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COOP Budget Committee Meeting 8/20/2026

Video

With the quorum present, I'd like to
call the the co-op budget comm the co-op
budget committee to order at 6:37 p.m.
Tonight's meeting is a regular meeting
um which normally occur on the fourth
Thursday of the month but due to some
scheduling conflicts we've um we
scheduled a week early and we're at the
third Thursday of the month or is that
actually is this the fourth or fifth?
Anyway, we're a little No, it is the
third Thursday of the month. So, um I
would like to introduce myself, Darlene
Mann, and the members present this
evening who include Raul Bonet, Melanie
Le, Tom Enright, and Tony Sinizy. Dave
Blind is stuck in traffic. Um Tom Solon
and Brian Rder will have excused
absences. I'd like to also welcome Lance
Fino, RBA, and Tim Green, our auditor
for the district. If you could all
please join me in the pledge of
allegiance.
[clears throat]
>> I pledge algiance to the flag of the
United States of America and to the
republic for which it stands, one nation
under God, indivisible, with liberty and
justice for all.
I'd like to just say I appreciate
everybody's flexibility and kind of
adapting the schedule a little bit this
summer. Um we have been off for a bit
and um due to some quorum issues which
we've never had in the past. Um this is
our first meeting in a while. So um
there were a few things to cover um that
would have been on earlier agendas that
we're going to I'm going to include as
we work through the budget process in
September and October. um in the
interest of just kind of keeping the
meeting moving this evening. So um the
first thing I would like to do is ask if
there are any ad agenda adjustments from
anybody this evening. Okay, seeing none.
Um let's see. August,
um
okay, Tony, you're going to be our our
meeting observer this evening. Um the
few pe few people that were um next in
line aren't here this evening and and
we'll go to the approval of minutes from
our
April meeting uh which was on April
23rd. So, um, oh, I do just want to pull
up one quick,
um, email.
Don usually gives me
um a
format for this evening's meeting.
Um that identifies
apologize the changes that would have
been
I'll get it. I swear.
Are you looking at
>> I'm looking what Don usually provides to
me is an outline that talks about the
the amendments and changes to the August
uh April minutes.
>> Yeah. And there were like four or five
lines of pace changes.
>> Yes. And so I just wanted to read those
into the record. And I I don't want to
hold up the approval
for tonight's meeting. It should be here
on there. Just
>> do we know who attended the meeting and
who did?
>> I do have who attended. I have um Raul,
Tom, Melanie, Brian, Tom Solon, who's
non- voting, and Tony. Um Dave Blind
um was absent.
I really don't want to hold these up and
I apologize.
I am going to hold these minutes because
I'm sure there were amendments and
changes to them and I just can't
articulate them at this point. So, we
will hold this over until September and
we'll um I'll make sure that I um read
the amendments into the record then. So,
I apologize for that. Um moving on to
the
public input. Seeing none present, we'll
move right to the general business
section of our meeting, which is as
typical for the last I don't know how
many years you've joined us, Tim. We
have um Tim Green from Roberts and Green
here this evening to do an um audit
review of the audit of the FY25
fiscal year. So the fiscal year that
ended last June, not this past June. Um
as is typical over the summer, the
auditors come in and do the full audit
on four entities um in uh SAU41. That
fieldwork has been completed at this
point and now um your team will go and
finish all the components of the audit
for the FY26 year. So, what we're going
to um have an overview of is from FY25.
It's the prior year's audit and I shared
um with all of you a link to the audit
that's posted on the website. And at
this point, I'll turn it over to you.
>> Well, thank you. Uh yeah, once again,
[clears throat] happy to be here. I
appreciate you having me in to go
through this. Um, [clears throat] I'll,
as I think most of you have sat through
this before, but for anyone listening
who hasn't, I will attempt to be concise
because there's it's a pretty thick
report. Um, I'm going to kind of give
you the the breakdown of how it's
structured and and what's in it and
then, you know, just go through some of
your figures. Um, and then answer
[clears throat] any questions you have.
Uh, happy to do that. So, as I explain
every year, uh, what we're hired to do
is actually provide you that two-page
report in the front. That's that's our
opinion on your financial statements. Um
we opine whether or not you fairly
presented in all material respects the
position of the school district for the
year ended June 30th, 2025. And once
again, we're you know pleased to to
present a report that is a cleaning
opinion. It's an unqualified opinion
across all of your opinion units. You
have multiple reporting opinions. you
could in theory have an an adverse on
one opinion and and unqualified which is
a clean opinion on other areas. Uh but
that has not occurred in the school
district as long as I can remember. Um
and if it had it was
any school district typically has an
adverse when they can't implement a new
pronouncement timely. Sometimes uh
pronouncements take a couple years to
kind of get on board. So uh beyond that
again the co-op the cooperative has not
had a adverse opinion that I can recall.
Uh so the autos report pretty standard
pretty familiar with what you've seen.
One thing that was new this year was
this paragraph called change in
accounting principle. Um, as always, the
government accounting standards board
implements new pronouncements every
couple years that they they do their
research down in Connecticut and and
decide that something needs to be
tweaked and modified and how they
present how any government presents
something. So, this year was um or
excuse me, the 2025 fiscal year, the
school district had to implement Gatsby
101. This was a change in how you report
your compensated absences on the full
acral basis. So that means the first two
exhibits which are considered
governmentwide statements, they combine
all your funds that are not fiduciary in
nature and you have a little bit of that
but they combine all your funds into one
column and they want that to be
comparable to a business statement. So
this is on a full acral basis. So this
is where you have your capital assets,
you have your long-term debt. So what
that new statement said is instead of
only capturing compensated absences for
sick and vacation things like that that
are payouts to an employee when they
leave the district through retirement or
termination they actually Gatsby now
says really should be showing this
long-term liability for carried
balances. So, if you're allowed to roll
your sick time forward despite not being
paid out that lump sum if you leave
because an employee can actually use a
sick day, that is a liability that's
already been earned. So, on a full
acrual basis, the district now says,
"Okay, all of our teachers and employees
and everything non-union, they all have
the sick time that they can roll
forward." That's a liability. Again,
it's not a general fund liability
because a general fund you're worrying
about budgeting for your 365 day period
and you can only, you know, you're only
going to pay a salary. The sick time
kind of replaces the, you know, your
working time and so on. So, it's not an
extra payout. But on a full approval
basis, employees have earned this
benefit. Therefore, the district has a
future liability. Um the district did a
lot of work to implement that because it
requires an estimation of how much time
someone has that they will actually use
and not let it lapse and disappear. So
using historical data for a sample of
employees is is typically the method
that a lot of schools use and that same
thing your HR department here did. Um,
but so having [clears throat] said that,
you'll see that there was actually a
restatement of your beginning net
position of uh just over $1.3 million
decrease because you had an additional
liability for that new way of
calculating your your compensated
absence.
Uh, again emphasize it's not a budgetary
factor because you're budgeting again
for that contract amount or those weeks
that you know your employees going to
work whether or not they're using a sick
vacation day or a work day.
Um so the next section is the management
discussion and analysis. This is
prepared by the business office. Uh we
make sure and we help with making sure
the figure the um actual charts of
financial data correspond to the
financial statements themselves. Um we
don't provide an opinion on it. We just
say whether or not it's presented and if
it is presented um [clears throat] again
if it were we wouldn't let it get into
the report if we hadn't looked at it and
said it it corresponds with your data.
So it's not really a [clears throat] an
issue. So it's just um there are
standards that require what goes into
this report and they actually have
changed for fiscally 26. So I'll be
working with the business office to let
you guys know because you may not be
aware of this what should be in it, what
shouldn't be. Um and then they'll go
forward from there.
I don't go through any of that. Um it's
pretty self-explanatory. You're required
to discuss significant changes in the
budget, significant changes in actual
and the differences.
So I'll move right on to the basic
financial statements. These are all the
exhibits in the front. Starting with
exhibit one. As I said, these are full
acrual statements. These are
governmentwide combination statements.
Bottom line, you can see total net
position is uh three almost 3.7 million.
Of that you it's actually broken down
into four categories. You have net
investment in capital assets. So that's
a total of all your assets less all the
liabilities related to those assets. Um
so [clears throat]
that's a positive number of over $18
million. You have um significant assets
and you really don't have a lot of
outstanding liabilities related
outstanding debt related to those
assets.
U you have restricted for endowments
50 to 60,000 roughly uh split between
non-expendable obviously you can never
touch that endowment and then the
expendable portion which is the income
earned on that endowment which can only
be spent of course for the purpose
within that endowment. And then you have
an unrestricted fund balance,
unrestricted net position, excuse me, of
a deficit of 15 million. Primarily
deficit is you have a $17 million
liability to the for to the retirement
system for your share of the total
liability. Um, as I've discussed in the
past, and I'll reiterate, you have no
asset that corresponds to that
liability. Therefore, that is why it
puts your unrestricted into the deficit
position. Um, nothing really I could say
that you could do about that. You don't
want to, you're not trying to pay that
off. You're just try, you're just trying
to raise inappropriate your annual
contributions to the system. Those
contribution amounts are actuarily
determined to supposedly to you know pay
off that liability over the long term.
So it will in theory uh go down but
actuality when you have a change in
interest rate or you have a change in
discount rate it just fluctuates. Well,
but without those significant related
assets, that's hence the deficit
position. On exhibit two, you can see
that the change in the net total net
position for the school district at the
year end June 30, 2025 was an increase
of almost 1.5 million. But with that
$1.3 million restatement, that was the
decrease. Uh you can see how you began
uh your restated fund bal your restated
net position began at 2.2 million and
ended at 3.6 million.
uh the previous net position that was
reported prior to the restatement was
3.5. So you so
it was essentially a a $100,000 increase
from the year before prior to the
restatement.
Uh exhibit three and five, these are the
modified acral basis. So this is your
general fund, uh food service fund,
permanent fund, and your smaller other
special revenue funds. Here you can see
what the u where you ended at the
general fund, the balance sheet of the
general fund. Total assets 3.3 million.
Uh you had cash, you had
intergovernmental receivables which uh
represented money held for your trust
funds. And you had prepaid assets of
360,000 which was a larger number than
normal. And that related to um some
technology that was purchased in June
for the next year. So that's a prepaid
comes out of next year's budget. And
payroll when you have a direct deposit.
Sometimes the bank will depending on the
timeline the bank will withdraw that
money at the end of June and it's your
July payroll.
>> So that will that's considered a prepaid
because you've lost your cash asset. So
you actually report a prepaid asset so
that your total fund balances right
where it should be but [clears throat]
you don't actually have those resources
to spend in the future. So,
[clears throat] uh, total liabilities
was only about 300,000,
mostly accounts payable and acrewed
payroll. And then you were left with a
total fund balance of just about $3
million. Of that, you had 360,000
non-spendable, which related to those
prepaids. You had committed fund balance
of a million. That's your trust fund
balance plus the roughly I think it was
the same last year, $425,000 that's
voted in March during the fiscal year
for the next fiscal year. but to come
out of fund balance. So you so as soon
as that vote happens, you immediately
commit it and set it aside so that it
doesn't get returned. Uh you had
assigned fund balance 460,000. That's
open POS and other types of
incumbrances. And then you're left with
your unassigned fund balance of
1,150,000.
