Welcome everyone tonight to our June 1st, it's already there meeting. Um I will look for approval of today's agenda. Chair cloud, I'd uh recommend or I ask for a change in agenda item moving
52 the approval of 2026 27 preliminary budget down to below 54 55. So then moving 52 to 55 and then moving all the numbers up 5.5. Get that? >> Okay.
>> So we can talk about the budget stuff after some of these decisions. >> Make the other decisions. Okay, >> sounds good. Anything else in that revision? So we again would remove uh be 51 and then we go to 53, 54, 55 and then
52. Okay. >> Okay. >> We have a second. Any other discussion on the uh changes? All those all those in favor signify by saying I.
>> I oppose the same. Okay. Motion passes. And so then let's get into uh our targeted services uh yearly update. Jamie. >> Oh, it's not on. Sorry. >> MTSS coordinator.
um district literacy lead and I was our tiger tales coordinator during the school year and just wanted to tell you a little bit about how things have been throughout the year. So hold on let me make sure it's working.
So the mission of targeted services is that it's an intervention to help students that are behind their peers and it it's to help them be successful in the traditional school model. And eligibility for our program that we
have here at Alberly Area Schools is that the student needs to be in kindergarten through 8th grade. They have to be identified as struggling to meet grade level standards and they need that additional time to develop basic academic or behavioral skills and there
are specific things also that are required under the ALC programming that the students can qualify with and again only if this is through the ALC and only the ALC's are eligible to provide those targeted services. So all
of our services go through the ALC here at Albertly Area Schools. The programming must have a summer school and a during school year program and they are enrolled in what's called targeted programming through the ALC and
they generate revenue beyond what the normal school would get, normal school day student would get at the 1.0 and they generate that 1.2 cap. So why do we have targeted services? It's to help prevent that summer learning loss that we have over the
summer when the kids are at home. If they don't have that structure to help them continue learning, then sometimes they have that what they call a summer slide. And um it's to provide those academic, social, and emotional learning. So, not only are
they getting math at at summer school or the targeted summer program, they're getting reading, they're getting elect um elective specials. I think this year they might be getting fied. I know they have in the past. The fied um they've had art in the past. They've had music
and I think is Mr. Fiscus coming again this year to do rock. Okay. The kids always loved the rocketry with Mr. F Mr. Fiscus. I think that was a third grade student. And the program is very learner focused and they have um differentiated
instruction. They do a lot of the really great reading that they do during the school year for our younger students that need those foundational skills and they have um just different pieces of math that go along with what they're already doing in
their math class. So, it's just that continuation but also catching up what they've missed. And it's a little bit smaller than the classroom that they have throughout the school year. So they get a little more uh differentiated and individual time.
So that it's very helpful for them. And the summer curriculum is obviously linked to the school year. And I have our enrollment for the fall. And I put things a little bit differently. I wanted to make sure you understood that we had we had a fall enrollment and then
we had a winter enrollment. There was a gap in between the two. So I just wanted to make note that the enrollment was different between the fall and the winter. So our overall um total was 121 for that fall time and we started in
late October and we went through I think it was the last of no last day of November, beginning of December. It was right in that area. We were going to have 16 students signed up for the middle school. However, there were more teachers signed
up than we had students for. So, we had to um let them know that, hey, we can't have that many classes because it wouldn't be fiscally responsible to have five teachers, five classes. So, um there were just some different things and we ended up not running that program
this year. And when we came back in February, 112 students returned with us. And that was just a difference from the 121 in the fall. We did allow students that were outside of that
one mile radius. So if they lived less than one mile, we also would provide busing for them, hoping that that would help some other students because a lot of parents were concerned with the wintertime and the late evening and it being dark that the students would be
walking home late. So we extended the busing for them. And then our enrollment last year, I just wanted to look at the comparison between last year's extended year. So last year's extended year enrollment was
265 and when I checked our numbers right now for this summer, 300 kids. So we have quite a few more kids that are enrolled at this moment to um our summer program. And then I went and I dug through our students that were in the school year
program to figure out where did we see improvements with their reading and their math. So this is our kinder and our first grade students. And I looked at the green on there are those that are on track. So those are their low risk. They're meeting the standards. So our
overall on the left would be the district. So kindergarten in the fall was 46.2. 2 and in the spring was 59.7. That's overall district. Our kindergarten students that were in targeted services in the fall and in the spring did not quite meet. We had a very
small number of kindergarteners. They were in addition to our first grade class because we did have one small first grade class. So, we allowed kindergarteners to join. Um for our first grade, 32.8% 8% in the fall were
proficient in our reading and then um in the spring 35.7 and that's overall district and then in the fall for grade 1 15.4% for targeted services to 25.6. So it
made a nice difference there for our students that were in our targeted services um extended school day program. Then grades two and three. So grade two overall the district 30.8%
were proficient in the fall and then 45.3 for the district. When you look at our targeted services, our second graders made some big gains here. 12.5% were proficient in the fall all the way up to 37 and a half%. So that's about
three times. I I'd really like to see that number there. That was really good. Third graders, 44.8 overall district and um in the fall. The spring 45.8%. So we saw a jump there. And then our targeted
services students, we had 17.9% in grade three that were proficient in their reading and then 22.5 in the um spring. Then if you look at our fourth and fifth graders, our overall district A reading
in the fall was 50.7. Our spring 41.2 and then our fifth grade were 31.6% proficient in the fall and 29% in the spring. And then looking at our targeted students, our targeted services
students, grade four, that was 28.6 six in the fall and then 14% in the three, 14.3% in the spring, and then um our spring for fifth grade was 5% compared to the zero in in the um fifth grade. I
think more time would have helped us receive better um improvement scores for some of our students. We just had a limited amount of time this year just with different things going on and having the enrollment start for uh it started a little bit later and then it
stopped for a period of time and then started again. I think had it been continuous we probably would have seen some greater growth and then we'll look at the reading or the math, excuse me. So in the fall kindergarten went from 65.2 2
districtwide to 68.5 in the fall. Grade 1 was 42.9% and then 56.3 districtwide. Kindergarten as I said there were only three kids. So, um, it's hard to make a big gap, a big
change there, but in the fall, 0% were proficient and then in the spring. Then if you look at grade one targeted services math, 20.5% were proficient in the fall all the way up to 46.2 in the spring. So, it looks like they were
doing a lot of math in that class time. And that's good for them because we do need to work on math quite a bit, too. So, that's some really good growth there. Then um grades two and three, 41.2% in the district were proficient in
the fall all the way up to 50.2 in the spring. Grade three, 54.3% all the way to 52.2. That went down some. Um I don't know, maybe it was just that a lot of testing in third grade we
do have. So, and then our A math for our grade two that stayed the same at that 0%. And then grade three went from 23.1 to 20. And then grades four and five, we saw some good growth in the district at
grade four from 51.9 to 54%. And then it went down a little bit. Grade five, 49.2 to 44.9. Grade four targeted services, they stayed about the same. Well, they stayed the same. And then our grade five went
down just a little bit. So, I was looking at our programming and staff. I kind of wanted you to know a little bit about how many people we had this year. So, yes, we had a program at Halverson Hawthorne. We did not have one in Lake View. We had one at Sibi and our
Southwest was canceled. So, when we look at how many staff applied, Halverson had four, but the numbers were low, so only two taught there. And then Hawthorne, three applied, three taught. Lake View, we didn't have any apply, so we didn't
have any students there. Sibly, three staff applied and three taught. And of course, at Southwest, it was canceled, but five had applied. And I do have, if you are interested in more numbers, I looked up a few more after that. I thought it might be interesting just to look at the
comparison over the years. They're not on the board there, but I looked at 2324. When we looked at the extended school day, there was a lot of extra funding I think at that time, maybe some ESRE dollars. So, there was a a bonus teachers got during that time. And
during the school day program, there were 18 staff that provided services for students. So, there were 18 classrooms. Actually, there were a few more than eight because they split some of them split classes, but there were 18 classrooms that fall. And that summer, 17.
