GBAPSD Board of Education Budget Meeting: October 7, 2019

October 11, 2019 0 By Ronny Jaskolski


♪♪ ANNOUNCER: The views and
opinions in this program are not those of CESA 7 or Spectrum. ♪♪ ♪♪ ♪♪ ♪♪ BRENDA: First we’ll
start with roll call. Sandy, go ahead. SANDY: Becker? BRENDA: He’s coming. He’s going to be late. SANDY: Maloney? KATIE: Here. SANDY: McCoy. LAURA: Here. SANDY: Sitnikau? RHONDA: Here. SANDY: Shelton. KRISTINA: Here. SANDY: Vanden Heuval. ERIC: Here. SANDY: Warren. BRENDA: Here. Okay, we have six board
members here and one is coming from work. I’m not sure when he’ll be here. At this point this is our
board meeting in relation to the budget. And I’m going to turn it over to
Dr. Michelle Langenfeld to begin opening remarks. MICHELLE: Thank you, Brenda. As we look forward, we have
a balanced budget this year, that once again is focused
on meeting the needs of the students and
families that we serve. It is intended to be aligned
with our strategic directions and district priorities, which
include academic excellence, engagement,
personalized pathways, and thriving workforce. And I want to
commend Angie Roguely, our executive
director for finance. This is her first
official go at this, but she has certainly been
working tirelessly behind the scenes to make sure that
everything and every detail is in place. And I want to thank our Chief
Operations Officer Pete Ross, who is here intermittently to
get on board and be up to speed, so when he fully
joins us in January, he’ll be good to go. And then also, the documents
that are prepared and available to our public are a result of
our communications department. So, thank you to Lori Blakeslee
as well and to everyone who contributed. So, I think that it will be
a very clear and important conversation as we
begin this evening. So, I’m going to turn it
over to Angie and Pete. And thank you. ANGIE: Good afternoon. Angie Roguely, I am the interim
executive director of finance. And Pete Ross is
also here with me, like Michelle introduced. I appreciate Pete being here as
well on a part-time basis and walking through these things
on the budget stuff with us and keeping him up to speed. So, I thank him for
being here tonight. So, you’ll hear from both of us,
and we’ll both be speaking about a few different topics. So, okay, I think we’re ready. So, up on the first slide show,
and I do want to–there were a couple changes to the slides. So, our membership
enrollment changed from Friday, up a couple, you
know, 20 students. And as we go through the slides,
there are going to be a few numbers that are going to change
until you see the full budget to approve on October 21. So, there’s a
couple moving parts, but I’ll point
those out as we go. So, this is the
most updated slides, but again it has changed
since Friday slightly. So, I’ll point
those changes out. So, up here is just our schedule
for the next couple of weeks. Of course, we’re here
tonight, next week is our public engagement session. Then leading up to October 21
where we have the public hearing and then the formal
adoption of the budget. And here is the mission
statement in which we are very well aware of. So I won’t read through that. So, the purpose of the meeting,
Wisconsin Statute 65.90, and we’re here
formulating a proposed budget, and then the public hearing
and adopting a budget on October 21st. This mandates all school
districts to go through this process, so that’s
why we are here today. So, what we’ll be
walking through, the important factors
that we go through, there’s a few big ones. We will highlight
those key areas for you, and talk about how they
fit into our budget process. I will be walking through all
of the funds that make up the budget, especially
the general fund, which is our largest
fund in special education. You know, we don’t have time
to go into details and details, but I welcome you to come in and
sit with me in the next couple of weeks if there’s anything
that you really want to hone in on. And of course, we’ll
take questions at the end. All the other funds
we’ll walk through. They’re much smaller, but
that doesn’t mean they’re not important, so we will kind of
walk through those as well. And then at the end we’ll
just give you a budget proposal summary as to what we’re
proposing and what you’ll be voting on October 21. So, as we all know, in the
last–this last summer the legislature did sign in our
state biennium budget for ’19 and ’21. A big impact. There were a lot of components
that were part of that biennium budget, but I’m going to
highlight the key ones that directly impacted us and
especially for the positive. One of those changes was the
increase in the per pupil aid amount to 742 per student,
that generated some additional revenue for the district. The downfall to this is
it will stay flat in 2021. So, it will stay at that $742. But it did increase,
which was a positive. And another thing that we did
see was the Rev Cap increase of $175 per student. That’s something that we haven’t
seen by the state for the last couple of years, on the last two
state biennium budgets we have not seen an increase. So, that increase was huge for
the Green Bay School District. And then in 2021, because we
are a low spending district, that’s going to
bump up to 10,000 per student. So, currently, we’re at 9,727
rev cap and that will bump up to 10,000, so that will be
significant for Green Bay. So, here are the–here are
the big factors that take, you know, that come into
play when we’re processing the budget. Number one, fall property
valuation came in the beginning of October, and
it came in 9,311,000,000. This is up 3.55% and
is a huge increase, very positive for Green Bay
and the surrounding areas. That September
student membership, or our third
Friday count, is at 21,072 with slight decline, which
we’ll talk about further into the presentation. The state aid
number, the equalized aid, we won’t get this
finalized until October 15, but right now this is our
estimate of 161 million. And again, it won’t be
finalized to October 15, so we’ll be tweaking that number
within the budget documents, but we’ll let you know
what that is next week. Another one that we
haven’t put a final, or haven’t received a final
number on is the vouchers. We are proposing, or estimating,
6.6 million in voucher expenditures because that cap
has increased another 1% from the prior year. So, we are estimating an
increase of $2 million. So, again, it’s a hard number,
we don’t receive a lot of information on this number. So, we will wait and we’ll get
that final number on October 15. So, here’s a summary, some
highlights of the ’19-’20 budget. So, we are proposing
a balanced budget, 279.1 million in
the general fund. We are also proposing a decrease
in the mill rate to $9.97, which is the lowest
mill rate since 2010, maintaining that referendum
process that we would not increase that mill rate. The average
property value change, like I mentioned
before, is up 4.55%. And then also special education,
special education fund has also increased by 5 million. So, overall that Fund 10
transfer to Fund 27 is at $5 million. Just showing that commitment
that the district has to special education. And the budget aligns with
the strategic direction of the district and the board. PETER: My name is Peter Ross,
and I have been working with Angela Roguely in the
finance department, providing some background and
some historical view points with respect to important factors
in the budget process here. And the one thing I
would have to say is, I really enjoy working here,
I like the Green Bay School District. I believe it is an anchor
for the schools in northeast Wisconsin as really the
Bellwether in most significant districts in
Northeast Wisconsin. I did work at Semore
Schools for 15 years. And enjoyed the relationship in
being in such a large and well organized and well
run school district. There are some really
cool people working here, as well as great
programs that you have, as well as, oh my
gosh, 21,000 students. So, I’m used to a budget
that’s one-tenth of this size. So I hope during the course of
this conversation that we have today that we’re not having
the board ask ten times as many questions, because the budget’s
ten times as big as what I’m used to. Anyway, having said that,
I’m going to provide the 30,000 foot view and the fact
that the district has 66,000 lines of code
in the budget. It’s a mammoth operation
here, and the board should be commended, as well as the
employees of the district for doing such a great
job for our children. When you take a look at the
major drivers of the budget, one of the most
important factors is enrollment. But in order to
support that enrollment, you have to have a market
evaluation that can support the property valuation. So, the first slide that we
have is a historical look at the property valuation fo the
Green Bay School District. This is an indicator that
there’s good economic conditions in the district,
because you gotta mill, or I’m sorry, you have a
property valuable increase of 4.55%. So, as property values grow, you
can support educational services through those
property values growth. If we grow the district
budget less than 4.55%, which we are proposing in
this particular situation, the mill rate will
actually go down, which is a good thing, because
when this district went forward to the last referendum process,