That is a increase from the year
before's unassigned fund balance by
about 30,000. So right in line with your
results from fiscal year 24. Uh food
service, you can see $500,000 in assets
roughly. um minor liabilities $6,000
deferred deferred revenue of 38,000 that
represents either uh prepayments by
students that that rolls the next year.
So it'll be revenue when they use it or
uh any commodities that the federal
government has given you um that you did
not use yet. Those get deferred until
the next year as well. Uh so you can see
the food service fund balance you had
non-spendable fund balance of 15,000 and
a committed fund balance of 430,000.
That committed fund balance is a
decrease of 50,000 from the year before.
Um and as you see in the end there's
been a finding because food service
program is not allowed to have fund
balance that's greater than three months
average expenditures. Uh it's considered
net cash resources. It's supposed to be
a a zero balance type of a fund. Uh
you're not supposed to lose money, but
you're not supposed to make money. So,
so because of essentially because of
fiscal year 22 and 21 when everyone got
a free lunch um and the federal
government was giving a lot of
reimbursement money that most school
districts couldn't spend fast enough
co-op had a
significant fund balance that they've
been working to get rid of and I can uh
report that you know preliminary figures
from fisc 26 show that you have actually
fallen below that line that you won't
have that finding this year.
The other major fund for the district is
the permanent fund. Again, these are
endowments held by the trustees for the
town on behalf of the school. Um
$570,000 at the end of June 2025. Of
that $470,000 is the permanently endow
the endowment that can be touched. So
you have about $100,000 of income earned
on those uh funds. And then you're not
you have a non- major fund. this other
governmental column uh combined
statement is in the back, but it's about
$330,000 primarily in cash. Uh
$20,000 of liabilities and a remaining
fund balance of just over 300,000.
Exhibit four and exhibit six, these show
the differences between that full
acrruel statement and the general fund
modified statements. You can see what
gets reported on exhibit one versus what
does not. Um, and it's same with how
what's an expenditure in the general
fund is not an expenditure in the in the
full acrruel basis. It's actually a
capitalized item, but you record
depreciation on the full acrual basis
where you do not budget or record
depreciation in the general fund. And
that's in accordance with accounting
standards.
Um, briefly on exhibit five, this is
your statement of revenues,
expenditures, and changes in fund
balance. Total revenues for the general
fund over just over 29 million. uh food
service revenues were almost 700,000
and your other governmental fund
revenues was just over 900,000. Uh the
bulk of that would be your student
activity funds. Those are reported as
special revenue funds. So
[clears throat] those tend to bring in a
lot of money and uh expend a lot of
money relative. Um general fund to
expenditures was just over 29,000. Um
you had an excess of revenues over
expenditures of 324,000.
uh there was a small transfer into the
general fund of $80,000. Um this is from
some of that income earned in those
permanent funds, those endowments. So
you had a so you had a net change in the
total fund balance of 330,000 uh from
the prior year in the general fund.
Whereas you can see the food service had
a decrease in fund balance of almost
50,000
and your permanent fund had gains on
investments of you know net gain on
investment of about 27,000.
Um just comparing the change in fund
balance the year before you had a total
change in general fund fund balance of
414,000. So again 330 to 414 it's it's
roughly in line I would say. Um and
again your total unassigned went up
30,000. So um when you have a fund
balance classification such as a
non-spendable it comes out of your
unassigned and then it goes back into
the unassigned. So if one year is
greater than the next year you have a
you actually see a a bump in your
unassigned and vice versa.
Exhibit seven, this is a budget to
actual report for the general fund. This
shows your your budget uh by function
and your estimated revenues and then
your actual results. So you can see uh
across that first subsection the total
revenues there was a positive variance
of revenues over estimated revenues of
155,000.
uh that subtotal line for expenditures.
You can see that the actual expenditures
compared to the appropriations was uh
under budget by just over a million
almost 1.1
and your net so that your net change in
your fund balance your net change in
your uh budget your budget result was
1.2 million.
That figure [clears throat] is roughly
4% of your general front appropriation.
It's not apples to apples because it's
including your revenue uh result, but so
if you're just looking at that $1
million um on your expended
appropriations, uh it would go down
obviously a little bit, but that's
basically it was 3.8% of your total
appropriations year before. That same
number was 4%. So your rate your result
wise was pretty consistent with the year
before and really for the last three
years.
uh the 22 and 21 years. There's a lot
more uh spikes on that. So,
exhibit eight, this is the food service
budgetary statement. Um
discussion point I'd say on this that
budget amount I don't think has changed
in a number of years. Um proper
budgeting for food service and for
grants as well is estimated revenues
from federal, state, and local sources
is equal to your appropriations for
those funds. So you never have a tax
impact unless you think your food
service needs to be subsidized. But
again, you have you, as I discussed,
your fund balance is so great that you
definitely don't need a subsidy for the
for food service program for a few more
years, I'm sure. Um, but you do want you
do show uh on paper you you're showing a
overspent budget because you're just
putting in that place mark amount. Um,
so it's something to think about because
obviously you're going to increase your
bottom line appropriations by increasing
that figure, but again, there's zero tax
impact on these funds. Um, and there
shouldn't be when you budget it for
sure. So,
but because it's a major fund and a
budgeted fund, you you are required to
put in a budget to actual statement.
Uh, I'm not going to highlight anything
in the notes specifically unless there's
questions in which we can refer to, but
these are designed to explain the first
section explains the reporting entity
being the school district. um the
accounting principles you follow so on.
Um and [clears throat] then the second
section discusses budgetary
uh activities um and any deficits if
there were one and which you did not
have one. And then the third section and
the fourth section are basically um
detailed notes to support your
significant balances that you're
reporting um as well as other items. Uh,
[clears throat] so I'll just jump to the
back.
Exhibit 13 and 14. These are on page 46.
Starting on page 46, these are combining
statements for the non- major funds. So
you can see all the funds that go into
that non- major fund column that you
had. Again, you have student activities,
you have an athletic revolving fund, you
have a miscellaneous fund, and you have
grants.
Uh, primarily assets are cash. Uh,
grants have receivables. Those are
reimbursement based. So you should you
never have uh cash in the grants fund
again 14 statement of revenues
expenditures for these non- major funds.
You can see uh grants is about $500,000
uh program this year or this year that
we're talking about the student
activities about $200,000 of income.
athletic fund had about 90,000
miscellaneous items that you have which
vary from local grants to donations to
um [clears throat]
a whole host of projects and programs
that you have there. I every year I
discuss with the business office a way
to if there's ever a way to clean those
up and reduce them. But it's because it
is a administrative bookkeeping kind of
task to track every single one of these
accounts that they have. But they also
you also are required to treat them
separately from a one-time use type of
you know if you get a donation for a
specific program and you just don't have
that program going on the donation has
to sit somewhere until you can use it.
So things like that as example.
Um [clears throat and cough]
the last three schedules are the general
fund more detailed budget to actual. You
can see individual lines for revenue
estimates. Um again, [clears throat] so
you had about $160,000 positive uh
revenue result. So actuals over
estimates.
It kind of was across the board. You can
see he had some intuition. You weren't
expecting uh investment earnings. You
were probably conservative in your
estimated uh return on investments,
which is a safe practice. Um and then
catastrophic aid from the state, which
you don't control, was higher than you
estimated as well. Those are the three
primary drivers of how you ended up at a
positive revenue results.
Exhibit 16 is the same, but for your
expenditure side of things. Uh you can
see the first column is incumbrances. So
the school district carried forward
$430,000
of essentially of appropriations from
the prior year. Um you add to that the
30,000 30 million $238,000 general fund
budget.
Your expenditures which include
expenditures on prior year items as well
as current year items uh was just over
29 million. And then you also carry
forward another $460,000 of the budget
to be expended in fiscal year 26.
That left you with a positive variance
again of just almost $1.1 million on
your appropriation side.
Exhibit 17's a scheduled changes in your
unassigned fund balance. Uh you can see
you started the year with 1.1 million in
unassigned fund balance. Uh 425,000 was
voted from that fund balance to go to
the trust funds in the March meeting. So
that was set aside and then uh 658,000
remaining was used to reduce the school
district assessment. Um some diff slight
difference in the totals there because
of probably last minute adjustments that
occur after DOE25 from the DOE25 which
is due September 1st and typically state
gives school districts an allowance to
September 30th. Those figures can change
with final audit adjustments. So there
sometimes is a is a split there. Uh but
it will always catch up the year after
because [clears throat] you will correct
the DU25 beginning balance and it will
all flow back to where it should be.
Uh you can see there's again there's
that budget surplus of almost one 1
million almost 250,000.
Um and then an increase in your
non-spendable fund balance of $130,000
from the year before reduces your
unassigned. So that's how you get to
your 1,150,000
unassigned fund balance at the end of
the year. [snorts]
Uh the school districts has always
reported your student activity funds by
uh activity. So you can see the ins and
outs by activity in those last two
exhibits. Uh and then again our last
page is communication to the school
district management. Um we put this
report in whether or not we have
something to report. Um this year again
we reported on the food service
compliance issue with the fund balance
being too high. uh noted [clears throat]
that should go away for fiscal year 26
as there was a lot of equipment
purchased or replaced uh in during
fiscal year 26 which really reduced that
fund balance to a appropriate level in
accordance with with the guidelines.
Any questions on all that? So, this is
it links to the food service
presentation that we're going to have.
But how long do we usually have to kind
of correct that, you know, um put that
spending plan in place to spend down the
food?
>> The state will monitor that
specifically. Um I don't know what
guidelines they've told you. I imagine
they saw everywhere almost across the
board and I so I imagine they unless
you're unless they're not seeing if
you're seeing you're still increasing
then they would probably crap down. But
I think if they see that every year
you're spending and you know you know
like you're trying
>> yeah you know how long sometimes it
takes to get something in or time to
install or whatever. So yeah I don't
know if they put a timeline but if it
was if there was a timeline the state
would be the ones who
>> right indicates that be enforcing that.
>> Yeah because they're they're require B
they're they're actually monitoring on
behalf of the federal government because
they have audits. Federal government
comes out to them and said are you
watching your school districts that
you're handing all this money to? So,
yes, here's here's our monitoring report
that says spend your money, spend your
food service funds. So,
>> the last needed plan predated me, but I
think it was two or three years. So,
they they do allow some time.
>> Yeah. Okay. Great.
>> But this is really a systemic problem
across the state.
>> It was it was the result of Yeah, it was
a result of allowing free everyone to
have free lunches basically.
>> So, what's your bottom line upfront
overall assessment?
Uh you're you the school district is is
very consistent moving right along and
and healthy. I would yeah that's not
over a million dollars I think is
certainly healthy.
>> Since we've been consistent over a
number of years is there a way to maybe
plot this in a simple one chart
uh
illustrative
of how well we're doing.
illustrative editable
>> depends on what Yeah. What
>> No, but I think this is when when you in
discussing this with the public, this is
the kind of information you want.
