All right. Um, next up we have our action items. Um, first up is our resolution um for the 2025 reertification of updated population. Thank you, Madam Chair and school board
members. Uh, community education funding is determined based on the population of each school district. Population of a school district must be certified by the Department of Education from the most recent ederal census. In any year in which no federal census is taken, a population estimate may be made and
submitted to the state demographer for approval. To be considered, the school board must pass a resolution by July 1 containing a current estimate and the population of the school district, which is why I'm here because July 1 is next week and we just got the numbers.
So ISD62 population figure on record is 84,485, which I was here at this time updating the most current estimated district population is 85,097. The current estimate was created using
2024 data from the Minnesota State Demographic Center. So, as the law requires you to approve this resolution to be adopted for us to move forward so that we can receive uh new funding, updated funding with the new population
as a consideration for the uh payable out in the 2026 revenue calculations. So, at this time, if there's any questions, I will answer them. Otherwise, we recommend approval as presented.
I don't think there's any questions. Okay. All right. Thank you so much. Um, so the resolution, I'm going go ahead and read it. Um, be it resolved by the school board of independent school district number 622 that the revised population estimate of the school
district 85,97 be submitted to the state for use in the community service funding formulas. A motion and a second. Right. Moved by S, second by Martins.
Um, any discussion? All right. All in favor say I. And all oppose say nay. All right. That resolution passes. Thank you so much. Um, next up we have our acknowledgement of contributions.
Minnesota statute 123b.02 permit school boards to receive for the benefit of the district request donations or gifts for any proper purpose and apply the same to the purpose designated in that behalf the board may act as trustee of any trust created for the benefit of the district and for the benefit of peoples
thereof. Uh therefore the director of finance recommends the following resolution. It resolved by the school board of independent school district number 622 that the school board accept with appreciation the following contributions and permit their use as designated by the donors. Oaklair
Community Foundation $1,000 for the leader in me program annual renewal. Evans Transportation Services $2,000 for North BSU activities and Boulder Ponds Senior Living $200 for the senior Golden Prom musicians fee.
The total fiscal year uh 2425 monetary contributions would be $87,262.71. All right. Could I get a motion and a second? Move by Yer, second by Anderson. Um any discussion? All right. All in favor say I.
And all oppose say n. All right. Thank you so much. Um and then we have our budget approval presentation um by Dr. Anderson. Okay. Well, good afternoon, Sher Yang,
directors of the board, cabinet. Thank you all for the opportunity to with you today. If we happen to lose our connection, we are recording um on our on our platform on the on the DVD and the platform and um we'll follow along. If for some reason we lose connection
again, I've got a printed copy. You've got a copy and board book that we'll keep going and try to get things pulled back up. Um so happy to be here with you tonight uh to present our proposed budget for uh fiscal year 26. By law, uh, school boards are required to
approve a balanced budget for the upcoming fiscal year by June 30th. The budget we are presenting this evening for FY26 is based on the best information that we have available at this time. It is important to note that school districts routinely revise
budgets throughout the school year and throughout the year. While you will be asked to approve this proposed budget, you can anticipate amendments and updates during the course of the next school year. And this practice common all school districts across the state of Minnesota.
Our revenues are distributed across nine different funds with fund one, our general fund being by far the largest. The budget assumptions that we are going to share this evening were the foundation for developing our proposed general fund budget. These are the same
assumptions you reviewed earlier this spring, providing consistency and transparency in our our planning process. By maintaining these assumptions, we ensure that the budget reflects the most accurate and reliable data available at this time while
allowing us to make informed decisions align with our district goals and fiscal responsibilities. And so we are projecting a slight increase in our enrollment, which we'll speak more about in a few slides. We will see a 2.74%
increase in our basic formula allowance. We do have some reductions that we are anticipating that we'll know will take place. We have a reduction of about $154,000 in our compensatory revenue and a little over $660,000 in a reduction in our title one revenue
which we're expected throughout this process. We have an increase uh in utility costs just like homes and other businesses. We have an increase in our TRA contribution, an increase in transportation and insurance. Um, and we
are entering negotiation seasons with all of our bargaining units. And so we are still TBD a little bit in negotiations. So enrollment is the primary driver of our budget and for the upcoming school year. Again, we are projecting a slight
increase. U most funding formulas are based on the adjusted pupil units which you can see at the bottom account for the differences in our grade level waiting. So students in grades K through six are are weighted at a 1.0 while students in grades 7 through 12 are
weighted at a 1.2. And this waiting again explains the variation in numbers that you see at the bottom of the enrollment chart. So for reference, our average daily membership or our ADM is 10,399
with our adjusted coupon units being 11,389. So now moving into the general fund. Our general fund makes up a little over 70% of our overall budget. This is the revenue stream broken down by funding source. You can see our basic
general revenue allowance at about 43.4% our special ed aid is at about 16% federal aid at about 3.5% and then uh voter approved operating and local optional revenue 5.94.2%.
