And when I get there, I'll talk more about that whether that's necessarily a great idea or not. And I'll touch about that in a few minutes. On to the federal revenue, no assumption of any increases. Next slide, health insurance. One of the things we do have now in our current arrangement that we're in is that we now have a maximum not to exceed number. And so we will not have our 26-27 renewal rate till sometime around April 1st is when we're anticipating that. So, estimated right now 5.1 million based off our numbers. Next, another assumption. Transportation, 3.25
083increase percent increase. That's already in a contract that was for several years, five years. One of the main players in that agreement. Next, utilities, 2.25% increase. In 20 Next slide, 26-27 establishes a yearly line item for capital expenditures. So, we have a couple things going on. We have a fund balance we need to grow. You say, "Well, why do you need a fund balance?" One of those things are just like in your personal finances. I can have several bills hit my monthly say at different times in a month. And depending on when your pay comes in you at the end of the month it'll all even out, but at certain times you need more cash flow than than maybe what your income is. And so, that fund balance you can think of it we go
084say in the summertime. We're going to go When's our last in May, June we get our last subsidy payment? End of May. End of May. We go till when till we get our next one? End of August. All right. So, we got to carry from May till August everyone's pay, all of our bills. And so, that we have to prepare for that. And a lot a lot of basically the main avenue to do that is to have [clears throat] a healthy fund balance that can carry you in those times. Now, if we throw in when the budget is not approved July 1, that as of course we found out this year that throws even more stress into that situation. So, that's fund balance. This is capital expenditures. So, when we look at our parking lots,
085when we look at our buildings, when we look at our athletic field. Let's talk athletic field a second. We know that that field's only going to last us on paper roughly 10 tennis years. And so, to resurface that athletic field, it's going to be in that 800,000 to a million dollar range. So, basic math would say that 80 to 100,000 a year we should be putting back. To my to my knowledge it's actual fact, we have not put back any money to to redo that athletic field. And so, we're already Help me out, Dr. Reese, what year was that? 2018-19? That quote, yes. So, like we're seven We're going into seven, eight years into it. We should have 600, 800,000 dollars put back for that. We have zero. All right? When we think of our
086different buildings, our middle school in general was in good condition. It had its renovations not too long ago. We look at Felsburg Elementary excellent school, very nice maintained building. But when we look at the heating, the different HVAC devices that are on the roof at PE, their life cycle is 20 to 25 years. That building was created, built in what year? '04? '04. So, where how many years now for that? And that's our newest, best building. We have no money put back to recycle that HVAC out. So, then you start to look at our high school and OME. We know OME is going to need a roof. We know OME needs more than a roof. That's just a starting point. We know the high school could use a refresh. And so, right now we have
087we have very little to no money put back, no long-term plan to to address those issues. And so, this year's budget basically what Mr. Martin and I are saying, we need a line item as a starting point as a half million dollars going forward that would go into capital expenses. So, that is one item that is in there. Next one. So, for 25-26, our current school year, our personnel decisions. Since we approved our budget and just as the way of an organization functions, you have people coming, you have people going. And so, we had a maintenance position we have we did not fill. We had a science teacher position that we filled internally. In other words, we didn't hire anyone in to fill that. An elementary teacher position we filled internally by shifting some people
088around, did not hire a person in. A crossing guard position we did not fill. We have a head cook position that went from a full-time position down to a a part-time. End result was the hiring of a of a part-time position. We had a we contracted our OT. And we've hired a PE employee, which you say, "Well, how's the savings there?" There's significant savings to have an our own individual as opposed to an outside vendor paying those wages plus then doing markup so that they make profit off of that. So, those are all decisions that we've been able to make that have helped in our overall budget assumptions. So, what's that get us to the next page here? What does our 26-27 budget data reveal? Couple things with an asterisk. Budget components are constantly updated.