>> Yeah, I didn't mean to.
>> Right.
>> No, absolutely.
>> Yeah. It isn't something the auditors
would put together, but
>> Yeah.
>> Yeah. It's something that
>> What's that long-term debt? How much? Uh
>> just
>> wasn't a 17 million or from the
retirement plan or
>> well and then number he's going to
mention right now won't include the most
recent bonds because it's from
>> just about 3 million
>> that's it
>> that's currently let's see I'll tell you
what
>> so that's pretty damn good doesn't
include
>> in theory
>> Hback thing that we just did
>> it includes a biscuit 23 HVAC and the
the 2019 turf Why wouldn't it?
>> Because it's from 2025.
>> Long enough for that to
>> two years old.
>> Oh. Oh.
>> But in theory, if we're
>> not spending 1.1 million a year,
>> some of that could go to pay debt,
right?
credit.
>> Well, it isn't it isn't fully the 1.1
because on an annual basis we we set
aside
>> somewhere in the neighborhood of
$400,000
>> bond places don't allow prepaid.
>> Oh, so what was that bond Tom? That
>> it was the the solar and the payback. So
the total amount was just over 7
million. Was it that much? So, we're
around 10 million
roughly.
>> I I think a little bit under I think
it's something
>> under 10 million
>> because something dropped off before we
added that in.
>> Right. Yeah. But that's very modest
debt. Very modest.
I think as a follow on to R's question,
is there any
item or small set of items that you
think is a meaningful
indicator
of [snorts] health that we
could post that would be useful to the
public?
>> I'm not familiar. I'm not aware of any
like a best practice if you will. I
think it's more about because you can
look at it any which way like you know
what's your goal is your goal
it's hard you know if you have a budget
is your goal suspend to the line because
you've already created a budget that's
bare bones if you will so you know you
know you have the you have a balance
>> from an audit standpoint is there
something that's a clear red flag versus
a or a clear um positive sign in in in
summary
>> a key indicator
>> I think that
>> yeah there's
>> I'm just looking for I'm really looking
to make sure that you're not
systematically
have errors in the budget process like
uh some districts can get it can get
bogged down by the revenue side of
things they don't do that correctly
>> so might it be a count on findings
>> yeah could be um [clears throat]
yeah I'm looking for consistency. I'm
looking for I don't want I'm making sure
it's not going that way. You don't want
to go up, but you're spiking like that.
You're something's offkilter there, but
I you know, I think you're
you're showing like you're as your
appropriations maybe go up a little bit
just through inflation and everything
and you're keep maintaining that sort of
result. I think that shows that you're
>> so uh that that balance as a percentage
of budget.
>> I think so. That's why I bring it up
just because I find that to be, you
know, that I'm looking for spikes on
that. It's not an it's not an audit
procedure necessarily to look at that,
but I think it's it's a useful anything
you can compare here to here. It's
whatever you choose to compare. It's
shows you which way you're going
basically. So,
>> Lance, is that something you can
consider talking with uh
Mr. Bush about perhaps
adding to the dashboard?
>> I can. Yeah. question.
>> So, it sounds like we're we're doing
well with funding, right? So, if we have
excess funding, is it dedicated to
different areas or, you know, one might
think, well, we can move it from here to
here? Do you know what I mean? But,
>> right, you have the board has the
ability to, you know, transfer your
budget between
appropriations during the year. Uh, but
then once the year's over, it's it
lapses and it goes into your undersigned
fund balance. So there's no ability to
use it. If at the end of the year after
the year closes, you know where you're
at. It's that's it. It's just
>> So as a board, we we either
vote to take a portion of that and pay
for things and anything we don't that
then goes back to reduce um taxes.
So we end up zeroing it out at the end
one way or another.
and that will go to the board at then
next meeting.
>> I had a question when you're talking
about the uh
accounting for people that uh don't use
his sick time and so on and when they
retire that money is given to them or is
that what I understand? So the contracts
and the agreements where an employee
when they left got payout of money that
was always factor that was always
tracked. Now it's just if you roll if
you're able to roll forward a balance of
sick vacation even if it lapses and you
don't get paid out when you leave that's
now included a portion of that
percentage of that amount is now
included because it's a big amount
because you know typically in schools
you can roll forward a lot of sick hours
but you're not getting paid out. So
that's why in general a school district
may allows for a big rollover for you
know long-term disability or something
like that. But because you're not
actually cutting a check if something
doesn't never takes a sick day then it's
not as much of a factor for a district
to eliminate that of a contract. You
know what I'm saying? So
>> now liability wise you're saying you're
still factoring you're still estimating
actual usage. You're not just saying x
person has 180 days of sick time
therefore they have a liability of
essentially a whole another year's
contract. It's they take 10 days a year.
So 10% or you know that that percentage
is what's actually booked.
>> Well, because if they
pay out at some other time and uh just
like the days pay
and the person let's say is with the the
school for 20 years, are they paying it
at that
20 year because they're in in the income
has increased dramatically over a
20-year period of time. So that's an
overstatement of the amount of what the
value was that of the when the sick time
was put in the bank,
>> right? You're,
>> you know, $50 an hour versus 20 years
later, $100 an hour.
>> And how do you account for that? Because
that's an overstatement of what the
value of that 650 was worth.
>> So there's a couple different things
there. [clears throat] the payout for so
I think I'm uh most likely correct here
the cooperative district has like a
retirement incentive if you will so
that's based on whatever 5year
percentage or whatever that math is in
your contract
>> that amount is is calculated based on
who's eligible at the end of June 30 205
so say you needed 20 years in the
district and over 55 the school district
provided us a list of everyone who's
over 55 and it's been 20 years and their
current salary. I think I now that it's
come back to it's usually based on the
last year's salary. So that's what the
liability is recorded on. Now for this
new standard for sick time, it's only
recorded based on their current pay
rate. And again trying to estimate how
much sick time will be used in the
future based on annual usage of an
employee. So it's not a big percentage,
>> but you're deducting that amount by
some. So any amount that is truly going
to be paid out a lump sum if uh you know
administrative employee gets a vacation
payout that's already that's 100%
factored based on what they've already
earned. If they were to leave June 30th
what would they be paid out? That's the
liability. Um same with [clears throat]
the retirement incentive but again but
then now it's the additional balances
that get to roll forward because an
employes earned it is now a portion of
that is now a liability to the school
district on a long-term basis.
>> Yeah. All right. Um that is a area
budgetarily speaking you know those
retirement incentives uh I'm just trying
to find the actual balance to talk about
it.
So that's the retirement incentives
considered a termination benefit. You'll
see it's actually listed separately.
That's almost $500,000. Now you do
budget for that because you have set in
your cont agreements and so forth that
it requires an 18-month notice if you
will so that you can build it into your
budget. Um,
so I don't see this necessarily in as
much in schools, but in towns because
they don't typically have that uh notice
ahead of time, they can be hit hard and
they create capital reserves and and
kind of start sometimes fund a little
bit to not have to worry about that if
you
>> but they shouldn't be hit any harder
than what their budget was for that
year,
>> right? and the school district
>> and then take it forward whatever 20
years later that's a substantial
increase in the value of that
>> right
>> so every year like I said every year the
calculation changes so every year that
so that employees one year has an
increase in their salary and has an
additional year of if you're if saying
if you're pro if you're multiplying year
years of service times whatever every
year that's recalculated so every year
you're capturing that increase in salary
and increase in longevity and so on.
>> Tony, you're old enough to remember when
companies switched from um retirement
plans to 401ks. One of the real big in
incentives for companies to do that is
once it was in a 401k, they didn't have
to they didn't have to maintain funding
to cover that liability.
>> Well, if you didn't use it, you would
lose it. No, but it back before they had
that because I was I was working at that
transition and and there was all this
publicity that all of a sudden
>> they freed up a huge amount of cash at I
was working at digital at the time. They
they had 150,000 employees and all of a
sudden when they ported people over to
401ks,
>> all this money that they had had to hold
in reserve to fund uh pension funds got
freed up.
>> So, how do we get how do we how do we
move to 401k 403bs?
>> Something kind of similar.
Mer must maintain a budget for people
who that may take uh vacation time.
>> You still have to do vacation.
>> Yeah, right. But you have to maintain
because you're we're nonprofit. So
therefore, you have to maintain a
certain amount to pay for it ahead of
time.
>> So there's a lot of reserve.
>> Talk to talk to about NHS.
>> But anyway, moving forward because we do
have an agenda.
>> So thank you. Um, does anyone have any
other questions at this point?
>> Thank you.
>> If anything comes up, we'll follow up.
>> Absolutely.
>> Um, and we'll look forward
>> Feel free
>> to
>> Oh, and um
I was sorry I I was going to say too,
sorry, this so we didn't release we did
uh release this report until June, which
so that's a lot longer than we'd like to
do that report. Um, and I would say a
lot of it was there's a few things at
the end of the process. we need to get
an letter from every one of the
attorneys in the district. So that can
be a lot and then there's a big
transition in the business office right
at the start of the year. Um but I can
happy to say that the so far the
fieldwork process went uh smooth very
smooth and further along than we were
last year. Oh, absolutely. Uh, business
office is yeah, one more year in for
him. And [laughter]
>> I believe there's was actually a
legislative change that um changed the
timeline for finalizing audits
>> um and shortened it. I think you could
maximize it to a year, but I think they
were looking to make it more in this
nine month. I thought it was a nine
month, but maybe it didn't pass.
>> I I haven't followed it. I someone else
had recently mentioned that and what I
the the rumor was that it didn't pass
because everyone said can't find an
auditor. So
>> right they they were originally pushing
the original legislation was pushing for
six months which just it's just not
possible for every school district. So,
um, if it didn't pass, it certain I I
can envision it coming back at some
point. But you're right, six months just
isn't a reasonable amount of time for
every for the number of auditors, the
number of districts, and the amount of
work that needs to be done. And in
addition, for municipalities as well,
they're working on it's a different
schedule versus the fiscal versus
calendar, but even so, you're you're
definitely busy all year. So,
>> um, pushing it to a six-month window
just isn't available. I mean, I I
certainly understand time in this is
important for sure. So, we we that's
always the main focus is to make sure
>> we can turn it around as best we can.
So,
>> and like you said, it's it's a a
combination of the work effort of, you
know, getting you the information that
you need for you to be able to turn it
around and and put it all together. So,
it's certainly um a huge effort and we
appreciate the work.
>> Appreciate those comments about business
office.
>> Yes, definitely. And I and I can add and
speak on behalf of the business office
that we are very grateful for Tim and
his team and their guidance uh both
during the fieldwork time and throughout
the year and following it as I now
pester him with a lot of follow-up
questions uh because I'm not an
accountant or auditor so need to learn.
Uh so we're very grateful for their hard
work, patience, and and support.
