DTSD Webinars: I'd like to call the Finance Committee meeting to order and announce that this meeting is beating audio recorded
DTSD Webinars: The date is April 20, fourth, 2023, and it's 50'clock.
DTSD Webinars: We're gonna do a roll call, so we'll just go around the room. Kathy sicker, board member treasurer, and I'll go to my left.
DTSD Webinars: Lindsay. True board member.
DTSD Webinars: I'm. Your white assistant business manager, Michelle, Ag Board Secretary
DTSD Webinars: Craig, Homel, Director of Food Service. Charlotte Purcell, business manager.
DTSD Webinars: some light. No.
DTSD Webinars: So like Josh Smith.
DTSD Webinars: Citizen advisor. Eric Schmidt School Board, Member
DTSD Webinars: Stacey Winslow Superintendent. Okay, I see we have one person online.
DTSD Webinars: It's a so it Go Go ahead.
Brian Ostella: Brian Stella, Assistant Adviser.
DTSD Webinars: Okay, Great. Thank you.
DTSD Webinars: Okay. May I have a motion to approve the minutes from the last finance committee meeting?
DTSD Webinars: Okay, is there any discussion?
DTSD Webinars: All those in favor? Say I. All those opposed say no. Okay. The minutes are approved. There's no unfinished business. We'll move on to new business. We have a quarterly update from the Milton Hershey Trust Fund, Fulton Financial Advisors.
DTSD Webinars: You
DTSD Webinars: Good afternoon. I'm. Sherry Leo, I'm, the relationship manager for the mountainous hers, she trust, on behalf of fault and bankful and financial advisors.
And today I get to introduce you to the portfolio manager, as you may recall, Liz Paris had retired at the end of last year, so her replacement, Kyle Ireland, is here today to do the report, and he and I have been working on the account since Liz retired at the end of December.
DTSD Webinars: So i'm just going to give a little background in history on the slide, so I can go to the next slide after the first title page
DTSD Webinars: slide 2. There it is. Yep.
DTSD Webinars: background in history. I might usually do this in case there's folks in the room that don't know the history of of the trust the talks about when it was to create create it, and that in 2,012 Hershey Trust Company was named Trustee, and the requirements under that timeframe, and then Fulton became trustee successor, trustee in September of 2,012 with an agreement among the Hershey Trust, Dairy Township School District Fulton and the Attorney General. So we've been acting that way since 2,012, and I made a mistake.
They they resigned as trustee in 2,012, the Her She Trust Company, and then we started to look at the law a little bit and take advantage of the Pennsylvania statutes. So we've been doing a definition of income of being between 2%
DTSD Webinars: and no less than 2, no more than 7 of the market value, and there's some timeframes in there. We've over time. Increase that from 3 years to a 5 year average which we'll see in a moment. It also lets go to quarterly payments instead of the Summer Annual, which we're originally in the document, and if we go to the next page, the payment history.
DTSD Webinars: I thought this would be helpful. I'm not sure. We show this the last time, and i'm not sure why that little summary on the left. Some of it broke a part on me, so next time i'll make sure we get that that little sidebar to the side, but just to give everybody again a little history of where we've been and where we are. The 2 things I would point out is that over time as trustee. We were trying to make sure the account was putting out enough income to help support the school, but also invest in such a way that the Trust would hopefully grow over time, and therefore you're getting a bigger percentage
DTSD Webinars: of a bigger bucket every year. So on the payments I got no about 4 back in 2,019 and 2,020, and then Covid hit.
DTSD Webinars: and that's when we heard from the business manager at the time you know. What can we do to replace some some income we were missing, and we felt as trustee we did. We came into these meetings and did a lot of back testing, to say yes for at least one year. We could afford as trustee to help out and go to 7 and make sure you make up that shortfall. And then what do you need after that? And then last year was 5. The thought this year is 4, but again we are open to listening to the Benny, which is the school district, to say, you know, 4 and a half 4, but 4 is all to be the goal we would like
DTSD Webinars: to to get to, so that is highlighted there, and I'm proposed on on the next page, or calculate on the next page. So if we go to slide 4.
DTSD Webinars: That just shows us your calculations. So just so, people understand what we're doing as trustee we are doing. A 5 year average helps to smooth out some of the ups and downs, especially the downs when you have them. So there are the different market values over the years, and then the 4%, and then what the quarterly payment would be. So that would be our
DTSD Webinars: our recommendation or preference there, with some input, from from the the school district, and, like I said, what that does, Kyle will show you returns in a minute when you get to see the returns and his review. When you start to debt out fees you start to net out inflation. You start to kind of net those things out that 4 is the right number to really let the account grow over time, but also give the school district a pretty good return on the Trust, and then the last slide that i'll cover is the next one, which is slide 5. I believe
DTSD Webinars: that just again gets into the fiduci, your expertise. I want to read them all to you, but it gives you a sense that Fulton, you know, managing this money, being responsible for it, making sure that we're doing the right thing for you all as the beneficiary, and then we have the oversight by the office of the Controller concert currency. So you know you really have a Federal agency coming in to make sure that everything we're doing is trustee meets the guidelines is being done properly and done correctly, so you, as beneficiary, have that that insurance from from that size that tells a little about what we do.
DTSD Webinars: and at this point i'll turn it over to Kyle, and he's just going to do a brief review of the performance of the account.
DTSD Webinars: Thank you, Sheriff.
DTSD Webinars: On the next slide. That slide there we're looking at. The upper left is the overall asset allocation summary, and we have that we we've deemed a growth allocation with about 62% in equities, 27 and a half in fixed income, about 5 and a half in cash.
DTSD Webinars: There's also an allocation to alternatives equaling 4.8 of the account. And as you mentioned, that's that's really geared towards meeting a 4% distribution rate, keeping up with inflation and also main keeping up with management expenses over time
DTSD Webinars: on the upper right the quarter ended with 4, 46,556,000and value that that equates to an expense expected, estimated income of 1,272,000 for the year, or equivalent to 2.7, 3
DTSD Webinars: on the bottom right. That's the an accounting year to date the coming into the year, after a tough 2,022. We started the year with 45,000 or 45,000,146
DTSD Webinars: We had distributions of 572,000
DTSD Webinars: We earned through the quarter
DTSD Webinars: 265,000 and market appreciation of 1.7, 5, 7 million
DTSD Webinars: Our fees were also deduct from the account at 40,000,
DTSD Webinars: ending the quarter at 46, that 46,556,000 up 4 and a half percent
DTSD Webinars: we're comparing that to an index, which is 65% in the msci all Cap World index and 35% in the bloomberg Us. Aggregate fixed income index we notice slight under performance here to date really driven by.
DTSD Webinars: compared to the benchmark from the Equity side, where we have a allocation to fix the
DTSD Webinars: I'm. Sorry we have an allocation to small and mid mid cap equities where the Ag we does not have an allocation to small equities. In addition
DTSD Webinars: really as we saw through the first quarter. 98% of equity returns were driven by 7 names. You've all heard of them the the Fang plus Microsoft and Tesla. So we had Amazon, Apple.
DTSD Webinars: Microsoft, Meta, Nvidia, Tesla, and alphabet that really generated 98% of the S. And P. 500 S. Returns.
