Dr. Susan Legutko, Assistant Superintendent for Business Affairs, presented the tentative budget for the 2024-2025 fiscal year and explained how the rollback rate is calculated (copy of presentation attached to agenda item).  She reported that the total millage rate to be levied exceeds the rollback rate by 1.54%, so the district will be required to advertise a tax increase.  The first public hearing on the millage rates and the tentative budget will be on July 30, 2024.  The proposed annual budget for all funds for the 2024-2025 school year is $660,888,723.  The unassigned General Fund balance on June 30, 2024 is estimated at 4.72%, with an estimated 5.00% on June 30, 2025.

Board members requested to see breakdowns/rationales in each category regarding specific budget changes from last year to the current year. Dr. Legutko will provide that requested information at the public hearing on July 30, 2024.  The impact of the tax base on the fund balance was discussed.

Bryce Ellis, Assistant Superintendent of Operations, addressed the Educational Facilities Plan (EFP), which will be presented in full at the July 30, 2024 meeting.  The EFP lists all projects along with each funding source.  Hardening of schools projects include a continuous maintenance cycle as fences are replaced, doors and windows (particularly on older schools) are addressed, cameras and technology are upgraded, and a required panic alert system is implemented.  Mrs. Clark requested additional information be shared re buildings being constructed to replace portables, and Mrs. Ellis noted portable reduction is still embedded in the plans.  Mrs. Bolla noted the necessity of the one mill to continue funding both the required School Resource Officers and hardening of schools projects.  Dr. Legutko advised the State provides $3.4M funding annually for safety and security.  Mrs. Clark noted that School Resource Officers are fully staffed and CCSO will return any unused funds at the end of each year.

Dr. Legutko noted that, as CCDS' debt goes down, financing capacity increases.  Mrs. Clark asked about leasing vs purchasing of buses, and Mrs. Ellis advised they are currently examining those options and it seems to be financially best to exercise the option to purchase at the end of the lease.  Mrs. Hanson noted that, with new school schedules, there may be a need for more buses to transition students at the same time, and Mrs. Ellis indicated there will be an agenda item in future for the purchase of additional buses.

Bryce Ellis, Assistant Superintendent for Operations, indicated that the Educational Facilities Plan documentation is attached to the agenda, and the EFP will be presented in full at the upcoming special meeting/public hearing on July 30, 2024.  The presentation will include a portion on the growth experienced in Clay County. The agenda attachments delineate funding sources for capital and definitions of categorical funding. 

Roger Dailey, Chief Academic Officer, noted that these policy revisions are driven by statutory changes and new requirements.

Mr. Dailey noted that the State provides some support due to a need to adhere to students' mental health requirements.

Roger Dailey, Chief Academic Officer, commended the Business Affairs team for their work on the budget, acknowledging the multiple moving parts and funding sources for which they are responsible.