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Scobey School Board

August 8th, 2024 Finance Committee Meeting

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This transcript was automatically generated. Accuracy is not guaranteed.
 

00:00Okay, we've officially started the meeting. We're on video, so it's being

00:11recorded. It'll be posted at the end of the day today, so everybody knows.

00:16This is our Finance Committee meeting, to set our budget for next year.

00:20The things I've given you guys so far are a line item budget for next year.

00:25The cash balance is at the end of the school year last year. Bus depreciation, how many buses

00:33we've got, where the buses are at, our bus routes, and then our proposed OPI

00:38budgets for last year and for the proposed for this year. So that's pretty

00:42much what I've given you guys sitting here in front of you. First of all, is there any questions?

00:57So I'll kind of start at the top. Doing a TFS, we went through.

01:05We had kind of a lot of cash this year. I really don't know why. Our cash balances were a

01:10little higher. I don't know if we just collected more taxes. Tammy, did we get more

01:13taxes? I don't know. It just seems like we have a lot of cash at the end of the

01:16school year. You know, the only problem that I can think of that was kind of

01:20out of line was that one where they just put money in to retirement. So we

01:27have a little extra cash to play with. In the grand scheme of things

01:32[inaudible] It sucks up tax-payer mills down. I mean, it does help

01:36our mill because I can give that cash back after we save whatever we need to save.

01:42So we did have a little bit of cash heaviness.

01:47I re-evaluated some of our lines, especially like in transportation. We kind of pumped that one up quite a bit.

01:54So we had a lot of cash last year. I don't know, in transportation.

01:58On the one that I emailed you guys, I did it. What we spent last year and what we spent, what

02:03we're going to propose this year. So I kind of put those a little bit more in line.

02:06I was able to trim like

02:08$40,000 out of that transportation budget.

02:12And the only thing that I'm a little concerned about is if you have to add another route.

02:15If we had to add another bus driver, it would be approximately about $15,000.

02:19I'm guessing depending on the route and how far it is.

02:21As of right now, we don't have that. I still think I've built in enough

02:23fluff because our miles won't really change. There would be a wage that we'd have to

02:28come up with. But I've got still, I think I overestimated $20,000 in fuel and $20,000

02:34in repairs. So I mean, that will slush in that part of it.

02:37The other thing is when they had a transportation meeting, when was that Mr. Hardy?

02:42This is spring, wasn't it? March?

02:45The transportation met and Sean's got a plan for some buses and they want 100%

02:51depreciate on all of the buses. So we put 100% on the depreciation.

02:54That's the one fund you can play with to save mills. Because you can say, we're not going to

02:57depreciate anything. We don't need a bus. We're just going to save taxpayers some

03:00money, but they want to get a bus. So that fund almost doubled. So we've got, that

03:06one's going to be sitting in about almost $400,000, which is nice, because then we'd

03:10be doing my bus as we can. The one caveat with bus depreciation

03:14if you ever needed, you can transfer that money into the inter-local also. That's another fund

03:20that you could use that inter-local if you ever need a roof. It costs $100,000. You don't

03:24need any buses. You can transfer that and use that for that. So that's one of those

03:27kind of funny funds. You don't want to do a transportation because you can't raise

03:32your budget again, where depreciation can always raise your budget. Because you can

03:37depreciate your bus. So taxable value. It went down an issue by $330,000. Were you

03:44surprised by that? You know, it's such a fickle beast. I was kind of surprised that

03:50it went up so much last year. But in the overall grand scheme, it's just under

03:56$400 less per mill, which, yeah, in the grand scheme of things. Yeah. So it went down

04:03$300,000 approximately total mills. So it went down $330,000. So are the mills more

04:09expensive than every dollar we want is going to be more expensive because it's not

04:13worth as much. Basically, is what it boils down too. However, when I finally got the line-item

04:17budget done and the budget in the OPI spreadsheets, we are less mills. And so that

04:25has to do with cash. And some of it has to do with, we got more money from OPI this year.

04:29Our quality educator, we got almost 7 or 8 thousand dollars, which was kind of

04:32bit. And we also got more money in the, not GTV, but the state, the state fund, the

04:40people, the base, yeah, direct state aid, that one went up a bunch.

