Business Committee Mtg. June 12, 2006

[Guest sullinss]

Proceedings of the Business Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

June 12, 2006

 

Call to Order

 

The Regular Meeting of the Business 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, June 12, 2006. Chair K. Dale Getz called the meeting to order at 5:30 p.m. and led those assembled in the Pledge of Allegiance. Committee members present were K. Dale Getz, Shanna Henry, Joan Sleeth, Kari Altenburg, Scott Anderson, Peter Grass, and Rachel Stagg. Absent were members Jerry Hansen, Curt Prchal, Tim Cranston, Jerome Chvilicek, and Katharin Kelker. Also present were Thomas Harper, Dave Williams, Jack Copps, and Joel Guthals.

 

A Special Board of Trustees Meeting was held earlier this evening at 5:15 p.m. to make Trustee appointments to committees for this next year. Therefore, effective with this meeting, the Trustee members on the Business Committee are K. Dale Getz, Katharin Kelker, and Rachel Stagg. Chair Getz noted with appreciation the contributions to the Committee by Trustee Joel Guthals’ this past year and welcomed Trustee Rachel Stagg to the Committee.

 

Communication from the Public

 

No one wished to address the Committee.

 

Consent Agenda

 

Shanna Henry moved to recommend Board approval of Consent Agenda items as follows:

1. Special Business Committee Minutes of May 08, 2006

2. Regular Business Committee Minutes of May 16, 2006

3. Addition of Trust Account for Special Staff Functions at Lewis & Clark

Peter Grass seconded the motion. The motion carried unanimously.

 

Addition of Skyview Star Observatory ECA Account

 

This item was tabled from the May Committee meeting pending answers to questions on the account the funding was originally deposited into. Thomas said it should have been put into ECA originally so they will be moving those funds now.

 

Scott Anderson moved to recommend Board approval to set up a Skyview Star Observatory ECA Account at Skyview High. Shanna Henry seconded the motion. The motion carried unanimously.

 

Increase in Student Activity Tickets

 

Dave Williams reported at the Board meeting when they decided to raise participation fees from $20 to $50, a Board member recommended finding a way to set up a fund to help pay for students that can’t afford the increased fee. Raising the activity ticket fee from $15 to $20 would provide $13K-$14K additional funding for an account to offset costs for those students that can’t afford to pay the increase. A Wendy’s Scholarship Fund also provides about $4K annually to assist with fees.

 

Dave was asked to add a provision to the student sign-up form that allows donating extra money to a scholarship fund to assist students with funding.

 

Rachel Stagg moved to recommend Board approval to increase the price of student activity tickets from $15 to $20 and also include a check-off provision for additional donations for scholarship funding. Peter Grass seconded the motion. The motion carried unanimously.

 

Distribution of Supplies & Property at Crossroads

 

Dave Williams reported since Crossroad was closed there has been discussion regarding the disposition of supplies and property such as computers, desk, chairs, clocks, etc. All items have been inventoried and identified as to the budget accounts they were purchased with. Administration has examined future District needs. With the Board’s permission, Dave was appointed “holder of the property” and will distribute items on the basis of need, the funds they were purchased from, and consideration of Beartooth Elementary needs and potential growth. Dave would like to distribute the property after summer school is completed. This is a request to be allowed to disburse the equipment at Crossroads in a manner deemed appropriate by the Superintendent.

 

The value of older property is difficult to determine. Property purchased with Title dollars is not specific to elementary or high school funding. If there is substantial General Fund property, funds can be determined for transfer value.

 

Peter Grass moved to recommend the Board grant the Superintendent authority to dispose of the Crossroads property and supplies consistent with appropriate accounting for items purchased by the General Funds from the Elementary and High School Districts. Rachel Stagg seconded the motion. The motion carried unanimously.

 

Disposition of Crossroads – Real Property

 

Thomas said at the April 18, 2005 Board Meeting trustees passed a resolution regarding the Crossroads property location that they “may sell or dispose of the real property in any reasonable manner that they determine to be in the best interest of the District.” He asked the Committee to either reaffirm the recommendation to dispose of the property or decide if the property has value to the District as a whole.

 

Dale explained an initial offer for the property was $1.8M and the Committee sent it to the Board. The Board decided it “may sell or dispose” and so it still has to go back to the Board for a final decision. Repair costs to bring the Crossroads building up to standards were estimated at $2,675,000.

 

Several Committee members believe this is not a good location for a school. Shanna agrees but reminded the Committee that if the State promotes all-day Kindergarten it would create a need for additional classroom space. Jack said there is an interest in understanding if the sale of this property could generate any money for high school reserves; yet, this could also be an opportunity for the elementary district to bank money for a new elementary school if needed in the future. Dave said we only received one proposal for $1.9M, but there is interest from persons to market that piece of land. Leasing would not generate enough money to make it worthwhile. The District is in the process of obtaining an appraisal. Jack believes it is in our best interest to recognize we are moving forward in a proper manner with an appraisal and that information will be available to the Board to make a decision. The Business Committee would have an opportunity to make a recommendation to the Board after reviewing the appraisal.

 

Shanna Henry moved to defer any action on the disposition of the Crossroads property pending receipt of the appraisal. Scott Anderson seconded the motion. The motion carried unanimously.

 

Budgeting for Results

 

The new Budgeting for Results process will create a balanced budget in which resources are aligned with the core mission of the District. Draft Objectives and Indicators developed by the Guidance Team as part of this process will be presented to the Board on June 19, 2006. This will be a lengthy process and a lot of work will be necessary to translate how this information will be used to build a budget.

 

Health Insurance – Gallagher Quarterly Report

 

The quarterly report prepared by Gallagher Benefit Services, Inc. regarding our Health Insurance Fund 278 was presented for review.

 

 

 

 

Health Insurance – Financial Statements – April, 2006

 

The Balance Sheet and Statement of Revenue & Expenditures for April, 2006 is prepared by the Business Office and presented to the Committee for review. Thomas reports the fund balance on the Balance Sheet looks great at $2.9M. A new accounting circular goes into effect this year dealing with post-employees retirement benefits. The only post-employees retirement benefit our District has is our retirees that stay in our health insurance plan. If they were outside of our plan, they would pay a higher rate; therefore, there is an implied liability for the active employees subsidizing their premium. This will need to be reflected on our audited financial statements as an unfunded liability in our Health Insurance Fund. Thomas said the District does not have a contractual obligation to provide this service.

 

Bills Paid – May, 2006 (summary sheet)

 

Peter Grass moved to recommend Board approval of the bills paid for May, 2006 provided all procedures for review and authorization in accordance with District regulations and financial controls were followed subject to the language on page 52 of the agenda. Joan Sleeth seconded the motion. The motion carried unanimously.

 

Financial Reports – May, 2006 (Unaudited)

 

The Committee reviewed the unaudited Financial Reports for May, 2006. Joel asked if we are falling behind in receiving revenue to pay for expenditures. Thomas replied revenues are exceeding expenditures but the County Treasurer’s report is behind a month, and the extra end-of-year payrolls affect the May report. Discussion was held regarding the District managing our own funds vs. the County.

 

Adjournment

 

There being no further business, the meeting was adjourned at 7:00 p.m.

 

 

 

 

K. Dale Getz, Chair

 

 

 

 

Sherrill Sullins, Recorder