call this meeting to order and we'll start with roll call please Oh we don't need to We don't have anybody Oh well I do need to do zooming anybody Um do do we do the pledge first oh Oh
I'm here DJ Der here Randy Hidman here Sarah Spear here John Ward Stephanie Edman Thanks Kelly All right now we'll do the pledge of allegiance to the flag of the United
States of America and to the republic for which it stands one nation under God indivisible with liberty and justice for all All right This meeting of the Brainer School Board is being conducted in accordance with Minnesota statutes
13D.02 This meeting is being recorded Access to the recording is available on the school district's YouTube channel We will entertain a motion to approve the agenda as presented So move Okay I'll second All right We've
got a motion and a second Any discussion if not all those in favor say I I I Oppose The same Motion passes We due to this being a special schoolboard meeting there is
not public input allowed during this meeting because it was called as a special and not um as our planned meeting Under new business for today our topic is the approval of the first
revision of the 2425 budget As presented we've got Director Marcy Lord with us Thanks for coming Marcy Yes I was going to say good evening but we're not quite there are we all right So in your guys's packet is a um the
presentation itself and then also a extended version of what's being presented or a more detailed version I guess is a a better way of saying that So the presentation primarily focuses on the general fund The document does have all the funds The 2324 revised budget
was our starting point for the 2425 preliminary budget So you can see in the unassigned and typically I focus on the unassigned uh the excess was about 650,000 So that was our starting point And then when we uh last month
sorry we talked about the 23 24 audited So that's kind of still fresh in your minds If the audit had been done further along I'd probably or there was more time span between that I'd probably go into more detail on this But you guys have been well verssed within the last
month on this So for the 2324 revised um excuse me revised budget was about 652,000 excess in the unassigned the 2324 actual was 20 2.5 million excess in
unassigned and we went through all of that last month And then also community service uh noted that the difference was about 342,000 deficit went to an actual of 285 in excess So again just repeat of last month but typically we'd have a
little more time span in between the audit and this presentation So that's why we it's on here the 2425 preliminary budget we did have uh we then update with the assumptions we know So 2% on the formula
There was a decrease of approximately 111 adjusted pupil units and then an increase in compensatory and sped funding And then we also had increase in labor agreements uh benefits and then contracted transportation and
Pso So those are kind of where we got started with the preliminary budget In that preliminary budget we had estimated 5,789 and adjusted pupil units And that's taking the first revised adjusted
pupil units factoring in the transition between grades and then coming up with this projection Again in the preliminary budget we were looking at about a $3 million uh deficit in the unassigned And then I just want to note that beginning
balance column is based on the first the 2324 first revision and you'll see that that gets updated I know that can be confusing but that beginning balance is based on the revision and then when we look at their first revised budget for this year it's going to be the actuals
because we know how the year closed So 2425 the first budget re revenue and expense assumptions So we then took how we closed the year ADM wise what was our October one account one count for students and then put it into our
projection model and we're going to be down a projected 38 adjusted pupil units Uh we also looked at our salary and benefits uh updated that with any known changes There's about 2500 lines that we
had to touch for that We have number of accounts and just going to do a quick shout out to our new accountant put in a lot of extra hours and then also we did have um Angie Bennett previously came back in and helped us out So I just want to do a shout out there That was super
helpful And then uh with the revision we review almost 10,000 revenue and expense accounts And I know that it seems crazy to have that many accounts but with all the restrictions that's why we have to have so many account codes It's not by
my choice Just want to make that noted Uh and then also uh the services that were increased we had to look at PSCO again So our first semester bill came in and it was higher than what was projected and so we did have to increase
that budget as well But with all of that this is a screenshot of our our projection model So it takes the last six years looking at our October one count and then our final ADMs and coming
up with a percentage And so then we apply that percentage to our current year October one count to come up with our projection It's pretty neat Lot of tabs on that spreadsheet So with the first revised budget uh the restricted lines there
were three restricted lines added Literacy aid that was new student support personnel aid and then teacher compensation for the readac training You can see under restricted all three of those lines were added And then like I mentioned before the beginning balances
were updated with the audited actuals And so we're looking at about a $2.8 million deficit in the unassignment What were those three new ones uh literacy aid student support personnel aid and teacher compensation for read training
Thanks Marcy Yeah What is student support personnel aid so that was um so for counselors we could use it for counselors In fact we did use it um when we had CARES funding we added a counselor at the forest view and so we