you had indicated to the taxpayers that the mill
rate was not going to go up. And in fact, as we go through
the documents that we have in front of you today, you’ll
see that it has not gone up. The — one of the
big enrollment, if you go to the next
slide, in terms of enrollment. You’ve got it,
September membership. Schools are funded through a
collection of property taxes locally, and state aid
that comes from the state of Wisconsin. But it’s all predicated on how
many kids that you have and how many children
that you’re serving. So, as I look at this
district from a 30,000 foot view, and the
concern that I would have and the advice given to the
board would be that enrollment membership is on a decrease. You have three yeas in a row
where you had approximately a 300 student decrease. And that will impact the amount
of money that you can revenue. Because revenues are strictly
controlled by the state of Wisconsin through the
revenue limit formula. You can only receive as much
money as students you have are–that are
indicated for that revenue. So, here again we have a
decrease of 282 students, based on the third Friday count. That’s the number that we
put together on Friday. It may change throughout
the course of the year, in fact, it will, there will be
students that will come in and out of the district. But we do a third Friday
membership county and a second Friday membership
count, and January, and that’s what our
membership for aid purposes is predicated on. Again, just to indicate that
with the September membership going down, we have a three-year
trend of 916 students less than we were serving three years ago. General state aid. This is something that I do go
around the state of Wisconsin and give talks to school
boards and to organizations with respect to general state aid. It’s one of the passions that I
have that the state of Wisconsin should support educational
services in each school district. And it’s comforting that we’ve
had a Blue Ribbon task force meeting all the previous
two years that I do believe influenced some of what went
on in the state of Wisconsin in terms of revenue increases,
revenue cap increases for the states schools. So, we do have a history where
we have revenue in the state of Wisconsin going out to
schools that is greater, and Green Bay is a
perfect example of that. We were estimating, and this is
through estimates given to us from the state of Wisconsin, 161
million in estimated state aid. That’ll change a little, but
we believe that aid should be pretty solid. ANGIE: Okay now
I’m going to–oops. Now I’m going to have you pick
up your budget book and we’re going to kind of
was through Fund 10, Fund 27, and then
we’ll go from there. So, if you want
to turn to page 7, this is a graph that we are
going to be kind of looking at. I think it’s a good visual. Okay. No problem. So the general fund revenues. They are at 279.1 million which
is an increase from last year of 3.5 million or up 1.3%. Oh, I am sorry. Yeah. All right. Yeah. [inaudible] BRENDA: I think
you can go ahead. Go, I think go ahead. KATIE: We’re on page 11. BRENDA: I’m on page 7. KATIE: I’m on page 11. PETE: On the Power Point it
is page 7 on the budget. ANGIE: Yeah, so, sorry. Okay, so page 7. We’ll kind of go through
this graph a little bit. So revenues are 279.1 million,
and they are up 3.5 million from the last year of 1.3%. So we kind of take a look at the
graph our general aid is about at 57, 58% along with the other
state ad which is that per pupil that we talked
about at 742 per pupil. So the state is kicking in about
two-thirds of our funding and that’s what it should be at. So that’s kind of showing how we
are funded and then of course, the tax levy is most of what
generates our revenue here at the district. Again, membership
down 252 students. Some other factors again, the
per pupil aid increase which helped the district. It generated about 1.7 million
of additional revenue this year and then, of course, the revenue
limit per pupil adjustment of 175 was at 750,000. But again, you are going to see
a larger increase next year when that reaches that cap of 10,000
from the 97.27 that we see per student on the
revenue limit work sheet. PETE: Okay, I am going to take
you through the revenue limit work sheet. Now each of you should have
received a new revenue limit work sheet at your seat as
well, because the numbers are continuously changing and so
what was put together on Friday in the Power Point, has
changed slightly with respect to enrollment. The interesting thing
about the revenue limit, it’s been in place
since about 1993, so I’m thinking that
25 years, holy cow, I remember when the revenue
limit law was put into place in the state of the
Wisconsin, we thought, oh, it will last 4 or 5
years and then we’ll go on to something that’s more realistic. Because the revenue limit
strictly controls how much money school districts can spend. You’re allowed an increase
in the case of this year, $175 per student to
increase the revenues which, of course, increases the
revenue of what you can spend. The only way School Boards and
communities can have revenue that goes above the
revenue limit by allowable law, is to do a referendum to exceed
that revenue limit and those are known as operational referenda. Otherwise, you are stuck with
and you have to stay within the revenue limit that is allowed
by the state of the Wisconsin. Since 1993, the first 5 or 6
years of the revenue limit formula, it was really designed
to be impacted exactly dollar for dollar to the CPIU,
and then after 5 or 6 years, when the state of the
Wisconsin discovered that 275, and 280, and $290 a student
which was what the CPI indicated that the schools needed to raise
the revenue was too much for the state legislature to afford, the
revenue limit got fixed to $200 a student and those were better
years than we’ve had recently because the last two
bi-annual budgets, not the most recent one,
but the two previously, there was no increase
in the revenue limit. School districts were simply
provided with additional aid for a per pupil aid amount, but no
increases in the revenue limit. So we’re happy that the blue
ribbon task force and the work that was done by the
Wisconsin legislature, at least led us back to a
situation where you can increase your revenue at $175 a student. That’s not enough though
to keep up with inflation. So prior to the
revenue limit law, school districts actually used
a work sheet to calculate what their aid would be
and send it to the DPI, and the DPI would check our
mathematics just to make sure we did it right. Now, we have this vast formula
in the super computers down in the DPI, where we’re given the
amount of revenue we are allowed to increase. $175 and so if you take a
look at the second half. Sheet, the right
half of the sheet, the first column going down, you
can see the allowed per member change of $175. So when school districts
take that allowed change, they do understand that that
is what is allowed by law and I want to emphasize the fact that
that is not enough for schools to keep up with the
inflationary pressures. But that’s what you have. So about the only numbers that
you can fill in on the revenue limit work sheet are the
enrollment numbers and we have placed our third
Friday count of 21,072 students in there plus, if
you’re on the left hand page, you will see the
summer FTE at 190, which gives us a
total FTE count of 21,262. Again, that’s about a 282
students less than we served last year. Any questions? Okay. ANGIE: Okay, moving on to
the general fund expenditures, on page 8. So this is also a nice
graph that shows you where the district resources are going. So again, we are proposing a
balanced beneficial and so the expenditures are at 279.1
million that is up 2.65% from the previous year and
approximately $7.4 million in expenditures. The break down then is listed. So the increase in salary and
benefits is about 14 million this year. That includes our health
insurance increase was 10% which was approved last year. So, that’s included in there
along with the 2.4% in raises and also our lane
changes as well. Our increase and
hiring of new staff. The decrease in contracted
services of 1.2 million. There were some one- time
expenditures in 310 last year from a couple of the
grants we had received, one of them being the safety
and security grant and also the mental health grant. So there’s about $2 million in
there and that’s where you see the spike of over 6 million
and now it is coming down to 4 million and the 310-200 and
310time line. The decrease in non- capital
or capital purchase was 4.3 million, that was again the
facility’s plan to you know, furnish our
learning spaces, right? Last year you know, we provided
furnishings for our students and that was about $3.2 million. So that again was in the budget
for 2019 and it is no longer in there this year because it
was a one- time expense. The increase in Special
Education transfer of 2.5 million, so if you and I am
going to draw your attention to page, let’s go to page 11. So at the bottom, at the
very bottom you will see the operating transfers. So this shows the transfer to
the Special Education fund that is up from last year to 2.5
million and we’ll talk about some of those expenditures
and the increase in Special Education in the
next couple of slides, but I just wanted to
