IndependentSchoolDistrict196
Rosemount‐AppleValley‐EaganPublicSchools
Educatingourstudentstoreachtheirfullpotential
BudgetAdvisoryCouncilMinutes
6:30p.m.,January14,2015
DistrictOffice
Present:BudgetAdvisoryCouncilmembers,ColleenDolan,JasonElias,MichaelGroneberg,GaryKrueger,Chad
LaBahn,BobLeuth,JeffLittle,ChasMcCready,JohnWollersheimandKathyCason;DirectorofFinanceand
OperationsJeffSolomonandCoordinatorofFinance,StellaJohnson.Absent:BudgetAdvisoryCouncilmembers,
KarenHarroldandKrisNelson.Guest:Desiree’Fleming,FinancialSystemsSupervisor.
Co‐ChairColleenDolancalledthemeetingtoorderat6:30p.m.
PublicInput
Noonewaspresentintheaudience.
ReviewAgenda
TheagendawasreviewedandtheOctober29,2014minuteswereapproved.
FacilitiesandEquipmentTaskForceFocusGroupsUpdate
Onbehalfofthesuperintendent,Mr.SolomonthankedtheBudgetAdvisoryCouncil,LegislativeAdvisoryCouncil
andCommunityEducationAdvisoryCouncilmemberswhoparticipatedasfacilitatorsorrecordersforthefocus
groupsheldinearlyDecember.Hereportedthattheturnoutwasgoodatthefocusgroups.Thewrittenfeedback
fromthefocusgroupswastranscribedandreviewedbytheTaskForce.Therewereanumberofquestions
submittedbyparticipantsandthosearebeingrespondedtobyTaskForcemembers.
DuringJanuaryandearlyFebruarytheTaskForces’preliminaryrecommendationisbeingpresentedtoallstaff
andsitecouncilsateachbuilding.AcopyofthePowerPointpresentationwassharedwiththeBAC.TheTaskForce
sharedthesamepresentationwiththeSchoolBoardatitsJanuary12meeting.Oneofthedifferencesinthis
presentationistheitemsrequestedbutnotincludedintherecommendationwereidentified.Theseitemsdidnot
meetthestrategiesidentified.TheTaskForcewillmeetinFebruarytofinalizearecommendationafterreviewing
feedbackfromemployeesandsitecouncils.AtthefirstSchoolBoardmeetinginMarchtheTaskForceplansto
presentaformalrecommendation.TheTaskForceisfocusingontheneedsofthedistrictatthistimeratherthan
thecost.Iftheboardacceptstherecommendationthenextstep,mostlikely,istoconductacommunityscientific
surveytotesttheneed,solutionsandthecost.Basedontheresultsofthesurvey,therecommendationmightbe
modifiedandtheboardmaysettleonatargetedbondinglevelthattheythinkisacceptabletothecommunityand
thentakeactiontorecommendanelectioninthefall.
TheBACdiscussedsomeofthecommentsandconcernsbroughtupduringthefocusgroups.Therewasquiteabit
ofdiscussionamongsttheBACregardingthetechnologypartoftherecommendation.Forthemostpartthosein
thefocusgroupssupportedtherecommendationsbutmanywantedmoreinformation.
FinancialPlanningReview
AttheOctober2014meetingtheBACbegandiscussingtheassumptionsforthefinancialplan.Thoseassumptions,
alongwithhistoricaldata,wereusedtobeginpreparingtheupdatedfinancialplan.TheSchoolBoardwouldlike
feedbackfromtheBACregardingthebaseplanassumptionsandthreeorfourscenariosforconsideration.Thetwo
activevariablesinthefinancialplanmodelarewhatleveloffundingshouldweanticipatefromtheStateandour
performance‐to‐budget.Mr.Solomonbeganbyreviewingthebaseplanassumptionsandexpendituretrending
graphindicatinghowthedistrictisprojectedtoperformthisyear.Atthispointitindicatesperforming$6‐$8
millionbetterthanbudgetwhichisinlinewithpastperformance.
Mr.SolomonreviewedthebaseplanassumptionstheBACdiscussedinNovember.
Mr.Solomonpresentedsixbasicscenariosforfuturefinancialplanning:
Basicformulaincreaseof1%
$6.5millionestimatedsavingsfrom2014‐15budget
Budgetadjustmentsof$15.75millionin2016‐17and$12millionin2017‐18
Basicformulaincreaseof1.5%
$6.5millionestimatedsavingsfrom2014‐15budget
Budgetadjustmentsof$13.5millionin2016‐17,and$12millionin2017‐18
Basicformulaincreaseof2%
$6.5millionestimatedsavingsfrom2014‐15budget
Budgetadjustmentsof$11.25millionin2016‐17,and$11.5millionin2017‐18
Basicformulaincreaseof1%
$7.5millionestimatedsavingsfrom2014‐15budget
Budgetadjustmentsof$12.75millionin2016‐17and$14millionin2017‐18
Basicformulaincreaseof1.5%
$7.5millionestimatedsavingsfrom2014‐15budget
Budgetadjustmentsof$10.5millionin2016‐17,and$13.75millionin2017‐18
Basicformulaincreaseof2%
$7.5millionestimatedsavingsfrom2014‐15budget
Budgetadjustmentsof$8.1millionin2016‐17,and$13.75millionin2017‐18
TheBACdiscussedthescenariosandafterquestionswereansweredbyMr.Solomon,membersfelttheywould
suggestpresentingtotheSchoolBoardthescenariosassuminga$6.5millionsavingstobudget.
TheBACmembersspentquiteabitoftimediscussingtheperceptionofbeingbetterthanbudget.Mr.Solomon
explainedthatalthoughthedistricthasperformedbettertobudgetwehavebeendeficitspendingforsixofthelast
tenyears.Weareactuallyusingfundbalance.Whenweperformbettertobudgetweuselessfundbalance.
Memberscautionedthatthedistrictshouldmakesuretheuseoffundbalanceisclearlycommunicated.
ProposedNewBudgetFormat
StellaJohnsonsharedahandoutdescribingtheproposednewbudgetformatthedistricthopestousebeginning
withthe2015‐16preliminarybudget.Thisnewbudgetformatwillmeetnationalstandards,improve
communicatingthebudget’saccuracy,providetransparencyandbuildconfidenceinourstakeholdersinthework
ofthedistrict.Thebudgetdocumentwillincludemoredrill‐downcapabilitiesandeachschoolwillhaveitsown
report.Amock‐upofthebudgetwassharedwiththeBACandanelectroniccopywillbesenttomembersfor
furtherreviewandcomment.
FinanceDocuments
2014‐15FinalBudget‐TheFinalBudgetwasapprovedbytheSchoolBoardatitsJanuary12,2015meeting.Acopy
ofthebudgetwasdistributedtoBACmembers.
Payable2015FinalLevyCertification‐TheSchoolBoardapprovedthemaximumlevycertificationof$78,560,885at
itsDecember8,2014meeting.
OPEB‐OtherPost‐EmploymentBenefits
TheBudgetAdvisoryCouncilwasprovidedwithanupdateofthefund.AsofNovember30,2014thetotalaccount
valuewasslightlyover$49.8million,whichiscurrentlymorethan100%oftheestimatedactuarialliabilityfor
futureretireebenefits.Asaresult,andinaccordancewithSchoolBoardapprovedguidelines,Districtstaff
estimatesthatapproximately$1.4millionofthisexcessfundingwillbeavailablefortransfertotheGeneralFund.
NextMeeting
ThenextBACmeetingisscheduledforMarch11,2015at6:30p.m.
Adjournment.Themeetingadjournedat8:00p.m.