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>> calling this meeting to order, please stand for the pledge. >> I pledge allegiance toll flag of the united states of america and to the republic for

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which it stands, one nation, under god indivisible with liberty and justice for all.

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>> checking in for public comment. We do not have any currently. So moving on to the next item and also just to note as we have changed roles.

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just want to reenforce where we stand as far as public comment. So before, I would like to take

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a moment to review our proceedings in general. If you plan to speak on a

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posted agenda item, you should have registered electronically using the computer in the back

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of the room. Registration closes 5 minutes before the meeting begins.

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each speaker is allotted up to three minutes and may speak only once on the same topic.

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please always direct the comments to the board as a whole. We also ask that all remarks remain respectful. Statement that's are

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threatening, illegal obscene or vulgar are not permitted. It's my responsibility to

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enforce these proceedings. This may include stopping the speaker if comments become

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repetitive or fall outside of these guidelines. Thank you.

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3.01 open. The 3.02. Is do have a motion to approve

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the board of finance officers. >> move to appoint the finance officers as presented.

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>> all those in favor say aye. >> aye. >> those opposed says nay.

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passes. I'll now close discussion and call the question which we have

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already done. All those in favor, we passed. Moving on to 3.03 board

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investment and indicators. Presentation by tim brown. >> good evening, members of the board, this is our annual finance update meet  ing. Part of the requirement from

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the do-ab group. So sif a short presentation for you today to go over some of

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the details as our statutetory require. Jeff if you don't mind bringing

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up the presentation, that will be great. You okay just sliding through. Thank you so much. So part of the requirement of the annual board of finance is

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to go over the investments, any interest that we've earned and then take a financial place.

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I'll start with the investments. All of our money is held at credit weis credit union which

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does earn a interest rate. That is not all money that goes into the education fund.

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as of course money for projects or g.o.bonds those have to live in the funds by rule.

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so all other liquid assets, do earn interest and that money goes into the education fund.

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so in 2025, we were fnt to deposit 4.6 million dollars from those financial funds held

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at every weis credit union. You can see as our interest rate is tied to the federal

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interest rate, it did drop, it is still very attractive interest rate.

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one popular option is trust indiana, I pulled it today and it's about 3.6 percent.

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today's rate is 4.24 so still very attractive rate that's why we maintain our funds in that

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fund. Part of the requirement is also to disclosure annual service

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charges. You can imagine the number of transactions that go into the

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credit union, so just shy of 40,000 of annual service charges when you net that out,

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there is still a significant gain with where we're housing them.

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another requirement is to list the financial institutions if we wanted to receive another

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additional quote. We're comfortable. We don't intend to seek those

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out as we're comfortable where we are. The meat of what I want to

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present is coming from the distress do-ab these are the fiscal indicators that we're

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required to report. So this came into law five or six years ago, where school

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districts were required to layout their finances. I will tell you a flaw in what

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I'm going to present, this is stuff that ends in calendar 2024. This is old stuff so. What I'm going to do is spend a little time on what I'll call the old

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stuff and meet the statutory requirement and spend more time in the 2025 that paints the

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picture of where we are today. So everything that I'm going to show you, ends, at least

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initially before the break at the end of the calendar 2024. So when it talks about our

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daily attendance, that's the 24-25 school year. Of course we're in the middle

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of the 25-26, I'll highlight when I go into the presentation. We're talking about the year

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worth of data here. Just some basic information from the 24-25 school year.

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you see our student count, over 20,000 students. Our assessed value in the

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population in our community. Moving to the first of many slides and again do-ab is the

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group that puts these out. These are readily available. There is a written report that

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is provided with today's presentation and the link you can search the school district

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and see all of these reports. Click on the bars and the data and see that information.

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but what I poipt out you see a steady decline on the information.

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there is a steady decline including into the 24-25 which is on the screen but also the

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25-26 school year. A we talked before, we're down to 400 students of october 2024

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to fall count of october 2025. I hope to report some good news the next time we get together

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with the second count hoping that number is a little higher than it was back in october but

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that is yet to be determined. No new news, you heard me say this many times.

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the next is a multi color graph and again if you go to the other site, you can have other

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bars but I've isolated the main funds which is education operations, operating

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referendum and rainy day. What you're going to see here is, the fund balance at the end

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of calendar year. And so you see some rising bars there in orange in particular

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which is the education fund. It was green before, cause it used to be the general fund so

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is the green translates to orange if that's not confusing enough. And you see a big increase in 23-24 and I want to make sure you hear me talk about this.

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if you hear at the end of the 23-24 school year, we had 29 million that should have been

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paid out of the education fund but there were no appropriation to see do that and the team

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that was here at the time under the leadership and partnership of mr. Maybies and sesly

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current director of business, they spent hours and days really, getting this right and

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closing the books in 2023 in march and april of 24. So what that looks like is an

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influx of finances that really should have been expenses but then got pulled into other

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funds to be able to just close the books. Then at the end of 2024, a cup

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of things happen. One of those things is, we're still reeling from those

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actions that have taken place before. But then we get a dump of 2.3

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million dollars into the education fund that used to be curricular materials.

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all schools were required to put that at the education fund. So that looks like an increase

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revenue when in reality it was money that was allocated for curricular materials.

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the other thing that happened at the end of 2024, we took a pause in all insurance at the

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end of the december because we were waiting on the collective agreement and have open

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enrollment. So roughly $200 in insurance premium expenses didn't come

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out at the end of 24. There is a couple of reasons why that bar is a little bit

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higher. There is a nice increase in the operation and a big part of na

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is that taxable bond that we use to pay our bus leases. So one of the things that I had

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done when I first arrived was to get permission to do that. And that helped to get a little

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bit of support that the operation fund desperately needed.

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you see that dark tealish line, that is is the lowest it has been in the ten years that are

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on the page here. Keeping, going ahead, is should say, these are two debt service

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fund, debt service exempt and traditional debt service, not a lot to report here.

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cash is pretty stable. Obviously we keep a little cash to support the debt payment

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that's we have to make. >> can I just a quick question with the last comment you made

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with the bonds. So between 23 and 24 you see that's really really tiny in 23

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and then large in 24, you're saying that is because we accepted a bond?

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>> yes, in 2024, we sold a taxable bond to pay for previous bus expenses,

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essentially to replenish the operation fund and that's why you see is the jump from the

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short bar to the lower bar in 24. >> thank you for that clarity.

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>> no problem. One more jeff, would be great. Thank you so much. This graph shows the comparison of revenue versus expenses for the entire year.

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green being revenue, blue being expenses, the bar that you see in the middle is overall cash

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balance of all funds and the, the yellow bar is the deficit or surplus.

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when we look at this, there is a little bit of excitement thinking wow, in 2024, there

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was a surplus at the end of the year which is a bit of positive new but the reality is s we

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know woo is coming in 2025. As we'll talk about that surplus did  replenishes and

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the other goes away. So I want to be clear that what I talked about, looking at

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december premium holiday essential, those are all factors that makes this look

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artificial better than it really is. And again, what is much more important is to look at 2025 which we'll talk about in a moment.

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ed next graph, if we did not receive any revenue, we would be able to pay 29 percent of

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the bills. Just another metric how stable your funds are and the

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necessary to pill your bills. It's not likely that we would never just get revenue even in

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difficult times but this is a metric that is used to show that.

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essentially comparing balance. And last but not least on the ending of 2024s these are our

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various sources of revenue. The biggest line is the blue color there h that's our state

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dollars, that's tuition support. The property tax, that you see in kind I'll call it a mauve

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color, these are our biggest sources. Referendum and blue and you see

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debt in green and then some other sources of revenue like textbooks, pretty consistent.