DTSD Webinars: Unlike the S. And P. The S. And P. Is allocated about 25 to those 7 names we do not maintain, and Don't feel it's appropriate to have that much concentration in equity. So that's one factor on a performance
DTSD Webinars: for the first quarter being slightly under index.
DTSD Webinars: However, you know you're like 2,022, that greatly benefited us with us large cap growth being down roughly 29% not having that type of exposure certainly benefited us in 2,022.
DTSD Webinars: On the next page
DTSD Webinars: We can look at a calendar year accounting
DTSD Webinars: and as I, as I mentioned, 2,022
DTSD Webinars: a tough year in in in the markets, both bonds and equities were down by the S. And P. 500 down about 18, the Us. Aggregate down about 13%.
DTSD Webinars: This account was down 12.7% in comparison, though the benchmark was down 14.6. So not having that overweight to those mega cap tech names really helped in a down here like that
DTSD Webinars: from an accounting just kind of point out a few stats on this page we ended the year 2,019 up 20 and a half percent
DTSD Webinars: again outperforming the benchmark of 19.4 for a total value of 45,800,000
DTSD Webinars: fast forward to end of first quarter this year we have a value of 46,500,000
DTSD Webinars: up, roughly 754,000 from that timeframe.
DTSD Webinars: along those years from 2,000, 22,021and 2,022. There was 7.2 million distributed to the school district.
DTSD Webinars: the next page
DTSD Webinars: looking at asset class returns a fixed income
DTSD Webinars: year to date.
DTSD Webinars: had outperformed the benchmark up 2.8% versus benchmarked return of 2.3%.
DTSD Webinars: And looking back over time with the a longer
DTSD Webinars: time horizon 3 year, 5 year significant outperformance of 1.4% over 3 years.
DTSD Webinars: 2.4% over 5 years eating the benchmarks negative return over 3 years.
DTSD Webinars: and also the five-year positive return of 1.4%
DTSD Webinars: the equity component of the portfolio a year to date. Msci: all Cap world index
DTSD Webinars: slightly. The equity portfolio is down 5.7%.
DTSD Webinars: Firstly.
DTSD Webinars: i'm sorry it was up 5.7% versus the positive 7.3% return for the index
DTSD Webinars: on a three-year basis. Our equity component was up over 17%
DTSD Webinars: compared to the index return of 15.3,
DTSD Webinars: and on a 5 year up 7.0, 8 compared to an index return of 6.9%
DTSD Webinars: on the bottom. The total managed that would look at the allocation over time in its entirety
DTSD Webinars: and on a since inception basis up 7.2
DTSD Webinars: versus the index of 6, point 3, 6
DTSD Webinars: on a five-year basis, up just under 6% per year. Person index. Return to 5.3
DTSD Webinars: next slide. We
DTSD Webinars: go through a brief brief accounting of top contributors and also top detractors for the year. And really that slide is going to point out that tactically things that we own the least contributed. When when equities and fixed income markets are down, things that we own the least actually were. The benefit of of
DTSD Webinars: top contributes to performance from a tractor standpoint. Large cap core growth was down
DTSD Webinars: roughly 1.1 5.
DTSD Webinars: Our Federated Core bond position was down point. 5% of the 2 largest detractors, looking back over
DTSD Webinars: all the observations. So 126 month timeframe.
DTSD Webinars: we had a average return along that timeframe, but 7.2% with a maximum one month, return of 8.4%
DTSD Webinars: maximum minimum, 1 point, minimum return of 10.2%
DTSD Webinars: in generating positive Alpha. So at the level of risk we're taking on getting a higher upside return
DTSD Webinars: questions from anyone.
DTSD Webinars: This is Kathy sicker. So when I go back to page 2.
DTSD Webinars: What I understand is just kind of gross numbers more than anything. So
DTSD Webinars: the portfolio is up to 46,000,500
DTSD Webinars: so we're a little above 29 numbers, right? So we we were 45 million in 2,019. We went to 50 million, 54 millionthen back to 45 millionThen
DTSD Webinars: we've gone up a little bit since 2,022. That's correct. Okay, it in it along. If I could point out along the year 2,000. 22,022There was a total of just around 7.2 million distributed to the school district that's right? So
DTSD Webinars: So we took out a little bit more in that period as well.
DTSD Webinars: Okay, that's that's that's correct. Okay, this is Lindsey. Jer: so really. we took the increased income for 2 years through the pandemic, but with the
DTSD Webinars: growth in the market, and then the drop, the the steep decline, which, when we started looking at this a couple of years ago. We didn't really anticipate the swings in either way, but we've kind of returned back to the baseline, where we were in 2,019 had all things stayed somewhat consistent. We were taking normal allocation.
you know, in distribution over those years. So we weren't really adversely or positively
DTSD Webinars: affected, you know, in an added direction. Is that a safe assessment?
DTSD Webinars: I think I think you summarize it very well, and I would say it goes back to what Liz had done in her evaluation that one year of that, no matter what the market stood up or down. it would eventually recover itself, or it would keep you somewhat flat. So yeah, you actually did a really good summary of it.
DTSD Webinars: The other thing I wanted to point out is we did get the final calculation for next year. It's $1,000,848,
DTSD Webinars: I think, at our last finance meeting we didn't have that final calculation as of March thirty-first.
DTSD Webinars: Does anyone else have any questions?
DTSD Webinars: I. This is Lindsey J. I. Do have a question as we're looking at the greater picture, and from a budget perspective. I know our intention this year was to return back to our flat, but in looking at the numbers, and I actually well, we were sitting here, pulled up from October 2,020. We had had an analysis presented. That was, if we do this percent one year and then revert back if we do 6 for 4 years.
DTSD Webinars: You know what was the long term picture, because we wanted to be mindful of the distribution for benefit of that current Year's budget. Given the kind of economic climate we were in, but also not impact it greatly in perpetuity because of our responsibility for the longevity of the fund to the district.
DTSD Webinars: But but in looking at the numbers year over year, really in 2,019 and 2,020, we took 4
DTSD Webinars: distributions, but prior to that had been higher
DTSD Webinars: than 4%. Because we, if i'm correct and recall.
DTSD Webinars: we were targeting a dollar figure, not a set percentage. So with the increase in the fund, now, 4% still puts us higher than it was.
DTSD Webinars: But I recall that there was an ability to be able to go up a little bit, and I think it was a legislative initiative that may have already expired.
DTSD Webinars: So where does that fall? Now? If, if, as we're looking from a budget perspective with tax increases, we look to a really large capital project. If we're going to. If if we look at potential options to offset taxpayer impact
DTSD Webinars: year over year over year. to be able to do education of the community and getting comfortable with the budget. You know that includes tax increases for a much-needed project.
DTSD Webinars: Is there a way to increase that
DTSD Webinars: inside of the back to square one parameters that we live in?
DTSD Webinars: Let me start by trying to
DTSD Webinars: answer that question. You are correct. The the legislation that you were talking about went to 10%, and that is over that one away you could go as high as 10. The legislation is still between 2 and 7. But if you look at the numbers, Kyle just did, if you were to take out 7, it's likely that fund is going to keep going down year after year because of fees and inflation.
So I think to come back to your question. That for was the same idea like you was a certain dollar amount.
