001that's basically the list of your Capital assets and then long-term lease obligations you also have some um lease liabilities so that's on page 34 on page 34 you you see that your balance and your lease obligations is 144,145 47 and then you also have some long-term lease obligations for the subscri subscription based it Arrangements you have 12 12 it subscriptions and so the current portion of the long-term liability is 179,000 with $55,000 being paid off um in the next year and that's Pap for the bottom so then we're going to go on to um your psoc advance and so you have a a loan it started out at 55.2 million the current por of that loan is1 million 999,000 sorry about that and you're paying off about 800,000 a year the next on the next
002page you'll see on page 36 you see all of your debt all on the table so that's kind of just so you kind of see it all and um so your psoc Advance is there all of your bond issues are there your notes payable and your compensated appes your leases and your subscriptions now I'm going to go further down into the audit report and we're going to go to the second opinion which is on page 99 oh there's only two opinions in this report 99 is your government auditing standards opinion and there's two parts in your government auditing standards opinion the first part is the report on internal controls over financial reporting and there are no findings in the report on internal controls over financial reporting that's a good clean opinion there and then the
003second part of that opinion is on page 100 and that's reports on compliance over other matters and in this there are opinions the first is on government auditing standards and that is a clean opinion there's no findings on your government auditing standards the second part of that opinion is the uh opinion on state of New Mexico statutes and laws and there are four findings that are GNA pertain to New Mexico statut statutes and laws so we're going to get into those in just a minute the next page page 101 is the U the summary of all all of the things that were said tonight so in a couple of weeks when you're trying to get back to this and you're trying to figure out what I said this is the page that basically summarizes what
004happened and so it starts at the top and it says you have an unmodified opinion there on internal controls there are no material weaknesses no significant deficiencies and no non-compliance material to your financial statements then in your New Mexico state requirements you have three findings that are considered to be other non-compliance and one that is in other matters now we'll get into those so on page 102 the first finding has to do with internal controls of our budgetary expenditures and just justess a cave out there this is not an unusual finding this has has to do with the 1% that the county keeps of the states uh it's their admin fee and what happens with that is they come in and they tell jie basically what she can budget in that fund and so in
005the when the money comes in for the second payment and in June she can't make a bond a bar to increase the fine item for that expenditure and so it was a little short [Music] $140 the next finding is on page 103 and it is internal controls over cash and there was a little bit of adjustment um we did discuss that adjustment and why it was there and it had to do with a requirement that P had um and so we basically gave Jamie a little bit of teeth here and said you're out of balance and so she made an adjusting entry to fix that the next finding is on page one and it is reporting requirements and it had to do with a new fund that the state set up this year the state
006started subsidizing or paying in with the universal free lunch for students but they wanted their funds kept in 21100 and so a lot of districts a lot of schools did not get that put in um they in 21100 because it comes on the bottom of the USDA reimbursement and so there was a little bit of confusion and so there was $80,000 that was reported in 21,000 instead of [Music] 21100 the next finding is on page 106 and it has to do with background checks we tested a total of 15 Personnel files and of those 15 there was a background check there was not a back ground check available to be reviewed and um that we don't give a we don't give a whole lot of leeway on that because of they need [Music] to take
007care of the students then the next page on 106 is your prior year findings a summary of your prior findings and you can see that all but one of them was resolved and the current year finding um that remained was the bank reconciliation so it was taken care of and that's the end of the audit report I do want to state that it was a great privilege to work with everyone in P town there were a lot of help and we really appreciated working with the district do any of you have any questions for either of them or F okay this and this is an action item that's outside of the consent agenda so you would need to take action on it okay independently questions discussions on to approve that move we approve the 232
00824 cap 10 Municipal schools financial audit as second all in favor I okay now we'll move on um we'll start with the cash balance report and on page two of that report if you look all the way to the right on the bottom you could see our current year revenues through the end of February are 9 1 million and our current year expenditures to date are 7.7 and then our uh bank balance is 9.3 and that includes our checking account money market and then what we have available for our edtech [Music] okay the next report is the month to dat expenditures and I didn't see anything on the check listing that was out of the ordinary if anybody has any questions on those I will be glad to answer [Music] okay on the payroll fund
009totals are total payroll for the month was 68,000 uh the gross is 436,000 and then retirements retirement F and the rest of the benefits make up the rest of that [Music] difference and then on the utility report yall ask me to identify some I I'll do those class um y'all asked me to identify some of our headings on this utility report the first one that says Administration is actually the ticket booth out here at the football field electric meter there and then under this we are always uh list our trash bill and then the other one you all had a question on uh the Capen High School one is actually trailer gym and then underneath that is the middle school and that's this building here and then the high school library is the weit room
010and I changed those headings but we have them set like that in school dude and Shane has a lot of work orders tied to those so if I changed them it would mess up his [Music] reporting which one was the secondary school that's the new building oh okay yeah got you and we didn't have any of the February's bills yet so those will be in next month's okay and on the bars I had three maintenance bars and then I had a decrease bar for title four in amount of uh 8,518 and we didn't have any large donations this month anybody have any questions about consent [Music] items a motion to approve that we approve the consent agenda as presented second all in favor I I no public comment okay next is uh old business uh
011discussion regarding third party Council for the power SCH data breach incident Mr President members of the board uh this engagement agreement is designed to allow McDonald Hopkins to assist in analyzing and responding to the power school vendor incident that uh happened at captan Municipal schools as legal counsil for Capt Municipal schools uh they would evaluate our legal obligations to notify individuals or reg Regulators regarding the incident that may have resulted in disclosure of personal or health information this is a contract for legal services and an effort and an effort to explain to you both the financial aspects of the attorney client relationship and the responsibilities and expectations of both parties to the relationship if you'll recall there was a nationwide breach uh breach of data and uh and McDonald uh McDonald Hopkins is actually is