And then if we look at 2425. So then that's when that bonus was not there for the staff. There were 11 for extended school day and 20 classrooms in the summer. Then this year for the school day there
were eight classrooms in the school year and right now it's looking like there are 12 for the summer. Any questions? Which building will have the summer programming? >> Um, that will be at Lake View. Okay.
>> And do you have any theory on the upper grades of their percentages going down in targeted services? >> Do I expect them to go down for the like? >> No. Do you have any theories why maybe we're not showing the growth in the upper grades >> for um academics,
>> targeted services, the A- math? >> Um, >> you know what I mean? I if we looked at reading, I think a lot of if you look over the reading scores, a lot of it has to do with missing just little pieces of reading like the morphology or the word recognition and decoding like that
multi-elabic word reading. When we took our captive read basics for all of the students that weren't proficient when they took their A-reading across the district, there was a significant number of students that need that multi-elabic word reading instruction.
In fact, we I actually went to the middle school. It was really great to see the teachers involved. I went there and I showed them a little bit about how to do multi-elabic word reading instruction. They dabbled for a little bit and then Mr. Johnson went back and he'd follow up with them to see how they
were doing and to give them extra ideas. Our FIAD teacher was um counting syllables in the classroom. So he he was even implementing what can I do to help these kids, but that's definitely an area we need to work on.
>> Yes, you're welcome. >> Thank you, Jamie. >> Yep. Thank you. >> Okay, let's go on to uh 5.3. Uh we chang it around, Paul. >> Okay. Okay. Just want to make sure uh we
moved you down to the bottom for the preliminary. Oh, I'm sorry. Final budget. Got it. I jumped over one. 501. Yes, sir. Go ahead. >> Okay. All right. Thank you, Chair Clott, school board superintendent Hy as always. I appreciate the opportunity
to present this evening. um and a special final presentation for you uh this evening. So, just want to say thank you to the board for your support over the last few years. So, um
all right, make sure the clicker is working here. So, we'll start with the final budget uh and then uh you moved the uh preliminary down uh to later in the agenda. Um so we can uh look for at the conclusion of the summary of the or the presentation of the final a motion
for approval of final budget move on and then we'll have a second action item later then for the approval of the preliminary. That's no problem. All right. So uh just a reminder I always like to review um with the board and the community that we we have five
main funds um as a school district. There's more than these five, but these are the main uh funds within our uh finance software. So, we have our general fund, our food service fund, community service fund, building construction fund, and our debt service fund. Uh and so for the board and in the
board packet for anybody in the community that has uh followed uh our board packet, um we should have two spreadsheets for you to review today and we'll try to take a little bit deeper dive into each fund balance that's outlined within those spreadsheets. Um, and for the board, uh, in the past, this
has been a challenging one to print in very small prints. So, I have, uh, distributed, uh, 11 by7 spreadsheets for your review today as well. So, we'll try to, uh, point out where we're at along the presentation as we go. All right. So, a couple notes about our
uh, final fiscal year 26 budget. Um, our enrollment projections for fiscal year 26 are on pace. So, um, if you, uh, reflect back to fiscal year 25, we had some challenges pinpointing where our final enrollment may land and that makes it hard to determine what we will
see for actual revenues in that year. This year, our alignment or our enrollment aligns better to our projections. Um, in fact, our our latest uh, calculation, we were within 480mm of our revised budget ADM projection. So, we decided to leave the revenues um for
the most part intact. We didn't change any of the formulas or or calculations for the final revenues for the 26 budget. Um one item of note and this is a good time to bring that up is is we are looking at projections still, right? So, this budget that's presented this
evening is where we project to end fiscal year 26, which will conclude in June or June 30th of 26. So, we may still see invoices that come in or statement or bills that come in still in the next few months and then the board will receive uh we a presentation of our
uh independent audit that typically takes place in the fall. Um and so our auditor will be here with our our um future finance director to present the audit results. That will be your actual results from fiscal year 26. So these today are projections where we believe
we will land um and where we believe fiscal year 27 will look with our earliest projections at next year. So uh continuing on um we will not see any significant changes to our food service projections. Um we uh know there's some
challenges in spending enough money in our food service fund balance. So we'll kind of highlight that a little bit. Uh our community ed budgets have been updated and revised to our best guesses for this year and next. Uh compliments to director double for getting uh some revisions in place and our fund balances
look great there. So we'll we'll highlight those briefly tonight. Um specifically regarding our general fund, our third party billing, um we will have for fiscal year 26, we've increased our our projected revenue um and a decrease
to the expenditures. Our utilities are on track. We'll highlight that. Our activity budgets uh we have to make some adjustments there. We'll highlight those just at a high level tonight. Um I want to speak to a process change for our funds that we house our readact um
revenues in and our expenditures in a little bit of a change from uh our adopted budget and then we'll look at some uh detail summaries by fund which would correlate to your spreadsheet for compensatory or basic skills funding capital funds and our LTFM funds and uh
those will all have a connection to our fiscal year 27 budgets as well. So uh the good news is our fund balance is projected to be uh to meet board uh policy where we strive to maintain a 12% fund balance. If you uh reflect back to when we make our revised budget and our
financial projections and we establish reductions for the year um we try to get just above that 12% um with those reductions and it looks to be that we're on pace for those um projections. So we'll take a little bit deeper dive here
in the general fund. So, um this first slide here, uh just a couple highlights. Um our utilities, as I mentioned, we are on pace. Our final budgeted amount for expenditures for our object 330s, which is for all of our um utility costs. Um
these would mostly fall under our unassigned category. They won't be its own line item on a budget. Um some utilities could be charged to other restricted funds depending on what's allowable. But year-to- date for all of our district-wide utilities, we've spent $784,430
and our budget's $1,173,74. So, I do believe we will come under, but again, we will wait for those invoices from our utility companies uh in the coming months and we'll see the the final in the audit. Regarding our activities, um
these seem to be increasing year-over-year. Uh I've included a couple year summary of uh expenditures through the month of April and then through the month of June through the end of our fiscal year. So you can see contracted services for object 300 codes. Those might be things like
officials or transportation when we think about our activities, right? Um and you see this year through April, we've had $46,140 and projected um closer to 456,000 for the end of the year. So, um, obviously
that's a large increase from years past. We want to keep an eye on that as we move forward. Um, supplies and materials for activities, um, through 24 or through April um, of this year, we've, uh, seen 144,432.