point your attention to that. I also want to point out that
that transfer to non-referendum debt or Fund 38
debt, that is now 0. We no longer have to take
resources from Fund 10 and transfer to fund 38 because
it is now self sufficient. In the past, the past few years,
we have funded Fund 38 and now it can pay off its own debt. So in the next few years, it has
a fund balance and it will pay off its debt in the next few
years and we no longer have to use resources from Fund 10. So that’s a huge
plus for the Fund 10. Okay, looking at Special
Education fund on page 17. So the total anticipated
revenues are 52.2 million this year. The revenue in fund 27
comes from three sources. Local source or the tranfer from
the Fund ten is a significant portion of the
Special Education fund. That accounts for 67%,
that $35 million transfer. Again, with the passing of the
state budget this past summer, that increase in the
reimbursement of categorical aid that increased 25.85% for 1920. For 2021, we’ll see
that increase 31%. So we’ll get reimbursed on the
prior year’s expenditures in Special Education, so
we are getting there. But we are no where close
to where we used to be, right? At 50 or 60% of funding. So our hope would be that that
transfer from Fund 10 will come down a little bit as we
get aided from the state. So 10% are coming from grant
and Medicaid in our Special Education fund. So looking at the Special
Education expenditures on page 21. So the expenditures have
increased by 5 million. A million and half of those
are salary and benefits for the Special Education bus aids
that we have hired and put in to place to ride on the
Special Education buses. So that was a big
part of that increase, along with, of course, the
benefits and salary and benefits for Special Education. On the maintenance of
effort, as you are all aware, it is the school districts that
we have to maintain a certain level of spending and with
the increase of benefits and salaries, we will be
in compliance with MOE, and we will not have
to worry about that. Just because that is an increase
that will cover that maintenance effort. So looking at all other funds
and I’m not going to have you page through every single
fund, but I’ll highlight the key points and what to know in these
smaller funds that make up these district budget, so total
of all funds is 382 million. So that’s really everything
across the Board including Special Education, Indian ed,
and so the special revenue fund, the donations, that is just all
of the donations coming in to the district. All of the buildings have their
own account out there and they account for the donations for
the come in and get spent on the students. So that sets about 2 million. The Indian education
fund or fund 22 is 269,733, that has
increased from the past. We did see a drop a couple of
years ago and we have increased and have gotten some more
revenue for that grant, which is good news
for the district. The Head Start fund, fund 29
is at 6 million and of course, as we are all well aware,
that increase is because of an expansion of the program and the
one-time grant that they will be receiving to
expand their services. So, that grant or
that, that project grant, I call it would be about 2
million and then they received a million dollars in addition that
they will continue to expand those programs on top of
what they were already getting. The Debt Service Fund, we are
going to be meeting with Baird tonight at 5:00 as well to
talk about our refunding and the restructure of our debt. So you will see those
funds increase in revenue and expenditures, because we are
borrowing to pay off debt to save taxpayers approximately $11
million in interest cost because we are paying it up front. We’re setting up the district
for an opportunity to look at a referendum
sometime in the future. So we’re structuring that debt
which you are all familiar with. The capital projects fund or
referendum you will see $26 million are being expended
in that fund and so we’re wrapping up those projects from
the ’16, ’17 capital referendum and so that’s where you’ll see
almost no fund balance left at the end of this year
because those projects, wrapping up, and
we are moving on. Mike will be happy about that. The food service fund, fund 50
is operating very similar to last year at about 10.7 million
balanced budget this year. Lynette is not expecting
to spend over fund balance. They are right where they
should be per DPI statute. The fund 72, about $40,000,
that’s our scholarships going in and out of the
there for the school. So it’s a pretty small fund and
then the community service fund or Fund 80. That’s the one we separate levy
for and we are planning this year to spend a little
bit of the fund balance, about 135,000 in there. Which has been, which
has been talked about. You know, we were increasing
that fund balance a little bit, and now we are spending it a
little bit this year and I’m assuming going forward. So we can sustain
that for a while, but it won’t be forever
that we can sustain that. We have a $1.6 million
fund balance in Fund 80. PETE: Okay, now I will get to
the nitty-gritty of what your neighbors might be interested
more in than everything else that we’ve talked about and
that’s the levy that we are proposing for this
balanced budget. We do have additional resources
from the state of the Wisconsin. We also have additional levy
authority from the state of the Wisconsin. The combination of pupil aid,
per pupil aid revenue authority and property evaluation is
putting us at a situation where we are going to ask the local
taxpayer for a levy rate of 9.97 or less. We hope that we have budgeted
conservatively and that may be slightly less, but we think our
numbers are pretty solid at this point. But our expectation would be
that the levy would be 9.97 or less. The interesting thing about
taxes in the municipality or a school district where there
are several municipalities, is that it is not shared
necessarily equally across all municipalities and sometimes
that is hard for taxpayers to understand. For example, the ton of Eaton’s
property valuation growth was only .24%. So as a result of that property
valuation growth being less than what it was for the
entire school district, their portion of support for
the taxes for the levy of this district will be slightly less
than it was the year before. That’s because their valuation
is not as much of a percentage as it was the year before. Their growth was less, and so
the percentage of their total value is of course, less. That’s what the
taxes are based on. So while you are saying, we
are going to levy at 9.97%, those individuals living in the
town of Eaton will actually have their taxes go down. So if you have a $150,000
house in the ton of Eaton, you will be paying slightly less
property taxes than the year before as long as your
valuation stayed the same. Whereas, if you’re in
the City of Green Bay, the property valuation growth
for the City of Green Bay was 4.82. So that’s going to be slightly
more than the over all property valuation increase of 4.55%. That means there will be a
slight increase in terms of what they would pay
for the same $150,000 house, if there was no property
growth value to that house. We do anticipate on
average though across the entire district that the increase would
be about $60 or about $5 on a $150,000 house, $5 a month. $60 per year to
support the levy. So we are proposing, or
are you going to do it? So we are proposing that
the general fund is balanced. There will be some tweaks
between now and the 21st when you certify that levy. The debt refunding
for the spring of 2020, and to pay earlier
debt as scheduled, and pay debt earlier than
scheduled is a presentation that we’ll have coming up. We are expecting that the
mill rate will be about 9.97 and potentially slightly less than
that when we are finally done with all of our numbers. The mill rate history on page
19 is one that I would actually turn your attention to. The budget book on page
34 if I could instead. It is exactly the same numbers,
but the graph I think is a little more descriptive of what
is actually happening in the district. Because when you take a look at
the mill rate on the spreadsheet or the graph that we
have for the Power Point, it looks like it’s going up and
down quite dramatically when in fact, Green Bay has a very
steady mill rate valuation payment for the taxpayers to
pay into the district for the operation of the district. What I like to look for and all
of this information is on the Department of Public Instruction
site at the DPIin Madison, is I like to look for districts
that have a very stable mill rate approach to their
budgeting practices. And this district is
certainly in that category. What you want to do as
the school district, is make sure the
taxpayers don’t have a surprise. You don’t want to see great
swings of the mill rate either up or down. Because if you have
those great swings, the taxes that they pay from
year to year are unpredictable. Instead, it’s good management
practices by the school district to make sure that the mill rate
moves very slightly from year to year. As you can see from the graph
that is on the screen in the Power Point, or the graph
that you see on page 34, it’s very steady and in fact,
over the course of the last five years, there’s been a slight