just transitioned that position into this funding Okay with the CARES funding going away And then the literacy aid you'll notice that there's no expenses on there We're still um if you talk to director Russ she's we're looking at curriculum
What can we use for curriculum with that and then the teacher compensation for redact training that there was aou done for that those expenses What's the deal with the LTFM as far as the deficit i thought we were
going to take the new deal that So why do we show a million dollar loss we don't have to 25 26 So we were thinking that we were taking a these numbers are so confusing On the bottom it shows 4.2 Yes On the top it
shows 2.8 2.8's the actual 2.8 is the one we focus on because unassigned is you can use for anything The 4.2 encompasses all the restricted accounts Well then why are we going to fix the restricted accounts so those are typically planned
like for LTFM we we still have in fund balance what our allocation is So if the state came and said we are no longer going to fund LTFM we'd have at least a year of time to to plan for
that So that one is not a concern Okay I'm not really I'm not as concerned as much about that one as I am some of these other ones Like operating capital Yep Same thing Operating schools Yep Operating capital uh we have more than what our allocation is from the state and fund balance even with dipping into
it So same thing where it's not I would I would be concerned if we we're dipping into the fund balance and not having enough reserves Oh this is kind of like the food thing So like unassigned I mean I the reason why I point that out is because we are
low right we in some of these other restricted accounts we are doing just fine We we could we could plan if funding was to be taken away We would have time So do they mandate how much money you can carry over not in these accounts
fund um food service they do Gotcha Um so any other questions on the restricted it it is I mean there's a number of categories It it's crazy how many categories we've this this sheet I was actually going to joke that this sheet
is not going to fit on this page anymore We keep adding to it I'm going to need a bigger I'm going to have to probably put it on two slides Well it's not us adding to it right right It's the state Yeah Yeah they're doing such favors constantly worried about the
schools just a wonderful job Um but as far as your other and the staff development line like that's another one that's deficit So what happens is is during the revision we add all the carryover that sites have but it doesn't mean they're going to spend it
They just like to know what they have for a budget So if I'm um one of the sites and I have a carryover of 10,000 it gets added to the budget but it doesn't mean they're going to spend it Maybe they will if they have some planned training but it's it it is a
little bit deceiving when you see that number And that's indicated in the beginning balance So if you look at that you can see what's being added or subtracted in the excess or deficit for that balance
Any others on that one otherwise I'll move on So a comparison from the preliminary to the first revise we are going from that 2 point or 3 million and unassigned to about 2.8 And then you'll see that the percentage of um total expenses go down
just a little bit And then our unassigned fund balance is higher compared to preliminary because of how we closed last year So 12.4% And we just have to remember that we didn't spend that money It didn't get spent It's kind of
allocated So it's not like we're keeping it Not like we get to hang on to it Right It's it's it just didn't get spent before the the cut off on our budget Right You say that well the three million that we found in the audit deal you told me
it's because we didn't get enough of our LTFM projects done that was that was a separate line so the amount that we put into fund balance is now incorporated into this okay but which is still low
it's still a low fund balance three million that magically showed up right was because we didn't spend it we had planned on spending it we had budgeted to spend it right and we didn't spend it So there was not 3 million in LTFM That was an unassigned Well whatever
Where did the 3 million come from Marcy from coming in under expenses in general the audited thing you showed us a month ago Sarah you were there What do you remember we we made money on interest Yes Well that's good That's where a lot of the money came from Yes That was
where a lot of Yeah That's a good deal I just thought that you told me that well the deal is we didn't get all the projects done so it's like we had budgeted this much and we didn't really spend it after the audit got done and that that was an LTFM but it wasn't the three million two separate things So are we going to spend it apparently
we're going to spend it right here It's going we're going to spend we're going to try to get our projects done in LTFM This the unassigned fund balance you just get into my peep brain here That's kind of like a savings account right yes We can do whatever we want with that Yes
Okay you got it But we do have a budget policy at the board level to have that at 10% Yeah we chose What is the state recommend you're jumping ahead of my presentation Sorry It's okay Three months You said
that so nicely Be quiet No it's three months or 25% So whichever is greater That is so 3 months is 25% is 25% Okay Okay Sure Of course Yeah
Yeah Okay So there is my next slide The state recommendation is three months Um with the projected fund balance we're about at a month and a half And then the board policy is that 10% that uh Sarah had
mentioned But I just want to reiterate that for you have one and a half months reserve So if something goes bad you know whatever it may be that
could be gone in a hurry And a lot of school districts that struggle at staying at 10% What they end up doing is borrowing money usually to meet payroll And that's a cycle that's really really hard to get
