Windham Southeast School District
Finance Committee Meeting – Thursday February 11, 2021
6:00pm Via Zoom Meeting
Members: Shaun Murphy – Chairperson, Liz Adams, Jaci Reynolds, David Schoales
Join Zoom Meeting
https://us02web.zoom.us/j/83432808146?pwd=Smg3R015TW9zN3FnVGNRbk9NTE9qQT09
Meeting ID: 834 3280 8146
Passcode: s4QFH0
Agenda
1. Call to Order
2. Approval of Minutes – December 2, 2020 and January 12, 2021
3. Preparation for FY22 WSESD Budget 2.23.21 Information Hearing
4. Academy School Addition project financing method and project timeline
5. FY21 Fiscal Year to Date Statement
6. Approve Warrants and Payrolls
7. Other
Cc BN.SM 2.3.21
Finance Committee Meeting – Thursday February 11, 2021
6:00pm Via Zoom Meeting
Members: Shaun Murphy – Chairperson, Liz Adams, Jaci Reynolds, David Schoales
Join Zoom Meeting
https://us02web.zoom.us/j/83432808146?pwd=Smg3R015TW9zN3FnVGNRbk9NTE9qQT09
Meeting ID: 834 3280 8146
Passcode: s4QFH0
Agenda
1. Call to Order
2. Approval of Minutes – December 2, 2020 and January 12, 2021
3. Preparation for FY22 WSESD Budget 2.23.21 Information Hearing
4. Academy School Addition project financing method and project timeline
5. FY21 Fiscal Year to Date Statement
6. Approve Warrants and Payrolls
7. Other
….
Note: These proposed minutes should be considered preliminary until they are approved by the board at a future meeting.
WINDHAM SOUTHEAST SCHOOL DISTRICT (WSESD) FINANCE COMMITTEE
WEDNESDAY, DECEMBER 2, 2020
REGULAR MEETING – 5:00PM
REMOTE LOCATION
DRAFT MINUTES
WSESD Finance Committee Members Present: Shaun Murphy (SM), Chair; Liz Adams (LA); Jaci Reynolds (JR)
WSESU Administrators Present: Andrew Skarzynski (Superintendent), Frank Rucker (Finance Director).
Media Present: none
Others Present: Wendy M. Levy (Board Recorder)
I. CALL TO ORDER
Chair SM called the meeting to order at 5:06pm.
II. APPROVAL OF MINUTES — NOVEMBER 4, 2020
MOTION BY LA TO APPROVE THE MINUTES OF NOVEMBER 4, 2020. JR SECONDED. MOTION CARRIED 3-0.
No amendments or discussion.
III. FY22 WSESD BUDGET PLANNING DISCUSSION
Frank Rucker shared documents related to the FY22 WSESD budget planning and led a discussion on them.
Frank referenced one of the documents, a recent memorandum from the Vermont Tax Commissioner, Commissioner of Taxes Releases FY2022 Education Yield Letter, during a discussion about how Vermont establishes school funding. Frank noted this memorandum is available on the District’s website, in the “Finance Committee” section. As Frank explained, this information helps WSESD begin creating the FY22 school budget. He reviewed the projected four-year property tax figures, and noted he will review this information again at the December 16 Board meeting.
Frank shared a financial document that makes the memorandum relevant: it shows how the budget, expenditures, spending per student, yield, and tax rates are set and relate to one another. He explained that if the yield goes up, it’s good news for school boards because taxes go down. He added that it’s only one number out of many numbers that affect the District’s budget and the tax rate.
Frank shared some bad news: the yield is going down. Frank said he has never seen this before, and the letter explains why. He said the Legislature has frozen the Student Count (not to be mistaken for the Equalized Student Count) and lowered the yield.
Because the yield is down, Frank said, it could result in a 9-cent tax increase in the homestead property rate for FY22.
There are two main reasons for the increase, said Frank: COVID has caused non-property tax revenues to go down, and the projected cost of teachers’ retirement to the Education Fund is going way up. Frank said the latter is a particular surprise to him.
Frank cautioned the Finance Committee to remember that this information from the tax commissioner is only a forecast, and not a “done deal.” Many states are in the same situation, he said, and Congress may help. Still, Frank noted, the District cannot ignore this. He has shared this information with Superintendent Andy Skarzynski and the administrative team, and they will take it into account when drafting the budget.
LA pointed out that last year, the Legislature clearly stated they don’t want a big tax increase, and they will spread out the increase over about five years, instead of a steep increase in one year. LA committed to contacting Senator Becca Balint, who will be the new Senate Pro Tem, about this concern, and Becca will listen. LA noted that this coming year, southern Vermont has many more representatives on the Committee of Committees than before—often, they are all from the Burlington area—so this could help the District. LA said that Rep. Baruth is not the Chair of the Education Committee this year, which benefits the District. “I don’t think this letter will happen,” said LA.