DTSD Webinars: I will say it now that if you go to 5, and Kyle can maybe back up on that. A 5% return on it. A portfolio like this, and something that's very prudent, you know. That's doable. But again, I think then we have a harder time saying that we're about to grow the portfolio at that 5, and i'll even say that right now, like private foundations, the Irs law is about 5%. It targets about 5. I still feel at some point there is going to change that, because I think they're seeing more and more private foundations who have to give out 5. They're not growing. They're just kind of staying at the same value All
DTSD Webinars: So that's why I would say we feel the for 4 and a quarter 4 and a half is probably more prudent, because it'll it gives it a better chance to grow over time without having to take too much risk. But let Kyle say, if there's any more about the 5, I think you said that well sherry at the beginning of every year. We've on capital market assumptions, and
DTSD Webinars: you look at forward expected returns of all static classes, and with a growth allocation that you own.
DTSD Webinars: Our expected returns are in the low 6% range going forward
the next 10 years.
DTSD Webinars: If you look at your performance, you you've earned just over 7.2% per year since inception.
DTSD Webinars: A lot of that is a a function of the interest rate environment. Quite frankly, the last 10 years was a 0 interest rate environment. It really enhanced returns. So going forward, we're looking at pretty much a higher interest rate. Environment, lower expected returns in that environment.
DTSD Webinars: So to keep up with with inflation, and
over time 4 would be a safer distribution.
DTSD Webinars: So oh, go ahead. Who's gonna talk?
DTSD Webinars: I was just going to clear, because my understanding is about one based on the the quarterly distribution. So about 1 one is about around $462,000 correct. So if we were looking.
DTSD Webinars: and I say this with the caveat of understanding that a tax increase helps to expand the base of.
DTSD Webinars: But you know, the taxable base for kind of compounding year over year, but but
DTSD Webinars: half a percent would be
DTSD Webinars: $280,000
DTSD Webinars: additional funds for that if we were
DTSD Webinars: wanting to explore other options correct. Okay.
DTSD Webinars: thanks. This is Kathy Sicker. I I like the way you're thinking. But I do think that If this were to be considered, it would be considered for the next budget, and we would have to start the conversation in September at finance
DTSD Webinars: if you, if the Board would want to consider, maybe going to a 4 and a half. So this is not a conversation we can entertain the timeline, because we've already gotten our payment for the next budget. But if this is something a future board we want to consider.
DTSD Webinars: We should put it on the agenda for September. Talk about it in advance for the next budget cycle.
DTSD Webinars: Thank you. I I wasn't factoring out the timeline and and distribution on that. But I do think it's important just from overall, as the board changes as we start to understand what the impact is for this withdrawal, how it affects the balance long term, and where we do have
DTSD Webinars: the benefit of this fund that other districts don't have. For when we need to try to find that balance in taxpayer impact and making sure that our budget has the capacity to meet the needs for
DTSD Webinars: large debt projects.
DTSD Webinars: This is Eric Schmidt. When do we make that call of how the percentage we want to
tape.
DTSD Webinars: Well, they did the calculation as a march 30 first. So when would be your drop dead
DTSD Webinars: if a board for next year decided to change it from 4, because right now we've kind of settled on, for like we've known for was coming for a long time. If it were to want to change that, what would be your date
DTSD Webinars: so a drop deadly? I mean, I would say the march thirty-first, date, since you know that's when we draw the line and start to do the calculation, i'd say, you know by March thirty-first I think that would be fair to all of us if we knew by March thirty-first. Yeah, I just would start the conversation early. The budget. Yeah, yeah, and I think it'd be helpful to share as we as we have these quarterly updates, because I know you have to go to committee and have this basically blessed whatever we're going to take.
DTSD Webinars: what you would need from the districts. I know. We talked about it last year that we had some uncertainties with with revenues, which is what allowed us to go to. You know the 5% for the current year, just to be having those conversations As to what are we saying? What kinds of things you know. What are you projecting? What do you need from the district to
DTSD Webinars: to go to committee to to possibly go above that number? I think it's usually showing the need, you know. So I think Lindsay brought it up, you know something might come up, and you're not sure how to fund it we need. We need to be able to see the need at the at the committee level to change the
DTSD Webinars: that. That's important the need. And also when we were having these discussions, we did get projections in the future about how would it affect it? But we were also talking about it when the fund was pretty high, and I personally wouldn't increase when it's dropped down that badly like I just wouldn't even consider it.
DTSD Webinars: because we're back to 2,019 numbers. It was easier to talk about when it was almost 55 million. But now we've lost it lost in the
DTSD Webinars: cyber World of fun stock market
DTSD Webinars: 46 million. It's just not a good time to pull money out, in my opinion.
DTSD Webinars: But it's
DTSD Webinars: yeah. I would agree with that to the extent of like. I think a large project like a a building, you know, is maybe a unique circumstance. I I don't think it's good practice year over year to do, because that would rapidly, You know, decline that the time that that fund exists but for these type of projects, and to not be making up a deficit.
DTSD Webinars: but to be helping to expand revenue, you know, as that project would come. So I think ultimately, I I appreciate these quarterly updates, because, as we're moving into conversations about
DTSD Webinars: the elementary school project and planning for the capacity for that, and having these budget discussions, I think it's kind of something important to keep in mind as we look at
DTSD Webinars: what the need is for for revenue generation, and where we can supplement that to maybe ease a little bit of the pain
DTSD Webinars: while not hurting the fund
DTSD Webinars: or the tax base at the same time. Yeah, I agree with that, because I I do think we can't just plan on taxing
DTSD Webinars: at it, you know, for every single year I just don't. I don't think that that's a good idea. So we really do need to explore
DTSD Webinars: other avenues to bring in that
DTSD Webinars: that money. I I agree with Mr. On that.
DTSD Webinars: Hey, Josh Smith? Just a quick question for future reports.
DTSD Webinars: You know. I started thinking about this in terms of inflation. So
DTSD Webinars: there's an impact to what 46 million means now versus 2,019.
DTSD Webinars: Are you able to add just an inflation index quarterly to just a
DTSD Webinars: show loss of purchasing power. Perhaps
DTSD Webinars: from a reporting standpoint we could look into that. Certainly.
DTSD Webinars: I'm not sure if we have the recording capability to put these in real dollars or not for you to be honest on paper. But we can look into that.
Thank you
DTSD Webinars: all right. Thank you. Alright, Thank you.
DTSD Webinars: Thank you. We're going to move on to Quarterly fiscal Updates Food Service.
DTSD Webinars: Good afternoon, and thank you for the opportunity to provide this update
DTSD Webinars: this afternoon. I'm going to just kind of give you a little look into our budget for the 2324 school year. as all of you might know the Food Service Department.
DTSD Webinars: Our main goal is to serve education every day to the students of dairy township, school district and do so in a fiscally responsible manner.
DTSD Webinars: What some folks might not understand is, we are a proprietary account.
DTSD Webinars: and the budgeting sense of a school district. So you have your general fund.
DTSD Webinars: and then you have your food Service fund.
DTSD Webinars: Think of it as a business now over a 2 million dollar business
DTSD Webinars: that operates solely for the students. So at the heart of that business is our kids.
DTSD Webinars: and it can.