04:44That was a couple hundred thousand dollars. So our mills stayed pretty

04:50close to this. And they're less by eight. Some of that has to do with 40 grand I

04:55got rid of out of transportation, could still put it back in. If we want to keep

04:58our mills steady, that's kind of up to you guys. So, okay, that's the big overview. Where's your

05:05question? Where do you want to be? What do you want to look at first? When I visit with

05:12Mr. Hardy and Mrs. Buer also a little bit about the line item budget, things to

05:18think in the back of your head. We left a line-item for Home Ec. If we get a

05:21Home Ec teacher, we left the line item in there and budget for you want to budget

05:25for him or her, or just in case. I also left in insurance for everyone. So in case

05:31they come back to do the insurance. I have money in the budget for that. I bumped up

05:36our state travel fund a little bit for the State Basketball, we're gonna be

05:42sending kids. We haven't yet but we will. I bumped that up like five or six

05:46thousand dollars. I budgeted for a copy machine, because the copy machine is

05:51gonna die in the office here pretty quick. And I think that was it. Wasn't I

05:56one of you talking about that? Those are about the big things that I've left in

05:59there overall, is line items. So, again, at the end of the year we might have money that we didn't spend, is what it may boil down to.

06:10I don't think Scott has any huge repairs. He's got one big one he wants to fix out there by the boiler.

06:17I know that one he got a quote for seventeen dollars. The pipe, you know, keeps freezing up.

06:24He's talked to Dale Plumbing and Heating. So that's like, uh, I haven't

06:27line itemed that yet. [inaudible]

06:33Yeah. [inaudible]

06:43Yeah.

06:49We did have to budget a little more for Paula and, cuz, our Title money went down a little bit.

06:54We lost seven or eight thousand dollars on our Title [inaudible] last year, which is kind of unusual.

07:00And other fund that I did that I struggled with. So, we have one one on one student

07:06where they're gonna aim this with that student all the time. Once you put your

07:11money, they have a tuition calculator that OPI provides. Once you put in

07:16there what you need and it looks at all of our spend money, it says we do not

07:19qualify for any funds out of tuition. You can't levy for any. We do have a little bit of cash. So, I've basically budgeted what cash we have left.

07:27It's not a cost to the mills, it's not a cost to the taxpayers, even zero. And we still

07:32had enough money in the line item budget to take care of that person. I did budget for eight, one more para-professional.

07:48I know, it's a lot of stuff. Sorry guys.

07:51[silence]

08:46And there's stuff on the front and back of my line-item budget, too. I did front and back. Sorry.

09:16I guess what I want guidance from you guys is where do we want our mills? Do we want to

09:24leave them on what they were? You want to go like this? You want to go up? Down? You want to stay where you are? The two budget pages on the very far

09:33left-hand side of your stack there are the ones, the OPI budget ones. So, the total mills before the debt service, because that was a fixed

09:42fund. That one your kind of stuck on. Basically, what's on that is. So, our total mills right here is 193 [?]. Last year it was, what 201?

10:10So, we're down eight mills. If you compare line items there, our general fund stayed pretty close to the same. It's 122 compared to 125. So, it went down. Some of that has to do with the amount of cash.

10:27And some of it has to do, because we had another $100,000 in cash almost, not quite. And we also were able to, we didn't need as many because we had more direct state aid, our direct state aid was quite up high. So, I mean, [inaudible] It depends on what they do with this funding formula.

10:48Because sometimes they do when they did the legislature does the two-year thing, sometimes the years are the same and sometimes.

10:55Yeah. They did a three, one in a three-year. No, it's a 3, 2 and a one-point something or another wasn't it? The second year wasn't supposed to be quite so high.

11:04So, we're going to legislate so we don't know what it's going to be next year. They haven't set that yet. So, I'm guessing it's going to be some, you know, some inflationary. I don't know. I don't know.

11:14So, you can leave the same as last year.

11:20This one, they get calculated. So, the general fund is stuck. I can't do anything with that one unless I didn't want to keep on my reserves. Let's say I want to get all that money back to the taxpayers. We don't need any cash.