>> Yeah. Always happy to help. You know, we
we can't be I tell clients, we can't be
your set of controls. You know, we can't
be the ones who only capture or tell you
how to record something. You should be
able to do that throughout the year, but
we can absolutely provide advice. You
could call us anytime and say, "Well,
there's this unique transaction. How
should we handle it?" And we'll tell you
something,
>> right? Because those unique instances do
come up and we want you want to make
sure you get it right from the get-go.
And
>> we don't we won't impair our
independence, but independence by
providing some guidance those things,
too. Mhm.
>> Well, thank you so much.
>> Um,
so at this point, I think we're ready
for the um
food services overview.
>> We all have, but I'll
>> Yeah, did you send out an email with all
>> I'm sorry.
>> Had you sent out an email with all the
attachments?
>> I did.
Yeah, the email you sent either today or
yesterday was the second one, right?
>> Yeah, I sent it.
>> I didn't get one yesterday. I didn't get
one the last couple days.
>> went to spam.
>> Let's see. I hope I didn't leave you
off, Tom. Um,
>> well, she sent one asking who was going
to come to the meeting and this was the
second one.
>> Yeah, I saw that one
>> Monday.
out Monday. Did it go out Sunday? It
went out Monday morning,
I think.
7:53 a.m.
Ton.
Oh, I sent it to Yahoo. Should I have
sent it to your
>> Oh, went to Yahoo. No. Okay.
>> I picked the wrong Tom Solon, I think.
>> That's okay.
>> Sorry.
>> I'll forward it over. [laughter]
>> I'll use your SAU one the next time. I
didn't realize
>> it was probably because I had sent you a
>> Oh, maybe
>> another message
>> from my personal account.
>> We all set?
>> Yes, sir.
>> Yeah, as soon as I started.
>> Um, so this is just a a brief kind of
overview of food service. Um, I think
Tim during his presentation touched on a
couple of the important pieces and
interesting pieces about food service.
uh it lives outside of the general fund.
It's it's it's self-funded. Um so it's a
little bit of a unique entity in that we
do have a line on the budget that we all
see um for a transfer to food service,
but that's completely offset by
revenues. I can touch on that a little
bit more. Uh so within um food service
management, we have Amy Cassidy. She's
the director of school nutrition. Um
she's supervised by myself. Um, director
of school nutrition is shared by each
district uh for salary and benefits. 50%
in the co-op, 26% in Hollis, and 24% in
Brookline. And that's based on student
population.
Um, when Oops.
>> Could you go back to the chat for me?
>> Sorry, please.
>> Um, when fully staffed, each school has
one head cook. The middle school has two
food service working and uh food service
workers and they're currently fully
staffed. And the high school has five
food service workers and they are
currently fully staffed. Uh there's some
administrative support 25 hours a week
and it's split between all districts um
and and costwise that same.
>> So are those uh full-time equivalents or
just actually five people
>> for example? Five people. Yes.
>> Okay.
Ju I'm sorry um Lance just one question
you have that um the distribution
between the three districts in the food
services part
of the SAU budget. No,
>> Amy's uh So that's uh Amy Cassidy. She's
>> Between her.
>> Okay. Yeah. I'm sorry. She's
>> Go ahead. That's a good question.
>> So So she is SAU staff.
>> She is not.
>> No, she's not because it's not it's not
funded through the general fund itself.
>> So it's covered in that in that part of
the budget um at the end where we add
transfers and special revenue. That's
where um Amy and captured
Yeah, she's technically a she's got a
co-op contract. That's it.
>> Um similar to um our uh uh network
>> administrator
and assistant facilities director. So a
similar setup to that.
Uh national school lunch program. All
SAU41 districts participate in this. Uh
it's a federally assisted meal program.
Uh it's open to public and nonprofit
private schools um or public and
nonprofit residential care institutions.
The primary focus is to provide
nutritionally balanced lunches to
children each school day. So they they
have um rules and regulations on what is
served and what is served within a meal.
Uh they provide cash subsidies. Uh those
are based on whether a meal is free,
reduced or full price. But there is some
some cash subsidies on all meals. Um
also uh USA USDA sourced food. So get
much of our food from them and access uh
to training and resources.
>> Is there any um so there there's a
business officials association, there's
an IT director's association and things
like that. Is there anything for food
service where the food service directors
around the state, you know, get together
and share information or anything like
that?
>> Um, I don't know if there's anything
exactly like that. Our our food service
director does attend some workshops. Um,
I don't know off the top of my head if
if it's related like that. She actually
just got back from a a two-day uh
conference that she attends annually. I
don't know if it's statewide or or
national. Um, I could look into that.
Um, financial components of food
service, uh, salaries, buying the food,
non-food, that would be things like
utensils, straws, napkins, um, and
equipments like ovens and stoves and and
coolers. Are
>> we still using disposable like trays and
things like that?
>> Yes.
Uh revenue um comes in locally um from
sales um state funds and federal funds.
Um fund balance revenues in excess of
expenses are added to the food service
fund balance. This is what Tim was
talking about earlier. Uh each school
can only hold an average of three months
operating costs within that fund
balance. So, when we submit our DOE 25,
uh there's a food service tab. It
calculates this out and you get a little
red flag if it's if it's over that 3
months number, which uh co-op was last
year and had been for a number of years.
We could talk about some of the reasons
coming up for that. Uh but we've been
part of a spinown plan. It looks like
we'll be in compliance going forward. Do
>> you break that down by school or do you
uh is that the total?
>> Uh it's the total within the district.
go if you uh
were in a school district that served
elementary
and high school and I think it's broken
down elementary, middle, and high. Uh
but the the aggregate number is what's
important.
Uh just interesting to see some meal
counts uh through the last uh number of
years and uh in fiscal year 25. So I had
made this for May. So we had completed
fiscal year 26 at that point. 82,68
lunches were served and 8,167
breakfast. So you know well over 90,000
or not well over but over 90,000 meals
served to students.
little snapshot of some of the
historical financials which probably
difficult to read unless you brought
your magnifying glass um or or have it
in front of you. But I think if you look
at the first column FY25
um at the very bottom that's our ending
fund balance and that was what Tim was
referencing that $445,000
um again higher than that three months
operating cost you're allowed to carry
over. So, we've been part of a spinown
plan and one of the big reasons that
happened if you just look at the um
revenues at the top uh particularly
local revenue and you kind of see those
jumps or or the total revenue amounts
were high and we weren't charging for
lunches and so fund balance went up over
those years.
the uh numbers of lunches that served
here over here. Could I just look at
that for a second? Yep. This one?
>> Okay. Thank you,
Lance. Do you think there's any
any way to project what the cost impact
would be if um
either laws are passed or a decision was
made to provide free lunches as have
been proposed in variety of venues and I
think as we did during co
>> do we have the data that would allow us
to present that Um, I don't know if we
have it set up in any way that could
pull immediately, but we we would have
numbers to have at least a reasonable
>> we'd be able to to look at cost versus
selling price.
>> Correct. And yes. Yes. And some of that
would be the different It's not an exact
comparison if you're looking at the
difference of cash in and cash out
because there's other factors, but
that's accounted for. ly. So, we should
be able to silo that.
>> Um, some accomplishments of food
service. So, there's administrative
reviews every five years. Um, and uh, I
sat through one this year for Brooklyn
School District and the reviewers are
very impressed with our program. Um,
they have no findings which is very
positive and and rare from what I
understand. she said the last school she
had covered at 17. Um and and findings
can be minor or large. Uh Hollis will be
going through um a review this year. Uh
which means co-op will be up within the
next couple years. I'm not sure cycle
off the top of my head.
>> Would you guys review? Um it's through
the department of ed uh
service.
>> Um health inspections continue to pass.
Um some some events there's New
Hampshire harvest of the month. Um so
it's a monthly uh thing that's put out
and and advertised for throughout the
schools. International menu days. So
they've been Ireland, Greece, Canada,
India. um try a sample day. So, when
there's trying new dishes, sometimes
they'll make it, pass out samples, and
some of that's to get students
interested to see what's available and
and purchase lunches.
Uh the recipes are standardized across
all of the districts to include um more
meals and more sides made from scratch.
Um they've made sweet and sour chicken,
baked potato bars with local potatoes,
Korean rice bowl, Nashville hot honey
chicken sandwich, which sounds good to
me. Tuscan grilled cheese, uh, fish
tacos, uh, broccoli alfredo pasta with
teriyak sauce. So, they they try to have
some good variety in there. Um, sample
days, they did dumplings, edamame,
pizza, bagels, Greek chicken bowls. Uh,
the food service department has an
Instagram account. They try to do a
little bit of publicity there. Um,
there's been some equipment upgrades at
the middle school. uh dish machine, open
merchandiser, which is a cooler where
you can see what's inside similar to
what you'd have at a convenience store.
Uh left off of here, which is a big one,
is ovens. Um so when Tim was talking
about kind of getting on the right side
of that fund balance and food service,
those big equipment purchases were part
of getting us there, part of our plan to
get there. So upgrading some of the
equipment along with, you know, some
food prep tables within the kitchens.
So, all the equipment now is where it
should be because I noticed in 25 you
didn't invest much.
>> 24 a lot and then it dropped to
practically nothing.
>> Y and I think some of that might have
been timing of purchases and getting it
in and setting that up.
>> So, if you don't need equipment, what
are you going to do with all that
balance?
>> Uh, now that that equipment is bought, I
think our our and that was what Tim was
alluding to. We think our fund balance
will be a place where the state is okay
allowing us to roll it, which if you
have a bad year, it can it can come from
there.
>> So, well,
>> from an audit standpoint, they'd love
you to be net zero. Uh, from a business
office standpoint, I'd like to have a
little bit of fund balance there.
>> Um, some challenges uh that have come up
in the past that was other supply chain
issues, primarily pandemic related. Um
there was staffing challenges, but a
substitute pool was um instituted and
it's been really effective. Um Amy said
that's really been a lifelong lifeline
to keep uh the kitchens running smoothly
if people are out sick. Current
challenges getting students to
participate, rising labor costs, um
specifically in attracting new
employees. It can can be a challenge if
they can um make more money elsewhere.
Sometimes the schedule is very
attractive to somebody and sometimes
it's it's not if they want to work more
hours. Uh cost of food and paper goods
continues to rise. Um there was a memo
Darlene shared out which sound like the
information uh lunch prices were held
steady but um breakfast prices were
increased from $1.75 to $2. They hadn't
been increased since um 2022. Um so that
was recently or this this spring was
approved by the boards for fiscal year
27.
Um can
>> you elaborate on the student
participation challenge?
>> Um really that's getting students to buy
lunches. Uh you know in the sense that
food service is a little bit like a
restaurant or like business. It's
self-funded. They need to sell lunches
to to have the funds to cover um
salaries and and other costs in addition
to the food. Obviously, [clears throat]
we buy what we need. Um but
>> is there a lot of food left over at the
end of the day that you have must throw
away?
>> No, they do a great job um reducing and
and having as little food waste as
possible. And some of that's, you know,
good storage practices and Amy Amy does
a great job
planning on may be a way to reduce what
you throw away by lower the price you
ask for it and maybe you increase
participation. What they what I've heard
reported
I don't know the accuracy of this is
that as [clears throat] regulations have
been put in place that made the food
healthier there was a reduction in
[snorts] participation because it did
not match student preferences.