012actually an expert in the field and that's uh why they are approaching districts uh there were a couple of us that spoke to our attorneys uh when we were up at nmsba and the way Roxy explained that uh she would definitely recommend it for us to do do this and really we're treating it as it would be a basically an insurance policy in case power school was did not do the job they were supposed to do um I I'm not happy about it I know you guys aren't happy about it but but uh I think that's where we are and so I am recommending that we do approve the engagement agreement with uh McDonald Hopkins so what is the cost to us on this our ultimate cost is $7,500 the total cost is 50,000 of
013which the of which palms and Associates would cover that first that 42 425 I believe so has there been any discussion about Power School paying for all these policies that we're having to do because like I'm I'm not crazy about this I I know you're supposed to take the advice of your attorney but right not crazy I am not crazy about it either the district but at the same time I think we need to be looking at really seriously at power school and having them for over some money for this either class action lawsuit or something because that there's some potential that that's going to happen uh I I can't speak for for other school districts but I know and I know you all have spoken to some other board members about this and and
014you you probably have some opinions about it and they had some opinions about it uh I'm just I'm coming to you with uh and I think Mr hacker was actually standing there with with me when when Roxy did explain uh the purpose behind her legal opinion so are we just paying 7500 and B just paying the rest yes that's the way that's the way it's all it's been explained all of and I believe it's through well there's a there's a it's through a reimbursement I believe I believe it'll come out of ours and then we request the reimbursement and that's how they handle it from a logistical operational standpoint um but but yes it's it's a reimbursement deal down to that 7500 and will this ultimately cause our rates with Pals to goow I don't
015know that I don't know that question because we're not at fault no school district in the country is at fault specifically talking about the state and so I I don't know the answer to that question but I would I would hope it wouldn't I remember the conversation I also remember thinking that night how is anyone going prove that his power that's at fault so if somebody's identity is taken and somebody tries to take out Al or you know I mean if they steal your identity now we have to prove how it was a b responsibility um and I think for me part of me is kind of left with the feeling of right up with you this is frustrating to pay for this but I'm also really concerned on are we really paying for something
016that we can that anybody's going to be able to prove um what's our time frame on this5 well I I don't know that and I can call I can call them back I did tell them that we were going to talk about it tonight and they said that's fine so they they didn't say we miss missed the vote already but I think there is a sunset deadline that that we probably have to meet yeah I I I would like some more information about even if we need have a meeting to still causes me grief to have toay for something right problem no and Roxy was very understanding of that as well when we were meeting with her she said but uh but this is what McDonald Hopkins this is what they do I mean this
017is this is their expertise and um and really to consider it as a insurance policy if power school doesn't do their job then then we have protection and is that kind of the way you took her explanation yes think about it more I'm starting to wonder who the protection we we protecting ourselves from so to answer that question it's from We're protecting ourselves from power school not doing their job by contacting people who have been breached see we're ultimate by state law in New Mexico we're ultimately responsible to supervise that activity the way I understand it even though power schools responsible to do it the district is still is responsible to oversee and supervise and ensure that power school is doing their job with regards to this breach of him and how are we supposed
018to do that exactly without resources to be able to track this down and and that right these guys are these guys are going to do that they're gonna dig into power school and tell us when this isn't being met that's my understanding is that they are on top of it in that Circle of cents that they have the district to say like if somebody was to sue us for our liability that we did wrong or is it to protect like these students I don't think that because it's not our responsibility to go with our it department and and track all of that down it is power school's responsibility to do that what we're protecting ourselves from is if they weren't to do that and it was found that we we were trying to do it
019alone and we're not supervising that process that's is that making sense we're protecting ourselves from not from being sued for not supervising that that process not even being sued for the actual data breach that has nothing to do because it's National it's their servers and that's their it's their whole whole deal this is this is policing Power School a and the way they respond to their data breach yes sir that's a good way to explain it and I I mean if we vote no on this tonight can come back later if it has to right I mean I just don't see it I mean I don't see the need for us spending $7500 for them to babysit power school and make sure that they because this is two months old I mean this happened in
020early January yes sir right I just I don't know that you want to I don't know that I would recommend that we vote in opposition but maybe vote to postpone postpone and that's kind of in no time right although a future vote of yes would supersede any anything we do now but but I knows it as it is you have to bring it back with a different and I'm probably gonna have to I might have to do that anyway I I don't know because it is two months old I don't agree I don't think it's something we need to spend our money on honestly that's just my person to fix it to fix it and make it right and they as a parent of a kid here we finally got a letter from them I
021think last week or week before last you know offering up the credit identity monitoring or whatever they were offering everybody and so I mean that's two months too late for me but this isn't going to help us in any way I don't feel students sta okay just my two cents well if we we need to probably make a motion to whatever we're going to do with that cor I'll make a motion we postpone the yeah the legal avation agreement until more information is obtained a second second all in favor I okay next is discussion and possible action regarding proposals for the purchase of a scoreboard for Tiger Stadium Mr President members of the board we it was requested that we go and look at our options for a scoreboard uh you'll see here that there
022are two quotes two proposals one is from watchfire U that is the is actually the same company that we use for the baseball softball scoreboards and the other is [Music] from think Varsity scoreboards uh the better quote the actual better quote is the watch fire scoreboard U 21,000 so there's two options oh it's there it is so there's you got to look at the specifications because there's one that was 28 or 26 and this is the 34 with the Lo the 30 was cheaper than the 20 looks like there's a a prize for the school board and then there's some is that right yes we were sorry we were looking at the play having the play Clocks as well um without the time clock just the individual Play Clocks the play clocks are on field
023uh play clock going Each corner so it would be 21 plus additional 8 is that correct plus the additional eight I need to make sure this one is the one that's not yes oh well there's 20 so 22 so oh this is just different double face six so that's one of the yeah so there's oh this is the one yeah okay so so you'll want to see you'll want to look at page 404 404 yeah four four of four at the bottom and you will want to look at page two of four for a total of 20 $28,000 approximately okay so and disregard disregard three of four and one of four uh the picture that it's the second picture is the 30 foot [Music] board the first quot for the 26 yes yeah board and
