Welcome everyone uh to this um Lakeville 194 school district work session. on June 9th. It is 6:00 p.m. and we are getting started here. Um, if we could do a um a roll call starting with my left and going around.
>> Uh, Bill Homegrren, >> Kim Baker, >> Michael Bowman, Matt Swanson, >> Carly Anderson, Brenda Alrech, >> Michelle Humphrey, Brian Thompson, >> Emily Emily McDonald, >> Paul Carbone, >> Tracy Brhold, >> Joe Burke was guest, and Amber Cameron.
Um, with that we'll get started. Um, thank you, uh, Joe for being here tonight, um, to discuss the arena's annual report and budget. So, I'll turn it over to you. Is that okay? >> Okay. Um, it's been another really good year. Um, I don't know if you have your slideshow
up with you or um, and I'll just kind of walk through some of the highlights of the year. We had a record year in ice sales. Um, we have we actually doubled our revenue since I started in 2020. since our high in 2019. We hit our doubled this year going into this year.
So excited about that. Um, first thing I'd like to just point out for anybody that's new is we are a joint powers agreement between the school district and the city. Uh, so we are a separate entity and I report to Michael and a few other board members and Carly. Um, but
we are we do not use any public funds to operate. It's all paid for through what we revenue that we generate. So um we are very proud that we have never dipped into any public funds to operate in the 16 17 year existence of Lakefield Arenas
and um I think that's a attributed to the past managers and both the school board and and city. So um we uh we had our first full year of the pavilion the new pavilion rink uh
outside and with some improvements I'll talk about on that. We had another record year of iceours sold. We had over 6,600 sold. We had Maggie Flity, a Lakeville resident that won the uh Walter Cup two years in a running with the uh women's
hockey team. Uh we launched inaugural hockey camp mini might hockey camps in 2005. As we starting into our programming, we hosted our first figure skating competition event which was brand new.
Um and our learn state again became a record record attendance. So our ice hours I mentioned are up 549 which is in new programs and tournaments and offseason programs since we expanded
the ice arenas to 247 3 all 12 months a year. Uh we used to operate much less. Um LHA bought quite a bit more ice because of the pavilion rink. Adult hockey hours are up 32 hours last year
and our pickup ice sales are up 45 hours. So again, we're growing in every aspect. Um, our might leagues, our skills competition, and I'm excited about some of the new things we're launching this year, which I'll talk about a little bit later.
Highlights again, Lakeville Hockey Day is always a very strong event. We hosted a pee-wee tournament, a regional tournament in 2025, and a state tournament in 2026. So that's in the world of hockey, that's a pretty big deal to land one of them.
Um, we did host at the beginning of 2025, which I mentioned last year, we hosted the US Hockey Hall of Fame game with the Minnesota Women's Gophers in Baiji State. Our uh heritage figure skating club continues to host an annual
event which seems to get more popular every year. Um, so from that standpoint, an upgra update on the pavilion rink. It's year two upgrades. We learned a lot our first year, especially with the wind and the sun. Uh we had trouble making
and keeping ice in the beginning. Uh so there's a picture. You can see the new sunscreens installed. They'll be stretched this year. So they'll actually almost look like walls. Um but that's >> sun melt ice. >> Sun melts ice more so than I thought. Our ice plant didn't quite cover it.
>> Paying attention to chemistry. I was going to say when that was first open, I had my one of my kids was practicing out there and I put my snow pants on and my jacket and just walked around the rink cuz there was so much cold wind. It was cold. >> Yeah. >> But this year we finally, you know, we
got all the locker rooms completed, the heaters in. We'll have the heaters over the benches and so forth. And all this is upgrades that we're doing ourselves in order to stretch our dollars. Um, so it'll be almost enclosed this year, um, outside of some areas, but everybody did
comment that it was much warmer or, you know, much better this year than the opening year where it was completely wide open and it was difficult, which I knew the novelty of it was going to wear off after a couple years, but it wore off right after the first years.
>> So, and it's got footings in for permanent walls. So, the sooner we get to that world, the better. But, it's been actually I'm very excited about it cuz I think the off season once we get the summer events going in there, it's going to be a community asset, not just
a hockey asset, you know, with kinson. We already had a kinera in it and we a lot of community type events. So, I'm excited about that end. >> What does that mean? >> So, I'm sorry I didn't see I'm going deaf actually.
I assumed you were speaking Spanish, but I don't do that. You >> said >> Yeah, kinera. That's all I know. >> 15y old grand. >> Yeah. >> So, from a financial standpoint, we had another very good year. Like I
mentioned, we were almost pretty much doubled going into this year. We we were doubled. Um we did hit we do um hit some roadblocks with electric is very up. So, we have amended the budget is is in the
packet and there's a lot of notes on what we did to adjust the budget. We're in good shape to meet, but um electric and some of the utilities are way up and some other things, but we're in good standing, good position to adjust that.
Um but as far as growing goes, I want to point out a couple things on our revenue. We started diversifying revenue when I started six years ago or five. It's going to be six years already. Um, and ice rental revenue right now is
um, one of our biggest growth, but our programming has taken off this year. Um, this is our second year of camps and we saw an increase of over $100,000 just in our ice c. We're launching a whole bunch of new that's what we hired a full-time
programming person. So we will see our revenues the diversified revenues which is our learn to escape program our programming which went up 26,000 last year or this year it's going or 67,000 um it's going up 100 probably be up
$200,000 this year. So, and and the reason I bring some of this up is it used to be seven probably 90% of our revenue came from just ice rentals. I mean, that was we sold ice and we skim,
but we ice rentals are now only 72% um of our total revenue base. So, concessions, we had a record well, we had a equal year in concessions. This is $300,000 a year. So, now we're revamping that and going to go after the half
million mark. Um, and I said we're next year we are launching all our new programs. Um, so we're excited about that. What I'm really excited about is we launched a new um, community ICE programs. So I've kind of grown weary of
we kind of got hit hard by the kids for profit groups that come in and make a lot of money off the kids in the summertime. Um, and a lot we had a lot of cancellations this year. um which kind of hurt us. So we are launching even more of our own. So just for an
example for $750 a year hockey players are going to get our breakfast club training. We're taking over that. Somebody that left we're, you know, so that's all year before school before classes. That's a popular training program. We have our might leagues. Um,
we're going to be launching a fall training program, our open stick and puck, but that's all included in these new memberships. So, and it's a value of probably about $3,3600 if they were paying from the forprofit
people. So, we're really excited about launching this for the community, especially with the way we think the economy is going right now as far as those of us down below that we're feeling the crunch. So, um, and we launched one for our ice club memberships, which is for the figure
skaters and so forth and people that just want to use the public ice. Um, so I think that's the most exciting thing about coming up next year. We're anticipating some very large revenues from that in addition to that. So, I'm sorry I go off on the financials. That's my favorite part of this job. So, I
apologize. I'm droning on and I know I've been told in the past you need to back off on that. Just hit the highlights. So, with that, I'm going to close. And if there's any questions or comments you'd like to share, this the budget is included. What we're required to submit this to the school board and
the and the school district simply for comment. You don't have to vote or approve anything. It's just any comments. If you don't have them now, you can provide them to me at another time and I take that back to our board before we adopt the budget. So, >> yeah. Matt,
>> rand random question. What was the construction between Hosi and the pavilion? >> So, we're putting in the dirt that's there piled up. >> We are in we're taking containers. Um we're going to put two of them together on one side and one on the other. So,
there's going to be a concession stand there with a container roof that we purchased that is just for containers. >> So, we're going to have a concession stand there and that's really geared at the summer events. And on the other side, we're going to have a catering kitchen like much like a park pavilion. So when it's rented for graduations and
family reunions, people can bring in their food and have a commercially licensed kitchen for that. So, and then we're doing the same off the back of it for a temporary Zamboni shed and storage area. So, >> awesome, Brian. >> Yeah. And so, uh, great that it's being
utilized more and more. I'm curious with the expansion has there has the backlog of customers who are wanting to use it declined or has the backlog have uh has grown because now you've got this recognition you've got two facilities you got
multiple facilities XYZ so that's my first question and the second one is that uh with expenditures going up uh it does look like you guys are increasing rates and and so I guess I'm curious to know that are the rates going up because the utilities and all and that's the
factor that's going up or are we looking at other ways to cut costs so that the rates stay stagnant while other costs go up uh so that parents while we have these nice facilities it's like every year they got to pay more but again it's a community facility so like what can we
do to lower the cost and and again staffing wise every year there's a raise they get a raise they get a raise but eventually >> we will get to a point where their economies of scale because we've got these multiple facilities where you can purchase more with a lower rate or a lower cost and then how do those
statements get passed to uh you know participants? So again you've got a backlog I'm sorry is there a backlog and then two uh 3.6% rate but like what are we what are you what are you guys doing about that for next year because again as as a Lakeville community member every year I I I might complain I don't have a
hockey player but like I might complain rates are going up again rates are going up again. I thought this was supposed to be you know less expensive. >> Yeah. Um, so to address Well, hockeyy's never expensive, >> but um to address the first one, pardon. >> Did you say never expensive?
>> Never less expensive. >> Hold on. >> I said it's not less expensive. >> Okay. So, um the first one, as far as a backlog, there is as far as demand goes during the winter season, the demand is
for instance, it's getting stronger. Um the LHA is adding I believe five teams at the squirt level this year which is a huge jump which also means the might levels are going to follow that and probably increase as well. So demand during the summer or winter they're
actually purchasing more hours this year. Um that's going to continue to grow. I think for the foreseeable future depending on how the economy goes. I think it's some of the extra spending like I mentioned that will maybe decrease which is my off seasonason which is another reason for us putting
in the program to back fill that preparing for a decline in them customers. Um because in the summertime it's very competitive out there and they're out pricing everybody trying to lowball the arenas against each other for tournaments and so forth. So by running our own we actually we gain some
profit on top of profit we wouldn't have had. Um, and that's really what's funding the majority of our expansion is our summertime ice time. Um, from a cost standpoint, interestingly enough, we had been holding and my goal had been to
hold our rates um, at a much lower rate and we had been holding them until last year when um, LHA asked us to actually raise them. and instead of providing a large
contribution to help us finish the pavilion rink, um the tarps and so forth and the warming houses and all the amenities, they were not part of the original budget. So, they actually requested that we just increase the rates by $30 an hour to pay
for all that to help with that. Um, but the board at the time, we decided only to go 20 and then wait till this year to do another 10. So right now that 10% I believe is a 3.5% increase in the rates um expenses you know we are obviously in
a growth mode right now with the pro we have a lot more potential out there so in the near future the next few years I don't see that us hitting that wall for quite some time >> unless everything totally bottoms out. >> Yeah. I mean hockey cannot be people
might like oh hockey is not cool let's go play baseball instead. I don't know. Um, maybe not. I'm just kidding. The So, I know for for for our school district, we have different tiers in our facility fees. And so, does
do do you guys offer some do you do something comparable to to that model? >> We have just a standard price um standard winter rate with an after 10 p.m. rate. Um, so there's that's the tier that we go to. um or during school
days in the morning. So, it's a cheaper rate there. Like that's where a lot of groups >> when I say tier, we um if you are a high school resident, you get a lower discount and then if you're like a a for-p profofit, it's classification >> classification. Yeah, >> we do not do that. Um that's pretty
>> there are a few generally you see that in the public arenas when there's some funding being provided. Um, but ultimately we rely on just as heavy. You know, our agreement with LHA is we never charge anyone more than you. Um, and one
of the things I did a few years ago was I instituted a fee schedule, which never used to exist. >> Um, cuz there used to be a lot of bargaining and negotiating that I just wasn't comfortable with. I think everybody needs to pay an approved rate
and uh so there's a summer rate and there's a winter rate and they're prime and everybody pays the same. >> Yeah. And and I'm not on the board, but I would assume or I would I would ask that >> um if I'm a Lakeville community member, ideally I would like to be able to pay a
discount or a rate lower than someone from Apple Valley coming into my place. And if I've got another association or a hockey association wanting to use Lakeville facilities, u I wouldn't want them to be able to take my spot and and pay the exact same rate that I would pay
at a different, you know, cuz cuz I'm I live here, you know, and my taxpayer dollars contribute to this and the people in our community fund the revenue and the expenditures. So, similar to what we do at our district, if you are an association or organization not in our community, you pay a a higher fee.
Now, I don't know what the percentage is. Maybe it's like 10% or like a 15% bill tax. I don't know. But >> what we what we tend to do is we have we pro we give priority to residents in Lakeville. >> But but no cost savings to the residents. >> No, there's no cost savings. I mean
really realistically arenas are based on it's that prime season 24/7. >> Yep. >> Um and they buy 90% of the ice or have access to 90. So So that's really what pays our bills year round. My goal has been to lower the rates through the summer rentals and my maxizing.
>> Yep. >> Off the for profit and we were definitely on that path, >> you know, but you know, it comes down to paying them bills year round and um so >> and and our residents are the ones that generally cover all all of that. I mean,
>> uh Lakeville like LHA right now, which is your basically residents are down. It used to be they were probably funding about 80 90%. Um I have that down now too. They're probably I think the last time I ran the numbers on it was down in
the 60%. >> Um so we're making headway on non-resident paying their paying their fair share. >> That's a question because we're the the school district, right? And so I love LHA.
>> I know you're members. Um but that's not under our purview, right? That's more of a So to help me understand, obviously our high school teams are using the ice, correct? How does that work? Are we paying a fee? >> You pay the same ice rental fee. >> Okay. >> And that's our primary relationship.
>> Yep. >> Okay. >> I don't want to pay that fee. >> I mean, let me phrase it. >> For profofit model, >> I understand. I think I mean if we're going to be a part of this I mean I I think that our our district our students should be able to get a discount or should have a lesser fee than someone
else from another community from another district. That that's all I'm saying like that that's my point of view on that one. >> But what I'm hearing you say is >> they're not there's really no other users during the winter now. And we rewrote the policy for LHA because it used to be LHA got this many hours
>> then they would jump a high school always gets their hours first then we jump to LHA then we would go through because uh Rosemont or neighboring communities are some of them are part of so it's based on their student base are
part of Lakefield they're residents so then we give some to Farmington some to Apple Valley you know so we'd have to go through a whole step which we we cut that out. We rewrote the policy so that LHA gets everything they want first and the school district. So,
and it's been a little bit of grumbling at the other communities who while we have residents too. Um, but the majority are well taken care of and are put on top of that. Well, so the increase then also impacts, I'm assuming, our budget because or the school district's budget.
I mean, when you increase those rates and our uh hockey team and anyone else who uses the ice, I mean, we're getting hit, too. >> But the alternative would be having to build our own ice rink, right? So, >> well, the alternative is ask the board at the arenas to say, "Hey, make sure
our Lakeville residents are taken care of first and then, you know, jack up 5% for those that are not Lakeville residents." very much to our classification model for our facility use. I mean, we've got Bill, can you do a quick half an hour? I mean, not half an hour, like a paragraph overview like
if you're a class two or a class two, define what a class one, two, and three is. And because class 3 is paid way much more, right? Or at least >> Yeah. A class three is for profofit. Okay. So, they have a heart higher rate than our nonprofit people. And then then we have our booster clubs and our real
local people. That's tier one. And they have the lowest, right? Yeah. So, we have three tiers. >> Matt, >> isn't the increase, didn't you just say it's like 3.5% for this year? >> Pardon? >> The increase is only like 3.5% on the user fees
>> and we budgeted 5% increases in um all of our expenses higher in um electric and some of the ones we're concerned about. But because we're in that growth mode, you know, we're able to fund it. But some the day will come when we'll hit a wall. And >> yeah. >> Um.
>> Mhm. >> And I assume the cuz I just have kid a kid in mites. But as you get older, uh, those parents are probably paying higher fees to participate in hockey. >> Even at the high school level, >> it's 3.5. >> Not at the high%.
>> I think it's not the high school level. >> It's when you're in the sports. >> Yeah. >> Cuz what is the percentage of time used ice time used by the high school teams? I off hand I'm not necessarily affiliated with the school. >> I mean they're just the same. >> I mean for like for example LHA like I
don't think we could we should increase their rates but I'm I'm just suggesting that if there are >> other avenues where we could distribute some of I mean if the rate increase for our our community is let's say 1% and then it's 4 and a half% for everybody else. Like hey cool that that's fine. I
mean, I I'm not I I guess what I'm trying to get to is that if I'm a community member here, I should be able to say, hey, this is my community. This is my this is my ice time and this is our school district. Uh we're paying taxpayer dollars or going to you anyways. So, it's like, well, then let's just,
>> you know, consider an alter. >> Part of the challenge though, Brian, could be that the district and the city don't overlap boundaries, right? So, I'm paying actually taxes to the Burnsville Ice Arena and to the Lakeville Arenas. So, I'm paying double.