089And I just want to preface that and Tom does every time I talk to him, which is daily. These we're constantly getting data in that we're looking at our monthly data from there. Thank you, sir. That um that is constantly changing. So, here's our Here's where we're at in January in 2026. Current 26-27 budget deficit is 1.189 million dollar deficit. Um If I touch on that, just so you know, we're putting 500,000 dollars into capital expenditures. So, that's a new line item that's part of this deficit if you want to say it that way. Our health care that we have now >> [clears throat] >> negotia- or not negotiated, but we entered into it gives us a price of what they expect it to come in at, and then it gives it a price of
090not to exceed. And so when we look at that, excuse me. You say, "Well, that's a pretty good thing. We have two different things. We have a we have a a number that we're expecting, and we're having a not to exceed." The challenge for us tonight is that difference is 800, 900,000 dollars. So, there's a big sway in there. So, if you take that 8 or 900 and you take our 500,000 cap reserve that's a pretty good um pretty good amount of money that we have factored in not counting any of the other things that are in our budget. And so, as we go along here to to scenario one. So, if we look at that 1.1 million dollar deficit if we go status quo. All right. So, we operate a budget deficit of 1.189.
091We look at our 24-25 audited financials that 1.9 million dollar fund balance that is not an option for us. In other words, we have to take action one way or the other. Status quo is not an option. Now, that 1.9 million that we have in fund balance for audited books, couple things to take take into consideration. This year we are expecting, even though we had budgeted a $400 $400 3 to $400,000 deficit, by not filling these positions as they came open, and to our benefit, they happened early in the school year. It wasn't later at the end of the school year. We are expecting a surplus out of this year. So, the one couple things take in mind and consideration. The 1.9 we're going to have some savings this year because we had budgeted those
092positions, the maintenance and the different teaching positions. Um and we did just have a presentation for PFM, which I mentioned that that those numbers that are in the blue column by the end of next year will go into the fund balance. So, in theory, that 1.9 should be roughly eight or $900,000 more on its own due to the action we took tonight with PFM. So, there's some movement there. In theory, we should have a surplus coming out of this year based on not filling positions. So, the 1.9 is important to look at, but in general, it should grow this time next year. We should be looking at a should be looking at a better situation. We won't be out of the woods, though. So, let's go to the next scenario one. If we did um
093status quo, and I finally reached the age that I need readers. Um as you can take a look, you begin to see that the projections, and I highlighted the 27, so it goes from 25 26 26 27 27 28, so basically five years out to 2029 2930 2930. Um that the 27 28 year, if you go down through, you see the surplus deficit of 1.9 projected, and the ending result is 340,000. That would be the assumption, given our base our numbers today, of would you make it through the 27 28 school year. Now, in theory, this is the only one that we're going to have five scenarios tonight. In theory, this would be the only one that will make a difference on the year, but that savings for PFM would technically be added here. So,
094that 340 um deficit, you would add that 800 and some thousand to it, which would get you to the next year. But, bottom line is 28 um between 27 28 28 29, and essentially our district would be out of money. If we go to scenario two, if we would do a tax increase of 4%, and we would operate with a budget deficit of 714,000. The asterisk there basically says we can't tax our way out of a budget deficit. So, if you go to the next one, Chad, you can see that that gets us to year 28 29, and you can see, once you get down that column, a 2.2 deficit and our fund balance ending fund balance of that 1.6 million. So, 27 28, in theory, based on today's numbers, things are constantly changing, you
095would have about two years till you were bankrupt. And without saying tonight, bank is not an option. Even getting close to it is not an option. >> [clears throat] >> And so, we go to scenario three. We are currently working to provide incentives for employees to voluntary re- re- voluntarily retire or resign. We picked a number of five. And if we're able to do that, we would still and on average, cuz it would depend on which employees and what health care and what not the benefits they would take, we would operate with a budget deficit of 639,000. In other words, we would be short 639,000. Um this cannot be our only option as we would still have a budget deficit. So, you go to the next slide there, Chad. Still puts you in that 28
09629 time frame, and it isn't that we make it through the 28 29 year, it's that we're bankrupt essentially as a district in the 28 29 school year. So, essentially you would have two years uh if that was the only thing you would do until you the district would be considered bankrupt. So, we go to scenario four. This one would be a 4 and 1/2% tax increase plus incentives for employees. We ran a number of six to voluntary retire or resign. This would be the first scenario, and there's a million ways you can do this, but we would operate at a surplus of 15,000. In other words, we can pay our bills um throughout this year without a deficit. If you go to the next slide, Chad, even with that, that cur- What's that? One
