Want to give it a shot? >> Okay. I'm not the only one. Oh, sure. Yeah. What the way he's trying to I don't know what the way he's trying I think it's always on. You know? Also >> That's your fault.
>> All right, we'll call the 22nd meeting to order. Please join me in the Pledge of Allegiance. >> I pledge 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. >> John, will you please take roll call? >> Jamie. Present. >> Randy. >> Present. >> Sheila. >> Present. >> John, here. >> Jason. >> Present. >> Alicia. >> Here. >> Thank you, John. Um at this time, uh action item approve
the agenda. Do I have a motion? >> So moved. >> Do I have a second? >> Second. >> I have a motion by John, second by Alicia, to approve the agenda. All in favor, please indicate by saying "Aye." >> Aye. >> Opposed, same sign. Motion carries.
New business, item eight. MSBA membership action item. It is the recommendation of the superintendent to renew membership in the Minnesota School Boards Association. Association dues are $5,671, and policy services renewal is $775, for
a total of $6,446. This is based on 1,376 dollar, or 76.87 average daily membership of students served for FY25. Last year's dues were $5,913, and policy services were $760, for a
total of $6,673. Do I have a motion? >> So moved. >> Motion by Alicia, do I have a second? >> Second. >> Second by Randy. To renew membership in the Minnesota School Boards Association from July 1, 2026 through June 30, 2027 for a total
cost of $6,446, a decrease of $227 from FY 2026. Now, I'll take your questions. Hearing none, all in favor of this motion, please indicate by saying I. I. Opposed, same sign. Motion carries.
Item B, uh approval of superintendent uh one-year contract. The actual action item. Superintendent Sadiq requested that his current three-year contract, which is scheduled to expire June 30, 2028, be renegotiated and replaced with a one-year contract covering the period
from July 1, 2026 through June 30, 2027. After reviewing the request, negotiating with with the committee, recommending the approval of the proposal proposed of the proposal one-year contract with Superintendent Sadiq. Do I have a motion? >> So
>> Motion by John, second. >> Second. >> Second by Randy. To approve the one-year contract from July 1, 2026 through June 30, 2027 with Superintendent Sadiq. Any questions or comments? >> I do have some questions. Um
you sent some revised language today. Can you elaborate on that? >> [clears throat] >> So, yeah, that goes to we have to make sure that his pay out happens as far as his his uh
unused time, sick time, vacation time. goes out of his of his old contract? So, we got wording from MSBA on how we support that in the new contract. And that was how they recommended it. >> And what is that pay out dollar amount?
>> I don't know, 175? >> 175,000. Cuz to me it it doesn't read correctly because it says I'm trying to find it here. Um Um Upon execution of this contract, the
superintendent will be paid out all unused sick days and vacation days. Payment will be based on superintendent's annual salary at the time of the notification divided by 235 days. So, what is that notification time? And then
it says payment shall be made June 30th, 2026. So, we're paying it out before the contract is actually done. >> It's >> [clears throat] >> Well, it expires I mean that all we
talked to Pam about this was this done because of that's when this payday is like when she runs payroll? Or was That's what I thought. >> But it But it like contractually that doesn't make sense because this contract is through next year.
>> That same language >> I know I understand it was copied from like previous contracts, but I think that's why it doesn't make sense. >> No, I think what there's confusion in there is he will no longer accumulate sick days in the new contract. Am I correct? And that's why [clears throat]
we need to make sure that his payout happens per his old contract. Kind I don't know if I want to use the same same language, but kind of similar to a retire-retire with our teachers. So, we're expiring his current contract for
the 3 years for that. So, we need to make sure that we are honoring and then we're renegotiating the 1-year contract. >> But he's still getting paid out 15 days. >> No, we have to give him the ESST. No, ESST you do not pay out That's why it says ESST and that was
came from MSBA. >> But it does not say that we're not paying it out. >> Because you can't pay out ESST with the new law and that ESST cannot be paid out. >> Okay. But it doesn't say anything about not paying out the holiday days, either. >> Holiday days?
>> The holiday days holiday >> Holiday days are never paid out no matter what contract. >> Okay. Um and then the personal days it doesn't you know it says you're granted them but it doesn't say if you don't use them.