Frank supported LA’s committment to contact Legislators, and recommended others do so.
IV. CAPITAL PLAN PROJECT REVIEW
Frank shared and reviewed the summary of the five-year Capital Plan, and noted it is a work-in-progress, and it covers all schools in the District. Most of the discussion was on the Academy School renovations/additions project. Highlights included:
• Frank shared a document from Cory Frehsee of Stevens & Associates, and he noted it appears on the District’s website, in the “Finance Committee” section. Frank said he reviewed the document with Academy School Principal Kelly Dias.
• Frank discussed the project’s schedule; the goal is to occupy the new spaces in January, 2022.
• Frank noted the new spaces serve Title I/Special Education students and the entire school population.
• Frank reminded committee members that the Board was about to begin the bid/bond process for this project, and then COVID arrived.
• Frank reviewed the project’s energy efficiency plans, and announced that Nadav Malin of Building Green is hosting workshops on the topic, and Board members are invited to attend.
• Frank reminded committee members that the Board needs to finalize bidding, and award the contract, no later than June, and they will need to pre-qualify contractors.
• Frank then shared details on the process, including when and how voters can participate, and different financing options, including using capital reserves.
• SM asked about internal financing versus borrowing to fund this project. A discussion ensued on the options, their implications, and the current interest rates.
• A discussion ensued on when the bond vote, if it were to occur, would occur, and how this affects and plays a part in the bidding process.
• Frank said the Board will have to make some decisions: how to fund this project, and is Nadav’s sustainable design work with Stevens & Associates acceptable.
SM noted the 9-cent increase is “the biggest we’ve ever seen.” He asked how it will direct Frank and the administration’s budget work, pointing out that it almost demands service-level-funding. SM asserted the Board does not want reductions. Frank replied: the District either cuts spending, or gets more students—that’s how to keep taxes down. Frank noted he and the Central Office team are working on this, and it’s a challenge.
LA cautioned against unleashing a panic on the community or scaring the staff. She wants to focus attention on the Legislature, which can still work on mitigating this. She noted the Legislature doesn’t want to slash the budget for school staffing because it diminishes equity, so they may back-fill school funding. SM agreed, and said the staff knows the Board does not want to cut staff. Frank also agreed, and noted he and Andy have discussed this, especially how it affects getting more students back into the building to address learning-loss.
A discussion ensued on whether the Finance Committee discussions should happen in the committee’s meeting, or with the full Board in their meetings. SM advocated for keeping the discussions in committees because meetings are already far too long, and Board members are welcome to attend committee meetings. JR agreed, and added small-group discussions are more helpful to her as a new Board member. LA agreed, especially with the concern over the length of Board meetings. SM recognized Board Recorder Wendy M. Levy, who agreed for labor reasons. She noted that her job requires a high level of focus to draft the high-quality minutes the Board/Finance Committee have come to expect, and sustaining that for many hours is very difficult.
MOTION BY LA TO ADJOURN AT 5:54PM. JR SECONDED. MOTION CARRIED 3-0.
Respectfully submitted by Wendy M. Levy from minutes taken by Wendy M. Levy.
This represents my understanding of the above dated meeting. If you have any changes, please submit them at the next Finance Committee meeting.
….
Note: These proposed minutes should be considered preliminary until they are approved by the board at a future meeting.
WINDHAM SOUTHEAST SCHOOL DISTRICT (WSESD) FINANCE COMMITTEE
TUESDAY, JANUARY 12, 2021
REGULAR MEETING – 5:30PM
REMOTE LOCATION
DRAFT MINUTES
WSESD Finance Committee Members Present: Shaun Murphy (SM), Chair; Jaci Reynolds (JR)
WSESU Administrators Present: Andrew Skarzynski (Superintendent), Frank Rucker (Finance Director).
Media Present: none
Others Present: Wendy M. Levy (Board Recorder)
I. CALL TO ORDER
Chair SM called the meeting to order at 5:33pm.
II. APPROVAL OF MINUTES — DECEMBER 2, 2020
MOTION BY JR TO APPROVE THE MINUTES OF DECEMBER 2, 2020. SM SECONDED. MOTION CARRIED 2-0.
No amendments or discussion.
III. FY22 WSESD BUDGET PLANNING DISCUSSION
Finance Director Frank Rucker led the discussion. Highlights included:
• A reminder of the urgency of making decisions about the Academy School project: it needs the WSESD Board’s support, or they have to put the project on hold.
• A review of the document, “School District Budget Development Timeline FY2022 Draft.”
• A review of the Annual Report using the previous year’s report.
• A review of the previous year’s Annual Meeting warning.
• In the budget document, an explanation of “Expenditures By Function,” and what “function” means in this context.
• A review of the budget’s overview section and the revenue section (which shows how the District pays for the budget).
• The location on the website where one can find the entire budget document.
