[0:01] Okay, everybody, welcome to the study session. We're excited to be here. Thank you to all of our guests.

[0:07] Thank you Madam President. Okay, thank you. Madam Vice President, we're excited to talk about recommendations for the last

[0:18] capital budget and Alpine school districts. Thanks to be here tonight, going to present, but thanks to the

[0:26] business team who is here, Ryan, Robert, Christopher, and Allison. Thank you all for being here.

[0:32] And thank you for all of the questions you answered in finance committee and all of the other

[0:36] things that we've done. It's a process that there's always more requests than there is money.

[0:46] And it's a difficult one, but we've tried to keep the needs of our facilities, the equipment

[0:53] that we need so that we can safely operate that for our students and for our team members and yet

[1:00] still be conservative and prepare for three strong districts and meet some of their needs. So

[1:05] with that as maybe an intro, we'll turn the time over to V and she'll take it from here.

[1:11] Okay, there we go. All right, FY27, casual budget recommendations. We started off this budget season,

[1:19] You know, budget season starts in December goes to August, quite a while, but there's two

[1:25] parts to it.

[1:26] There's a capitol in the operation, so the capitol is the first part, and then right after

[1:30] we're on the heels, we're talking about operations and finance for eight days, so there's a part

[1:34] where we just kind of overlap the two a little bit, so tonight it's just capital.

[1:40] We have several capitol meetings that we start to kind of south through the numbers, the

[1:45] priorities and try to align the revenue with the requests and the requests with the revenue.

[1:51] But those meetings consist of a subcommittee, the various meetings that kind of everybody

[1:56] comes to a table who put in requests and we work through those numbers and try to make them

[2:01] work with the requests for, and then we go to things like finance committee, we go to district

[2:07] budget committee. We have a cabinet we do it and then come to do it. I believe you've

[2:17] already seen a lot of it and spreadsheets. I just want to go over and highlight. I'm not

[2:22] going to go to the spreadsheet tonight, but I want to highlight a lot of what's on there

[2:26] and kind of what went into it. Let's just hit the three to stop me at me. So the revenue

[2:33] for FY27 comes to about $121 million.

[2:39] That consists of the estimated FY26 fund balance.

[2:43] The MIS estimated FY27 tax revenue,

[2:47] that tax revenue comes from an estimated capital levy

[2:50] with estimated property tax values that we get from the county.

[2:55] We always like to keep out what we call rainy day,

[2:58] reserved $10 million to kind of set that aside

[3:01] in case we need it and then also you know we've been building a building fund

[3:06] reserve for several years now so we like to put that aside as well not make

[3:11] sure we protect that so that comes to 121 now you see 163 million down there

[3:18] but the 42 million on that layout right there is our items from this budget that

[3:24] we have found that we could fund from the building fund but we're also putting

[3:28] money back in the building fund at the same time, so it's just kind of a simple thing.

[3:34] Capital budget request that came in this year, the initial request, we have 46 requests

[3:38] that came in for $183.

[3:42] The cabinet is now recommending $43 of those at $163 million.

[3:48] That's a combination, over two of those three are ones that are self-funded, two surplus

[3:54] plus revenue. And then the third one is one that just didn't go through. But other

[4:02] amounts we were adjusting the budget by about 20 million of requests that are part of

[4:07] those that cabinet recommends.

[4:12] Okay, just now we're just going to go through a list of

[4:14] these. I separated them into categories. First categories from admin requests and these

[4:20] are all committed and prioritized requesting that we previously committed to. First one of

[4:26] One of those is the lease revenue bond payment, which is interest only, which is for the construction of the new elementary school and high school out in Lake Mountain.

[4:36] And then the lease bond payment, which we have every year, that amount this year is 12.5 million. And then the next three.

[4:45] So the least one payment is the pre-existing before it is $20.25 a year.

[4:53] Okay, so those are two separate, so they're both least-rated.

[4:56] Yes.

[4:57] Yes, separate them out.

[4:58] Thank you.

[4:59] And then the next three are just amounts that again we're protecting from TNT that we've gone

[5:05] through to build that.

[5:10] Business Services Request are for software licenses.

[5:13] Since gravity is what we use to refer to aquifer and the buffer as well.

[5:20] And then link is the new alleo and TES software.

[5:25] Those license is your request for those license.

[5:29] Transportation, kind of similar to some request from previous years,

[5:34] but also things that need to be placed and updated.

[5:37] One that I want to highlight is the school buses.

[5:40] That provides for about 20 buses at a cost of about 203,200, 5,000 each.

[5:48] So it comes in out to that price.

[5:50] We got $20.

[5:54] Facilities request.

[5:55] As we get to this, I want to hand this out as well.

[5:59] These are things that Frank fully provided.

[6:03] Thank you, Frank.

[6:05] We know it's tough.

[6:07] Very nice.

[6:08] We, Frank, provided, prepared this for the district budget committee meeting.