decrease in the mill rate every year which means that you have
a very predictable property tax situation for the taxpayers and
I think they would appreciate that predictability. ANGIE: So the estimate and
assumptions that we have seen in tonight’s budget book are
definitely the equalized aid and voucher count which we will
optimize on October 15th and we’ll bring those changes on
October 15th at the public engagement session and then
you’ll be voting on the final, final numbers on October 21st. So we’ll provide a summary
document that shows what numbers changed. We’ll not change the
entire budget book, but you will get a summary of
what numbers have changed within the revenues and Fund 10. And of course, salary and
minor staffing are still being finalized. So there are tweaks being
done as we move through. The budget is a working document
and so we’ll bring forward any major changes that come about
within the next couple of weeks and further down the road as
well if we have anything that changes dramatically
from October 21st. ’20-’21 because we have the
state budget that was passed last summer, it’s much easier to
predict what our revenues are going to be. Expenditures are a
little bit more tough. But at least we know what we
have coming into the district based on flat enrollment or
decreasing enrollment and so our projections are out there and we
are working on what ’20-’21 looks like as well. So are there any questions? BRENDA: I have a
couple of questions. Being in a declining enrollment
situation over three years and I don’t understand this very well
because we’ve never been in this situation, but there’s a
three year rolling average that happens. So is there a bigger, if we, if
we were to decline again next year, is there a bigger hit? Because then we will have three
years was average decline or how does that rolling
average impact our state aid? PETE: That’s a great question. One of the things that I’ll
refer you back to is the revenue limit calculation work sheet
that you have in front of you and you’ll see in the revenue
limit calculation a declining enrollment exemption. The exemption this
years almost $3 million. It is $2,966,927. What happens with that declining
enrollment exemption. Let’s say for example, that
you’re enrollment is flat next year and you
don’t go up or down. So one-third of that declining
enrollment exemption is gonna fall away. So that will reduce your
taxes authority about a million dollars if you stay steady. Now if you go down $300. Or 300 students
again, next year, your declining enrollment
exemption is going to remain the same. But if you go over
to the other side, your revenue limit which is
based on the rolling average on the right hand column, way on
the right hand side down about five lines, down, your
rolling three year average is 21,560 students. That’s going to decrease. If you go down again, which then
generates a smaller number on line 7. So, you do have a little bit of
a situation here in the district with the 300 students down each
of the last three years that even if you have steady
enrollment next year, you’ll have to encourage or
incorporate into your levy about a million dollars because you
will not have the declining enrollment exemption again. Or a million left
in over all revenue. So on a budget of 290. $2 million, what is that? A half of a percent about? I know we’re talking
a lot of the money, but in the whole
scheme of things, it’s pennies on the dollar. Part of the strategy that’s been
involved in what will be heading into a presentation at 5:00 is
to make sure that the School Board has windows of opportunity
to keep their levy flat and we’re using long-term debt
retirement as a way to create those windows for the Board
so that the taxpayers aren’t negativity impacted by anything
that might happen to the district in a negative fashion
like declining enrollment. BRENDA: And then the
maintenance of effort. When if we were just–this
is hypothetical to help me understand what the
maintenance of effort means. If we were to have our
Special Ed population drop significantly, would
our maintenance of effort expectation go down because we
have fewer students or does that maintenance of effort a set
amount that doesn’t really, it doesn’t matter how many
Special Ed students we have? PETE: Maintenance of
effort in Fund 27, and you do have fewer students
in Special Education this year than you had last year. Maintenance of effort is
designed to insure that school districts aren’t artificially
inflating costs in Fund 27 so that they can achieve the
categorical aid in Fund 271 year and then all of the sudden, next
year they aren’t claiming that. So what it’s designed for is to
have consistent expenditures. So if you have
legitimate reductions, you are allowed to have a
lower maintenance of effort. BRENDA: Thanks. PETE: But it has to be
legitimate and you have to prove it through staffing
or student costs. BRENDA: Okay. Eric? ERIC: I don’t know if either of
you can answer this question. Do we have a projection of
enrollment over the next five years and do we anticipate it
to be in declining enrollment? ANGIE: Yes, we do have a
projection and we project a decline in enrollment. We have a five year projection
report that facilities helps, Mike Stanglin actually help put
together and that is what we are projecting and that’s what other
school districts are also seeing from the
birth rate, right? I mean, you know, people just
aren’t having as many kids, anymore, right? So it’s not just Green Bay
who’s seeing this decline. It is across the state. BRENDA: Do you
think because of that, do you see any possibility of
the legislature kind of changing the declining enrollment rules
and things like that for school funding. I don’t know if
you can answer that. It’s just a thought. Yeah, go ahead Michelle. MICHELLE: I would say it’s one
of the important discussions that would come up periodically
at the Blue Ribbon Commission. It is a concern across the state
of the Wisconsin that the number of students is declining. We have many school districts
right now that are in pretty dire straits
in terms of the resources, because their
enrollment has declined. So, I know that the
education committee, especially the chairs, both in
the assembly and in the Senate are looking for ways to provide
relief and also insure that, that communities
that have one school, one elementary, one middle, and
one high school are not put in a position where they may not have
to continue to provide education to the children. So that was an
ongoing conversation. I expect that we’ll see more
and I am sure Laura has greater insight on this having just come
back from the WASB or solution group but I know it is a concern
across the state and certainly across the district as well. BRENDA: And what in terms,
I know in the beginning, the voucher students that
we transferred funds for, if we go with state percentages,
about 75% of them are already in private schools. I’m just wondering if we
have any sense–and so that, oops, sorry, that first wave of
kids didn’t cause a decline in our enrollment. But I’m thinking now as the
voucher program continues, that, then the new voucher
students that are in the private schools may have
been our students, and so some portion of the
declining enrollment may be from the voucher students or do you
think that this is–or do you think more of this has to do
with just declining birth rate? ANGIE: I think there is a
couple of factors there, Brenda. For one, the income limit
for the voucher students, that does change and so it
does increase or decrease. So if you had a student that was
in a private school and didn’t qualify last year, they
could qualify this year. That does change, that range of
income if you are eligible for a voucher. But you also have students that
are enrolling out and enrolling in as part of our
declining enrollment; there is some of that as well. To put our finger on it, it is
hard to get information, right? It is hard to track what is
happening with the voucher kids. I think a little bit
of both is going on. BRENDA: Rhonda? RHONDA: I have a few questions. I’m actually wondering if
anybody could speak to and just to clarify on the Fund
10, the general fund. Sorry, that is page 12. I am looking for when it
says elementary instruction and secondary instruction,
what does that all encompass? ANGIE: So these
are sub-functions, right? So elementary is all staffing
and all costs that are included in the 110,000 sub-function. Same thing for like
secondary instruction, that’s all staff, all explains
and anything that is going toward the building, that’s
what is included in there. RHONDA: What about
other special needs? ANGIE: Let me get
back to you on that, Rhonda. I have a break down and so just
give me a couple of seconds. RHONDA: I will just continue
because you know the average person looking
through all of this, it is overwhelming. A lot of the people typically
look through this graph specifically, I think it is the
most–it is the easiest to look at and maybe absorb, but I think
it would be good to explain what is all included in this. In am looking at pupil services. What is that? ANGIE: So I do have a break down
on what is included in the sub-functions. It may not be all-encompassing,
but at least it will give you an idea of what is in there. The other special needs would