>> Yeah. Is that why they're they're trying
different types of food?
>> Trying to find out what they can offer
that it meets the health guidelines and
>> and there are the guidelines can't be
minimized because it it it's portion
control. It's you know percentages of
protein sugar content all those things I
it's
>> down to the calories in the in the bun
>> we attributed to grain. It's a
significant effort to meet the
guidelines and make something that kids
want.
>> Well, you there are no sweetened drinks,
for example. There are I don't believe
there are any sugary meals. So, we have
the fixed costs of the operation
which include both the facilities as
well as the staffing
and we have to staff. It's almost like
the busing. You have to staff for what
might occur. Now we're trying to fill
the seats.
>> Yeah,
>> I think
>> without sugar. Good luck.
>> I didn't see any Cuban recipes there.
>> I didn't see the challenge. Oh,
>> yeah. Yeah.
>> Yeah. business.
>> Um, one one piece of uh one regulation
that came into play recently and and
just today I got an email about it that
offering some relief from it uh is in a
bi-American um regulation. So more food
having to be sourced um from the USA
which can raise costs in some places and
and be a wash in others. I remember last
year
>> we weren't able to buy locally
and I don't know if that's changed where
you can buy from
>> Brook deals.
>> Uh Amy B I can follow up with Amy on
that. She's she's better at those rules
than I. Um and they do make some local
purchases. I don't know if it's
>> that hyper local. Um if it can be I
think that's
>> positive.
Um some other challenges uh getting
eligible families to do the free and
reduced paperwork uh for free and
reduced lunch which they can do at any
time. Um
we we want families who qualify that for
that to do it both so they can be fed
and and it helps them out as students.
Um it also allows those lunches that
those students are having to to be
reimbursed. Um, so it's it's both good
for families and good for the program.
We're trying to make signing up easily
easier. So in addition to paper forms
going out, uh, there's online signups
and and we encourage those high negative
balances are
>> sorry, can I just interrupt one second
on the signups um, with the online
paperwork? Do we also put additional
information online for like other
resources um, state resources that
families who would qualify for free and
reduced lunches um, might take advantage
of? It's not sent out with any of the
food service items. I can see if it's
included on any other
>> just if there's an online place for
where people are filling out forms,
maybe we added additional links to other
things that they could be eligible
eligible for statewide. Um, you know,
other programs and things like that.
>> Sorry, just writing that down.
there's some students carry high
negative balances. We have to give
students lunches uh regardless of
whether they pay or not. They don't get
extra things, but you know, a standard
lunch. Um and we make sure when we send
out reminders about the negative
balances and because if it is a a cost
issue, we include the information for
signing up for free and reduced lunch
there as well. um at the high school
level, by the time they get a little bit
older, there's some um carrots and
sticks like going to the prom and
walking at graduation that we can hold
over students to really encourage them
to either take care of the negative
balance or come up with a plan with us
or speak to us, you know, if it's truly
a hardship. Um, so it tends to get
be in a better spot uh for the co-op
than maybe some of the other districts
where there's not those
end of uh school
um activities that we can we can
>> I don't want to say hold over them to
pay but consequences. Yes. Thank you.
So, um, for the negative balances, is
there a way on through my schoolbox, um,
which is the platform that parents use
to put money into their students lunch
account, um, is there a way to put like
a a donation
>> section? So, if if someone was, you
know, putting in, you know, $100 to
their students account, they might say,
"Okay, I'll be willing to contribute $25
to the program itself." and an
explanation that would go to offset some
of the balances or um
maybe um I don't know if you've ever
thought of like fundraisers and you know
they purchase a special item and that
money goes to you know offsetting
because sometimes the negative balances
aren't just from families aren't that
aren't paying but they could be from
families that would have qualified for
free and reduced lunches and they're
incurring a balance until they fill out
that paperwork and the balance doesn't
go away even though they qualify for
free and reduced. And so, you know, if
people understood that maybe their
donations went to help support those
families, that could be a a small way
to, you know, start driving down the
balances. My recollection is that the
stories we heard with many of the high
balances are related to
>> disagreements in households
>> as to what's being purchased and parents
saying,
>> "I'm putting in enough money for your
lunches. I'm not paying for you to have
all these snacks. You eat breakfast at
home. Why are you eating breakfast at
school?" Again, these sort of things. So
what happens is
the students have the authority to
charge it to their account
um and the parents who may not agree
with how that authority is being used.
>> Well, there are limitations if someone
has a high balance that you could put in
place that says you can only charge the
meal and you can't charge the extras.
Like
>> do we have those restrictions? Do you
know
>> they can't charge any extras? uh if they
they charge the meal and buy something
else.
>> Can they charge both breakfast and lunch
if they
have a negative balance?
>> Yes. And breakfast if you get a certain
like combination of items is essentially
is free. Um
>> Okay. No, I just I just want to point
out that it it isn't all hardship
driven. Some of it is
um internal friction in households
>> and and often negative balances,
particularly relatively small ones, but
there might be many of them are
corrected. Um you know, maybe they
didn't get the letter that was sent out
because they didn't open the mail or or
they maybe they ignored the email and
they see the letter, but often times
they are corrected quickly. Um it's ones
that become large that tend to linger.
Maybe we could give parents at the end
of the senior year when you would be
refunding any balances through my school
bucks, anyone who has money in the
account, they maybe an option could be
they can leave it there and make a
donation
>> back to the district. I like the idea of
the donation
>> because I think there are many
fortunate families in our district that
would be willing to contribute.
>> And people who who make donations, they
can say things like you know um we want
it to go to the balances of people who
are on free and reduced or
>> um
you know at a at a lower grade level. We
want to take care of all the first, you
know,
>> if if nothing else, we can
>> or something like that.
>> Put something like that in in the
process and see how it works.
>> Do you have experience with that in your
district?
>> Uh, yes.
One of the um most successful We have a
a new food service director who pursued
donations as a means of offsetting some
of those things. And you would be very
surprised at um companies and vendors
and things like that who are willing to
make those donations. So it has been
successful.
>> So it wasn't just
>> participants of you know families you
had businesses contribute as well
>> and you know a local charitable
organizations things like that.
>> Just a thought you talk about fund
balances trying to spend down. Do you
ever think about because you talk about
more participation having a free lunch
date?
>> I can see there are restrictions on what
you can use those funds for. Um and and
they're
>> pretty strict. I don't off the top of my
head um I don't know if that would be
allowed. I I know like um construction
work, you know, to renovate a kitchen
would not be allowed
>> for fun. So,
>> I was just thinking it's something that
would go directly back to the students.
>> A free lunch day.
>> Don't think you can do that.
>> On your birthday, [clears throat] you
get a free lunch. A free meal for the
day, right?
>> Yeah. My birthday was last week. I had
my cockto. [laughter]
That was a surprise.
Um
[laughter]
uh some strategies for ongoing success.
Um just continue to recruit and retain
staff. Right now we're fully staffed. So
um you know retention of staff um
working on ways to increase
participation especially on the
reimburseable breakfast and that
involves getting I think it's three
items what would comprise what the
national school lunch program views as a
balanced breakfast um so it can be fully
reimbursed rather than like all all the
cart items. Um getting the active social
media presence to increase awareness of
offerings. Um continue a forum for
student and parent input. Talk to me
Tuesdays where they get some feedback um
or request some feedback from students
parents. Um continue to work to find
ways to address negative balances as the
discussion we just had. Um and to be
creative, capture student attention and
offer a wide variety of choices um while
remaining compliant.
And that's that's the last slide for me.
Happy to take any food service
questions.
>> Does the school board get a food service
overview or updates other than the meal
pricing at the end of the year?
>> We have on occasion
it's usually
we get information throughout the year
>> on programs. Um, I think we had one last
last year. Well, food services was
either last year or the year before, but
I don't I don't think we have it every
year.
>> Might have been the year before. I don't
I
>> Great. Well, that was awesome. Thank you
very much.
Moving down the agenda, the next item is
a legislative update.
So, it was a busy legislative cycle
um with
uh many of the bills that passed um it
was
once
um the bills were passed on to the
governor, it was probably a
I would easily say a four to six week
period of just seeing what bills were
going to get signed into law. just a
process after things are finally
approved and agreed to and rewritten and
submitted and approved again and things
like that. One of the interesting things
that took place this year is when the
legislative cycle ended, it was um
recessed as opposed to adjourned or
dissolved. And what that did was result
in a change of a process change, an
impact change. So typically when the
legislative um cycle ends and the uh
legislators are adjourned and the
meeting is adjourned, the session I
should say is adjourned, anything um any
bill that gets put before the governor
um if it is presented to her and she
does not sign it into law over a fiveday
um after a 5-day period, a pocket veto
takes place. So, she doesn't have to
make a statement as to actively vetoing
something. It could just be a pocket
veto. She didn't sign it and we move on.
Because at um in June the session ended
with a recess, the whole process
changed. And what that would mean meant
was if a bill was put before the
governor and it sat for five days,
instead of it being a pocket veto, it's
a pocket approval and would go into
effect.
I don't believe any of that happened. I
think um the actions were the the
governor, you know, very clearly stated
what she was vetoing and what she was
approving. But it was a very interesting
kind of process impact because of that
action at the end of the legislative
session.
So, uh we were waiting for, you know,
several things over the course of a few
weeks to see what um was going to
ultimately be signed. And there were um
I'll mention a few of the interesting
ones and we'll spend the most time on
the one that is the most impactful. Um
House Bill 1234 states that no school
board member can be a moderator or
treasurer or an elected budget committee
member um or part of any SAU
um role. and you can't file for
candidacy for two or more offices
um that would be incompatible with the
seat that you hold. So, if you're a
sitting school board member, you
couldn't um seek a budget committee
seat, for example. So, there are just
some restrictions on what you can and
can't run for if you're a sitting board
or committee member. There's a new co-op
withdrawal process under House Bill
1374.
Um the way it previously worked was um
you needed to eventually get um the
majority vote of all the districts that
are in a co-op to agree to the
withdrawal. That's no longer the case.
Just the withdrawing district um can
vote to withdraw from a co-op and
present their education plan to the
state and move forward with the
withdrawal process. It doesn't require a
vote at that co-op level moving forward.
Is is there an exception for
[clears throat] two district co-ops?
>> Not that I'm aware of.
>> So, a single district can unilaterally
dissolve co-op.
The two district co-op.
>> If the district Yes. If the withdrawing
district voted to withdraw.
>> And they don't have to be the larger
>> town. The town.
>> Yeah. They don't have to be the larger.
They don't have to have a maj majority.
I'm not sure of the majorities that are
required actually. Um I'm sure it's
stipulated.
>> No, my point is if [clears throat] a for
instance if Brooklyn voted to withdraw,
>> they could. It wouldn't have depend on a
co-opwide majority.
>> That's correct.