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obviously an increase overall. But what I call sections, and those stay relatively similar

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as you go through. And then actually one more, I'm so sorry.

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this is all about our operating referendum and this is an interesting graph for us,

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because remember in 2024 that was the first year we had our new rate. So the amount of revenue that we had coming in to the operating referendum fund was

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different than it was in 2024. And what you see in yellow was the percent of all over revenue

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that this fund provides. So in 2024 it was down to 3.6 percent which is the lowest

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that it had been in 2016. That dropped in rate overall and then the actual penny did

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impact the amount of revenue that came in to the operating referendum fund.

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any comments about the ending of 2024? Questions there before I talk

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about 2025? Great thank you so much. So, I think this is just

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valuable portion of the discussion as any. And this is not part of the

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do-ab requirement but this paints the picture of where we're at right now.

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if take a look at the next slide. I want to explain what we have

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here, on the left hand side, that access represents the revenue and expenses for the

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six years that it are on the graph so. Whether it goes from negative 25 million to 175

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million that represents the green and blue. The ending cash is the darker

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blue line and it's represented with the right-hand access. So the next three

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representations we're going to look at, use this same sort of strategy.

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so what we talked about in 2024, that the education fund, ending cash was close in this

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case of a bit of a surplus in 2024, look what really happened in 2025.

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and this is the part that we want fob very aware of. So at the end of 2025, we spent

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a little over 3 million dollars in our cash balance. So we dipped into our savings,

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said in a simple way. In addition to that, what is not incorporated here is is the

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little note that you see at the bottom. We have over 1.4 million

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dollars in incumbrance, that's the high number. And the reason is we had some

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textbook adoption things that took place in 2025 and without interest we differed it to a

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two-year plan. So there is a million dollars in textbook expense that's we

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know we are going to pay that are encumbered in the books. So if you take the a little

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over a million and 1.4 that is money that is going to go out the door, we are, we are

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essentially committed to spending a little over 4.5 million in cash in 2025.

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in 2026, now, we go out to a more of prediction this is based on budget.

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2025 are actual, those books are done. This is really what happened. In 2026, we're looking at projected budget amounts, you can see the gap between revenue

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and expenses gets quite a bit wider and that cash balance projection dips down.

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our goal is to try to under spend the budget. We were spot on with what we

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predicted in 2025, we sure hope so under spend in 2026 but if we don't, you can see what

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happens in that cash balance. >> excuse me, before you go further, can you clarify the

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4.5 million. I didn't grasp that very well. >> yeah, a lot of numbers.

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so to your point, I have a lot of numbers. I have another slide, with more

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numbers and if that summarizes that, and after that, if it does not clarify, I'll explain.

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>> okay, thank you. >> moving ahead to the referendum, same thing happened.

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you see a little bit in 2024 what we just reported expenses and revenue were pretty close

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together. But in 2025, real data, we did over spend our cash by just shy of a million dollars, 987,000. So there is a deficit and we've been talking about this, a

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deficit in 2025 projected in 2026. Another 1.4 million if we

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entirely spend the referendum budget that we would be in deficit.

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so spending down that cash. This is not new information, but now it's confirmed, it's

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codified in 2025 what really happened and then in 2026 what is predicted to happen.

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>> okay, so I'm going to ask again, then, why did we over spend?

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like you just said, we were in the deficit, how do we over spend if we don't have that

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money to spend? How do we spend that? >> so let me clarify.

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we have the money to spend, think of a check anding saving account, we used our checking

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and started to use the savings account. We're eating into that for now.

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we planned the budget within the year and stayed within the budget but it's eating into our

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savings account. >> so these are expenses we had to pay, but because it was not

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in our so-called quote, checking account, we still paid. >> and in our world, that lives

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in one fund but I'm want to make it relatable. To use your term, yeah.

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>> thank you. >> sliding over to the operating slide, operations

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fund, same thing you see happen, you see that big increase in 2024, that was

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taxable bond. Then you get into 2025, we over spent the operation fund as

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well. So there is a deficit and we talked about this a little while. So that blue line, starts to dip.

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we're really impacting the cash that we have on hand. In 2026, again we're talking

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more predictions but this is based on the real budget order. We're expected to spend over

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six million dollars in cash in our 2026 budget if we expend it. Our goal is to always under

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spend the budget but the reality is, times  sometimes it's not possible.

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so I think the take away yes we talked about in 2024 but in 2025, we over spent and were

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projected to do so at a more accelerated rate in 2026. So ms. Tomas's question, I

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think the next slide sums that up pretty well. So let's talk the full year in

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review in 2025. So you see at the beginning of the 2025, our cash balance in

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education was a little over--at the end of the year. We were down to 22.6 million.

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I talked about those incumbrance, the purchase, money is going to go out the

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door, when you combine that in truly available cash at the end of this calendar year is a

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little over 21 million dollars. So said differently, we spent 4.5 million of our savings

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account in 2025 in the education fund. We knew we were spending cash, we talked about the did lemma of spending cash and the things we need today do to right-size

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this, the reality is that's exactly what happened. The real spend is like 3.1 but

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when you put the incumbrances in, which are commitment we were a deficit of 4.5 million

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dollars. Does that help? >> yes, it does partly.

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so my next question and sorry to be so blunt, but why are we spending money that we don't

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have? In other words, I understand if we have a gas bill, we have to

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pay the gas bill. Can you be a little bit more clarify or break down what are

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some of these quote essentials that we are locking ourselves into?

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and why are we not looking to say we're not going to have debt, right?

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is it all employment? Is it other areas? Is it buses? Is it food? Do you see what I'm saying. >> yeah.

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>> what is it that is causing us to be over spent? >> yeah.

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so one thing that I want to clarify, we do have the money but we're spend iting down.

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I want to distinguish between the two. Not having money is --

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~>> okay so are we at a three-month. >> we're not at a three-month

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saving. >> that's why I'm saying, why are we dipping in so much that

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we're spending money in our every day, and I understand that things are needed, I'm not

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disputing that. What I'm disputing is what we're doing to not be in that

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place? >> great question. So on the education, 93 percent

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of the budget, on ot expense approximates in education are people.

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salaries and benefits of people. And so when you look at what things have to be paid, or what

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can you do, you start to make difficult decision to see cut people.

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what funds the education fund? Number of students that attend our district.

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so now we got a number of students dropping, revenue dropping and the challenges of

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supporting all the employees and all the things that come a long with that. Obviously we're through a very difficult collective bargaining process.

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that's people costs. So one of the challenges is managing people costs versus,

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the revenue that comes along with that and when you see declining students, that's a

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tough teeter totter to play back and forth. >> okay, and can you share what

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the other percentage is, if it's--. >> so other things part of the

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education funds, these are your supplies, some of your technology things, not

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replacement of devices, that's is in a g.o.fund. But these are things connected

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to the classroom, supply and just the operation of run aring the --

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~>> and we're committed to these costs now and we're having to pay them and that's

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why we're in a deficit going forward? >> in termds of staffing, yes,

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we are exited to those. >> of course but the other costs. >> our budgets for school buildings are pretty small. >> okay.

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>> so we're down to some bare essentials, supporting what we need to in the district.

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it's not like we're eliminating programs and things like that. >> thank you for that.

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>> yes, the essentials to run the instructional portion. >> thank you.

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>> question, so if we're talking about in a deficit for education, let's also talk

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about the operations fund because we're over two million dollars in deficit on operations fund. >> yeah, yeah. So if it's okay, we'll do

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referendum do first and then go to operations. Great.

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so referendum, at the end of the year 9.1, no incumbrances there, so we're not committing

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in terms of a p.o.to a vendor here. So 9.1 million.