097more? Nope, you're good. You're good. Something to think about, though, is even though next year, 26 27, would be at a small surplus, 15,000 on a $40 million budget is not a whole lot. Um something to think about, though, if you did nothing else, if we took no other action, we still wouldn't make it through the 29 30 year. So, we would essentially, with no other changes and if this all held true the way we're planning it, 28 29, or in three years, we would be out of money. So, that's scenario four. Scenario five. This gets back to, well, what if you can't have what if incentives don't work? In other words, mathematically, it just doesn't work for, you know, each individual uh person, and they just they just can't do it. As much as
098they would like to retire or resign and and go to a different district, it's just not not going to work. At that point, and we didn't do a tax increase, that would be furloughing approximately 12 positions. And again, it depends on which position it is um and so forth. That would result, though, in a budget surplus of, say, 38,000 for the 26 27 school year. You say, all right, well, what's that do for the long-term health of the district? All right, again, we are out of money if that's the only thing we do. So, um if that's the only thing we do, we can't make it through the 29 30 school years the way we currently see our numbers. So, you would have about three years um essentially until that would happen. I think, looking
099at these scenarios, when we begin to look at A, the 26 27 school year, but also, when we start to look at the long-term health, the 26 27 uh budget, just like this year's budget, we didn't fill positions last year. Um there's positions we didn't fill in the current year. This is only step one of a multi-year multi-year plan to get us to where we need to be uh as a fiscally healthy school district. It can't be done in one year. And so, if we look at our recap since October, projecting preliminary deficit budget of 1.1 for the 26 27 school year, um we eliminated those two options that were presented in October, the K235 and then the fifth grade to the middle school. Uh the plan is to continue to not fill positions that
100come open. Uh we will know more in the near future regarding staff who have chosen to retire or resign voluntarily. We're hoping that that's a relatively quick turnaround here >> as there's some deadlines just in a >> in a normal year that are coming normal year that are coming up. >> Um the status of our budget will continue to become clearer as we move closer to April. And again, we won't know our renewal for our insurance until roughly around April 1st. Um and then we'll continue to provide updates at our future board meetings as Mr. Martin alluded to with the revenues being next and then the expenditures and then a preliminary budget for approval in April. That being the case, and part of the conversations that Mr. Martin and I have had, we need some
101guidance as we're now in January, we're now in 2026. When we think about what do taxes look like, of even entertaining or what does cutting positions look like, what like we're going to need help input from the board because it'll help us start to move in directions that we know um we don't have the final answer, but we have guidance on which direction to go. Out of those scenarios one through five, are there can you give us input tonight as a board forward? You have one question. Yep. Um when it comes to going bankrupt, let's say if we get to that point, and we're discussing where we're right now, we have scenarios. Let's say we do go bankrupt. What does that look like within the district whenever the state department would come in? So, my
102understanding would be state's going to come in, and where right now we have local control of decisions and how we want to do things, the state's going to come in and it's going to be totally financial in the way they view everything. So, >> it's not going to be on relationships, >> relationships. >> it's not going to be on >> uh >> all the touchy-feely good things. It is going to be pure business if that would happen. And business and the numbers will drive those decisions. So, kind of based off the laying the scenarios that we're laying out here, this is going to be a well-thought-out. We're going to look locally and what would be best for the district, the students, everything kind of moving forward with whereas if you know, we don't make any
103types of decisions, someone's going to come in and it doesn't matter. Then we might as well not even be here taking credit. Correct. They'll put an officer controller in. They'll take over. And that could look and what we look like today versus after that can be vastly, vastly different. It can and I'll just say this, it is very uncommon for that to happen. Like I can only think of two off the top of my head of last couple years that I know of that that's happened and they've gone into receivership and um And that's And that's why we're having these conversations now because we're tasked with and that's again some of the decisions that have been made even in this last budget, which were good decisions. And And now we're starting to see the fruit
104of that try to build back that fund balance. But again, if we just stay status quo, you see where it takes you. So, everything we kind of have building for us. >> Yep. We look say Let's just say 5 years. We get to this point where we're healthy in 5 years. Are we going to be in a spot to continue that health or do you think we're going to be kind of Philipsburg-Osceola and kind of go through this up and down where we might find ourselves in this say 10 years. We get healthy and we go downhill kind of like the last 20 or so. So, my last 2 years is actually I think it's this week maybe it's been 2 years. So, um I think without vision and without a plan of where we