DTSD Webinars: and it gets a little difficult with business decisions, such as you know, never turning a student away and having them have the ability to charge.
DTSD Webinars: But we try to be fiscally responsible as possible. We all know the last few years have been very difficult on many different fronts
DTSD Webinars: during these many challenges. You know, the Food Service Department never missed the opportunity to continue to nurse our students each and every day.
DTSD Webinars: We've had some unique opportunities. During these challenging times. For instance, last school year, for the first time, schools across America were able to provide a free breakfast and lunch meal to all students.
DTSD Webinars: Here in Dairy Township
DTSD Webinars: we received an increase in our daily participation, offering these real pre meals
DTSD Webinars: and our Federal and State reimbursement
DTSD Webinars: also increased to cover our cost.
DTSD Webinars: So for the first time in school food service.
DTSD Webinars: we were actually receiving State and Federal funds that covered our cost.
DTSD Webinars: and we were able to provide free meals to all
DTSD Webinars: due to the increased reimbursement rates and the participation levels. We ended the school year on a very positive financial note.
DTSD Webinars: where revenue exceeded expenses by over $600,000.
DTSD Webinars: Now, prior to the start of this school year, the 2223 year. We knew we're going back to a more traditional way of operating where students would have to pay for their meals and or apply for that free and reduce lunch program.
DTSD Webinars: We also knew there were many challenges, and you know that that storm brewing on the horizon
DTSD Webinars: food costs. We're going to increase by over 30. That's the largest increase in food costs I've seen in on my almost 40 year career and food services.
DTSD Webinars: We had other operating costs that were drastically increasing. We were really going to be hit with all the different inflational challenges that we were all seeing in our homes.
DTSD Webinars: But then we had to rebuild staffing levels that we lost during the pandemic.
DTSD Webinars: I really need to thank the Board because you had the foresight to increase our starting wages by $3 an hour.
DTSD Webinars: I needed to attract
DTSD Webinars: almost 37% of my staff that I had lost. I needed to add 12 people at the start of this current school year. or we would not have been able to feed our children in the manner that we should
DTSD Webinars: keep in mind during last school year a lot of the regulations were relaxed.
DTSD Webinars: So some of those staffing members weren't needed
DTSD Webinars: with the free meals for all. So there were a lot of different things that had that relaxed during that last school year that now we were changing. So hence we needed to bring back those additional folks.
DTSD Webinars: and we were able to, and 12 very good people to, and to join the exceptional Food Service team that i'm blessed to have.
DTSD Webinars: You also realize and supported a very difficult decision, and that was to increase our meal prices by a dollar.
DTSD Webinars: One of the largest increases, I think schools really faced in this past school year.
DTSD Webinars: but by doing so we were one of those rare school districts we were able to keep our meal revenue compatible this year to the reimbursement rates
DTSD Webinars: when it was free for all last year.
DTSD Webinars: So okay, we're faced with increased operating costs. But at least we were stable in that revenue, which was a huge help
DTSD Webinars: so for this school year. and i'm happy to know for you that
DTSD Webinars: we are projected to end this school year with another healthy, positive balance over our operating costs.
DTSD Webinars: But then, taking a look at the 2324 school year. there are many, ifs and I want to make you aware of these ifs
DTSD Webinars: because there are a lot of unknowns, such as will breakfast be free for all students in the State of Pennsylvania.
DTSD Webinars: We presently know that it's in the governor's budget.
DTSD Webinars: but that will only become reality. Once that budget is passed.
DTSD Webinars: We have additional reimbursement money that we're receiving right now, that comes from the Keep kids fed act of 2,022.
DTSD Webinars: Well, these additional reimbursement level stays the same
DTSD Webinars: I figured the reimbursement revenue based on the additional money that we're receiving this year, and that it would stay the same for next year.
DTSD Webinars: So that's a big if
DTSD Webinars: we see no reason that our meal sales will stay as consistent as they are. They're very consistent presently. But if there would be a change there, of course, we'd have a little decrease in our revenue.
DTSD Webinars: and if food costs, percentages continue to stay in line with revenue percentages. we so we expect to see a little change in this area for next school year. So there's a couple of unknowns
DTSD Webinars: based on the continuation of the scenarios that I just mentioned.
DTSD Webinars: We're we're projected to have a positive revenue year for the food for food services in 2324.
Unfortunately, there's a few
DTSD Webinars: additional expenditure costs.
DTSD Webinars: There's due to some accounting changes that are taking place. There's some shift to some funds coming back into food service. as well as some operating procedures.
DTSD Webinars: such as like capital equipment.
DTSD Webinars: Those expenses for for we're used to be recognized under the general fund. So we're taking on those expenditures in this budget.
DTSD Webinars: Now it's only a 100, about 50, some $1,000 worth of equipment for this coming school year
DTSD Webinars: that equipment is just replacing some
DTSD Webinars: almost 30 year old equipment.
DTSD Webinars: We were very fortunate over the last 1015 years to keep up on our equipment.
DTSD Webinars: so that 50 some 1,000 h cost is is somewhat minimal.
DTSD Webinars: But it's not really for improvements. It's just to kind of keep our own
DTSD Webinars: with the increase of expenditures
DTSD Webinars: coming into next school year.
DTSD Webinars: and the increased operating costs. I am projecting an overall loss at this time for next school year of a $168,000.
DTSD Webinars: Keep in mind that's just the best guess. There's many ifs
DTSD Webinars: and many different things can happen from now through next school year that could either positively impact that or negatively impact that
DTSD Webinars: we do have the funds in reserve to cover that loss
DTSD Webinars: with the Federal regulations. Pde department of LED. Child nutrition. They only allow us to keep a fund balance of 3 operating months.
DTSD Webinars: And
DTSD Webinars: so any type of transfer using those funds to cover
DTSD Webinars: that shortfall. Next year
DTSD Webinars: we have the funds available, and it'll bring us in line under that 3 months
DTSD Webinars: surplus that we're able to carry. So we would be okay, going into
DTSD Webinars: the following school year with additional money in the bank.
DTSD Webinars: Be happy to answer any questions.
DTSD Webinars: I'm gonna jump in just to add on to what Mr. Hummel has shared. So.
DTSD Webinars: although there's not, and it wasn't really an accounting change, we paid for a lot of things out of cap, reserve equipment, just equipment, items, ovens, things that really just belong in food service. So it it belong. It follows the the business operation. Now, if it were, if we were remodeling a kitchen really doing extensive
DTSD Webinars: line work with electrical, we could tie it into infrastructure and and upgrade that way that would be
DTSD Webinars: allowable as a cap reserve.
DTSD Webinars: but a a plug-in kind of piece of equipment really follows the Food Service
DTSD Webinars: Fund. What's Not in here? The 168. Now we do have the $150,000 still
DTSD Webinars: budgeted as a food service transfer. That was the one thing to help cover some of those costs. So it wasn't letting food service really do all those things on their own. There's a $150,000 that is planned budget from
DTSD Webinars: general fund to Ford service. But, as as Tom said, there is a lot of talk at the State level, and all. But amongst all our districts Mrs. White and I are hearing about from our colleagues, because there is.