And so we are in the people business and so the majority of our budget is dedicated to people to do the work across the district. And so salaries and benefits make up typically about 80% and we're just under 80% here. We fluctuate between 78 and 80% year to year. And so
we are the same here as well. Um so that does make up the majority of our expenditures in the general fund paying for the people to do the work across the district. Taking a look at the overview of our general fund. And so we are anticipating our total revenues for fund one to be
about 196.3 million. Our total expenditures before reductions at about $26.3 million. Our targeted budget reductions of just over 7 million bring our total expenses after the reductions to 199.3
million. We are anticipating that the difference between our revenues and expenditures will be covered by our fund balance contribution. And it is important to note that with the expected or the predicted fund balance contribution, we will still fall within the board
parameters of between an eight and 10% of our unassigned fund balance. And so since fund one, our general fund, is by far the largest of our overall budget, I want to pause now and ask for any questions related specifically to
our general fund if there are any or we can take them at the end. It doesn't matter when. Can you explain um why seventh and seventh to seventh and 12th graders are weighted at 1.2. Yeah, generally costs more to educate
secondary students because we have they have multiple classes throughout the day and so it generally costs more and so that's why they're given a higher weight. Okay. Okay, we will move on then to fund two, which is nutrition services. And you can see fund two nutrition services makes up
about 3.5% of our overall budget. Some of the budget assumptions that were used for nutrition services to build the budget. Um, increased food costs. We have higher breakfast and lunch participation again this year. Um, you know, which is a good thing. We want
kids to be eating breakfast and lunch. We have increased labor costs. Um contract settlements are TBD for this upcoming year, but we are um putting some assumptions into our budget projection for nutrition services. Additional staff to support our dishrooms and breakfast programming.
And so for nutrition services, the projected revenues are about $9.8 million. The total expenditure is about $9.5 million. And so we are expecting that they will be adding to their fund balance at about $285,000 for fund two.
So since fund two is a separate fund, um fund two has their own fund balance. And so they do have a healthy fund balance and so they're again projected to add about $285,000 to their fund two fund balance. The next fund is fund four for community
service or community education which is which is more commonly known. Uh community ed makes up about 4.7% of our overall budget. They have a whole slew of programs and so these next couple of slides will walk
through all of their proposed programs from adult basic ed down to aquatics to community bridge. You can see the proposed revenues and proposed expenditures. We have EC screening, um, non-public youth enrichment, and so overall for
community ed, they are anticipating revenue of just under $13 million, expenses at about $12.8 million. And so they also have their own fund balance as um as community ed. And so they are projecting to add about $151,000
to their fund balance and fun. Next, we're going to move on to fund six, which is construction. And so, fund six, um, for revenue makes up just under 1% of our overall budget. And so, revenue for construction generally comes from interest earnings in the bank. And
so, um, we have $1.5 million in revenue, um, in in our budget model for this year with expenses about $15 million. We still have projects happening across the district. Um, and we will be selling bonds for these projects in the next couple of months. And so we'll be coming
to you with some additional information from our financial advisors from Ellers for selling our bonds here uh in a couple of months. And so we are expecting um our construction expenditures to be about $15 million for this upcoming year.
Fund seven debt service. So debt service uh overall makes up about 8% of our overall budget. Our projected revenue for debt service is just over $27.3 million, which aligns with the pay
25 property tax levy that was approved and finalized back in December of 2024. Uh this category includes both voter approved and non voter approved areas of our of our uh of our levy, excuse me. Um, and we're expecting our expenditures
to be the same at 27.3 million. Next, we're going to move on to fund 20 and fund 21. We are self-insured for medical and dental. Fund 20 medical makes up about 9% of our overall budget.