>> I should I could move, right? So, I mean, I think this is just an easy arrangement to say we get first to have first dibs is really amazing and that it's a nominal increase, >> but but why can't we have it all? >> I mean, candidly, like why not? I mean, if we be honest with you, if you have it
all, the improvement, I mean, >> it's a very difficult business to keep afloat without tax dollars. >> Yeah. >> And if everybody's I mean, I there are not too many ice arenas that I'm aware of that give a special rate just because
of the way the arena operates. you were so reliant on everybody >> and the minute you start the non whether it's a non-resident but it's an outside group we're so reliant on them they price us against every other arena um
>> and so and that goes back to my first question what's the back backlog like is there a high demand for ice and and if they if uh if you raise your rates as an example are they going to go somewhere else and if they go somewhere else then
they've got go find availability at that somewhere else which they may not >> and in the nine months of the year the availability is out there everywhere. So most arenas what they're doing is they're discounting the ice steeply to get that business in the offse and they're discounting it below what the
residents are paying. Has the Carly has the board or Michael you go to ever discuss like the arrangement or people feel good about the financial >> I am very proud of where the in terms of the powers. I think something we talked about in the meeting this past week when
we were looking at this is the fact that this is a successful partnership with the city and we're above the bar here is something I mean I heard you compliment previous managers but you've done an amazing job in terms of growing um this
organization and being able to like you said diversify and recruit my children to buy all of your concessions. Um, so it's been a it's been a situation of positivity. So, while I think we I mean I'm not opposed to necessarily at our
next board meeting exploring what that might look like because it's not just us too, it's the city that would have an opinion about it. We could certainly talk about it, but it hasn't been something that we I think Joe's making a good point is we're not in a situation where we can um really get like we're
taxing other people more um because then they just won't come and they'll find another arena to go to >> which will cause me to raise rates on the >> fair. So yeah, >> it's a balancing act. It really is. Since there's no great solution other
than in my world, I try to diversify as much as I can and make sure I take advantage of the opportunities to hit the for profits best I can. So, you know, ultimately I don't want to raise rates and, you know, outside of being
able to finish the facilities. um that was a joint, you know, agreement that LHA approved and, you know, they recommended that that be done in order to meet the shortfalls. And then we actually did increase the summer ice
residents more than I think we had a $30 increase to them versus a $20 increase to the school. LHA >> isn't I mean I feel like correct me if I'm wrong Joe but LHA is also trying to balance things in terms of fees for
hockey with regard to like the gambling the money that they're getting from >> that kind of stuff pull tabs sorry >> um to offset some of the costs because we know that hockey is a very expensive sport trying to make it more affordable
um so there's some of those offsets that families in um added positive >> and one of the issues like when I came on board I know the facilities were in pretty rough shape and you know there's a lot of expense and that we are trying to reinvest. So, I mean, while we
haven't been trimming brakes as much as I would like, we have been investing heavily into repair and maintenance and adding, you know, giving paint jobs to the facilities so north and south feel like it's a home instead
of the grays. And we're in we're really investing a lot of money right now just reinvesting into the the facilities, you know. So that's another part of the balance is we don't have any tax funding for our operating. So we it's not as you
know >> when it seems like an increase that's pretty parallel to inflation shouldn't be a huge surprise to anyone right if we're increasing by 10% or something really high >> it's kind of just your average >> and in the fees schedule I always provide the local um we are in that
average and we jumped up I was trying to get us down at the bottom but >> we do I definitely try to keep you know our fees as low as we can >> yeah Brian did you >> yeah of the $2.1 million that that was earned earned. How much did the school district pay for that last year?
>> I believe well how many hours the school district buys about $200 um at $280 an hour. So whatever the math is on that quickly. >> So they got that
>> $200 >> 56,000. >> How much? Approximately 56,000 >> 400 400 >> more 400 Wait, you said 200 hours. >> 200 hours. >> 280 an hour. >> 280 an hour. >> So $56,000. >> That's what I got. 56, right? So are you
good? >> All right. >> So that's not a lot. >> Maybe I'm off. Maybe it's 200 per school then. >> It's 200 per school. >> Yeah, that could be >> 100,000. Budget's about 200. >> So we So we spend about 10%. >> So 10% of the revenue comes from us.
>> 10 to 20 I would say in that way. Yeah. I I sorry I don't have the numbers in front of me. >> $100,000. >> LHA is the big >> LHA is the majority. >> Okay. >> I mean, they're really the reason the facility exists. So,
>> yeah. So, we're looking at like a $7,000 increase, which is fine. I mean, I'm going to say which is fine, but it's Yeah, we're spending I mean, we're contributing 10%. Um but more importantly uh the school district gets first dibs and then >> yeah I mean
>> LJ gets second dibs and then everybody else gets >> any other questions. >> All right. Thanks for coming. >> I just want to say great job Joe. The board was universally >> Thank you. >> Thanks for coming. >> Thanks. Thanks Joe. Y
>> All right. With that, I'm going to turn over to Mr. Homegrren to discuss um the intent to sell bonds. >> I wanted to take just a few minutes to talk about this resolution that'll come to you at the next uh board meeting. Um
also have um Shelby, she's sitting back from Ellers in case you have any other questions. But as you know, a few weeks ago, we passed a new bond referendum. We did the additions to the U middle schools. Um, so now this will be our first borrowing as we talked about.
Instead of just going out there and borrowing the wholeund 1396 million at once and then paying interest and all that, we will we'll tear it up. We'll borrow multiple times to save some interest cost. So this will be our first borrowing here in September. Okay. So this is what this
is. It's it's putting in place the sale. It's starting the the wheels in motion to have the sale on the bond. If you look on page two at the at the top, you see we have here um setting up to sell $70 million.
There's there's a second piece to this um resolution which helps us. It's number seven on page three and you'll see there it says reimbursement from Brown proceeds. So if if we get any type of billings from the architect or from the CM here in the next couple months
that we need to pay, we can go ahead and pay that and then we reimburse the the um general fund when we sell these bonds. U so that's also what this resolution is doing for us. I wanted you to be aware of it. So when it comes when it comes to you in two weeks, we need
you to pass this and put it in motion uh so we get a sale ready for September. So I I don't want to be like too gambly, but like could we could we get the full amount and then invest it for the next two and a half years? >> Well, there's a thing called arbitrage.
>> Okay. So if we make more money in interest than we pay, we get to give it to the IRS 100%. >> So the answer is we don't want to do that, >> right? But but if we make more, does that mean we can do better improvements? >> No. If if we if we make more, we give it
to the IRS. Oh, all right. >> It's it's it's that simple. >> Okay. The answer is no. Thank you. >> Unlike the hockey rink, we can't make a profit. Go >> ahead. >> So, um what are the the transaction costs on each each time we go to do a bond sale because it's what 50/50 39 is
kind of we're thinking three sales. Actually, I will defer to to Shelby if she got those numbers. Is there a flat fee for each time we sell bonds? So, if we do multiple sales, we'd have more cost. >> Uh yes, that is true. You're going to need to come up. >> Yeah. Do you want to come up to the
table? >> Guest. I >> was just going to pull up the facilities maintenance bond that we did most recently for an example even though that's different. So there is um sort of tiered pricing that goes along with each
um uh issue. So, you have the rating fee, you have our fee, you have the bond fee, and then you have some um general uh county fees. And so, if you think of the $20 million bond that we um issued uh recently,
where's my data on that? Um that total fee was um 133,000. So there is some additional costs associated with it, but when you talk about sort of a 5%
interest rate on 139 million, you're more than making up for that in terms of how much additional you can um save in terms of levy dollars. >> Yeah. And I guess because that was my next question. um depending on the cost. Um
do we save more on those the interest costs by splitting it up into more than three? Cuz how how quickly are we going to need $50 million? And I guess even with $139 million package that we're looking at, doesn't that provide us some leverage to work
with our contractors and say, "Hey, you can wait on some of these things." I mean, I understand materials will have to be purchased, but not right away, right? Well, most the contractors aren't going to wait for the money. Okay? We're going to pay as they do the project. So, as
they incur cost, they bill us. I They don't build us for the whole thing. They just as they incur cost, we get we get build. And as of right now, starting already, you know, the the architects in full steam ahead motion and our CM is in in motion, too. So, looking ahead,
starting about next month, we'll incur start incurring about $2 million on a monthly basis just in those soft costs until we get ready to to actually do the uh bidding when it comes to, you know, late winter. >> Yeah. And I guess my con my concern would be if we have $30 million sitting
in the bank, right, for several months, >> going to be paying, >> we're paying interest on that. And maybe there's a a negative side of doing six sales instead of three. >> Mhm. So, initially we had this set up as two bond sales and so since then we've
gotten updated draw schedules from the construction firm which makes it look like we could probably split it into three issues and along with the you can't earn more than you um uh than you than it cost you in interest. If you hit
certain spendowns according to what the IRS dictates, then you have some flexibility in in generating that additional interest. So there is some flexibility and that you could earn a little bit more than you borrowed for if you follow certain spendowns. So
basically we've set this up so that we're attempting to sell a bond to coordinate with the spendown schedules associated. Um and then you know you have other things going on at the same time, right? So you have facilities
maintenance bonds that are being issued every other year. You have refundings that are on the radar. Um and so the potential to overlap some of these um second and third and potentially a fourth bond, you know, if we just drag it out a little bit more and get you the
last little bit um you know, closer to when you actually start to close up the project, then you generate the cost of efficiencies on on an LTFM bond for instance that you wouldn't have before. Um so I mean there is a reason why you passed in May and we're not issuing
today, right? because you can cash flow some of this out of the construction fund and you're not sitting on monthly interest for 4 months before you, you know, we actually need the money. And you know, summer may look a little different, right? You if if things look a little different, we're not going to
say you have to have your money by no, you know, October 15th. We have we have flexibility there. But part of what we do today um and setting this up for your authorization at the end of June is to identify to MDE what needs to get in the
levy. So that really I would say nothing but that levy is set in stone um to start. We're going to you know we're going to get updates from the construction schedule. You're going to earn interest. Maybe that allows us to sell a little bit differently. You know,
wait another month um before we sell. We also authorized for 70 million but um you know I've we've Beth and I've run numbers at 60 at 65 just to but whatever we sell today or you know right away dictates then how quickly you need the
money on the second go round. So all those things factor. >> Then like but if we've got like how much do we have in the bank? 15 12. How much do we have in our >> Oh, just in the bank by itself >> for Yeah. I mean for our unassigned fund balance or >> Well, our our our general fund is running close to $25 million.
>> Like can we use that in >> Yeah, that's what that's what that's that's sole purpose. So we can use that money temporarily >> until we do the sale and then we'll reimburse the general fund >> um with those funds. >> The question is I don't need >> How far do you want to go? How far do you want to use it? like 5 million or
down to like >> Well, I think we're looking at five six million by the time we get the cash. Yeah. >> Yeah. >> Yeah. >> Okay. >> Then how soon do we get the money once we I mean because you have to get the approval and we do we get do we like hey when we activate it funds are in our account like the next day >> takes about a month. >> A month.
>> Yeah. We're going to do um if we kind of lay this out it would be um we present pre-sale or give you pre-sale estimates at the August meeting. We'd sell and you'd award at the September meeting. you would have funds available on October 15th. So, we're a little bit bound by, you know, the schedule of your
authorization to to stay at a on the cadence of your schedule, but you know, so if you don't get it on the 15th, we'd have to wait till like mid November and maybe that's too long. So, we we have >> that's a little I guess inflexibility there. >> As part of this, do you guys do like uh
interest forecasting and thinking where the market's going to be or trying to figure that out? >> Yeah. Um, we we have sort of preliminary runs at this point. Again, we're really looking at setting the levy in
coordination with your LTFM plan to ensure that we hit the tax impact that you presented to the voters. That's what we're doing right now. Um, and then as we get closer to August when we're doing our sort of rate analysis, that's where
we'll start running it based on not just a rate but overall market conditions. So, are you going to be generating another premium to what extent is that? Where are the, you know, where are the interest rates going to be? And in some cases because we are planning to issue
this multiple um over multiple issuances, we've done different strategies overall of you know we think we really have a a big positive to make this 10 years or we have a big positive make this 22 years so that you
know when we come back in a year and a half we'll be only to you know we can plug in an 8-year bond. Right? So, we're going to be doing all of that as we go, as we get closer. >> Do you also factor in like other schools that are selling bonds as far as, you
know, competitive advantage and timing? >> Uh, not hugely. There's 11 billion of um in the markets each week of municipal debt. Um, the way we have you set up right now, um, that August and September
schedule is the same day that AIO would be selling their 62 million dollars of bonds. I don't think it's really going to I think there's enough demand out there. So, I mean, I guess I'll put that out for you since you asked that, you
know, maybe we want to move it, but 62 million and and 50 or 80 or 70 million, um, we've certainly sold more. So, it has to do with the block sizes where the, you know, where the demand is. But
>> when is Weisetta selling there? Um, Weissa is also selling right around that time, but they're they're splitting up into multiple issuances as well. Um, well, I'll look it up. Let me see where we have that. Um, they they'll be
selling ahead of you. They'll be selling a month ahead of you, I think, is there value is there value in paying things like ahead of time? Like at least the not the labor, but at least the materials because we if we get a bid back, they would probably know we're going to need XYZ.
of this and that and that and and I'm just imagine if you're gonna buy it a year from now there might be a 3.6% increase. So it's like does it make sense and but but again if you take out the loan you're paying interest on that for the duration of by the time you need it or not I don't know
>> it's kind of a trade-off right you pay more interest or you get a better deal on >> I'm not asking for financial advice but I think there's a new Fed chairman and so does that play a part in like what do you think it's going to look like in November if I choose moving to a different house.
>> I would defer to your letter. >> I can tell you what the taxes will be. >> I have a a real question. When will we we as the board start to see the contracts or the proposed contracts for the different uh you know, subcontractors, contractors? No, you're going to you're going to see um it it
pretty much all come to you in one well, we'll probably do more than one package, but >> um until we get the specifications written out, >> it it's going to be, you know, like January, February before you see any type of bid to come to you >> of next year. >> Yeah.
>> So then I guess >> so what's going to be done? $50 million >> stuff. >> Um the architects don't work for free. Okay. Yeah. Our our >> 50 million I think we're we might be running over.
>> We are looking at two to $2.5 million on a monthly basis for all our soft cars in through this fall. Then when we then when we do the the bidding Yeah. Some of those some of those contractors are going to want money immediately to buy materials.
Um, so that money will go pretty quick as we get into the spring, but like I say, we don't know what those numbers are until we till we get there. >> So, it seems like our calendar for this project is falling in line with other like projects for other school districts
or like we're not out of the norm and how we're doing this. In other words, >> we are on the norm. Yeah, >> we're out of the norm. >> No, we are. >> We are the norm. >> Yeah. I mean, I I feel like I think I have to respect the expertise here in the room of like here's how you drive forward a project like this. And I think
the questions are good. Um, I just don't think I know better. So, I'm I'm looking I want to make sure that we're selecting you and the right firms to make these decisions with us, >> but really want to rely on your expertise. >> Yeah. And
thank you, I guess, ahead of time for the flexibility because if we do, you know, have conversations in your fund balance, I mean, right about that time, you're you'll have preliminary audit numbers and you'll know what's in your fund balance and you were sitting on, you know, the 20 million from the LTFM.