be things like EL programs, gifted and talented programs. Those are 17’s and that is
what is included in there. When we look at pupil services,
that’s everything that is, you know, I guess like a
pupil services department. I look at the
instructional services, teaching and learning. That’s really where
that department follows. The general
administration, that’s all over. That’s pupil
services, non-instructional, 4K, extended
learning, summer school, college and career community. Community partnerships. Executive directors, you
know, that is the Board, legal. All of those are in the
general administration bucket. Yeah? RHONDA: Did you say the
Board is included in general administration? ANGIE: Yes, like the elections. Like there is a couple of
budgets that are in there in that general
administration bucket. RHONDA: What do you mean
when you say elections? ANGIE: We have a small
budget for elections, like when we have, like,
the April referendum. We do get charged some by
the City of Green Bay and the county. So they’re, that Board
budget is included in there. RHONDA: And then I’m wondering
about central services, what does that entail? ANGIE: So you’ll see the
big drop from ’17-’18 of 59? That was technology. So DPI man dated we had to
change around sub-functions and also where we put object codes. So, in ’17-’18 you’ll see that
number and then you will see the hugw drop. That’s technology and they
actually moved to that other support services in 290. RHONDA: Thank you. BRENDA: Any other questions. RHONDA: Actually, yeah. BRENDA: Go ahead. RHONDA: You had mentioned
that there was some fund balance being spent into Fund 80. What is that used for? BRENDA: Fund 80 was
fund balance correct, when you were
talking about that? So it is a different fund
balance from the one we usually talk about? RHONDA: Right, yeah. ANGIE: Okay, so
included Fund 80, I mean, there’s really you know,
a couple of big pieces in here. SROs are in here that is
the line on 300 on contracted services. That is our SRO number. There are some salaries and
benefits that are paid out of the Fund 80. Some of those include
and I shouldn’t say some, because there are not many. But there are a couple on-site
coordinators for our after school programs, they
are budgeted in here. There is a volunteer and
a community coordinator, and then there is also a
community school resources coordinator that are budgeted
in Fund 80 and along with all middle school activities. Middle school
activities run through Fund 80. That’s really about it. So we have condensed that down
over the years since I have been here. RHONDA: I will be a little
bit more specific on that. So you took from the
fund balance in Fund 80, it was 136,000. So what did you actually
see that going towards? What did it compare to last year
and we didn’t take it out of last year, correct? So what did that actually come
from this time or used for that it was not used for last time? ANGIE: Sure. Really when you look
at salaries line item, just the jump from 406 to 580. That includes the raises. Some of these are new positions. So the site
coordinator is a new position. I believe the community school
resource coordinator is a new position. There were a couple of new
positions that were added to Fund 80. And then the SROs, of course, we
pay a little bit more for their raise and benefits
as well to the city. PETE: Also, I think it’s
important for you to take a look at again, and I am going to
come from the 30,000 foot view. When you take a look at
your revenue in Fund 80. It is a levy. Your levy hasn’t
changed since 2014. So the levy is 2,764,000. You are spending
more money in fund 80. Fund 80 is one of the funds
that you are allowed to carry a balance over. And so what is
happening in Fund 80, the revenue has remained the
same since 2014 and you are spending more money
than you are taking in. So you could raise the revenue
by taxing more for Fund 80 if you want to match
the expenditures. BRENDA: Go ahead. RHONDA: So you mentioned that we
are paying more to the city for SRO salary and benefits. Can you expand on that, please? ANGIE: So the SROs are
supported by the city. So when they give a raise or
when their benefits change, that cost is passed down to us. This is an estimate. RHONDA: I just have
one last question. I noticed on
page, let me find it. On page 19, it says 2019 actual
is one number and it looks like it went down for the
2020 budget for subs, teachers and sub-
paraprofessionals. I am just wonder about the
decrease in that and where that comes from? ANGIE: So, I am sorry,
Rhonda, is that the 201, 33? RHONDA:Um. [inaudible] RHONDA: Page 19,
1, 2, 3, 4, 5, 6, 7, 8 rows down,
sub-teacher salaries. It looks like the 2020
budget went down as well as sub-paraprofessionals
went down considerably. Actually went down. PETE: I’m going to come at it
from a 30,000 foot view again. If you take a look at the
expenditures actual in 2018, and again, this is a 30,000 foot
view from somebody that is not dabbled in the
66,000 line of code, to a great extent because
I’ve only been here a few days. But the expenditures, the budget
for 2020 are the same as the actuals for 2018 and close to
what the actuals were in 2018, and so potentially, there was
an aberration last year with respect to the expenditures and
we were requested to budget much more closely this year as a
result of money going into fund balance so there was the
directive given to us to have the budgets be as close as
we possibly could get them. RHONDA: So in a
nutshell, all right. So you were directed to spend
less in regards–I’m not really understanding
what you are saying, sorry. PETE: Our goal is to produce a
balanced budget so at the end of the year, there’s not a lot of
money going into fund balance and so that’s
where we are headed. BRENDA: The money they budgeted
was exactly the same amount as that was spent last year in
those two columns that you referenced. Andrew? ANDREW: But over all,
as a result of spending, reducing spending, we ended
up at the end of the year, having money go
into fund balance. A lot of it. PETE: I’m going to
say this one more time, 30,000 foot view, about a
penny on a dollar went into fund balance. You have all funds
budgeted of almost $400 million. 363 million, and you
put 3.7 in fund balance. So it is about a penny. It is pretty hard to
budget closer than that. But we have made
every attempt to do so. ANDREW: What I am looking
at as I am going into this budget, you know,that–I am not
interested in playing it so safe with projections that we have $4
million go into general fund at the end of next year. I would–I don’t think we
want to make a crazy budget projection that we know we
are likely to overspend. But there is a balance. You have to choose an amount
that you think will hit the nail on the head and one
percent, one percent off, was pretty good last
year, but there’s, I look back at how big that
number was at the end of the year wishing now that maybe I
had proposed certain things last year or we had done some
mid-year corrections of class size and what not, if things
were headed that way. So, I want to make
sure that I guess, I don’t want, I don’t want to
approve a budget based on ultra safe projections. I would like to budget it on a
safe moderate reasonable budget; does that make sense? PETE: I think that’s the budget
that you have in front of you is so that there is not 3.7 million
going into the fund balance. BRENDA: Michelle? MICHELLE: Just as a
follow-up to that, I think one of the things we
found and came across and this is what the
numbers are reflecting. Looking at areas where they were
significantly under spent in budget lines. One of the pieces that we
learned is that we actually were counting individuals who
may be out for a year, and who were not on our payroll
but they were actually employees who might have taken a year
and were not receiving salary or benefits. But they were counted for salary
and benefits so that was one of the pieces. But the other piece is that
the district has been seeing actually a reduction in
the number of students open enrolling out. So that particular line had a
much bigger line than we needed to compensate for that because
we had fewer students open enrolling out than projected. In addition to this year,
we have fewer students open enrolling out as well. But we have a better
sense of what that is. So there were some
additional resources there. I think one of the
things we looked at, too, and Angie and I went
through it; is that there are additional dollars. When you look at the pie chart
that Rhonda was speaking to. There are additional dollars
in elementary and additional dollars if you do a comparison,
to be able to those two different pie charts to see what
it looked like last year and if there is additional resource
going into instruction for elementary, instruction for
secondary which is a really important part of what
the Board is asking. And then finally, I know John
and Judy had met with me earlier today to look at class size and
I believe we have a plan that we are working on. And I think that now that
student enrollment is more in place as a result of third
Friday count and people settling in. We are in a, I would
say, a different place, and the schools
have had somee adjustment. We have some resource needs. And again, want to just make
sure that even though a budget line may say X, the reality