Again, it doesn't say anything about not paying those out. >> Because he doesn't have severance language either. >> Okay. I just want to make sure we're good. >> Yep. We're good. >> And that's why I copied and pasted this up there all along with the county because there was a change to the other contract. I wanted to make sure we got a
chance to talk about it or at least see it. And we got that on Wednesday from MSBA and I apologize I was out of town for a couple of days so I didn't >> So what's the benefit to paying it out? >> The So the the benefit of paying it out
now is we're not accruing it anymore. >> Okay. >> If we don't pay it out we would have to allow them to accrue. Cuz that's what his old contract did. >> Okay. And to be clear Chris, you asked for this contract revision. >> Yes. >> [clears throat]
>> So ultimately if you it's my way of trying to help the district out. Um you know, looking at kind of the end of my career and looking at it from a timing standpoint it seemed like this would be a good time to to do that. Um
So the intent was to you know, finish have one more year but not have any more severance that goes along with it. Um it would have been easy to just you know, if I was going to go do one more
year to you know, give you a letter of resignation or something along those lines sometime during next year >> [clears throat] >> but that doesn't save the district dollars. And so I was trying to do a benefit to the district
and find um some flexibility in my contract. So, my new contract is going to be a day's contract. You got to work so many days, which would be very similar to what I had before. Um but I'm not going to be getting any
type of severance for the last year. It's It's It's a simplistic time and so if you pay out the severance now, the daily rate that they use to calculate it, it's lower than it would have been if I would have based it off
of last year's contract or the next year's contract. >> But you [clears throat] are working 15 less days. >> Well, >> 230 old contract was 235. This one will be 220. >> Right, but there was also 20 vacation
days that were a part of the old contract. So, in reality, I'm actually working more if I didn't use those vacation days. >> So, the other question I have is about the subsequent contract.
What's confusing is you're looking to be done next June, but the language reads we have to go through this process of a notice by you of September 1st and
then another preliminary notice November 1st, request for meeting and then we have until December like >> I I think those are that are They're Those were put in from the standard
superintendent contract to to make sure the timelines are all set. With my letter that I gave the board, the intent is to do one more year. And then it allows the school district to have time and plan and an opportunity to
uh go through that process to replace me. >> So, if that's the case, I think that language needs to be straight. Because otherwise, it's >> Or you just need me to make sure that I give you a letter in in a in a time and I've already given you
that letter. >> Did I miss an email? I don't know what letter So, you can reply and we can ask them if you can do that by September 1st as of >> Oh, okay. So, you're [clears throat] saying you would provide it by September 1st or >> Yes.
>> I mean, because this whole time frame has like I think this language needs to be looked at, Jason, with MSBA since this is a specialty. This is a normal process. >> The whole contract was sent to MSBA and they're the ones that said to change the
So, uh the sick leave, we have sick leave, they're the ones that told us to do ESST and what the severance language, they're the ones that told us. So, this whole contract was sent to them. >> Yeah, I get that, but the subsequent contract language doesn't It's asking us
to do all these action steps in upcoming meetings um or giving Basically, it's saying until December 31st, which we might need to be doing things ahead of time and that's why
>> It It seems like the language is old language and I don't know that it necessarily pertains to this particular contract in this particular situation with a one-year contract. I mean, to Tequila's point, I'm seeing the
September 1, I'm seeing the November 1, and I'm seeing the December 31st. And And to me, those make sense when you look at contracts of the past. But I'm not sure that those dates in
this contract make sense for it concluding on June 30th or July 1st. Do you see the section that we're talking about, 2A? >> 2A, yeah. >> Yeah. >> And I mean [clears throat] 2A, 2B, 2C,
2D. 2E, 2F. Section 2. >> It's basically just year to year, that would be under contract, right? >> Which you are for the whole year. >> Yes, and that contract is for >> Correct. >> Correct. >> But I also feel you need to follow this
timeline still because the board could renew the contract. >> Right. It is It's language to protect both Chris as the superintendent and the district. >> But it expires at the end of June 30th as well. So, if nothing happens, there
is no contract and >> Yes. But that's not how MSBA reads. >> It doesn't give us you know, it doesn't give him continuing contract rights or anything like that. So, leaving it in or taking it out >> So, who So, who talked to MSBA? You did?
Chris was sent it because he didn't know what the severance language was. >> and Ian and him and I were talking about it. I wanted to make sure the language was correct. >> I mean, this is when I was at MSBA training, that's why an entire board is supposed to be part of a contract negotiation with the superintendent.
That is our job. It's not two committee members. So, it's kind of frustrating to be getting this like a week ahead of time and it should be stuff that we should be able to go through. I had two lawyers look at this and the section three is it should not
be in a one-year contract. I get that there's timelines, but the firmage is very contradicting to what we're trying to do here. I do feel there should be a letter that I'm not saying you're retiring. I mean >> Could not retiring at all. >> That was my
>> language that I was trying to prepare for. >> Right. >> So, I don't That's why I said I don't know if I want to use this language. That was just my comparison. So, don't Yeah, I don't want to say he's retiring. Okay. Yeah. >> Well, you're asking for a one-year shortened contract from your three-year contract. You're asking for a one-year
contract. However that letter reads, that's up to you, I guess. >> So, my understanding that this this one-year contract obviously expires June 30th, July 1. >> June 30th. >> June 30th, 2027.
