SOUTH WASHINGTON COUNTY SCHOOLS SPECIAL MEETING MINUTESDistrict 833 / School Board Special Meeting and Workshop
District 833 / School Board Special Meeting and Workshop
Unofficial Clerk's Summary for May 17, 2012
Pursuant to due call and notice thereof, a workshop of the School Board of Independent School District 833, South Washington County, was held on Thursday, May 17, 2012. The meeting was called to order by Vice-Chairman Tracy Brunnette at 6:03 p.m. at the District Service Center, located at 7362 East Point Douglas Road South, Cottage Grove, MN. School Board members present were Leslee Boyd (arrived at 6:16pm), Tracy Brunnette, Jim Gelbmann, Laurie Johnson, Ron Kath and David Kemper (left after item 2 on the agenda). Board member Marsha Adou was absent. Superintendent Mark T. Porter was present.
Mike Vogel, Assistant to the Superintendent for Operations, and Gary Dechaine, Director of Transportation, presented the proposed transportation department budget and service change recommendations. Mike and Gary presented the recommendations.
Budget Adjustments and Service Level Changes Under Consideration
1.Increase the funding level for transportation from 4.85% to 5.0% of the general fund formula. Estimated impact - $150,000 additional revenue
2.Implement transportation department efficiencies for 2012-2013 to reduce expenditures. Estimated impact - $100,000 reduction in expenses
3.Implement a fee to recover a portion of the excess costs for non-mandated transportation to choice programs (Nuevas Fronteras, MS Spanish Immersion, Gateway, and Valley Crossing). Estimated Impact - $144,000 additional revenue. Per the board's request, an analysis was presented of the potential revenue from implementing the fee for service for choice programs using both the Nutrition Services income guidelines for free/reduced lunch prices as well as the Community Education's sliding scale fee structure for K-Plus and school readiness - by doing this, it would reduce the projected revenue by approximately $22,700 annually.
4.Increase walking distances from 1.0 to 1.5 miles for Middle School students and from 1.5 to 2.0 miles for high school students. Estimated Impact - $261,000 reduction in expenses. Per the board's request, the transportation staff projected that increasing the walking distances at the high school level only would result in the reduction of 4-5 high school runs with an approximate reduction in expenses of $40,000 annually.
5.Revise school start times to those identified in Option V on the "School Start Time Options" effective with the 2013-14 school year. No estimated impact for 2012-2013. Estimated impact in 2013-2014 is $479,196 reduction in expenditures. Per the board's request, the transportation staff projected that the district could achieve an annual reduction in expenditures of $322,500 *by shifting the middle school start times 20 minutes earlier and leaving all other start times as they are in the current model.
Current budget projections reflect a $489,804 deficit in the transportation fund for 2011-2012. The June 30, 2012 fund balance is projected to be $556,500. Implementation of items 1-3 above will result in sufficient funds being available for projected transportation department expenditures in 2012-2013 with a projected fund balance then for June 30, 2013 at or near zero. Additional expenditure reductions will be required in 2013-2014 to prevent a negative fund balance in future years. At the May 24 meeting, the board will vote on the various recommendations one by one, with the exception of recommendation 2 (department efficiencies) which appears to already have the consensus of the board. The board will vote on proposal 1(funding levels), 3 (fee for non-mandated transportation to choice programs), 4 (walking distances) and 5 (school start times - both with Option 1 as outlined above, with the additional recommended change to middle school start times, and Option 5 as outlined above). Further discussion on this topic is also expected to continue over the summer months for consideration into next year's budget.
Barbara Osthus, Director of Nutrition Services, presented the first reading of the proposed 2012-2013 Nutrition Services budget. Barbara presented information on the Goals, Budget Assumptions, Statement of Revenue & Expenditures and Fund Balance Summary. The programs offered by Nutrition Services include lunch, ala carte, breakfast, Kids Club breakfast/snack, Kindergarten milk, 1st & 2nd grade snack milk and Summer Food Service.