Um, and we're projected in in spring sports are wrapping up, so we're projected about 153,000. Some um, I want to note that there are some revenues that will offset some of these expenditures. So, for example, should our baseball team want to have a booster funded piece of equipment or uh the
dance team want to go to a tournament where they're going to donate the uh revenues so that we can afford to go on the trip. There are still revenues that come in that offset some of these expenditures. Um so, just as an example, you may see an increase in revenue and
also an increase in expenditures, but what we are seeing is the expenditures are outpacing those additional donations that are coming in. So, um, so, uh, the point being your future finance director, this should be a point of emphasis to make sure they're meeting
with your future activities director and, um, taking a deep dive and establishing what we feel is appropriate for, um, expenditures and activities. All right. So, operating capital. So um the if you're following along here on the 2526 final budget spreadsheet along
the left hand column there is a class. So these are separated by restricted funds and then they're separated by funds. So the first large grouping is your general fund. Then after the next blue line would be your food service fund. Then after the next blue line would be your community service fund or
community ed. After the next one, then we have construction fund, debt service, um custodial scholarship fund, uh our insurance fund and our um OPE. So, broken down by which funds and then which class. So, in the general fund
towards the top, class 424 is restricted for operating capital. And just wanted to pull this line item out to highlight. So, you notice all the different columns at the top, we have our audited fund balance from this fall. The auditor told us where our final fiscal year 25 fund
balance was of $264,081 in operating capital. Um we are projected to receive so our our final projection for fiscal year 26 just over a million in revenue. So um the adjustment that was made here and the
reason that I wanted to highlight this is in the revised budget we had additional expenditures coded here. Um I think it was closer to $1.2 million in capital. We made some revisions to maintain our operating capital fund balance. So um if you look the expenditures are closer to equaling the
revenues here for the final budget. Okay. The next class I would like to focus on is class 441. Um this uh is called basic skills or uh formerly called basic skills. Now the the new term for basic skills is
compensatory funding. So um what similar to uh the um capital we are shifting some expenditures this year from uh basic skills or compensatory to our unassigned general fund and this will allow us to uh maintain or build up our
our compensatory funding for future fiscal years as well. Um and I really should have included two lines here but one's more sign significant than the other but classes 456 and 457 are restricted for read act. There's no new money for read Act. So
that is a statemandated um literacy program. Um and it can be used for teacher compensation and also for um materials or curriculum depending on which class. Um but there will be ongoing expenditures for the readact and
we are going to realize those year after year. So the change here is that we originally were not going to have any expenditures listed in class 456 or 457. Um, but it made sense to track these expenditures using the class that was built for the readact so that we can
follow how much we're spending on the unfunded mandate. Okay. So when we see this, you're also going to see a number in the budgeted transfer column. That number is going to match the excess beyond any revenues. So this year it's going to be the difference between our
expenditures and the fund balance. Future years it will just be the expenditures that is a transfer to the unassigned. Right? So, we are um basically saying we will track it using code 457 or 456 and then we will use unassigned funds to pay for the unfunded
mandate, but this allows us to have this on the books. So, if we do need to analyze what we're spending on the readact, we have a good handle of it. Okay. Um the next fund I wanted to point out and emphasize this evening is the long-term facility maintenance uh fund,
which is class 467. Um, this fund historically we've had a negative fund balance for a number of years. Um, we were as far as over 700,000. I think it was closer to $750,000 in a negative fund balance. That's allowable with MDE as long as you
do not exceed your annual revenues. Um, and if you look here, we're our revenue is about 972,000 uh for long-term facility maintenance. So, we were in a territory where we needed to to write and rectify that. And I I'm proud to say we've done a good job
getting back to um a positive. And we'll see in fiscal year 27 an even more positive note there. Um but for the final budget, what happened was our construction funds from fund 06, a different fund came in under budget. And as I reached out to um our financial
adviserss on what how what else we could use for those uh from fund six um the allow allowable expenditures because those were um facility or long-term facility maintenance bonds we could use fund or class 467 from the general funds
any projects that would qualify under that. So we took a roof project and an HVAC project that qualified for long-term facility maintenance. We coded that to fund six and fund six should be exhausted at the end of this fiscal year. We'll see a note on that a little bit later. But the result of this of
being able to use fund six for those two projects was less expenditures to the general fund long-term facility maintenance this year. So if we look at that line 467, you should see our expenditures were closer to 695 695,000 um which were higher closer to 900,000
plus in our um revised and preliminary budgets. So, we're going to see an improvement to our fund balance in LTFM. All right. So, one other note we mentioned and we highlighted in the general fund was thirdparty billing, which is medical assistance. Um, we're
hearing from our consultant who kind of tracks um how expenditures and revenues are going along with uh third-party billing that we will see a little bit more in revenue this year. In the revised budget, we had $950,000 slated in revenue for medical assistance.
um the um expenditures this uh final budget we decreased a little bit because we're also hearing that in fiscal year 27 we will see less revenues. So the goal would be to build up a little fund balance for fiscal year 27 so that we can use um that if necessary with less
revenues coming in. So here's a couple snapshots of our our general fund um revenue and expenditures. So, here's revenue. Um, I like to point out that the bulk of our revenue comes via state aid. And this this has been consistent year after year. Um, you know, above 80% of our
revenue is coming via state aid. Uh if you think back to our levy presentation, we talk about the shift going from aid to levy. But even that pool of bonds um those those uh revenue streams that are associated between state aid and levy um the bulk of state aid will always come
from or bulk of our revenue will always come from state aid. But we may see on the fiscal year 27 um revenue slide um just want to point out we might see a little bit larger local levy uh because of those property value changes and that shift to levy. So something to keep an eye on as we get to
that slide later this evening. As we look at expenditures um I want to highlight a few things. Um we've kind of put all instruction and student support into one category that makes up over 80% of our uh expenditures. Um 81.69% 69%.
Um, and then administration is under 4%. So, in terms of um, you know, a good ratio of administration, that's that's getting on the lower end, which is um, probably uh, what people want to see when we're making reductions. Now, highlights of our final budget. Um,
significant changes by object. So, this is just categorizing or looking at this differently. our general fund expenditures for fiscal year 26 now not compared to our revised budget but looking all the way back to fiscal year 27. What's different or excuse me 25? So what's different from last year compared
to this year? Well, we set out to make reductions this year and um in whole our general fund expenditures have been reduced by about 1.4 million. Uh but we're seeing 1.7 million uh less in salaries and benefits. So, um that's I
mean a little bit less than our target, but remember then we have um contract settlements and other increases there. So, it's offset a little bit with that. Now, with um capital expenditures, um the prior year we purchased I think $750,000 in um furniture uh for
classrooms and so now um we don't have that on this year's budget and so the result is a lot less in capital expenditures. Um that would also include that decrease in our LTFM. Um that's considered you know a object code that's considered capital. So um you know the two of those make up a bulk of that
change and then other object codes that are increasing and this is part of the reason we have to make reductions and the reason this slide is here is just to help us understand this whole process is that other services and supplies are increasing right at a pretty phenomenal rate. So we're making reductions to
maintain that fund balance um along with this and there's a lot of things that are out of our control. There are some things that are within our control. So in summary uh from general fund for our preliminary budget class 401 our student activity um uh I don't don't
know how much we hit this but this will in the audit um we will have our actual um expenditures and revenues added to our 401. However, there's a change from a revised budget for CO 401. Um we um had our music trip um I think New York,
right? And the the students were here to present about that trip and that experience. Well, what happens is that we add those expenditures and those revenues to our um to our books. And so, um you'll see a change to our 401 just to to add both the expenditures and
revenues. um class 422 unassigned revenues um increase mainly for VPK VPK tuition this year. Um a little bit more in tuition for VPK on the books in the general fund. Um we saw some interest earnings this year on class 422 and also
I noted with our activity expenditures going up, we had more booster club uh support there for some of those um trips or equipment that boosters are funding. So um a lot of uh revenues up in 422. uh decrease in expenditures mostly due to the salary and benefits as noted on
the prior slide. Um we talked about our capital expenditures and compensatory expenditures being reduced. Um 456 and 457 the READ Act um tracking those expenditures and then our LTFM projects coming in under in ' 06 which allowed us
to use less of our general fund. Um so uh and then our note about third party billing changes. So quite a list there from the general fund for fiscal year 26. Should have a full picture of kind of what's happened uh since we did a revision to our final.
Regarding our food service fund, I noted that uh we are keeping a close eye on our fund balance and if you remember back to the revised budget, we increased our expenditures to try to spend down our uh fund balance a little bit. So if you look at these two charts, our revenue is projected to be about 2.3
million. Our expenditure is about 2.7 million. That's intentional. Um we are trying to spend that fund balance down. And so just a note on food service. Um a carryover balance is allowable, but the concern is if that fund balance exceeds
three months operating costs, we have to enter an MDE spendown plan. Um, this does require and it used to be a six-month operating cost, so you could carry a little bit more. Um, but being a three months operating cost, it takes a little bit more attention and and we should be um trying to make sure that we
maintain this fund balance. With that said, um, you know, if we are able to execute all the expenditures that we have on the books or that we're projected to have, then in future years, we should be scaling back those expenditures so we don't get ourselves into trouble, right? We don't want to maintain those um, habits. So, um, in
fiscal year 26, we did increase our expenditure budget for repairs and equipment. If you remember, fiscal year 25, we bought some cafeteria furniture and did some upgrades to some other capital needs in our kitchens. So, so here's a little summary of our fund balance.