[6:13] It shows the priorities of the facilities requests.

[6:17] The green highlighted parts of that are amounts that Camden's provided through the revenue that we have now.

[6:26] Some of the ones at the end are still poll maps.

[6:30] But, for example, if we look at HVAC, and you want to say, well, what is that 9 million going towards?

[6:36] this is the list of what it's going for. We're requesting 9 million for HRAC. And then what

[6:43] that that come, and if you see HRAC, sorry, it's the second world, the first one on the left, okay?

[6:49] So each of those boxes has cost estimate and then accumulated running amount. So the cost estimate

[6:56] for each line item and then everything totally enough to that. The very first thing on HRAC,

[7:01] you've got management, servers and licensing. That's reconfiguring to do the district split.

[7:05] So, I think this is such a great document, just because it really does list the school,

[7:10] it lists what's happening, and that's how we get to that.

[7:13] So, okay.

[7:17] That is one they want to point out, and then also the mode, if you look down probably just

[7:22] past half way of that list, mode, work order, and asset management system, it's 1.3 million.

[7:28] The current work order and asset management system is outdated and longer supported, so it's

[7:33] It's just one of those things that we need to do at this point, especially going into

[7:37] the district split.

[7:38] It'll be something that's needed at that point.

[7:42] You can see I've been on that one.

[7:44] This is one that had a lot of conversation in the Capitol Committee and even with board members

[7:53] that sit on the Finance Committee.

[7:55] We talked a little bit about should it be a lesser amount or should we do the full amount?

[8:01] One of the things in Frank could stick to this better than I, but this allows for a license

[8:06] for five years, but it gives not just summary information, but it allows by asset or by major

[8:15] asset detailed information for timing for maintenance and replacement.

[8:23] So it gives one step greater or two steps greater detail to inform purchasing decisions in

[8:30] in the future, which will better inform the board

[8:33] relative to the assets they have

[8:35] within the physical facilities.

[8:37] So not only is it a system much superior to what we have,

[8:42] but it's a five-year maintenance agreement

[8:44] that will live through that transition,

[8:47] but it gives more clear or better asset

[8:50] by asset information for future capital discussions.

[8:55] But I butchered that.

[8:56] That's pretty good.

[8:58] Okay. Thanks, Frank. Can I just ask what control is?

[9:03] That is a control account at overseas. Frank, you can correct me on this too.

[9:08] I kind of overseas any other weeks that Frank may have. Do you want to clarify that?

[9:12] So, large unexpected repairs that pop up examples, the jiller that came out of the footprint.

[9:21] Without that control account, we would have to come back to the board

[9:25] and ask for money to be able to take care of that, the media issue, the emergency type stuff that we're not planning on replacing but yet it gives out we need to replace it at it.

[9:39] Okay.

[9:40] Okay.

[9:41] When we're doing the re-key, that was my next topic.

[9:45] Yeah.

[9:46] Maybe in March.

[9:47] Thank you.

[9:48] So I think it's Coach.

[9:50] Yeah.

[9:50] Anyway, so I think is this going to be batch keys or this is complete re-key, right, Frank?

[9:58] Yeah, so this is all just physical.

[10:00] That's an all-convenient story of that.

[10:02] We use a security keyway that's specific to an outline school district,

[10:06] splitting into three separate entities.

[10:08] Now we're going to need to create a new key.

[10:11] We're going to create a different mastery.

[10:12] We have three of those in school districts.

[10:14] Yeah, well.

[10:17] Okay.

[10:20] Next part is technology communications and new district requests.

[10:23] The technology requests are really, the categories are very similar

[10:27] for what you've seen in the past for those.

[10:29] They're just a little bit, with technology, these that are at the top of this train,

[10:35] that first section is alpine overall, the technology requests for that.

[10:40] We also have, in the middle of their communications requests for aptity,

[10:44] aptity was implemented this year, and so this is just ongoing licensing

[10:49] for after-g. It's been, again, I could have reached to that, but I think it's been something

[10:55] that's been necessary as we roll into this split as well. And then to create three strong

[11:02] districts, we have also outlined what the needs are for the three districts with technology

[11:07] and is, they relate to that district. So those are the amounts that our technology team has

[11:12] calculated for that. And then at the bottom, new district capital allocations were proposing

[11:18] to have 10 million go to each district,

[11:20] each new district so that they can choose

[11:22] how to use that 10 million.

[11:24] And it's just, I put a goal across the board

[11:27] for less than three to see.

[11:31] All right, these are the requests.

[11:34] And next are the requests that are funded

[11:35] from other sources.

[11:37] The first one goes back to the least revenue bond

[11:40] that you asked about ADA.

[11:43] The funding for that is coming from the building fund reserves.

[11:46] And so we're earmarking that for that purpose.

[11:50] that bond, again, is used for the construction element

[11:52] during the high school in Lake Mountain School District.