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so you see a deficit just shy of a million dollars. So again, spending down the

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referendum and cash balance. So ms. Thomas point p mostly teachers and as we talked about

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five different buildings. The small portion was a security portion that we included as part of the passing of the referendum. And so, I really am glad ms.

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schooley, you said that because there is been a transfer. This is a teeter totter so you

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transfer more than one and more than one gets out of whack. That's the official term.

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you transfer less and less out of whack. That's why we're trying to find

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the balance and have done so in the last three years. Moving ahead to operations as

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you mentioned, cash balance here, again 14 had the 4 at the end of the year, 12.8.

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there are some incumbrances, real true available cash is just shy of 12 million dollars.

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said differently, the deficit was just shy of 2.5 million. So you put those together in

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terms of really available cash balances and our commitment to spend on those purchase those,

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those incumbrances, we have over spent the 2025, let me say that differently, we have spent

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down our cash balance by 8 billion dollars. We did not over spend the budget. We stayed within the budget we predicted, the budget because

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those expenses really exist. >> and did you share, I apologize if you missed, what

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our new cash balance is as of right now with that negative 8? >> so I'm looking at the three

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main funds. If you go one slide, you can see the actual cash balance at

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the end of 2025, that's the second line. The third, fourth line is truly

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what is available in cash because we committed to that incumbrance line.

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so to directly answer your question, 22.675 in education and scrolling down to

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operations 12.8. >> so there is moneys there but that's what we are negative in.

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that's what we spent down? >> yes. So think checking and savings

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again. So we spent down two million. We still have 12 million there,

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but that money obviously can go pretty quick. >> sure.

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>> operations and average month is 5.6 million dollars so, you can say there is a couple of

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months there, so that's a decent number until until you continue to spend the way we're

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spending. >> your presenttion is informative, buzz I kept

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hearing red, read, but we're in black. It's not great if we keep on going. But we are in the black on that number and same with each of

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them, correct? >> we have money in the savings account but we're spending.

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>> just want to make sure. >> and how do you determine how much you want to the cash

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balance to be? >> good percentage is 15 percent that you want to

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maintain. The scary part, if I had to use that term, two are connected to

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senate bill 1 activities. The declining a v is going to impact operations, the

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homestead credit that is right now split between debt and operations which will likely go

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to all debt in 2027, that's a bill na is in hand right now. That's going to be impactful to

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this. The other piece, the referendum, the money that we thought was coming to the referendum is not because of the av drop so while you may

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have a cash balance that is appropriate there, the fear is how fast are we going to

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deplete that with unknown a vs. >> not only the a v, but hasn't there been a cap on how much

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the referendum funds will be used with taxes? >> it's all based on the rate

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with that point 1995. The challenge is the a v is schedule today drop.

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so what we thought we would get with 1.995 is not what we're going to get.

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so this when this district went out and thought, av is going to continue to grow, now it's

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going to be a drop in some cases of 3 or 4 or 5 percent. What av may be next year is and

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mr. Schumaker is here who is going to talk about our g.o. Bonds it's still a little bit

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of a guessing game. >> maybe is it on the property tax cap? Is there a cap there? That there is a certain amount? >> there is individual circuit

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breakers. I'm not sure that's what? >> I could have sworn there was

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a part of legislation that there was a cap that we can use. So obviously, misunderstood.

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>> I think it's just capped by the rate that we've established to the voters.

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>> all right, voters. >> can you also clarify. I noticed uz said that the

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referendum the people was mostly teachers. >> yeah, so that's any great

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question. That's any thing connected to the instruction buildings.

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so that would be our teachers, all other schools are there. Our instructional assistances,

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technology staff in the building. That would be our assistant

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principal, deans, counseling anything connected to the instruction in the classroom

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that lives in the education fund. >> okay, so where do central office? >> great question. >> anybody not directly

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connected to the classroom, lives in the central office. Technology staff that are not

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in the building, those folks live in operation. Just like maintenance does,

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those folks that are critical to the needs of the school but not directly in the instruction

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of students. >> thank you. >> you're welcome. So last slide on this presentation is looking ahead to 26.

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we've already through the grass see that we are scheduled to continue to deplete our

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reserves. So is the on going cost saving initiatives that are well in

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place and continue to be a point of emphasis for our teams will be the ways that we spend

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down or spend less in terms of cash but the reality is, we will still absolutely spend

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down the cash balance in 2026. So when we look to, cuts of positions, I think that's going

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to be an important piece here but it's not just that, it's the operation side as well.

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I will say, maybe it's continue the right way to say it. The low hanging fruit.

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meaning negotiation of contracts, work withing vendors, we're doing that daily

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and crazy. And when we get a contract we're renegotiating.

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the biggest cuts come in terms of people and they have a biggest impact but there is a

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very different component with that. But will be necessary moving

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ahead to 26-27. >> can I ask a quick question. >> sure.

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>> about some of those costs saving initiatives. Is there a plan to have a task

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force or committee to kind of gather more ideas around those initiatives?

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>> yeah, we've definitely thrown that out and what that looks like.

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I'll tell you our central office team is working aggressively in that space.

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and making those, you know, conversations cuts decisions, a formal committee has not been

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established to brings na all entities. I know that's something that the district has done in the past. It is not formally been

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established at this point. >> any further questions or comments from the board?

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>> just one more, I do know that, the teacher's association brought out a list of

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suggestions, to the collective bargaining and that was not included in collective

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bargaining is that something that is going to be reviewed during this look ahead? >> one of the things that was really sort of, realistic in that situation is many of those

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things were actively in progress and taking place. Some are amazing suggestions

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that are already in place and in the work. So to say that those would all

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be evaluated and considered, 100 percent. We absolute slaoe did that the

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minute we got it. But it was sort, I don't know affirming to be able to go down

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the list and say, yep, yep, yep, yep, those things are happening.

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the hardest part is it's not instant gratification, if we do a, tomorrow are--these are

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things that take time. But to answer your question, absolutely. >> was that list ever shared publicly? Is that something that tht

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public is able to see? Or is that through internal? >> I think it was protected in

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the collective bargaining as a part of all the offers. I do believe it was later

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published, you know, publicly with some folks that were shared.

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but we, to my knowledge we didn't share it publicly. Yeah.

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>> I'm not totally sure I remember saying, if we can get a copy if it was public.

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>> yeah. >> moving on to 3.04. Resolution for authorization to

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invest. Again, tim brown? >> we don't need to purchase a

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cd, interest rates are lower. So we just want to give ourselves the flexible that if

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we find a cd that makes sense, that's part of this meeting, that's a thing that the board

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has an opportunity to do. We did not purchase a cd because it did not make sense

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but that's something that we would need support in the case that we need it. >> do I have a motion to approve this item as presented? >> motion to approve as

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presented. >> do I have a second? >> second.

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>> any other question or comments from the board? Seeing that there is none--did

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you have? Sorry. >> so this motion is for 6.02

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and 6.03. >> we have not talked about those. >> we're still on 3.04. >> so this is 3.04? >> correct.

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>> I have a question. Is there a cap cost for cd or no?

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>> not necessarily, you're just given the authority that we would be able to use that as a

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vehicle to make more interest dollars that we are making now. I do not anticipate that we

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would do it. : >> thank you.

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and the updates on the interest that is paid into the cd, how often will we receive those?

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>> again, I don't think we'll need to, purchase a cd but if we do, we my keepser with cds,

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you do not get monthly interest it's all available at the time it matures.

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>> what withs the life of a cd that you're looking at, at least a year?

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>> yeah. And not even, in terms of looking at that and seeing what

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is available, no rate supported the rate that we're making now. I think we would consider you

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know, all options this resolution, limits it to two years.