11:32This is basically that the reserves is the amount of money you need to start school this year to spend, to pay on your bills. We don't go in the hole.

11:40So, I could put it at zero. I could say we don't want any money in our reserves. We have some cash left over and that would lower those.

11:48But then you may have negative balances in your cash for a little bit until taxes start coming in. So, this is going to basically get us from now until November when taxes start coming in.

11:58So, that's what that reserve is. It's just you're checking account balance, I guess this is what you say.

12:03Is it appropriate for me to speak? Okay, two things. Don't touch your reserves.

12:10Secondly, I think that if you guys could get by with the number of mills you've got projected right there, it would be a big bonus as far as taxpayers,they've taken a big hit with two fifty mill increases this year.

12:27And you can be the hero. Oh, ours went down. You know, I mean, that's just a suggestion. But if you're sitting good and you can do with what you've got, if nothing else, just say ours didn't go up. Yeah, especially when taxable value went down.

12:46The transportation line is 20. It was last year, it was 33. So, this is the one that went down 10 mills. And the reason I like this is because I cut $40,000 out of the budget and we had a lot of cash.

13:00I think on that cash report, I've got at the end of the year for transportation, we had $83,000 still sitting in the account. Last year, we only had 40. So, we were a little cash heavy in that account.

13:14We could increase this if you think that we need an under route. We could increase the $20,000 if we wanted to. Just in case.

13:21In the grand scheme of things, that wouldn't even get us to the 33 and probably get us to maybe maybe 28 somewhere in there. I can calculate it and then just let you know.

13:30The other one is bus depreciation. These are the ones you can mess with with the mills. And that just means on that bus depreciation page that we've got here that shows all of our buses.

13:40We can say don't want any depreciation. But again, they wanted to say that transportation, I know that Sean needs a couple buses. I know he's sitting out there with some yellow buses that need to be replaced.

13:50So, that's the place we could mess with a little bit. Tuition, again, is just a cash account right now. We have nothing in there. I have nothing budgeted. I don't even have a person in there. So, retirement is calculated. We have no control over that.

14:05That's basically your Social Security, your TRS and your PERS. It's totally calculated off our wages. So, it just goes in there and then they assess the mills. I never know what those meals are. They never tell me what that actual mill is.

14:18And it's always a $10,000. You can spend a little bit this much. This year we spent $3,500. It's kind of nice.

14:24Part of Mr. Hardy's salary is, because you have to have a supervisor. So, part of his salary is coded to that also.

14:32The Technology Fund, I increased, I gave us our full $50,000 for our levy that we can levy this year.

14:40To get our cash balance back up. We may not do that next year. We may not need it. I know that there's a couple projects that we're talking about doing something with that very, very far elementary lab because that one's in tough shape.

14:51That one's either going to be replaced or shut down or a plan is going to be made for that one, somewhere along the line. And I think Schoolhouse IT gave me a quote that it's going to be like $22,000.

15:00I mean, that's a dream. It's a pretty cool sweet thing. But otherwise, our technology is pretty good. We are okay, I think, in our tech.

15:09Our flex fund is basically just a slush fund. We get some oil and gas. You can't levy for it. You can't do anything with it. It's just basically a cash account.

15:17Right now, what we're buying is for teacher enhancement, I think, is what some of that money was supposed to be for. So we bought some goodies for the teachers this year out of that.

15:27Our building reserve is finally getting up to where we want it, but this is our very last year of the bond. This is the last $100,000 we can get.

15:35Then we have to run another one.

15:37Then we have to run another one. Make a choice.

15:39So, yeah, this is our last year. So next year, if we want another one, we'll have to go on our election. And we'll want to decide what we're going to do with that.

15:48I see that they opened up that, Donations Portal again. There's a dibble-dally of money left in that one.

15:56I got a contact and so I'm signed up and I'm ready to go if we get donations or however that works.

16:03And Mr. Hardy is talking to somebody to say, we can get at least an idea of what that roofs going to cost, but we're sitting very nice in that building reserve fund.