>> So, I understand that, but I guess what I'm not understanding is what is the next step that our district is waiting for to move forward
beyond July 1, which obviously would be a process that would need to take place before that. And so, when I say that I'm not understanding what the district would be waiting for, when I say that, I mean I don't know if the district would be
waiting for us as a board to do an action other than the action right now, or if the district would be waiting for you, the superintendent, to be making another action toward the board
for moving forward. That's the part that I guess I'm confused about with regard to these dates of September 1, November 1, December 31st. You know, what the next action that needs to take place, I guess, that's
maybe cuz I'm not sure what the letter stated that you presented so far. I mean, I understand what your intentions are, what you're saying. Um breaking, modifying, changing ceasing the current
>> The old contract. My letter basically stated that it was the old contract be null and void and that you accept this new contract allowing the district to be able to do what you need to do necessary for the next calendar year to plan and and to
hire a new superintendent. >> Yeah. >> And And so, that's the intent and if it's not in the contract correctly, that's There's no I mean, the intent is for me to help. >> Yeah. >> Yeah. That's That's what's happening. So
>> Yeah. No, I totally understand that and and like I said, I'm understanding your intent and wondering and and trying to figure out how this contract reads to make that next component of what your intention is and what the district's or the board's
intention would be is what's muddied in my understanding or attempt to understand the section two and those dates. So, that that September 1 date, as an example,
are we waiting for something from you by that date or are you waiting for something from us by that September 1 date? That's That's I guess kind of my question. And then, if we move >> I I I provided that so that you guys are set, ready to move forward.
>> Is there I'm Was a letter written or you're going to write a letter? >> No, I I wrote a letter. >> And who has that letter? >> I sent two, I believe that I have. Except the two both of you guys. >> Do you have a copy, Trishaw? >> Put in your file or anything? >> Yeah.
>> So, maybe that should be a part of the meeting tomorrow. I don't know. >> Yeah, we can go get it. >> Yeah. Letters are usually not part of the meeting, so we can send it out. I can send it to you. >> I just didn't know that this email occurred but there was a formal notification.
>> Well, to renew a contract it says that to renew a contract or renew a contract or we do a contract do you have to give a formal notification? >> Again, it just wasn't communicated by the staff that was doing it. So, I guess the question also like Jamie said
so, your letter is a notification but it states final board action on a subsequent contract has to be no later than December 31. Is that talking about after his contract expires or before? >> That would be this December 31st at the meeting.
>> But even in the September 1 date it says provided that the superintendent provides this notice after September 1st. Well, we're not to September 1st yet. So, are we waiting for something after September 1? >> Well, and the reason that we're doing it
now is that the the new 1-year contract can take into effect and hopefully save the district some dollars. That was the whole intent. If I sit here and we do nothing, I'm still under my old contract and and
you know, the then I get paid the same way that I do in in You know what I'm saying? So, that's that's why that's that's why it's here. >> Yeah, you know, I totally understand that but that's not what >> to start start July 1st so it can start fresh.
>> So, should this should this language have said provided that the superintendent provides this notice prior to September 1st since you have >> No later than July 1st >> Yeah. Yeah, I mean I I guess I guess when we when we looked at this what we
were you know, looking at the contract of saying I want to make sure that there's a new contract in place on July 1st so that the old contract is null and void. So you know, the the stuff that's in the
new contract was basically you know, used because of the old contract but it's only a one-year contract so I'm thinking it's over. No, You know what I'm saying? >> Once again, I totally understand what you're saying your intent is and so forth.
>> And trying to help. >> Yep, absolutely. And and what what I as a board member I'm trying to say is that this language is saying that we should be expecting something from you the way it
looks after September 1st. >> And I can provide that if that's necessary. >> It also says we have to have a special meeting >> Yeah. >> and then >> that there's more to the whole process. >> Yeah, so that's why I'm just really like
I understand it was sent to MSBA but I I feel like this is something that >> Well, section two really is to protect the superintendent and to give us act I'm you know, I'm basically equipped with equipped with not not the word I'm
looking for but to give us enough time to search for a superintendent because we haven't had to do it but it takes a long time. So, basically section two is basically protection for him if he wants to move on we have it in writing that he has to give us
notification we get writing that he's leaving. Basically and then the board can take action at that time we're contemplating not offering the super or if we're deciding we're not offering that it it gives us an option, too. Right. Realistically, it probably shouldn't be
in this contract. Probably because It doesn't have anything to do with it because Item one, duration of the contract for the term of one year, starting July 1, 2026 to June 30, 2027. It would So, none of this section two really
makes a difference anymore. >> That's what I'm saying. It doesn't >> Right. >> Legally, this doesn't make sense in this contract. >> It's It's muddying the waters. >> Making more confusion. >> We We know as a board, but when we preside this, we if we approve it, it's over. I mean, in a in a sense.