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>> got it. Thank you. >> closing the item, all those

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in favor say aye. >> aye. >> opposed say nay.

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passes moving on to item 4, adjourn board of finances. Do I have a motion to adjourn

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the board of finance meeting? >> motion to adjourn the board of finances meeting.

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>> do I have a second. >> second. >> all those in favor of approving say aye. >> aye. >> opposed say nay.

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passes, all in favor. Now opening up to the regular meeting, board compensation for

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2026. >> yes, so just, level setting here for the board, during the

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organizational meeting, you approved a 2000 stipend for all board members.

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we just wanted codify the amount that would be provided for meeting. This is the state board of acts requirement that a board action take place in terms of meet

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ing. I think historically, this is what you see before you is what

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has been paid. The goal is to make sure that this is approved by the board.

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>> can you clarify that there is been no changes so they know this is the typical amount for

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a long time. >> like you, I'm not sure how long a time but this is the

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time that has been provided for several years. >> so legislature has had.

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>> 2014. >> this has been in place for over a decade.

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but legislation has made changes so the board has opportunity to increase it.

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but it's my understanding there is not bun board member that has asked to raise compensation

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in any way, so this is something that has been in place for over a decade.

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>> yes, and to be clear, my role is to be compliant with the account.

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so I want to make sure that the amount is approved so when they audit us, we show this is what

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you approved. >> it was not directed at you, it's just that there is been

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conversation so I wanted it to be record that this is compensation for school board

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members. >> I didn't take it that way. >> thank you. >> do I have a motion to approve this item as presented. >> motion to approve this

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motion as presented. >> I second the motion. >> any questions or discussion

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from the board? >> I would like to make a statement. As we know the financial situation of our school districts has been adverse

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affected by various factors including a decline in student enrollment and changes in state

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legislation. Our legislation that's worked to cut costs. I believe that all of us should do our part however small in decreasing costs to the

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district. These efforts support our teachers and administration which in turn support our students. Therefore, I would like to make

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a motion to amend the motion on the floor that changes the to 0 dollars for the year 2026.

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>> okay, do we have a second? >> we just have a motion to amend, I'll second and then

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we'll have a discussion and amendment >> >> correct. >> I'll second. >> any further discussion on

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the amendment made? >> proposal is, we've already aproved a $2000 stipendand

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you're motioning that we reduce our per meeting, the 112 and 62 dollars each time down to 0.

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>> for the year 2026. >> okay. >> so I, I am going to say I

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strongly disagree and a lot of our board members here put time and time again hours into the

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school district. We may not always agree on certain things but there are

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many things we don't get paid for and if you look at, I've served on the board for over

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five years. And biannual salaries it's maybe $20 a day if that.

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I for one, I feel that each one of our board members have worked hard and it's frivolous

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amount of money that I think our time is important. So I would strongly recommend

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leaving it as it is, we have not changed it since 2014 and I recommend that we keep it the

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way it is. >> if you look at rough averages, we've got at least

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one board meeting per month, a committee meeting per month, there is 7 of us, around 20,000

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in total? I think so? And that would be just if we

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have one, so this month we've had two, so 20,000 out of 143 million dollars budget.

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frivolous? I don't know. 20,000. I did see some comments from the community today that it is, for a board meeting, we're paid

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slightly more than a substitute teacher. We're asking everyone to

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tighten their belts, maybe it's more symbolic, I'm a little bit torn.

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but I don't know, are there other discussion. >> mr. Maipz, can you comment

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on what you've seen other school districts do? >> it's a wide variety of

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opportunities. This as a first board I've ever worked for that took per deum.

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I don't know numbers it's based on legislation off of ips. >> and I do know all the school

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districts, mount vernon, all of them have per meeting stipends and some are significantly

393
00:44:20,500 --> 00:44:20,500
higher than ours. >> I think it's really interesting how this has never

394
00:44:25,100 --> 00:44:25,100
been on agenda before and it's on the agenda tonight. And then suddenly, we have an

395
00:44:30,233 --> 00:44:30,233
amendment to amend it. So I think that board members should take that under

396
00:44:36,766 --> 00:44:36,766
advisement on how that has appeared. >> I also believe that if, we

397
00:44:43,933 --> 00:44:43,933
are professionals and we're working with a student body of over 20,000 people, and a large

398
00:44:53,100 --> 00:44:53,100
corporation, this is not even taking a scalpel to the budget. We have not taking increases,

399
00:45:00,500 --> 00:45:00,500
there is time, gas, taken away from our families and our own work and the number of times

400
00:45:05,633 --> 00:45:05,633
many of us work for free, because we care about the district.

401
00:45:10,533 --> 00:45:10,533
it may be symbolic, but it's not helping the district. What we need to do is look

402
00:45:16,766 --> 00:45:16,766
where we're having deficit like operations, like referendum, and start staking scalpels to

403
00:45:25,033 --> 00:45:25,033
them. Especially with the vendors, you can save 20,000 with one

404
00:45:32,733 --> 00:45:32,733
vendor. >> and I would like to amend that any board member have the

405
00:45:37,833 --> 00:45:37,833
right if they choose, can forfeit their compensation and then you have that opportunity

406
00:45:43,400 --> 00:45:43,400
and that would be absolutely fantastic, if that's something that the board member would

407
00:45:48,533 --> 00:45:48,533
like to do per meeting or per month or per year that you do have the opportunity to forfeit

408
00:45:59,066 --> 00:45:59,066
your compensation and that should be per board member decision if they choose to do

409
00:46:04,166 --> 00:46:04,166
that. >> I do want to state for the record, this comes up every

410
00:46:10,300 --> 00:46:10,300
year, because we do have to approve. Especially since the rate did

411
00:46:16,000 --> 00:46:16,000
go up last year, we chose to not increase we choose to stay the same.

412
00:46:22,266 --> 00:46:22,266
this comes up every sing sl year. So this is not unique to be on

413
00:46:26,766 --> 00:46:26,766
the agenda. >> yeah, I remember that agenda item too.

414
00:46:33,500 --> 00:46:33,500
there is item can do ips does, and decided that no, we deserve to be compensated.

415
00:46:41,400 --> 00:46:41,400
I appreciate the discussion but like, dr. Albright, I saw some discussion in the community

416
00:46:49,566 --> 00:46:49,566
today and you know, to hear that out and some concerned that, you know, we're making

417
00:46:56,333 --> 00:46:56,333
too much, we're paying ourselves too much. So, I think it's good to

418
00:47:02,066 --> 00:47:02,066
discuss at least. But it sounds like, I don't know I guess we'll vote and see.

419
00:47:08,500 --> 00:47:08,500
but it's a significant amount. >> by doing some quick math, one meeting a month for 7 is

420
00:47:16,800 --> 00:47:16,800
9408 and one committee meeting for 7 is 5208 which is total 14, 616.

421
00:47:25,800 --> 00:47:25,800
again I would amend the amendment to say any board member would have the right to

422
00:47:31,300 --> 00:47:31,300
forfeit their compensation if they so choose. >> and for the record, I think

423
00:47:37,300 --> 00:47:37,300
that's fair to say. Sometimes we get in repetitive meetings and quick meet

424
00:47:41,666 --> 00:47:41,666
approximatesing, many of us have done that. I think denise can attest that

425
00:47:47,900 --> 00:47:47,900
sometimes we don't turn in everything, like when we were interviewing superintendents,

426
00:47:56,266 --> 00:47:56,266
where we had to short meetings. Many of us did not turn those in for pay.

