Mar 21, 2005

[Guest sullinss]

Proceedings of the Business Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

March 21, 2005

 

The March 21, 2005 Special Business Committee meeting was called to order at 4:45 p.m. by Chair Malcolm Goodrich. Members in attendance were Peter Grass, Jerry Hansen, Dale Getz, Bob Whalen, Malcolm Goodrich, Joan Sleeth, and Judy Herzog. Members absent were Patty Lacy, Shanna Henry, and Curt Prchal. Also in attendance were Dan Martin, Thomas Harper, and District Clerk Leo Hudetz.

 

Mill Levy – Discussion/Decision

 

Chair Goodrich stated he was contacted by four different committee members requesting another meeting be scheduled to discuss and forward a recommendation regarding the mill levy to the Board. They stated they didn’t understand the process at the March 14th meeting. The Chair noted the agenda item on March 14th did say “discussion/action” and the Chair did call for a motion.

 

At the March 14th meeting, budget issues were raised concerning insurance. As a result of these discussions, a revised budget is being presented with health insurance increases, contingency for negotiations with MPEA, and increases for life insurance and LTD removed from the budget.

 

Dan Martin said last year we had increases in Life and LTD which were not bargained for. Since that time, the Negotiation Committee met and they agreed upon a Memorandum of Agreement which is awaiting Board action. Costs went up more than what was negotiated in the agreement and will occur again this year at a cost of $40-50K per year to the District. In the past the District budgeted $14.75 for Life and LTD, and now the cost is $17.50. Bids on those two items next year may cost $18-19 per month per employee. The actuary has determined the health insurance fund is about $2M short of which $800K is reserve billing to keep a three-month run out on claims. We’re operating on a two-month claims run out which is sufficient if we remain self funded. Claims are about $900K per month which means we would need $1.8M for a three-month run out. Rates were increased in January, but may not be enough. The Insurance Committee will meet in April to review March claims. If the Board chooses to not fund an increase over the contractual amount, it may cause people to drop off the plan which will increase rates further. The Board sets the premium and decides on the reserve level.

 

The Chair stated that even after removing insurance increases and contingency for MPEA, the budget is still short $1.3M. Judy expressed that the MPEA group should be treated equitably.

 

Some clarifications were given as to how revenue was determined, how salaries were estimated, how sick leave and termination pay is booked, and how retirement vacancy savings were factored in. Dale asked why there was such an increase from the Elementary General Fund supplies line item FY 2004 actual of $535,000 to the FY 2006 budget of $933,000. Thomas will check and get back to Dale. Dale asked if interruptible gas savings was reflected in the budget. Dan said it was not, but they hope for a 20% savings at the three high schools and middle schools that have that service.

 

Chair Goodrich stated that whatever the Business Committee recommendation might be, he as a Board Trustee will introduce a motion that the Board call for an elementary and high school levy election because of the deadline; and, he is concerned about the state of flux with the money issues subject to a Board study session to review the budget and budget cuts.

 

Jerry Hansen introduced a motion that the Business Committee not make a recommendation on the mill levy. Dale Getz seconded the motion. Those voting in favor of the motion were Jerry Hansen, Dale Getz, and Judy Herzog. Voting against the motion were Bob Whalen, Peter Grass, Joan Sleeth, and Malcolm Goodrich. The motion failed.

 

Bob Whalen introduced a motion that the Business Committee recommend the Board call for an elementary and high school mill levy. Joan Sleeth seconded the motion. Those voting in favor of the motion were Bob Whalen, Peter Grass, Joan Sleeth, and Malcolm Goodrich. Voting against the motion were Dale Getz, Judy Herzog, and Jerry Hansen. The motion carried.

 

Adjournment

 

There being no further business, the meeting was adjourned at 5:22 p.m.

 

 

 

 

Malcolm Goodrich, Chair

 

 

 

 

Sherrill Sullins, Recorder