Um as far as, you know, the the say the new board or whatever happens after July January 1, if they want to reach out to superintendent Sanguinetti time ask him if he's interested in another year, they may may not want to pursue a new
superintendent at that time. But, this is basically stating that it's protection for the district and for um for schools and for superintendent. So, they know they have a job and we know we have a superintendent. I don't think there'd be anything wrong
with striking it because it has nothing to do with this term with this current contract. It's already a one-year contract. >> Yeah, if you want to strike it out, then I'd be fine with that. >> These sections
>> At least A and B. I don't see >> superintendent not to offer such a >> I feel like at some point there has to be obviously an action by the school board to do a search. Not >> Mhm. >> Great. That doesn't have to be in his contract per se, right? We just
>> We'll have to take that >> action. >> So, we could strike all the way from A to F? >> That's what I was Yeah, just rolling through. >> All section two. >> To all of section two. >> Yep. I think we can. Without getting us anybody in trouble.
>> [snorts] >> Anybody else see anything wrong with that? I was kind of wondering it. I thought about sending an email to Terry, but I wasn't sure if Terry had replied or what was going on. >> It was Gary Lee who had >> It was Gary who replied. Because basically I am one takes care of
section two. Cuz it's a one-year one-year deal. So right now I have a motion by John. We have a second by Randy. Um to approve the one-year contract from July 1, 2026 through June 30, 2027.
With some kind of sign you with the uh with an addendum of removing section two A through L. Basically all we're doing is agreeing >> I just think you can say section two is because there's a lot of twos that
needs to be It would be section three >> Three, subdivision two. >> Yeah, and then A through L. >> Section three, subdivision two. >> A through L. Just so that way there's clarification just because there's other twos and then
three's, we have to fully document it. >> Okay. Any other questions >> I have a motion by Lisa and a second and a motion by Randy and a second. >> And I'll read that to you before we do a roll call vote. Okay.
So, I just want to say we have a motion by John, second by Randy to approve the one-year contract from July 1, 2026 through June 30th, 2027 with Superintendent Sandgren being moving section three, subdivision two, A through F.
All in favor, please indicate by saying "Aye." >> Aye. >> Aye. >> All those the same sign. Motion carries. Thank you, everyone, for the discussion. Item C, resolution to initiate fall school board election, action item,
resolution number one. It is necessary for the school board to adopt a resolution to initiate the fall school board elections. The school district will hold the general election on November 3rd, 2026 to elect three school board members for terms of four years. The board members whose terms are
expiring are Jason Lindeman, John Lamp and Lisa Walker. The candidate filing period is for the general election is July 14, 2026 through July 28, 2026. Do you have a motion to approve? >> So moved.
>> Motion by Lisa, do I have a second? >> Second. >> Second by Jamie. And I just wanted to point out that the filing was place is the district office. >> Correct. It is posted and was in the newspaper last Friday and will be in the paper
this Friday as well. >> Okay. Um so, a motion by Lisa, second by my Jamie. Jamie, would you please take a roll call vote? >> Please signify for or against, please, when your name is called. Alicia? >> For. >> I say for. Jamie? >> For. >> Caleb? >> For. >> Brandy? >> For.
>> Jason? >> For. >> The motion carries 6-0. I have D 2026 to 2025 to 2026 budget revisions action item. Director of Finance, I check with the
following 2026 2025 2020, excuse me, 2025 2026 budget revisions for approval. Do I have a motion? >> So moved. >> Motion by Caleb, do I have a second? >> Second. >> Seconded by Jamie.
Kirsten, you're up and then >> Um Yeah, so I'll just go through a little bit on this. So, every year in June, we do the preliminary budget, which the 26-27 is the next agenda item. And then,
in June, we kind of do a revised budget once we go through things, negotiations are settled, kind of see where the end of year is. So, that's why you'll see on this first group, we have the proposed budget that was approved last June, and then the revised budget in red.