427
00:48:03,200 --> 00:48:03,200
I appreciate that discussion. >> all right, so following up on the motion of the amendment

428
00:48:10,500 --> 00:48:10,500
that was set from dr. Albright, stating that she wanted make the amendment to remove pay for

429
00:48:19,266 --> 00:48:19,266
all meetings. Suzette, I know you mentioned that you wanted to make a

430
00:48:25,000 --> 00:48:25,000
amendment to the amendment. But I think you need to make a motion.

431
00:48:29,400 --> 00:48:32,666
but we vote on the first amendment first and then follow through. >> so if we're just voting if we approve the amendment. >> yes, that dr. Albright

432
00:48:40,033 --> 00:48:40,033
brought to the table. I'm going to call the roll call. >> susan thomas to waive fees

433
00:48:49,633 --> 00:48:49,633
for meetings for meetings for board members? >> no.

434
00:48:55,100 --> 00:48:57,666
>> sarah? >> no. >> dr. Albright. >> yes. >> latricia. >> no.

435
00:49:02,233 --> 00:49:05,600
>> ben. >> no. >> dawn. >> yes. >> yes. >> motion fails.

436
00:49:12,133 --> 00:49:12,133
>> motion does not pass. >> so then I do not need an amendment.

437
00:49:17,200 --> 00:49:17,200
>> okay. >> thank you. >> correct.

438
00:49:21,266 --> 00:49:21,266
>> I would like to make a motion that if a board member choose to see waive their fees,

439
00:49:26,433 --> 00:49:26,433
they are allowed to do so. Anyone want to second that motion.

440
00:49:31,200 --> 00:49:31,200
>> that's just standard, it does not need to be a motion, you can just do that anytime,

441
00:49:36,800 --> 00:49:39,833
it does not need--that can just happen. >> correct. >> thank you. All right so moving on. --

442
00:49:44,200 --> 00:49:44,200
~>> we need to vote. >> oh, I'm sorry. So I would like to do a all

443
00:49:49,966 --> 00:49:49,966
those in favor say aye. >> aye. >> those opposed says nay.

444
00:49:55,233 --> 00:49:55,233
>> nay. >> passes. 6-1.

445
00:50:01,666 --> 00:50:01,666
okay, moving on to 6.02, 2025 year-end budget transfers. Tim brown again.

446
00:50:09,000 --> 00:50:09,000
>> thank you. This is just standard practice. So when we dedicate those items

447
00:50:20,100 --> 00:50:20,100
to the year, we just have to adjust those. So you have 830 pages, this is

448
00:50:28,466 --> 00:50:28,466
standard procedure, it does not impact money from one fund to the other.

449
00:50:32,800 --> 00:50:32,800
we're not moving dollars, we're simply saying, we plan to spend x and y.

450
00:50:38,800 --> 00:50:38,800
this is again standard procedure and you see the full list there attached.

451
00:50:47,066 --> 00:50:47,066
>> can I have a motion to approve this item as presented? >> motion to approve as

452
00:50:51,900 --> 00:50:54,633
presented. >> do I have a second? >> second. >> any questions or comments from the board? >> seeing that there is none,

453
00:51:00,000 --> 00:51:03,700
closing discussion, all those in favor say aye. >> aye. >> those opposed say nay. Passes in all in favor. >> it's a night of finance,

454
00:51:09,333 --> 00:51:09,333
right. >> yeah, exactly. Moving on to next item, 6.03,

455
00:51:15,200 --> 00:51:15,200
tim brown. >> again, this is standard procedure for us.

456
00:51:19,533 --> 00:51:19,533
remember dollars coming in for property tax funds, meetings and operation sxz referendum

457
00:51:27,333 --> 00:51:27,333
come in in may and june and december. That does create some cash flow

458
00:51:32,066 --> 00:51:32,066
challenges. It allows for temporary loans so we can transfer funds to

459
00:51:38,400 --> 00:51:38,400
allow for cash flow so the fund does not dip below zero. Without having this

460
00:51:44,133 --> 00:51:44,133
availability, we would have to seek out other sources that would have costs involved.

461
00:51:48,766 --> 00:51:48,766
this is standard practice. I'll come back to you in december just like I did last

462
00:51:53,400 --> 00:51:53,400
month to say we're moving that back now. So there are three for approval.

463
00:51:58,500 --> 00:52:02,400
4.5 million dollars to operations. 500,000 from debt service to referendum. And 12 million dollars from rainy day to operations and

464
00:52:07,466 --> 00:52:07,466
again temporary moving the money to the fund we will move it back no later than december.

465
00:52:14,633 --> 00:52:14,633
>> do we have motion to approve all temporary loans as presented.

466
00:52:19,000 --> 00:52:22,633
>> motion to approve as presented. >> second. >> any questions or comments from the board. >> yes, I feel like we are

467
00:52:25,866 --> 00:52:25,866
getting a lot of information post committee meetings and post meetings and administration

468
00:52:37,200 --> 00:52:37,200
buildings. And as board trustee, we need to be involved and seeing this

469
00:52:43,133 --> 00:52:43,133
stuff before it is brought for us to vote on. That is a major concern for me

470
00:52:48,766 --> 00:52:48,766
and will continue to be so. >> I believe do we have a policy that is working through

471
00:52:54,700 --> 00:52:54,700
policy committee now? >> yes, we do. But that is not part of our

472
00:52:59,233 --> 00:53:03,200
policy right now. >> okay. >> but that's the one that you brought forward last time? >> correct. >> it's making its way.

473
00:53:07,900 --> 00:53:10,900
but not yet pass approximated. >> yes. >> okay. >> closing discussion all those in favor of approving the three temporary loans presented as,

474
00:53:16,266 --> 00:53:16,266
say aye. >> aye. >> opposed say nay.

475
00:53:20,833 --> 00:53:20,833
>> nay. >> passes. Moving on information item

476
00:53:28,033 --> 00:53:28,033
7.01, tim brown. >> jeff, if you don't mind bringing that brief

477
00:53:32,566 --> 00:53:35,133
presentation up. This is just an information item tonight. We did get our official order. This landed like we expected it to.

478
00:53:42,500 --> 00:53:42,500
so at the budget presentation, meetings that we had h you see on left, we had a predicted

479
00:53:48,833 --> 00:53:48,833
budget. Remember we advertise high both from. Levee and rate.

480
00:53:54,800 --> 00:53:58,766
but we know that we have a predicted amount that we're expected to get. So you see the budget amounts shift just a little bit. But the thing that I call for

481
00:54:05,200 --> 00:54:05,200
attention that is most important, is we hit the rate. So you see that our overall tax

482
00:54:11,433 --> 00:54:11,433
rate for 2026 is 1.5476 that is exactly what we thought we would hit.

483
00:54:19,066 --> 00:54:19,066
in just a minute, we'll bring the official order up. You will see the official

484
00:54:25,133 --> 00:54:25,133
dental, that's something that we do the budget for but does not fit into the official

485
00:54:29,933 --> 00:54:29,933
budget order. So jeff, if you don't bring in the official budget order.

486
00:54:36,366 --> 00:54:36,366
there it is and this allows it. These are all available for all public entities, you can

487
00:54:43,033 --> 00:54:43,033
compare, you know where we stand in hamilton county and across the state.

488
00:54:48,366 --> 00:54:48,366
one little note, this did increase slightly. I noted that all schools except

489
00:54:52,633 --> 00:54:52,633
for one in hamilton county did see a slight increase in their tax rate in 2026.