024the two and it's the plane play clock not the one with the game time on it just the 25 it's just the yeah just [Applause] the how's the has the installation been pretty easy and no problem it took us a total of two days did it ourselves it was it was pretty easy seems like a pretty good quality product as well those are operational yes and um what fund this would come out of s sp9 or mid ly and it would be a uh contractor Source will is the the vendor the vendor for for watch fire there is sourcewell vendor we did uh we did reach out to a third vendor with no response so what's the benefit of this BL I mean we don't have one now right we don't and just in my
025experience it's it's been it's been good to have on the field for our for our coaches and quarterbacks and guys to know that you're running out of time reset that somebody in the whoever yeah you can have I've seen it where one person could handle all of it I've seen it where we've had two [Music] people it's a pretty simple deal when the when the official sets the ball and they give the signal you just start it start that play clock over it's not a real complicated task I'm good with it either way I like the scoreboard I think it it looks scking with the same style and same colors same trust style yeah and this will the 30f footer will rig up to our frame we'll we'll have to add polls to this one
026so they'll be but we're still going to do it ourselves they're giving me ER drawings on how deep the post need to go the PSI rating of the concrete that needs to go in the whole n yards and I feel confident it's something that we can handle um this summer to have it up before football season starts motion to approve that quotes going to still be good though they're dated February 13th uh I believe so yes sir the last last quotes were good for 90 days like I'll reach out to him in the morning and make sure he say expire 228 make sure yeah I'm fine with it you got to make motion we approve the purchase of scoreboard for Tiger Stadium um as for presented with the two options as discussed that work second
027all in favor I thank you next we get discussion oh just discussion of regarding the 2025 26 C Municipal schools facility Master Mr President members of the board uh I've asked Paul and Chris agular to come and visit with you all there is no action to be taken on on this facility master plan as it was sent to me by them for us to make revisions so I think this is a good opportunity uh to spend this you know this discussion and then the next couple of weeks if you have any input or or want to add anything then I can get that to get that to them and and we can hopefully have a facility master plan for you to approve in April but no later than May Mr Aga thank [Music] you members
028of the board first of all we want to just my name is Paul agular um and my brother Chris we own and operate Consolidated School support services and we were contracted with the district to uh develop a facility master plan for the capwn Municipal schools it invol it involved um visiting with um superintendent uh lee with um Mr Shepard with your principles and others and uh gave us an opportunity to evaluate every one of your buildings here in the district uh by and large uh your District buildings are in great shape your maintenance program is good um but you have some issues that we need to discuss um the um the facility master plan is a requirement oops I'm sorry I'm hitting um the facility master plan is a requirement of the public school facilities
029Authority um to be in place in order to take advantage of um well to record um your commitment to the community and the community's commitment um to the school district to U build maintain and renovate um your facilities um it's developed with a five-year scope and um and you must you have to have it in place in order to uh request request funding so that's the reason that we were uh we were asked to do the work um how are they developed um the um U well first of all I'd like to thank uh superintendent Lee um his cooperation has been more than helpful in in giving us Direction giving us ideas on um and and the reason that we're presenting this evening is to get the the information from the board we appreciate those
030board members that did fill out the survey they gave us an idea of what the board's thinking about and um and superintendent Lee uh was very helpful in conveying board desires as well as the administration's desires on on things to go I want to thank U Jamie Shepard your Chief Financial Officer for her help we requested some fairly specific uh financial information and was provided timely um I want to thank principal Huey and principal Gibson for their work um two committed principles who understand the facility and understand their strengths but also understand the weaknesses and so uh it was very helpful to uh to work with them then of course Mr Shepard um who um was the driving force behind this very helpful in getting things done um was with us during our entire visit
031and gave us some inside an inside look on on some of the issues that uh that we looked at um some of the good good things and and some of the not so good things so um we look at that um I want you to remember as you as you review this and as you come up with ideas um that it the facility master plan is a reference document uh it's designed to serve as a summary of the actions that the board has committed to and the district's committed to um but also it's as I mentioned earlier it's um to remind the community of what they've agreed to um to help accomplish and I know that passing bonds has been challenging since the building of the uh the new High School uh um that was
032kind of forced well not kind of but that was forced upon the district a design that was not sufficient uh and really does not meet the needs of your school uh and the facility master plan brings that out it's a beautiful facility it's wellmaintained it's too small classrooms are too small um some of your labs are are non-existent um and it makes it difficult to implement a good instructional program um that coupled with the use of this building for other than educational purposes instructional purposes uh makes it difficult uh as you could see uh you had trouble seating people this evening and so um the idea of perhaps a new administrative complex the idea and I'll speak to it a little bit later as well but the idea of also um thinking about a new
033athletic complex um your your athletic facilities are not in good shape um your um your powerlifting room um has a wall you know that the famous wall that's that's been uh had to be reinforced and also uh we believe that and when I say the famous wall just as little background on myself for seven years I sat on the public school Capitol out Le Council and I remember U the situation with the wall and having to reinforce it and and and all the issues with that and then following that up with a power lift powerlifting is now a competitive sport here in the State uh following that up with a facility that by by and large is sound but to hold competitions in there and to have people piling in on top of each other
034to watch uh without appropriate or adequate um restroom facilities and without adequate um exit facil exit exits in the event of a fire or something makes it a um not the best situation um to deal with and so th pardon me those are the sorts of things that we looked at as we did that and so again um you know thanks to your staff um and then remember that when you pass this it's not engraved in stone the the facility master plan can and should be modified as conditions change right um those conditions could be um different set of instructional need those conditions could be um unanticipated uh circumstances that cause material pricing to rise or a different priority because an emergency occurs so this facility master plan should be visited by your staff and