105want to get to, just like they said tonight with the audit, you want to get some sort of agreement and if here's what you want fund balance wise, um I think it'll take I'll answer two ways. One is I think our plan will focusing on fund balance, focusing on making the cuts when they come open, those types of things will uh we will reap the the benefits of those decisions. But it's also going to take the board of uh and right now it's the board of eight uh plus myself. It's going to take an actively engaged set of individuals who are focused on the financial health in addition to all the other things that make us a school district. But they're going to need to both be short-term and long-term or you're going to repeat
106the the last 20 years where it's been more of a roller coaster. Probably in 2000 around 2000 we were healthy bad decisions were made. >> [clears throat] >> Poor decisions were made. Roughly 2006. All right. When you dropped the whole company found out we were $6 million in the hole. And that's when all the furloughs happened. Um Then we got to be healthy again. The way I This is my perspective. We got to be healthy again and then we had some more questionable decisions on how we spent our reserve. And then dropped us back in the hole. And now we're trying to climb back out. So, we have gone like this. And I think we can maintain good health financially unless we make poor decisions and spend money on something we don't need. I mean,
107millions of dollars something we don't need. Kind of with kind of the way you have things going, will we going to start addressing infrastructure, you know, PE, you know, the HVAC system. Will we going to touch on some of those things before they become a disaster? Is that kind of in the in the kind of that frame of mind? We will have to in the next several years, but just to put it out to to everyone, the position we're in right now is we're we're looking at the next 1 to 2 years of what that looks like. We need we need to grow that out to the three or five. So, we need to do it. Where it's so critical where we're at right now with our budget that it it is very hard to
108look out more than that couple years. This year's budget will determine because it'll set us on the path for success. It'll also it could also put us on a you know, if we don't come together with some common goals and some some actionable items, um it's it's it's going to continue that bleak outlook. And if just I guess just for clarity's sake, just so everyone maybe understands that's listening, we are a bad roof away from you know, a roof replacement from being in a dire financial situation. You know, we also have the projections, but you know, should we have a roof in the high school that needs replaced, absolutely then we're in not going to have a lot of leftover money. That's correct. Correct. So, let's talk about the the real quick. One of the
109things we did um is we have 3 years to spend. Yes, so right now, like I said, we've taken out part of what we did earlier again with the general obligation note bond for 2025 that we did. So, we took out 1.4 million there. We were to use 300,000 of that because we were able to look back on the expenditures of what they covered there for that the high school roof. So, if you remember, we got the facility improvement grant and we got I can't remember how many dollars that we got for that, but our match of that was about $300,000. So, we were able to use a portion of that. So, we have 1.1 million right now. That's not part of this balance here. Okay, not part of the 1.9 that's set aside for
110capital projects. So, in the past, like I said, every time we had a capital project, anything that needed to be done, we had to transfer funds from the general fund. So, if you look at these projections, we don't have those funds being transferred out because we have money sitting in there. So, again, that was a good move to kind of get that in place. And again, it's it's a layers of different things you're trying to focus in on. Okay, what are the main goals right now? So, just trying to focus in on Okay, we're trying to re- rebuild fund balance right now and try to get those things and try to again, like they said in there, get to budget surpluses. And I would I would say too is so, that 1.1 that's sitting there,
111we know O and M needs a roof like yesterday. Right. So, it's not like we're looking for things of what what we're trying to do is extend out as long as possible. Right. >> Um Right. >> But that's one example right there that that's pretty much gone. Well, and and a big piece and you heard that in there, a big piece of this that will become as to moving forward is again the health insurance. Okay. So, part of again the projected surplus for this year, a lot of the things by not filling positions, but again, where we're performing right now where they're expecting us to be. And again, we'll see where these proposals come in at, but that performance there when we start to have right now we're 6 months into it. I'm a 7
112months worth of claim data. A year from now when we have a year and a half, we'll have a better understanding of. So, again, with these projections, we're we're looking at the max projection right now and multiplying that out with the cost with an increase of 7% each year. So, when you have a $900,000 difference, that clarity of but right now we have to budget on like what's the worst-case scenario. Like what's the worst you know, and then go from there, but we'll have a better feel for that. And that that's a big piece of this, the health insurance. >> And I think it's worth noting too, our uh max cost is still with savings compared to the the consortium we just left. Yes. Now, if you raise to say we have to raise taxes
1134.5%, how much does that increase a home a homeowner's tax? So, each Well, um again, it'll depend on, like I said, with what we see with the homestead-farmstead. But last year when we did the increase that we did last year and everything, [snorts] depending on if it was in center or Clearfield, the average person may have been anywhere from like a $50 to $70 range on the higher end and the lower end like you can Clearfield 25 to 50. So, um basically again, if you look at your it it depends on your tax bill because again, you know, if you're paying $5,000 in taxes and you take 4% of that, it's going to be 200 bucks. But if you're paying 2,000 and 4%, it's 80. But less those homestead-farmstead like the last couple years with