490
00:54:58,366 --> 00:54:58,366
so we were certainly a part of the majority in that space. >> any questions or comment frz

491
00:55:04,500 --> 00:55:04,500
the board? >> yes, madam president. Before we move on, I would take

492
00:55:11,700 --> 00:55:11,700
a moment that share a governance that builds on the information that we just

493
00:55:17,033 --> 00:55:17,033
reviewed tonight. It is not a request for action but discussion as we continue

494
00:55:23,200 --> 00:55:23,200
our financial planning work. This is my 5th year serving on the board and over that time, I

495
00:55:29,000 --> 00:55:32,500
ask for and appreciated the financial administration that the administration provides. I waint to start by acknowledging the work of our cfo and the entire team.

496
00:55:37,866 --> 00:55:37,866
the district has had a strong audit that we heard about in the last meeting and staff has

497
00:55:43,466 --> 00:55:46,766
been thorough professional and transparent in the information that they have shared with us. Thank you. That said, I want to pause for a moment and talk about

498
00:55:51,166 --> 00:55:51,166
something that feels less about effort and more about process. Even with the regular reporting

499
00:55:57,400 --> 00:55:57,400
and committee updates, it often feels like the board is learning about financial stress

500
00:56:03,333 --> 00:56:03,333
points after decisions have already been made or after corrective actions are already

501
00:56:08,466 --> 00:56:08,466
necessary. We received information but frequently in a way that is

502
00:56:13,066 --> 00:56:13,066
restro respective rather than predict I have. My concern is not that

503
00:56:19,033 --> 00:56:19,033
information is being withheld it's the timing may opinion be giving the board the

504
00:56:23,200 --> 00:56:23,200
opportunity to provide proactive oversight. As a board our role is not to

505
00:56:27,866 --> 00:56:27,866
manage finances. We don't get into the weeds but it is important to anticipate

506
00:56:33,800 --> 00:56:37,733
risk ask questions early and understand trends before they become urgent. I want to be clear that this is not a criticism of our financial team.

507
00:56:42,066 --> 00:56:42,066
they have done a great deal of work to keep us informed and compliant.

508
00:56:46,766 --> 00:56:46,766
however, it does feel like there may be a gap between what administration monitors

509
00:56:53,666 --> 00:56:53,666
internally and what the board receives that allows us to act earlier.

510
00:56:58,033 --> 00:56:58,033
I noticed this pattern over the last several years and I feel it's time to mention it.

511
00:57:03,566 --> 00:57:03,566
now as we look ahead particularly with a possibility of future referendum discussion

512
00:57:08,866 --> 00:57:08,866
sxz our next bargaining, I believe it is important for the board to reflect on whether our

513
00:57:14,400 --> 00:57:14,400
current reporting structure is giving us the right information in the right amount of time.

514
00:57:19,433 --> 00:57:19,433
my hope is that we can work together to identify what additional forward looking

515
00:57:26,166 --> 00:57:26,166
indicators or context may help the board fulfill its governance responsibility for

516
00:57:32,100 --> 00:57:32,100
proactively rather than reactively. I offer this not as a complaint

517
00:57:38,700 --> 00:57:38,700
but invitation for discussion to be more proactive in its research to support our goals

518
00:57:43,300 --> 00:57:43,300
as the board that is good stewarts of our district spending and operations.

519
00:57:48,633 --> 00:57:48,633
also for conversation on how we continue to strengthen our partnership and our process

520
00:57:54,000 --> 00:57:54,000
moving forward. Thank you again to our financial team and

521
00:57:58,033 --> 00:58:02,033
administration for all of their hard work. >> any further questions or comments? >> yeah, comments. I've told this board for two

522
00:58:06,466 --> 00:58:06,466
years almost, that had the previous administration put this budget upside down and

523
00:58:12,633 --> 00:58:12,633
we're spending our cash down. >> no, no. >> and at that point in time,

524
00:58:18,600 --> 00:58:18,600
we have been bringing updates from our finance team of where we're at which we know, we're

525
00:58:25,966 --> 00:58:25,966
within our budget that the board has approved we have our expenditures and spending them.

526
00:58:32,200 --> 00:58:32,200
but to say that we're not giving people time, we'll answer any question that comes

527
00:58:37,566 --> 00:58:37,566
across your board agenda at any time, it gets published to you three or four days we get to

528
00:58:46,066 --> 00:58:46,066
hear. We have finance meetings, facilities meetings.

529
00:58:50,266 --> 00:58:50,266
we're as transparent as the place has ever been before. So I take offense to the

530
00:58:56,233 --> 00:58:56,233
comment because the comment is directed to me. >> no sir, it's not.

531
00:59:01,333 --> 00:59:01,333
it's the overall process that I hope that our financial teams can do better.

532
00:59:05,966 --> 00:59:05,966
because we're in a deficit and I appreciated the hard work of our financial team getting us

533
00:59:10,933 --> 00:59:10,933
to where we are today. So moving forward, I would like to be more proactive that in

534
00:59:17,100 --> 00:59:17,100
our finance meetings we're not just getting a quick update that there are questions asked

535
00:59:23,466 --> 00:59:23,466
of getting out in a problem instead of staying in a problem. This was outstanding that we

536
00:59:28,566 --> 00:59:28,566
just got from mr. Brown and the team and I greatly appreciate it so we need to stay on top

537
00:59:34,666 --> 00:59:34,666
this. >> having been in the financial committee the last year, every

538
00:59:42,100 --> 00:59:42,100
finance meeting, mr. Brown brought in tracking. What we're anticipating

539
00:59:48,533 --> 00:59:48,533
thinking budget versus actions. So in looking at our income streams also touching on

540
00:59:54,333 --> 00:59:54,333
high-level expenses all of that was brought in all of our budget meetings, every single

541
01:00:00,100 --> 01:00:03,966
one. And all of that has been brought forward and public information. So I disagree with what board member thomas has brought

542
01:00:14,266 --> 01:00:14,266
forward because that has been transparent and this organization that's been open

543
01:00:20,033 --> 01:00:20,033
on one on one meetings for us to have point conversation and even hours on end with some of

544
01:00:25,800 --> 01:00:25,800
us on the board. So I, that has been truly more transparent been this is my

545
01:00:32,333 --> 01:00:32,333
fourth year on the board having served under two superintendents, by far this

546
01:00:39,533 --> 01:00:39,533
has been the most thorough. >> and I do agree but I want us to be proactive more than

547
01:00:47,566 --> 01:00:47,566
reactive. >> one second. I respectfully disagree with

548
01:00:52,966 --> 01:00:52,966
administration also with the tone that they took with board of trustees.

549
01:00:59,500 --> 01:00:59,500
as far as reports that finance has given to tuesday, he does a great job giving us are theser.

550
01:01:06,800 --> 01:01:06,800
but what is not in those reports, is contracts that just disappeared to a broker that

551
01:01:13,500 --> 01:01:13,500
was not commissioned. So there are things that we are not presented especially vendor

552
01:01:19,233 --> 01:01:19,233
relationship that we have to ask questions about and that is coming from the top town.

553
01:01:24,566 --> 01:01:24,566
and I expect in the future that when our administration addresses the board, they do so

554
01:01:29,433 --> 01:01:29,433
in a respectful manner. >> I think it's worth noting that if a few board members are

555
01:01:36,433 --> 01:01:36,433
having these concerns and asking for a policy to be able to attend meetings, that there

556
01:01:42,066 --> 01:01:42,066
is probably an issue that needs addressed and I agree with board member schooley that

557
01:01:49,433 --> 01:01:49,433
there is no reason that that kind of tone should be taken with the board of trustees,

558
01:01:54,266 --> 01:01:54,266
especially in a public meeting. >> I just want to point out, first of all, I think the

559
01:02:03,400 --> 01:02:03,400
exception that there is a tone, there is a streamed and we can watch it back and how this is

560
01:02:08,133 --> 01:02:08,133
going to be characterized and all kinds of places it's going to take an odd turn.