035by the board probably annually just to make sure it's still current uh and if it's not modifications can be made very easily um so that so that the the U current uh priorities are always reflected in the plan and it becomes a road mapap to what would you like to see accomplished so how do we develop it well once we capture the big picture the vision and and superintendent Lee was great and in providing that your principles did an outstanding job of conveying what their Vision was for their school um and I know I talked about the the high school um the elementary school which is a great building uh is needs a lot of help so so and those those are have been picked up um we identify the educational goals and needs um
036we assessed the the condition of all of the buildings um we developed um we call transformational Con Concepts how we can innovate and be Innovative in in the development of the plan to help you put a plan together that's achievable and then of course the document and then hopefully next month you'll approve the plan um and uh and we can we can get on down the road um so you know your vision and your your your mission um as I've read through it um the mission strikes me and I think it's a good mission statement that that the school district has developed that um the purpose of the cap and I know you know it but the purpose of the capan Municipal schools is to educate all students all other purposes are in support and
037our secondary that is a critical statement from an educational perspective and uh and something you should be proud of it talks about responsible providing atmosphere instruction those are all great but putting your instructional uh and the education of your students first and foremost with everything else secondary is I think a a wonderful statement um so important findings the district's um facilities are some of them are old some of them are new but in generally they're insufficient uh to meet most of the education current educational needs um you don't have enough room for for proper class sizes at the high school you don't have uh your heating and cooling system at the elementary school is is um although there have been upgrades and improvements and your maintenance Crews doing a great job it's difficult flooring needs
038to be changed you've got PL you've got um sinks and um other fixtures in the building that are not used and are covered over because uh there's Plumbing issues um Cummings Gym U with all due respect to the community and to the board and to the to the um to the District probably should not be used for athletic events of any size you don't have the right bathrooms in there there's some structural issues um really two two um what's the word Chris the number Plum fixture the the number of Plumbing fixtures in there is probably U not adequate for one class much less three or four or 500 people so um we need to talk a little bit about that um and so those are important um U most of the most of the buildings
039other than the new the new facility but I'm sorry would require renovation and replacement or or replacement but even the new facility you might want to be thoughtful about reallocating some classrooms depending on funding in the future and I'll talk about funding in a while and I know it's an issue um I never want to lose sight and I think as you read through the facility master plan I never want to lose sight and I mentioned it I mentioned it a number of times that the design of that building was forced upon you it was done by psfa um using value engineering um which is another word for downsizing everything and really not taking the educational program of the district into account and so the fact that you're forced to hire more teachers because your
040class sizes can't be of an appropriate size in in the in the high school um so you have to have additional classrooms here teaching the same U the same subjects by the way as a personal note I I was a teacher and a principal very impressed with your students this evening they did a great job um and my um my um congratulations and condolences to the one teacher who um teaches both high school and middle school you know I can I can I feel her pain so um and but she was a good sport when they asked what they mentioned what they didn't like about their subject so that's pretty good um and then a few buildings that are not destined for replacement again which is the big building or um um trailer jym um
041will still need some renewal and renovation uh to support U the instructional activities of the of the students so we we um um sent to the district and they they distributed to to folks board staff and Community uh surveys um usually surveys come back very School Centric depending on who the the person is whether it's a parent whether it's a teacher um most folks like to worry about their own school um they don't think globally about the district I was surprised the the surveys came back that were really thoughtful about what the district needed and I know it's on one site but still there are different priorities that folks have and so um construction of a new competition gym um was was came out a lot um replacing or renovating the district cafeteria and the
042kitchen uh came out a lot and then along with interviews the idea of perhaps using that space for uh a special ed uh transition facility um changing rooms and being able to have some life skills in the cafeteria it could mean a repurpose of that if we figured out um how to do a cafeteria and Kitchen in a different location um upgrading and expanding the boag facility um there's a lot that needs to be done up there um we visited with your vag folks and visited a couple of classes and they're doing a great job not a lot of space u to work um one of the things that I hear from many rural communities particular ranching communities is that uh they'd like to have uh their kids understand and be able to to Butcher
043and process animals uh you have a great kitchen up a great facility up there that's sitting vacant that needs to be renovated so things like that we took into consideration um security upgrades to the school buildings and to the site I think is an important component um and then renovation of multiple Building Systems some are already being done H some HVAC upgrades security vestule bathrooms and cumins gym are non-existent in my view and those either need to be added or a new facility thought about uh roof replacement particularly at the um Elementary School um needs to be looked at pretty pretty significant and flooring replacement at the elementary school uh really needs to be looked at plus the windows around that Atrium area are rusting and and really need to be replaced so um a
044lot of work at the elementary school that needs to be done um the idea of maybe constructing a new Fieldhouse was one of the survey it items and then of course renovating the band so these were the the big the big components that came out of the surveys very thoughtful and uh and gave us a lot of a lot of things to think about um both of your buildings so in the state of New Mexico facilities are ranked U their condition is ranked from one to about um 800 50 or something like that um right now the elementary school is ranked 144 and the high school middle school is ranked at 162 why is this important generally psfa and psoc will accept applications for large scale projects if you're in the top 100 but more
045importantly if you're in the top 300 you are eligible to apply for um for um um systems based Awards um systems being all those components that make up a building Foundation walls insulation heating and cooling electrical plumbing and all those sorts of things a lot of the work that could be done that needs to be done could be done through systems Awards now I'm going to stop my presentation as far as the PowerPoint goes and and make a comment um the capy toown Municipal schools were forced to take a loan from from the state to build a building that they didn't want to demonstr not that they didn't want to build they didn't build a sufficient building and then were're forced to knock down a high school that probably the community wanted to hold on