Looking at just that fund one itself, which we kind of look at what their fund balance policy with this revised budget, this puts us at 20.9%. Um This does increase a little bit here and there once we get the actual audit
numbers and go through the audit process. Um audit is scheduled for August 13th week already. Um so, we'll start um getting everything put together in the next month of all their things that they need. Um
Couple other ones you'll see, you know, just going kind of down is um food service, we did have an increase again in our fund balance. Um Construction fund, um, fund six, you'll see our revenue is a little bit higher than what we had proposed. That is just
because of the LTFF fund that, um, we did approve in November and we received. So, that's where that kind of bigger difference is. Um, the expenditures for fund six, that's our roofing project. So, just depending on what has been completed last year and
this year and, um, so that will fluctuate as well. It's more coming. Fund 10 and fund 21, those are all like activities, student activities, things where it all just depends on what fundraisers, donations they receive. So,
the revenues will always fluctuate along with just the expenses just because you don't know what activities are going to be done year to year. You know, band goes every other year. We have the STEM trips, the Spanish trips, they kind of go every other year. And so, just those expenses, you just
don't know. Um, so that's why there's always just those little differences, um, in the student activities in fund 10. The scholarship account, those are just all the little miscellaneous ones that can't come through. A lot of organizations can't just donate to a
person, they need to go through a school and then we write them a check. Um, this also includes the Dolores Urban scholarship that came from a cloud of us. So, those, um, so that kind of is what that fund 18 account is. Any questions on the revisions of the budget?
When I first proposed this, I, you know, just wanted to let you know it was at 18%. So, I think, you know, it's looks good being over that 20% like where our fund balance should be. So, hopefully it will be increased a little bit more, um, once that is finished. >> We're a little above 20 with this one,
then? >> 20.9. >> 20.9. >> Yep. >> Just a little bit. Just a little. All right, do you have any questions for Christian? All right, we have a motion by Caleb, second by Jamie, to approve the 2025-2026 budget divisions as presented.
All in favor, please indicate by saying "Aye". >> Aye. >> Opposed, same sign. Motion carried. Item B, 2026-2027 preliminary budget action item. Director of Finance, I check for provided information at the board meeting. What is the motion?
>> So moved. >> Motion by Leticia, second by Caleb. >> Aye. >> Thank you. Christian. >> All right, so for 2026-2027, um they're all listed kind of what our expenses and revenues are right now and
what that we are looking at. Um this is including all the reductions that have been going on that Superintendent Soundy has been doing. Um this does include his severance payouts in FY26. I should have mentioned that prior. That does include
that already, so I budgeted that in. Um so this does make all the changes of replacements of teachers, um the superintendent's contract, and then also the contracts that we have left. Um those percentages are above the the 3%
like we normally always do. Um the thing with this one, um this is again underneath the fund balance policy, this comes in at 17.3%. Which again, we always kind of with the audit, we
kind of always are a little higher, so I'm hoping again by the time I would give this revised budget back in June, that we'll see that again over the 20%. Um otherwise, everything else that is listed, it's kind of just you go by
what um we budgeted this year or what we're at this year and stuff and kind of going down. Um Matt Munchow does very good job on his community service fund four. That is just Fund four is all of your community ad, preschool, all that. So, he did you know, he takes care of that
himself. Um, again, Fund six, that can fluctuate just depending on how much in interest we receive, how much is actually done and going to be done this year, and what we have left. Um, on 10 and Fund 21, again, just always
depends on what fundraisers activities they do, um, and what trips are going on. >> You mentioned to me today that because of our increased insurance costs, there's a lot of teachers or a lot of employees on the state level that are changing their plans for insurance.
So, that goes back into general fund if we don't end up spending that dollars, right? >> That is correct. >> Okay. >> Yep. >> So, basically, the GS the GSL portion of paying for insurance would not be paid for people that don't want insurance. >> Correct. And if you did make some of those
reductions already just because we know already who's not taking next year, but I didn't want to take too many away just in case we get new staff that take it or if somebody needs to go on it, we always just want to make sure that there's still that buffer there that we're calling for some of that.
>> And then that answers my question. Thank you. Any questions for Trisha? All right, I'll >> [clears throat] >> motion my least to second. My camera to approve the 2026-2027 preliminary budget. All in favor, please indicate by saying I. I. Opposed, same sign. >> Opposed.
>> No. >> No. >> No. >> And it would be for reasons that I stated last year, but I do want to thank everybody for their input into the preliminary budget. I want to thank you, Trisha, for the work that you've done in putting it together just as last year as well.