Budget assumptions include:
•The budget reflects a 0% increase in paid participation and a .6% increase in free/reduced participation. The General Fund enrollment is projected to increase by 1%.
•Valley Crossing Community School (VCCS) and District 833 Nutrition Services will be in the second year of a six year contract - the projected number of meals to be served includes VCCS.
•Nutrition Services is recommending the following increases in lunch prices, in response to the federal law requiring all districts to close the gap between the amount charged for full paid lunches and the amount reimbursed for free lunches.
a.Increase High School pricing by 15 cents from $2.00 to $2.15
b. Increase Middle School pricing by 10 cents from $2.00 to $2.10
c. Increase Elementary School pricing by 10 cents from $1.70 to $1.80.
•School breakfast prices will not change.
"Lunch reimbursement will be $.12 for each lunch sold. Breakfast reimbursement will be $.55 for each fully paid breakfast and $.30 for each reduced price breakfast.
•Interest income is budgeted at $1,000.00.
•$869,099 has been projected as the Nutrition Services chargebacks from the General Fund.
•Commodity usage is estimated at approximately $.2225 a lunch; corresponding commodity revenue has been reflected within the federal aid revenue.
•Nutrition Services does not use money from the Operating Capital Budget for the replacement of food service equipment. $250,000 has been budgeted for this.
•The labor agreement with Local 17 expires on June 30, 2012. Inflationary increases related to salaries and wages have been built into the budget. Benefits have been projected using current FICA and retirement rates. Health, dental, and life insurance projections are based on inflationary increases.
•Nutrition Services contracted with The Amherst Wilder Foundation in SY 2012 to develop a department planning process. The process gained stakeholder input, and furthered Strategic Objective #3 - Performance Excellence of the District's Strategic Plan. In SY 2013, $30,000 is budgeted for full implementation of the planning process. Information gathered will keep the Department on target with customer/community expectations, state and federal requirements, and school nutrition best-practice
•A goal has been set to maintain 10% of the current expenditure level in the fund balance.
Revenue for the 2012-2013 budget is proposed at $7,897,960 while expenditures are proposed to be $8,112,659 for a deficiency of $214,699 which will come from the department's fund balance. The projected fund balance for June 30, 2013 is $992,102. This budget will be brought back to the May 24th School Board meeting for approval.
Ernie Pines, Director of Community Education, and Ellen Casey, Community Education Account Specialist, presented the first reading of the proposed 2012-2013 Community Services budget. This budget was reviewed at the Community Education Advisory Council (CEAC) meeting on April 24, 2012 and will be brought back to them for approval on May 22, 2012. Revenue assumptions for this budget include:
•Levy revenue amounts reflect funds certified in December 2011 payable in 2012 for the 2012-2013 school year. Basic Community Service Levy and Youth Levy revenues are reflective of district population figures.
•Basic Community Education Levy funding is based on $5.42 per capita.
•Community Education will maintain fee levels for all programs. The 1.8% increase in fee revenue is due to anticipated growth in youth program participation. There are no fee increases planned in programming for 2012-2013.
•Revenue projections for 2012-2013 include 14 elementary sites planning on offering Kindergarten Plus (all day Kindergarten). A total of 33 sections with 20 students per section are currently budgeted. However, space availability and participant counts may impact the actual number of sections offered this fall. Spanish Immersion (3 sections) will be housed at Crestview.
•ECFE will be funded at $120 per estimated population under 5 years of age. Funding formula changes will result in a drop in state aid dollars offset by an increase in levy dollars received.
•The decrease to School Age Special Needs levy is due to a prior period levy adjustment payment in FY12 to meet actual expenditures reported.
•Preschool Screening anticipates in increase in early childhood screening for 3 to 5 year olds.
•ABE, School Readiness, ECFE and Youth program grants will be completed by June 30, 2012.
•Community Education anticipates continued financial support from the Lifelong Learning Foundation.