So, at some point, you know, you just you just want the funds and and the regular accounting to go with the um the the exact um amount of money that you have to to allocate towards this. But if we can push back a month, I mean, I
don't I don't think it's going to hurt. And I think it, you know, again, it'll save a month of interest costs on $70 million. And if we can lower it to 65, you know, I think all of those things are worthwhile. Um, but you know, the
other side of the coin is while we're trying to balance all of those things, you will be earning 5%. You know, on $70 million. So, we really want to maximize the the interplay between making sure you earn all of that because you can
spend it right back on the project um and and being able to keep it and not send it back to the IRS. What do you I mean I know it's too early to tell maybe but what do you think will be our rate on these bonds at least initial >> four and a half four I mean they're
continuing to go up I don't think the Fed has um give and you know even with the change over I don't think there's any indication that they're going to lower interest rates and so um you know it sort of goes to the overall demand of the market at that time and you know
we'll we'll keep an eye on that Um, you know, we've it's nice to have the flexibility of the 70 million because we could we could just move, you know, that number up or down by a little bit at the time. Um, move the number not over the 70 million,
but right, you know, if we're estimating 65, go to 70. My my biggest example was when rates were lower and we anticipated selling 20 200 million for White Bear Lake. We ended up selling 250 because you know rates were low and they were
paying no interest on that and and there was also so it's you can't time the market but you can situate the district in the best possible scenario. C um can
you provide maybe not some peace of mind but just like what is the I joined when we were wrapping up High View Elementary and the talk was like oh this was 45 million or 50 million and and I and I don't know exactly where we ended at. Did we I don't know if it
ended up being 55 million or something like can you share with us what was that experience like? Was there cost overruns? Uh because this particular project was what 3 years is that I believe >> it kind of came in under budget. Did they come in under budget or overbudget? >> Well, we we we had to make changes,
right? That was right in that incredible growth of of of inflation cost for construction. >> Super expensive. >> So, the first first estimates that came forward were over the amount of money that we had available to do the building. So, we had to go back and uh
um re-engineer the building a little bit to get the cost down to fit within the funds we had. Once we did that, we did we did come within budget, but we did had to make have to make some changes to the building to make sure we were under budget. >> It came in ahead of schedule. I think that's something came in that was really
came in ahead of schedule. >> Anyway, we had to all Yeah. Yeah. Cuz the building was actually done early summer, right? We didn't need till September. So, it was great because we had time to move in and get the furniture in and everything turned out really great. So, we did have to make some adjustments on the front end >> to make sure we made it through
>> because the levy mode is the levy amount. you can't ask for more, >> right? And so like what's lumber going to be like 3 years from now or 2 and a half years from now? No, no one's going to know. But but I'm just it's a it's a long project. And so I think it's good to have some flexibility of how much
cash you pull out, but also there if there's cost savings. Now I think in the airline industry, don't they buy gas? They buy oil like nine months in advance or or a year and a half in advance at a certain rate. So I don't know. It's it's a big project. So, >> we sort of leave that I mean we leave
that to the construction firms. I think they build in a lot of that. There was a um a period of time where we were doing a lot of HVAC projects and they they were wanting to buy all of that immediately before like the tariffs went into effect. And so they are monitoring
that for purchases ahead of time. And when they provide a draw schedule to the district, I mean, we all know it's >> it's going to be wrong, right? It's going to be >> it's usually the contractor that's buying the materials and then billing you for it >> cuz otherwise if we're trying to order it. >> They don't they don't get their markup
on it and then they're not happy >> and there's so if you bought it you don't pay taxes. If they buy it they do pay taxes and but they can buy a quantity and so there's a whole strategy there. So Shelby, did you say October 15th is
when you would come back and what you're thinking right now? >> In the current schedule, we would provide pre-sale estimates at the August meeting um and award, we'd ask you to award at the September meeting and then it takes a little bit of time to close and you'd have funds in your bank
account on October 15th. >> Okay. >> And so if you felt like something was shifting, >> would that necessitate an emergency meeting or anything like that? not something >> I don't think we could move that fast in terms of shifting. We would either um
what we want to do is make sure we're not sort of aligned exactly with when the FOMC meets or you know other big big points like that but or um if there was a presidential election right we don't want to be right on that date. So, um, by August, we'll we'll know if we want
to push back a month or >> Well, but we're not doing any construction during school season or during when schools in session, right? >> That's where they're making a lot of their purchases. >> We'll we'll be doing things that we can do that don't affect actual classroom. >> Yeah.
>> So, the additions the additionals, we'll start working on those before school's out. Yes. >> Yeah. Right. >> Otherwise, we'll never be done and we'll work right through the winter. Okay. Any other questions? Thanks for shelter.
I mean, if we're going to work through the winter, you might as well. But never mind. That's You guys have a schedule. >> I'm good. >> Okay. >> Thank you. >> Yeah. >> All right. Um, moving on to the preliminary fiscal 27 budget. Right.
>> Make this thing up. Okay. Um we we're going to go back through the fiscal fiscal year 27 budget. We talked about it a month ago um with a kind of a first um blush across it. I do want to thank um some of my staff are here tonight. Um
Jill Danley's been with us for a long time. She's now our director of finance. and uh Jackie Dulac. She's our our manager of of our finance manager. I want to thank thank both of them. Um incredible amount of hours of work has
gone into putting this budget together. When we when we look when we look at putting our budget together, it actually starts about September. If you remember back talking about our levy back in September, you know, that's for the next school year. So 9 months out um before
we do that. But our our main work happens happens during the winter right after we get back from from break. Um we'll we'll give you our 5-year um projection what we really think is going to happen to that budget over the next few years. And then we'll start going through detail um of our budget. And
that process is we go meet with every single department, every single principal in in the school district and look at what their needs are. Do do we have a big changes? We have some real pressures somewhere and we'll talk about that here in a little bit. you'll see like in teaching and learning area, we did make some changes there going into
next year and got some increases for things they really needed. Um, so we feel pretty good about that. I feel good about the the budget. It's a conservative budget, but at the same time, if you um turn to page 12 out of
the book I passed out. And there you can see that our projected unassigned fund balance percentage to be at 8 12% for June 30th of 207. Um you see it's a little bit lower than
we talked about a month ago as we really started fine-tuning what what's happening in this budget. But we feel very good and very I mean this I don't think would ever come in below this. As I say it was a conservative budget. So I feel good good about uh what we're looking at when we look at our
unassigned continuing to increase even though it has slowed uh quite a bit. Now if you want to move back to page five just real briefly talk about our enrollment. Our enrollment as we talked about the
last couple years has has slowed quite a bit. Wasn't very long ago. We saw 3% increase which was just unbelievable. and we were really um looking at some pressures on our buildings, but it has slowed. Now, the pressures that were that we're going to see at our middle schools are still there. Those kids are
already in the elementaryaries and moving forward. Okay? So, even though our our enrollment slowed, it's not going to slow in our middle schools. So for next year for for uh 26 20 27
we're looking at a number of 12 12,130 students. Um so we've updated this number since we talked you know last fall. So we watch this on a monthly basis. I actually watch it more than that but um really looking at what's what's happening with it because I I
don't want to bring you a budget that's going to be way off for the end of the year. Okay. So, you're only projecting we're going to have 26 more kids next year? >> We're going to Yes. And we're watching it right now. We're
not seeing that big growth happening at our our elementary schools at all. >> But that's good because we don't want to over >> right over predict like how many students we're going to have because Minnesota's a reimbursement state. So, we'll pay for all those kids regardless of whether they're here or not and then
we have to be reimbursed. So, >> it's it's better to be well. And that's where we had that little bit of a, you know, issue a couple years ago when we were seeing those 3% increases. >> Well, that's what we built into the levy and by the time we got the money from the levy. Well, we didn't get 3%. We got
quite a bit less. So that's why we had that $2 million kind of give back really what it was. We give back to the taxpayer because we we weren't eligible to take it. >> Okay. Okay. Now let's um so talking about levy skip to >> hey Bill I mean the numbers again just
because you said we're looking to add like 26 kids total but but again for for those that might be listening we had a lot of high school students graduate I think it was about what 1100 or something like that >> less than 900 >> so >> yeah about 900 a little over 900
>> smaller class this year right >> yeah it was a smaller class >> yeah smaller class this year all right and then the incoming first graders are kindergarten kids is about is it the same 900 or Is it lower? >> They're smaller. >> They're smaller. >> So that's why we're seeing some shrinkage because a graduating class is larger than our kindergarten class
coming in. That's why we're seeing the very small increase in the total. >> Okay. >> Going forward. >> Got it. Got it. >> Are we finding There's some districts that talk about that, especially with more expensive homes that families don't move in until later elementary. So, are
we are we finding that or are kids enrolling in >> like do we have children starting in kindergarten and staying all the way through or are we finding there's like these times where oh no, now we have a surge of fourth or fifth graders or >> do you know what I mean? >> I guess I can't speak to that directly. Yeah.
>> Um but if you look back just a couple years, we had our kindergarten classes were 850 and higher. >> Yeah. >> This past year it was less than the 800. >> Yeah. But we are projecting 801 801 for uh for this fall. >> Okay. >> Yeah. It just seems odd when you have,
you know, 600 new units going into the city. 25. >> You see the houses. >> Here's what it it will it will balance out the the your your K in and your seniors graduating is the first check
number that you need to do. But I will relentlessly push the uh the number at what the cohorts cohort survival tells
us. And if we are under that's okay. As director Baker said, if you if you overestimate that >> and you're wrong, >> that's the gamble you don't want to take because you will pay it back and it
stays in your system for two fiscal cycles. >> Yes. >> And you don't want that ever. So, we could come out higher than 12130, but if we're building our budget and
we're reporting to MDE, we need to be as uh conservative without super understating that, of course, but that's why I use a cohort survival assessment. And um I'll just remind
everybody we we triangulated that number this year by going to three different sources. Um and I'm very confident we're we're pretty close. We're not going to I we won't be under. We are more likely to get more kids, but
the money will follow. >> Yeah. I I just want to acknowledge one last thing. Um on on page 12, the total general fund balance is about 27 million, but the unassigned balance is about uh I'm sorry, 27 million, but
the unassigned balance is projected to be about 19.2. And so that would be put us that would be putting us at about 8 and a half% which is what um I think our fund balance policy is is is targeting. Um the overall expenditures for our
school district uh just for the general fund and then there's then there's there's six others uh is about $226 million and ideally we want roughly 10% in there. So we want about 22.6 million in our savings account and and we're
targeting to be about 19.2 uh at the end of next year. And so I just want to like you when you look at graph at the graph on page 12 uh fiscal year 23 we were at 7% and then we and now we're we're almost going to be
targeting about 8.5 and then hopefully maybe the following year we'll be we'll be at 10. Now again 10% which sounds like a great number and there about $22 million and people folks might say oh that's that's a lot of money. Well, that's literally only three months worth of of costs of of runaway for us. So
that if we don't get any money from the state, we don't get any any money for whatever reason, um that that money will only last us literally 90 days and that's it. And so the 10% number, it's still probably on the on the lower end. You probably would want it a little bit
higher still, but at least the general rule of thumb is, you know, 10% or greater. And we're definitely marching in that direction. So good job. I'm I'm super excited and peace of mind from 7% to 8 and a half% which is fantastic. I I
I hear other news about other school districts cutting. Uh I think Prior Lake had they I think they've got a levy that they're going out to the market for uh in this coming November. But it it's good to be able to say, "Hey, we're much
more financially well off. We're not 100%. We're not we're not there yet, but we're getting close. Very very close. So, good job. And >> I think moving our policy from a five to a 10% reserve was a strategic thing in line with peers. So, that's a big change
too, I think, in the last year. But that but just because we have that much money in the bank and obviously we're collecting interest and that interest helps fund other operations of of where we're at and we've got that um uh that balance in in the scenario where
if we needed to use it to start the the construction projects early, we've got that flexibility. We wouldn't have had that 3 years ago. There's no way. And so it definitely comes in handy. Um but that doesn't mean that we are at the optimal level of tax collection to
ensure that our education delivery is where it needs to be. And so uh when we when we get to that that time and whether it be the summer or sometime we should uh we should really discuss because we have some additional tax authority if we need to um consider that
for future opportunities. So >> whatever teaching and learning wants, we can we should have a conversation about that. >> Wait in special education. Sorry. Okay. >> Oh, has a question. >> I might be getting ahead of
>> ourselves. Are we Are we up to page 12? I'm looking at stuff. You have other >> I was going to jump to page 40 just for a minute just so you can see the levy. >> Okay. >> Okay. You can see the change in the levy. It I mean it is a rerun. We talked about this last September and we okayed it in December, right? But you see there
on the front on the top side the unassigned components. You see that our increase is $1.3 million from our levy for fiscal 27. So I think that's a positive positive sign and puts us in good shape. Now we will jump back now to page 11.
>> Oh, I'm sorry. Can you can you explain that? The 1.3 that was for the levy that was passed in November. >> I'm sorry. Help me understand. Not the bond. >> No, this this are the regular school levy that we do every single year. >> Yep. >> Okay. This page 40 is all the components that go into that levy.
>> Yeah. >> Mhm. >> I think there is some confusion sometimes with the public of we know we're going out for a levy for a vote and then there's the annual levy and kind of how those things are related of course different. >> If you look at the top portion the very top portion it says on a sign that is
voter approved. Okay. So all of our all of the referendum piece or or our operating referendum, that's that top third of the page. The the next pieces, those are not voter approved. Those are pieces that the state of Minnesota allows us to levy for to cover these
expenses. So you see the the ANI grant, you see the safe schools money, okay, vocational reemployment, Q comp, you know, those things are things that we can do, but we don't have to go ask >> every single year for this for the uh community to give us authority to do that.
>> And for clarity, it's item number four, referendum. Is that >> that's the operating referendum. So 24.9 million is what our community members have voted to say we will pay more to fund our education system. >> Correct. >> And then of that 24.9 million it is part
of 58.6 million so roughly about less than 50% it you know comes from property taxes uh to fund our school. But our community members have voted to approve uh roughly 25 million. Now, if they wouldn't know, then we'd have $25
million less to work with. We still get $25 million because that's a state mandate uh to to levy uh our community, >> the other pieces. Yeah. >> And so, all the 58 million that comes from property taxes, 226 million is what it costs to run our
operations. And so, we get the other half or the the other three fours generally from the state from the state of Minnesota. >> Correct. >> Okay. >> And that's all depicted in those pie charts. >> In the pie charts. Yep. Yep. Okay. I guess the only other thing maybe just to to when we talk about whether it's voter
approved or not, you look at the debt service piece, >> that's where the money comes out for like what we just passed is money for the buildings and that is voter approved. So that very bottom piece, the debt service, that's all voter approved.
Okay. Now, let's jump to page 11. And here we get a snapshot what's going on with our revenue. Again, you'll see that our our state sources and that's going to be money that comes from the state of Minnesota, not through their tax levy. Okay, that so we got 148 149
million from the state of Minnesota. Again, again, our property taxes there are at 59 million. Our federal sources, they're at 3.2. Can I make a recommendation just for the future? Maybe you guys don't need that, but like it says property taxes, which is the third item under under revenue on page
11, >> and it says 50 59.1 million. I'd love to be able to like break that out and say like property taxes mandated, property taxes referendum. >> That That's page 40. >> Yeah. Well, no one's going to get to
page 40. That's the issue. I mean, I because we're we're spending $226 million and uh and while $59 million is coming from property taxes, only $25 million is
approved by our community. And so while that's a I think that's a a reasonable number to make sure people understand that yes we are paying you know your property taxes do pay for schooling and
uh almost roughly 10% is approved by referendums and if you and so I don't know it's not a high it's it's a high number but it's not a high number 10%. So I don't know that's an observation. Have you been hearing a lot of like
questions about that? >> I have not. >> Okay. I'm just curious. >> No, no one probably is asking questions about it, but I I'm just wondering if anyone makes it to page 11, they're like, "Huh, property taxes. We pay $59 million." Well, is it $59 million in referendum or $59 million or what? How
do I How do I vote no for this? And the answer is you really don't. You get to vote no for only for only $25 million of it if you want to if you want to vote no. The other 25 million is is mandated, right? >> Or you can vote yes. I mean, or or yes, or you can vote yes. But I it's Yeah, it
could be it could be misleading is what I'm saying. >> So, you're saying people think that they're paying 59 million. The community is paying million, >> but the board has approved $50 million of Yeah. >> Well, they are paying 59. They are, but they're choosing to pay
versus option. Correct. Yes. Yeah. They're choosing to pay. They have voted to pay half of the 59 and the other half it's they don't have a choice >> according to the state. Is >> that correct? >> That is correct. >> Okay. Let's move on to the expenditure
portion of this same page. You see here um we broke it out by objects. You can see that our salaries and wages now are up to 111 million. Our benefits there it's at uh almost 55 million. um
purchase services really no no change um if we if you look at the uh the um PowerPoint that I sent out you'll you'll see the changes in the percent change so when we look at the um
expenditures uh our wages and salaries are up 2.4% 4% almost 2.5 where our employee benefits are up 9 and a half%. Of course that's because of our insurance situation. Um purchase services are up only 1.8. Our
supplies and materials are up 12. Again a big change in our teaching learning and the uh some of the materials that we're buying. That's why you see an increase there. Our capital expenditures you see an increase there of uh $29 million. That is because we next year we're buying new devices for the
students. Uh, so it's a big big jump. >> 19 million. You said 29 >> 29% >> Oh, 29%. >> 29%. 4.5 million increase. Okay. Okay. If we move to page Yeah. >> I mean, depending on how far you're
going to go. Um, down on on page 11, proceeds from sale of assets. finance purchase proceeds $5 million. Um are we financing devices for $5 million? >> Yeah, the devices um we've had um the
way we've financed those in the past is is a lease purchase >> left. So that's why you're seeing a $5 million increase on the capital piece on top >> and then we're we're we're borrowing that money so to speak, the 5 million below. >> So you're counting that kind of as as
revenue to some extent. >> Well, it's other financing sources. That's why he's not in the revenue line. >> Um, so say one thing not to be concerned about, you see that our revenue is 220 million, but our expenditures are 226. Well, except that we have this money down here that we're bringing in that
balances all that out. >> So what so then I guess what's the what are the hard costs for the $5 million the essentially the finance purchase price of the $5 million for the year because it kind of cancels it out, right? But we're cancel the new lease is at this point approximately 5 million.
We don't have the exact numbers cuz we haven't bought the we haven't gone through that process of actually getting the quotes yet. Um but that's approximately what we paid last time. >> Okay. >> Okay. >> Yes. >> So I have two things I want to point out here because we obviously just had a levy so there was a lot of financial
questions that were asked about our budget and making sure that we're being um frugal with with how we spend things. But I I guess I was kind of drawn to that we had salaries at 111.2 2 million and then benefits at 54.7 and I was
doing the math which is approximately 73% of our general fund goes to salaries and benefits. Is that correct? >> Oh yeah, if you look at on your on your sheet I mean on the PowerPoint. >> Yeah,
>> I have the percentages broke down. >> Oh, you did that. Well, wonderful. See, I was trying to like do the math over on the side, but I just think that's important to point out that the majority of our budget is people. >> Mhm. Oh, absolutely. >> So then 73% of our general fund expenditures are salaries and benefits.