out of once you're in a it's really difficult So we don't want to go that direction Well can you explain Peter and I think I might be hopefully I'm saying this right Is it true that Crosby is in
what they call statutory operating deficit if you're at 2 and a half% or lower that's what that is Okay Is that correct Marcy okay So then technically under state law you cannot operate like that So you have
to come up with a solution to solve statutory operating debt Usually that means cutting to raise your um amount but then usually end up going to the public and say would you give us more money and um I don't know how many
districts throughout the state are in that stage right now but it's going to change real quick I have a feeling Okay So um you pending your approval the next steps will be if there was a second revision
needed So uh if we had some substantial changes for example 500,000 from the state or something like that we would do a second revision If we don't see very material items that are affecting the budget we
will not do a second revision And then the first revised budget will be our starting point for next year's preliminary budget And we'll start looking at our assumptions enrollment the gened formula Um last month we or last meeting we talked about
the the inflation factor on that um projected sped change federal funds we'll have to remove all the CARES money out of that and then any changes in the local levy and then employee contracts that we know of and then that's when the
work begins Right Any questions where's that little page of that little chart with all the ADMs and all that stuff on there um I got it You got it 89 Oh no That's not the one I'm looking for Where's the one that shows the future
years like 24 25 26 i think that's in the second There it is on page six Oh I have a question Yeah Are you looking at it yeah So how do you go from you know let's just take 25 26 223
kindergarteners with 398 first graders And then the next year we had 223 kindergarters in 2526 but in 26 27 we have 401 first graders So where do they come from do some kids not go to kindergarten
it can be um kindergarten or it's also based on birth rates So if if I go into the details of this Well I'm just wondering how if there's only 223 kindergarteners in 25 26 Oh I see what you're saying There going to be 401 first graders in 2627 Got it Because we almost doubled it Yep No I see what
you're saying I mean I'm sure you're right I'm just curious Where do we find the extra 180 kids good question So it it it takes into account the transition when it does the formulas So I don't know if typically we see that kind of because it it is consistently doing that
into first grade Well my daughter didn't go to kindergarten so maybe that's a common thing I I didn't think it was I thought it was crazy but I'm not aware of that but I see what you're saying I mean I hope Right Sorry So take
handicap kindergarten and regular kindergarten add them together Oh that's what that is Yes And they don't do that anymore This is um I think this year What is handicapped kindergarten it's just another category that we have It's it's kindergarten
Physically everything like what does that mean i'm not sure how they get categorized into that category but they're they're both kindergarten Everyday kindergarten really Those would be students that are tested as they're coming in to kindergarten They're behind They're
assessed Well yeah They could be you know they could be intellectual or could be physical or social emotional Wow It's a high percentage Yeah Like I said that no longer I think starting this year that's no longer a
category So we'll have one column and it will be less confusing Well at least that's it makes more sense now It's like I kind of get it now Yes You had me go you had me stumped there for a second Not for long Well I can make a motion
All right We've got a motion to approve the first revision of the 2425 budget Is there a second i'll second Got a motion and a second Any further discussion or questions
if not all those in favor respond by saying I I I oppose the same Motion passes Thank you Thank you Marcy Uh we do have an additional thing on the agenda here to approve the computer lease agreement and it looks
like you're you're on the hook for that as well Yes I am Okay So we have linked in a document um and it is a lease agreement for 725 devices We need to update our devices and Ryan is online if there's any
questions on that side of it that I can't answer Um but the leases for a 4-year lease for 224,423 a year uh when I threw it into the I'm looking at DJ because I feel like he's going to ask this Uh when I
threw it into the lease calculator it's about 4 and a half% So we did receive quotes from two other vendors This company was the lowest for our payments And uh we did we were going to be purchasing them through CDWG which is a
source wall contract So are there any other details that you guys need to know so we did send this over to legal and there is a rush on this as far as we need to get these devices ordered uh they are on US land I believe right now
and we received feedback from our attorney that there are some suggestions they would like us to change have changed but they're not deal breakers according to the attorney so they're worried about the tariffs yes
you got it um so my ask they get paid to worry about something yeah my ask would be that you guys make a motion to approve it uh pending legal review and authorize administration to um execute it but there may be some tweaks on this
We don't we haven't heard back from Providence on what they would or would not accept on those s suggested changes Like what's an example of a change sure Um so for example instead of upon notice and coordination with LEI at all
reasonable times during business hours just to strike that So they're little things that lessen our liability but they're not deal breakers is what we were told These are Chromebooks right yep Or Acers