• A review of the document, “By School Site Expense Budget.”
• A review of the Capital Plan Overview, a one-page summary.
• A review of the Enrollment Report, with data starting from FY20.
Superintendent Andy Skarzynski and Frank discussed options for when to put the budget vote on the Board’s agenda.
SM asked about the student spending cap, and whether other districts are struggling with it. Frank shared a spreadsheet that shows education spending per pupil. He discussed the District’s exemption from this cap, as per the Legislature.
Andy asked if dissolving the merger would negate the exemption. Frank confirmed this would present an immediate problem for District towns other than Brattleboro, and why.
SM pointed out that even if voters opted to dissolve the District, it would not take effect immediately.
Frank noted that dissolving the merger would present complications, and possibly higher costs, for operations, especially with contract negotiations with vendors and employees. He asserted it’s not good to destabilize public school for any indeterminate time period, and the Board should issue an opinion to clarify their position.
IV. CAPITAL PLAN PROJECT REVIEW
Frank reminded committee members the Academy School project is part of the Capital Plan.
Frank reviewed the one-page summary of the plan, and the two ways in which it’s organized: by infrastructure improvements, and by school site. He noted that if the merger is dissolved, the Finance Committee would have to review and change this section, and consider who has access to what funding.
Frank reviewed the Fund Balance/Capital Reserve, and plans for using it during this fiscal year. He reminded committee members of the importance of keeping money in Capital Reserves, and of adding to it yearly to cover infrastructure needs.
Frank discussed the Academy School project’s energy efficiency aspects, and the recent workshop he attended about the topic.
Frank asserted the Academy School project is the most important project because of how it affects students’ learning. He urged the Board to decide how to pay for it—through a bond, or from internal funding—and he provided details on a variety of options. This will affect how and whether Stevens & Associates will be able to move forward on this project, or if the project is put on hold. He reminded committee members that if construction is to begin in June, the Board has to decide very soon.
Otherwise, the students at Academy School will be stuck in the current structures for another year, and Principal Kelly Dias will need time to figure out how else she will accommodate her students.
SM reviewed the decisions about the Academy School project that the Board must make, and when they have to make them.
Andy noted that it’s the District’s intention to have students in school five days per week starting in the next school year. Frank said it’s important Academy School has building capacity by then.
Frank shared a document regarding the draft AIA (American Institute of Architects) agreement between the District and the architect for the project. He reviewed the costs, what the agreement includes, and how energy efficiency goals are incorporated into these plans. He noted a representative from Stevens & Associates will be at the next Board meeting.
A discussion ensued on the next steps in this process, the project’s cost, decisions the Board must make, and voting on the bond. Frank and SM participated. SM noted that even if the project does not begin soon, the next step is valuable because it gives the Board a set of plans.
SM and JR agreed that the urgency of making this decision is clear.
Frank pointed out the Board should make their decision about this project before they vote on the budget so he can, if necessary, include debt service in the budget. Frank added he will explore getting a
local bank loan.
SM requested more information on the implications of the different funding options.
VI. WHETSTONE VILLAGE ASSOCIATION FEE
Frank shared a document detailing the history of the Whetstone Village and how it relates to the District. SM and Frank discussed the history of the parcels, including their use as a building site for the WRCC’s building trades programs, the resulting fees the District is paying on these parcels, and what to do about it. SM surmised the best option is for the village’s association to relieve the District from paying the association fee, and he’s confident they can work this out amicably.
V. APPROVE WARRANTS AND PAYROLLS
SM pointed out that a few of the warrants were for ventilation improvements, and this was paid for by CARES Act funding. He thanked Frank for his work securing this funding.
Frank said this was a challenge, but a great deal of help came from staff and community partners. He noted this process enabled staff to identify serious ventilation deficiencies, and resolve them. A new round of funding will help staff continue to assess and address the next layer of ventilation projects.
VII. OTHER
– Citizen Review Budget Panel email
JR asked about the subject. Frank stated the proposed panel is totally redundant to the Finance Committee, and he pointed out anyone can join the Finance Committee or attend its meetings. He added having a panel like this complicates the work that he and the Finance Committee does. If this goes forward, he said, roles need to be clearly defined. He noted that if the voters dissolve the merger, this subject might be irrelevant.
– Set the regular monthly meeting date/time
SM said the committee could at least set the February meeting date if they are unable to establish the regular schedule. Frank pointed out the importance of the February meeting in preparing for the budget.
SM set a tentative meeting date, pending absent members’ availability: Tuesday, February 9, at 5:30pm.
SM will collect responses via email.
MOTION BY JR TO ADJOURN AT 7:01PM. SM SECONDED. MOTION CARRIED 2-0.
Respectfully submitted by Wendy M. Levy from minutes taken by Wendy M. Levy.
This represents my understanding of the above dated meeting. If you have any changes, please submit them at the next Finance Committee meeting.