16:11This year, we finally got to the point where we're putting in way less than the states put in, and that's called a small box.

16:18I think we only have to put in $25,000 and they're putting in $47,000. So we're getting $47,000 in the state to help our building. So that's really nice. That's helping.

16:27Our bond is finally getting down. I don't even know where we're at on our bond. I think we're down to a less than 15 years finally on that one.

16:34So how's that building reserve? We've had a plan and we're working. How's that all coming together?

16:43You know, what was our big projects that we started out with? I think we needed bathrooms was our big one to start with.

16:52Most of our projects have been taken care of except for a junior high.

16:54Well, the way they were taken on to some flooring, well then COVID ended up being huge. Almost all of our first wave of that was done with COVID.

17:06Windows is another one.

17:08We did the doors and the door.

17:12Yep.

17:12And all the re-keying, all that re-keying that we did.

17:16Yep.

17:16Intercom was part of it.

17:18The intercom was part of it. Yep. Yep. All the new clocks in the system.

17:22So yeah. And that was $200,000 to get that re-done.

17:26That's incredible. You guys have done a great job.

17:31So I mean, I'm happy with the mills. I think they're good. Like I said, the only one that I was truly questioning was our transportation.

17:38And that's up to you guys. What you think we want to do is that one. If we want to raise it up a little bit, it could take a little slush in there, just in case.

17:44I know. I don't know. I really don't know what to do with that one.

17:49On like, the, on our line item budget, you can see where we are with.

17:56[silence]

18:14So salaries are set. Part of my salary and for Mr. Hardy's salary also comes out of there.

18:21Because we can take some money out of there for that.

18:24It helps free up some general fund money. So that's part of it.

18:29What I changed here is repair and maintenance.

18:31Last year, he spent $14,000 and we knocked to $12,000.

18:36And this is what Sean is sort of, you know, where we're at. And he said he should be okay.

18:39Some of that was some big, big repairs. Didn't we? Yeah, we had a couple of buses that

18:45suburban ran in and we had some, we had insurance, but it didn't total the total amount of repairs on that.

18:50So that was a little bit higher than we thought.

18:53Our insurance is, it's hard that I put some buses, because our buses come out of our insurance.

18:58Our insurance was $57,000 this year, probably in my ability. So I put 20% of that to there.

19:05Let's see here. The other one was Telephone stayed about the same.

19:13DSL stayed about the same. Supplies, he used a little bit more supplies.

19:20I did take some office supplies, because some of that's coding. You put it in the wrong spot,

19:24but you want somewhere else.

19:25And replacement parts, we only spent $24,000 and lowered that to $30,000.

19:30And then the other one was in the old, the old 36,000 that's the last year, this year I put 30.

19:40Who knows, who knows what that was going to be. The election, who knows.

19:46And we didn't buy any minor equipment. That would be something like in a computer,

19:50in a computer or a phone or something like that. That's where that minor equipment falls into.

19:55And then he said that there weren't any little dues or fees or something. What we had in there was

19:59because I put, we paid for all of the bus drivers, DOT physical. So all of his

20:07bills get paid for. It was coding. So. We should have put it up there in professional services.

20:14So if we thought,

20:20this is how the bus drivers are calculated. So I got, I have [inaudible] they're not here anymore,

20:26so I don't have them. I don't know if Ken's gunna stick around, [inaudible]

20:30but I don't know. But there's our bus drivers and their routes. So even at the highest

20:38route, Tammy, with 27 years, 130, even because Sean doesn't really account with 187,

20:45her salary is only 17,000. And we won't have a route that's that big. Even if we get a new

20:51bus driver, that route won't be that big, I don't think. Because all the, he's covered with routes,

20:57he's got. It's just that if you have to add another route in there for [inaudible] kids, I know

21:04Mrs. Buer said, there's at least two more that we, up on the Dana's route. So yeah, up north, Sean

21:10doesn't have that yet. Yeah. So that's, like I said, this is, this is my wild card. This is one I

21:19really didn't know what to do with. I wasn't sure. Did I knock too much off. Without Connie, our

21:27way, even if we hire a new Home Ec teacher,

21:32but it's not going to be somebody like her driving ability.