As a school board, you approved the health insurance rates earlier this spring and based on those approved rates, we are currently projecting that revenues and expenditures will balance out at approximately $25 million. Fund 21 for dental is just under 1% of
our overall uh overall budget and you can see revenues and expenditures should balance out at just over $2.2 million. The last two funds are fund 45 OPED trust and fund 47 OPED debt. OPED stands
for other postemployment benefits. So the OPED trust fund, fund 45 was established back in 2008 2009 to support postemployment obligations. So funds from this trust help offset the contractually obligated costs of retirey
benefits which include health insurance, dental insurance and life insurance. And about less than 1% of our overall budget makes up the OPE trust and revenues and expenditures should
match at $1.4 million. fund 47 OPED debt is also under 1% and we are expecting revenues and expenditures to be just under $2 million. So the OPED debt service also covers annual payments of our op bonds
and so these amounts are included in the annual levy that was certified by the school board. And so with that, I would be happy to answer any questions that you all have regarding our proposed budget presentation for FY26.
Thank you, Director Anderson. I do have a a couple questions. You bet. Um the first is that there with so many funds, um is it I've seen this question um out in the community. Um we're not can you confirm we're not
allowed to move like we can't take an overage from nutrition and move it to general fund. That is correct. They all stay separate and they're coded separately. They're coded separately and they all they they're all restricted funds and so they can only be used for the um for the intended purposes correct.
Um and this is I'm sorry in the community education fund. I did see a line item for meals on wheels and it did balance in and out. Is that something that like transfers over to Merrick or is that something that is still on our books for the It is on our books for right now. We we will have to
do that budget adjustment next school year once everything's officially transferred over. Okay. Thank you. Um and then could you just speak a little bit on um what went into deciding and and figuring out where to get $7 million in reductions? I know there was a lot of hard work. Um
yeah, could you speak on that a little bit? Sure. I can start with by saying so our budgeting process um starts way back in the summer. Starting next month, we'll be planning budgets for FY27. And so it all starts with entering preliminary information into our property tax system
through MDE. And so um and so starting in that process in in in July, we then come to the school board in September with the proposed levy uh and then in December officially starts the the budgeting process because we officially have numbers for the following year. And
so then in January, in that timeline in January, um we put together our bud our budget assumptions. We take a look our our enrollment over the over the past several months. Then we put everything into our budget model. And we and we get um what we are expecting for our revenues and our expenditures and our
budget model. And then from there, we have a whole team approach to figure out if we have to make reductions, where those reductions are coming from. Um and so we we ask our cabinet leaders, we ask department leaders, school leaders, building leaders um to uncover everything they can think of on where we
can find potential savings across the district. And so um I think all of us are feeling budget cuts across all of our department, schools, and programs. Um which is not a fun place to be. Um but that's the reality for us and for many school districts. Um but we we
spent many months and many meetings looking through all of the areas in our budget by detail. We we can pull the detailed information from our Skyward reporting system, look at past year, past trends, and figure out where we might be able to find some budget savings throughout the year um
throughout the upcoming year. And so it is a whole team approach um into the into the whole thing. Um it probably would be a lot easier if we just had one person sit down and just kind of go through and say this can go, this can go, this can go, this can go. But people want to have voice in the process and that's not the right way to do things.
We want to have a whole team approach. We want folks to have a in the process as we develop our budget. And so it is a whole team approach that takes a long time to kind of go through to make sure we're making the best decisions that has the least impact on students as we are making elections.