>> So have we conducted an evaluation or an
assessment of how much it would cost if
one of the
>> not something that's impacting us right
now,
>> but it could in the future. So
Given that it's only two two districts,
it
>> it's a fairly it didn't change the
process. So that would be part of the
process that even a solo district would
have to go through
>> in order to Right. I would say if a if a
district were were withdrawing, they
would want to know and understand the
financial
implications,
>> but but the other town doesn't get to
vote on that implication
and impact. So,
>> but it would be I would say it would
naturally evolve in the process because
if I were in either, you know, in a in a
district, I would want to know what what
the impact is. But my point is given
that this passed, we should not be
caught by surprise ever. So I'm just
saying
>> the plan that was that she referenced
>> part of that plan is the financial
impact to everyone. So and the state has
to approve it.
So if if a district my suspicion and or
my hope would be that if a district
chose
to withdraw but it's doing so would
cause the collapse of the remaining
district or districts then the state
might step in and say
this plan is not acceptable.
I think most people because this pops up
at every once in a while at the annual
meeting, they don't understand that if
let's say if Hollis decided to move off
the co-op then what the school belongs
to the co-op where they going to send
the students and I don't think that
quite registers just because the school
happens to be in Hollis doesn't make it
Hollis's
Yep. Oh, very good point, Tony.
>> Um, this year there were mandatory re
reports to voters um during the budget
cycle. There was a change to the
mandatory reports through House Bill
1807
um that you know tweaked the components
uh actually addressed the size of the
paper and brought it back down to a
regularized piece of paper as opposed to
an like 18 by 24 piece of paper.
um consolidated how the information gets
presented um and and shifted a little
bit. One of the components um last this
past cycle was to list the four highest
paid administrators and now it's the 10
highest paid. Um,
>> I hear it's also teachers.
>> I think it's anyone making over a
hundred,000. I think there's
>> Yeah, they have to publicize any any uh
teachers who are earning over $100,000.
>> Uh, let's see. There's a change to the
special education aid calculation
through House Bill 1563.
So, um, it lowers the bar to qualify,
but makes districts have to pay a a a
percentage [clears throat] on the higher
end that we didn't have to pay before.
Um, I think I I'd mentioned to Lance to
maybe gain an understanding of um, I
mean, special education aid is paid in a
rears, so it was submitted this cycle
under the regular and existing
calculation method. maybe just to if
there's a way to easily recalculate it
to see what the impact would have been
with the new um calculation method just
so that we have an idea of how the the
aid would shift.
Um there'll be a commission to study the
structure of consolidating SAUS which
will include as part of the composition
of membership a member of the school
district governance association.
>> what is the Actually,
>> Isn't that Eric P's group?
>> I'm I'm there are several individuals
that are part.
>> Can you repeat what that what that was?
>> Um, that was Senate Bill 574.
>> They're linked.
>> So, that officially establishes a
commission to study SAU consolidation.
>> So, all these bills will be captured in
the meeting minutes. Um
because obviously I would like to find
out how those bills came about.
>> Mhm.
>> Um so on new hampshire.gov all of the
details of every person who put them
forward, how various every member voted
on them. All that information is
available.
>> Haven't gone through that before. Yeah,
>> I do have how Senate Bill 586, which is
the timeline for audits. So something
about that did pass.
Um but it it was definitely not the
six-month window. That absolutely not.
Um House Bill 564
now states that um there SAU budgets can
no longer retain um their unreserved
fund balance. So, if you'll recall, um,
SAU budgets work the same way
municipalities do did in that if you
underrun the budget, um, any underrun
can be held as in the unreserved
unassigned fund balance. um
that is no longer um feasible. And uh
since the bill was signed into law in
early July, um the expectation and
clarification we got from legal was that
the um the SAU was able to hold its
unreserved fund balance as it existed on
June 30th, but by next June 30th,
they'll not be able to retain their
unreserved fund balance. So does that so
does that mean that uh that the amount
and the unreserved f balance whatever
that is has to be given back to the
district within the within a year
>> it'll turn over on July 1st next year
>> okay
>> does it
>> so it'll be part of I'm sorry go ahead
>> does it describe
[clears throat] how the return is
aortioned
>> it would be aortioned the same way the
site budget is aortioned
>> based on that year because typ moving
forward it'll only be it'll be one year
at a time,
>> right? But
because of the way that we fund certain
things, um the costs of items
are not necessarily
proportional. When I'm saying
aortionment, I'm not talking just a
co-op aortionment formula, but
um administrative use of the uh services
of the SAU is
build at a specific thing.
It just goes back in that exact same
ratio.
>> It's based on the aortionment formula of
the SAU budget. So there's a different
aortionment. Yeah.
>> So okay. And I think that's how it's
written. So
>> it's gonna it's probably going to impact
how we
um how we charge things,
how we pick that ratio. Is that ratio
defined strictly by enrollment? Do you
know?
>> Um there's a number of factors. I've
only worked through it once and it was
>> October last year. Um, so I'll be going
back through it again soon. Uh, but
enrollment is a large part of it, but
not 100% of it. I'm thinking for
instance if if there's a legal
cost and 90% of it is being used by one
district because of what's going on in a
given year
but that if it was an elementary
district would only there only uh
portion than a quarter of it what I mean
>> well t typically those legal fees will
be charged to the district
are with the SAU staff.
>> Well, whatever wherever the
>> Anyway,
>> the litigation is we're in the but I
think it's going to impact the
>> the budgeting process for the SAU
significant.
>> um one of the bills that was vetoed was
House Bill 1610. This one would have
required school districts to return
their retained fund balances and um put
the ability to retain funds in that
manner up for an annual vote. So right
now we have retained fund balances at an
approved maximum percentage that's in
place. We don't um it gets calculated,
it gets approved by the boards. This
bill would have made the vote be annual
and as I said because it would basically
have um dissolved any of the previous
percentages would have forced the
districts to return um any of their
retained funds. The reason given at the
time of the veto was that um uh the bill
language said it would go into effect at
June as of June 30th of 2026. The bill
wasn't presented to the governor until
July and her reason for vetoing was that
budgets and things had already been
passed and to put this in would have a
negative effect across a lot of the
districts in the state.
>> This wasn't one of the ones got over
overridden this this week.
>> Betsy told me that Eight vetos got over
overridden today.
>> So, what that says is we're not allowed
to put money in reserve.
>> We can we can still keep our retained
funds. I will check that. I'd heard
about a transportation um bill, but I
didn't hear about that. That's
>> I could see a situation where you end up
going to things like capital leasing
items that would usually kind of pay
over a period of time and that's not
allowed then you're going to have to get
more creative and
>> there was there was a well there were a
lot lot of bills and one of them would
have prevented school districts from
using um municipal leases as a funding
mechanism things like that that one um
didn't move forward. But perhaps the
most interesting bill that did pass is
House Bill 1300.
I share this information um with
everyone. And what House Bill 1300 does
is put forward a tax cap vote at the
November 8th election this year in 2026
and again in 2028, which would require a
60% vote to pass.
um the calculation
there'll be there are lots of questions
and operational issues that have been
brought forward that I think districts
will get some clarity on legally and
from the department of revenue
administration within the next week or
so as budget cycles are ramping up. Um
but the calculation of um the increase
in tax effort would is governed by um
the increase in inflation and the change
in new construction in a community. And
it also stipulates that the SAU budget
um can not be greater than 6% of the
appropriation less bonded costs. Um I
did ask Lance as these um bills were you
know being developed where we fell um in
that window and we're well well below
6%. So that's not an issue for our SAU
budget. Um but it the but the the two
elements are are are both part of of the
legislation um and the wording that will
go on a ballot to taxpayers. You can't
vote for one one piece and not the
other. It's both elements of the of the
um bill and it it again gets put on a
ballot and I think some of the questions
that are going to be addressed will
include things like can school boards
and budget committees put
recommendations on that um things like
that. So I think the districts will be
getting um you know some additional
clarity on on how to move forward and
especially for some districts you know
with the calculation of an SAU budget we
do that anyway for SAU41 a lot of
districts don't do that if they're
single district entities they don't
necessarily split out say like central
office costs and things like that but
now every district will have to
calculate that um and and present it
separately. So, we're going to have to
uh provide our opinions and vote on it
when we have our
meeting in February regarding the
public.
>> The vote is in November. So, um
>> two and a half months.
>> Yes. So,
>> they're going to be more articles,
>> The vote on from House Bill 1300 to vote
in a tax cut is on November 8th of this
>> Period.
>> Period. Okay. If it fails and does not
receive a 60% majority,
we have our normal process and there can
be petition articles that attempt to do
the same thing because there's other um
language in RSAs that can limit budget
and institute budget and tax caps. So um
again this is takes place
>> November 8th is the general election for
midterm the midterm election.
>> Yes. So when this was originally brought
forward it was intended to be a vote
every two years. um I guess until it got
reversed or changed and the compromise
compromise was to um put it in for FY26
and then again in FY28.
>> What and so FY28 would be done
>> I mean I'm sorry November 28. November
2026 and November 2028.
>> So would that be during the presidential
election?
>> Yes. Mhm.
>> Congressional elections and then
presidential elections.
>> And it would I'm sorry, did you just
>> ask a question? No. So, um, would that
just be for the next four years, like
two years and two years and that's it
>> or would it continue?
>> I I don't know what would happen after
28. I don't know if it I don't think it
says that it
>> expires. Yeah. So, I really I don't
know. I don't know.
>> Is it
>> So, what
>> I'm sorry. I'm sorry. Go ahead. Sorry.
>> I was going to say, does it include the
entire budget or the operating?
>> It's on the entire budget.
>> So, salaries and
>> all of it,
>> all that stuff,
>> things like insurance that went up.
>> I actually do think the percentage is
applied against the budget, less bond
costs. But it it is essentially on it
isn't just on the operating budget. It
would be a like the same way the tax
works in Brook for the Brookline School
District. It's on the entire budget.
essentially.
>> So, doesn't that take away our local
control and our our board meet the
boards that we have that carefully
review this information
>> and are doing so in in the middle of the
whole process.
>> What it what it does is it simplifies
this committee's work because it tells
them what the budget is for the next
So why?
>> So there was
>> we don't
>> So I I'd just like to uh point out that
that I looked at the SAU spending u uh
back in the budget process. Uh it was
3.6%
not 6%. 3.6%
SAU
percent of the total amount spent on
education. So we are way under what this
legislation uh shows and that should
that that should be a factor that should
get out there so that people can see
that uh we're we're doing our job here.
>> We're doing a terrible job of marketing
what we're doing.
>> Yeah. Well,
>> they have to know this. Maybe they'd
appreciate it.
I don't know what if if Lance actually
calculated it and I so I think the 3.6
is accurate.
>> Um
I think it might have been 3.9 but it it
was just under four last year and that
was before
>> removing it. It was 3.9 and it went down
this year. So I don't know you
calculated it on this year's
>> uh when we were proposing it last year I
guess and that would have been not the
adjusted bud budget. that would have
been the proposed budget although
wouldn't shift the percentage too much.
