BFR Committee - Feb. 11, 2008

[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 11, 2008

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 11, 2008. Chair Katharin Kelker called the meeting to order at 5:17 p.m. and led those assembled in the Pledge of Allegiance. Committee members present were: Katharin Kelker, Shanna Henry, Peter Grass, Joan Sleeth, Joel Guthals, Mary Jo Fox, Kari Altenburg, and Curt Prchal. Absent were members Don Stanaway and Dan Farmer. Also present was CFO Thomas Harper, Executive Director of Facility Services Rich Whitney, Skyview English teacher Rod Gottula, Trustee Peter Gesuale, and Jerry Hansen from the community.

 

Communication From the Public

 

No one wished to address the Committee at this time.

 

Phase 2 – Orchard Playground

 

Rich Whitney displayed a graphic of the Orchard playground to show the area of Phase 2 new development from west of the current school building to Hollowell Street. $542,000 of private donations has been received from the Sample family and Foundation for this project. Plans include three basketball courts, a nice play structure, a school ball field, and landscaping. There is an architectural problem with the roof drain on the addition to the school. Water pours from the roof onto the asphalt and sidewalk at the entry. There are two options to correct this problem: 1) remove third basketball court from plan and use savings to correct roof; 2) repair roof with $16K of District funds. Pursuing correction from the architecture firm does not seem to be a viable option at this point. This will be discussed at the COLT meeting and a recommendation will go forward to the Board.

 

Shanna Henry moved to recommend the Board award the contract for Phase 2 of the Orchard Playground project to Good Earth Works, Co., Inc. Mary Jo Fox seconded the motion.

 

Rich has a schedule of values they use to negotiate. They have selected proposals and Good Earth Works is the only company that responded to the proposal. The legislature passed a CMAR statute in year 2005 whereby the cost savings process is used rather than a bid process when there is not a lot of competition for a project. Few companies are able to complete such large playground projects. The contractor and architect worked together to clarify projects and reduce costs where possible. The original proposal was $554,134 and was reduced by approximately $45,360.

 

The motion carried unanimously.

 

Consent Agenda

 

Joel Guthals moved to recommend Board approval of the Consent Agenda item as follows:

1. Minutes of January 14, 2008

2. Addition of dual Credit Scholarship Trust Fund Account at Lincoln

Mary Jo Fox seconded the motion. The motion carried unanimously.

 

Budgeting For Results – Budget Forecast

 

Thomas reported that the February 1st spring count has finalized our FY2009 ANB for revenue purposes. The Elementary District ANB is 43 less than FY2008. The High School District ANB is 54 less than FY2008. Effective August 29, 2008 MAC funding disappears, but we will get paid through June, 2008. MAC funds currently support about $73K worth of FTE in the High School budget and $227K worth of FTE in the Elementary budget. Even if we pass the elementary levy, we will be $1.7M short in the Elementary General Fund.

 

Curt questioned our current low Indirect cost rate of 1% on grants, stating grants should be paying for infrastructure costs so they are not supported by the General Fund. Thomas advised that three years ago we raised Indirect cost rates to the maximum; however, they are cyclical due to the way they are calculated once costs are charged to them. Chair Kelker requested this Committee be advised of the current Indirect cost rates, the ones we contemplate charging next year, and what we would be losing if we raise those rates.

 

Structuring a Bond Issue

 

Chair Kelker announced the February 25, 2008 Board meeting will be a study session to discuss deferred maintenance for the purpose of providing guidance from the Board in determining what could and should happen in bond issues. Katharin presented a decision matrix of policy decision items that may be discussed:

1. Define “neighborhood school” (elementary only).

2. If students who are currently bused returned to their neighborhood schools, what would the effects be on central city schools?

3. Determine the standard for priority placement on deferred maintenance bond issue list.

4. Determine size of the deferred maintenance bond issue.

5. How big should high schools be?

 

D.A. Davidson may be asked to address this Committee at a future meeting regarding a bond issue.

 

Bills Paid – January, 2008 (summary sheet)

 

Peter Grass moved to recommend Board approval of the bills paid for January, 2008. Mary Jo Fox seconded the motion. The motion carried unanimously.

 

Financial Reports – January, 2008 (Unaudited)

 

The Committee reviewed the unaudited Financial Reports for January, 2008. Thomas noted there is still a deficit in the High School Building Fund since we have not yet received payment from the insurance company for the Skyview High claim. We are still working on the after school CARE Program and it should be operating in the black by the end of the year. Utilities are high due to the bad weather, but he does not believe we will need a budget amendment.

 

Health Insurance – Financials – December, 2007

 

The Committee reviewed the Health Insurance Financials for December, 2007. The Health Insurance Fund is doing well. Joel asked for the status on his request to have our health insurance reviewed by MTSBA. Thomas replied there is no active study on our health insurance plan. This is a complex issue and one that should be referred to the Insurance Committee. The last time we had a formal bid process we hired an independent insurance consultant to analyze our existing plan versus proposals from other health insurance providers; and, our existing plan was rated the best. A joint meeting with the Health Insurance Committee will be scheduled for March or April, 2008.

 

Comments

 

Thomas reported that all litigation is resolved except for MQEC/Columbia Falls.

 

Adjournment

 

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

 

 

 

 

Katharin Kelker, Chair

 

 

 

Sherrill Sullins, Recorder