DTSD Webinars: has been such significant revenues and positive bottom line and food service. A lot of schools are actually struggling with how to spend this money. So that's one thing. As we go through next year before we would come and ask to actually have the board recommend. Go ahead and do the transfer.
DTSD Webinars: Make sure that we don't set ourselves in a situation with Pd. That we need to show we're spending the money. So if we don't need to, it's one of those things we keep in watching. If we we need to transfer the money we we we do. If we don't, then the money can sit in general fund, and we we get their cash balance in in to shape. But you know, in in accordance with what Pd. Wants to see.
DTSD Webinars: This is Kathy Sticker, just for my report out of the board. Did you say that for 2 years we had the free breakfast and lunch was at 2, 4 years.
DTSD Webinars: We had a the free breakfast and lunch for last school year, 2,122, and we have free breakfast
DTSD Webinars: this school year. Okay.
DTSD Webinars: So that additional reimbursement and then the increase in meal prices that the Board agreed to go up by a dollar.
DTSD Webinars: really helped us with revenue.
DTSD Webinars: and to cover our expenses and have it another good year. And did you say that we increased staff wages $3 an hour
DTSD Webinars: starting wage.
DTSD Webinars: Okay.
DTSD Webinars: Does anyone have any other questions?
DTSD Webinars: Right? Thank you very much for your report. Appreciate it? Thanks for all you do.
DTSD Webinars: Okay, we're going to move on to cyber school enrollment. So the next sheet just it. Just a quick update on what we've been seeing really no trends. So we're still seeing, following, holding at that 885 students compared to 109 from the prior year.
DTSD Webinars: Again, we have a 1 1.5 million that's in been budgeted for
DTSD Webinars: cyber
DTSD Webinars: enrollment cyber tuition for this current school year. We're currently at 1 million as of March. So we probably will be okay in that 1.5 million keeping that number 1.5 million going forward into 2,324.
DTSD Webinars: All right? Thank you.
DTSD Webinars: Any questions about cyber school enrollment.
DTSD Webinars: Okay, we'll move on to the 2,324 budget update
DTSD Webinars: P. A state revenue. This is something I had shared last month, but wanted to bring it forward again, because it does become part of the you know part of the conversation as we look to what we want to do for a proposed tax increase, and how we want to finalize our our budget.
DTSD Webinars: The
DTSD Webinars: what we've been hearing and still hearing from our our colleagues at Pasbo, who meet regularly with legislators, do not expect a June 30 deadline. The the State will not have a budget in place by June 30. So if there is a little bit of a you know, Gamble, that we take As to what do, what do we think? Supposedly the
DTSD Webinars: there is 570 milliondollars in Governor Shapiro's budget.
DTSD Webinars: He, you know, plan for education.
DTSD Webinars: Democrats seem to think the 570 is the floor Republicans say it's the ceiling. So apparently there's still there's still wide a part on where they're going to land, or you know, if there's going to be shifts, and how they fund the education.
DTSD Webinars: but they still do expect a pretty healthy, significant increase in the State funding. So what I shared last month is Governor Shapiro's budget shows us getting about 21.7% increase
DTSD Webinars: building in currently about 10 and a a Again, as we hear things we can change that that gives us. So if you look to the difference between what a 21.7 and the 10% is it's about $500,000. So as we keep that in mind as we go forward, there's there's an unknown, probably of about $500,000 in our budget from a state revenue standpoint.
DTSD Webinars: feel very comfortable with the 10. Not for about the 21. I know business managers we we did again here from our we had a presentation from our Director of advocacy last week, and she's
DTSD Webinars: wasn't very helpful as to where to land on the budget, and only knowing that they are still far apart.
DTSD Webinars: So just circling back to just keep having this conversation that we'll keep watching it.
DTSD Webinars: 10% is good. So we're still at a good point, and just to clarify, we're voting, and on a proposed budget at the next board meeting May eighth.
DTSD Webinars: we vote on a final budget. The first meeting in June. So so these, if you get more clarity, yes, you would change the numbers in the budget
DTSD Webinars: updates pretty frequently, so as that changes if it changes, and and if it doesn't, we can.
DTSD Webinars: We'll keep going.
DTSD Webinars: We can leave it at a 10, knowing that we might do better and and have it, you know, have
DTSD Webinars: end up with more revenue from the State, which will help close any budget deficit If that's where we land, you know, given whatever tax increase we choose. So there's there's this worksheet we can walk through a little bit later that gives us some options.
DTSD Webinars: So that's this. That's the State
DTSD Webinars: wanted to just share. I won't. I won't spend a lot of time on this. I had shared
DTSD Webinars: in February last 2 months ago, I believe just the or actually just in March projected budget for salary and benefits, salaries being in that estimated column. The percent increase based on those are based on the
DTSD Webinars: percent increases that are already
DTSD Webinars: baked into the contracts. There are. They've already been board approved contracts. So act Act 93 is a 3.7, 5. The Cba, the teacher Cba. This year is a 3.9, and then the support staff is 2.5.
DTSD Webinars: So given some of the question. I'm sorry on these contracts. The is that down here it's 4%
DTSD Webinars: increase. Is that what we're talking about? So if
DTSD Webinars: if we look at what was March 27, those were just percent increases based on year over year percent increases where I would have expected us to come out.
DTSD Webinars: What's now? What we're looking at at 4, 24 is the position based budgeting. We've been working with Hr. In all the positions so that all the positions are in and accounted for. So what? Why, it's over a little bit over 4. Point 4.0 6. Why, it's just over 4.
DTSD Webinars: If you recall, we had agreed to add in a third ot position and lose a contract. So we had changed the contracted expenditures.
DTSD Webinars: My numbers on a percent over percent Don't include a whole new position. So until you add another position and pick up some of those extras. That's where that's coming from.
DTSD Webinars: so I guess.
DTSD Webinars: But you said. But year after year, because of the contract we're looking at like a 4% increase in salaries every year.
DTSD Webinars: Pretty much. Well, the Cba and I forget what it goes down to next year. It's a sliding scale, but it's the this year it was. It was for last. It's 4 in the current year, 3.9 next year, 3.7. Maybe
DTSD Webinars: I I don't know i'll top the the Cba number comes down a little bit Act 93 is holding out a 375 until that agreement is re negotiated, and why it's closer to the 4 versus the 2.5 is so many of the salaries. The high dollars are really in our Cba in Iraq 93 agreement.
DTSD Webinars: And how long? This is that agreement
DTSD Webinars: when when do we renegotiate that contract the teachers contractors
DTSD Webinars: 2 years Okay. yeah, this is the first of a 3 year agreement. Okay.
DTSD Webinars: So that's what that, You know. Those numbers really are what they are. There are positions, and those are the guaranteed increased
DTSD Webinars: because every year I mean that's that's pretty significant each year I mean as far as the whole budget.
Yes.
DTSD Webinars: and that's all part of negotiations, and and working through that process when when we go into that. So I believe, act 93 is next
and
DTSD Webinars: not that you all Don't deserve it.
DTSD Webinars: That's not what I'm saying.
DTSD Webinars: I'm just saying it's. You know it really. So as as the contracts come up for negotiations. That's that's all part of the process is to to work through all of that. But right now this is this is what we have
DTSD Webinars: there. There's nothing that's going to change next year. It's a given what we what we're working with for 2,324
DTSD Webinars: I this is lindsey. True, I think it's important just to add on to that that while the number
DTSD Webinars: sounds, you know startling when you do break it down. When you look at what the step increases are inside of those collective bargaining agreements. When you look at the demands on staff and teachers and administration, and you know the impacts post pandemic.