>> Okay. I think it's into that but take
>> we'll be we'll we'll definitely be
looking at it and evaluating it. So
what's interesting too about these
pieces of legislation, it is actually um
a very well for many reasons a good
thing that the other bill I mentioned
about the retained returning the
retained fund balance which was um 1610
was vetoed and did not pass because if
we had um had to return our retained
fund balance, it would have dropped our
tax effort lower at the same time that
House Bill 1300 is put into effect and
we would be calculating, you what the
tax impact would be um and what the
change would be. So, you know, part of
the discussion, I'm sure, is going to be
well, where where would we be with but
that again, if that didn't happen, we
can hold the retained fund balance. And
so, we're at our you know, we'll see
what our um
you know, how we move forward in 27 once
things are finalized like our final
adequacy and things like that. Um
but all that is happening right around
the time of the vote and we are waiting
for information from the DRRA that
usually comes to us in in for the for um
moving forward for FY28 purposes. We
don't get information until mid-
November and tax rate setting usually is
finalized um by November 1st and the
vote on this is is on November 8th. So
um I think there is some you know work
to be done um on our part for our
September meeting
>> to you know pull out some information
look at some trends and and see where we
are to to present um a rationale for why
we would would or would not recommend
votes on this. Um and I think the same
is true for the school board as well. Um
there isn't a lot of time and you know I
I and unfortunately the vote takes place
at a time when we're
you know still working through our
budget process. We're right in the thick
of it and right in the middle of it and
you know where we go through a very you
know succinct process of looking,
evaluating, revising um and and and
coming to a a budget level. And it's
it's all work in progress in that and
still in that November time frame. So
there's some work to be done there.
>> So So we only have I'm sorry. We we only
have se September to deal with this
because the
>> it's early November the vote. So we'd
have to make our decision in December,
try to get it out to the public in
October. Vote November 3rd or six or
whatever it is.
So, can we as a budget committee um
review this and educate our voters on
the ramifications
because like we know this, we we're
doing the finance and you know,
>> people are going to go to the polls and
they have no clue,
>> right?
>> And they may even
>> Well, and that's part of it, too. we
don't know if there's a public hearing
process um you know the way we normally
you know put things forward on for our
budgets and things like that. And so
that's the clarity that I think the
districts are looking for over the next
you know week or so um to make sure that
as we as we lead into the process we can
you know there's a consistent approach
of how data is evaluated and and
presented. So like at a at a district
level, our our work as a budget
committee is just to make sure we're
understanding the calculations that are
taking place. um what we can and can't
do and what it what we would be able to
you know once we understand you know
what inflation rate you're using and and
things like that you know we we would be
able to align with um Lance understand
where our current budget is our tax
effort is calculate what the impact
would be
and and just
>> so should we
>> see how it all comes together
>> have our preliminary generate um
guidance one month earlier
>> I don't
>> and then maybe include
HP300 as part of the overall discussion.
>> Uh we could probably calculate an effect
of what passed for FY27 and and
calculate an impact you know without
knowing what the final
>> actual numbers are that you know go into
tax rate setting for November 1st. I
mean that's the best that we're going to
be able to do. Um we have some more um
you probably got some more clarity from
the audit about you know final
unreserved fund balance levels and
things like that so so we can refine
some of the revenue um impacts and and
and get to a better number to use. But
yeah, I think that's all something that
can be done
by September. But as far as moving up
the whole process itself, I I'm
there there would be work to be done to
be able to do that. So not saying it
can't be done, but some but sometimes we
struggle to make October
um where we offer preliminary guidance.
So, I think it might be we might be
better served to look at the information
we have at hand through FY27 with the
estimates and the things that were
passed and put together a rationale
based on that and just continue to work
our budget process. I mean, we might
fall, you know, well within those
percentages anyway. Um but I I don't I I
don't know how to operationalize and
move forward the budget process unless
Lance you have any insight.
>> So but the big uh biggest concerns are
years like what will be coming up
because we're in a contract negotiation
year. So um the effect of those warrant
articles and things like that which
sometimes present
seeming step functions in the in the
expense that that normalize. There are
other other situations
um like what we instituted a bond. First
year of bond you don't pay much. second
year you pay a lot or not a lot but
comparatively a lot. Mhm.
>> So, anything
that is indexed to the prior year as
opposed to something that looks at
perhaps an extended period
is very very difficult
to manage because of the the volatility
of of some elements.
Well, like you say, there may be a few
big ticket items that
>> Well, the process is underway for, you
know, budget development and um
>> we'll be starting to look at, you know,
>> some of those items and
>> I don't personally, this is just my
opinion, I don't think that
people are going to dig into the
details. s in order to decide how
they're going to vote. They're going to
vote based on trust and relationship and
level of personal pain that they're
feeling the day they walk into that that
voting booth. Um, I think if if
individuals
feel strongly about it one way or
another,
they talk to the people with whom they
have relationships. Because when we put
something out there as a budget
committee or a school board,
there's there's the uh inherent bias of
the listener. And if they agree with the
school board or the budget committee,
they're going to be there. And if they
fundamentally disagree, they're going to
be against it.
I think it's it's comes down to this
whole question of is there majority
trust or not?
That's that's that's my view. So
for those of you who are saying what can
we do about it? I think the biggest
thing you can do is is talk to people
and perhaps target your your
conversations to those people who aren't
already aligned with your uh with your
views. It's not the easiest most
comfortable thing to do, but that's
that's how you bring about
>> compromise. And we should encourage them
to watch us while we're doing our thing,
and what you think about how our
meetings go. [laughter]
>> Okay. So, that's
>> Thank you, Darlene. That's very helpful.
>> Yeah. Thanks a million.
>> Happy to share. Um, [laughter]
>> hey, we all have to be informed, right?
>> Yeah, but the the uh climate's great in
here.
>> It's freezing in here.
>> Yeah, it is freezing. Jeez.
>> [laughter]
>> enjoy it while it's here.
>> So, it is 8:20 and I want to be mindful
of the normal 2hour window we put on
this. I think we'll go a little bit
longer tonight. I don't know that we can
cover the next few things in a 10-minute
period, but at this point, I'll ask Tony
to give an quick quick update on the
capital expenditure advisory committee.
>> Yeah, it was a very good meeting. A lot
of details particularly with the audit.
Uh but the end result was that uh we
came out clean. We did a good job of
>> Oh, no. I didn't mean the process
overview. I meant your capital
expenditure over that.
>> Oh, I thought it was getting not ending
yet. We're not
>> Oh, just to give an overview rather than
bringing up the charts. the um the
capital equipment advisory uh committee,
they want to take a a 10-year look at
large expenditures and there is a a very
nice spreadsheet that breaks it down
with the schools and uh that's only one
part of it, but the entire town budget.
>> I would like to clarify that this is
specifically for Hollis.
>> Oh yes. So this is an um the capital
expenditure advisory committee is
looking at things specifically for
Hollis. So any of the input that's
provided for the co-op is aortioned um
to show the impact to just Hollis as
they're putting together their summary
information.
>> Yeah. They want to take a look at
anything that's uh $10,000
and above and they want to have a a view
of it and
>> [snorts]
>> uh so that they can present that to the
select board and decide if they want to
do bonds or how they want to finance
large expendable large expenses.
And um in looking at it, they could see
what's coming down line, which we did
not have a very good view of. But now
looking at things like the elementary
school and
having these things visible. Now we have
the SAU budget and we have the BUDCOM.
The difference is the budcom is mostly
operational and those things that are
capital items end up going up through
the uh SAU budget and lumping them
together with things. So it's a little
bit a little bit difficult for the
budcom to present capital items because
they don't fall into our operating
budget. So that being said, um
I I would I would say that it's a good
look that we never had before and we
kind of fall as a budcom outside of that
a bit. So the the process that they're
putting can you talk a little bit about
the process that they're putting in
place like in the timeline for the the
>> timeline is pretty interesting because
the timeline is they want to have a
first pass at a budget like now
September. We don't have our first pass
until later and we don't have a complete
what we're going to send up to the
warrant articles until December.
and that falls a little bit way short of
what their timeline is. So there's a
there's a lack of synchrony from that
perspective.
There's not much I could do with that
because that isn't the way we operate.
So I think Lance, did you provide
>> in in July we provided capital
improvement plans for a 10-year outlook
um or the best we could
>> once we kind of get beyond five years
for Hollis and Co-op to the committee
>> and presented that information.
>> So my update is
no additional items seen this year.
Well, I think that they're they're
looking for like an updated view, you
know, in September, which is as the the
budget processes are going getting
underway, and then I think one more
update, I think it's toward the end of
the year. Is that correct?
>> And and on the initial view right now,
no large capital items on on,
>> you know, we're still in the very early
stages of the new items spreadsheet,
which did me today. Um but
nothing that we weren't anticipating
that would meet the threshold.
>> And I think we're able to provide on a
10-year basis our our bond and lease
impacts
>> as our as we're working through
amortization
>> visualization to that over the 10 years.
But I think what they'd like to see is
there is there anything else just from
the BudCon standpoint that would be
falling in line a year or two from now
and
overlapping with that. We like to do
things let something drop off and add
something to it.
>> Right. I think what you know when it
originally um was put out as a warrant
article to establish the committee it
was an effort to just under to
understand that and and not be surprised
or blindsided necessarily by um projects
that you know weren't anticipated. So,
this is an opportunity for the Hollis
district, the co-op, and the town to
kind of lay out that 10-year view. Um,
for the town, that might include, you
know, their public services and, you
know, redoing, you know, if they're
going to consider a municipal complex or
something for police and fire, if
they're um going to put the Farley
building back out, if they're going to,
you know, do renovations to town hall.
and how does that
>> align to
um a renovation at the um elementary
level and any other you know larger
projects that would impact the co-op.
>> For example,
>> that was brought up the safety complex
was brought up last year kind of as a
surprise near you know where did this
come from? And maybe that was
to bring attention to it, to bring
awareness. But if the land hasn't been
bought and the safety complex,
why you committee working on that issue
or
>> actively working on that issue?
>> I would say yes, but there's probably so
early on there's no details to
>> I think some of the focus has shifted a
little to town hall itself. Not to say
that they're eliminating the that that
municipal complex idea, but I don't I
don't know how that's evolving. So,
>> what I'm hearing is the need is to have
about 10 acres.
>> The question is where
we haven't found a place yet that
>> good it doesn't exist.
>> So, the next update updated view will be
in September and when that is is
available, we'll share that with you.
Again, it is a Hollis only view and a
Hollis only impact, but because co-op
update is um included. I think it's just
important that we be aware of, you know,
what's being um put in that into a
report like that. Um Tom, is there any
information you can share from
schoolboard perspective?
>> Yeah. Um been a while since we met, so I
just looked through to see if there was
anything particularly noteworthy. Uh I'm
just looking back from June, we had that
[clears throat] special meeting for
curing a warrant.
