001and welcome to the September 29th, 2025 49th annual meeting and budget hearing. >> Okay, so anyway, sorry. Welcome to the annual budget meeting and budget hearing of the Northland School District. We would like to thank you for your attendance. At this meeting, citizens, eligible electors of the Northland Pine School District, make second and vote on the motions below. We have provided possible wording for motions for your consideration. Please refer to the agenda in your packet. Only certain items require a motion from the floor and those highlighted in yellow. You'll notice other items on the agenda which are simply information items requiring no motion. At this time, I would like to officially call the order the meeting to order. And you please join me in the flag of the United States of America and to the
002stands nation. item is for us to elect a chairperson. >> I will make a motion to nominate Jennifer Payne as chairperson for the meeting. >> Second. All in favor, please say I. >> Any opposed? All right. So the recording the official meetings minutes of the meeting no motion required I will please ask Mrs. Susie Block to record the minutes of your meeting. >> Thank you. The minutes of the 2024 budget hearing and annual meeting are in the sorry the copy of the minutes of the budget hearing and annual meeting held on September 30th 2024 is in the budget report booklet you received this evening and is also online in this time we will present and discuss the 2025 26 budget and tax levy and I will present or turn it over to Miss All right.
003Um so I'm going to work off of the annual meeting booklet this year outside if you didn't grab one has it up on the screen for us. Um thank you for coming. I would like to start this year is obviously special by thanking Mr. As you know, this is his last year with us um as our district administrator. Over the years, Scott and I have learned a lot about school finance together. He is an outstanding leader and an amazing role model. His constant drive to learn about all things that affect this district, it students, staff, and community members is admiraable. I would also like to thank Ashley and our staff for providing all the photos featured in this year's book. So, on page eight. That will be the treasures report. George's report is interesting. It's
004a one day snapshot of the district's financial position as of June 30th, 2025. So, the end of 2425 fiscal year. It shows all the funds in the district's bank accounts um along with the book balance. And we are in balance as of June 30th. So, that's good. The district reconciles its books monthly and the board's finance committee reviews those monthly reconcilations as well. These are important actions because they demonstrate the district is keeping accurate financial records. It's working to detect fraud and errors and is keeping an eye on cash flow. You will note the district ended the fiscal year with a bank and book balance of around 11 million whereas the fund balance on the bottom is closer to 16 million. That's because we book revenue received this office for last year's fiscal year. Next,
005um I would like to look at page 14. So you'll see the district demographics haven't changed much. The data from DPI is a little bit old, so I apologize. Um, but we are projecting enrollment to decline. As Mr. Foster stated, I think on a call I had last week, they're projecting overall state student enrollment to drop 5,000 students. So, that's a significant thing that will affect us. I point this out because you will see later how enrollment affects our budget. Each year, with the direction and support from the board, I work with our administrators to develop a budget that meets district goals, keeps the district in a financially sound position, and is fiscally responsible to the taxpayers. You will see on page 16 that the budget work is never ending. They call it cyclical job
006security for public school districts in Wisconsin must present an annual budget to their communities sometime between May 15th and October 31st. We choose to present our original budget at this meeting even though the fiscal year began weeks ago on July 1st. We can do this because the board approved a preliminary budget in June for initial use whereas you see and can approve a more precise budget today. The district's budget may be amended at any time, but those amendments must be published via a class one notice in the paper and approved by a twothirds vote of the school board. One of the most important steps in budget development is determining revenue. Northland Pines receives over 70% of its revenue from his taxpayers due to the way the state revenue limit formula works. This formula is shown
007on pages 18 and 19. It's a fun colorcoded sheet, but I only have to worry about the numbers in the pink boxes. Um, DPI and previous year numbers fall into the rest. So each district estimates and adjusts those numbers in the pink boxes um throughout the summer and fall to develop their budget. The revenue limit formula was created to help school districts determine how much it can tax its communities for school related expenses. It was designed to equalize fiscal differences between between districts with varying property values while also keeping local rates in check. Therefore, some districts receive lots of revenue from their taxpayers like from Pines, while others receive more revenue from the state via aid or from all taxpayers. One of the key pieces of information needed in the revenueing limit is the fall