Um, my no vote against this is once again preliminary budget coming in below our fund balance policy, which was the case last year as well. Last year the preliminary budget as you stated
was looking like it was going to be 19% or thereabouts and right now it looks like we're coming in at 20.9 like you said. Um but I think something that kind of helped with that was the unfortunate disaster at Lakeside and some of the construction
uh insurance I should say offsetting some of the expenditures and things too. But you know, with that being said, um this 17.3 preliminary budget for the 2026-27
school year or fiscal year, um if if we come in as we have in the past, we come in typically higher than what our preliminary shows us, but in this particular one that we just
wrapped up, it was just 1% so if that were to be the case with this new uh budget, 17.3 coming in 1% higher than that is going to be 18.3, which is still below our 20% fund
balance policy. Um and let's knock on wood and hope that we don't have to get any insurance dollars or anything coming in because of disasters or whatever taking place in the district or other unforeseen
expenditures or revenues coming in. Let's let's hope we've got some some solid things happening, which we typically do, but the things that we don't have control over such as snow removal. Um and expenditures that are heating,
cooling, electrical. I mean, the things that we need to do to keep our facilities um operating for our staff and students um are things that we don't have control over as far as the rates and things like that.
Um, and of course no fault either. So, that's that's my reasoning, but I do want to thank everybody for their input into this. And once again, um, with the vote um, as it is, I'm totally on board, and here we go.
>> Just to clarify, Jamie, just because of our insurance claim our percentage would still be in the same almost because what revenues are getting in is taking care of those expenses. We're not making money on that insurance claim. >> The biggest change was the health
insurance. >> The biggest change was the health insurance, correct? >> And the other >> And another thing that is we have so many placeholders. So, that's why when the audit comes, you have that bigger increase in percentage from what the
revised what the preliminary is what the revised to what the actual is. So, when I started working on the 25-26 revised because we're doing this so much later, I was able to go to like para salaries and go, "Oh,
we didn't spend 10,000 because they didn't have any time or we didn't have a para. I can move that down." So, that's why I was able to actually increase it by 2.1%. So, the preliminary was 18.18 last year, and now the revised is 20.9.
But there's other areas that I didn't touch yet just because of the unknown of 2 weeks. >> [clears throat] >> Anything can happen in 2 weeks. Um, so that's why I think there's always that bigger increase on those. Um, so for the 2026-2027
budget those placeholders are still there. I didn't take them away because we're in a full new year. So, that's why I do think um it comes at a lower, but we could end up at a higher, but like you said, James, it's normally low.
Just some of the unknowns that we don't know, but thank you. >> Well, and I appreciate you having those placeholders cuz that's obviously smart budgeting and and smart accounting and and accounts for and gives us some of that cushion to to deal with the
unknowns. And so, I appreciate that very much and and once again, I I look forward to seeing what the final is. We'll we'll all look into our crystal balls to see what that's going to be and and hope for the best um as we always do. >> Yep. Thank you. >> And how about the new cost for the
short-term disability, for lack of a better term of it, that was like 126,000. Am I right, close on that number? Or how What What was that number? New cost for this new year. >> The increase you're talking >> Yeah. Because we got to pay the the school
district has to pay the 4.44%. I thought the total cost on that was like 120,000. >> Oh, for paid family medical leave. >> Yeah, paid family leave. >> Yes. >> I understood what you were talking about. >> Yes. Yes. So, yeah, so that That would have been an increase for 26-27. Yeah,
because of the point We can We call it 0.22 because of half a year. >> Okay. >> But now it's in the budget fully, it's 0.44. So, when we found this back out that it was going to take effect, we started working those in with the revised budgets, too. You
know, so, like, granted, we're approving them preliminary, but the revises are going to be start working on July 2nd already. And then you just kind of go every month relooking and you know, if we have to hire somebody, we're redoing it again and stuff. So, it's it's being worked on
all year round. >> That's a new expense this year, new too. >> Yes, but it is it is a new expense for this a full year expense. >> Yeah. Any Any upcoming contracts that we've got within this budget is going to be
uh in Minnesota GSL 284. No. What do we have? >> No, district office, IT activities director, and community ed director. >> For >> 20 >> For this coming >> For 26 20 7. >> Yeah.
>> 27 28 would be paras >> Paras >> Yep. >> The 1st of July of next year. >> Yes. >> Thank you. >> You're jumping the gun a little, Jean. >> Well, they're going to have >> they're going to >> They're going to have >> Didn't we just settle this?