>> And that uh did result in a successful
vote uh yes 171 no 94. So
pretty close to 2/3 uh majority pass. So
that allowed us to move forward with the
the results of the March meeting which
was was good and we're very appreciative
of the public who came out and supported
that even some people who might not have
voted for certain items came out and
supported it because I think they
support the process and that I think is
a it's very positive thing. Um
we uh went through a fair amount of
discussion
uh in the last couple of months about
the um performing arts situation and
there were meetings on that. Um the
upshot of it is that there has been the
formation of a uh a working group or a
committee to address some of the
concerns that were brought up there. And
I think that some of the thought process
that that brought about is going to
permeate throughout the the overall
view of curriculum and and how we how we
view certain topics. But it was it it
was a net positive
um activity even though
uh perhaps the
current year outcome is not what
everyone hoped for. Um [clears throat]
we uh received the NEAS report in July
and that was a a relatively positive
report and the process was viewed as
having been very helpful. Uh, it it's
interesting. There was
there was a lot of detail in it, but
none of the
I didn't pick up on any of the real uh
earthshattering kind of things like this
has to be done. It's not like you don't
do this or you don't do that. Uh there
was a recognition of
a need to have some continued activity
about um getting uh information
improving some communications with
within the district as a whole. But
there was a recognition that pro
progress is being made and encouragement
to continue process steps as opposed to
saying you need to stop doing this and
do something different. And the the
results were were viewed to be uh
overall very positive for the school
district and I think that the work done
by this committee contributes toward
towards that. the the fact that the
facility is in good shape. Uh the staff
um uh the the staff input was was
generally positive. It wasn't one of
those situations where it became a
complaint session or anything like that.
>> Is the report itself posted online?
>> I believe it is uh I believe it was in
the sense that it it was attached to one
of the board packets I believe.
>> All right. So, I don't know whether it
got posted as a standalone item yet or
not.
>> I can I can see it also.
>> no, I was just curious to
>> skipping ahead a little bit brings up
the point that there's a [clears throat]
lot of work currently being done on the
website itself.
Um,
I don't know what the exact timeline
was, but we're basically on a new
platform now. And in we also have new
staff. Um and a dashboard is has already
been created in the fatal level and is
expected to go live
um by the start of school uh with some
additional resources and things and it's
it's going to evolve. if they're
starting out with things, but but one of
the elements is going to be creating
easy access
to things like state performance
information, school performance
information. These are all things that
are public data,
but have not always been easily
retrieved by the public. So, uh, it will
be a work in progress, but it's great.
We've been pushing for this for for
literally for years and, um, very
pleased that the, uh, administration has
been successful at getting this launched
and once it's in place
becomes relatively straightforward to
build on it. It was getting the initial
um the initial concept into reality and
the combination of having a new platform
and having staff who are uh experienced
at doing this kind of work uh culminated
in in [clears throat] the dashboard
coming into existence.
there uh
sort of in relation to what what Tony
was just talking about, there was some
confusion
about co-op input to the capital
expenditure committee because of the
uncertainty of the the time and cost and
the the ambiguity
of the numbers due to aortionment. So
the the question is if you look at if if
[clears throat] the
if the district puts in that something
costs something,
do they put in the cost the total cost
and rely on the committee to understand
that the cost of Hollis is only a subset
of that or do they put in the cost that
goes to Hollis
and have someone misinterpret that
that's a total cost so when they see the
warrant article So there's some concern
about how do we balance co-op input to
this with the fact that it's a Hollis
only activity.
>> So that input was given to Rob and
he he will bring that back
>> and you're 100% correct because
>> we only get an aortionment and it
depends on whether it's a capital item
or if it's a you know something that's
operational. Yeah. So
>> the portments are different
>> and and e either way it's it's it's not
100% to anyone. So
>> um the
there was discussion around the
facilities committee and update as to
what's going on. Uh the belief is that
everything's still on schedule. Uh there
was a a decision to cancel the middle
school open house this year because
it overlaps the period when there's
going to be crane work done and they
didn't want we don't want people in the
building when the crane is doing rooftop
activity.
So the decision was made rather than
have to call a lastm minute cancellation
of it to up front just say it's not
going to happen. It's it's not a big
deal but it you you may hear some
backlash about it because what it is is
the the u kids who are stepping up to
the middle school for the first time
won't have that opportunity to come in
and get a um a private essentially
guided tour of of of the school. But the
uh work has been done uh getting the the
[clears throat] items the crane work was
done at the high school already to get
the items up on the roof for the uh
solar installation and uh there's a lot
of work going on here. It's it's still
coming down on the wire, but we believe
that it's on schedule and uh
that it will not impact the opening of
school.
Um but beyond that
in line with the fact that you know the
kind of information that's gone to the
committee
no specific projects have been
identified at this point
uh that
would drive the the next task for the
facilities committee. So there's going
to be a discussion as to how do we we
want to keep it's a standing committee.
we want to keep it going, but we don't
want to just have meetings to meet and
say we've got nothing to talk about. So,
that that's a that's a discussion that's
going on. Um and then the final big
thing coming up is we expect to enter
into contract negotiation this year
and um we're starting to um try to
understand what are the goals and
objectives uh going into that. Um
>> and is it just for the professional
staff or is it support staff as well? I
believe it's just the professional staff
because the last thing we did with the
support staff added an extra year on to
to uh keep things keep things going. So,
>> who's negotiating?
>> The negotiation team right now is uh
Holly uh Babcock, the the chair, Rob
man, and me.
>> Excellent.
Not that you need it, but I very much
approve.
>> That's a that's a good group.
>> Thank you. I appreciate um all that
information. Do you do meet for both
months in the summer?
>> You didn't take a month off or anything
like that.
>> Correct.
>> Great. Thank you. Um I realized in
looking at the agenda that I included
the um results report from June 11th but
neglected to put a financial update on
the agenda. Um so if you don't mind,
Lance, I'll because we're short on time.
The net result on June 11th was a
projected fund balance of $768,000.
I'm sure you have updated information as
the result of closing things out and you
know audit changes and things like that.
So I would expect September's result to
to um results package to be like the
final view for 26.
>> Yes. Yes. We Okay.
>> We have rough numbers right now but
final numbers. So we we'll have those
for the next meeting.
>> Numbers higher or lower?
>> Higher. Good.
>> So I apologize for that. It's just an
oversight on my part. Um and thank you
Tom for mentioning the um
the CBA um negotiations. I did share
with everyone just a couple of link and
some reports. The New Hampshire PELRB
contains every contract known to man. Um
so if you wanted to look at um and I I
included our our own contract for the
co-op professional staff, but if you
wanted to look at certain contracts of
certain districts or those that we've
compared ourselves to in the past,
that's a great place to go to look. Not
every negotiation cycle aligns exactly.
So, while we're going into an, you know,
a negotiation window starting in FY28,
some might be, you know, have have
entered um and started a new contract
for 27. So, so districts aren't required
to align and um
but but the information is out there. I
also shared um a report that's available
from the DOE website which is the um the
min and max for each step in every
district's
contract. So what you're able to see
from that is within a district um what
did their step tables look like? So
there might be um step tables that are
bachelors to masters plus 30. There are
some districts that go to masters plus
45. There are some districts that have
only, you know, 10, 12, 14 steps, some
districts that have 20, but you can see
where the min and maxes are for
districts themselves. And you can start
to draw some conclusions or, you know,
look comparatively of where the co-op
falls through, I believe it was
26. So, it is not it does not include
the information for the current year
that we're in now, fiscal year 27, but
you could get that information by going
to the PLRB website and seeing where the
mins and maxes are.
>> Is it just steps or steps plus um
uh cola? Is it is it actually from the
step table?
>> It's from the it's from the cont it's
from the step tables of the contracts of
every district. So it's not
>> it's not the step tables themselves and
it doesn't talk to the increases that
might be taking place like step to step
but but if if there's a comparable
district that you can use the the max
for example
>> ours 2 and a half% step to step
>> right you could say oh you know what we
align to x district let's go to the plb
website and look at what their steptoep
actual table changes um you know step
changes are see if we're aligned that
way and things like that. So there at
least gives you a starting point which
and part of the reason for um providing
that is just to kind of I know the the
um school board um has a team and they
do their negotiations but I wanted to
share that information that's important
for budget committee on budget committee
members to understand you know where we
how we align even within just SAU41
compared to the Brookline school
district and the Hollis school district.
but in order to just start the
discussion of how we might want to um
look at some information and potentially
provide some input to the negotiating
team. So, it's out there. We can have um
an additional conversation about that in
September. If you do have anything you
would like to specifically
um consider with in the contract itself,
send me an email so I kind of have an
idea of um maybe where to get some
information or how to kind of put some
information together for us to just
discuss in September. That would be
great.
Okay. So again, I want to be respectful
of time. Um
I think that's everything. I think we'll
be back on track for the 4th of Thursday
of September, which is September 24th.
And um we'll we'll go back over some of
the impacts of House Bill 1300 and some
calculations, look at some of our trends
um over time. and we'll have that
information and we'll start getting into
um any uh talking a little bit about we
can talk about some of the um budget
assumptions either changes to NHRS
things like that and we can get start
getting underway um with our budget
process and how we're going to evaluate
and manage House Bill 1300.
>> So the 24th not the 17th
>> correct?
So with that now I'll ask for your
process observer input Tony.
>> Well thank you try to be um very nice
meeting a lot of information a lot of
detail starting off the audit was very
nice to know that we did have a clean
report clean bit of health on that. Um
looking at some of the other uh specific
areas. Um let me just think food service
has enough fund balance that we have I
guess three months to to spend that off.
Um and I think one of the final things
in the report is that we're consistent
which is a good thing because we are
consistently good on that. Um
uh then there's the legislative updates.
Uh a nice explanation of recess versus
adjournment which
a little confusing but it's it's
>> it was it was confusing to the people
>> in closer to the process as well.
Um and
resolve uh dissolving the co-op is
interesting because uh
comes up every so many years and people
don't understand what it's required and
what that's about. But looks like that
um it's a unilateral decision now that
could be made which would force the
issue to to a vote. Um,
>> unilateral but with a big financial
consequence.
>> Yeah. It's like buy another school.
>> Oh, buy build another school.
>> Build another high school.
>> Uh,
let's see.
Uh, SD to talk about H House Bill 1300,
the tax caps and the the ins and out
with that. Um,
but interesting to know there's a 60%
that has to be met, which may or may not
be met. Nice to know also that uh the
inflation cap is 6%, we're at 3.9.
So, we're below that. That needs to be
>> No, this the 6% was for the SAU budget.
the inflation um just to clarify make
sure the information we're we're sharing
um the the inflation would be tied at
some level to the Bureau of Labor
Statistics. We just don't kind of know
>> know what that is
>> exactly um which month which which comp
what composite data you know northeast
region Boston whatever
>> it but the 6% was related specifically
to the SAU budget that wasn't the
inflation
>> of the total spending
>> as the percent of total spending that
was not the inflation factor listed in
the legislation just to make sure
everybody's clear. Got it. Good. Thank
you. Uh, and the fund balance that we
spoke to over 700,000
was nice and that was about it. Good
job. What an estimation.
>> All right.
>> So, at this point, seeing no other
questions or items, I'll take a motion
to adjourn at 8:46 p.m. So moved by
Melanie, seconded by Ro. All those in
favor?
>> I I one two three four five zoo. Thank
you.