DTSD Webinars: The state of recruiting for teachers, and the availability of, you know, hiring and wanting to be able to retain. All of those things are inside of those numbers that are, are somewhat harder
DTSD Webinars: to have a tangible feel on when you look at
DTSD Webinars: the the budget impact. But the 4% year over year it is the
DTSD Webinars: collective number of all of the agreements. The largest agreement, which is the hier contract.
DTSD Webinars: had the the the sliding scale. That would be 3.9% this next year.
DTSD Webinars: but from a tax like from an overall budget impact, and what it looked like from the revenue, it was not that kind of increase. It was, you know, a lower percentage, and in the one for 1 one and a half percent range of what would needed what would need to be increased in revenues in order to find those budgets
DTSD Webinars: so just wanted to provide a little bit more background, so that it didn't
DTSD Webinars: No, and that's that's again part of that negotiation process. So that was kind of set before I got here. But it does. You look at what that, what the cost of that increase would be. And then, really, how much of an how much of a tax increase again equates to that. So it's not. The full tax increases going just to the that line. Item.
DTSD Webinars: The piece of it on on the back side did want to come back. I do not have updated. I'm still showing 7.7, the medical still at 7.7. Everything else is a is pretty much a a Given. So, working with our carrier on our Workers Comp. I have that at a 5% right now, we
DTSD Webinars: that it's currently out to market. So we'll see where that comes back. But that's not a significant that won't be a significant shift regardless. The bigger shift again would be the medical still, seeing that 7, 7, and we've had some unfortunate new diagnosis this year that are kind of pushing up our. You know we're getting up into that stop loss a little more than we had last year.
DTSD Webinars: I'm sorry. Who's the carrier? Who is our carrier.
DTSD Webinars: our carrier for the health, our health insurance. We're with high mark. Okay.
DTSD Webinars: Sorry that that's okay. This is Lindsay question on the increase. So last year we saw the medical expense jump up 12.4. Previous to that, it was always estimated to be about a 5% growth in that. You know the health benefits your rear. 7.7% feels
DTSD Webinars: while still about 5% a little bit better. But are you? Is that on a basis of the premium and kind of what, from an industry perspective, we can.
DTSD Webinars: It's start to anticipate that, like the average cost, is going up, or these things that are situational because we're self funded situational. Okay. So the yeah, it's it's a
DTSD Webinars: actuarial valuation based on our member
DTSD Webinars: situations projected into the future.
Thanks.
DTSD Webinars: So that's that's a salary benefit piece. I i'll keep moving.
DTSD Webinars: What did you go to
DTSD Webinars: you? She
DTSD Webinars: that's that's good. We go to the budget final expenses. Actually, do you mind if on back, please?
DTSD Webinars: The for? Yes. thanks.
DTSD Webinars: no.
DTSD Webinars: So I don't I don't. I don't think I have it linked correctly. Then what I was looking at, though, and and you have the sheet on in your packets. The next sheet is the proposed final budget expenses.
DTSD Webinars: and I must not have put it it. I apologize. I will see that it gets loaded. You do have it in your packets.
DTSD Webinars: This is now again compared to what we looked at the end of March a last month. So we've been working through any kinds of changes.
DTSD Webinars: so I I updated the top 2 lines of salary and benefits. So they now are the one they they agree to what we just talked about. Salary benefits, some of the changes. So you'll see. This actually went up a bit. So the total projected
DTSD Webinars: expenses went up approximately 300,230 of that is the salary benefit piece, which was some of those things that we just talked about, the other things that have gone up, or that included in the increase.
DTSD Webinars: We had $41,000 in the budget this current year for the high School sign. We're not
DTSD Webinars: probably going to have that purchase by June thirtieth, so i'm moving money, so we'll have that money really left over. So just that's sort of a wash. We'll have it left over this year, but I want to make sure we haven't the expense line item in the budget for next year. So putting 45,000 45,000dollars into the high school for next year.
DTSD Webinars: The other thing that's coming in here that's driving this a little bit transportation. Mr. Bell had requested a 9 passenger ban, but it came through as a cap reserve request again a van. You can buy a bus out of capital reserve funds. You cannot buy a van, and he would like to replace a 2,007 passenger band that is used for special special needs for a lot of it, or to student transportation. But it's
DTSD Webinars: having some issues that it 2,007. So we really would like to get that 16, that that van, but that is 69,000 that was an add to this.
DTSD Webinars: And then again we talked about athletics. We we did pull back about 45,000, and we did have some professional development like that added.
DTSD Webinars: So those are the most significant changes into this budget again. We're just coming up on the proposed. We still have time. If anything changes the one area I would like to circle back.
DTSD Webinars: This is white, and I need to spend a little bit of time with Mr. Anderson. There's still a significant increase in buildings and grounds just want to make sure that we really have the utility cost Buckle down, and that we're all in agreement with with anything that's driving that, or if there's anything in there that could change.
DTSD Webinars: But for right now that's that's where it stands
DTSD Webinars: and go to revenue.
DTSD Webinars: I just want to spend a couple of minutes. So there is a budget calendar in here, and we did have some conversation last week. As to our our you know our our
DTSD Webinars: could we Possibly not, you know. Wait a wait a little bit, and not do the proposed final at the first meeting and push everything back. Unfortunately, I did work with the county. What happens if we don't Board approve our final budget until June 20 sixth? Our bills will not be in the mail for July one and the county
DTSD Webinars: that does not work, so they need to have all of our final tax numbers by June fifteenth.
DTSD Webinars: which means we have to board, approve our final budget on June 12, so that the county has everything that they need to send off to the printer to get our bills printed, and in the mail before July. One
DTSD Webinars: just wanted to to remind. As Mrs. Sicker mentioned. We will vote on the proposed final May Eighth Keyword proposed. It's still a work of process. It's Still, this is just a pde mandated
DTSD Webinars: thing that we have to do that we we need to file with them. Our proposed final that's been board approved. So this is just as we're working for again. We're we're getting close, and and even in all the lookings that we're doing. We're you know we're trying just to PIN down anything.
DTSD Webinars: Things won't significant, You know. We're not going to find any major major shifts at this point, but if we can, you know, do any changes? We will.
DTSD Webinars: So this and we didn't go to the revenue, and I just want to have time to talk more about the options. So what is on here? If you look down at the bottom? This is, you know we've been saying this, the options of the top, the 1.9 that is still earmarked to move to Cap Reserve, to to to start that building fund for any elementary project. So that's kind of where we we we started this conversations, the one- 9 just specific for cap reserve. Other options
DTSD Webinars: go across the board to 5 to 7 we talked about a 3% last last month, and then our base index, which we're not going to is for one, but that that's the high point
DTSD Webinars: in the middle. There's your meeting Assess values. Those have not been updated have not gotten any information from the county. I will tell you, too. I have not updated the county tax role. I actually got numbers from them last week, which showed a slight decrease which I am baffled by. So i'm working with the county right now on our
DTSD Webinars: taxable assessed role.