561
01:02:13,266 --> 01:02:13,266
but none of this information is new, we have been presented these moments.

562
01:02:20,300 --> 01:02:20,300
that's why none of us freaked out in how much of a deficit we're in.

563
01:02:27,200 --> 01:02:27,200
we're given every opportunity to discuss finances and talk to people and call tim virtually

564
01:02:34,566 --> 01:02:34,566
anytime or night. They all spend to emails. I cannot think of any question

565
01:02:39,666 --> 01:02:39,666
that I have wanted answered that has not been answered. And again, certainly if we want

566
01:02:46,966 --> 01:02:50,900
to expand, that's fine. I mentioned that there is a policy working through committee now that would expand some of our attendance in other op rayings --operations.

567
01:03:01,333 --> 01:03:01,333
we are not administrators, we are governors. But if there is a question, you

568
01:03:08,266 --> 01:03:08,266
just put out something about a 240 million dollars at  payment that is the first that I'm

569
01:03:15,366 --> 01:03:15,366
hearing about it too. If you can bring it to us. >> it should not be something

570
01:03:20,000 --> 01:03:20,000
that I bring to you. These things should be brought to the board, prior to and not

571
01:03:25,066 --> 01:03:28,300
after and then asking for permission after. Anyway. >> it's a 340 million dollars. >> I'm totally aware of that. You were worried about 112

572
01:03:36,000 --> 01:03:36,000
dollars per meeting. >> I just voted that I was not worried about it.

573
01:03:41,966 --> 01:03:41,966
>> okay, I disagree that we get the information that we asked for.

574
01:03:46,133 --> 01:03:46,133
the reason that policy was brought up is because he had to dig into the weeds and how many

575
01:03:52,700 --> 01:03:52,700
times have I been told no. And you can count the times that I've been told no.

576
01:03:58,633 --> 01:04:02,600
so don't say that I have not been told no, because I know I have. >> I don't of any case other than attending internal meetings which we're working in

577
01:04:09,766 --> 01:04:09,766
a policy about. I understand the discussion and concern, we all want to give

578
01:04:14,033 --> 01:04:14,033
oversight and you know, we're all open to that. But the overriding thought that

579
01:04:18,166 --> 01:04:18,166
I just want to make sure that we understand, is appreciate our team and I think they've

580
01:04:23,133 --> 01:04:23,133
done a fantastic job. >> I think the point has been made and tones can be

581
01:04:32,366 --> 01:04:32,366
interpreted and moving on to 7.02 preliminary public hearing, g.o.bonds.

582
01:04:39,866 --> 01:04:39,866
>> thank you, board members. The final item tonight, we have matt shoe independent maker a

583
01:04:46,366 --> 01:04:46,366
great partner with us as we look to secure g.o.bonds for te 2026 calendar year.

584
01:04:52,500 --> 01:04:52,500
and as a reminder, they support our plan both in facilities and also in technology as well as

585
01:05:02,866 --> 01:05:02,866
smaller building projects and renovations. The projection today that

586
01:05:08,100 --> 01:05:08,100
you'll hear from mr. Schumaker is 40 million dollars in the sale of bonds over two

587
01:05:14,100 --> 01:05:14,100
issuances during the 2026 calendar year. Worthy of note, this is down 2

588
01:05:21,166 --> 01:05:21,166
million when we sold 2 million dollars to support the building projects.

589
01:05:25,766 --> 01:05:25,766
certainly, I can get into specifics but I would like to hand it to mr. Schumaker, he's

590
01:05:32,000 --> 01:05:32,000
kind enough to join us tonight to talk about this. >> I'm going to open for any

591
01:05:38,666 --> 01:05:38,666
members of the public wishing to speak on this topic. May come forward now.

592
01:05:44,433 --> 01:05:44,433
seeing that there is none. Closing the public hearing, I'm going to close and any

593
01:05:48,866 --> 01:05:48,866
questions from the board? >> you want me to do the presentation, first.

594
01:05:55,700 --> 01:05:55,700
perfect. Jeff, will you drive for me. So if we go to the second page

595
01:06:00,300 --> 01:06:00,300
here. So matt schumaker from steve, great to be back with you

596
01:06:06,700 --> 01:06:06,700
tonight. My role is to talk about the financial impact of the

597
01:06:13,000 --> 01:06:13,000
proposed bond issue. You guys have seen this, this page many many times from me

598
01:06:20,700 --> 01:06:20,700
before. This shows all of our outstanding debt obligations,

599
01:06:28,166 --> 01:06:28,166
color coded by bond issue. As always, the majority of your debt is paid off in the

600
01:06:32,733 --> 01:06:32,733
short-term. You do have long term debt but the school corporation through

601
01:06:39,266 --> 01:06:39,266
long-range planning going back many many years has put itself in a position to do these types

602
01:06:44,666 --> 01:06:44,666
of project and pay these bonds very quickly. The benefit of that is as we

603
01:06:49,066 --> 01:06:49,066
always talk about is, significant interest kaofts savings while other schools are

604
01:06:55,666 --> 01:06:55,666
doing these types of projects. They're paying these back, over 10, 15, years you're able to

605
01:07:01,800 --> 01:07:01,800
pay them back in 1 to 2 years. That's a tremendous interest saving.

606
01:07:08,400 --> 01:07:08,400
as we look at this page, you're total obligations is about 80 million scheduled to drop in

607
01:07:17,166 --> 01:07:17,166
half in 2027 and again in 2028 which sets us up for the conversation regarding the

608
01:07:29,600 --> 01:07:29,600
proposed g.o.bonds. This shows the repayment, as tim mentioned you're looking at

609
01:07:34,133 --> 01:07:34,133
40 million dollars as part of this approval. This page is is not set in

610
01:07:39,000 --> 01:07:39,000
stone, this is just for illustration purposes only. We have shown in the light blue

611
01:07:45,000 --> 01:07:45,000
part that would be the proposed repayment of the g.o.bonds. You can see from 26 to 27 this

612
01:07:52,100 --> 01:07:52,100
shows your debt service devy, the devy being the amount of property tax dollars that

613
01:07:58,233 --> 01:07:58,233
taxpayers are paying. For 2026 total debt service levee just over 71 million

614
01:08:05,866 --> 01:08:05,866
dollars. You can see that you can issue these bonds and repay them in

615
01:08:10,433 --> 01:08:10,433
two years and keep that levee neutral. Again we'll talk about tax here

616
01:08:15,100 --> 01:08:15,100
in a minute. But when I say levee, that's the amount of taxes that the

617
01:08:20,366 --> 01:08:24,300
taxpayers are paying for the bond issues. The current idea is to keep that level from 26 to 27 and not increase that. As you look forward, we'll be

618
01:08:29,166 --> 01:08:29,166
having this conversation most likely again next year. You'll be in the same position

619
01:08:33,400 --> 01:08:33,400
next year getting these paid off quickly, giving you guys a lot of long term flexible when

620
01:08:39,500 --> 01:08:39,500
you look at the bond projects. The last page is a ton of numbers, I'll walk through this

621
01:08:45,666 --> 01:08:45,666
and I'll be happy to ask any questions that the board may have.

622
01:08:51,233 --> 01:08:51,233
so maximum amount of the bondscious this is not a not to exceed number.

623
01:08:55,700 --> 01:08:55,700
you can borrow any number up to 40 million dollars. You cannot go over 40 million

624
01:09:01,066 --> 01:09:01,066
dollars number. Maximum term of the bonds, we've listed this at 10 years,

625
01:09:06,033 --> 01:09:06,033
it is past practice to list this a little bit longer than what we think we need.