008enrollment. Fall enrollment is used to calculate a number called full-time equivalent or FTE. Page 21 has a graphic showing how FTE is calculated. I evaluate prior year and summer enrollment data to project the fall's enrollment. This year, I projected that in early September to be 1,281 students, while the FTE works out to equal 1,26. The revenue limit formula does allow districts to add FTE for summer school to help cover summer school costs. This year, Eagle Camp provided learning to students. So that is an additional seven FTEES bringing our total 2526 FTE to 1,213. Now to make this even more complicated, the current year FTE is not used to determine our revenue either. Rather, the formula uses a three-year rolling average FTE. Again, this is by design. The rolling average helps protect districts from drastic increases
009or decreases in revenue due to significant enrollment changes. So for 202526, Northland Pine School District will use a rolling average FTE of 1,262. This is also known as the current membership average shown next to the red arrow on page 21 to help determine the revenue limit. If you look at page 22, you will see the formula is allowing North Pines to ask for $1,650 per month this year totaling 14,72,300. This could be called the base revenue limit. This is the per member amount we can ask for this year. However, that number varies by district. So, for example, last year some districts were able to ask for 11,400 per member, whereas others were able to ask for 32,500. So, there's still great differences over the state. Once we estimate our base revenue limit, we must add
010or subtract specific recurring or non-recurring exemptions. Basically, just dollar amounts to that base. Northland Pines does not have any current recurring exemptions, but we do have three non-recurring exemptions shown in the middle of page 22. The current voter approved 5.6 million operational referendum, a declining enrollment exemption from the state of $361,150 and a reduction from a prior year enrollment adjustment. These exemption amounts are added to the base revenue limit for us. Next, we have to subtract aid we receive from the state via other methods. Those are explained on page 23. They are general state aid. We don't know this final amount, however, until October 15th. Uh for many districts this year, that number was very important. Uh property was reassessed in a lot of districts, bumping their general aid uh typically down. is in simple
011terms provided to districts with low property value. So maybe a district who had a low property value last year no longer does. So they're going to get less aid. Fortunately, because Pines has seen years of high property value, we've always received very little aid. So I'm projecting we will only receive 11,255 in general state aid this year. >> And that will go down 15% until it gets to zero. So next year 15% less next meeting 15% less unless the state did something radical but this one they haven't touched in years. So either in neighboring districts like Phelps has zero other districts are seeing the same decline as well. The other state aid that we have to reduce off the revenue limit is um $6,822 in exempt computer aid and $99,851 in exempt personal property tax
012that the state collects from our taxpayers separately and then gives back to us. If you look at the bottom of 23, you will see how all of these numbers come together in the formula to equal the total allowed revenue limit of 20,530,178. This number is in green there and then also in the green box on page 24. Then we need the total levies. So to get the total levy shown in the blue circle, a district would add any other levies that were allowed For us, it's just the 90,000 for our community service programs, equaling a total levy of 20,620,178 rejected for 2526. All right, enough of that. As I mentioned before, the revenue limit and corresponding levy are important because our levy accounts for 70% of the district's revenue. Without the support that we received
013from the community, preparing the North Pines budget would be a much more difficult process. Looking at pages 24 and 25, you can see the district does receive revenue from other sources. I am budgeting a 5% overall increase compared to last year's actuals due to the increase in operational referendum from 4.6 million to 5.6. and then also for new funds provided to us by the state's bianual budget. Specifically, we are going to see $420,000 more in people funding, 423,000 more increased special education aid, 164,000 in additional high cost special education aid, and about 24,300 in added mental health aid. Those are all estimates, but that's what we're anticipating. Once a solid revenue projection is established, I work to ensure that our expenditures fit into the budget in a responsible and thoughtful way. The district uses three
014to five year capital expense budgets and the varied budget model to assist with this work. Pages 27 through 29 outline the proposed expense in different ways but overall it shows a 6% increase over 2425 actuals. The areas of expense projected to increase most are special education transportation and equipment. A detailed breakdown of prior year activity as well as the 2526 proposed budget can be found on pages 30 through 38. If you flip to page 39, the 202526 levy being proposed to support this budget is 20,620,178 and the estimated mill rate is $322. The levy is increasing by 6.4% but the projected increase to our property values will reduce in the right as shown on page 40. So to recap, the board approved the preliminary budget in June. You are being asked to consider the original