And then the other thing that I noticed because you have this so broken down from 4 years previous, we can look at like the employee benefits started at 42.9 and they've grown to 54.7. So that's like about 30% close to um how
much things have grown just on the benefits side. But then I think that brings out that um legislation that was passed with the um family medical >> that's in here. Yep. >> Correct. Right. Yeah. I'm just I'm just wanting to point those things out because these are things that we have
inherited as far as like expenses for the district and these are things that are obviously impacting our budget. So >> yes. >> Yeah. Matt. >> Yeah. I mean to that point, you're looking at nine a $9 million increase year-over-year just for employee related costs,
>> right? And we're only getting >> 2%. >> No, we're only getting 25 new kids, you know. So, it's not like we're getting a ton of I mean, what is that? A quarter of a million dollar $250 $280,000 for the new kids. >> And so, >> yeah, but it's not a big number. You're correct.
>> So, so what I'm trying to say is like we're not really overspending. It's labor cost as you know like >> but we negotiate costs, >> right? But we can't just not give them a raise like right when the majority of your budget is people and then some of these things are told to us what we're
going to provide and how that we need to have some of these you know the family medical leave back different paid leaves. Um it impacts what we can offer because that's already taken out of our budget. >> Yeah. I guess I mean my concern overall I mean going to page 12 you're looking
at a total expenditures are going up $14 million you know 6 and 12% increase year-over-year on our total expenditures and our income is not going up you know tracking with that at all. >> Yeah. And that's and then we've talked about that in the past. That's one
reason why that increase in our fund balance is is decelerating >> because our costs are going up faster than our expendit revenue. Well, I mean, at this rate, you're lucky to have any increase. >> Yeah. >> And you're unsigned. >> Our our budget's become pretty tight and it's a little more than we anticipated
this last year because of our insurance costs and the added um cost from the state for the leave. >> Yes. I'm sure all these things become important to monitor in terms of some of the unexpected insurance costs and things like that that we don't know if it's going to be a year-over-year thing
or just that was an anomaly. And so, >> yeah, we hope close watch. >> We watch it very closely. Yeah. Okay. Um I just want to briefly talk about the other funds. So I move to page 14. You see here the student nutrition very
healthy balance has been for quite a while. Again it's it's behaving in a way that's very positive. So they're very healthy. >> Moving on to page 16. You see um community >> a question about that. Sorry back you up. Um I see in the fund overview just
information about the increases. One is due to um probably the collective bargaining agreement the 2% hourly wage increase but then also the planned 5% increase due to the current war going on. Are we expected to see because of the war
>> or yeah >> we'll say page 13. >> Page 13. So they're estimating food will cost 5% more because of what's happening >> in that's mainly well it's mainly due to fuel cost and delivery cost. >> So are we expecting that like with the construction that we're going to have? I
mean really every good that we purchase potentially could have that. >> Yes. >> Okay. >> Absolutely. >> All right. >> Okay. So then do you wait and see if go down or do you buy now and see if prices go up? Well, just always remember too if
you're starting if you're talking about supply chain, which is what you're talking about, then you're also talking about hardware or goods, um if that's not properly timed, you have a storage cost fees. >> Yeah.
>> Um so the the idea to purchase them early to get, we'll call it optimal pricing will get eaten up in your storage side of things. So, it's just in time and pay as you go typically
is what professional supply chain people are trying to accomplish on the regular. Uh so that you have what you need when you need it and you're not paying storage costs and you're not paying too early too soon cuz that that market shifts too. And I I know we don't want
to gamble too much, but I think that's another element of this that we have to consider. And fuel costs right now because of the the uh straits. Uh that's that's a barn burner and it's going to affect our project as it's affecting our
transportation cost. >> Yeah, it stood out here when you wrote about it, but I know the food service fund typically can absorb it based on the healthy balance it's carried, right? But not so much in the other categories. >> Not the other. Yeah. Yeah. Are we are we still looking at where we need to spend down more on the food services?
>> Well, the state of Minnesota hasn't put that hard deadline in yet. They keep talking about bringing it back, but they haven't, but we know that it used to be 3 months of expenditures and we're about a half million over that. So, we're very close. Um I'm not concerned about it.
>> We can't move that money. >> Yeah. I can't I can't use it somewhere else. You know, my my my daughter has asked if if um if they can get two helpings of Italian doctors during lunchtime and if that can >> and not have to pay for >> and not have to pay for the second. I mean, >> just saying
>> I' I'd be that one. >> But 4.3 million is is is very healthy and so Yeah. But we can't spend it on anything else other than food. >> Furniture. >> And furniture service now item. So, we can't do it any
longer, >> right? The furniture thing is out. >> Mhm. >> But we did optimize that. >> We bought a lot of new lunchroom tables. Okay, let's move to page 16 just briefly. Um, community service again, their um fund balance had fallen down to
zero and a little below right after the pandemic. Uh, they've been going along kind of flat um looking at a small increase in their fund balance again um for next year. Hey, I'm looking at bullet three and on page 15 where there is a total
expenditure is projected to increase by roughly $427,000. Uh but that's also because we have included uh the staff of the small wonders preschool to the teachers contract. And so that was unexpected and glad that it was called out here because
again there's value in having them in in in the agreement that they're in now. But it does impact the financials. So it does. >> I didn't realize it would be. >> Yeah. >> And they're not on the salary schedule. They have a different schedule. >> But but the benefits I think is the main
change. Is that right, Brenda? Would you say? Sorry. I know you're >> sorry. >> With no with the small one. >> That's correct. >> They're not on the salary. They're not on the matrix like regular, but the benefits is where the increase really hit for that group. >> The >> benefits weren't much different. >> Yeah, the benefits would have been
>> this same or close to the same. Um, but it was the uh there was a significant increase in the salary. >> Oh, okay. Yeah. I think it was like almost like 15 $20,000. >> Well, maybe it varies based on the the step. So, okay. >> Okay. But it it was an increase uh and
uh and they were added onto the uh EML contract. So >> good 84,000. >> Okay. Move on to page 17. This is our building construction fund. Here you can see we're expect excuse me expecting about $30 million in expenditure cost.
About 10 of that is our LTFN. So 20 is um the startup of our new project on the middle schools. Uh page 18 is our debt service. Um again um this uh this fund is very healthy and it puts us in a good
place when we borrow these uh these funds. We'll be able to use some of this fund balance on our first payments of our new debt to help our taxes. Okay. Uh 21 of course this is our internal service
fund which is our health insurance, dental insurance. Um, you know, we're projecting um a small a small change in this year and and looking about the same for next year when we're watching expenditures go
through as of now. Um we're we're we're not expecting a big um change or big improvement. Um so the change now that we put in place um on the premium side is going to help us so we don't fall any longer. So, have to continue to watch
this and start building that fund balance back up. Okay. On pages 22 through uh 37, this is more detail we put in here. Uh you can read it at your leisure, but it's broke down by every single building. You can see what's happening with the enrollment. You can
see what's happening with with the cost over the last 5 years and get an idea of where we're spending the money in those buildings. Um, we jump to 40 41. This is where we've broke down the costs
more. So, they're broke down by each program area. You can see the changes both last year and this year and the amounts. When you look at total regular instruction, uh, you see an increase there of $2.7 million. That's about 3% increase in our general instruction. uh
special education, we're looking at 8.3 uh percent increase. Um instructional support there, we got some like we talked earlier, some bigger numbers where we have 16.6% um um really when we look at a curriculum costs and increases there. Um
after that, we break it down one more one more level. You can see that inside each of the program then we're broke down by objects. So um you can read that as your at your leisure. So you see the changes on a very detailed basis. If we
if we jump I'm sorry I'm still stuck on 21 page 21. Can I just quickly uh get clarity on on fiscal year 26 budget. >> Um you were So this is a health insurance
fund. >> Yes. >> And last year we spent $37 million and that fiscal year ended was it end of June? Is it June 30th? >> Well, we actually lots lots of our claims run into the summer months. Okay.
So, if you had service with your doctor in June, but we didn't pay for it till July or August, that's included in the previous year. >> So, so then my question then is in the fiscal year 26 budget, this this current cycle, which ends in June and in in a few weeks, um are we really targeting
$36.7 million in spend? >> Yes, we are. >> Okay. And and so that's with estimating what we've spent today plus whatever we think is coming in June plus whatever that might trickle in in July and August. >> Yes. >> Okay.
>> So So 25 wasn't an outlier then. >> If that's what I'm >> Well, I again I'm going to bring you a conservative budget. I'm not going to assume that it's going to be a lot less even though I wish it was. Right. And it certainly can be but we do not we do not know. >> Right. But but based on what you know as
of last month, so at the end of May, you've got X dollars of spend that you have already had. And then whatever you're forecasting in June compared to I mean I'm assuming you I'm assuming whatever we did last year is probably what is forecasted in June plus three or five or 10%. And then whatever you're
adding in July and August as those claims trickle in in into the summer months and then when you add it all that together, you're looking at 36.7 million. >> Correct. Now, with the hope that maybe whatever happens in July and August don't trickle in because that was the outlier, right? So, we don't really know
when the outlier, we don't know if if last year was an outlier until >> we're not going to know till we get to August. >> Until we get to August. >> Where are we at right now? I mean, do you have a a May 30th number? >> Yeah. When when we when we look when we look at right now, it's behaving exactly it did the year before. >> So, >> so right online,
>> we're at like 30 million. >> Yeah. >> Yeah. and and and so so if you look at not last year but the year before that were we at this is that at the same so roughly 30 million as well so so whatever >> yeah I'm just curious if if the pattern is still the same but that we had
previously previous years >> yeah our pattern right now is the same as previous years what we saw different last year was summer months July really long gotcha okay >> so we'll watch we'll keep we'll we'll keep you a breast of what's going on there but we really won't know till we get to August
>> really what's happening Okay. >> Until we see until we see the claims that come in. >> So the claims that we've already rece the the revenue that we've already received this year >> because we didn't make any adjustments for for this year is >> Well, there was there was a there was an increase of 5%. >> 5%. Yeah.
>> Yeah. But that but that was enough to cover what we've historically have always had. And so if there isn't a an outlier in in July and August, then we should be then it would cover all the expenditures. We're fine. But that doesn't increase the fund balance for this group.
>> Flat. No, 5% was still factoring us losing $2.5 million. So, >> Got it. Got it. >> Or no, 2.16. Sorry. >> And again, healthcare is healthare. You need it, go get it. But we it's hard to forecast. So, we just don't know. We have July and August is going to be an
outlier year. >> Yeah. We're back. Yeah. 41. Yep. >> And there's nothing we can do the right now because we've already set the rate changes. It's already going into effect in July 1st. And
uh and if if there is any uh expenditures that go above and beyond what we have in the fund balance for the health insurance fund balance then the overages is covered by the general fund balance which is the the uh the 19 that we have in in our bucket. So
>> correct. >> So we pay for it not we but the school district pays for it out of our general fund balance but we do get that reimbured when >> correct the health insurance fund balance gets back up. Okay. It it would be like a temporary loan for the fund sake fund 20. I mean,
>> okay. I mean, it'd come from another part of our budget, so we'd still be paying for it. >> Well, no, it would it'd be in fund 20. So, it still would come from future premium to pay >> future premiums, but then we're just we're giving them a loan. We should we should f
>> We probably will. >> Can I ask a random question that Can I ask a random question? I'm just looking at um the north and south high school populations because I know we part of this in terms of future planning is really kind of thinking about
high school in terms of our big class coming there eventually. Uh page 22 and 23. So what I'm seeing is a very steady increase in population at north and a very steady decrease in population at south.
So I'm curious about that and also too I'm just curious about the budgets for both schools given the differences of that's a big difference in student population. >> Yes, North North is growing. >> North is growing. >> South is shrinking when it comes to enrollment. >> It's been for many years it's
practically the same number. It was unbelievable how close they were. But last the year we're in and into next year there's less at South. >> Do we need to red do we do we need to redistrict high school? I didn't want to put that out there. So, but >> but from a budgeting standpoint, we're
spending $2,000 more per every South student. So, why wouldn't we just have more staffing at North to accommodate? >> It's it's it's it's the experience factor on your staff. >> FTEEs. >> Okay. We got more experienced people at South than we do at North and they cost
more. >> Yeah. So then this goes back to like from from a from a business or corporate lens every department has a set budget and then if you need however many resources that's that's the budget you work with. Well, but but this I mean so right now
>> like you >> what I hear what I hear you saying like right now we're looking at 23 for instance many less students at North than South but South had a bigger budget which is not what we're seeing but you're saying that essentially we have staff
>> we have more senior staff at the >> higher steps >> which you can't I mean you can't move people exactly >> right right I mean and I think that's that's where that's where um uh staffing allocation and budget allocations is I
would assume have to be monitored and have some governance in place for that because if you h I mean if you're a football team and you hire like the most expensive offensive linemen and then you hire all five of them like maybe you can't get a good quarterback because all your money is spent. So, >> I just I'm trying to be thoughtful of
this because I think um we do have to start looking ahead like not I'm not I'm not just concerned about the budget but also these numbers and what they mean for potential bonds down the road for our high schools. Um and we've kind of talked about high schools and so this is
considering this development that's growing or happening by Walmart that is supposed to be really large, right? All of that is included in here, right? Well, these are actual numbers, right?
There's no projection. These are these are kids that we've counted. >> Oh, so it's not counting potential, >> right? There's we didn't speculate on news a new uh enrollment in high schools. >> So, that could look pretty. >> These are actual >> depending on how the ninth grade class
next year at North 53. >> It's a big class. >> Yeah. >> Yeah. These are kids that we actually counted their heads. Okay. >> Well, to Amber's point earlier about that that I feel like I know that's a mixed development down there, but
there's going to be a lot of bigger houses that probably might pull bigger or older students potentially if all that speculation. I just I want to understand those changes. >> I think it's a reasonable logical if it's a $700,000 home. I mean, you may
you may not have a kindergarten. I don't know. So, uh but you know, Carla, I think you're Right. I mean, it's it is it is interesting to see the numbers where you're roughly spending the same dollar amount, 21.5 million at both high schools, but Lakeville North does have
200 more students. And so, while the revenue is I I don't know if you need more staff. I'm assuming you would need more staff there, right? >> Yeah. Yeah. We allocate we allocate staff numbers. >> Yeah. So if you have more staff at at
North High School, then if you just if you did the math, I I would assume that the average cost of an FTE for Lakeville North would be slightly lower than Lakeville South just because there's more staff there, but the numbers are still the same. The dollar
value is still the same. So then you actually have more experienced teachers at at Lakeville South. >> Do you anticipate Brenda or whoever that kind of being cyclical with South though? because everyone was hired at the same time when it opened, right? And aren't we kind of at the older end of that group now or they're just starting
to retire? >> We had um we had the majority of the staff came from when we were late high school. >> Yeah. >> There was a process by which teachers could apply to go to South when it opened. Okay.
>> Um and and so there was quite a number of staff that that filled that building. And of course, you want to have a balance of of newer teachers and more veteran teachers, but I think from the onset, I if I recall correctly, we had a
higher percentage of the staff that was more veteran at that time. Yeah. >> And they're still in the system, which is why you have um why you have a a more veteran staff in that building is that they're all they're still there from when they came over. some of them are
starting to retire now because obviously you know South has been open for couple that two decades now. So um so you'll see that change over but I think that's a result of so what happened is when all the teachers left Lakeville High School and went to South then when North was
established all of those positions were filled then with less senior less veteran staff. So, would it would it be helpful if there was uh another line item because on page 22 and 23 you've got spending per student which is 12,600
at at South and 10,700 at North. Do you want to see that the average cost of an FTE and then you can kind of see the breakdown of what that looks like? >> I mean, I hear I hear Bill saying that there's more staff. >> Yeah.
>> Okay. I sorry. Sorry, it was a random question partly because I'm also trying to think ahead um with these numbers. So, >> okay. >> Okay. Then just briefly to finish up, if you move to page 51 and 52, that's all our all our capital um budgeting mainly
our our LTFM. You see that there, which we talked about last time. Page 53 and 54. These are mainly stat pages. Um these haven't been updated by MDE yet. So these are the same pages that were in the regular budget. They haven't changed yet.
So overall, when we bring this budget back to you, um in a couple weeks, I'll find my page here. Um overall, all funds, you see that our budget, um our budget will be at $335 million.
uh with an overall fund balance all funds of 80 million um just at a 30,000 foot look at it. So any other questions? >> That might be a question for Bowman more out of curiosity. But on page 53
when you look at this rank of schools and St. Paul and Minneapolis are obviously big districts and they're also top one and two for revenue and expenditures. expenditures make sense to me and revenue too, but in comparison to like a NOA or 196
is just because the state is funding those districts more or how are they so high? >> I think there are city what what is that term uh city of the first class >> of first class legislation that governs them? >> Okay. What does it >> Oh, yeah. They're special.