So, our audited fund balance last year was 983,159. with the um expenditures exceeding our revenues this year. We're projected to spend that down to about 613,000. Um it sounds strange, but it's easier
said than done to spend the money out of that food service fund because it is very restricted on what you can spend it on. So, we'll keep trying. Um community service, I just have two slides here. Uh as mentioned uh director double did uh some revisions for us and and these are the best guess with what
we can with where we're at in the year. Um the total revenues are projected for the year to be about 1.6 million 1,687 213 and then our projected expenditures 1,421,97. And it's good to see expenditures um
balanced here with revenues coming in under that 1.6 million. So that's good to see and that will ensure if you look at your spreadsheet under fund four all four fund balances are positive which is a requirement. Okay. And um here we just have um the
spreadsheet as presented in the board packet uh of the 2526 final budget. You can see the classes along the left. Those are restricted funds. This is the top half of the spreadsheet showing all of the general fund. And then the far right column will be
the projected fund balance for these general funds. Um leaving our unassigned at 6,992,528. And then just one last slide here showing the other funds. Uh the top blue line would be your fund two food service as noted the 613,000
uh projected fund balance. Um the next group would be your fund four. Um showing those positive fund balances there after revisions. And then I want to point out the middle line there. It says building construction fund fund 06. If you look to the far right column,
that's your fund balance column. There should be zeros there because we have exhausted all of the revenue we brought in for those projects. Uh in fund six. Um and then we also have a breakdown of our debt service, our scholarship fund, self-insured, uh our insurance fund, and
our OPED. So, um that exhausts, um the final budget. I was initially planning to roll right into preliminary, but I think this is a good stopping point. We need two approvals this evening anyway. So, um,
at this time, I would, um, ask that there's a motion to approve the final fiscal year 26 budget as presented. >> Second, any, uh, discussion, questions for Paul. >> So, just one question for you, Paul. Thank you for your work in providing all
of this information. Under the restricted third party building for 472, what what constitute restricted under that? What I mean? It's a fun but it's still restricted. >> Yeah. So, um just to highlight here the
question. So, what what um what are allowable uses of 472? Okay. So, um it's medical assistance. So, expenditures for things for those services of students that qualify for medical assistance. And that might be a better uh question for
special services. Um but I think you know um toileting um medical needs other services I think um I don't want to speak out of term but just other special service needs that qualify for third party billing or medical assistance. Um,
one thing I would like to point out there is that our consultant tells us that we will probably there there's some guidelines changing for how those are um what's allowable there. And so in the future we might not see as much revenue and we'll get to that in our um fiscal year 27 presentation. We're budgeting
for less. Um and that's why we tried to draw back on the expenditures this year a little bit. And the one piece that I I I know what we typically will do is we generate this revenue through third party billing. Um what we do with any um excess is we try
to pay for um benefits for u employees that are in special services that are it's the allowable expenditures. So a large chunk of the expenditures that you see on this row for uh 472 third party billing is for employee benefits um which really provides relief to our
unassigned right. So when we have more medical assistance and third party billing funds available, that helps our unassigned fund. So >> one question, Paul, just out of curiosity with the food service funds, I know we've always done well there. Um is
that normal for most schools? Are others seeing that the state's paying more than we need or are we just very efficient? >> Um it is starting to become new normal. Uh it's a good question. And so the question just about uh whether other districts are facing similar challenges in spending as much on on food service
funds. Um I think yes just by the nature of um the allowable uses of the money that we have in the food service fund is very restricted. So um it's challenging to even use it for custodial for even in the kitchen or cafeteria. Right. So they
will require maybe a time study for that. Or if we want to put in a new piece of equipment, we need MDE approval before we can do any plumbing or electrical to put in there to use to use this fund, too. So it's um it's a process and I I think um we're blessed
to have a a strong food service program. Yes. Um but it is something that other districts are facing as well. Just a challenge to spend it down there. On that note, there is a lot of discussion uh by our state lawmakers about broadening the use of fund two. Um so I look forward to seeing some of
those changes potentially coming forward too. Seeing no other question on questions for Paul, we have a motion by Kim and a second by Angie to uh approve the uh 2526 final budget. All those in favor
signify by saying I. >> I oppose the same sign. Okay. Thank you, Paul. Motion carries 70. Okay. 5.3. Uh, executive director Matson.
Good evening, board chair, Superintendent Hile, school board members. Tonight's resolution proposes to place one assistant student services director on unrequested leave of absence. Uh, this employee was notified Wednesday, May 27th of the proposed ULA
and will be meeting with business office staff following tonight's board meeting regarding pay and benefits effective June 30th of 2026. Is there a uh motion for um the the unrequested leave of absence?
Just read by exe executive director Madson move. >> Is there a second for the motion? >> Second >> and a second. Is there uh any fur any discussion or questions for uh Executive
Director Matson? Um, I do have some concerns about this and um, there are a few comments I could make. Um, one, we haven't seen the decrease in special ed enrollment like we have with the general students. And looking into this a little bit, I've
learned, um, I think Paul had confirmed that, um, we're reimbursed for approximately 80%, it might be a little bit less than that of of the cost of the salary. So, if we're saving only 20%, it's hard for me to justify making this
cut. Um, I know special ed has been um an area we've struggled in the past and I've heard that it has improved over the last year. So, I'm just I'm struggling with making this cut if we're only saving 20% and you know, others are welcome to try to change my mind. Um, but that's that's where I'm at right
now. Um, and I'll be voting no unless someone changes my mind. I think my concern with it is, you know, we just added the position after um kind of looking at the need last year. I'm concerned of the number of licensed
teachers who are not licensed in sped who are sped teachers and with taking this position out, it's providing less support where our special education teachers, if you visit with any of any of them, they would they will tell you we are overwhelmed as a district.
Um, and I just don't know it's the right move at this time. I I did talk to Superintendent Hy a little bit about it and um I I'm not comfortable with it. I I think with us heading into a compliance
year and some of the parent complaints we've already had with sped for it to get worse, one parent complaint can cost anywhere from just the initial cost 8 to $15,000 which we will easily make up if we keep highly qualified um directors
leading sped and um you know the rules regulations as we all know are complicated. Um, when you talk to our special ed teachers, some of them are up to doing 25 IEP evaluations in a year, which is more than we've ever done. And that's
where this person has stepped in and ensuring we're in compliance in in supporting staff training. I'm just not ready to let that position go. And again, we do get the I think next year will be 80% reimbursement.