[11:56] The male delivery, the new, they requested a new male man,

[11:59] 45,000.

[12:01] This is funded from surplus revenue from the warehouse.

[12:05] The old male man was to replace the Kia 2013 Kia Sedona.

[12:10] It's just part of an ongoing effort to keep the fleet

[12:14] at a good age.

[12:15] and this vehicle is right now servicing the entire history.

[12:21] So once we get another new one,

[12:23] that means we have three newer vans available to divide

[12:26] between the three different districts

[12:28] and that they all have a good thing to get the jump.

[12:32] That's right.

[12:34] So, and then the other part of that is just trying to recycle

[12:38] that income is selling the Sedona surplus off.

[12:45] Okay, and then the next slide, again, goes to the remodel part of the facility's request.

[12:51] That is part that we felt like is reasonable to also pull from the building fund reserves.

[12:58] That portion of that, as you can see, also on Frank's prioritize sheet, that 2 million

[13:04] is towards the Lake Ridge Jr. remodel phase 4 and 5, that's the 1, 2, 3, 2, and so on.

[13:11] And then this one actually is a repeat from last year, I think, we didn't get it done

[13:15] And in time is to reconfigure some work at the warehouse.

[13:20] There's a part in that area that experiences pooling water

[13:24] and it freezes and becomes a safety hazard in the winter time.

[13:27] So you're trying to reconfigure that.

[13:30] Again, that comes from surplus revenue

[13:31] that has generated that warehouse.

[13:34] And then there's just a small portion

[13:36] of that work order and asset management system

[13:38] that we're pulling from the building fund

[13:40] is to stay within the revenue that we're projecting.

[13:43] And again, the new district capital allocations also

[13:46] point that from the building fund reserves.

[13:52] If additional revenue becomes available,

[13:55] these are just thoughts to increase the building fund

[13:58] that would eventually be divided amongst the three districts.

[14:01] And then, I haven't seen this happen, but I'm sure it could.

[14:05] The DVC come back together and come in to make further

[14:08] budget recommendations on how to move.

[14:13] Thank

[14:17] you.

[14:18] You're welcome.

[14:19] Just a quick question, I mean in the technology part and the breakdown about how that's

[14:27] the three districts have surprised that the amounts are so close, give it that two areas

[14:37] don't even have a computer hub, so I'm just surprised that they're close.

[14:42] Yes it is interesting how that came out.

[14:45] Right here in the long run.

[14:48] There are systems.

[14:51] Can you stand up to space?

[14:53] So a lot of those numbers are for the triplicating systems.

[14:56] We will have in all three districts our core technology systems.

[15:00] There are a few more dollars, the ballot can relate now, just because we started to build a district office in the middle of today. The triplicate is like you're doing right now. Our hope is to help out time culture, help teachers be used in the technology that we want them to have technology that they're used to using. And so our plan is to triplicate our core systems and then meet with future boards and talk through what that might look like.

[15:30] Okay.

[15:33] Thanks, Sarah.

[15:36] Any other questions?

[15:40] I just really appreciate this sheet. I assume that

[15:44] Frank's really helps to see where the projects are taking place. I don't know if I can

[16:00] I'm going to point

[16:06] out two things on that sheet to, there's a backside so if you

[16:11] print that over, there are a couple items there as well, so I just want to make sure

[16:15] that those items got a little love and attention. But as we talked through this, both in cabinet

[16:22] and with our operations team, just kudos to Eric, Frank and our ops team. We try to look

[16:29] really hard at potential schools that might be considered for future boundary study or

[16:36] consolidation and we try to screen those expenses to say that don't spend money in areas

[16:43] that we may not or we may want to reconsider down the road or reinforce and consider.

[16:49] So the team really did a nice job in trying to look at that as well to make sure that we're

[16:55] not spending dollars that they may not be fully utilized or fully used and that was something

[17:01] that this board has done in years past with value elementary as an example we look at

[17:07] that and again the team did a great job trying to look at those types of things to say let's

[17:13] get our dollars as far as we can and and not spend them that will be that we won't see the

[17:19] value for those expenditures. So again, kudos to the team for that review.

[17:30] And I think unless there's

[17:31] no other questions, I think that concludes our report on the capital budget. And later tonight,

[17:39] you're going to see a item on the board agenda for tentative approval, which is consistent, so that

[17:46] we can move these things forward and get some work done by the time school opens in the fall.

[17:57] here. Thank you for, I don't know, I guess, I wish that our community

[18:02] large understood the work that you do all day, every day, all year. They call

[18:06] inmates in this massive project. So, and, and the texture

[18:10] appreciative of the way it's like you try to one up yourself like we don't even

[18:13] have to like ask for it. It's just everybody's trying to do better than they

[18:16] did the your work. So, thank you for all your efforts and we are adjourned and

[18:20] It's important to me.

[18:21] Thank you.

Alpine School District Study Session

Transcript