Business Committee Minutes - August 7, 2006

[Guest sullinss]

Proceedings of the Business Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

August 07, 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, August 7, 2006. Chair K. Dale Getz called the meeting to order at 5:34 p.m. and led those assembled in the Pledge of Allegiance. Committee members present were K. Dale Getz, Katharin Kelker, Jerry Hansen, Rachel Stagg, Kari Altenburg, Shanna Henry, and Stan Barr. Absent were members Peter Grass, Joan Sleeth, Curt Prchal, and Jerome Chvilicek. Also present were Business Manager Thomas Harper, Superintendent Jack Copps, and District Clerk Leo Hudetz.

 

Consent Agenda

 

Katharin Kelker moved to recommend Board approval of Consent Agenda items as follows:

1. Business Committee Minutes of July 10, 2006

2. Addition of Middle School Stipends ECA Account at Lincoln/Activities

3. Addition of High School Stipends ECA Account at Lincoln/Activities

4. Addition of Environmental Science Club ECA Account at West High

5. Request to Cancel Outstanding Warrants

Rachel Stagg seconded the motion.

 

Jerry Hansen requested items 2 & 3 be separated from the Consent Agenda for further discussion.

 

The motion was amended to recommend Board approval of the remaining Consent Agenda items 1, 4, and 5. The amended motion carried unanimously.

 

BUDGET FY2006-07

 

Thomas Harper related this year is a transitional one for Budgeting for Results, but we made progress toward our goal of a structurally balanced budget. Our total General Funds revenue increased $4.6M over the prior year; and, our total budgeted funds revenue is $110M which is an increase of $6.2M over the prior year. Our total budgeted funds expenditures are $110M which is an increase of $4.9M over the prior year. Last year ended better than anticipated due to lower utilities, no overspending in Special Education, and savings due to a hiring freeze, energy conservation measures, and a purchasing freeze.

 

Superintendent Copps said High School reserves are approaching the three percent level, but we still need to work toward the five percent level.

 

General Fund Budgets:

Thomas Harper stated FY2006-07 the General Funds were budgeted as close as possible for severance and utilities. $169K is budgeted in High School Board Contingency and a similar amount in Elementary as a result of insurance decisions.

 

It was asked what was included in the expenditure “Other Use of Funds.” These are object code 900 expenditures and include contingency, vacancy savings, transfers to other funds, and residual transfers out. The new money in the high school budget for the “At Risk” students is spread throughout the budget.

 

Jerry Hansen noted Elementary General Fund salaries increased 1.77% and High School General Fund salaries increased $2.7%; however, everyone was given a 3.5%-4.5% increase with steps and lanes. He also noted the significant transfers from budgeted to non-budgeted funds may have to be made up some time in the future. Thomas said about 13 employees were transferred to Indirect funding; some Homebound were transferred to the Transportation Fund and some Facility Services was transferred to Deferred Maintenance and Weatherization. The District is well aware of the impact on Indirect Funds. Jerry stressed the need to improve our reserve levels; that our percent increase in reserves is not an increase over prior year, but just better than what we expected. Jerry would like the Board to set policy on the District’s reserve levels. Katharin said the District is making a conscious effort to improve reserves and this budget is a big step forward in that direction; and, any contingency is an opportunity to increase our reserves. Thomas noted that by closing Crossroads Alternative High School we were able to give each high school an additional $150K from facility savings.

 

Transportation Fund Budgets:

Thomas reported the biggest change is moving Homebound instruction into the Transportation Funds; and, the Elementary $250K expenditure was designated for the building of a bus turnaround at Boulder Elementary.

 

Jerry asked how we can justify dropping the reserve level from 9.2% in year 2006 to a 4.3% level in year 2007 since the law allows us to go to a 20% reserve level on a permissive levy. Thomas stated we can closely identify expenditures in this fund, and we have one extra route built in contingency for about $40K.

These reserves are for major increases in gas prices, fuel surcharges, and enrollment.

 

Tuition Fund Budgets:

The budget numbers were questioned. Thomas will review them.

 

Retirement Fund Budgets:

The reserve levels are at 35% due to the fluctuation of retirement levels and retirement options for District employees.

 

Adult Education Fund Budgets:

It was questioned why elementary salaries increased 21% and high school salaries increased 45% over last year. Thomas will check on this.

 

Technology Fund Budgets:

These budgets are primarily funded by Timber Funds.

 

Flexibility Fund Budgets:

This is special funding which allows the option of depositing this grant in the General Fund or the Flex Fund. We choose to deposit it into our General Funds. Elementary Reading Tutors and High School Instructional Aides are funded from these budgets.

 

Debt Service Fund Budgets:

We normally receive a 47%-48% Facility payment. We will receive the payment this year, but there is no authorization to receive this money FY2007-08. We are following the OPI recommendation to levy the full amount of the debt payment this year so we can reduce the levy in 2007-08 when the bonds are paid off.

 

Building Reserve Fund Budgets:

These funds are used to pay for major maintenance, remodeling, and building projects. The budgets reflect an estimated $1.4M Elementary and $1.2M High School carryover from the prior year. We also have one-time Deferred Maintenance and Weatherization funds of $1.5M Elementary and $800K in Miscellaneous Funds.

 

Bills Paid – July, 2006 (summary sheet)

 

Katharin Kelker moved to recommend the Board approve the bills paid for the month of July, 2006. Shanna Henry seconded the motion. The motion carried unanimously.

 

Addition of Middle School Stipends ECA Account at Lincoln/Activities

 

Jerry Hansen asked this item be removed from the Consent Agenda to discuss if ECA accounts are the correct funds to pay stipends. Jerry believes this is a payroll function and should be paid from the Miscellaneous Program Fund for proper accounting so it will go on the W-2’s.

 

Thomas explained all student ECA accounts are reconciled. A separate District-wide ECA account would be used to pay these stipends to track these payments. All stipends will be reported properly for payroll taxes and will appear on W-2’s. Other large school districts handle stipends in the same manner. Thomas will refer this to our auditor.

 

Katharin Kelker moved to recommend Board approval to add a Middle School Stipend ECA Account at Lincoln/Activities. Shanna Henry seconded the motion. Voting in favor of the motion was Dale Getz, Katharin Kelker, Shanna Henry, Rachel Stagg, Kari Altenburg, and Stan Barr. Voting against the motion was Jerry Hansen. The motion carried.

 

Addition of High School Stipends ECA Account at Lincoln/Activities

 

Jerry Hansen said his same concerns apply to this item as the previous item.

 

Katharin Kelker moved to recommend Board approval to add a High School Stipend ECA Account at Lincoln/Activities. Shanna Henry seconded the motion. Voting in favor of the motion was Dale Getz, Katharin Kelker, Shanna Henry, Rachel Stagg, Kari Altenburg, and Stan Barr. Voting against the motion was Jerry Hansen. The motion carried.

 

Adjournment

 

There being no further business, the meeting was adjourned at 6:30 p.m.

 

 

 

 

K. Dale Getz, Chair

 

 

 

 

Sherrill Sullins, Recorder