046to for for many reasons um this loan is a thorn in your side it's costing you $800,000 a year um and um pscc or psfa isn't really willing to move forward until that loan is paid off that's the bureaucratic piece I've talked with uh with superintendent Lee um um as I mentioned I used to sit on the board I can't promise anything but I sat on the psoc and I we're I'm having I didn't tell you this earlier I still don't have an appointment with LFC but I do have an appointment with L LEC who is a voting member of the board for next week so I'm going to approach them with the idea that they should since we're since the state is full full of money as well as being full of other things
047um um the uh the um the idea that now they're offering waivers to small school districts that don't have uh the ability to raise sufficient money for this for the local match um it's my view that they should convert this loan the remainder of this loan to a grant um and just wipe it off your books just call it a day wipe it off your books and allow you and your community to to start thinking about passing a bond U which they've un been unwilling to as you know since about 2016 since this mess started um and then get you back in the queue for State funding on an any number of these projects and so um I mentioned to to superintendent Lee that I was going to try and get hold of the LFC
048sessions on they're not really interested in talking to me at this moment but I do have a meeting with the LEC and I have spoken with the PED representative and he seemed um open to the idea so if we can figure out a way to get uh you know five votes uh we might be able to get this thing turned around so that's something that that we're gonna we're going to continue but because you're in that 144 and 162 range um it does open up some opportunities um so part of what we looked at was demographic information um over the last 10 years um and projecting out to 2050 um we look we view that the population of Lincoln County is going to is going to drop a little bit uh it did increase uh
049it drop has been dropping since 2010 uh Rose a little bit um believe it or not during the pandemic area and I think that that's a reflection of the community's um um what I call their permanent historical base the historical families that live here um that come home in times of Crisis they may leave but they come home and it it provides some stability and so although there's a projection in Lincoln County uh for population to drop um almost about 19,000 by 2050 as we look at the population of Capitan um it looks like it's going to be it dropped from 20 0 to 2013 or 14 but has remained relatively static with some bumps uh up and down over the last uh over the last 10 years and also we we look at that
050uh potentially continuing into the future so um that combined with and you'll see them here in a minute that combined with um our population projections for the district um appears appears um that things will be pretty stable for the Community um into the next five years and Beyond and so we're we're pretty excited about that um unemployment in Lincoln County and why is that here because people follow jobs let's be clear and so unemployment in Lincoln County has um has been somewhat above um the um the national average over over historical times but remains well below the state average over time and so um that means that folks probably stay in the area for jobs although there's some unemployment rate um and we do know that Capitan being the size of the the town is
051relatively small so folks uh either work on ranches or they travel to Roso maybe Al mordo maybe Roswell for jobs and so um but that that allows the unemployment rate to stay somewhat steady um although it it fluctuates over time we believe that that's not going to be a big factor in uh in U in the long-term projections um then we look at population of the district the population of of Capitan Capitan over the last 10 years um I'm sorry over the the decade between the census um the city lost or the population within the district lost about 388 students but remember that the district also includes uh Ski Apache U and a number of other places and population in those areas actually Rose so that's an indicator that although the the town population has
052probably shrunk over time um the population of the district uh has actually risen a little bit um and uh and that's helpful the that's good news the not so good news is is that um the majority of the population of the district is um age 45 and older um so um folks of childbearing age which which are generally considered 15 to to maybe 44 is a relatively um relatively small and so U it it it's all about having babies and so um if that population is pretty small we don't expect that the birth rate will will rise too significantly U but I think it's it's sufficient enough that it would keep things level over time um assuming that those those those folks that are now in the under 18 year old range choose to stay
053here once they graduate um go go to school come back and work and live in the in the area so um again this is a fiveyear projection we think for the five years it's going to be stable in the longer term the low the low birth um weight birth age group um might be a little problematic so um it just it's reflective of an aging population in the in the district um the poverty rate in uh in Capitan was um surprisingly high in the middle of the last decade in 2016 hit almost 30% um but it dropped significantly through um through 2021 and in fact dropped uh during the uh dur during the pandemic years we think that's a reflection of folks uh returning home uh and still working um they might not have an
054apartment in ruoso or in El mordo but return home but are still working and so um the poverty rate dropped during that time and has remained somewhat in the uh about the 15% range still a little high but um and consistent with the the poverty rate in Lincoln County so it's not any higher or lower It's relatively consistent with that so we believe that will stabilize over time um to to about what it is now um remember that um that um if you look at the poverty rate in copy tension go back one one slide there you go um if you look since since 2020 the poverty rate in in Capitan has dropped um we believe that that's for a number of reasons again folks returning home to stay but also in that time um
055educational salaries have um increased very very significantly uh State uh State and state government salaries have increased significantly and those are the type of jobs that stay in the area and so um we believe that that had a significant contributing Factory bringing that down and we believe that'll help with stability into the future um as we know the school is the center of the community and and because of that the educational component will be helpful in that um as you look on um at these next two slides you can see the historical enrollment um as we noted the the enrollment in the district has dropped a little bit in the last couple of years um this year was a little bit of an anomaly we think it's going to rise a little bit next year
056um but as you look at the graph um or the graph to the right um you'll notice that the projections over time are somewhat flat and the and the confidence intervals are pretty tight and so we don't believe that uh we don't believe that the district over the next five years um will see any big significant jump jumps or decreases in enrollment which should stay relatively consistent again good news for for projecting things out um and as you can see this is this is where we're projecting out we see some small decreases um in the U in the elementary and the Middle School um Middle School not so much uh but in the elementary a little bit we think there's a bubble going through um that is causing some of these fluctuations but you'll notice