Um, I just want to state for the record, I'll be abstaining from this vote. I'm I'm personally very close to this employee, so I want to abstain from the vote. But I do feel compelled to make a couple comments about just the overall
um process. This is why I asked in April about my or said I had some concerns very similar to Mary Joe's. Um, we heard in our budget preliminary for this year that admin is under 4%. um the the really the best practices for
your admin budgets in comparison is four to 5% for a public or nonprofit institution. And so we're we're hitting that mark um with this admin position. Um I also think that a ULA in June doesn't
look good for the employee or the district. I don't think anybody wins. And so um while I'm not voting, I felt like those two things should have been said. So >> any other may >> I think to putting this person on ULA
and on on requested leave of absence. We've done this before recently and I think it's just wrong in that they automatically go back to the teachers bargaining unit so they're not losing their benefits. Um, I don't know if it's true or not. They
were told they go back on low on the seniority list. That's not true. So, I think there was just a lot of things out there where there's so many questions. I just am not comfortable doing this to staff. I'm not doing comfortable doing this to our bed staff until we really have a plan for next year of how are we
supporting our teachers? Because right now we have zero case facilitators. Um, we've had one in the past before and we said one is not enough for the district. We need administrators leading um helping with all the student
evaluations, the IEPs, avoiding parent complaints. Um, you know, I called a couple veterans vet teachers that I have worked with in the past and said, "Tell me, am I what are your thoughts?" And there we're in a
100% disagreement with this. There's too many teachers that need more support. Uh we don't have enough teachers to fill the positions that we have for SPED. So, we're going to be moving potentially nonsped teachers back into sped roles. Um I'll tell you, I was a classroom
teacher. If you put me in sped, I wouldn't know the first thing to start on where I start with an IEP, what the laws are, the rules, regulations. Um I would need a person like this. And um those are my thoughts.
>> I would the contribution I want to make to the discussion is that this position my recollection is as part of a restructuring of that department. So I would I would I would hope that part of
the process that led to the ULA would have involved some assessment of the restructuring. What what data was used? What staff were talked to? What teachers were talked to? Were there any parents? There was any dialogue with parents,
what was the process that led to this point? And was it part of evaluating the reorganization? And I don't I'm not confident that that was part of the process. And I would contend it should
be that. So I have some reluctance as well. I um I mean Andrew's comment that uh 80 80% of our funding comes from uh uh state aid and 20%. So we would we would
be realizing a 100% savings on the salary that this person uh would would require. So, if we uh choose not to accept this adjustment in our budget, then where are
we going to make an adjustment to make up for the money that we would now be spending? I mean, it's it's it's not pleasant, but the reality is that we have a budget that has been constructed with certain
assumptions, and this is one of them. So, uh, my understanding is that we would just have to realize that saving someplace else and I would be interested in finding out where that's going to come from. I guess the one thought that I have more
than anything is what Mary Joe said. I guess I would I would like to see these people in a classroom maybe in a different um different structure. I mean, I I we continue to load up on our
administrative level in this district. I would like to see maybe maybe a position like this could get into the classroom and could do a little bit more work than than administrative. Um, we seem to have people that can uh, you know, figure out the IEPs and all that, but I mean, I
guess I'm thinking more if this if this person went through or this ULA went through, maybe we'd be more in a maybe we could add in a case facilitator, which would be more more closely related working with the students versus the administrative
level. So >> Ashley, what options does a staff member have as far as their bargaining unit? And um I don't know if they have any bumping rights of any kind on and lenture any linkage to lensure for them.
>> So this person would go back into the teacher bargaining unit where they did have continuing contract rights with that seniority date. Paul, would you be able to confirm if my financial understanding is correct, if we cut the salary, most of it is being
reimbursed and we would also lose that reimbursement. Is Is that how it would work? services cross subsidy or special education student population you may receive thank you Dan um you may receive more um
aid so our number very it's not going to be exactly 80% in reimbursement but close to that so every dollar spent about 80% or 80 cents return um now We also monitor something called maintenance of effort. Um making sure
that we do not go down in expenditures for special services. It's a requirement that we spend at least a dollar more annually um to ensure that we're um supporting the needs of students that have um special services needs. Um so
I think one concept that I I think is a broader concept when we talk about restructuring or staffing uh special services. Yes, this would be 80% reimbursement we're letting go of. However, with salary agreements and benefit
agreements, we will see increased expenditures, right? So, we will still be meeting maintenance of effort and well exceeding that. So, a a smaller reduction in terms of our $12.5 million of special services costs um annually really just helps keep it's more
maintenance to our um our cost for special services. But um for any special services expenditure, yes, there is a reimbursement that we're for forgoing. Um one thing to keep in in in mind as well is that um you know, we don't make
reductions similar to our um special education aid. We get really large imbalance potentially between our regular education staff and special education staff where we're seeing a large percentage um of imbalance there. And part of the the reduction I believe
would be um just to keep the the total expenditures in line. Um your understanding is correct. We would receive reimbursement on the expenditure. >> Have we uh this may be a Sheila question
or a principal Larsson question. Have we surveyed principles or sped staff to get their input on what the needs are? What? Any other questions or comments?
Okay. Uh so there's a motion on the table to um accept the uh unrequested leave of absence. All and Kim will be abstaining. So we'll have six votes. All those in favor signify by saying I. I
oppose the same sign. >> I call for division of the house. >> Let's make the uh we'll do a roll call vote. Dur abstaining Kim and I will go last I guess in case.
>> Director Score. >> I >> director Schindler. >> No. >> Director Hoffman. >> No. >> Director Dorman. >> No. >> Director Valerio. >> No. >> Chair. >> Yes.
>> Okay. Uh ULA fails. Uh 4 to two. All right, that'll bring us to 5.4 then uh the pair educator uh contract. We have Mr. Herban and Mrs. Matson.
>> So tonight uh we request we we request your approval for the 2025 2027 PAR educator master agreement. Um, as previously shared with the board, uh, this agreement includes revisions to a few language items and an increase to
salary on year one and year two. >> I'd look for a motion then to uh, accept the um, master agreement for the uh, Everly Pair Educator Association 2527. So, >> is there a second? >> Second.
>> Is there any discussion? Seeing none, all those in favor signify by saying I. I >> oppose the same sign. >> Okay. Motion carries seven to zero. All right.
And then that brings us to uh 5.5 uh the activities director uh coordinators agreement. Uh we move that. >> Yeah. Way at the end. Yeah. Right, Kim? Yes. Yes. Is there a uh motion under 5.5 to um
offer the contract to um Matthew Jeffrey for the activities director position? >> Move to approve. >> So move. Is there a second? >> I'll second. >> Okay. So we have a motion. We have a
second. Is there any discussion? Uh I I have a couple uh things that I just wanted to mention. Uh this being probably the uh issue next to the uh calendar issue, the changing the calendar when I got on the board 12 years ago, the very first month and the
second month that I've had the most outreach from anyone and I've been able to visit with um u been a number of u people that uh wanted to talk about this position. And there was there was a couple that were um positive about it.