015budget and corresponding lucky presented tonight. In October, after the equalized property value, general state aid, and enrollment numbers are finalized, a revised budget, and final levy, and mill rate will be presented to the board once again for approval. Thank you for your consideration. And obviously if you have any questions, >> I do want to highlight just a couple quick things and after that excellent presentation. Um, one of the numbers that 3:22 which middle when I go around do referendum presentations or when Taran and I have done our community budget here meetings or opportunities for questions. A lot of there are people in our community that really do want to know some of the devils in the details. So we've had great conversation. the vast majority open up an envelope and they want to see what
016is this cost me. So when we went around and did the referendum presentations, uh that was the number one question like what is this going to cost me? And um you know we during our right before we went to referendum, we saw a lot of um impact from um the re-evaluation of property. So we don't control that. Um you know part of the other numbers why we have to wait till the October board meeting is we don't control those numbers. Um, so what we uh we do control though are some estimates that we shared. So when when I went out and did the reference presentation after a lot of work and and numbers that we could use, but there were still estimates, we were estimating that we would see uh 349 and we're bringing forward
017322. And the reason why you might at first that's good news because taxpayers going to see not taxpayer. Let me put a big asterk there. Not every taxpayer will see a decrease, but the vast majority should from the school portion of their tax bill. But um that you say, "Well, Scott, you weren't accurate." It's good that you weren't accurate because we're coming out on the better side. But we we went to projected. We are very conservative. We want to be honest and open with our community. We projected a 2% increase in property value and we saw again around 10%. It was on the front page of the paper. We're going to wait for that final number and every township is a little different. That's an average of all of our townships, but that is something
018to keep in mind. So, um that's really important if you I think that page 41 that shows that history. Um you can see some significant things like when the high school came off was a significant drop and then um you know, our community has supported us the referendums and more dollars. But as we said, you know, as property goes up, this building come off, hopefully you're going to see, and again, we're going to be in the bottom 10 in the whole state of Wisconsin. So, the state average is over $7. So, I think last year's state average was 709. So, but tax are still taxes. This is the um year one of the first three ref of three years of referendum dollars. So, as mentioned, we went up, but I also want to point out
019this is year one of those three. And also, as she shared on some of those numbers, um I apologize, I had the page marked. Uh the increases on what was that page you showed for expenses, slipped my finger here. Um but the referendum, the million dollars, but the rest of those were voted in state changes at the state budget. So the state budget allowed us to levy more money and also some of the funds which in a good way will help us in this budget including trans page 26. Thank you. The special ed funding aid and and high cost and also some dollars for transportation that was in the first year of the state's bannual budget. So two things that impacted this budget and the money we spent um are showing you that this are
020impacted by the referendum and the state budget. I think the question that can be asked sometimes of like will you you emphasize decline in enrollment but you will also then saying you you're spending a little more money. Well our fixed costs continue to go up our heating cooling even though um Dave and his team do a fantastic job to put us in a good spot. You've invested in solar, so that's going to buffer some of those increases. Transportation costs keep going up. Um, just, you know, food, our food services cost more to feed kids. Um, cost more for staffing and different things that we have to do to attract and retain the best staff, which our parents said that's their number one goal, attract retain the best staff. Um, yes, we can show some savings,
021but there's only certain things you can save on at some point in a school district our size. So, we're going to continue to find those opportunities, maybe find other revenues. Um, but I really want to um give kudos to the finance committee that puts work leading up into this, but really um Tara and her team in the district office, Stephen and Christine. Um, but Tara does a fantastic job. I I appreciate the kind words, but it's really been a team effort of um bringing things to you as a board. Tara on the forefront. We ask each other a lot of questions and conversation and We're always looking to put you and the taxpayers in the best spot possible. Um, and I think the budget and the proposal we brought for you tonight and then we'll
