July 3, 2024 at 7:30 AM - Budget Committee Meeting

Description:  The purpose of this agenda item is to discuss whether we will be making a fund 73 payment for 2023-24. We have until July 31st to make this payment. Administration will share the pros and cons to this approach at the meeting. 

The budget committee recommended a payment of $400,000 for 2022-23 fiscal year. The actuarial calculated contribution is $668,817. Please see attached for information on this calculation. The fund 73 beginning balances were $7,243,648.89 (HRAs in employee's names - cannot be used) and $1,277,921.23 (funds not committed to employees). 

The district payment for 2023-24 for post-employment benefits is $507,406.12. Our options include:
1) Funding the $507,406.12 entirely from the $1,277.921.23 (fund 73)
2) Contribute the entire 2023-24 payment ($507,406.12) from fund 10
3) Contribute the entire actuarial calculated contribution of $668,817 from fund 10 
4) Some level of balance between option 1 and option 3

Option 1 provides the best fund balance option for fund 10, while decreasing the fund balance for fund 73. Options 2 through 4 will reduce the fund 10 fund balance. A concern with reducing the fund 10 fund balance is the future borrowings related to the November 2022 referendum and the potential for a negative rating adjustment. An option to consider is to recommend option 1 at this time and reassess fund 73 after the completion of the November 2022 referendum borrowings. In addition, annually budgeting for this expense would be a fiscal benefit moving forward. 

Description:  The purpose of this agenda item is to discuss the next steps in the 2024-2025 budget process. Attached please find the budget timeline. Please note that the Third Draft of the Budget will be presented at the regular July Board Meeting.

Description:  The purpose of this agenda item is to review the third draft of the budget for the 24-25 school year. I have attached the third draft of the budget for your review. Please note that the third draft of the budget is based on the following:
1. The $0/student increase in the per pupil categorical aid, with a $325/student increase in the revenue limit formula
2. The personnel cost line includes an inflationary salary increase of 4.12%, implementation of the teacher and classified staff compensation systems at 2%, a 0% increase in dental insurance rates, and a 5% increase for health insurance rates, and transportation.
3. The capital maintenance projects are funded from Fund 49
4. The thirdd draft includes an increase of 11.5 FTE, as outlined on page 13 of the document to include the positions approved in May.
5. The debt service fund includes an estimate for the remaining debt that needs to be issued from the $175 million referendum.
6. Budget adjustments and revenue increases per the memo from the April budget committee meeting. (High cost special ed aid, fund 80, and flow-through grant)
7. Updates to the gift fund (Fund 21)
8. Updates to building/department revenue accounts and corresponding expense accounts
9.  Updates to the community service fund (Fund 80)
10. July 1st Aid Estimate, which changes both state equalization aid and the property tax levy.
10. All of the remaining budget requests have been placed on hold at this time.

The final draft will be presented in October.

Please let me know if you have any questions on the third draft of the budget.

Description:  At the June budget committee meeting, the committee heard an overview of the Data Wrangler system and what it could do for the district from Jim Koeppe, President. The committee made a motion to recommend approval to the June board meeting 2-0. At the regular June board meeting, the discussion was tabled due to a concern over the length of the agreement. Please find an updated agreement attached. Data Wrangler is willing to extend a 3-month trial. We would have the opportunity to review the results/reports before making a decision on the length of the full agreement. We appreciate the flexibility to have a 3-month trial and administration is recommending approval.

Description:  We are bringing this agenda item back from the June committee meeting. The purpose of this agenda item is to review the process of locking in 50% of our natural gas volume for January through March. Attached please find a report that shares the results of this process and compares it to the market rates that we typically purchase through. You will see that overall financial savings were accomplished by the locking in process.

Administration has also attached information on future pricing. We are seeking feedback from the committee on the topic of locking in rates versus purchasing at market rates. Administration would recommend focusing on the November 2024 through March 2025 time frame as this is when the majority of our volume is purchased. 

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