I just really appreciate all of the work that went into it and the um the the collaboration and then the way to reach out and give people that voice and I think some of the ideas that um teachers and others in the district had ended up in the final budget. Um, thank you for your work and the
cabinet and the district and um, also I want to acknowledge that you didn't get final numbers until what two or three weeks ago it so it was a lot of work and we appreciate all that. I'll be happy to ask if um, you guys have anything else to add in because you obviously were both very involved in the
process throughout the entire way. Thank you for I think elegant explanation of the things that we've been doing over a number of months. um we were determining how to get to a big number. It's hard to get to $7 million. And so it is a team process and we use the work of our principles uh to give us
feedback. We look for every efficiency we we can but we're ultimately trying to stay as far away from the classroom and the service we provide for students that's ultimately the farthest away that we want to go. But ultimately when you're making that big of a reduction um there is an impact. We made a choice,
for example, to um make a decision with a change in the middle school schedule. We felt that we could continue to have strong outcomes with an aligned schedule of what we do at the high school and uh we saved a significant amount of dollars with that change. So that would be one programmic decision that we made um that
we think had an impact that doesn't necessarily negatively impact students. All right. Um, so let's do the resolution. All right. So, be it resolved by the excuse me, school board of independent
school district 622 that the 25 26 proposed budgets be approved as presented. Could I get a motion in a second? Moved by Anderson, second by Do we have any um discussion or
questions? Okay. Um all in favor say I. And all oppose say n. All right. That passes. Thank you so much. And then I think you have the the next one as well. Y for sure. Uh so next in front of you, so we have our our June 25 budget
revisions. So each year budget revisions are presented to the school board to ensure financial accuracy and alignment with updated revenue projections. Um are involving financial conditions. And so, um, we had some budget revisions a few months ago and here are the final ones
for 2425 in three key areas. Fund one, um, we are revising our revenue estimate, um, by $1.3 million. In fund two, we have a revenue increase and it's an expenditure increase. In
fund six, we have an increase in our revenue um and also a decrease in our overall construction costs for this last fiscal year. And so there are three budget revisions in fund one, fund two, and fund six for your approval this even.
I will go ahead and read this resolution. So, be it be it resolved by the school board of independent school district number 622 that the 24.5 district budget be revised as presented. Um, could I get a motion and a second?
Moved by Sweden by Yenner. Um, any discussion? All in favor say I. and all of those. All right, this also passes. Thank you. Thank you. Okay, next. So, you have
one final thing which is in three parts and so so cheering and directors of the board, you have three resolutions in front of you uh that relate to the November um election. And some of these now, although you have back in May, we looked at the
ballot questions. Um the legal ease versions um just came to us from our attorneys in the last couple of days. So I apologize we didn't have these last week, but they're now all three in board book and all three in front of you this evening. Um so we have three resolutions
again relating to our November election. We have the resolution and sample ballot to officially call for an election to be held in November for an operating levy and capital projects levy. Resolution number two is a resolution and sample ballot to fill a school board vacancy.
And then resolution number three is to establish dates for filing affidavit of candidacy for the school board election. So again, we looked at the sample levy ballots back at the May session. At that time, we requested that the capital
projects love question be updated to specifically include technology systems related to security. And I want to point out that that language was added into the official ballot question for the capital project that is specifically called out in the question for that
piece that you all requested. And so these three resolutions will then officially call for the um election in November for an operating levy that revoke and replace the capital projects levy and call for um the election to
fill the vacant school board position. and Cherry Yang. So, these are long resolutions and so I think um you only probably need to read points one and two and the rest are on file and board available in the finance and business office.
Happy to answer any questions regarding any of these resolutions or the election if you have any. Also, Josh, I notic that the is a little bit shorter than I remember anyway.
And I'm just wondering how besides this meeting tonight, how do community members become aware that there is filing so that they Yeah, we'll have to post information publicly in local newspapers and on our websites and around school buildings.
And so I believe the the window is shorter because um the uh the days that used to be you had to call an election 74 days before the before election day that increased to 84 days. So I believe that is why the filing window is now um
shorter than it used to be. All right. Um so seeing as there's no questions I'm going to go ahead and read the resolution. So the first one is um the resolution relating to revoking the existing referendum revenue authorization and um approving a new
one. So um be it resolved by the school board of independent school district number 622 um as follows. The school board hereby determines and declares that it is necessary and expedient for the school district to revoke the school district's
existing referendum revenue authorization of $26.83 per adjusted pupil pupil unit and to replace that authorization with a new authorization of 1,15283 per adjusted people unit. Should I read
the rest of it? That's good. In the number two. In the number two. Um and then the school board hereby determines um and declares that it is necessary and expedient for the school district to also submit a capital levy a capital project levy authorization to the voters
for their approval. Um the capital project levy authorization will be in the amount of 1.359% times the net tax capacity of the school district. Um, can we vote on it? All both of them together at the same time. Yes.
Okay. Um, okay. So, this one, the two that I just read, we can do it together. Yeah. Okay. Um, could I get a motion and a second to approve this? Moved by Anderson, second by Martins. Um
any discussion? Right. Um is this one roll call? Okay. Julie Martins Anderson Katie. Hi. That is approved.