DTSD Webinars: So down to the bottom. Where does that leave us? Really? So looking at? And and I, there is a revenue spreadsheet to come. But I we're not going to get there. So I did adjust revenues. I stripped out the tax increase. So what you're seeing right there in the proposed final revenues
DTSD Webinars: is a flat tax. It's so. There's no tax increase so that we could really just look at this and see the impact of any tax increase where this could possibly land as bottom line
DTSD Webinars: so.
DTSD Webinars: and then the expenses. So if we look, if we at any point in time, so the given where we're at right now with revenues. any expenses. If we do. one of those tax increases you can see that bottom line is our net number, and that's what we're working with and goes back to again. Do we? Do? We think we might get 500 or a couple of 100,000 more from the State to try and help close that gap. Really it it depends.
DTSD Webinars: Where do we want to land as our bottom line?
DTSD Webinars: And what are we thinking that we want to bring forward
DTSD Webinars: for both the proposed final and the final budget in June.
DTSD Webinars: but right now, primarily just to bring forward a proposed final for May. I will present at the May Eighth Board meeting, and we'll vote on the proposed final that evening.
DTSD Webinars: So this is Kathy Sicker. I think you're going to have to put forth a 2.7 for the proposed. but then we hope it goes down for the final.
DTSD Webinars: and if you only budget for a 1.9. That's a 1 million dollar deficit that's too high.
DTSD Webinars: What else can we?
DTSD Webinars: I don't know. I think we had it, and we've discussed this, I mean, we had a
DTSD Webinars: good-size increase last year.
DTSD Webinars: and I understand we want to the 1.9 is kind of earmarked for the school or the potential school.
DTSD Webinars: but to just keep I just I I don't. I think we have to try and see what else we can find in the budget, because you can't just depend on.
DTSD Webinars: you know. a 2, 7, a 3, a 4 every year. If you want to put the 1.9 aside.
DTSD Webinars: you know. and the the goal really is that one night it 1 9 is earmarked for next year, and then to look at it on a sliding scale downwards, as as the you know, as as the base builds up, and as that money's shift over and it's. It's it's earning interest income. We had talked about some of those things, so then we could start cart you. We we could start pulling back on that number
DTSD Webinars: as the conversation, too, If we can get a couple of 100,000 more from the trust that's going to make that number look different
DTSD Webinars: for the next con, you know the but I think we're going to have different conversations in 2,324 for 2,425. Then what we're looking at right right today to make sure we're set
DTSD Webinars: for next year. Well, the other thing it's it's a 2.7% increase on the millage. So if the median assessed value is 162,000. That's $85 more a year
DTSD Webinars: So you have to calculate the value of your house
DTSD Webinars: to determine how much your dollar goes up. So if your house is 500, the say 600,000 or 500,000,
DTSD Webinars: it's gonna go up 85 times whatever that 162,000 is. So I think you have. We have to be able to clarify that it's a percent increase on the millage.
DTSD Webinars: Not an overall increase to your whole tax bill.
DTSD Webinars: but it's still compound each year for these people. So correct, you know, I mean, and
DTSD Webinars: with you know the economy the way it is, and I mean that for some people
DTSD Webinars: you know that that can be a lot of money.
DTSD Webinars: It's just something I think we need to be cognizant of. And I you know.
DTSD Webinars: I mean, even if we go up 2.7,
DTSD Webinars: we're still in a deficit, right? So we can't even put that money. Or was that already? We're putting some of that money? The 1.9. Is it's automatically? Yeah.
DTSD Webinars: I don't know. I think kind of like last year. I feel like some of this needs to
DTSD Webinars: kind of fall in place. I don't know
DTSD Webinars: this is Lindsey drew so
DTSD Webinars: to Mrs. Schmidt's point. I I agree that
DTSD Webinars: the pain is real right. I I personally i'm a single income household.
DTSD Webinars: I feel every increase personally
DTSD Webinars: that being said last year 3.4 was
DTSD Webinars: a large jump after not having tax increases for several years, and the ones in the most recent history were for very specific purposes that I think were well managed to be as small as possible to expand for full day Kindergarten.
DTSD Webinars: So when you look at long term
DTSD Webinars: it isn't the the largest jump. We know that 3.4% inside of what the index was last year. What all other neighbor, you know, neighboring school districts and across the commonwealth
DTSD Webinars: that I think that there were. I read there, maybe like 2 school districts in the State that didn't
DTSD Webinars: increased taxes last year, because of you know, so many of the same issues
DTSD Webinars: that we face.
DTSD Webinars: I recognize why we need a tax increase this year. My concern is over knowledge and information, and the way that it's presented, and I understand the Budget calendar. But
DTSD Webinars: we're having these, you know, conversations here at the Finance Committee level with 4 of us
DTSD Webinars: from the board.
DTSD Webinars: I worry that we don't that we're not prepared, you know, for for folks to understand what's inside of that that there, Hasn't been a lot of conversation around what that 1.9% means, because we're
DTSD Webinars: we're planning for the future. And what we need the base to grow in order to be able to service the debt for a building that, I think we all agree needs to happen, but I don't know that there's necessarily
DTSD Webinars: a public understanding, or even a boardwide understanding of what that you know need is so
DTSD Webinars: it does make me apprehensive just because I
DTSD Webinars: well, I get it because we're in these numbers. And having these conversations.
DTSD Webinars: I I don't know that it's well understood, but I also don't see where expenses can really come down, you know, if it's a $300,000 increase in expenses, but 230 of those are committed, and there's nothing we can do about. There's $70,000
DTSD Webinars: in an increase of expenses that
DTSD Webinars: I don't see where you take it out, you know, or or what is potentially something we can afford to give up. So the
DTSD Webinars: so rock and a hard place. But
DTSD Webinars: the unknown of the the State budget hurts too, because, even if it comes in at what the projected is based on the governor's budget that only gets us to the 2 and a half offset.
DTSD Webinars: Oh, this is Kathy Sicker. So I do want to remind us of. One thing is that the the State sets the index, the the State set the index at 4.1, and unfortunately, this is the way
DTSD Webinars: we fund public schools in Pennsylvania. We are a taxing body that taxes people who own properties in our school district. Other States do it differently.
DTSD Webinars: There's no property tax in Delaware. I don't know how they fund their schools. This is. This is kind of the what we've been given on how to run our public school system. We're not going anywhere close to 4.1, and we decided not to go over it.
DTSD Webinars: The reason they set an index is because, historically, you know, 20 years ago there was no index, and with no with poor planning on a school board they were like. Oh, we have to build a building 20% tax increase.
DTSD Webinars: So I do. Some people are following it. I did get a thank you email from a constituent who follows what's in the paper? It's been in the paper for many weeks that this was coming, and we've had many presentations since September. About the 1.9 for 4 years to build the elementary school
DTSD Webinars: he set. He remembers the 20 something percent increase so many years ago, when there wasn't planning, he said. Thank you for planning for 4 years a small incremental tax increase.
DTSD Webinars: I do hear stories of school districts in Lancaster County who are doing much larger tax increases over 5 years to build high schools and stuff like that.