•Interest income is budgeted at $10,000 as Community Education continues to spend down fund balance. The proposed interest income budget is also impacted by a decline in investment interest rates.
Expenditure assumptions for this budget include:
•In the 2012-2013 school year, expenditures captured in administration will be allocated directly to specific Community Service programs at the end of the fiscal year.
•In the 2012-2013 school year, Community Education anticipates an indirect cost recovery of approximately $15,000 for grants that District 833 is awarded.
•K-Plus programs (all day Kindergarten) will be offered at 14 elementary sites in 2012-2013, pending space availability. A total of 33 sections are planned.
•The School Readiness program for pre K students will expand to offer services conveniently at neighborhood elementary sites.
•Community Education will manage the Driver's Education program in 2012-2013.
•The 2012-2013 Community Education budget includes $62,000 available for youth programs financial assistance, enabling all district families to participate in program offerings.
•The district's PERA contribution will remain at 7.25% of salary paid for nonlicensed staff.
•The district's TRA contributions will remain at 6.5% of salary paid for licensed staff.
•Salaries and benefits are budgeted per bargaining unit contract settlement or 2% increase for the 2012-2013 school year.
•Facilities Use will incur approximately $25,000 of additional expense for Saturday custodial at the three high schools.
•For 2012-2013, a new Community Education Technology Support Specialist II position is budgeted to assist with increasing technology demands in the department.
•Chargebacks from the General Fund are estimated at $714,484, and increase of 25% from prior period, and include a building usage chargeback for the District Program Center, property and liability insurance, Kids Club building usage, swimming pool temperature increase, facility use user usage assessments and Kindergarten Plus building support specialist.
The proposed revenue in this budget is $11,513,774 while expenditures are proposed at $12,244,640 for a deficiency of $730,866 which will come from the department's fund balance. The Community Education Advisory Council has set a goal to maintain 10% of the current Community Service expenditure level in the Fund 04 fund balance. The projected fund balance for June 30, 2013 is $941,167. Board members requested additional information on the chargebacks from the General Fund. This will be provided for the May 24th presentation. This budget will be brought back to the board for approval at their May 24th meeting.
Keith Ryskoski, Assistant Superintendent for Secondary Education, and Andrew Baldwin, Director of Technology, presented an update on the purchase of instructional computers. At the March 22, 2012 meeting, the School Board approved the 2012-2013 Reserved for Operating Capital Budget. Included within this budget was the funding for an upgrade of instructional computers. Based on the approval of the budget and feedback from board members on March 8, the administration has proceeded with an accelerated district wide upgrade of all instructional staff computers through a lease purchase agreement with payments spread over a multi-year period. The $400,000 approved as part of the 2012-2013 Reserved for Operating Capital Budget will fund the 1st years' payment and future payments will be incorporated into recommended expenditures for the remaining years of the lease purchase schedule. This will allow the district to place new instructional computers in each of our schools the first year of the lease, with District ownership of the computers by the end of the third year. Information from the RFP process (request for proposal) will be shared at the May 24 meeting along with an administrative recommendation. This item will be brought back to the board for approval at their May 24th meeting.
Mike Vogel, Assistant to the Superintendent for Operations, presented the proposed 10-Year Alternative Facilities Plan. The school district is required to submit a School Board approved 10-year facility plan to the Minnesota Department of Education biennially. Mike went over the proposed expenditures and the funding source for those expenditures over the next ten years as well as a detailed list of projects included in each year of the plan. Mike noted that the projects identified in each succeeding year in the 10-year plan are subject to revisions as each year's project list comes up for approval by the School Board. Alternative Facilities Program projects are financed through a combination of a dedicated property tax levy and alternative facilities bonds. This item will be brought back to the board for approval at their May 24th meeting.
The workshop adjourned at 8:58pm.
This published material is only a summary. Full text is available for public inspection at the administrative offices of the school district and the district website at www.sowashco.k12.mn.us. A copy of the full text, other than attachments, is available without cost at the administrative offices of the school district or by means of standard or electronic mail.