>> That's the cycle of contract [laughter] negotiations, right? The never-ending cycle. All right, moving on to item half operating referendum, I understand. What do we want to What do we need to discuss in here? Do we have anything on
>> So, kind of yeah. So, I talked with Jeff Seeley. Again, I'll just talk and walk at the same time. Um so, we have to let like the auditors know, or not the auditors, like the county know by like August 11th. So, we would have to have a
special meeting by the end of July. He says that you should at least give yourself a week. Um so, if we want to try to come up with something, give some information now, do it at the July meeting, um so that way he can prep it, or do we schedule another meeting just for the
operating referendum in July? >> We have to let them know if we are and a dollar amount. >> Correct. >> Yep. So, that's why I agree just need to figure out kind of that. So, what I put together here is this projection model that I've been working with with others
on. Um I had to kind of move it around. Yep. So, when I send in the information to others, I gave them our 24-25 numbers,
which is our full audit. Then our 25-26 living area at the time. Then I gave them the revised. Then 26-27, I'm like, "Hey, I already have our budget kind of started. Can I give you that to put put in?"
So, kind of everything in the the lighter blue with the numbers are things coming from the budget. And that has been done. Everything in the white towards the right underneath the years, all they did was copy and paste it over because you don't know
what those numbers are. So, the stuff that are underneath the total non-spendable amounts, restricted amounts, those dollars are restricted, meaning they can only be used for those things. Staff development, LTFM, operating,
gifted and talented, safe schools, so forth. So, I put in whatever percentage what we ended at for 24-25. Then I went in for 25-26 to kind of put the numbers in a that is showing what our revised budget
is. Then the 26-27. So, the first one, you want to look at the yellow numbers. So, our fund balance policy includes restricted. Unassigned fund balance plus restricted
accounts. That's what our fund balance is. That's how we get to the 20%. So, at the first the first page would be if we went for an additional 800,000. The second page would be if we went for additional 1 million.
The third page is 1.2. And they're all at the bottom. Can you guys see the writing? Right at the bottom, I have additional 800, additional 1 million, additional 1.2. On the backside of each of them is also the tax impact, so that way
you guys had it right there when you're looking at them. The last page is if we do nothing or it does not pass. I just wanted to make sure that I kind of included that to the board as well on that to see. >> And Tricia, it's also safe to say that
there's assumptions that they're plugged in [clears throat] with a little bit of the declining enrollments. >> Yep. >> But our FTE count is basically the same. Okay. So, and programs are the same. So, like we haven't made any reductions. We're not planning on making reductions
if we kept things status quo. And it's similar to what we did this year, right? We we we did make reductions, but we didn't go all the way into more to reach our fund balance policy per se because of the fact that, you know, the next level, if you remember
from our conversations in our work sessions, we were going to be getting into programs and we were going to be getting into more people. And the the thought or the plan was that we were going to reduce as much as we
possibly can before we got to taking those programs or people. And um and then with the plan of going out to the voters to support so that we can keep our programs and we can keep our class sizes at a at a at a at a good
level. So, when you look at these numbers, those types of things haven't aren't put into it as well. So, and that's where it's kind of fluid and, you know, predicting the future sometimes gets to be a challenge. Um Um
there very well could be natural reductions that happen that we have always done and will continue to always do that aren't playing into this. And so, um you know, those are things that that I I think we're going to happen
regardless if we, you know, whatever dollar amount we go for. Um I I I think we're going to still going to try to, you know, run the district as efficiently as we possibly we can. But these numbers that you're looking at them ultimately are doing the assumption that things are staying status quo. Just
so you guys have a little bit of an understanding by now. >> There is one reduction that we did in this, and that would be for the 2027-2028 school year. Um I did take that fifth section away. >> Out of sixth grade.
>> Out of sixth grade. So, I did do that. Um another thing that's in here >> Which is like 100,000 >> Correct. Right. I put like 60,000. >> Okay. >> I can change the dollar amount. Um another thing is increases on salaries are already kind of included in
this, so I can change that around each year. So, I've done that, which then also changes their benefit amounts. So, that's already done. Um if you would decide to do a freeze on salaries, then it would just go back to
0% type thing. Um What are we going to do about it? >> I guess So, Chris, when we were talking about this, you had thought you know, like 7 or 800,000. But if I'm reading this right, >> That was from the preliminary.
>> Okay. So, it's That's not going to cover >> If you look at this now, you'll get your answer right. >> 7 to 800,000, we would be negative by >> But again, 7 or 800,000 additional dollars with
running more efficiently, that combination could be but that's where the balancing act comes into play of what >> I get that. I think I just struggle with asking people for money and then you have to turn around and cut people in two years. It's not going to >> [clears throat] >> Right.
>> I think no matter what dollar amount you ask for, you're going to have to cut. And then I think we have to be honest when we're doing this that you know what I mean? It's like >> Well, for sure. It's a It's a balancing act, right? Of do we have to lower our class sizes just because we're going to keep our FTE and have
them have our elementary class sizes be at 12? Right? You're going to need to find that balance but amongst it all >> I honestly don't think any amount's going to be the right amount. Um if you listened or cut some of Chris's updates on the November
election, there's going to be another question on there which I'm going to be doing a webinar on. I think it's next week or in a couple weeks. Changing something, you know, the 1775 I think it is.