022finalize everything in October with the most accurate data. Um, but I think not only have we shared a really good budget and this isn't the norm. I just want to give Tara credit for that. I think you live in a silo sometimes you don't see what other districts do. Uh, this book is often used when I talk to people about school finance. I said, "Look at this book and it's the job ter does to explain it in good terms, but also the responsible work to put you in a spot to have a budget that can educate kids at a high level." So kudos to the team for that and also I think it foreshadowed where some direction and conversation in the coming years that has to take place as a board is talked about in
023there. But >> thank you Scott for that information. As always, I know Scott are available for questions, but thank you for the um thorough presentation and extra highlights of important numbers in the numbers and not know what they mean. Thank you. >> If anybody in the audience does have a question though, we would take it >> or appear too, but just there tonight's a night where everybody can be ask questions. with a motion. I will make a motion to approve the proposed tax levy of 20,620,178 for the 2025 2026 fiscal year budget. >> The motion has been made second. Any other discussion? All in favor, please say I. >> I. >> Any opposed? Motion carries. Next on our agenda is the school board salaries and reimbursement. I'll make a motion to approve setting the school
024board salaries from 2025 2026 at 3,600 per person annually and to approve reimbursement for school board expenses and mileage when board members travel for their professional duties. I'll second. >> All right. The motion has been made and seconded. >> Just just for clarification for everybody, this is exactly what has been same for many many years many years. So, I'm not saying different, but no, there was no increase being proposed tonight or any changes to what is current practice and has been in place for many years. I just want to make sure everybody understood that before they voted. >> All right. Any other discussion? All in favor, please say I. >> I. >> Any opposed? Motion carries. Our next motion is regarding legal action. >> I'll make a motion to approve authorizing the board to prosecute,
025defend any legal action or proceeding in which the school district has an interest. >> All right. Any other discussion? >> This this is a a few of these items tonight in this order are required oper in the agenda for this evening just for the general public as well. These are standing items that would be done at an annual meeting. So they're not unique in just to north of Pines. These are standard at annual meetings in the state of Wisconsin. I just want to make sure people understood why we're doing them. All right. All in favor, please say I. >> I. >> Any opposed? Motion carries. The next is a head start lease at River Elementary School. I make a motion to approve a lease agreement between North Pine School District and Family and Child Learning
026Centers in Northeast Wisconsin, also known as Head Start at the Eag Elementary School for 12 installments of $1,740 per month. And further to authorize the and direct the board president to sign a new lease for the 2526 school year. Second, just so people know for background information, vote. This is a freeze. Um, as you know, Head Start is one of the things that's on cons under under consideration at the federal level. Um, but you know, we're going to enter uh we want to help and work with them. Um, we do make sure that covers our costs and allows us to be fair both to our taxpayers and also get what would be normal and acceptable amount. So, I just want to let you know this is the same as it was last year. They they're
027good partners. there's other value to our students and staff by having them in our building. Um, not saying it's without any challenge, but it does provide for contact and support with our service providers and other family relationships. It gets kids orientated to the building in a positive way before they hopefully join us in 4K. So, I just want to give that background before the vote. >> Any other discussion? All in favor, please say I. Any opposed? Motion carries. >> I make a motion to authorize the board of education to establish a different date andor time for the 2026 budget hearing and annual meeting in accordance with stat 120.081 and noting that I won't be at that meeting in 30 years. the first time I will be at that meeting. >> I'll second. >> What if
028we don't? >> Then you have to have it at the date until you >> All right, the motion is on the table and is there any other discussion? If not carry any all in favor, please say I. >> And any oppos? Motion carries. Is there any other business within the powers of our April meeting at this time? Not hearing any. Um there's one more motion, but before I make that before anyone makes that motion, um I would like to acknowledge um Susie's years of service as our board of administrative assistant and the district administrative assistant for all your service and always making us look good and keeping us and legal and all of the other things and professional >> and word smithing once in a while for selfless um and also to Scott for your
029years of service as well. Um you make us look good and you work hard and you're dedicated and um I appreciate you and I know everyone else does as well. So uh that being said um I just need a motion to >> I move second. >> All right. Motion has been made and seconded. >> Um, all in favor, please say I. >> And the oppos. Thank you all for coming this evening.