114the homestead-farmstead increase, like that's going up by like 50 to 60 bucks a person. So, it just depends on those different things. But again, that's the piece of it when you don't when there's no move there and everything, it's a compounding effect. I think one of the first thing you need to do is find out exactly how many people are willing to take the incentive. Right. And make [snorts] it lucrative enough to but not that's not going to Right. Right. Worth this. Right. [snorts] That See how many you actually get. Maybe you'll get more than five. Maybe you'll get 10. Right. Right. And in theory looking at that safe scenario four, which was both you could adjust taxes accordingly to still get to the budget So, instead of five or six, we get we get
115eight or 10. That would that percentage of tax increase would come down needed to get to a budget neutral. And then once we get all the proposals in for health insurance that will give us a clearer direction to go as far as being able again Each month and I know I say that but like as you get more data and we have more things going on cuz there's different things happening in everybody's different world and everything you know laying it all stuff with the special ed like there's a lot of things that can move and change and then we can pretty [clears throat] much from that point know okay this is the direction that we're going. I I guess even for direction for us though >> [snorts] >> can we get some sort of agreement
116that isn't all taxes all cuts a combination cuz that is going to help us and I'll be honest with you all 280 employees in the district it's also going to have an impact on on everyone of which direction um we're looking to go. I I don't see how you cannot go. I think it has to be a combination taxes and either the incentives or hopefully not furloughs but Am I right to say we need we need to get six roughly six or more people positions dissolved whether it's through incentive or unfortunately have to go furlough plus your tax increase to get on the right path. Relative to your tax increase yes. Right. If we get and like I say maybe it's a 3%. But we can't do one or the other. It just has to
117be a combination. >> We do no taxes we have to furlough. And then >> Well as we say is in the scenarios tonight doing cuts only we still run a deficit doing taxes only we run a deficit. It's like a band-aid. And we where we are with one balance we don't have we cannot run deficits. So scenarios four and five have similar results. But that gets us through to 2930 what happens after that? Are we going to be having the same conversation next year where I think you're going to have more I think you're going to have more clarity as we start to get like I said we get in we get a renewal in for what that's going to be. That's a big driver right there as far as when we're trying to project
118out and everything. So if we're able to have a little bit more clarity of where we're at but again trying to focus on what we have to do in the immediate future right now like looking at okay where are we planning on finishing for 2526 where we're projecting for that okay we show that in there. What are we looking at for 2627 to try to get to a budget and surplus and then from there again as we go in this process there's a lot of moving parts of things that can happen. So then once we get to the part of where we're doing 2728 budget we're going to have more answers you know even when we get to that point. But again right now we're just trying to project out and say yeah that'll get
119you there but if you don't continue to keep doing different things and everything and that's where we're looking at. It's a multi-faceted approach. And I've done this before like I said when I was at the county we were able to do it. So it's able to be done. It's just it just takes like you said you saying about what how do you stay where you're at and everything. That's where again having a policy to say this is where this is going to be our goal and this is going to be our direction we don't want to go below this and everything and then do it. And then that's how you put it in place. But back even to Amber's So I don't anticipate us coming up with a 2627 budget and then not doing anything
120or talking about it for 2 years and then saying hey we're going to run out of money next year. Like I do foresee this being we're going to have to get comfortable with this conversation cuz there's it's going to take several years to to to climb out of it. So next year this time we'll still be talking about it. So realistically we might be next year talking about combination scenario four and five. Potentially hopefully in a better situation. We'll see if our decisions reap benefits a year from now and adjust accordingly but we will be having this conversation I do believe ongoing. Hopefully it's not as bad next year but we are hopeful. If if we do the right things now it should get a little better each year. It's not going to go away
121overnight. Correct. Thoughts on the Everybody have an idea which direction education has to have to do both for your more of a scenario for Any of you guys reviewed everything with four and five? Like would you be able to give us like exact type answer if you went to review if you were on the side of between the two like let's say we went with scenario five what would the tax increase look like? Tax increase on five is zero. Okay. But to get to a budget neutral it would take approximately 12 positions. Okay. So And then you get to the point there when does it start becoming a problem for the administration with not as many teachers and then start hurting the education for the students. I mean you don't want to run it down