DTSD Webinars: 1.9 is very small. I understand it's painful. It's not. You know we're not going to make everyone happy here
DTSD Webinars: with the job we've been given. We're not going to get make people happy. but
DTSD Webinars: it's what it's with. Parameters of what we've been given to, and I don't want any services to be cut. I do think Cheryl has gone to Department Department and looked at. Where can we cut?
DTSD Webinars: I don't think any of us want any more cuts. I don't want to see athletics cut anymore. I don't want to see the music program cut any more. And we've we've we've negotiated these contracts in good faith with our 3 groups
DTSD Webinars: that I just think this this is where we're at. So it is 603, and I want, you know we can continue for a couple of more minutes. But we do need to vote on this to send it to the board, and then Cheryl will have a presentation. Mark may, as
DTSD Webinars: and then a board vote
DTSD Webinars: on the proposed budget may 8 as well, so that we can stick with this timeline. So it's it, Mike, you have. Does anyone want to say anything Who hasn't said anything?
DTSD Webinars: You're fine. Okay, Erica, you want, or Lindsay any other comments or citizen advisors.
DTSD Webinars: I'll just add, Kathy. I I I understand completely what you say. I agree with it.
DTSD Webinars: I would just ask, like in the report out to the Board in the presentation, that we
DTSD Webinars: refer people back to these conversations to remember that it's not necessarily like an arbitrary number, and I think that there, you know, are a lot of things supporting that. And
DTSD Webinars: I think that this is the best scenario. You know that we could be in it.
DTSD Webinars: That being said, recognize that it's a difficult conversation. I this Josh, have a quick question.
DTSD Webinars: so it shows deficit on all these numbers where the deficit number does that come from general funds, the funds that are already safe back. So we're basically decreasing
DTSD Webinars: capital. What it not to her to trust with his other.
DTSD Webinars: Where where those funds come from, it's, it's the general fund balance that we've got about 10 million dollars in there. So it it'll just take out of there basically.
DTSD Webinars: So you're not saving it. Does that mean that under any of these scenarios there's no additional savings right. There's savings and cap reserve because there's a the 1 million. There's a 1 1,750,000 that will go to cap reserve, one for
DTSD Webinars: operations and one for the 7. This 750,000 is the 1.9 tax increase that's that's pretty much where we'll see savings is that but no; that these scenarios would take away from general fund, unless we see additional revenue from the State, or from another source.
DTSD Webinars: which, even with that that was about half a 1 million. So I mean you mentioned 2 7, I mean, that's
DTSD Webinars: still a break, even point no additional savings
DTSD Webinars: just out of curiosity where we are year to date, based on budget last year, Are we still predicting
DTSD Webinars: a deficit of 72,000?
DTSD Webinars: I I think? No, because we have we? We still have money. That was
DTSD Webinars: extra from the State this year that was not budgeted. So we we will have bottom line revenue.
DTSD Webinars: So we are getting savings in the current school year.
DTSD Webinars: do we, one of Are we okay to put forth a motion for the budget at a 2.7 to send to the Board for May eighth. and then the Board can have another presentation from Cheryl and a vote that night.
DTSD Webinars: Can I have a motion to approve the proposed
DTSD Webinars: budget with a 2.7% increase to millage
DTSD Webinars: and to send to the full board for May eighth
DTSD Webinars: presentation and vote. Okay.
DTSD Webinars: how how did that happen? We we were still not talking like we just decided that's what it is. Well, we have to pick a number. So that's what I'm. I'm kind of throwing that out there like we were at 3% last meeting.
DTSD Webinars: and we can't go down to 1.9. We have to send something to the board for this. And why can't we do 1.9. Because we're going to have too much left over?
DTSD Webinars: Well, that protects a 1 million dollar. Definitely. That's just for the for the school.
DTSD Webinars: just for the transfer for the elementary scoring and to build the base for the future. Yeah, no, I I I hear you, and I hear I
DTSD Webinars: I really do. I Just I remember how I like. Last year I was very confused on how all of a sudden it kind of
DTSD Webinars: you know there were questions and what not.
DTSD Webinars: Well, so then, I have a motion. There's no
DTSD Webinars: no so moved, so there's no motion on the table.
DTSD Webinars: Nobody said so move, Nobody said second, so
DTSD Webinars: somebody else can make a motion.
DTSD Webinars: so I I think we what we're looking at here. Miss Spit is just
DTSD Webinars: proposing something to go to the next board, so that Miss Purcell has something to put on paper doesn't mean that this is the final. We still have to have that discussion. This is just taking. This is just voting on a motion to go to the to the board.
DTSD Webinars: so if we go higher we can bring it down. If we go lower.
DTSD Webinars: I I don't know if we would have to go back to finance to go higher than right.
DTSD Webinars: That's exactly where my thought was that we send forth a 2.7
DTSD Webinars: as a proposed
DTSD Webinars: hoping it goes down. But okay, we're waiting for some more numbers to come in no no higher than 2.7 from out we're we're recommending that as a finance committee
DTSD Webinars: no higher than 2.7, but but it's in reality the Board may be voting on that. This number may aids. and then that number, or a different number in June. I don't know.
DTSD Webinars: Okay, we'll have. We'll have, and this is just the proposed final. Again, it's a step in in the state process. We move this on it's numbers on paper. For May eighth
DTSD Webinars: we come back to finance, and we keep doing the work that we're doing. And hopefully we hear you know more final numbers from the state we come back the end of you know the May Finance may 20 s have this conversation there, and then really solidify where we're going to land in June.
DTSD Webinars: and I think when we look at it 1.9, the deficit projective would be almost a 1 million dollars. 2.7, is 479, 2.5 is less than a 100,000 from there. So if we start at 2.7 to have the conversation. See where the numbers come out.
DTSD Webinars: 2.5 and 2.7 are not very far off. In the grand scheme of the total budget. 2.7 gives us that that conversation point
DTSD Webinars: to dive in, and really, you know.
DTSD Webinars: understand where this is all coming into.
DTSD Webinars: but but gives us room for conversations, so I would support a motion for recommending to the full board a proposed budget with a 2.7% millage increase.
Okay.
DTSD Webinars: So you want me to restate the motion.
DTSD Webinars: Okay.
DTSD Webinars: may I have a motion to approve the proposed budget
DTSD Webinars: with no more than 2.7% village increase for the 2324 school year, and sent to the full board on May eighth.
DTSD Webinars: So move microsoft
DTSD Webinars: second Lindsey Drew. Is there any discussion
DTSD Webinars: We've already had the discussion. Please encourage all board members to listen to these meetings ahead of time before this budget presentation at the next meeting, so that we can be prepared for dialogue and conversation amongst the board.
DTSD Webinars: because I know that there's a lot of numbers and a lot of conversation, and it's a lot to digest
DTSD Webinars: all those in favor, say I.
DTSD Webinars: All those opposed say no. Okay. So we're that motion passes.
DTSD Webinars: We did have it's 6, 10, we're a couple of 10 min over. We have contracts on here.
DTSD Webinars: Anyone have any questions or concerns about contracts. Those will go also. Go to the full board as well. This coming through committee. Anything else for the good of the order.
DTSD Webinars: Okay, may I have a motion to adjourn the Finance Committee being at 6, 11?
DTSD Webinars: Second, Lindsey? True. Okay, the meeting is adjourned. Thank you.