Uh these are even student athletes which I wanted to check with. And then there was some that had concerns about a couple areas. And it was mostly just the experience level of uh dealing with over 60 activities
and um having uh having I don't think it's a brand new system this year for registration but uh just to make sure that all the paperwork is done and then also there was some um some uh issues on
uh and and that kind of went with the um uh experience part if there was enough experience to to uh that that could be has been demonstrated to uh with conflict conflict resolution and being
able to deal with uh um 100 plus emails a day and text. So I just wanted to bring that up and um just basically say that I will vote uh no for the majority of the people that I talked to uh about
this issue. I did hear from um and Angie, did you serve on that hiring committee? I'd like to hear from you at some point, but uh I heard from a booster club uh leader. Um but it was more concerned about timing
of the hire um and experience. Uh these are big jobs. Uh ad I mean I supervised the ad at Riverland and it's just a very demanding job. I think we all know that and would agree with that. The one question that was raised by the booster
club individual I spoke to was just I think there's a rumor that no scheduling has been done for athletics going into 26 27 and I I would be surprised if that's the case. So could you clear that up? Typically you and and Paul you can
correct me if I'm wrong but for my days as an AD um typically about 95% of your schedules done you're a year ahead of scheduling. Um, of course, where I was in AD, we were we
were a a um union high school, so I didn't have to deal with middle school athletics. And I typically know from being a superintendent in other districts where there was middle school athletics. Those are typically being scheduled um probably right now and
stuff for the fall because they they always look at numbers. So, there's always a slight adjustment at your middle school activities. Maybe Steve or Dave or Neil can clarify too. When it comes to officials, are we is the AD or uh arranging for officials or is some
outside entity doing that so they do it? And >> I can speak to that. >> That's changed over the last several years. Most just about all officials are members of an officials association. And that association then is actually
the party that more often than not schedules their officials for uh for for the events. For example, I'm a I am a member of this Southern Minnesota Wrestling Officials Association and we have a person in our association who
contacts athletic directors and the athletic directors presents the our schedule for example our schedule to that association person and then and then that person assigns the official and and I'm sure Dave you're familiar
with that process football yeah >> so it's kind of off the 80s plate to a fair degree. >> It it always I'll just use poor baseball as an example. In the spring we get rain outs and that's the hardest thing when you have to reschedule any activity. So
that's then when they end up but it does become the assigners that really do that work. But the AD's office would call and say hey we need a game on Tuesday. And then the assigners would do it. make be clear too, I did not hear any
objection to the person that was more concerned about process and where things were within the school district. Um, if we do move ahead and hire uh Mr. Jeffrey, I would like to suggest that
contractwise, I'm assuming a July start. I would like to suggest that we offer uh some sort of a temporary contract that that's permissible to start as soon as possible if we if we decide to hire to give them additional time to prep for
the 2627 school year. I would like to put that on the table. I also encourage if if this individual's hired a connection to a mentor of some kind because again these are I know it's a big big job and I think some mentoring would be uh helpful to give them a good
start >> and I I can testify to that it is a big job. It's a it's it's >> a very interesting job, but it's probably one of the most tedious and cumbersome and stressful. One of the
nastiest jobs that any school district has. I know that for a fact because I have a son who is an activities director in Iowa. And uh it's very stressful and and regardless of who we hire, whom we
hire, um this person is going to need a lot of help. Uh because they're and and I'm pretty sure that uh whoever it is is going to have to start now. And it would probably be a good idea if you know if
we could have some arrangement in place so that they could be compensated for now. That's and that that's that's that'd be the case no matter uh who our candidate is.
I would I would like to add to the now which I totally 100% agree with. But that means there should not be any time and I know we can't probably always dictate that that is gone in July when you actually have your contract started.
And I hate to say that way, but we have I believe isn't the 23rd, uh, the start of fall registration and if you take any, let's say you come in now and you're trying to learn this stuff, which by the way, there may be a smaller department over there to work with, but
and then all of a sudden you decide to take some time off between, you know, in July when you actually do get under contract. I guess I would have a problem with that because it would seem like then we should start the contract in June versus starting it in July.
So >> you could almost offer an extended contract if we wanted to give the individual an additional month. >> I I say if we give them that additional I agree with you, but then there there's no time between they don't get any time off now. I hate to dig on that, but
there there shouldn't be time off then when they actually do get under contract or they've wasted their time that we've paid them an extended um contract language. That's the reason I say that. I want to because they probably would have started yesterday if
they could have. I mean, there's just a lot to do >> and and I would have to assume that anybody that applied for this position would understand that. uh if they don't understand that we have a a problem because it's uh it's not a
job that you that you can just uh you know take some time off and go someplace here. It's almost 247. >> Go ahead. >> All right. Um Neil and I sat on the interview panel which took all day. It
was a good experience um but a lengthy day and um I don't have anything negative to say about this individual. He interviewed very well and um seems like a very impressive person overall. Since the um interview day, I think I've become a little bit more concerned about
the experience level and is that a good fit for this where our activities department is right now. It does seem like there's quite a big need there. um and experience would be very helpful. Um especially if there's going to be a lack
of training available for um the incoming person. Um and then do we know for sure what day Max would be able to start if if we moved forward? Is that would it be July 1 or were you thinking it was later? Dave, >> I think July 1st. Go ahead.
>> The the contract starts July 1st. There there was no there is a known vacation that was pre-planned uh family vacation prior to that. So the start date would be a little more into July. Um I Dave what you said I guess I'll
reiterate I too um agree lots of comments out on the athletic department lot of needs lot of concerns lot of transitions lot of staff movement um morale issues
just worry that somebody with no experience stepping into this position we're setting ourselves up for um not a good situation. Um to not have the experience and stepping right into it. It is a big job. It's
it's a big job. It's a lot of hours. It's it's stress and a lot of concerns being discussed in the community. Any other comments or thoughts? All right. Uh,
>> well, if we're concerned about experience, uh, Max has been around athletics all his life. He's he's not walking into this cold and he's, uh, been involved in the organizational aspect of it. And I don't think there
will be any surprises, anything that he's not expecting. I I'm pretty sure he knows what he's getting into >> along with a lot of activities. >> Yeah. >> Music and one act play and government. I mean, I'm just saying there's a lot of
things to activities more than >> athletics. And and you're absolutely right. And my impression of Max is that he's very very much sensitive to the importance of all of those activities. Absolutely. And I and I have high level
of confidence that the leaders of those activities are very strong for the district currently. So the AD does not need to micromanage um those folks in in my estimation. >> Any other uh comments, thoughts?
All right. Uh we do have a motion on the table to um offer that position of activity director to uh Max Jeff. Uh all those in favor signify by saying I >> I >> oppose the same sign.
>> I name. So >> I like that division of the house. >> Okay. Can you do a roll call? >> Yep. We'll do a roll call vote. Yep. Thanks, Dar. What would you say? Yes. Right. >> So, process-wise, it is it considered a
failed search and needs to be reposted is my question. Now, we're going to most certainly be without an activities director starting now. >> So, again, I'd like to ask my question again. So, it's is considered a failed
search would have to be reposted. >> And what would be the time frame for allowing the posting to be out and accepting new applicants? Oh, we could have the posting up tomorrow. >> So, I guess that would be open ASAP
then, correct? Because we've got stuff coming up. >> Once again, I'd like to know who's going to assume the responsibilities that uh the activities director we would have hired would be doing. Chair Claude, I believe that's a managerial decision and
an operational decision that the board doesn't have to decide. >> No, I know you don't. I'm just curious. >> So, I guess um post it uh is that something that can be posted like in a day or so? Hate to
throw it at you, Ashley. Yeah, I'll I'll also connect with legal counsel in the morning and make sure that we do every step correctly first before we officially do something. >> Yep. Okay.
