Budgeting For Results Comm. - Sept. 13, 2010

[Guest sullinss]

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

September 13, 2010

Call to Order

 

The Budgeting For Results Committee of School District No. 2, Yellowstone County and High School District No. 2, Yellowstone County, Montana met at Lincoln Center, 415 North 30th Street, Billings, Montana, on Monday, September 13, 2010. Committee Chair Joel Guthals called the meeting to order at 5:25 p.m. and led those assembled in the Pledge of Allegiance. Budgeting For Results Committee members present were: Connie Wardell, Rod Gottula, Peter Grass, Sandie Mammenga, Deana Elder, Joan Sleeth, Joel Guthals, Paige Darden, Tom Bick, Bruce MacIntyre, Barb Bryan, and Don Stanaway (came at 6:45 p.m.). Committee members absent were Kelly Donovan and Charles Loveridge.

 

Also in attendance were: Thomas Harper, Rob Rogers, Barb Buss, Lindy Graves, and Greta Besch Moen.

 

Communication from the Public

 

No one wished to address the Committee.

 

Confirmation of Membership Intent to Serve FY2010-11

 

Chair Guthals secured confirmation from each member present that they wished to continue to serve on the BFR Committee FY2010-11. Members absent had previously indicated they wished to continue to serve on the Committee. Membership will be ratified at the September Regular Board Meeting.

 

Consent Agenda

 

Bruce MacIntyre moved to recommend the Board approve the Consent Agenda items as follows:

1. BFR Minutes of July 12, 2010

2. Addition of Library ECA Fund Account at Newman

3. Addition of World of Work ECA Fund Account at West High

4. Addition of School Store ECA Fund Account at Bench

5. Approval of Bus Routes

Joan Sleeth seconded the motion. The motion carried unanimously.

 

Bills Paid – August, 2010 (summary sheet)

 

Bruce MacIntyre moved to recommend the Board approve the Bills paid for August, 2010. Peter Grass seconded the motion. Chair Guthals stated the bills paid details are posted on the website and also on the School Board email; and, all bills paid for the month were reviewed and authorized in accordance with District regulations and are in compliance with school, state and federal laws, policies and procedures. The motion carried unanimously.

 

Financial Reports – August, 2010 (unaudited)

 

The Committee reviewed the Financial Reports for August, 2010 (unaudited). The year is 16% complete. Thomas explained the Health Insurance Fund is a cash fund and is only budgeted as revenue is received for premiums, i.e., as we run payroll we collect revenue as posted.

 

Trustees Financial Summary FY2009-10

 

Thomas explained this is a statutory report we are required to submit to the Office of Public Instruction (OPI). It is basically a trial balance. Most of the information is on a cash basis and shows what the District spent in various funds last year. This information is condensed into the Comprehensive Annual Financial Report (CAFR). This report was submitted on September 16th; but, it is not official until the audit is complete and adjustments made. Changes can be made until December 31, 2010. OPI does a comparative analysis after all districts have completed their audits.

 

Thomas explained protested taxes are paid but the County puts them in escrow, and they are not available to spend. PPL, Northwestern Energy, etc. make up most of the protest and they do it automatically to save money on their total tax bill. Protested taxes are higher this year than last year. Connie asked if the County keeps the interest earned on protested taxes held in escrow. Thomas will find out.

 

The Elementary Building Fund of $2.9M consists of some money from the sale of the building and land on Grand Avenue plus some rental money and interest. The Building Reserve Fund of $307K consists of money left over from the expired Building Reserve levy; and, it is used for emergencies. The $4.5M is an estimate of our long term obligation for Compensated Absence that may be needed FY2010-2011. This fund is used to pay sick, vacation, and termination pay. The termination pay numbers are actuarially determined.

 

Bruce MacIntyre moved to recommend the Board approve the submission of the Trustees’ Financial Summary Report FY2009-10 to the Office of Public Instruction. Connie Wardell seconded the motion. The motion carried unanimously.

 

Health Insurance Financials – June, 2010 (unaudited)

 

Committee members reviewed the Health Insurance Financials. The Total Liabilities & Fund Balance as of June 30, 2010 is $3,586,941.35. Thomas said FY2009-2010 revenue of $16,050,033 is fairly well balanced against total operating expenses of $16,179,703. FY2010-11 the budget was based on balancing a 6% increase in revenue, as recommended by the actuary, with the estimated amount paid out for claims. The District has the capability to make changes in their self-insured health insurance plan. Discussion was held on the different plans and groups insured.

 

Thomas advised there is an Employer Health Benefits 2009 Annual Survey included in the agenda for review regarding Worker and Employer Contributions for Premiums. Barbara Bryan requested comparative information on our District plan regarding average percentage of premium paid by covered workers for single and family coverage, and average monthly worker premium contributions paid by covered workers for single and family coverage. Thomas will calculate this information.

 

Status on Optimizon Report

 

This Committee previously received a report from Optimizon for a projected savings of $500K over a five year period through professional management of our paper usage by printers/copiers, etc. This Committee endorsed exploring this area as an opportunity for savings. Thomas explained Administration is examining this issue and alternatives. Control of purchasing/maintenance contracts can be done internally. Thomas expects a recommendation from Administration will be brought forward in October. Committee members discussed pros and cons of internal versus external management of this project.

 

Update on Other Budget Saving Concepts FY2010-11

 

This Committee would like to go paperless if we can find a way to transmit the agendas so everyone can open the files successfully. Chair Guthals and Thomas Harper will address this problem with Karen Palmer, Director of Technology.

 

Thomas assured Committee members that budget saving concepts and questions he received from them over this past year would be analyzed and reported on.

 

Budget Calendar

 

Thomas presented the Preliminary Budget Calendar to the Committee with key items that lead to budget adoption FY2011-12. Key dates on the calendar are the October fall count of enrollment and the Legislative Session from January 3, 2011 to April 22, 2011. Thomas sees nothing from a revenue standpoint that would change his forecast in the next biennium even with the addition of the $30.7M in job funds. All employee negotiated contracts expire at the end of fiscal year 2010-11.

 

Chair Guthals stated this Committee will start looking at the expenditure side of the budget. Revenue will be determined in the Legislative Session. The importance of being involved in the Legislative Session was discussed.

 

BFR Committee Focus for Next 3-6 Months

 

Chair Guthals stated this Committee will start their focus on the expenditure side of the budget. Department Heads will be asked to present money saving efficiencies they believe they can deliver in performance of duties. Committee discussion pointed toward the need for the District to decide what they want to achieve and define results perhaps through the Budgeting For Results Process. Thomas agreed it is not effective for presentations until the District decides on the internal budget decision process. Six years ago the Budgeting For Results Process was adopted by the Board to establish priorities and only fund to those priorities; however, it was never fully implemented.

 

Committee member comments included:

• Request Departments to present a target 5-10% reduction in expenditures, and present priorities

• Keep the rules the same for all Departments when asking for budget reductions

• Ask Administration to present realistic cuts

• Present a percent reduction so Departments can present different scenarios

• Departments need to present data to back up budget cuts being presented

• Personnel costs and staffing is confusing

 

Chair Guthals said he will meet with Dr. Beeman to determine the most feasible way to present this information to the Committee. Dan Martin will be asked to address the Committee to answer questions on personnel.

 

Adjournment

 

There being no further business, the meeting was adjourned at 7:45 p.m.

 

 

 

 

 

 

Joel Guthals, Chair

 

 

 

Sherrill Sullins, Recorder