122so far that the students are going to suffer. 12 would test that theory pretty quickly. But and I'll say this though it I emailed some information over the weekend we have made 9 10 11 positional cuts or decisions that we are still functioning. Might not be the way we were and maybe the same at ease. I don't know how many more of those we can >> Right but if there are more and more then there's only so much I would need you to cut off. Yes. So that's why I think the combination of taxes and incentives or hopefully not furloughs but probably be the way to go. >> [snorts] >> But that is my opinion. That's what we're after tonight. I would need more you know how does how would these types of things affect
123classroom size? Starting point would be final answer starting point there's a version in there that takes three from the elementary three from the middle school and six from the high school. So like that That would that scenario still ain't still ain't That would be my [snorts] starting point for those 12. Not saying final answer but that would be And realistically that could be done on paper wouldn't have any true negative effects. Or I won't say true negative it's can it be done? I'm not going to say it's going to be done better or done without headaches that we aren't thinking of right now. Like we think we can go in these certain directions and October we were there. I I'm not I'm not about to say we won't feel it. We'll feel it but at
124the end of the day we need a budget neutral. Budget to be at a neutral neutral or to positive. I don't think there will be a real adverse effects on the elementary. I looked at the elementary numbers and principals have looked at that. So the elementary I think you're pretty pretty safe. You have a secondary you might have less offered. If you got one department that has six or seven you get away with five or some couple of them probably have to be disappeared. So we have to downsize everything if you downsize staff. I think um I think the one thing that we didn't get when we had this a lot of the public opinion was you know opinions on things moving forward it was more what can we do about the football field there
125was obviously nothing we can do there and people getting raises there's nothing we can do you know looking back on things but we haven't gone forward on opinions on things what this would look like what people would they do they want to pay more taxes do we want to that wasn't discussed much and I think that would probably be um if people do have opinions on that that aren't sitting in this room would be very important to hear that now and give their opinions now rather than after we make decisions and then have the opportunity to complain and look in retrospect. Yeah I'm hopeful as myself I'm hopeful we get enough done. I had a furlough a whole bunch of people years ago and I don't wish to disturb anybody's livelihood. I think one thing
126[snorts] too we have to make point that that there were decisions made money spent previously that we unfortunately have to >> [snorts] >> um have to clean up. And I think you know obviously we're going to be the bad guys in the room but there were decisions made previously and unfortunately we're having to face the consequences whatever decisions We did not create it but we have to fix it. I think it's important for people to understand that this is well before us me and James are in 26 and 26. The the public that I have talked to very receptive once you explain why we are where we are. Uh still doesn't fixes the problem. Going around any other feedback as far as force, Amber, your thoughts? I mean, scenario four is appealing because you know,
127we're not forcing people out. I know that taxpayers are not going to love the tax increase, but you know, I really don't like scenario five. Shawna, what are you thinking? I think I kind of agree with Ed. So what makes you >> I sort of agree with Alex, too, that I'd like to get input if on what people think. Because I don't feel that we mentioned taxes when we had that other meeting, you know what I mean? There's a lot of what happened previously and people complaining about the football field, football field, football field. I saw so-and-so getting a raise. Really, that was some of those Some of the things that were the main topics were drops in the bucket compared to >> [clears throat] >> what we're looking at right now. All right, ladies,
128month in. Sydney, what are you thinking? Well, um I mean, the idea of seeing who's willing to take that incentive cuz I mean, you're right, like you could offer that incentive of that early retirement now and you could have way more people jump on that than you're expecting. Like you're expecting five or six, you could have more people. >> I'm hopeful. I'm not expecting, hopeful. Um And so, you have to remember, it's not only a retirement incentive. It's an incentive to either retire or leave the district. So you could get more than you think. Yeah. And I mean, someone that lives in the district but commutes to a different school, you know, that's that would be some like as a teacher myself, that would be something that wouldn't scare me, you know? >> [snorts] >>
129And so, what I've said just in preliminary conversations has to be a position you don't fill. So if I have to fill it and we can't manage and move, then it it's it's not what we're looking for. Like it's targeted to a position, however we reorganize, that we don't fill. What are thoughts on any of those options? I like scenario four. Scenario five is just the thought of like forcing 12 people to to go is scary. You know. What do you think, Haley? I I was just going to ask how optimistic are you that we would have six people at a position where they want to voluntarily retire or resign versus we Is there a possibility that we might be looking at scenario four and five, a combination this year? So, the answer is yes.