Um and from a funding perspective, um the legislature has they're cities of the first class. So there's that mechanism. Uh and I'd love to explain it to you. >> That explains Burnsville too then being
third way down on the list. >> Yeah. The well the other thing too that I I feel like doesn't get enough airplay is the de the demographic breakdown of your student body
um is going to generate federal dollars at a rate that um uh is you know something Lakeville can't if you want to call it compete doesn't doesn't function under I mean
our federal whole dollars. What is 2%? What What is it, Bill? I can't think of it. I know it's on one of the pie charts there. I want to say it's >> it's two or two and a half. >> Yeah, something like that. Um and then the other thing, um
>> 1.47. >> Okay. 1.47. Not even 2%. >> Thank you, Jill. And and the other thing is, um city of the first class, you get a lot of federal support. Uh
oh, I had the other one in my head and it's uh yeah, slipped away. I might remember it. But um if you see I think a NOA on a per ADM is lower than St. Paul and Minneapolis.
Um >> yeah, it is. So, I mean, there's some there's some interesting points there. >> Well, and I feel like what I like about this chart is that it helps me think about from a funding perspective and size
really Weisetta, Lakeville, and Mounds View are kind of a trio in the sense of if we're going to compare money, how much is Mounds View or Wisetta spending, we should be kind of in on par given the revenue that we receive. like it doesn't help us to compare to
you know I don't know >> or or Prior Lake or like cuz they're just getting different very different amounts. >> Yeah, that's true. And I think we've tried to make that point before. But here's what >> the other thing is geography, right? Where do you sit on the map?
>> Yeah. >> Or where do you sit on the ground? Well, Farmington, Burnsville, Prior Lake, they're all around us. So uh then you got 196 which is a behemoth over there. >> Um >> so I mean the a lot of times the
comparisons start becoming a little bit if you're comparing relational things versus financial things, you know, there's differences >> that that kind of get into play there. So >> yeah. Okay. >> Yeah. I like 53 cuz I think it's a good
visualization and and I do appreciate you highlighting and highlighting it in red so that we know we we are the ninth largest school district in the state and we u generate >> based on based on student enrollment. >> Based on student enrollment yes thank you. Yeah. Based on student enrollment
almost you know 12,000 but we are also the uh 18th uh in in revenue collection or tax collection. And so while other schools are much higher uh but you know it's we're we're not we're not in the top 10 in regards to revenue and we're
not in the top 10 in expenditures. So we're doing we are trying to be as optimal as we can with the revenue that we that we are receiving. Uh and ideally you would be you'd want to be close to maybe your enrollment count. Um I would love to see and maybe this is just for
another meeting in in the future for maybe a page 55 or something like that. Um it would be good to see in this kind of budget packet uh our referendum opportunities or our our referendum >> schedule. >> Schedule. Yeah. And and then what and
what our capacity is because I believe >> that that's an easy that's an easy one to add to the budget book. Um I did remember what it was. Uh free and reduced. Okay. So the populations and I can't speak for Minneapolis because well I I do kind of know but with St. Paul.
Uh, and it's been a long time ago that I was there as a CFO, but we were 75 76% free and reduced. Um, and we don't Lakeville doesn't play in that in that uh circle very uh not at those numbers.
So those are other things that that the in the intentional design of finance whether you're talking about Minnesota school finance or federal support to states uh through um finance mechanisms uh you know that's changing and it
always does. Um but the supports are are intentionally designed and we're not so much benefiting from those. But you know that's not a value judgment. It's just that's that's why you see the numbers the way you do. >> Yeah.
>> I also have some some questions and I think the board has been doing a lot of work around teaching and learning because I know when you look at these numbers you automatically think how can we increase our financing. Um but I also feel like there's some deeper questions
in reflection on some of these numbers about what are we doing within our district with like processes and procedures. Um I love data. I keep data. I've got it back to like 2014 and and sooner. I told Bill I was so excited I could add another book to my collection.
Um, so I have all my charts and I'm looking at all my data and I I was specifically looking at our enrollment growth from 2015 to 2024 and we grew by 172 students, but our special education population grew by 502.
So we all know that special education is important. Um, and when I think about those numbers, how over half of our enrollment growth was connected to special ed. That doesn't mean that all of these students moved in that had disabilities. It just means that our
special education growth was much moving more quicker than our overall enrollment. So, when I think about that, I go back to teaching and learning, right? Because why are these students qualifying for special education? I don't think we're overqualifying students. I think that that's a direct
correlation to what our students need, which is more interventions so that they're not qualifying for special education because we don't want this super expensive model. We want people we want students in the core. We want students accessing core education. And if we make our intervention system more
robust across elementary and secondary, then we should see those special education numbers decline. Therefore, our special education money that we're spending would also decline because it's cheaper to have students within general education. Um, it's just it's just an
expensive model. We don't want to pull kids out, you know, and and honestly, when your special ed numbers get that much where they're growing in that capacity, then it's not small small group instruction anymore. So, then you have to pull out because you can't serve kids in four different third grade classrooms with one teacher. They can't
push in. they have to pull out and then they're pulling them out of the core and then we're making them further behind by doing that. So when I think of like philosophically like looking at this data, I see things where I'm like these are things that we could target and I'm sure your mind's already going there cuz I I see your wheels turning there too of
like things that we could do instructionally and procedurally and and build our programs up which which in turn long term is going to impact our budget in a positive way. But anyway, >> you're saying like up front? Sorry. You know, I was going to say like I was curious to learn like and I know this is
a little off the numbers, but to that point like what is the relationship between the departments, teaching and learning and student services to try to get at what Kim is addressing? I don't know if Michelle or Tracy you have perspective on that. It seems like you should be highly highly coordinated.
Yeah. Yeah. Um for sure. Um our teams do work together. Um we have uh been working together around interventions which I believe is what you're referring to. We are adding um three intervention specialists, one at each one of our um
elementary uh not elementary, middle schools um for literacy for this school year. Um uh and we've been working with our uh student services department on what that model um actually looks like. So, we've been engaged together for
that. >> And I'm glad we're adding three, but like there's five 600 kids. No, I'm sorry. There's a thousand kids in each middle school. And so, one person and 1,000 kids. Now, not everyone's going to need, but if you do 20%, you that's 200
and then you see >> 20% of the 20 of that 20% now you're looking at 20 of them. I think that's the math for technically there's tiers to that system, right? So you have tier one, which is our core, tier two, which would be like an intervention, and special ed would be tier three.
>> Now, if they're coordinating together, then you would hope that from tier 2 to tier three, there's an intensification or maybe a different intervention because if we're using the same interventions in tier 2 and tier three, we're not going to see any difference when a kid moves into tier three, tier three really. So I appreciate that. But
then you also have to think like we should have that many people at each tier and so that we can support and that cost money. And so this goes back to the the page that I'm requesting which is page 55 which isn't here yet but like maybe on the next round. How much are we like what's what are we collecting in tax revenue for
referendums uh to offset that? Because then when I look at EDINA uh yes they are 17th and the largest in regards to enrollment but they are the sixth in revenue tax collection at 19 19 at 19,700
and we're collecting 17,500. That's a $2,000 delta. And so if you if if we are if the community chooses and if if the board agrees that hey we should let the community decide, do you want additional taxes to go into education to pay for
not just one but maybe five, you know, in each middle school? >> We did go out for that. Sorry to be the >> We did go out for that and it did not pass in our community. >> But there's new opportunity. So what I also hear and I would be curious to know
is or if you guys feel the same way that if we put money into interventionists at the primary level so not secondary too both but probably ideally primary level do we see that come back? So like what
kind of investment are we talking about? Do we take a risk on that to um recoup that money and on the back end? Um and what kind of timeline that would take? >> Good question. >> Yeah, Matt.
>> Oh, and and to that point, um and if you're going to ask for more money, I mean, are there studies? Is there any evidence that shows, hey, if we have x amount of time at at tier one with an interventionist, we can get that kid? So
he has no services after one year or with the tier two where we can reduce them down to tier one which then requires less intervention time you know so we can cut on staffing costs it might take I don't know 2 years but there should be I would imagine somebody's probably studied this to figure out
>> there's tons of data >> yeah if they have this amount more time and then if we do the calculation to figure out I mean you still have to play it through the system but to Brian's point if you're diluting them down and and I would argue that maybe it's more important at the elementary school level
um because then they might not even get to >> they won't eat it. So you're you're watering the flower early and making sure that it has a chance to grow and >> but otherwise if are we really going to make a a dent in the system if it's just one interventionist >> still need it at secondary level because
you'll have students that move in from other districts that haven't had access to the same level of curriculum that we have here or you have students that are moving in from other countries. it would free up the capacity because there's ideally there would be less from the elementary going into the middle school and so possibly
>> the impact different I'm curious it's a bigger investment given we're talking about nine elementary buildings versus >> it depends on like >> we have interventionist at the elementary level should we say that first >> I'm more adding in terms of need >> but there's a reason you're proposing
this model and I'm curious what that is >> yes yes so adding the three at the um uh middle schools are tier three interventionists. Um we have had to give the CAPY test um to all of our the
assessment to all of our students. And so we're identifying the students that need different aspects of um uh literacy intervention along the way. And so we want to start um small with this um
because we want to make sure we can do it well. And so we want to get to a place in implementation where we have it standardized that we're able to catch the students that we need to and provide the most um accurate supports for them.
Our middle school uh principles have also committed to tier 2 interventions so that those students don't go from tier three back into the classroom that they're supported to the next level down to tier two and then they go back into the classroom. But we really want to
focus on this model and see it through to implementation so that we know we can really do this well and then we'll take the next step as to um what more do we need in our system to be able to support the rest of our students. So this is a
first phase or a first step into providing the right supports. We don't we want to go slow to go fast. We want to make sure that we could implement to a high level um as we're adding people into our system. I would say I would also add too that
it's not necessarily always about adding more people although it's helpful but a strengthening processes that we have in place. So, in partnership too with continuous improvement department um really looking at our
intervention process and who's around that table on a weekly or bi-weekly basis to be identifying which students need support whether it's academically, socially or behaviorally. Um so really coming back and strengthening that
>> intervention process too. Well, and then tying the intervention to the right the student to the right intervention because that capy data is very detailed. So then you know like where the deficit is and how what you can use to um help that student succeed. So that's great.
>> Yeah. I would also add to that um what Michelle said around tier one how important that is and we've taken the right steps this year to really focus on tier one focus on standards and making sure that we're teaching to those standards so that we know um what
teachers need to retach the teachers know what they have to retach what their students didn't get when they were in that lesson so they can circle back around and retach so that they don't have to be um pushed on to intervention ions, but that's happening right in the tier one classroom.
>> So, are are all are are our special education teachers getting the same um instruction on um how to implement the core with their student population? because if they have to be able to implement the core within their
classroom and have that like is special education getting some of those same supports because I know some of the things that I hear in the buildings I don't have access to the curriculum or the book that I have as a teachers manual that's 5 years old or something like that like that doesn't help them get students back on track or help
students you know close the gap or do they have some of the similar supports as Jennet? Um they do and that was one thing that we recognized this year as Sandy and I were diving into the work and as we uncovered that we began working with Michelle's team um Alexia
Poppy Finley um to recognize where we needed that extra support for our staff members. So that's been a big um push too. >> Yeah. >> Okay. Yeah. >> Yeah. I can't remember if we we talked about this at the board table or not.
Um, have you guys looked at what they're doing down in like Louisiana with the third grade gate? I think it's called the third grade gate where, and maybe we talked about this just internally, where if a student isn't proficient in like literacy or meeting literacy goals, they don't progress to the next grade. Uh,
and this goes back to the, you know, early interventions because at some point you're learning to read and then it switches where you're reading to learn. And if you're not proficient, you're just going to keep falling further and further behind every year in literacy. I mean, if you can't read and keep up with everyone, you're not going
to process. And I know I mean, because I'd read articles because Louisiana's now like seventh in the nation. Like, they've leaprogged leaprogged us, you know, for sure. Um, and that was one of the things early interventions, you know, to hit those issues early.
>> I was just reading about Louisiana, too, because I think that one of the reports came out today in Mississippi, too, is >> Yeah. But what they're finding is that yes, they're holding them back in third. So they don't take the fourth grade test then until they're in theory ready, but
they only hold them back for 3 years and then they can go back with their class. So their eighth grade reading scores are like abysmal. So like the the fourth grade tests are inflated in a way cuz you're not allowing the low performers
to test. It was kind of an interesting I had I had not read about that, but I found a study that was looking at one of the reasons why they're seeing these great gains is if you will hold back if you don't test the kids who aren't doing well, then your numbers are going to be great. >> And essentially, you can't hold a child back with a disability because
>> Well, yeah. Well, they're not doing that. >> No. >> Yeah. >> Yeah. I haven't I mean, I just see is it I wonder if it's the same thing where Minnesota's now 20th, >> I think, academically >> in fourth grade, not in eighth grade, but >> Yeah.
Well, do you need more money? I mean I mean at the end at the end of the day, do you need more money? And if the answer is yes, then then let's have a proposal come to the board and say, hey, this is what we think. This is the gap. This is how much it is. This is what your capacity is available to tax the community and then decide is this
something we want to move forward with? Like it's like >> I mean I think you you have to have some sort of data behind it if you're going to be asking for some more money. Otherwise, you're going to run into >> again. But if we have nothing to react to, then at the moment, it sounds to me like things are fine. And and when I hear we're just going to deploy one
intervention that's in a middle school, it's like, is that fine? >> Can I just say there I I am not as your superintendent stating that things are fine. Um and to your your request for information regarding um
the the schedule on levies and and what the li levy limit sits at and when that changes. Uh I'll I'll I believe I've shared that but I will share it some more uh and we will put it into the budget book but this budget
book till the next iteration of update I'll get it to you sooner uh another schedule like that but I think the bigger work is what you what you've identified and that is what what are our needs with regard to teaching and
learning and and then we need to articulate what the research and evidence-based data might say about cause and effect with regard to what we're proposing. Uh, and we are on that trail. Uh, I think this kind of came out
a while ago. So, um, we are we are trying to do a deliberate process to set a condition. Um, and I don't want to speak too fast out of turn here, but one of the things I we just went through a
bond levy for our middle schools, and I think we need to take the upcoming school year to shape exactly what you're talking about to bring you a proposal so you can react to that and obviously sooner than later. Um, so I've been doing some work on trying to plan that
out timing wise. Uh, so we can do some deep work on that as well. So, I'm not saying everything is fine. We do have needs. Uh, but I also want to be very careful about when we ask and I know you do, too. Um, what are we asking for and
what's the proof in the pudding, so to speak. >> Yeah. I think one other question Michelle I might not for tonight but leave you with is just I think it's really interesting that on the last page before page 55 is Minnotonka and Weisetta who are the
two too close to us in this other chart they only have a 14% special ed rate which is not like the other schools like we're 10 we're 5% higher and I just think it's interesting to know why like that doesn't make sense to me I feel
like you should all be more or less the game and so are they what are they doing in that school district in tier one or tier two to help bring down costs before you get to tier three? I think I'm curious to learn about that. So not for tonight but
>> it's an expensive category. >> All right. Anything else? Okay. Um moving on to advisory committee assignments. So, in our packet um is the current list of all of our um councils
and committees that the board is in is either mandated or invited to participate on and just wanted to have a um preliminary discussion about where people would want to be for next year. Maybe you want to be on the same thing, maybe you're interested in a new area.
Um, so maybe I'll just go over them really briefly and um, we don't have to walk away here tonight with a final, but what I ask is um, if you're interested in moving to a different area, either let me or superintendent Bowman know and um, if if there's someone in that role
and we can only have one, we can figure out how to negotiate that um, as a group. But um, this is more to just go over where we're at and then decide um, for you to decide personally what you would be interested in participating in. So the American Indian parent advisory
um we do not have a representative and none is requested and none is mandated. So that one is fine. Um currently community ed I sit on early childhood I sit on um finance Tony and Brian. Is that correct Brian? That's right. Right.
>> Are you on the finance committ? >> Well you're not anymore. Just Tony. Okay. Um the GA gifted committee. I'm on that. We currently have no one sitting on the multid-dist collaborative which is required. So someone um we will need to get someone on that for this next
school year. Special education, Kim. Teaching and learning, we currently have three. So Carly, Matt, and Paul. Wellness, we have Carly. Uh District 917, Kim, the High School League, Kim, Association of Metro School Districts,
Amber and Lakeville Arenas, Carly. Um, and so I think we could do some break up here to make it a little more even amongst board members. Um, does anybody have any thoughts right off the right out of the gate of ones that you're you're either like I really want
to stay in this one or I'm really interested in moving to a different different area or >> Yeah, Amber. I'd like to stay in teaching and learning. >> Okay. >> Oh, I am flexible to move if someone else has interest in teaching and learning. Um,
I've served on GAK and MBCC in the past. Um, I've never done community ed or early education or so. >> Yeah, that's cool. >> I' I'd jump on the MDCC one, multi-dist collaborative advisory council,
>> and I'd be more than willing to give up many. So, um, >> which which one is your >> which one? Okay. >> Which one do you most want to give up? >> Well, I think it's I mean I think they're all important, but I think I mean the community ed one I think is very they're all important. I shouldn't
say community ed brings in a lot of people who are not connected to our schools in other ways. So the committee is a lot of older adults in our community which I think is they're a really big ally for our district. So I think it's important that people are going to these things regularly. Not not
so much I mean I learn a lot. I think everyone learns a lot when you go, but it's more out of appreciation for the people who are on the committee. So, I think whatever people are able to commit to, I think, is what's what's the best. Um, and those two meet
a lot. Community ed and early childhood meet >> almost monthly. >> So, then you should be on both of those. >> Yeah. And I was told like if you're on one, you're on both, but I don't think it has to be that way because they're they're the same budget line, right? But >> split that up. like community at overseas um early childhood,
>> but I think it could be split up. >> You're interested in early childhood. >> Oh, I mean, if we're talking about 2027 uh activities, I think it may be wise to pause for >> Well, we're talking about So, typically how the board has done it is
>> I'll do the Minnesota High School League liaison one. >> Wait, is that for the fall? >> You don't have to do anything for that. >> Yeah, that one's really easy. You don't have to do anything. I know that on that go to the meeting.