057that in Roman at the high school is projected to stay pretty flat and and consistent over the next five years so we think all in all U as noted on the previous Slide the enrollment should stay flat over the next five years um good news you know capan has always been at or above the Statewide average in graduation in 2023 it it jumped significantly and we believe that that upward slope should continue once we look at the 24 data which p is not published yet and remember this is a this is a four-year graduation rate and so to have your kids graduating and 90% of your kids graduating uh in four years and not having to take that extra year is pretty significant so congratulations to the District on on that piece um so capacity
058and utilization so we've taken steps to developed the plan it's a systematic process um we did an inspection of all the schools we we evaluated all of the spaces in the school uh believe me we've been into every room in every school so U and uh your principles when we visit them always love to take us to the worst of the worst place so we we got to see that but they're making the arguments so that's good um so and this is important and we don't anticipate large swings in population especially increases but the results of our evaluation suggest that you're not positioned to accommodate um your student population or its U educational program in the future without Renovations or some new construction um it's just you're too tied at the high school you're tied
059in in here your Elementary is tight I believe and Chris correct me if I'm wrong this is the first district that we've done in FMP for where there's where there are no additional classrooms to be had every classroom is being used daily if you were to have a large influx of of population or um the superintendent and the principes decided they wanted to take a different tact on some of the education programs and add some programs you'd have to subtract programs in order to to make those kind of changes so um there is no additional room um and so that has to be thought about as we look look to the to the Future um um talked about the 100% capacity um although there's a cap capacity spreadsheet you'll see in there on page 50
060um although the capacity utilization spreadsheet indicates sufficient space to accommodate some additional students um it's only a few that could be accommodated in a classroom or two um if there was a large influx for some reason that you could not add additional grades or classes to the grades there's just not enough room to do it um and so um we believe that a limited number of Renovations and new construction will need to be considered um to make sure you can support your programs that are vital to supporting your vag program um your colic career Readiness program your special ed programs um just to let you know and I'm sure you already do um there are you don't have facilities for a life skills program for your special Edge students so there's a lounge in the
061high school that those staff use for that purpose but it it then doesn't give your teachers and staff a place to have a lounge to to think about or to meet and so um those are the sorts of things that we're talking about and we want to obviously want to ensure that your student graduate with the skills that that they can use whatever their ability is um to contribute to the community um so then we'll go into a little bit of your financing I'm almost done I know it's getting late I thought we'd be out of here while it was light was Daylight Savings time but that didn't work um to your credit um your your assessed I mean your I'm sorry it's not to your credit it's to the community's credit but your assessed
062valuation has been increasing slightly um year-over-year about 7% in the last four years which is good what what's interesting to me is that your residential valuation has stayed relatively flat with some increase but most of your increases have come in the non-residential components so um in this community it could be livestock it could be uh farming equipment it could be uh your business equipment things of that nature so that shows that there could be a strong base of of business support in the community in the valuations to support A Little Bit Stronger bonding in the future so that's that's good news there has been some increases again in the residential but not to the greatest percentage to as great a percentage as there have been in the non-residential components um this I think on page
06363 if you want to see the spreadsheet it's better to look in the book um I can't see that I don't know if you can but really so with the FMP in the in the past um and and this is not a dig at our competitors it's just the way they do business um you'll you could find 300 lines in the spreadsheet and you could find a need of $50 million and and given what you what you can raise in the bonds it's not achievable we don't believe in looking at it that way we don't need to put every tile and every window sill and every window that needs to be replaced this is a capital spreadsheet and so we we've identified a need of about $14 million um over um uh a priority One
064U another four million in priority two and another two million priority three so um about 2122 million in need if we look at the current circumstance with psoc small districts being allowed waivers uh it could be possible that we could accomplish all of these um over the next five years uh would take some work but it could be but if you look at it it's things like you know the gymnasium repurpose for cumming's gym we don't we don't think that that you that you would be able to renovate cumming's gym to do the job um the locker rooms aren't of sufficient size the bathrooms aren't of sufficient size the entryway sort of common area is fairly large but there's just not enough in that footprint to really get things done when you look at some
065of the needs though of the the school new cafeteria a new kitchen some life skills classrooms things of that nature you could these are just ideas you could repurpose cumins to do something like that um and move move those there it moves them a little bit further away from the um um from the um the campus itself for eating except for the elementary school puts them right across the hallway there but um um but you could do something like that that's just one of many ideas um um repurpose the cafeteria we talked about that um you know fire alarm upgrades HVAC requirements you can see this um I'm looking at the big ones um at the elementary school the plumbing River really needs to be replaced you've got an issue with with with with your
066sewage system there and that River needs to be replaced um Plumbing fixture replacement the T roof needs to be replaced the flooring needs to be replaced the HVAC needs to be replaced um probably need an early childhood playground to se separate the older kids from the real young kids um you need some sound attenuation in the band classroom and um some casework replacement so and then of course at the middle school high school um a new competition gym um I we do have a safety concern with with using Cummins not because it's going to fall down it's location uh right now folks come in the front park in the parking lot out here and then you they have o complete access open access to the entire campus getting to gym and getting back to their
067cars it would be better if the competition gym was more centrally located near the the parking lot um and being able to to do that and then accommodate all your sports all your um all your um you know the fans the seating the powerlifting uh and then and then finally of course uh depending on the the the price and the uh the design you you could conceivably um build an administ administrative Wing off to a new a new competition gym um and then allow that would free up space here in the Middle School quite a bit of space to be used for classrooms and for some other things that could be done so um as we think globally there's some options uh that could be done uh by doing that um and then of course