All righty. Okay. Well, then that brings us back to 5.2, which is a preliminary. Mr. Durban, thanks for up and down tonight. All right, let me get situated here. Thank you, Chair Clot, School Board,
Superintendent Hy. Okay. And thanks for your approval on the final 50 or the 26 final budget. Um, so now we will transition to the 27 preliminary budget. Again, another projected budget. Um, there are more assumptions that we uh include in a
budget for preliminary uh budget where we haven't seen any revenue or uh actual student counts yet. So, we'll get into the details on that. So, um just want to bring um you know, at revised budget time, we we made uh set our sights on some reductions uh $2.6 million in
reduction, a target we made um this spring. Those reductions that we planned were for this budget that you'll be presented this evening. So um those are changes that we are implementing for future years and um you know it's not
like we make the reduction snap of a finger right we go through those processes um and then that builds our staff model for the next year or expenditures that are planned for the next year. So, um, I want to just make the point that as we go through this, um, even though we see potentially, uh,
fund balances that meet our board goal, and I think we've addressed this in earlier conversations, but as we maintain that fund balance, part of our responsibility is to make reductions if it's called for. So, um, as we take a look at these budgets and we get into a revised budget and the projections with
enrollments, they'll lead to less revenue. Um, we will likely see, um, reductions planned in the future as well. So, um, now a lot can change. We could see more students. Legislative changes could occur. Formulas could have increases to them. Um, we could pursue
additional revenue in other forms. There's things that can to change that. But the reality is if if we are status quo proceeding as normal, um, we would probably have to make reductions in the future. Um, including should we close a facility. Um, we talk about those
estimated costs being about $500,000 annually. Well, that's not making up the adjustments in total that we are um striving to make. So, um something just more of a precursor uh a forewarning. Um even though we see uh fund balances meeting our budget or our our board
policy, we still may have to make adjustments to be responsible. So, here are some highlighted changes for fiscal year 27. um what you will see uh presented in front of you and again you should have a 11 by17 uh preliminary
budget handout as well. Also, please shift to the 26 27 preliminary if you're following through. Uh here, um what we see is an increase to general fund revenues. Um there are a couple reasons for that. Uh a few reasons in the projections. An increase to general fund
basic formula was uh 2.7%. That's uh set by lawmakers. There's an increase to general fund special education aid. Um again, that's based on our reimbursements and our special education aid that we qualify for. Um and then when we get into specific
fund balances within the general fund, um we will key in on some areas. Uh we'll see an increase to compensatory aid revenue and um I think I have a typo there. Um we'll have to hit in the next slide what that would be. And then an
increase to English learner aid revenue. Um and then we are going to discuss a little bit about a projected fund balance for ALC. Um and want to thank uh Miss Donaldson for the presentation earlier. uh we might have some notes we can connect to that presentation and and some food for thought for the board as
we get to the ALC topic. Um within this budget um we will see um some assumptions and some projections that we have to make uh in order to build the budget. Um one um we are provided a revenue projection model from
MDE to help us determine how much aid we will receive as a school district. If um you were provided an enrollment projection um sheet from Ellers, our financial adviser, and we noted in the final budget for fiscal year 26, our enrollment projections were on pace. We
were doing well with where those projections looked like they would end up. Our our actual enrollment was on on pace. The um enrollment for kindergarten for fiscal year 27 is low. Um I think a ballpark about 160 students enrolled currently. Um and normally we would see
more than that at this time of year. And also in a typical year we see maybe 20 to 30 additional students in the fall that register as school begins. And so um taking a conservative measure we decreased from in a variance from our uh enrollment projections. We adjusted the
kindergarten enrollment down to 180 because of that um that point there with our um current kindergarten enrollment. Um now if our enrollment was looking stronger we probably would have stood with the enrollment projections as is. So the consequence of that is we will
see less revenue for those less ADM that we put into that revenue projection model from NDE. Um there was a legislative uh uh measure that passed uh a hold harmless for compensatory revenue. Um so we we as a district were winners with that decision
that was made. Um we'll see an update on that in a little bit. Also, there's an assumption about our EL student population. It's a little bit challenging to pinpoint exactly what our EL number will be. Um there's some specifics about which students qualify and how long they can be in the program,
whether they're considered EL or they receive state funding. So we use always prior year numbers for this estimate and that number was 340 and it's going to generate this year with there's also an increase to the formula for EL cross subsidy. So, we're going to see a really
strong revenue number in our projected uh preliminary budget, but I want us to keep our eye on that as we move forward in case that number there's any variance from that 34 to EL ADM that we have in the budget. Um, this budget includes our health insurance premium increase, our
salary agreements uh for fiscal year 27. Um, one other um topic that's a hot topic um at the legislative level is our unemployment reimbursement. Um, there was a fund that was established. They actually added more money to this fund in prior year, but it is due to run out
next fiscal year. So, we don't know how much they haven't provided a recent update. Um, so we had to make an assumption on what might be remaining in that pool and how much that would um generate in revenue for our district. Um, I feel a safe assumption about 50% of reimbursement for unemployment um
between between term unemployment. Um, also in this budget in the 21 accounts, so your class 401, you won't see any expenditures or revenues for accounts that aren't approved yet. As you know, in July or August, you'll get start getting packets for 21 student activity accounts for the board to approve. Those
expenditures and revenues should be equal. And as you see, those we'll just see an increase to both expenditures and revenues in that class 401. Uh, also included here is a 5% increase to property insurance and utilities and a 5.1% assumption for uh, contracted
services or contracted transportation. Um, at this point we do not have an agreement set with Albertly Bus. Um, but uh, hopefully a safe assumption there for the fiscal year 27 budget. So there's a lot that can change, right? And so just again saying this is a
projected budget. um as you uh hire a new finance director um I hope they they can dig in and and assess how close we are with these and when it's uh middle of the winter once they get a good handle on how enrollment's going um a revision will be necessary.
So some highlights uh projected for fiscal year 27. So end of next year if everything goes as it's placed in this budget uh we're projected to have a 12.31 fund balance. Um, again, that includes an increase to the general fund
formula that is offset slightly with a little bit of enrollment decline. Um, especially with that lower kindergarten number. Um, but also we're going to see that shift now to levy versus aid. So, we'll see a little bit of a levy increase. Um, and then we see that general fund aid increase mostly due to
special education um, revenues that we project that we will have. Overall on fiscal year 27, we're projected to see an increase in expenditures of um just under a million at 987,386. Uh and I want to note that that is after our reductions that um we put in place.
So um we we will still see additional expenditures after we made reductions. And a lot of that is salary agreements and benefit agreements, but also our uh contracted services and supply costs and utility costs that we're seeing an increase to.
Okay. So, as we dig in um to more detail here, um I did note that our general fund compensatory revenue, we were winners with the legislative session uh passing a whole harmless. Um this was kind of a roller coaster for a few months. We talked probably back at revised budget. There was some
uncertainty there what will happen this year. um the um I think it was about $356 uh dollar increase to per pupil formula for compensatory and um for us as a district it's based on uh direct certification of
students that qualify for free and reduced lunch. So um our district came out well in those calculations um and um we will see increased revenues projected for fiscal year 27. Um we did not make a large increase to expenditures which
that will allow us to maintain our fund balance um in in case um those projections don't come through or um if in future years um we need that fund balance uh we see a healthy fund balance of about 381,000 there in 441.
