BFR Committee - February 05, 2007

[Guest sullinss]

Proceedings of the Budgeting For Results Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

February 05, 2007

 

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, February 05, 2007. 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, Dan Farmer, Peter Grass, Stan Barr, Duane Smith, Kari Altenburg, and Katharin Kelker. Absent were members Curt Prchal and Jerome Chvilicek. Committee member Rachel Stagg has resigned. Also present was CFO Thomas Harper, Director of Facilities Rich Whitney, and Ed Graff, Energy Education, Inc.

 

Communication From the Public

 

There were no public comments.

 

Energy Conservation Proposal and Request for RFP

 

Ed Graff, with Energy Education, Inc., addressed the Committee with a marketing proposal relative to energy conservation. Their voluntary program is one of cultural change utilizing people, not mechanical changes, to reduce energy consumption by 15-30%. His proposal stresses: 1) no capital outlay, 2) no new budgeted funds, 3) contractual guarantee, 4) no comfort sacrificed, 5) limited investment-perpetual savings, and 6) $4,284,810 total net savings in the next 7 years to our District’s budget that would otherwise be paid to utility companies.

 

Rich Whitney stated our District spends $2.8M per year on energy. However, our District’s consumption per square foot is better than most school districts. The State of Montana also has performance energy contracting available. One contractor is meeting this week with our District’s Energy Innovation Committee. There would be few responses to an RFP for the type of work Energy Education, Inc. proposes. Rich said Energy Education, Inc.’s objectives would be met by taking full control over who gets heat and when by: 1) turning energy off during non-school hours, and 2) letting temperatures float.

 

Committee discussion was held on the amount of community use of buildings during off-school hours; the need to thoroughly check references of any company with energy savings proposals at different user levels; and, the ability of people to change their behavior regarding voluntary energy savings.

 

Katharin Kelker moved to have several Committee members do additional diligence with a further search of references with this company to the level of people affected by the program and report back to this Committee by the next meeting. Dan Farmer seconded the motion. The motion carried unanimously.

 

Committee Chair K. Dale Getz appointed volunteers Katharin Kelker, Shanna Henry, Rich Whitney, and himself to check references and report back to the Committee at the next meeting.

 

Consent Agenda

 

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

1. Minutes of January 08, 2007

Dan Farmer seconded the motion. The motion carried unanimously.

 

Financial reports – January, 2007 (Unaudited)

 

The Committee reviewed the unaudited Financial Reports for January, 2007.

 

Stan Barr left the meeting at 6:42 p.m.

 

Bills Paid – January, 2007 (summary sheet)

 

Katharin Kelker moved to recommend the Board approve the bills paid as presented for January, 2007. Peter Grass seconded the motion. The motion carried unanimously.

 

Health Insurance – Financials – December, 2006

 

Claims were higher in December, possibly due to the fact that many people have met their deductible by this time of the year. The fund balance is $1.4M, and the Charter recommendation is for a $2.2M fund balance.

 

Budgeting For Results

 

Thomas reviewed mill levy information approved by the Board at their January 31, 2007 meeting. With passage of the elementary mill levy, the elementary budget would maintain neighborhood schools with the opening of Beartooth Elementary; and, maintain a 5% reserve level. With passage of the high school mill levy, the high school budget would restore the reserve levels to 5% from a 2.53% level; would begin to address textbook replacement; and, provide expansion at the Career Center for 250 more student slots. Increased ANB combined with last year’s actions to close Crossroads High School have helped to improve our current budget year.

 

A future topic of discussion for this Committee will be the level of compensated absences, and the rate of pay for years worked as part of their severance package for retirees. This is recognized in the audited financials and we are now budgeting for current year expected retirements.

 

Adjournment

 

There being no further business, the meeting was adjourned at 7:15 p.m.

 

 

 

 

 

K. Dale Getz, Chair

 

 

 

 

Sherrill Sullins, Recorder