sorry Aser Chrome They're for the staff These are not for kids Yeah they're for staff These are staff computers These are for the teachers office people principals Peter Kelly RC How many month how many of them were
ordered 700 725 And did we check on buying them so this lease payment comes out of capital the one that is negative So if we bought them we'd really be on the hole then So that's why we lease just because we're just figuring out
what buckets the money comes out of I mean it's a three-year lease and there's a dollar buyout at the end Oh okay So it's not the it's just like buying them And how how much is this going to cost us uh it was 800 grand Yeah 890
over 8,000 over four years Is it four year or three year four year So about 200 grand a year Mhm And our current lease payment actually is around 300 something So this is this is a better deal than what we have right now So
we're currently leasing Yep And that'll be done here at the end of this year Okay Okay And all those devices will be returned and then this would get us our new devices Okay I'm going to ask the same question I always ask Why is source one
so if we didn't use the source well contract with CDW we would have to go out for bid So what which is more time and this this is Don't you think that somebody's making some money on this deal well I I I don't know I mean I'd love to hire out
somebody to bid all my stuff out too but we just can't really afford that because there's someone that's have to make dough on the deal Well one of the things though about these regional units is that they do have more buying power because of the volume of purchases they're going to make Just like paper
you know you can go out and do your own paper bid but in the end you're going to pay more no matter what because we don't have enough volume to drive price down So whether it's Sourceville here or Southeast region in Rochester or wherever they can contract purchasing
just because the volume that drives the price down Well that's fine and I agree with that and I don't have a problem with it but I'd like to see some outside stuff and I don't ever get to every single time It's the same thing We contracted with Sourcewell Source tell us what the best deal is I'm not I didn't hire Sourceville right you did
Okay My job isn't for Sourcewell My job is the school district and I feel an obligation that somebody should be looking outside The same thing with the paper peter You know what how do we know because source told us that they get the best deal we don't know The amount of money you guys spend on printers is
enough to make you throw up right as I saw it So we must go through a lot of paper right was it $18,000 a month in toner i It's ridiculous So I mean I'm thinking that maybe we should look it around a little bit I just like to see it If I saw it five times in a row I
might believe it But right now at this point there's a lot of doubt in the world And people are asking me and I never see anywhere where we went out and got our own deal Where's Marco where's so and so there's other people that do this kind of work And I think that you
know today fine let's go But the bottom line is is that I've brought it up before doesn't seem nobody really cares what I think but I'm going to start to be a problem about it if we don't start to see some outside bids on our own if you need help with it I'll come volunteer my time I've done lots of this
work So the devices themselves is going through the source contract but the the three quotes that we got for the lease one of them was a source contract and we are not going that route I don't know what that means but my point is is that we that means we're
doing our homework Source would be the the bank then So source we lease them from source I you didn't take the source well deal Yes So one of the companies was NCL Government Capital and that is a Sourcewell contract and they were not the least So we went with the Providence
which is not a Sourcewell contract That's fine but I'd like to see us get some outside some outside looks because it's no different than in my business I wouldn't let them go all buy from the same vendor I don't care what that vendor says I don't trust everybody No I agree And like Marcy said the the
financing is a different contract than the actual um purchase And so both of those things are bid separately And I know there are several awarded contracts that do Acer books and CDWG just happens
to be one of those vendors But they like we might have had 15 or 25 um businesses respond or manufacturers respond to that And probably there were three or four that were awarded CDWG being one of them
because of the value because of their pricing because of the the quality of service and the actual um offering that they had So that's there there are other options within the sourceable contract and they picked CDWG
Yeah I'm fine with CDWG and I'm fine with the Acer computers I don't care But I not happy with this It's too much work for us to figure it out I have to I have to be careful how I say this but uh I know a graduate of Brandon
High School that uh can uh offer uh us contracts as well Whatever It's fine So we going to make a motion to approve it Somebody needs to I'll make a motion the computer lease agreement Yeah I mean
I'll second it Okay Yeah I mean we don't have time to do it now Well it sounds like we're saving money too based upon the old one Yes All right We've got a motion by Director Breen and a second by Dr Dondelinger Any further
discussion if not we'll put it to a vote All those in favor please signify by saying I I I Oppose The same All right Motion passes Thank you Thank you Thanks Mars That's it for our agenda
I'll entertain a motion to adjurnn So moved Mhm Second All right We've got a motion and a second I'm assuming no discussion All those in favor please signify by saying I I I All those opposed fine Motion carries And