Okay. So the next one is the resolution calling a special election to fill a school board vacancy. Is this one a roll call as well? Okay. Um be it resolved by the school board of independent school district number two 622. A vacancy has occurred in the office of school board
member. It is therefore necessary for the school district to hold a special election to elect one individual to fill the vacancy in the term of school board member expiring January 4th 2027. Could I get a motion and a second?
Right. Move by second by Martins. Um any discussion? All in favor say I. And all oppose say n. That one also passes. Um the next one, this one is
roll call, right? Okay. Um this is a resolution establishing dates for filing affidavits of candidacy. Um be it resolved by the school board of independent school district number 622. um as follows. The period for filing affidavits of candidacy for the office
of school board member of independent school district number 622 shall begin on July 29th, 2025 and shall close on August 12th, 2025. An affidav affidavit of candidacy must be filed in the school
office of the school district clerk and the $2 filing fee paid prior to 5:00 p.m. on August 12th, 2025. I get a um motion and a second move by Martins, second by Anderson and
then Julie Martins Katie. Hi. Um that resolution passes. Thank you. Thank you so much. Um next up we have our assistant superintendent um for a policy revision.
Good evening. director of the board, members of cabinet. Um, this evening we will be proposing action regarding policy 522. We first reviewed this document at the May 6 work study session followed by our first formal reading in May 20th business meeting. And just as a
quick reminder or summary, this is essentially going back to the policy 522 that we had in place prior to the one that was adopted in this past August of 2024. Um, following a uh decision of a
federal court finding the most recent regulation of 2024 to be invalid and therefore having our operating practices and procedures outlined in the 2020 policy or legislative language. Okay. So um resolve by the school board
of school district number 622 um to that we hereby revise the following policy 522 student sex non-discrimination. Could I get a motion and a second move by Mars?
Second by Yenner. Um any discussion? All right. All in favor say I. And all oppose say nay. All right. Um that one passes as well. Um, so next we just have to set the um location and agenda for the August 12th
work study session. Um, we need to set the uh let's see here. I recommend that the August 12th, 2020 August 12, 2025 work study session begin at 6 p.m. in conference room 202 of the DEC and contain the following agenda items.
Superintendent checkin and board checkin. Could I get a motion and a second? Move by second by Anderson. Any discussion? All in favor say I.
And all say um board communication. Um I just want to say attending all the graduation ceremonies was really fun and exciting and watching all the students be really uh happy about it. Um, our
communications department put up some blurb videos on social media and I saw them and we see them up on the stage, but seeing them come off the stage and all the pictures that were taken, that was really neat just to see their excitement. And same with the parents. Um, I attended three graduation
ceremonies on Saturday, so it was exciting to see all their colors presented and all of their accolades. Um, and just want to extend a gratitude to the Adventure Connection staff at Eagle Point. They are doing
great. There's a lot of little kids that are keeping them busy and so just thank you for all the work that they're doing and all the fun activities that they have planned. Um I I would just like to say that uh we we miss having Christine here tonight.
um because uh right now she and uh principal Roman from Eagle Point are um in China um and uh it's I think really a neat u opportunity that they get to go out there. Um and it's mostly based on
on how well our Mandarin immersion school program has been going. Um but I just wish them a great rest of the trip, safety um and safety returning. Um that's it. Oh, and um the trip is not paid for by
the school district. Um I don't have much either. Um I also echo what um Julia had said. The graduation ceremonies were amazing. Um had a really good time being on stage, but being able to videos from a different perspective was nice. So, um I
also want to thank um all of district staff, all of our teachers, all of our um school staff for a great year. Um I know my son just um graduated eighth grade from Jungle and their last day was at um Valley Fair, which I give a lot of
props to the teachers for going out with the students, but they had a a really great time. So, um, again, just want to thank, um, everybody for all the effort and and time they've put into having a really successful year. So, um, Nancy,
do you want to add any board communication? Okay. All right. Um, so future board meetings, um, August 12th, 2025 is our work study session. August 19th will be our next business meeting at 6 PM here in the boardroom. Um, could we get a motion and
a second to adjourn the meeting? Moved by Anderson, seconded by Martins. All in favor say I. All say meeting. Thank you.