>> I'm sure the Lakeville Arena board would be interested. >> I'm sure the Lakeville Arena's board meeting want like me on >> I'm happy to have >> I don't need to stay on that. I'm I'm flexible to rotate off of anything they want to. >> Okay, that would be cool. >> Put me over there.
>> Maybe percolate and if you're interested or willing to join another one or a different one, let me know. I mean there's >> can we just create maybe clear expectations of what like if we are trying to more evenly divide what is the expectation that everybody try to be on two committees.
>> Yes. I mean that would be fair and some meet way less than others you know. >> Yeah. Well, and I think it's also like an expectation if I can't come to one of the meetings that I where they're scheduled, I try to find another board member to fill in for me because I think it's important that we have that if
we're going to commit to be a presence on the boards that we need to have a board member there. >> Yeah, every committee has a spot for, as you probably know, um, school board update and so we're asked to come and present about what's going on, um, at the board.
So, okay, think about what two you're interested in being on. And typically, Brian, what my understanding is our the Lakeville board has assigned these in the summer so that you stay for the school year knowing that some board members are rotating potentially rotating off mid year. So, it follows a
>> they were done in January. >> We we have historically assigned in January. I don't really I personally think that we just didn't switch anything last year. >> We didn't switch. Yeah. Oh, I've been told over and over it always happens in
the summer. It has for like decades. >> Since I've been on the board, I feel like I feel like since I've been on the board, we've been talking about this in January. >> January. >> Okay. Well, we can just do it in January then, >> but I don't because new board members come generally in January. >> I think has to do with the election
cycle. The reason people I think the district suggested fall is that the first meeting is kind of a welcome meeting >> for everyone on the committee and then you get to know each other rather than like hopping in mid year. >> I I personally feel like if we assign
for fall then it it creates a more like collaborative year and then if we have new board members rotating on we can just fill in for that six months. They would like assume the role of the person leading. >> But what do others think?
>> I like the I like the school board meetings. I'll go to that one. >> All right. >> I was on community ed and I liked it. Like I've served on that. >> Oh, yeah. It's a good committee. >> Yeah. >> Yeah. >> But you're saying fall assignment. >> Fall assignment.
>> Or are you saying what are you saying? >> I I've been told fall assignment is what the committees are asking for and what the district wants. >> Okay. is a gifted advisory one where they learn about like how to use AI and incorporate that into their stuff or is this is this >> No, it's about gifted and gifted and
gifted advisory council. So students who are taking and ignite and discover and AP and >> Got it. >> those types of experiences >> has come to the teaching and learning >> it has. >> Mhm. >> I mean it's it has and it's probably a
continued discussion given Yeah. Yeah. Michael, I was just told that we normally do this in January, and I I feel like I was under the assumption we did it at the beginning of the school year. So, but we're going to do it now. >> I think it's ideal that we do it in January. >> Okay. Okay. >> So, everybody should send you a couple
that they're interested in. Yep. >> And then Yeah. >> Did you ask? >> No, I'll just be in touch. >> Okay, sounds good. Okay. All right. Um, >> was there also the um district
leadership one or is that not have a >> I don't think that's happening anymore. >> That used to be on that one. >> No, is it district leadership one? No, >> that's a university. >> It is um is a contractually required professional issues committee. Um I think you may be talking about uh
whether we're having um >> the union contract. >> Mhm. Okay. Sorry, >> superintendent. >> Yeah, we we've had requests from EML to meet with board members. Um, so we were
doing that I think roughly on a quarterly basis. Um, >> you mean meet and confer? >> No, >> meet and confer. >> Okay. >> But the I think you're talking about something different. The other one was like building leads that came together
and like I remember one of the meetings we kind of looked at some of the data across schools and talked about kind of like what was happen just it was a shared or a district >> district shared leadership team. Yes. So um early on when we initiated that
committee um we did have some board participation. it's not an advisory. And so what we were trying to do when we revamped all the advisories and we put together this handout is to make sure that we were being clear about what is an advisory, what's an internal work
group. Um, and I think for the internal work, a lot of that stuff comes to the board through other mechanisms anyway. Um, and so because it wasn't required, we were really sticking to the required list. So we made a shift on that a couple of years ago. Um I think yeah so
I think that's really when we just we just wanted to have more clarity around where is it that we we are required to have board participation and make sure that we had that. So >> yes thank you. >> Yes that did exist. >> You helped my brain tonight. Thank But when you say advisory, like I want to
make sure I understand the definition. Like are we are we as a board member to attend and just observe or are they to engage and participate and provide direction and and provide input and insights and here's what I want, here's what we should do. They're not creating the agenda, but they're just sharing
their point of view or are they supposed to share the board's point of view? Uh and and and are these advisories like does like do you guys actually control them and we're like board members are there just to like oh we're here if you have questions cuz eventually it's going to come to us anyways. You know what I
mean? So I'm just >> Well, it's helpful. I I won't say that I don't participate. I don't I definitely don't direct things as a board member, especially since I'm one member. But um I think what's helpful is just to see what's going on in those councils or
committees and then you're able to share that out with the board at the next meeting. So I attended this is some you know with GAK for instance they've made some changes or some of the things that we've talked about. So then you're sharing out to the board but when we have our board reports that's an
opportunity to say this was talked about at this meeting. So you can participate, but we're not operating in a >> So So then I think I'd like to ask is which ones are the ones that are required required by the state? And I think that they're listed here. And the ones that are not required by the state,
we should probably just recalibrate. Is there a value of us attending those or are there others that we ought to be attending that we're not? Um and and again, the list that we have is the list that we have. I'm not saying there's there ought to be more, but are there
more that we're not thinking of? Because we're just going in as an advisory like just to listen then. Are these ones that we want to go see? You know what I mean? >> These are all of them. >> These are all >> There are no other groups. >> There are no other groups. Okay. >> Right. >> Not that I know. >> Okay.
>> You can make up. >> No, no, no. We don't need to attend. But I'll just say advisory uh typically and I can only speak to past board uh interaction was those were very relational opportunities for board
members to um interact with different public constituents. It's good to shore face connect with people who are who are serving our district, >> which is fair. And I'm not saying that we shouldn't, but if we but let's tackle the ones that are required first.
>> Yeah. >> And then those who want to attend the non-required ones can or because not every board member may want to go attend advisory meetings. They because if the intent is to learn more about it, they
can choose to go learn about it on their own way or their own pathway or or whatever it may I just I I just want to make sure that uh we're not doing something just because it's always been before. We let's just make sure that we understand the ROI and the and the the value that's associated with it.
>> Well, and we are being requested whether it's I mean the mandatory ones, yes, but the other ones except for the American Indian parent advisory, we are being requested to attend by the district staff and um often the the community members who are chairing the committee.
But but then but why why are they requesting like what is it that they're needing from a board member to share with them that that that an admin person could not? >> So we are elected by the community like
we're community-elected representatives and so when we go to an advisory council that's made up of community members we're their voice on this part. We're supposed to share in our board report. This is what was discussed by the comm the council and
the people on that council and we're supposed to share it with the rest of the board. >> I feel like that's our role. >> They but they serve a different purpose. They're district administrators. They work for the district. We're elected by the public. >> Yes. And >> and that's the way I understand it, >> which is which is fair. And and and that
point of view is is your right to have. But >> as an elected official, my point of view could be different. And so if I want if I as an elected official I, you know, if I choose not to go to those advisory non-required events and if I want to be
on the board uh and and share my point of view and vote on things like that, that that's that's the role that I choose to play. So um >> yeah, we can't force board members to be on any of them, right? We do have to fill some of them. So I think some >> the ones that are required by >> some people will just step up and fill,
right? Um, >> I think I think it's an opportunity for board members to feel more educated about what we're doing, right? >> And to interact with people that we often don't and are like most of the committees I'm on. It's not people I would normally talk to, young families
like early elementary, older adults. Um, and so this is my opportunity to >> It's also our constituents and that's one pathway for you to talk to your constituents. that doesn't mean that I can't talk to constituents in my other in my own other pathway. So, I just want to be mindful that like, hey,
while these advisory councils are fine and and we have no authority there, we're there to listen and hear what's going on in in that respective area, but we should ought to be getting those recaps and updates anyways from our superintendent. And and so, >> but I hear you saying you do not want to
you do not want to do this. >> No, I'm not saying I don't want to do this. I am saying I I understand that but I want to say that we this is one of those where as a school board elected official the elected official should have the autonomy to decide how they
want to engage with their community and advisory committees are one pathway then and and non-advisory committees are another >> how about this Brian we can't I'm not going to we're not going to be like you have to go to whatever finance
>> but if you sign up for everyone the expectation is you attend. >> I agree. >> So if you're not able if you're not able to do that then let someone else go because I think there's there there are gaps here right where where people are
listed at times and there's no no one showing up and so that's just not a good look for the board. So I think if you can't do it or can't commit to it that's fine. We're not going to force you but please only sign up if you actually want to be part of it. And and my question is then
what are they needing from a board member that they can't get from an email to the chair, an email to the board, a conversation with the superintendent, and a recap to be present to to be provided to the superintendent and shared to the rest of the board. >> Where's the gap? >> I feel like we're on a repeat. So I want
to serve on >> No, we don't need to go through and raise hands right now. No, no, no. But I think it's important for us to know going into assignments like perhaps just set a date by which >> Yeah. If I don't hear from people, I'll just assume you're not you don't want to sign up and that's fine, right? And the
people who do will >> have to cover these so that we don't have some committees or councils that are not covered and some that >> Yep. >> So, >> yeah, that's it. >> Okay. All right. Moving into goal
setting. Um, so I'll turn over to you in a minute, Michael. But, um, in conversation with, um, Oh, thank you for being here, cabinet members. I didn't realize everyone was going to leave. >> Oh, you're welcome. >> Okay. >> But, um, >> hear about expectations.
>> I know the board has discussed wanting to set goals um for this upcoming school year and as well as um, Michael's been interested in that. So what I asked asked Michael to do was to prepare a draft set of goals u for him which
translate then to the school district goals uh for us to react to um in discussion. And so I think that's what Michael's going to hand out here in a moment. Um I think what this is really based on is the continued work of this board. So, um
the strategic plan that we are we're working off of um from the the data and metrics that we've asked and the goals that we've set um accordingly with those um with those metrics um and other priorities that the board has
identified. And so I think it's important like we don't just completely shift gears to a whole new set of things because we're working on building right over time strength in these key areas. So I think that's what Michael you've developed. Um and can I just let you go
through it and then people can react based on that? >> Yes. Thank you for sharing that. So I printed cuz I know who would have a digital device and who would not. So >> thanks.
>> Is this open session or closed session? >> This is open session. >> Don't forget Mr. your mind. >> We're not evaluating. >> Yeah, it's just >> Yeah. >> Did everybody get a copy? Amber, did you >> I can open mine on my email. >> Okay. Um,
so just as the uh board chair said, my thinking on this task was um build on where we are uh as a school system and what the board is looking to
do. So you know I tried to write a purpose statement so that we could stay focused on that. Uh which you know I feel is we should not go off on some other
tangent. We should stay and build on what we've been working on together. So um we have the QDR or QBR. We've used those terms interchangeably. I think we've landed on QDR because it's data focused. Um we have our OP plan, we have
our strategic plan and all those are nested together. Uh we we did not like try to go down different tracks with that. Um so that's what I try to do here and I think the overall objective is
four or five goals that are strategic level and we can talk to what the data sets are. Um and that's what I wrote in here. So if you just start with the first goal student achievement readiness and system performance I think that is
first and should be first. Um and what I'm trying to articulate here is um in work on our instructional systems with a focus on student achievement, student growth, I think graduation
outcomes and readiness for post-secary success. Those are all the things that I have noted in the conversations that we've had. And then um to talk about metrics um MCAs and MCAs both for um um
reading proficiency, math proficiency, growth trends and then we use fastbridge as a local assessment growth indicator. So all those things are already built and it's saying okay are these the right um growth metrics to focus on. I think we've already kind of settled on that.
And then um the second goal is student experience and engagement and that's more tied to um the strategic plan and the desired daily experiences but with some metrics. If you go down and look at what I'm recommending as metrics is chronic
absenteeism rates, average daily attendance rates. These are all things we've already kind of talked about I think. um any major behavior incidents which the implied task there is to how do you data collect on that and report and out of school suspension rates as
all indicators. >> Can I can I pause there just for a second? Um I I I like these metrics uh but I'm not so sure >> on the attendance one where some of these metrics aren't within your control to to like like
>> Well, I'm responsible for everything the school district does or fails to do. But that's the approach I take. >> Understand. But is it but if if a parent or a student chooses chooses not to attend school and the standard protocols there phone calls and
whatever it may be an unfavorable chron chronic absenteeism rate isn't one that that >> I would say if it's on scale in your district you got a problem and your leadership superintendent probably should be shown the door. Well, I think the question what you're
getting to is like, well, what do you do to address what do you get? >> And I think that's where you can have systems. >> Well, it's corrective action. Are the systems in place? >> If all those things are working from my level down, then those numbers should be they're not going to be zero, >> right?
>> But they if there's like a growth trend there, >> right? >> Then you ought to be saying >> superintendent, why why is that happening? And if it's like 50% I mean >> yeah well that's what in Mississippi
they were focusing on absenteeism as being a serious issue and addressing that by >> contacts between the district staff and the parents of the kids that are absent. I mean, so you can put additional steps in place. >> And I think like being married to
someone that does this kind of work, >> I think when school districts are doing this well, which I think we're in that camp, they're monitoring these things in in its relation to student performance and they're catching students before it becomes chronic. >> And so it's a lot of if you have the systems in place from the top up, it it
really works. Sorry, Paul, I didn't mean to. >> Yeah. No, and I and I just wanted to say, Michael, I think you just nailed it with the comment you made. As the leader of the whole shebang, you're your responsibility is to find ways to take
chaos and turn it into results. And if absenteeism is chaos, then it's your job to turn it into some kind of positive result, whatever that >> long as you don't ask me to turn water into wine, I'll keep going. >> That makes I guess that makes sense. So, I mean, if you're the superintendent and and and that is a metric you want. I I
guess I was looking at it through the lens of you can't control if a child comes to school or not if the parent takes them on vacation. Like, you don't have that choice. And so, you're tying it you're tying a metric >> where the kid to a metric that you don't have any control over. Whereas, I mean, I guess you could make a a rule that
says, >> you know, every class that you attend, you get 10 points and and so if you're going to miss class, you're you going to dock you 10 points. And that that kind of forces, you know, >> but there I mean I think we're talking about there's two different things between chronic absenteeism leading to
bad grades or a kid who just can can is still proficient and is still hitting all the benchmarks but is doesn't have to go to class all the time. >> And I don't know that we have the data. We haven't connected the two dots in our data yet to determine like okay what percent of our chronic absenteeism are relating to kids who are failing one or
more classes. >> Weren't we going to get data from? You're talking about that guy, >> that major behavioral incident one. Um, >> we'll get it from Infinite Campus. >> Yeah, there was a guy. Who's the guy that came? >> Jamie. >> Yeah, he said that was going to do some sort of data assessment >> over the summer. They are >> over the summer. Okay.