is we do what we need to do to support the children
and families we serve. Even though it’s
not on the line, we find the money
in a different line. And that has
always been the case. So, just put that
out there is all. BRENDA: Any other questions? MICHELLE: Can I
invite the people? BRENDA: So, we have–go ahead. MICHELLE: I just want to make
sure that tonight was the first go with the board deliberation
that took place October 7, but I want to make sure our
public comes out for public engagement on
Tuesday, October 15, and that’s at 6:00 right
here in the board room. But if the pubic is
not able to come, I know that you can weigh in at
the district level through the budget, or by–on our website,
but certainly ask and invite anyone to reach out to
their board members, their elected officials. And also Angie and Pete, I know
you offered to meet with any board members, but I would also
say that the offer’s extended to any community members as well
who have questions and have interest about our
budget proposed before you. The public hearing is then
Monday October 21 at 6:00, and then it will follow the
public hearing would be the budget adoption. So, again, we’d love for the
public to come out and engage in this very important budget. It is their budget, a budget for
the students and families that we serve, a budget
forward for our kids. So, thank you. BRENDA: All right, then, we need
to vote tonight to approve the budget, and this is different
from adopting the budget, which is what we do on the 21st. This just gives our
approval of moving forward, that this is the document
that we’re working with. So, at this point I’d
entertain a motion as listed. KAREN: I move that the 2019-’20
budget as presented be approved. LAURA: Second. BRENDA: Andrew? ANDREW: Yeah, so just to
be–we’re essentially approving this document as being the base
document that’ll go forward. LAURA: Right. ANDREW: And I think for me,
although I do have ideas for amendments, I would just as soon
wait to hear public comment and stuff before, you know, rather
than propose them ahead of public comments. So, I just want to make
sure that everyone’s clear, and for those who are
watching how it works that we’re approving this document to
be used in our next phases of–okay, thank you. BRENDA: When were you
planning to propose amendments? ANDREW: I… BRENDA: Because our meeting
on the 15th isn’t posted for voting, is that correct? Yeah. ANDREW: Right, that’s
just public engagement. I would assume at adoption is
when you’d have the final chance for–and maybe I won’t have any. BRENDA: Okay, but if you’re
proposing an amendment that requires a change, it’s
difficult to vote on that at the end if the amendment hasn’t
been proposed to the people presenting the budget. Because I’m not sure what kind
of amendment you’re thinking of. I’m just
concerned that if you… ANDREW: Perhaps I’m jumping
the gun a little bit there. I want to make sure that I’m
not locking myself in–I mean, after further research, maybe I
might have some–I might have some more questions about
whether the large increase budgeted in health insurance
might be too safe of a cushion, but I don’t know enough to
propose amending the book yet. BRENDA: Right, but why don’t you
ask that question today so that we aren’t–I’m concerned
we’re going to be faced with an amendment you propose
passes, and it requires work, we won’t be able to vote to
adopt the budget on the 21st, and I don’t know what,
there’s usually a deadline for, what is it? November 1. So, then we’d have to schedule
another board meeting to adopt the budget. ANDREW: So… BRENDA: Am I
correct in my thinking? I don’t want to cause a problem
if there’s not a problem, but I’m just trying to
anticipate–go ahead, Rhonda. RHONDA: So, I’ve watched
county board budget meetings, a lot of city
council budget meetings. I think at least
from what I’ve seen, other levels of government
do, you’re presented with the budget, you need
time to, obviously, I mean, we just receive
it, you need to absorb it, you need some public feedback. I can’t imagine how you don’t
do that first and then possibly look to making amendments
related to the budget to the feedback and then
possibly go through and, I mean–I’ve seen every
government body I’ve watched do a budget, that is
exactly how they do it. And so, they take the budget,
they look into possibly things they’re concerned with, or that
maybe the public is concerned with, and then maybe they come
back and then work that out. Yes, I’m sure it
does require work, but I think that’s
kind of our job. So, I don’t know how
that would not happen. BRENDA: So, if there’s an
amendment that requires a significant change in the budget
that can’t be done on the fly on the 21st, then we would have to
schedule another board meeting to come back and
adopt the budget. Is that correct, or can
amendments be done on the 21st on the fly? Because I’m a little nervous
about taking a $300 million budget and making
changes on the fly. I’m just trying to figure
out how to make–because I understand Rhonda and Andrew’s
need to have input and to have the opportunity to make changes. But the way it’s set up now
as the best way to do it. So, is there another way aside
from scheduling another meeting after the 21st? PETE: In the school district
that I had been superintendent and business
official for 15 years, we did a
preliminary budget in May. That would afford possibly the
opportunity for the board to take a look at some
of those changes. But the vast majority of the
expenditures of the district are in salary and benefits. And the board did approve,
we’ll use health insurance as an example, the changes in the
insurance policy and the cost thereof. So, that expenditure, you
multiply that by the number of policies that you have
contracted to provide employees, and you come up with the amount,
and that’s what’s in the budget, so you really wouldn’t be a way
to trim the expenses of a health insurance line item in
either one of the budget lines. I’m really confused about that. Or, any of the contracted
salaries with employees, you improved a pay increase, so
that’s been incorporated into the budget as well. BRENDA: Eric. ERIC: So, just I’ve not watched
county board or city budget meetings, but I would imagine
that they’re not dealing with third Friday count, which
determines a big chunk of our funding, and then have the
deadline of having to have it passed and
approved by November 1, maybe doing something earlier
in May and the spring so that we have a better idea of
kind of where things are at. But I would imagine, you know,
thinking about the way the state budget is, you know,
a much bigger number. But they don’t have a deadline
and sometimes they go over, and they, you know, they get it
figured out when they figure it out, and it doesn’t sound like
school districts are given that luxury. What I would argue and it sounds
like it being discussed is that school funding is
incredibly complicated, and how do we adjust it, and how
do we account for rural school districts and large
school districts. But I don’t know, again,
totally get that we want to get feedback, and I have not had
time to dive into it too much. But it sounds like the
process around school funding is different than that of city
government or county government or even state government. BRENDA: Kristina. KRISTINA: So, I’m going to
ask this question with all due respect to everyone in here. I don’t want this to
come across as negative, but if we are not wiling to say
that there is a period of time through which we could consider
any revision at any level, then honest question, what
is the point of the public engagement? And I mean that seriously. Because if it’s just–if it’s a
session of this is the budget, this is what we’re doing,
then it’s not engagement, it’s this is what we’re doing. I just think it’s we’re
giving mixed messages right now, and I totally agree with
you, it’s very complicated, I definitely don’t want to
have to do another meeting. We’re all very busy and I know
we have to approve this budget, but I do think it is critical
that we bring people in and say this is hard, and we
do have a deadline, but there might be some
things that we do have to shift, or at least we should
give consideration to. And I think our
community deserves that. And, again, I say that because I
don’t want to be here again and drawing this out, but if we’re
calling it community engagement and public engagement, then I
think that’s what we should do. BRENDA: I would say in the past
the community engagement has not necessarily changed
the budget that year. But we have definitely–most of
our community engagement over the last ten years has
been related to Fund 80, and we have definitely
used that to modify, but we’re in a little–we have
contracted employees that we’ve already promised, we’ve already
contracted with that are working till the end of June, and
that’s 85% of our budget, so in general the budgeting
process is a little tighter. And so, we do take the input in
and we look ahead to next year’s budget, because we make
budget decisions all year round, all year long. We make new programs,
we approve curriculum, we’re constantly
making budgeting decisions, and this budget really is a
symbol of the work that we’ve done over the past year, it’s
not something we’ve just pulled out of nowhere. So, it’s–but I