Okay. English learner is technically a basic skills or compensatory um fund, but we use class 439 for English learner use of compensatory or basic skills funds. Um there is a um e specific formula that generates aid and now there
is an increase to e cross subsidy. So um this is where I mentioned in our um highlights on the first slide that we have to make an assumption about our e student population because we have to use prior year enrollment. So we are making our best guess at how many EL students we would have for the final
fiscal year 26 count which will generate revenue for fiscal year 27. So based on our assumptions we are slated to see a large increase in um English learner um revenues. So if you look at the fiscal year 26 final budget
for English learner the revenues were at 557,000 um 384 in this year fiscal year 27 projected revenues is over 800,000810 uh $810,52. So, um that change to cross subsidy for
English learner aid um is based on um our reporting of our English learner um expenditures from prior years and um we've been reporting those accurately and we think that we'll have a nice bump in revenue for next year. Now, there's
assumptions related to this. So, my guidance would be let's see if this plays out in fiscal year 27. If there is a solid increase in revenue and we do end the year with a $250,000 fund balance or something close to that, that would provide our administration some opportunities to try to beef up our
supports for EL student population. So that's a positive change. Another positive here is our ALC and it could uh this is another one we should keep our eye on. Um so ALC is class 434. So, in the past, we would be able to
code 10% of all revenue generated for ALC students to our unassigned, and that has changed. Um, I don't know if the law sunseted or if there was a revision to it, but however, now we are not allowed to take that 10%, skim it off, put it to unassigned. This 100% of ALC revenue has
to go to class 434. So basically it has to go to ALC appropriate expenditures which could be targeted services uh summer school uh credit recovery um or just your ALC. So we're projected to see a healthy fund balance. Um the
assumption here is hard as well because you have to um make an assumption on targeted services um student uh population, credit recovery, summer school. there's a lot of um extended time uh calculations that lead to this
number. So um with this being an assumption, I think it would be safe to see where we land at the end of next fiscal year. That will also give us time to determine what our um plan is for the ALC as we move forward. If we're closing a building, if there will be any shift
in the ALC, um and I think that would be another opportunity for administration to look at how we could use ALC funds moving forward. So this is another positive for the district in this preliminary budget. All right, this slide is a it's a lot to process. Um so I'll just
slow it down and just talk about what we have in front of us. So there's a four-year review um fiscal year 24 audited fund balance or excuse me um expenditure totals. So these aren't fund balances, these are expenditures in each fiscal year. So 24 audited, fiscal year
25 audited, fiscical year 26 final. So again, a projection for the end of this fiscal year that we're currently in. And then our fiscal year 27 preliminary budget, what we're presenting on currently. Um, so these is a four-year running comparison, and it's broken down our total expenditures in the general
fund three different ways. So the top row, so the top set of expenditures is by object code. So you see salaries, benefits, purchased services, supplies and materials, capital and other those totals in that set should equal
the totals for the same fiscal year in the middle group which is by program code. So it's just another way to look at these not by class or by object but now by program code. So you can see how our funds are distributed by administration,
um, support services, uh, instruction or other sites and buildings. And then the bottom is broken down by site. And this is a little bit more of a challenging calculation, but we can break down how much of our phones are d our funds are directed to each building
specifically by its org code. So in all of these, if you for example look at the fiscical year 27 preliminary budget, the far right column, you'll see expenditures of 60,127,611. And what this does is it allows us to compare to prior years, how we're using
our funds. So you see, by far the largest expenditure that we have in object code is salaries and benefits. uh expenditures by program is instruction. Um if you add our special ed instruction, our regular instruction together, you see that's 70 or 67%. If
you add all of our instruction and supports together, it's going to be well over 80%. Uh expenditures by site. Um one that's challenging might be your districtwide. um we have some um facility costs or um LTFM con capital costs or utilities, things like that
that might uh fall into our districtwide, but other otherwise you see the high school is uh by far I mean our largest building um most students in that building. Um and it realizes most of our expenditures and if you look at our elementary schools is pretty evenly distributed
between the four. All right. So, this next slide breaks down our um revenues, expenditures, and our fund balance. So, I noted that at fair for our audit, we had just under 12% fund balance for fiscal year 25. So, we had revenues of just over 60 million in expenditures, pretty even, just over
60 million last fiscal year, finishing with 1164 fund balance. Um, this fiscal year 26 that was just approved shortly ago, we had a revenue of 59 million projected revenue 59,863,71
and expenditures of 59,140,225. So, slightly less expenditures than revenues, which we all know is healthy when we're trying to balance a budget. A 12.23 projected fund balance uh for fiscal year 26. And then uh just over 60 million in revenues for the preliminary
budget. and then 60,127,000 uh for expenditures um as noted on prior slides and should generate um using our board fund balance uh calculation which isn't just a straight division problem. It it it excludes some of our restricted
funds um should projected fund balance of 1231. So we can see our our fund balance of our meeting uh board policy strive to maintain a 12% fund balance. And here's more of a four-year picture, kind of a nice little visual of what's happening
with expenditures and revenues. And we saw in fiscal year 25, this was a new slide we added last year, what happens when our expenditures exceed our revenues. And obviously, we don't like what happens to our fund balance. Um, so fiscal year 26, we're projected to finish below u balanced. And same with
fiscal year 27. And as mentioned in our uh final budget, we also have our other uh funds. So a fund two food service funds. So what's going to happen once we spend down some of our fund balance in food service as we noted um that our expenditures are outpacing our revenues and that's
intentional. Now in fiscal year 27 we scaled that back slightly. Um I think in fiscal year 26 our our food service uh expenditures was over 2.7 million. Um, here we have expenditures of 2,558,115. Um, I think I mentioned as our fund
balance starts to go down, we're going to want to make sure we scale back our expenditures appropriately, make sure this is more balanced community service fund. Uh, we're doing the best with the information we have. Um, there's a lot that's challenging to predict with food uh, community uh, community ed. Uh, so Mr. Double has
presented uh, some budgets that are balanced as well. Um we see our revenue projected to be 1.7 million in fiscal year 27 and expenditures just under 1.7 million. So again uh fund balance is uh hopefully looking good with our community in
just highlighting um our construction fund. I noted that in uh fiscal year 26 that should be spent down. So on this chart, it just demonstrates that we will not have any revenue, any expenditures, and no fund balance for fiscal year 27. Um, if all
of those 26 expenditures are accounted for appropriately. And then we have our charts uh here that you have in front of you and is in board packet. Um, this breaks down by class, our projected ending fiscal year fund balance. So one we're taking a projection that we approved earlier and
now we're projecting upon that right. So we're taking what we will have in an audit later. So that first column could all change right through the audit. And then we are projecting revenues based on assumptions, projecting expenditures based on assumptions and um then we can
project our fund balance for future year. So there's your general funds uh unassigned of $7,161,584. Um that's that column 4 or that row 422476. And then here's our fund two
food service fund. Um you know we're projecting to finish fiscal year 27 with a fund balance of 262,000. Um, I mentioned earlier it's easier said than done to spend the money out of fund two. So, we'll keep trying and I think it'll be something for your next finance director to keep a close eye on so that
we don't develop a large fund balance there. Fund four, balanced budgets, looking at fund balances there that are growing. Looks good. Fund six, you should not see any values there for fund six, more for demonstration purposes today. Fund seven, your debt service,
your scholarship fund, insurance fund, and our oped. So, I guess I have our next steps here this evening and uh we kind of took care of step one earlier. So, thank you for the approval of the final budget. So, this evening we'll entertain a motion uh or I ask for a motion for approval of
the 27 preliminary budget. And then just to give you an idea uh what we're looking for um in the fall and winter. Um so, these all are cyclical and they tie together. So, um, in September, we'll start our discussion on the preliminary levy to see that impact of
what's happening with levy and aid and and, um, what we're we're looking at with property values. And then, uh, I just want to remind our community that a lot of that is formula driven for a school district, right? So, we will see the impacts of that in September. Um,
and then in the fall also, you we'll begin the audit process as a school district. and we've begun making sure that the the auditors know that I will be stepping out and there will be a new director in um Superintendent Hy has been involved in that email chain to make sure that that process will get started. Um and our controller Kaylee
Gryom uh has all the tools needed to get that roll and she does a bulk of the the organization for the audit as it is. So I think we're in a good place uh for those processes to begin this fall. Um and we're set up so that the next person can really get in and just run with it. Now, in the winter, um we'll certify
that levy that uh begins in September. We do that in uh nove late November, early December. Um and then we'll get those enrollment numbers. We'll get confirmation of are the inputs we put into the preliminary budget on pace and then we can make our revisions to the budget. Um and I think this will be um
there's a lot of assumptions in fiscal year 27. So it'll be important for the next finance director to really just do a deep dive um and keep an eye on all those assumptions that were built into this budget. So um and they all kind of feed off each other, right? So this final budget, we'll get the audit complete that impacts those fund
balances. Then we make our revised budget on the budget that you're approving here or voting on here shortly. So um it's been a pleasure. I ask that you approve the preliminary fiscal year 27 budget. >> Thank you, Mr. Durban. Uh,
>> Chairman Cloud, I'll make a motion to approve the preliminary budget as presented. >> Is there a second? Second by Mayor Joe. Uh, any discussion? Seeing none, all those in favor signify by saying I.
>> I oppose the same sign. >> Okay, motion carries. Uh, 70. Again, thank you for all of your work and numbers and explanations and appreciate it. It's uh been more educational we've had in a long time. So, good luck.
>> Could have been a little bit more data, Paul. >> Yeah. Come on. >> Thank you. >> Okay. So, that will bring us to the end just in announcing that June 15th will be our regular session. And um I will look for a motion to adjourn the
meeting. >> So, moved. >> Is there a second? Second. >> Second. Any discussion? All those in favor signify by saying I. >> I. Pose the same sign.