>> Sorry. Go ahead. That's the one that I I just wanted to say, hey. >> Okay. >> Things in your control order. >> Under goal three, we're talking about talent optimization and the um that's geared toward workforce and workforce stability, licensed staff retention, administrator retention. um what's our
vacancy fill rates, hard to fill position fill rates, which is really all the staffing things that we do and um I think those are in line with uh our operations plan and and how we are uh doing data collection on that. and to
articulate that as a as a goal you want. Uh what I'll do is I'll I'll I'll if if we're okay with this layout is I would I would come back with a okay here's what I think the benchmark ought to be. Um
and then you can say well you know if chronic absenteeism is you know if I say it's if it's anything over 3% you know that's that's a no-go. you might say, "No, it needs to be at 1%." Or, you know, we can >> have that discussion. So, I I what I
wanted to do here is just establish that these metrics and these goals and I think I have four of them. Um, you know, if we want to add goals, I guess we can have that conversation. The last one is operational stewardship, financial management, strategic execution. So, um,
you know, we've talked a lot obviously tonight we talked about the FY27 budget. So um recommended metrics are progress toward a greater than or equal to 10% unassigned fund balance structural deficit management trend to make sure that I'm dealing with that forecasting
accuracy. So that's, you know, am I plus or minus budget to budget on, you know, is it 1%, is it 2%. Uh corrective action response is am I timely and giving you the information you need so any decisions that have to be made don't
aren't surprises. Um and then operational effectiveness, facilities utilization maintained within the district target of range 83 to 87%. We've talked a lot about that. Our goal is to be at 85%. Um so I'm just using
all the things that we've already um articulated with that with regard to strategic execution. Strategic and operational plan execution greater than or equal to 90%. What does that mean on the QDR and our op plan? We have I I think I shared with you in the last uh
evaluation our op plan and how that's laid out. And so there's a lot of tasks in there that are action uh oriented on our strategic plan. And what I'm saying is that we're we're executing at 90% or better in
terms of closing those out. Um that one might be a little difficult to assimilate. Annual operational plan milestone completions and board priority implementation progress. So whatever your priorities are that I am on task to to do those uh and implement those. One
of the things we've talked about which I consider to be um maybe not a formally stated goal but talking about academics and doing a deliberate planning process in order to make a decision around uh needs assessment for financial
wherewithal and any potential future levies. That would be an example of you've given me that task and I am um I am working toward that. And then I just summarized them again. re recommended core metrics goal one two three four and
then our next steps would be to if you're good with this framework you want refinements to it I get the refinements and come back and present you with what I think maybe the baselines ought to be for each of those or what the goals ought to be by a metric uh on each of those
>> I think something I'd like to propose Michael just before we launch into conversation is some of them I think make sense to have a number like 3% whatever >> but I do appreciate iate on some of them where you've listed like proficiency trends or reduction
I forget the wording but I think it's hard to create a number at times but if we we want to see either increasing or decreasing depending upon the item and if that's the trend that we're seeing that's what we want you know >> or not I mean not necessarily like even
if things aren't moving in the direction that you would like them to go like I always appreciate the reflection on that and how are you adjusting our district plan to account for that, right? Like process behind it and then a plan in place to
>> Well, yeah. I think I should have to aliy uh any of these metrics, whether they're trend metrics or they're, you know, I I got to 9.9. I didn't make 10. >> Right. Yeah. >> Yeah. Right. >> And I'll just be candid with where things land. uh I'll I'll work my butt
off to accomplish those, but you know, I think in the end I have to lead in a way that creates the conditions from the district office to the classroom that are positive and can move
us, you know, as a as an organization toward those goals. Um I I feel like I can do that. I feel confident I can do that. Um, and I, you know, I worked with other people to shape these, but these have been two
years of talking about what's going on in the district and I've tried to codify those here and capture those here and stay on plan with what we've been doing now for the past two years or at least since I came back. Um, and and I think
that this gives us our best opportunity at actually accomplishing that. Kim and Matt. >> Um before we start discussion on this, I I'm just trying to um figure out what our expectations are with this. So um do
we take this mle over it a little bit process and then send any like questions or adjustments to Michael? Like is that how you want us to to frame this? Because I mean we could we could talk about this for a long time. >> Yeah. I mean I think maybe it bas depends on the reception tonight. If
people feel excited and comfortable with it, we may not need that. But if people need that processing time, that's fine, too. So, but I think the goal is to take this and and set the benchmarks after we >> after we get to a comfortable place, which could happen after this meeting
immediately or >> Oh, okay. Okay. >> I just wasn't sure like what you were expecting. So, >> Matt, um, a couple questions. one just from a uh you know on the metrics and the student growth local assessment
growth indicators. I know we have fast bridge and then obviously MCA the one time a year. Um, we I would love to see something where we have our common assessments more uh widely implemented at the end of this
next year because I feel that that's a more reliable local assessment than the fast bridge because we don't teach to fast bridge. We don't teach to the MC well we kind of teach to the MCAs but >> you know cuz the the common assessments then would actually provide and and
something where the board can actually see it on our dashboard. So then we can see how our students are actually doing on the on the curriculum that we're teaching them, you know, and I know that that's in process, but I think that'd be a great goal to get that even further down the road in the next. >> Matt, are you like
>> then like let's say I forget the class that did the presentations with the scheduling. >> I forget what class that is an English class. >> Yeah, 10th grade English. >> So that was a common assessment, right, between North and South. So that's like the teacher giving a grade which will then influence their overall grade for
that class. So, are we interested in seeing like grades? You know what I mean? It's not like we're going to get like a test score in a lot of cases because it's project based. >> Well, yeah. I mean, there'd have to be some a consistent rubric and, you know, set this is how we're analyzing this for
something like that for math and science. You might get a test score, right, on a unit test or something like that. Like, this is what we've been doing for the past month >> and we're getting a score on it, right? So then you can see, okay, how are students actually learning what we want
them to learn, right? Um because like the uh yeah, I mean it's going to be very subjective obviously when you get to the 10th grade English thing about how are you doing your schedules? I mean you walked around the room and listened to different students present and some were very refined and some maybe not so
much. Um >> yeah. >> So is there also a goal there around like creating more consistency in the system? >> Well, I think that's happening. Um, but I think this is part of that process, too. >> I think the outcome of that >> Yeah. I mean, that's part of the process. Then you can assess it because
I mean four-year graduation rate and grades is great, but I think we all saw at graduation. I mean, 160 of the 410 kids were at a 3.7 or higher, you know. >> Well, that's going to change. >> Well, that's that will change significantly.
>> Well, I think Emily and I spoke about it and it's not going to it's they're still going to be at like a 3.2, too. You know, even if you remove the weighted grades, it didn't dra it didn't change it as much as I thought it would. >> I also >> on the weighted side, >> if we're going to discuss graduation rates, like I if we're going to be
equitable in how we look at graduation, I think we should look at four and six years. Um just because of students that take a different pathway and takes them longer to graduate doesn't mean they didn't attain the goal. They just did it in a different time frame. Mhm. >> Um, and we have several several
students, lots of different student populations that that do that. So, >> yeah, I'm just thinking on the common assessments, it's something that we have more control over. >> How would you like think I'm thinking about like the high school level or even like middle
school? There's going to be hundreds of common assessments, right, per term. So, how how would the board like to receive that information? >> Well, you >> I like to be more up here, I guess. So, I'm trying to think like
>> how do you drill down to see every sixth grade test? >> Take a subject, >> right? Math, science, whatever. You know, they'd have a unit test, >> right? >> And how many kids are meeting >> probably like 10 units per term. >> So, for this term, how many kids are meeting proficiency on the common assessments,
right? You know, per grade, per school. And then the district I mean I don't know that we'd have access to per classroom but the district should be analyzing that per classroom. Right. Right. >> So we can find best practices that are achieving the best results and try to replicate it across the district >> like the teacher learning should be
>> but the metric that you would but the metric that you would be targeting would be >> whatever that aggregate metric is is how he gets there is at his discretion. Right. you know, and so >> your correct >> so there there are two things we we we've got we've got
>> metrics that do we agree with? Well, I'm sorry. What what's the metric that we want to track or we want to see that we agree with? How he gets there is at his discretion. And then the second one is are there uh school district initiatives that we want him to focus on and try to accomplish within that school year. And
so because I think they're while they may be uh related, but one could be we want to be able to implement seventh hour in high school. I'm just making it up. Seventh hour in high school that that's an initiative. It's not really a metric. And so um this is very metric focused, which is fine. And and we give
>> for you, sir. >> I appreciate that. Uh but there but there are things where where I would like more I would like more career oriented classes in high school that the kids can choose from, you know, and uh but that that's an initiative and so I I
just want to make sure that we're we're aligned on what what are we trying to solve here. >> Sure. >> Because what you're asking for I think is more of an initiative which might roll up into a metric at one of these levels. >> Yeah. It seems like one of our like main concerns as a board has been student
performance and if and if we want that to be the goal then we should let Bowman try to get we're not going to see that in a year necessarily right so maybe it's through common assessments maybe it's through some other well in common assessments again it's just the it's just an
indicator right it's it's a more reliable assessment of where our students are at than MCAS or Fastbridge um you know if done properly Right? Cuz it's assessing on what are what the teachers are actually teaching them in the classroom. Cuz right now it's hard to grade our students on the MCAs and
say I mean you hear the criticism only you know 50% of the kids are proficient and it's like well you know that's a test that they're not motivated to take because they don't get any grade for it and they don't study for the test. So if we're actually having a consistent
curriculum, consistent common assessment in each each category or class across the district, then we can see like, okay, how are the students doing in this certain >> So what metric do you want to see at the end? >> I think that's going to be hard to nail down because it's going to look
different from like middle school and then high school where they take different classes and then we have kids that are doing PS. >> Let the superintendent figure that out. What met what metric do you want to see for you to feel comfortable? our school is moving in the right direction academically. >> Well, I mean, I want to know how our students are doing on the material.
We're testing them consistently across the district. I >> I think it boils down to proficiency. >> I mean, you can have great inflation and have high grade points. I I'm being cynical now, Michael, so bear with me. You can have teachers who don't want to
deal with students, so they pass them on and they should have kept them back. All of those things create high numbers for grade point and graduation rates, but that doesn't necessarily mean that somebody's proficient in math or or reading or, you know, go
down the list, whatever whatever you want to use. I I was reading and I don't know if anybody else caught this, but uh uh California in California the professors at the state schools are saying they've got students coming in
and they're having to teach them middle school math. And what they're saying is is that the California schools are just pushing these students through and by the time they go to college and even if they don't go to college, let's say they want to be a plumber because because I'm
absolutely fine with that, you still have to calculate how long a pipe is, right? Mhm. >> Um so, so the point is is that college professors in California at state schools are starting to sound an alarm and saying your whole state school
system, public school system is blowing up numbers and everybody thinks we're doing great and I'm getting these kids in school in in college and I've got to teach them middle school math. >> So then >> So are you saying these proficiency numbers are right on? >> I I'm saying the proficiency numbers are
needed. Yeah, >> you somebody just asked the question, what's important? >> Yeah, I think these are exactly what you're saying. >> Yes, I think proficiency is extremely important. >> But is the MCA reading and the MCA math proficiency? >> That's a different that's a different question. >> Is that does that meet your expectation?
If the answer is no, then it's too much of a it's too much of a lag in indicator >> fastes for you three times a year. >> Yeah. I mean, by the time you find out, right? And it's >> at the board level at the we asking him to drive numbers up.
at the system >> and he can do that in my opinion >> at the test level. >> So they're changing curriculum, right? Aligning curriculum with the benchmarks which aligns with the MCAs. >> So if we're doing that, you know, across
the system with consistency, we're already have the data, right? The common assessments are already being built in. >> I just I think the board should know though like, okay, how are we doing? So then MCAS is not a shock. So you're forecasting you're you're forecasting that your MCAs are going to be good. >> It's more I don't even know if it's a
leading indicator, but it's >> I'll just say this about common assessments if I may. Um the build process is not mature by any state of the imagination. Uh we are diligently
working on that. But um if if it's something as simple as I want 50% of the courses across the school system to have common assessments that are vetted um okay um if it's I want data from the uh from
from those um brought to the board um that might be a little harder to do might be on a smaller scale I don't know but Um, >> that's what I was trying to understand >> kind of where we are cuz I had to
reconstruct the SBR process. Um, and and common assessment builds are part of that, but um, it's a deliberate process. Um, so I I'll just throw that out there. I I'll do what you want me to do. Uh,
but can't squeeze blood out of a turnup as we are right now. But that's I think that's what I was trying to understand earlier is like part of this there's s systems level work happening and it's part of our job as a board to understand what's fidelity at this point in terms
of what is being rolled out and how is it actually shaping out in the schools as we want it to versus when the data may like behind that in the coming couple years. Um, but I also think if you're I think your point is a good one
that we often don't feel like MCAs are capturing how our students are actually doing. So perhaps an idea is just for a question for Tracy or um, Superintendent Bowman. Maybe you have an idea, but is there anything else that we
can use as more of a an indicator? I would say fastbridge because I mean I don't think it's my job as a board member to know like what Johnny got on his second quarter science exam that happened like
>> I don't think he's asking for >> I just don't think we need that level of well those are common assessments. I think as a parent, you know, the the fast just came out. >> We got the email a couple like last week >> and I look at my kids grades. I don't even know what they mean. M and
elementary. The fast bridge scores I am hyper looking at because it tells me how is my kid performing to other peers in Lakeville but other kids across the country. And that tells me are we on track or not. And while I while I think
common assessments are really important and those can drive towards good scores on these standardized tests, I just think we have to pick like we have to know that the common assessment work has to happen in order to drive up these numbers.
>> Correct. Well, I mean we did see, you know, Sean Murphy came in here and spoke a month ago >> in Kim >> and was in Kimbouti. I mean, highly in favor of common assessments. We're not the only district that's pushing for it either. Other districts have it. >> I'm not pushing against it at all. >> And again, I just I mean, I think we're
throwing darts as board members if we don't have more reliable data on the academic side. I mean, Vastbridge, what do they call it? It's a it's a different kind of assessment. Uh I'm blanking on the name of it. It's >> a growth indicator.
>> Yeah. I mean, but it's not like, hey, we're testing you on what you're learning, right? Um because again are we teaching to Fastbridge you know are we teaching that same material in our classrooms and then does Fastbridge even test beyond 9th grade? >> Are you kind of suggesting then we don't
have these tests? >> I mean it's what we have right now. >> Yeah. I mean that's like what we've set as our main goals >> because that's all we have and that's why I'm saying I'd like to see the common assessments move forward you know. So why can't we >> common assessment? >> Correct.
>> Which again I feel like is too too detailed and dialed down into like classroom level that's going to look so different at secondary levels when they're taking multiple classes. Like then you're only pulling data from like elementary because they're doing reach.
>> Can I do this just to maybe um >> expedite? >> Well, it's not expedite. It's there. It's a great debate, but I hear Matt saying get a metric in there on common assessment. Yes.
>> Yeah. I mean, I think you guys are already doing the work, right? Skating that direction. So, I will come back to you with a proposal on what that should look like and >> maybe we can debate that cuz, >> you know, I want to make sure that I'm not putting my teaching and learning
folks into a position they >> Yeah, they think it's important. I think you're talking about you want to see I mean what I'm hearing you say is you want to see a common assessment metric where we're tracking student
performance. What I'm hearing you say is I think we should make a goal on getting 20% of our assessments to be common and then increase it which >> but within that you could also you could also do the same alignment. >> You could do both actually. Um
>> it won't be 100%. Right. And you know that in year one, right? >> Like that's what I think I'm like we're not going to have common assessments for everything this academic year. >> So are you comfortable with like a small amount? >> So I mean this is what we have right now. We have fast bridgen MCAs, right? And that's why we set our goals on those
numbers last year because that's all we had, right? >> We have CAPD, too. >> But, you know, we heard the >> which is second >> the principles come in again and they were saying, well, yeah, we're moving that way. We're getting alignment in the curriculum >> and working on these, but >> I think it might take
>> 5 years to fully get there. So, are you comfortable with like a metric that would say X% >> I don't know why it's going to take 5 years, but >> that's I made that number up. Well, I don't think it's a one year. I don't know why it's going to take two years or three years. >> It's a complex thing to get things
vetted. >> Yeah. But I'm I'm curious cuz I think Sean Murphy may have been a little bit more optimistic and maybe it's just on the secondary level with getting >> their common assessments in place. >> It is it's different at secondary than it is in elementary. >> Yeah. >> I I think it's
when you're looking at the nuance of the data like I understand like how many different things are captured with the CAPY testing phonics. um you know all the different components of what they're missing for the the phone names. And so then it's not only like getting them to
take the test, then seeing the data that we get and then providing an intervention that's going to help the students make progress on that. So there are several steps in this process and just because we start capting and we know where students they're at, we have to know what to do with that data and
then we have to have the intervention in place to be able to accommodate for that. and we don't even have all the interventions built yet. So, yeah, I'd say it's probably a five-step process or five-year process because we've got to do all these other things first and then we've got to have the money to have the interventions in place and the teachers.
>> Let's just get the data first. >> What? >> So, I mean, Michael, I think Michael said he can come to us with something. I mean, my I appreciated this document. I had not seen it until today. I feel like if all these things were either improved or reduced based on the thing, we would
be in a really great we would be making great movement. And so I think while I think we can cherrypick and add things and we should if there's critical things, I'm not >> um I also want to be cognizant of like we have to we can't have everything beyond this document because otherwise
nothing will get accomplished. Brian, >> you can have it. >> We might get part of it. Yeah. Um >> sing. So, I'm going to throw an idea out here cuz I and the reason for that is because we're going through some uh calibration exercises at at at my work.