21:41Right. Right. Last year, we spent $6,900 in temporary in, in sub drivers. Well, I only put

21:49six and we don't have driving this year. So, I mean, I don't, you know, find somebody to sub drive,

21:55it's going to be harder than we realize. So, I don't know. So yeah, that's up to you guys,

22:01[inaudible]

22:23What if, what if we raise the transportation a little bit since [inaudible] mills? Sure.

22:30But we kept the overall mills under the 21.2. We could go down, but I just,

22:37I don't know. I feel like we're down, but maybe not as much. You bet. And then what about like school food?

22:44That's going to be, it's been good, right? Yes. And we don't, we don't, for okay, they don't

22:52care about school food. We, that's where we care. Right now, our, yeah, no, that one has its own

22:58fund, but it's not budgeted, it's not an OPI budgeted fund. I still put a budget together,

23:04but we don't have to tell them what were spending. I did get a ding this year at the end because

23:08we have too much cash in there. So, I know there's, I know Shirley, would like to have one more person cook.

23:14I know she's looking for one more cook. So, I budgeted in a fourth cook. And I also,

23:21I also budgeted in another $20,000 for food. Oh, I put in another $20,000. And right now,

23:28it's in our school food, we've got $134,000 in cash. So, that's not, that's,

23:33that's last year. And yeah, I mean, we haven't spent a penny of it yet for this year, and we'll

23:37start getting into school food money. So, we're almost two [inaudible], hopefully. We might, we might

23:43get dinged by the state on that one. They'll tell us we have to buy something. There's always that

23:48chance. Yeah, exactly. And then all of a sudden, we get all that left here. Yeah, that's true.

23:56Yeah. Now, everything in the kitchen can come out.

24:00So, you're on the school food. Yep. [inaudible]

24:14The way that works is if we wanted to do that, let's say we have that project and it's going to

24:18cost $70,000, we have to put it to the state and then have to approve it. But because we have

24:23too much cash, they're not going to even question that. There are some things, like if you want to buy

24:28equipment, you have to have this over $5,000, you have to ask them for permission to buy that,

24:32mainly because it's federal money. What about that bathroom? You know, you've got to approve of that.

24:39You know, I know it's right there. So, I just wanted to. I don't know. It's a good question.

24:48That's a very good question. That would be very good. So, let's, I might just say like,

24:52no, no, no. That's the way we're supposed to do this. I'm going to increase the

24:56transportation, but I'm going to put another $20,000 in there.

25:03[inaudible]

25:29So, back here, it's reports that I'll show you what that does to our overall mills.

25:40That's the nice thing about this. It's easy there. Let's change the mills.

25:52So, adding that $20,000 only added on three mills. Three mills? Yeah. Three mills.

25:59If I add 40, we can get pretty close to where we are, because that's

26:04361, and last year we were at 385.

26:11And that adds on three total mills. So, then that puts us back to what we were...

26:14Pretty close. It puts us at 195 mills, which is what it was compared to...

26:18201. 201, yeah.

26:22It's still directly tied to taxes, because of our county reimbursement, and also this

26:37our own personal reimbursement from the state. That page right there that's got the totals,

26:43this one right here. That one right there is the one that tells us how much we can get

26:50based on our bus size. It's the bus size and the number of miles. Not how many kids ride the

26:54bus, but the bus size. So, the way we put that in there is we say that big routes have gotten

27:00up to bigger buses than the routes that we were on buses. So, and then you get a reimbursement

27:04based on that amount. [inaudible] Yes, that will

27:11be less money we'll get from the state and from the county in the entitlement as the county

27:15transportation, equalization. That's that county equalization one. Those of both would

27:19go down based on the size of the buses. Doesn't make sense. I know, and then the taxpayers have to pay for it, is basically

27:26what it is. Well, [inaudible]

27:32Um, yeah, and the difference is

27:39[inaudible]

27:54we'll look here and see. Let me show you. Is there a chance, Colleen, that they'll be individual contracts

28:01on that Peerless route? I don't know. Maybe we talked about if we couldn't find a driver or the route

28:08got too long that we were talking about having stop off spots. So, there'd be one in maybe just outside

28:14of Richland, one in Peerless, one in Four Buttes, and kids would have to meet there, right.