I don't remember what the bill was now. And I don't know if that's going to hurt us with the state trying to ask for money for more money to help school districts and then us trying to vote to do this as well. >> no dollar it was no >> Are we talking another con- constitutional amendment?
>> Yeah, quote unquote no. The taxpayers are not paying for it. It's just changing the amendment to take out of our bond. >> But what What What additional dollars will the schools get? I don't have any idea what that means at this point in time. No. >> And we also don't know if
with that additional money that we would be getting perhaps if it comes with any strings attached as far as mandates of >> Where Where is that money actually going to go? >> Right. And then restricted versus unrestricted. >> Correct. And that's the hard thing. You know, when you look at the restricted ones
that just mostly shows on this page, say for instance LTFM revenue. When they punched in these numbers like for 2728, it was a negative 6,000, then it was a negative 117, then it was a negative 186, and I'm like,
"We don't spend over LTMF revenue. Like, what we get is what we spend." So, like, I changed that. Um staff development, we ended, you know, with a rollover balance of 25,000. I think right now we have 60,000, so that's going to change that. You don't
know what each year to each year is going to bring. Um safe schools, you know, we didn't have an SRO for the full year. For 2627, I figured, "Oh, what our ending balance
should be." But I don't know what that would be going forward. Are we going to get more money? Are we not? School library aid, that has changed so much in how much revenue you you receive. So, the problem is is it's hard to look out 5 years. This is nice,
but then you just got to figure out, okay, how much revenue do you think you're going to get, and how much do you think you're going to spend? >> All right. We've got information. I guess we got some looking to do, reading to do. You will give us any more updates on anything if you get anything
from them. Thank you for working with others on this, and we'll have a meeting to discuss I guess July where we'll have a special meeting, and then decide what to recommend. >> Because you just said you don't want to I think our August meeting is what, the
10th? It's on the third. >> It's the third. >> I think so. He's like, you don't want to approve it the 10th because you have a lot of things that you have to go report by the 11th, and if something's wrong, then you ain't going to get it. So, that So, I would at least He said a week. Um Jeff
is gone for 2 weeks there in July, but there is somebody else that does do do this, too. Um so, he's We'll we'll be fine. If I just be like, "Yep, we're going to move forward. I just don't know the date and amount yet." He'll Jeff will prepare it and then have the other one finish it.
>> All right. Any other questions on it now? >> If you have questions in the meantime, please don't be afraid to reach out. Stop in. >> I mean, if I I just want to make sure I'm reading this right. If we do nothing, >> Correct.
>> It says Well, it says last year we were short $847,000. Because we went under our fund balance, correct? Well, that doesn't make sense though because >> No, you want to look at the yellow and the what's in highlighted in the yellow.
So, when they figure out when they put this together, they don't include their the restricted amounts. And what's in our fund balance, we do include the restricted, so I had to redo it. So, if you're looking at this, um
>> Cuz on top, so revenue and expenditures, and it it shows the years, but we overspent $500,000. >> For 25 26? >> Yeah. >> That is correct. >> Okay. >> Yep. >> Okay. >> Not the 800. >> Yeah, sorry. >> Nope.
>> And then, so by 1.1. >> Yep. >> Which doesn't mean >> we're in the hole, but we're dipping further into our fund balance. >> Yep. >> And essentially, our fund balance would be extinguished, which then we would be in the hole. Or what is the
>> So >> What's the percentage What's the percentage for that? Is it zero? >> So yep. So if you look at the bottom of the sheet, it says SOD calculation and there's our percentages of SOD. >> Okay. >> So by 29, 30, we would be in SOD.
>> We would be negative. But when you're 0.25, you're still considered above water. Is it zero as threshold? That's what I'm asking about SOD. >> Yes. >> I believe so. >> Yeah, because it says okay, okay, okay, okay, okay,
and then it's SOD, SOD. So yeah, once you hit that, below is your SOD. Which I like that that they add that, so that way you know, but you also know already if you're spending your fund balance, you already know that you're already going down. >> Yeah, pretty good.
Okay, thank you. >> All right, at this time, I'll ask for a motion to adjourn. >> So moved. >> Motion by Alicia, I'll second. >> Second. >> Seconded by Randy to adjourn at 7:00 or 6:54 p.m. All in favor, please indicate by saying aye.
>> Aye. >> Opposed, same sign. Motion carried. We're adjourned.