626
01:09:11,533 --> 01:09:15,200
things change. We're not issuing these bonds tomorrow. This gives you the flexibility of issuing bonds and repay them. All of these parameters are set

627
01:09:23,533 --> 01:09:23,533
up for maximum flexibility so you can make the best decision if and when the bonds are

628
01:09:28,266 --> 01:09:28,266
issued. Interest rate, we listed at 7 percent.

629
01:09:32,500 --> 01:09:32,500
again, we talked about this in the past this is conservatively high, very conservatively high,

630
01:09:38,466 --> 01:09:38,466
if you were to issue these bonds, you would be in the 3 to 4 percent range, we're not

631
01:09:45,066 --> 01:09:45,066
issuing them today. Things can change, we want to pay that so we don't have to go

632
01:09:50,100 --> 01:09:50,100
through this process today. Estimated total interest costs, this is calculated based off

633
01:09:57,466 --> 01:09:57,466
the 7 percent over ten years, so it's listed at 18,190. If and when these bonds are

634
01:10:05,033 --> 01:10:05,033
issued at a lower interes rate and paid back, that interest costs will come down

635
01:10:09,600 --> 01:10:09,600
significantly. So this is just the maximum or worse case.

636
01:10:16,100 --> 01:10:16,100
the annual plus interest this is the highest payment you can have in one year.

637
01:10:20,833 --> 01:10:20,833
this would be if you pay it off in one year. The maximum aggregate principal

638
01:10:27,633 --> 01:10:27,633
plus interest that's the most you can pay over the life of the bonds.

639
01:10:34,900 --> 01:10:34,900
there you can see you're paid 2026 current budget year combined at debt service fund

640
01:10:45,733 --> 01:10:45,733
levee is 71,243, 710 that equates to a debt service tax of 8.5885.

641
01:10:52,133 --> 01:10:52,133
I'm showing you the budget order that matches. As we talked about the pay 27

642
01:10:57,500 --> 01:10:57,500
so next year's budget we estimate that levee to stay flat at 1,243,710.

643
01:11:06,633 --> 01:11:06,633
for purposes of this resolution, it is past practice to assume no change in your

644
01:11:12,533 --> 01:11:12,533
assessed value. Tim alluded to this. Changes of senate bill 1, we

645
01:11:16,700 --> 01:11:16,700
think that there is a pretty good chance that the assessed value does actually go down for

646
01:11:22,733 --> 01:11:22,733
pay 2027. So we've listed that the tax rate would remain neutral.

647
01:11:27,666 --> 01:11:31,433
we do think that there is a chance that it actually increases. Going back to my previous comments, even if that tax rate were to increase, no one will

648
01:11:41,366 --> 01:11:41,366
pay more as part of this project. If if the tax rate going up

649
01:11:46,366 --> 01:11:46,366
we're paying more. Senate bill 1 is flipped that on its head.

650
01:11:50,666 --> 01:11:50,666
we talked about this in the past. So we could see the levee stay

651
01:11:55,400 --> 01:11:55,400
same but the tax rate go up. We have not seen the assessment value go down in this

652
01:12:04,100 --> 01:12:04,100
community, likely ever, certainly in my career. That may change.

653
01:12:09,900 --> 01:12:09,900
but again the dollars is going towards this project are not expected to change year to year.

654
01:12:15,833 --> 01:12:15,833
and we can talk through that more if you have questions. Service tax rate, we talked

655
01:12:20,966 --> 01:12:20,966
about that, and listed it at 0, it may increase but the dollars will not.

656
01:12:26,766 --> 01:12:26,766
the last two items per statute, the percent debt service divide 1.06 percent and then your

657
01:12:38,066 --> 01:12:38,066
outstanding overlapping debt this is your debt plus the other units that the taxpayers

658
01:12:42,900 --> 01:12:42,900
will pay as a percentage is listed at 5.46 percent. Is know a ton of numbers right

659
01:12:49,066 --> 01:12:49,066
there. Questions that I can help answer while I'm here?

660
01:12:53,166 --> 01:12:53,166
>> any questions from the board? >> I just want to thank you for coming out in-person again.

661
01:12:58,766 --> 01:12:58,766
we've had a lot of talk about vendors and trying to save money and doing that thing,

662
01:13:04,566 --> 01:13:04,566
that's a good example of one of our partnerships that helps us out and helps us understand

663
01:13:10,366 --> 01:13:10,366
these things. You do a great job explaining it and I'm not going to put you

664
01:13:15,900 --> 01:13:15,900
on the spot and say how much does your firm charge. I know it's a significant costs

665
01:13:24,833 --> 01:13:24,833
but again we're spending tens of millions it takes a ton of work to go through these things

666
01:13:32,333 --> 01:13:32,333
unless you sit in your seats, you cannot begin to naj what it is.

667
01:13:37,600 --> 01:13:37,600
do you know how long we've been using stevele? >> we had looked back at one

668
01:13:44,666 --> 01:13:44,666
point. I think there was a bond issue, I want to say on onion squirrel

669
01:13:51,666 --> 01:13:51,666
from the 1960s. It obviously has not been me for that long but I've been

670
01:13:56,533 --> 01:13:56,533
doing this for 15 years and I've always, it is been my pleasure to work with the

671
01:14:02,066 --> 01:14:02,066
school corporation. So I appreciate your comments. >> it's always a difficult

672
01:14:06,533 --> 01:14:06,533
thing to balance, a long term relationship versus cost savings.

673
01:14:11,766 --> 01:14:11,766
thank you again. I suppose there is a difficult time, there may I come a time.

674
01:14:19,200 --> 01:14:19,200
we appreciate what you do. >> and I want to echo, since we had a little confrontation, I

675
01:14:24,766 --> 01:14:28,666
want to say 100 percent, we appreciate your work. >> my pleasure. >> I have a question. And to this might be more directed to you as we look at

676
01:14:34,900 --> 01:14:34,900
the buy down and the one to three-year repayment what is is the tradeoff between the debt

677
01:14:44,133 --> 01:14:44,133
pay down and operational reserves? >> and yeah, matt, we can

678
01:14:49,933 --> 01:14:49,933
corespond here. The thing that I think is most important to your question is

679
01:14:56,966 --> 01:14:56,966
we're in isolated silo of debt service. So is the cost of issuance and

680
01:15:01,833 --> 01:15:01,833
the bond comes out of the cost of the bond itself. So obviously, we're blessed

681
01:15:06,666 --> 01:15:06,666
with stevele and the support that they provide. They're not an operation al

682
01:15:13,133 --> 01:15:13,133
fund expense or educational fund expense. But to your point exactly, this

683
01:15:18,466 --> 01:15:18,466
is living in its own silo and debt service. It is not impacting per se the

684
01:15:24,000 --> 01:15:24,000
other funds but I will say, the reason we have g.o.bonds and the reason they're so pivotal

685
01:15:32,266 --> 01:15:32,266
is they take the operational costs that would otherwise live in the operations fund and help

686
01:15:38,933 --> 01:15:38,933
support the upkeep the buildings, without them, we talked about the deficit and

687
01:15:43,133 --> 01:15:43,133
operations, we would not be able to do the things that we need to do that are just

688
01:15:47,666 --> 01:15:47,666
recurring and you can imagine the snow ball a tech. >>--affect.

689
01:15:53,133 --> 01:15:56,933
>> okay. Thank you. Anybody wish to go come forward can speak on the topic. You'll be given three minutes. Seeing that there is none,

690
01:16:03,200 --> 01:16:03,200
closing the public hearing. And now, closing discussion. The board will conduct the

691
01:16:11,466 --> 01:16:11,466
second preliminary determination public hearing at