Um, as a leader of an of a respective business unit or department, uh, I'd love to be able to I want to put some sort of incentive tied to something like this. And so, with the executive team and the superintendent, I want to add
some sort of a incentive bonus structure. uh in in something like that. So that's that's my I don't have I don't have a specific dollar amount or a percentage but while it is a job it is your salary but these are metric driven
initiatives and so if there's appetite within the board I don't know when is an appropriate time to to discuss can an incentive bonus structure be tied to annual goals and the executive team to ensure that there's alignment and a
uh you know a a drive towards these metrics. So >> not if the metrics are questionable. I mean we were just debating MC >> agree. So we we have to align on whatever the goals are and figure out how we get there. But uh and and I don't know financially how that would how that
would work. But that is the direction that I'd like to go. >> I think my only challenge with that and I'd like to learn if other districts do that. I mean I like and they may not. I don't think they are. >> And not that we have to do what they do. >> Yeah. at least in higher ed that would be very
uncommon. Either you do do it or you're not here anymore is the incentive. Um because there isn't just like extra money to and and then in a system like this a lot of yes we need the superintendent working at a higher level but we need
the kindergarten teacher too and to separate the two from >> um one getting incentivized through money and the other not I think is very >> different contracts or different >> I realize that That's a little different in in public business where >> right >> or private business we've got folks that
don't get bonuses, they don't get incentives. But when you've got senior leaders that are responsible for operating, managing, and delivering on the results of a $250 million operate, a $300 million operation,
well, this isn't a very uh it's not something that would be an outlier. So, but maybe in public education, >> I think we might be a long way from evaluating if if correct me if I'm wrong, Michael, where we could effectively evaluate that for
every staff member at the cabinet level. >> I mean, it'd have to be it be contractual, too. You know, that'd be the challenge. So, you'd have to do it at the time that you're renewing contracts or updating contracts. >> Um, >> yeah. I mean, it's interesting. >> I mean, I mean, why can't we just say,
"Hey, we're going to add because we're not changing their existing contract. We're just saying if you're going to meet these metrics, guess what? We're going to provide an incentive structure >> because then you could you could account for it in your budget though. Like we're going to have to have x amount of dollars to hit bonuses. >> Yes. >> Available for bonuses if
>> Michael. Do you know of other districts that do anything like this? >> Um I'm not aware of a contract uh that's structured like that. I think part of it has to do I I don't know if a superintendent would want to take that. I would just um
>> why I don't know. >> Well, I I understand what you're saying because it's an >> the problem the problem becomes here. Here's one of the things and and I think it's a it's a legitimate uh it would be in my view and I'll just make it my view
a legitimate concern of a superintendent um to in in pay structure not outpacing what the rest of the organization is operating at. Um,
I understand the the uh value of incentive. Um, but I think in an organization like public education that is got a lot of uh labor unions, I I would not as a
superintendent want to do that. Um, but I'm may be an anomaly because I also don't take any any pay increases. >> Yeah. Um, I didn't do that in my contract. Um, but that's that's a value
judgment that I take because I've watched news reports about superintendents getting percentage raises higher than say the teachers union. And I think that's bad optics. Um
the other challenge is uh I think just what Matt said that you know during the contract negotiation process is when you have to set that um and people might b at it at the next echelon below like as at an executive level they might say
well that doesn't work in the system I don't want to be advantaged in any particular way with that but um others might have a different opinion on that and and I would respect that I just think um
an incentive structure like that would be very difficult in in this environment to from an optics perspective and that's just my candid response to that. >> So Michael if if we take an incentive and move it aside. >> Yeah. >> And Brian I know it's done in private business all the time and it's very
motivating by the way very motivating in private business. um you there's still an you still have an economic lever with merit increases because correct me if I'm wrong I don't know I don't know if
there's a grid for the executive staff not not union but the executive staff but I'm I'm assuming you have the ability to say you get a 2% raise you get a 5% raise um because you're you know >> I think it's baked in your contract isn't it
>> well there's there's contracts that have that and then There's um uh I I've worked in two different systems. One system when I was in St. Paul, it was a three-year contract for and I'm talking at the executive staff level and it was a a set percentage year-over-year and
you signed it out of line and that's that. Um God bless. I've been into other districts where what the your pace setting collective bargaining agreement becomes the percentage change that you have for your non-affiliates and your
and and whatever other structures you have and they stay they stay on pace there. Um that's, you know, again, a fairness thing. Um because then you get into the conversations around, well, they're getting more
percent increase uh than >> the majority of your of your team. >> In sports, you see it in in in private enterprises. I mean, I think Travis Kelce, he gets like 10 touchdowns. He gets like a million dollars or something like that. >> Oh, yeah. I'm not saying you get a million, but it's like there's
>> Yeah. When you've got individuals in leadership capacity, >> generally there's an incentive structure that's tied to it. >> Not not in the public sector, Brian. That's not true. >> In the public sector, that's not true. I will tell you too, in the military, it's it's very I don't care if you got four
stars or or 10 stars, there's a cap and there's a there's a structure to it. And um you know I would tell you that the commander of Sentcom is probably doing more than
a lot of Fortune 500 company CEOs ain't getting paid anywhere near that. Um and that's because it's it's paid through government and tax dollars. And I think you have to take that into account too where a private enterprise can generate
all kinds of revenue for a vast uh set of differences. And the limiting factor I think um for public entities is it's we're tax driven and public education in particular is 100% tax driven. We got no other revenue source we can go to. So I
think you have to be very careful about um that kind of structure. While I understand from a principal perspective, I fully understand it. Um, but I I think that the fact that the dollars come from tax revenue, we have to just have a
different perspective on that. I think also >> I appreciate that some people are motivated by bonuses or whatever they're called in private sector and there's no value judgment on this but I think we also have to appreciate
people who go into professions like this operate with a different different mentality at times. So it's very missiondriven. You know, you hear like the phrase like no one goes into teaching to get rich, right? Um they're not doing they're not
like horrible off, right? But but if your goal is to make money and to to make as much money as you can, you're probably not going to join public education. You're not going to join the University of Minnesota. And I am driven different. I I don't get incentives.
That's not why I do good work. It's about some it's about this other kind of I don't know what it is but I think people are just different and I think we have to figure out what incentivizes people and it's amazing to hear you give and I'm not trying to I think contracts
are important and we need strong contracts but you hear about teachers you know getting a potluck catered by the PTO and that is like one of the biggest morale and incentive boosters for them and not to say that should should negate more money but I I think >> I get that
>> I think we're oversimpl ifying humans desire to to want to do good work. >> I love potluck. >> I I I get that. I understand that. Uh if if you want to be comparable to compensation to other districts, you know, I think Weisetta they're super comparable. >> I know, but Weisetta superintendent's
getting paid 280 285 or I think 295. I I'll have to double check, but it's >> the new contract. >> The new contract. Yes. 280 295. That's 295,000. That's what they're getting paid. That individual is getting paid. uh for a comparable district like like you just shared ear earlier when we went
through the budget. I'm not saying that uh the base salary is that plus they get incentive. There might be things in the future where what if the salary is lower maybe it is 250 and then you add the incentive on top of that. But again, that's if the board has alignment on does incentives drive behavior. Is there
added kind of bonus for meeting the metrics and and and part of being the leader slash CEO slash, you know, what that that's just that's part of the structure. And so I'm throwing it out there. >> Sounds like there's >> lots of appetite towards this uh
endeavor. I'll only add that this year was the first year at the at the VA. >> We've we have had like you get 1% of your salary if you meet certain metrics, >> but everybody has been in that together. This is the first year that there was different percentages based on your
supervisory level. And I think that fell very flat with the staff that like >> it's already based on your salary and now people who make more get higher percentages >> and >> well that's that's like standard in
corporate America like anyone who has a job to >> Amber's point Brian like I did not go and work in the VA because I want to make the most money I possibly can. And it's not it's not designed to make >> different entities, >> but it's not designed for you to make
the most money. >> Sometimes you cannot take your business experience and exactly apply it to public education. It's not apples and apples. >> I mean, in in Brian's defense, I mean, we do we do have at the at the director
level, I mean, if you don't perform, you might not get renewed on your contract, right? >> And that's very that's very real space. >> Yeah. So, it's there's a downside to it, but then he's talking about adding an upside, >> you know, to a point where >> it's not a bad idea. If you're you've
got a district that's that's stagnant or decreasing, maybe you need somebody says, "Hey, I'm willing to take the risk, and if it doesn't succeed, I'm going to lose my job, you know, but if it does succeed, these changes I'm going to make, maybe I'll get a bonus." So again, I think that's something
contract time you can discuss. I don't know that we superintendent not in favor of it. >> He's not. But I wanted to share I'm not I I just want to say from a value proposition, I get it and I would be in favor of it. I don't think it works in public education or any
government entity where taxation is the revenue source because there has to be how you going to control that? Now, you did say something, uh, Director Thompson, I I I think would be an approach that if you wanted to rally around it would be to lower that base
salary and create incentives in there so that you're staying within that market rate and that might incentivize. But, you know, if I'm a superintendent, I can and I'm looking for a job and I could go here where I don't have to deal with that and I go there, you know, I go, it
goes back to what Matt was saying was, you know, hey, do I want to take those kinds of risks? Um, >> and everybody's situation's different. So, >> yes, let's let's make sure we're on the same page. You know, Channel 5 News, KSTP, had an article out on October
15th, 2025. uh they had superintendent compensations and Dr. David Law, Minnitanka public schools makes $298,000 as a salary. Plus, he has the ability to earn up to 59,000 a year in performance
pay if he meets certain goals. So, he's getting paid 350. >> Well, let's look at >> in our current contract. I think the superintendent is what 2ish 250ish or something like that and below you know Minnetonka and AIO's 280 Anoka is 280
and so again it's not unheard of but it's a it's one of those where if we're going to create metrics and goals uh is there something that we want to consider and while what if there's back backlash there might be but you know what then what if there backlash because
they want an incentive well yeah then let's make sure that if they're if they hit their metrics, cool. Then let's give everybody incentives. Like, I'm okay with that. If if we can show progress, proficiency in reading and math, but but maybe for another day in an alternate
universe for >> I'm going to say that I feel like we have a better superintendent. >> No, David Law is pretty good. >> So, I think I'm just I'm reading what what it says. I'm not saying that we need to do it, but >> maybe we can look at Mitaka's contract
and if and when we need to recruit a new superintendent that should be part of that contract. But >> I don't know >> what does anyone have any suggestions on? Is this document close to where you would hope it would be? Are you wanting
something substantially different? Paul, >> yeah, if I Michael, you said something earlier that I think was spot on and that you took great notes last year >> because if you remember the conversations we all had up at the DAS
about metrics, about common, you you were all sitting in the same seats I were. So, a lot of that is in here. >> Yeah. >> So, bravo to that. So to answer your question, Amber, I'd say
85 90% of this I'm personally I'm satisfied with. Now we do have to come to agreement on metrics and what that number should be. >> Um and I do think that we should run parallel
uh run two parallel rabbit trails even though we may not have common assessment and current alignment because I am aligned with Matt on this. Um, we can't say let's just not do it or let's forget it because it'll never happen.
>> And if we use what we have, but we're running a parallel with the with the common assessment and the and the current alignment, I'm not sure how we ever find out who's proficient and who's not. >> Yeah. >> If nobody's motivated to take the MCAs
and all those other tests, they are motivated when they're in the classroom. >> Yeah. >> And they've got to take a test or >> Yeah. I'm not suggest I'm suggesting that I add something in here. So it doesn't have to be parallel. It'll be I'll put it in here, but obviously we got to get agreement around what that
is. And I need to do a little more homework >> to to get it there and I'll come back with um with that as well as some numbers here that we can maybe kick the can around on those. >> Okay. I think that's >> maybe like in our next work session
because >> you can kind of come back with that some of that. >> When is that? July. >> July. >> Or do you want >> I think I might be in it. It is I'll probably be in Tahiti. >> Oh, good. >> I don't know. My wife is My wife's like,
"You got to take a vacation." >> Me, too. Yes. >> I always look at July because >> Yeah. So, it has been mentioned that sometimes the board takes a break in July. >> Yeah, we used to do that every year. >> Oh, really? >> Yeah. July was uh if
>> maybe I'll run into you, Brian, on the golf course or something. >> Most school boards do. Yeah. Many other school boards do not meet in July. So, >> but I'm not suggesting that. Please do not. That's a different conversation. I just want to make sure that >> I'm physically here to do that. We
couldn't take July. >> We have too many policy discussions to take a break. I think we can take. >> Yeah, exactly. And >> it's a bad idea. >> I mean, I can also >> we have lots of stuff to do. >> I can also make sure that you get a a read ahead uh opportunity so that you
know we we don't have so much homework to do. >> I appreciate you putting it together and thinking through this. >> This is good. >> This is good. >> Good. >> Yeah. Brian, >> so my last comment is is um I do like the framework. I like the four goals. I think it's good. again uh what are we doing for metrics and then what are we
doing for initiatives but I also want to be mindful that uh ideally we should be having these conversations in October November in Q4 so that whatever we want to plan for the next school year it's part of the budget budget budgetary
discussions in January so that he's he has the additional staffing and resources >> and then and then training over the summer so that whatever plan >> we align it in October can have the opportunity to be implemented in
September. And so you don't have this opportunity. You don't have you don't you don't have January to to find the resources um uh do the training materials, get the team aligned. So you would be going really fast. So I just want to be mindful of like short-term
goals, things that are probably uh achievable in this window and then revisit this back in October. >> Yeah. >> Setting the stage for next year. Mhm. That's all. >> And I think the good thing is a lot of this builds on what you're already been focused on. Yes. This is not new things. >> That was the goal.
>> Yeah. >> Yeah. >> So not it's not really new new initiatives necessarily. It's already in progress, >> right? It's reinforcing. Yeah. >> Good to see it in the structure and all summarized the way it is. >> Like the dashboard. I loved it. I'm glad that the campus the the uh the dashboard is built up because when we were at the
Lakeville City Council meeting like I had that popped up and the lady to the right of me I forgot her name and she was um >> I think she did the zoning or the the boundary or something like that and and we were looking at you know um uh stats enrollments and like that like I love that like that was great to be able to have. >> Yeah.
>> So >> great. Okay. Anything else for tonight? Anybody? >> No. >> I just want to thank each of you for at least giving me the feedback I need. So, thank you for that. >> Yeah. Great. All right, we're adjourned. >> Awesome. Thank you.
>> Wait. >> All right, >> there's more. >> What? >> Graduation was super fun. So, good job for putting it together. >> Uh, all the kids, they went through the process. It was awesome. So, I don't I I know a lot of work behind the scenes went into it. Yeah, I don't I didn't see
it other than we were there, we were present, we did handshakes and um >> so I got your your uh feedback critique feedback. I got Kim's >> I'll give you >> um and I'm I I am just doing an all call for if if there are others because we're
we're doing a AAR uh on the 23rd internally to do the you know the review of that. So >> what does a AR stand for? Oh, >> I'm sorry. Afteraction review. >> Thank you. Um, so I want to capture all that and then I think there's also a
conversation about and this is something I will will bring back to the board. Um, what are options for for next year? Um and you know cuz I I I I don't think we have unanimity that we want to stay here
but I think uh the afteraction needs to happen first so that I can talk uh in detail about you know what are the tradeoffs. Um >> it does it does cost us more to do it here than Maruchi was charging us just
so you know. Oh yeah. >> Yeah. So, um, that you know, I know everybody's financially conscious around here. Uh, and I want to be >> So, it went into the general fund a little bit. >> Well, it's all general fund anyway. I
mean, Maruchi was general fund. >> Fun. Yeah. But it was it was more than march. >> It was It's more than maruchi. But um you know the other I I don't want to do the AR now, but I just want to make sure you know that I'm not like okay this is
the only option. Uh and we probably as as a school board and myself as a superintendent need to have the conversation with you about what are some other options and do we want to consider them? And my driving issue well I I'll honestly say I have two. One is
financial and the second one is nobody wants to make the weather call. >> You do not want that in your life. >> Um but I think having a contingency is is important. I think we did have a contingency. I don't know. We didn't
have to exercise it. Thank the good Lord. Um but that's just not a fun thing either. So >> stress is that for staff to that day? Well, it here's how it goes. You guys
will say stuff to me and then the rest of the staff will be, you know, like everybody's ringing their hands. Well, what's the superintendent going to do? What's the super? Cuz nobody wants to make that decision. I'm not afraid to make the decision. Just a lot of anxiety associated with it because you want the
kids and the families and the community to have a wonderful experience. Um, you know, and we didn't have to go inside, but if we have to go inside, I think you guys are gonna have a little different experience. Not be not at the ceremony itself, the aftermath. >> I didn't even ask you. I'm like, I don't
need to put more pressure on you to >> feel like you have to make one way or another decision. >> I know. I talked to Jason. >> I talked to Jason and it's like, you know, no superintendent wants that >> in their world. But >> you make the call when there's a snow
day. I mean, it's like Oh my god, that's so much easier. Yeah, I'll tell you the secret to that. >> I'll tell you the secret to that if you want to talk. >> Thank you. >> All right, bye everybody. >> I like this one.
>> I miss seeing both. >> Yeah, I miss seeing both of them and also the awkwardness of the stage situation.