068um your track um is probably getting close to needing replacement uh you've got a couple of areas that have been dug up for running power onto the football field and then patched um could be life health and safety issue with kids if they catch a cleat on that or something um and then also um your bleacher replacement the bleachers themselves could stand to be replaced safety concern with the what direction is that super um on the south side where you end where you you sort of walk down and then there's some concrete steps that are kind of uneven and then you kind of land on a on a a dirt area so there needs to be some work done probably on the on your bleachers um and then of course um foundation repair around the
069middle school here and then of course vag replacement HVAC and and and then probably they thought about maybe a Athletic Field House or not but um right now I think kids have to come all the way over here to dress undress shower and then go back out and things like that so um that's all I got so um do you have any questions um so on the on the deal with the track we talked been wheel back about before we replace the track to fix the drainage issues that are right there on that South into the bleachers because there is water and stu things so that that needs to be part of that that gets done we need to fixs and we've had discussions about how we vacate that water on that on that end
070whether it's through a storm drain system of some kind or uh or we covert that to the you know to the bar dish you know through that sorry it took so long so yeah we've had those discussions and so also on that so you were saying that about 21 22 million yes sir what what are you what is your number that you think of that would come from bonding and what would come from you I don't do you know what your state share is uh as of now it's uh 43 State 57 us so um 57 so 12 million from you and uh and 7 million from the state but no opposite we're 40 no I'm sorry we're 57% in the state's 42 right so about 12 million and then another seven from the state
071but um for school districts that for small school districts now um the and because there's so much um uh non-recurring Revenue coming in um the psfa has actually been encouraging folks to build and to request waivers of the of the of the the local share um and so we just did an FMP for a school district in Northern New Mexico about the same size as yours um and they now they're ranked number four fair enough but still um psfa is entertaining a full waiver of of the local share so if that were the case um I don't know which buildings we would need to tear down and then rebuild but if we could take them piece by piece it may be worthwhile um to ask for for systems funding in pretty large amounts and see
072if you can get a waiver for that and that would cover you know window replacement the plumbing River the the roof at the elementary school um the foundation issues around here um and get a waiver for it wouldn't cost you anything um and so um I think that's something to to really to really consider um but the first thing to do I think is we need to get this this loan off here it wasn't a loan you wanted it wasn't alone the community wanted and the community has voted with their dollars right by not passing a bond issue so um you know we need to let the community know that that we might be able to get this fixed and then we can we can move forward on on some other things and and that'll
073kind of generate support I think how long does that waiver usually take to because we're probably looking at doing redoing our bond in November right but if we could go to the voters and say hey we have we W to do this Bond and say we're going to get away from the state so it's not going to increase anything you can speak to well Mr President uh probably the best step would then be to engage psfa once once uh Paul has worked through the LC and after the session LFC um because it could really happen as soon as getting on the pscc agenda U knowing you have the votes and then take they would take action there um so it could be as short as a few months or as well hopefully by the time
074you can present this to voters I I think though the back behind the scenes work has to yeah so as I mentioned I have a again this I'm not trying for pat on the back so please don't think that this isn't something we do for most districts but I honestly believe that this is has been kind of an injustice and I do have some you know old connections with members that are still on the board and so we're going to try to see if we can get this thing done and then begin the conversation for um you know on how to move forward uh that way you can work with your your your community and PSC will understand the the the commitment that they've historically had and that this mess is kind of their fault
075and we Pro they probably should step up to to uh to fix it question on on your estimated cost for for all these de priorities how was that come how did that come about and just as you know as well as everybody else knows the the increase of construction cost over the past you know three four five years yeah is that I mean of course every it's only going to go up you know so we add a sort of percentage for the next five years or whatever we don't [Music] them and that dollar amount will change so how does that like how was your estimate done based on that inflationary deal of we all know construction is going up it's going up it's keep going right so we looked at construction cost across the state
076urban areas rural areas um we looked at at at projects that have that have recently taken place some projects have taken place place now at $1,000 a square foot um that price has since gone down but I I think for example the the gym construction was somewhere in neighborhood $700 a square foot which is still high but thinking through this and thinking about the increase in materials um you know we're concerned about the tariffs uh on the price of steel and the price of wood primarily in our business uh but um there are some um there are some folks out there that are saying that that um there could be some shortterm um deflation even lining up on maybe a recession uh till we B bound up and and that's the reason to get moving
077on some of these things at least with the planning to take advantage of those sort of sweeps as they happen um we don't see it coming down you know to 2010 prices but certainly not as high as they ended up being um although at $1,000 a square foot last year that's higher than we've seen anywhere and so um you know we balanced that out we looked at at at the average across the communities uh rural location ability to um to procure materials locally and the ability to transport materials and the costs associated with that so it was a mixture of a number of those things that led us to the these prices we know that there that inflation will come up um these have an inflationary Factor we believe through 2025 but you never know
078what's going to happen near the end toward the end of the year so as I mentioned earlier it's a dynamic document we need to be thoughtful about keeping an eye on those things and then making changes and prioritize things as we go you did that answer your question sir I know you're a contractor so I'm sure you're thinking about this stuff every day how much can we get done what have right we go to ask the community for more money well and that's the reason that I think we need to really as long as As PSC and psfa continue to offer waivers I think we need to hit them hard on all of that and just keep you know if you don't ask they can't tell you no they can't tell you yes though either
079if you don't ask so you got to ask and and until till they say no yeah right other questions superintendent question so if you could please any edits you think are appropriate please let us know we'll make them and and we'll submit it uh as much as I've enjoyed tonight I'm probably not going to drive down for the April meeting um but uh I'm sure the superintendent will let us know if if you voted affirmatively if you could make changes though within you know a couple weeks so we can get them uh into the document and then get you a final document for your consideration we would appreciate it thank you thank you thank you I will tell it I will tell you well uh I've been through probably three or four of these and