28:20The state would then have to reimburse if the people filled out the individual transportation

28:24contracts, the state would then reimburse them to get to the bus stop. I mean, that's that's

28:30worst case scenario and best case scenario if you can't find a bus driver. In that case, you may

28:35need to have a big big bus, but the only thing we're going to get reimbursed from is from the farthest

28:40point down to home. You know, 20 miles is all you're going to get compared to

28:47144. You're paying for a big bus for a [inaudible] That bus could last a long time and you're only driving on the oil.

28:56Yeah, yeah.

29:00I wanted to show you the, I guess what I'm going to use.

29:08And this will show you how, probably, sorry.

29:25So, that is the size of your buses.

29:31The bus, the two suburbans are only 0.5. This is 95 cents a mile, 115. And then,

29:38so all of our buses are 115 and above and less, right? Yeah.

29:49Not at all. No, no, the little white bus, the little black bus and the cruisers,

29:53you don't get any reimbursement all on. You can use bus depreciation, you place them,

29:57you cannot, you don't get any reimbursement on that. Do we do on the van?

30:07I had that request from kindergarten parents. They said, my kid is very excited to be on a yellow

30:12school bus and then I told him he might be in a suburban and he goes, no, it's a yellow bus.

30:18I'll pay for it.

30:22The problem is, the minute it turns yellow, then not anybody can drive it. Then you're stuck. You have to have that endorsement

30:28to be able to drive anything that's yellow and says school bus on the side. Unbelievable. Crazy.

30:36So, yeah, I have no problem with even putting the mills pretty close to what

30:40they are. We aren't going to get there without going over last year's budget, which we really

30:44don't need. But I could even add another 30,000. We can go to 30,000 and then maybe 25 mills,

30:49basically, and we're still under.

31:00But Tim, we just raised a little bit and we can still say, well, we kept it, we kept it down.

31:08We lowered it, that's just great, but we lowered it a little bit.

31:12God, we're good.

31:14We were, they were sweating and all adjusted.

31:24Well, then when we go in and ask for that,

31:28building, building levy next year, said, well, you know, we've been, you've already been paying

31:33this, and we lowered this last year. We're doing, we're doing our best.

31:38I really do hope you guys continue to work on your building through those levies.

31:44It's just not going to get any better. I mean, however you do it.

31:49If I raised it up to 270, like we had, 30 more thousand, we'd be at 27.71 mills is where we

31:56would be at.

31:58[silence]

32:10[inaudible]

32:27I agree with you.

32:30That's right.

32:35You guys' recommendations is what you guys will present..

32:37and then it will be a motion on Monday?

32:39Yeah, and if they don't like it, you have until the 25th.

32:42And you can meet every single day until it gets it fixed.

32:47So yeah.

32:58Now they are dropped.

33:03They fired the boiler up, because it got below 40.

33:08At least the boiler is going to work.

33:14Hot water in the bathrooms, maybe.

33:18Okay.

33:20Any other questions, concerns, anything?

33:23[inaudible]

33:26Things go, but what's going on with the interim legislative studies?

33:32They're still trying to present this new.

33:36Are they getting any input from schools?

33:39Or they just kind of take our legislature, legislators, know nothing about it

33:45I realize that's an opinion.

33:48[inaudible]

33:49The funding formula is ready to be presented.

33:54I think they've already got it in, ready to go to legislation as far as I know.

33:58And then the new insurance, they're still working on the insurance.

34:01I don't know if it's going to make it.

34:02I don't know if they're going to, I don't know.

34:05I hope so, but I don't think so.

34:08I don't know.

34:10They still have to find somebody that's willing to fund it, or to be the manager of it,

34:13and Mark still does not want to do it.

34:14So, we'll see, that'll be interesting.

34:26Very good.

34:27[inaudible]

34:32Colleen, you do such a good job. I'm glad it you and not me.

34:38Okay, I'm going to stop our meeting here.

34:41If I can remember how to do that.

34:43[Background Chatter]