get what you say. It is difficult with the
timeline that we have to be able to do what we’d like to do. We don’t get our
third Friday count until, you know, six weeks later
we’re expected to approve a budget–toss out a budget. Katie? KATIE: Can I toss out a
little–maybe a couple of possibilities. One, is it possible to schedule
a post–a special board meeting on the 15th after community
engagement to allow us to vote on any amendments? Otherwise, if people feel
compelled to make amendments on the 21st, we are meeting
again as a group on the 24th. Could we post that as
an opportunity to vote? Just to have kind
of place holders, you know, posted on the
15th and posted on the 24th, just to give us options. 24th we’re meeting
in the afternoon. BRENDA: Right. KATIE: And is everyone
going to be here for that one? Just to give us some leeway
in the event we do wanna. And if we don’t need
it, we adjourn it. BRENDA: Go ahead, Rhonda. RHONDA: Okay, so if I’m
hearing you correctly, everyone, so this is basically,
this is a body of work that’s been going on all
year, and so it’s kind of, to some degree, what’s
crafted into this budget, to some degree,
it is what it is, right? Because as you
said at the table, that that’s what this is. So, my question is, though, as a
board member who has to approve the budget, who can’t obviously
make decisions at budget time, I think it is an interesting
thing to consider when would we ever make changes, cuts,
consider priorities in a $279 million budget? When would that time be? BRENDA: We do that all year
long when we’re looking at priorities, we’re looking
at class size for this year, we’re considering
class size for next year. That’ll be a budgetary
decision when we make it. We’ve cut positions,
we’ve added positions, we’ve approved curriculum, we’ve
decided that we want–we’ve hired more social workers,
we’ve got the mentoring program, although that
doesn’t cost us much. RHONDA: Okay. BRENDA: We’ve got bus
aids that we approve. There’s a lot of
things that we approve, and as we look at
that through the year, we’re always looking at it as is
this enough of a priority that we’re going to add money
to our budget next year? And those are the decisions
that we make all year long. RHONDA: So, if a person… BRENDA: And if there’s some
priority that you’re interested in looking at, then that’s when
people come up with–come with agenda items and things
that they would like to see us consider for next year’s budget
that we plan for during this school year. RHONDA: Okay, so I think
it’s important to remember this conversation we’re having right
now when we do go into contract approval, contracts,
looking at contracts, because that seems like that
might be the actual time to have those discussions, and
not at actual budget time. I’m trying to identify, because
I will be asked this quite a bit, of you didn’t agree
with some of these things, but nothing happened with it. So, I’m just trying to
understand when the optimum time is. I know I had mentioned in
our–in our facilitation meeting, that there are
districts that are starting to have budget
committees, and that, I believe, allows for
true community engagement, so that they’re
part of creating a, you know, a budget that
essentially they pay for. I’m hoping that we might
entertain that because I think that would be a–that looks more
like engagement than what we’re doing. BRENDA: Okay. Michelle then Andrew. MICHELLE: One of the things
we were faced with this year, obviously, we didn’t
know what the budget was, because not only the
third Friday counts, but the biennium budget. Angie said it
during the presentation. So, we got the
number for the budget, the budget was approved
in Madison in what month? July. So, then we got the
third Friday count. So we’re always behind in terms
of we’re always working the work before we even know
what the numbers are. What you’re proposing, Rhonda,
I think is a really great idea. We start staffing
and budgeting, I mean, we can start right away because
at least we know what the budget is. We don’t know what
the numbers will be, but we can make a guesstimate
as to what it is based on projections and
start that process. And I know there are
other districts that do that, and we talked about that at the
meeting that I was at with you. So, I think there was
great benefit in that. I think sometimes what it
affords us the ability to do, especially with community,
is have an even greater understanding what
our budget really is, and what the
complexities are that, you know, there are so many
different things you can’t do, or can do, within timelines. And so, I think it’s
a great opportunity, and I will go back
and set some time up. I’m very much in
support of that, especially when we have a real
clear opportunity to even know what the money is. that’s–you don’t always know
because of the biennium budget coming out of Madison. But this one is
very predictable, which really helps. The other thing, too, is again
it really affords those involved to really
understand school finance, and that’s not an
easy–that’s not an easy thing, having spent many years trying
to understand revenue caps and limits and what, you know,
when you talk about what an extraordinary difference
that will make in our budget. When you raise the revenue cap,
it means it’s there forever. When you added a
stipend, it can go away, we’ve seen that as well. So, I’m going to turn to
Pete and Angie and say, you know, I’m thinking
after the first of the year, but we can gear up for that,
knowing that the staffing is coming and so forth. But that would be
the time to do it. BRENDA: Andrew. ANDREW: So, I guess I can
only ask this at a very high level overview. But looking at–looking
at the health insurance, and I know this topic had come
up at other times throughout the year. Budgeting for this large of
an increase of $5 million, we’ve only budgeted that large
of an increase once before in recent history,
which would be 2016, where we budgeted a
$5.2 million increase. It did go up 4.7
million in actual spending, so that was close, it
left a little over. I just want to
make sure, I guess, that if we’re budgeting, if
we’re choosing the budget figure of 30.8 million for
health insurance next year, I would just not–I’d prefer
not to have that come in at 27 million and there’s $3
million more going into general, general fund, I don’t
want that to happen, and to find out the reason is
that we budgeted hyper safe for health insurance, instead of. And again, I’m not
saying budget aggressively, you’re not going to budget
health cost to go down by 5 million for next year,
spend the money, and then be 5 or
$7 million short, of course not. I’m just saying are–can–are we
being–are we doing a moderate safe health
insurance projection, or are we just trying to set
something so high we can’t be surprised? ANGIE: Yes, so I can speak to
that a little bit, Andrew. The budget estimate
in the 2020 budget, so we have vacancy positions
out there that we have to fill a spot for. Okay, so if there’s a salary out
there that we have a position that we have not filled, we
do budget for the family plan. We are conservative
when we budget for that, because like you said, we don’t
want to find ourselves on the other side of it
and be in the red. ANDREW: So, how many of
these–how many of these unfilled positions are there? ANGIE: I can’t speak to that. I get that information
from Human Resources, and then it’s
pulled into the budget. ANDREW: Okay, that’s fine. Then certainly to budget, and
what I say when I’m saying here, does not apply when there’s five
or six of them or something but assuming that
there’s quite a few, and they come and go
throughout the year, statistically speaking,
given that there’s a certain proportion of
people on each plan, it–if–again, if the
numbers are sufficient, and it reminds me of discussions
that the city was having about that there’s two
teachers who work for the city, yeah, maybe you
budget those, that, and they would budget it as both
family because there’s only two. There’s a reasonable
chance–there is essentially zero statistical chance that
say 20 out of 20 would be family plan, you could budget
for 15 to be family plan, and that would still
be hyper cautious, correct? ANGIE: I can see
where you’re coming from, I just don’t know how to
get to that percentage. ANDREW: Okay, I’m done. BRENDA: Kristina. KRISTINA: Thank you. I just wanted to make a
couple of comments to go back to Rhonda’s point about the budget. Last year the organizational
support group used to meet. And I remember last year–we
didn’t do that this year, but we had met before this
meeting to go over the budget, correct? Andrew, you were there, too? So, we like met as an
organizational support work group, correct? ANDREW: About the
health insurance? KRISTINA: Well, also
about the budget before, like the whole thing. ANDREW: Did we? Oh. KRISTINA: So, I just–sorry. I just would like to sort of
make sure that happens this year, because that could fill
sort of a gap of what Rhonda’s talking about, because you
could also then invite everyone. Because you could start
meeting, doing that group again, and we could also
invite other board members, if they wanted to. But I also then, to
go back to your point, though, that perhaps there is
something in the spring or some mid-year checks,
because, Brenda, your point of saying we do