080I'm really proud of the job that they do and the one of the biggest things is the list of $50 million dollars worth of stuff that you got to weed through and and this is a more straightforward approach and and I just really appreciate the job that that they did thanks for having you don't have to wait for the rest meeting we won't run out take you thank you thanks good seeing you so no none of the second public comment either and I gu okay uh little Personnel update uh vacancies at this point uh we have a middle school high school secondary position that is open still u a couple of educational assistants that can be hired for right now and then for 20 25 26 we have three elementary teachers that we're we're going
081through applications currently uh Varsity head football coach we are conducting final interviews there's two finalists and we're conducting those interviews one was today and one will be on Thursday so we should be able to report on a new head football coach by the end of the week hopefully uh and then a head varsity volleyball coach our enrollment as I looked at it on about Thursday Wednesday or Thursday it was 444 students uh re remain relatively flat we've been as high as 449 I think and we've been as low as 442 so it's it has you know speaking a little bit about enrollment uh we're we're showing to be pretty pretty flat there um the science science instruction materials adoption you'll see on this back table uh these are some of the they are all the
082secondary I believe that are the science science options that we will uh work through over the next couple of months and get those get those ordered get some input from we're going to have them here like we have in the past where there's a where you can provide us input and you know pick what you like and and community members can come in and do that as well and we'll get some announcements out of and about that um there's a community meeting and actually Mr Shephard stepped into City Hall village hall one day last week unbeknownst to him they were pattern energy was meeting with uh some of the village staff the mayor and one of the trustees and there's some interesting information do you want to go through that real quick and Mr President
083members of the board I'm not sure if y'all have heard um patter denergy is under contract to purchase 285 acres for sale right off Highway 246 um and they have been meeting with the village they're going to put it before the entire Village Council they're wanting to incorporate that property into the village limits to add an additional 70 homes to the Village of cap um it will be phased in over time they're talking 12 to 20 Homes at first patter energy is going to be having these homes built for employee housing for the uh employees they'll be hiring to maintain and operate the sunia South um windfarm that's going in just North cap um there's a lot of discussion on that um about whether the village infrastructure will handle that many additional homes they actually
084have a civil engineer on board with them as well um they're planning on having a meeting on April 2nd at trailer jym um they're going to cater the event they're wanting as many community community members as they can come and see exactly what they're planning and um get their inut so it' be and I guess the biggest thing is just the announcement of that meeting on April 2nd uh and probably make sure that you know as board members you guys probably want to be there and see what see what's going on and see what what the plan is they also talked about the pill payments those are the royalty payments that the district receives and those are going to be pretty substantial over the next 10 to 15 years from what they're say so um
085I'll I'll look forward to reporting more of that to you all as time goes by uh we have some physical therapy services that are donated that are being donated by redos of physical therapy uh to our Athletic program and uh we anticipate them getting in here pretty pretty quick but pretty generous of them to work with our kids and and uh help them with any injuries or or just avoid getting injuries which is probably more important than uh the reactive upcoming events I'm not going to go through all of these you guys have them here there's there's a ton of them between now miss Huey Miss Huey these are just the highlights she's she's given us about three pages worth of end of year events and and I took a small list of those and
086put them on there for you not to and this does not even include baseball or softball games or a away track me so um there's there's a lot of stuff going on um and that is all I have to report I'd answer any questions you might have this schedule here notice that there's a lot of State events coming up and I know that in the past we've done send offs for all those state qualifiers teams organizations I'd like to see if we can make that like a and maybe already do it um you know for every event you know for cheer band choir so um and Miss huy can can probably give a little more details about decision- making on that but we will sometimes do a sendoff and then sometimes it's a walk Walkabout
087Walkabout where they walk through the hallways elementary high school and so that's something the public doesn't necessarily see but they're in the building we're we're in the building doing that together so uh but but yeah send offs whenever we have a team that's going to State and doing some of that we'd like to we'd like to do that no I was just curious like to make sure that every organization skills USA any kind of because that's I mean that's a state organ we try to catch every one of them that goes you know when they go to the group we can coordinate with the with the village to do a send off through town I know that the kids love that they really do so we can coordinate that with our one police officer you
088want you can drive maybe you can drive the police car and turn and flip the switch no but that that's we definitely want want to celebrate those those events and we try to try to make sure we catch all of them so we got a lot of kids doing a lot of great things right now any movement on the SRO no movement on the SRO no other than I had that I had a meeting with with Sheriff wood and uh not much has happened since then other than I do see a Sheriff Deputy drive through our parking lot fairly occasionally um we do still have uh the chief he'll come through occasionally but we are not paying on the U SRO agreement as of the month of February so so that on that same note
089I know it's kind of not ideal but it would it be worth [Music] it security Las that's definitely something that I mean is it is it something oh it definitely it it definitely helps because an individual like that is out in on the campus all day long every day so uh the they're not armed but they're building those relationships and their eyes and ears of of what's going on around the dist around the district and uh a second one may be a good discussion that we need to have in the interim until we can get situated with our local law enforcement now it's a matter of finding that person you know finding that person that can do that job well but but maybe we can can have that discussion in April maybe because we'll start
090doing budget stuff right and that would be something we would put in the next in the budget especially since we're going to have almost a half a year of not paying for a resource officer right you know you could pay somebody else so good idea uh that's all I have okay uh next is the executive session limited Personnel matters as permitted 10-5 1 H2 spe specifically discuss the contract of the superintendent sobody wants to make you guys have the entire no just this part like uh [Music] executive session to discuss limited Personnel matters as permitted under nmsas 1978 10-15-12 specifically to discuss the contract R of superintendent official action shall be taken during session Mr haer yes Mr Rick yes Mr yes Dr yes we go do that at 805 [Music] good see you guys
091thank you guys have a good night have a good spring [Music] break are you just mou you're going to go to the office aren't you yes yeah don't you have Cy din over there