130So, a couple things. When we were running that four and four and a half percent tax increase, that's a hefty tax increase. That is not just a minor tax increase. Like it will be felt. Um So, we looked at what positions would it be mathematically, just running a scenario to get us to a budget relatively budget neutral. That's where we come up with the five and six. So, again, we will know with talking with the union may end zero. But I do know if the number is zero, we can't tax our way out of it. So, it will have to go to a tax increase and furlough situation cuz one way or another, we can't get to budget neutral just on taxes and we're saying we don't like just the furlough route. So, whether that
131becomes voluntary or involuntary, that's that's what we're looking at. One way or another to get to budget neutral. We It's going to happen. It's just a matter of can we make it in a positive manner or a not so positive? Okay, Ed, any any feedback in I agree with like the community knowing about tax increases. I mean, I don't want that, but I definitely don't want the the bottom furlowing, but I definitely think >> [snorts] >> the community is concerned about lack of communication and you know, taxpayers, older people that don't have They don't have raises like us that have, you know, steady [snorts] jobs and incomes and I think that's a a big increase for those people living on social security and you know, so I think it would be fair to let the
132community What kind of date do you have for people that are looking So, we'll be talking with the union this week. We're hoping for a couple week turnaround. We hope to have information here by our next February meeting. Um or sooner, preferably a lot sooner. But um the So, that gives you a little bit of an idea, but we don't have the final terms of when worked out. But in general, if there's some benefits in the CBA uh for retirement that are March 1st, just to like we're almost in February. So, March 1st anyways for people who might be retiring regardless. Um but we'll be looking at uh from the incentives during the next couple of weeks. Do you have an idea if any of the are already considering it anyway? Not in public session.
133In exact session? Do you have We have no We have no one that's officially filed with us. Yeah. Might have some here to say. >> do When do they have to? Like is there a certain date that they have to? I think there's some benefits, isn't it March 1st? >> March 1st. Okay. So, regardless if it was a normal year without any incentives or anything like that we're trying to talk, uh usually it would be March 1st. Okay. Cuz I think there's always been a couple that might come in right after like the February meeting here. You're aware of them a little bit, but then they're kind of aren't 100% sure or so. Yeah. I've heard hearsay, too, from some people that You know, that I heard Some of it's from my kids. >> [laughter]
134>> There's probably a few people considering it, but the ones that wasn't in the ink. We which we'll hopefully know here. Um I don't know what from just a board standpoint from that public input, is that something that you want your constituents to reach out to you with? How how do you want to gauge that? I guess is the question. Could be a clerk. We want all the emails. Could be cut back into the website. We could do it We could do it multiple ways. I didn't know what do you prefer What's your preference? >> I'm going to second that because otherwise people would just get phone calls after phone calls for the board. Just an idea, a central location. But I I wouldn't accept any incentives, honestly. So, if we put out some sort
135of form on the website to get some sort of feedback, what area you're from, maybe your name, address, that type of thing. It can't be Again, anonymous doesn't help anyone. Anonymous could be the same person 20 times. But what's our thoughts about that? Maybe we could do here. I mean, I know I have a pretty good idea people that I guess I represent feel a certain way about tax rate tax increases. >> [snorts] >> They have what they would be looking at versus educationally. I don't know what they >> [snorts] >> would think. That's a big one. Good idea. Not applied about how I felt about that either, so. All right. So, let us do a little thinking here uh between Tom and myself and some others and um we will come up with something
136for feedback and get that out. Now, with our parents wearing different things like that, we are able, I think, to get communication out pretty effectively um from different arenas, so. Okay. All right. I appreciate the feedback tonight. Anything else from the floor, the board? Motion to adjourn? Motion. Second. Back to Shawna. All in favor. I. I.