that all year is really valid, but it’s also really
difficult to when we’re, like, doing those chunks to sort
of see it how it works in the big scope of the budget,
especially those of us who aren’t budget nerds, I say
that with a lot of love. Right, so maybe we could talk
after the meeting about how that looks, but I do think there’s
a lot of value in having those conversations more strategically
with the board throughout the year. So, that when were sitting here
we have sort of ongoing learning opportunities,
because it is a lot. PETE: I like the love for those
of us that enjoy the budget. And I am one of them. You have a unique
opportunity as well, because this coming year,
2020-2021 you have a biennial budget that you’ll have a known
amount of money that you’ll have to work with. Prior to the budget
being approved in July, you really didn’t know exactly
what the legislature is going to do. So, there is an opportunity this
year to do that education and to do some preliminary meetings. You know, there’s–a preliminary
budget could be done as early as May or June for the
coming school year. KRISTINA: Thank you. BRNDA: All right, so we
have a motion on the table, and it’s been seconded. So, we’ll call a vote for that. SANDY: Maloney? KATIE: Aye. SANDY: Warren. BRENDA: Aye. SANDY: Vanden Heuval. ERIC: Aye. SANDY: Sitnikau? RHONDA: Aye. SANDY: Becker? ANDREW: Aye. SANDY: McCoy. LAURA: Aye. SANDY: Shelton. KRISTINA: Aye. BRENDA: Carried 7-0. And I want to thank
Angie and–mostly Angie, Pete? Okay. KRISTINA: Good job, Angie. BRENDA: Mostly Angie for
all your work on this, and it’s a really
good presentation. I think laid it out
very clearly for us, so thank you for all the work. PETE: Angie informed me this
morning that she was awake at 1:00 thinking about today. She did a great job. BRENDA: Yes, she did. [laughter] KATIE: Sleep well tonight. BRENDA: And then we
have refunding of debt. Oh, let’s see
what’s the date today, the 7th? KATIE: The 7th–the 15th? And the 24th just
to give options. So, we’re covered and
we’re not worried about that. BRENDA: So then what, you just
post it and say it may or may not happen? Or we can just… SANDY: I have to post them. I can’t say, if needed. KATIE: But you–how soon do you
have to post them on the 24th? BRENDA:
Technically it’s two days. KATIE: So, we would know by
the 21st if we need the 24th. So, could you post it? BRENDA: On the 22nd. That works, right? SANDY: And then
nothing on the 15th? KATIE: Well, the 15th would
give us an option to vote… BRENDA: On any amendment, yeah. KATIE: And still take
action on the 21st. I’m just trying to
keep options available. BRENDA: So, that could just
be immediately following–that could be a part of, of course,
you’ve already posted that meeting. SANDY: I didn’t. Well, yes, I did. I did. It is. BRENDA: And so, it could just be
part of that 15th meeting after. SANDY: A special board meeting? BRENDA: Public engagement,
special board meeting. With the option, I mean, then we
won’t have amendments to post on the agenda. SANDY: So, then your agenda item
is going to be deliberation of budget again, or what do you
want the agenda item to be? BRENDA: Budget deliberation. Yeah, and then how do you–how
do you–by the fact that you call it a special board
meeting, we can vote, or do you have to indicate
that voting may take place? SANDY: Potential action. BRENDA: Okay, you just put
potential action on the agenda. KATIE: That would
be the same motion, either approved
as written, or… SANDY: Well, we just did. BRENDA: But not on the 15th. KATIE: What’s going
on in the amendments, vote on amendments. SANDY: Okay, thanks. BRENDA: So, whatever you, yeah,
however you want to put that. SANDY: Okay. BRENDA: And then the
24th would be at 2:30. SANDY: But that I’m not
going to do until the 21st. BRENDA: Right. But I’m just clarifying
that that’s a 2:30 meeting. Yeah, right, okay. Oops, thank you. Thanks, Pete. [talking all at once] BRENDA: All right,
so I don’t–Angie, do you want to
introduce Mike Clark, or I can. ANGIE: So, Mike Clark from
Baird will be going through the refunding proposal that we
had spoken about during our presentation. Most of you problem know Mike,
but I’ll have him introduce himself as well. MIKE: Good evening. Mike Clark with bear,
nice to see you again. Baird work has worked
with the district for, I don’t know how
many decades now, in terms of debt issuance. And the district has a
refinancing opportunity. I just want to give you a little
background before we get into the document we just handed out. The issue we’re discussing
relates to the last debt referendum the district did. And at the time the direction
was to give flexibility to potentially go to referendum
for other maybe capital facility things a little bit sooner than
it looks like the district’s going to end up going. So, that’s a big part of why
you’re able to shorten the debt, which we’ll look at
in just a second. The other thing is for
newer board members, the district, for a long time,
has kind of leveraged its levy a bit by doing defeasances,
or pre-funding debt, for savings for the tax payer. And everything we’re talking
about tonight is savings for the tax payer, substantial savings. These dollars cannot be
utilized for any other purpose. They will go to the taxpayer. So, with that background, if
you open up to the first page, you’ll see this very busy
chart of interest rates. Basically what it says
is rates are really low. If you look to the
far righthand side, there’s
different–there’s 10 year, 20 year, 5 year rates. And you can see that
rates are very low, and you’re probably aware of
this if you’re a CD investor, or you refinance your
mortgage or something like that, it’s really a great
opportunity to revisit debt. And to that end we’ve–we looked
at–if you go to the next page where it has lots
of little numbers, if you look at the
issue of July 12, 2017. At the time this issue
was a 20-year issue. And again, the idea of going
that length at that time was to allow the possibly of
rolling in some additional debt. Now, that seems to be
put on hold for a while, so the bulk of the savings that
we’re going to be talking about is, one, lower interest rates,
but shortening the term of the debt. So, you see before refinancing,
the debt goes out till 2037, and then if you come–if you
move to the after you’ll see that the last payment on the
remainder of the existing issue that does not get refinanced,
and then the new issue that’ll be even shorter is
paid off in 2027. So, what it does, it will
raise your payments the next two years, but the district has a
large drop in its existing debt payment, the district has also
done some defeasance in the past to keep that debt
service higher. And the end result, if you drop
down to the lower right corner, you’ll see the potential
growth savings of $2.9 million. This is using interest rates
that are 20 to 25 basis points above existing rates. So, a conservative
rate, rates do jump around. There’s a lot
going on in the world. And–but we’re very
comfortable with this estimate. The bottom line is it
would reduce the debt cost. It would also
allow the district to, in the next two to three years,
to look at potentially some referendum options. But again, it’s also positive
for the credit rating to shorten up your debt to this extent. So, taxpayers will save a
significant amount of money over the life of the debt,
it’ll position the district to consider options in the
relatively near term, and it’s a positive from
the credit rating standpoint. The one thing this is, you’ll
notice it’s a taxable general obligation bond, meaning the
buyers of this debt will pay tax on the interest, and typically
school districts are always tax exempt. The reason it’s taxable is
the IRS does not allow anymore, it did in the past, to utilize
tax exempt rates for advance refunding, in
advance of the call date. And the call date on
this issue is ’26. So–but you could do
it on a taxable basis. The issue this short,
this isn’t that significant. And again, the savings is such
that it’s substantial enough to do it on a taxable basis and
you can look that in that, under the new–under
the after refinancing, you’ll see the taxable
issue with $39.8 million, you’ll see that 26 million of
that is paid off in the first two years. And the rate difference in
those first two years is not tremendous, and the fact that if
you would wait to see if the law ever changed, it may not. Even if it does in two years,
you’ve gone up two years of interest. And if interest rates have
moved higher by the time the law changes, you might be paying
higher interest rates anyway. We have no real concerns with
interest rates with utilization of the taxable GL. So, with that I’ll
conclude my comments, take any questions
that you might have. This would be coming back
to the board on the 21st. BRENDA: Any questions? No? All right, looks like we
don’t have any questions. So… MIKE: Thanks. BRENDA: Thank you very much. MIKE: Nice to see you again. BRENDA: I assume if board
members think of questions, I assume your numbers here. MIKE: Or through Angie or Pete,
or contact me directly is fine. BRENDA: Okay, thank you. All right, so with that we–I
would entertain a motion for adjournment. KATIE: So moved. LAURA: Second. BRENDA: All in favor? ALL: Aye. BRENDA: Opposed? All right, we are adjourned,
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