Independent School District 196
Rosemount-Apple Valley-Eagan Public Schools
Educating our students to reach their full potential
Budget Advisory Council Minutes
6:30 p.m., June 11, 2014
District Office
Present: Budget Advisory Council members Kathy Cason, Colleen Dolan, Jason Elias, Karen Harrold, Chad LaBahn,
Bob Leuth, Kris Nelson and John Wollersheim; Coordinator of Finance Stella Johnson and Communications Director
Tony Taschner. Absent: Director of Finance and Operations, Jeff Solomon, Budget Advisory Council members Michael
Groneberg, and Gary Krueger. Guest: Chas McCready.
The meeting was called to order at 6:32 p.m. by co-chair Chad LaBahn.
Public Input. No one was present in the audience.
Welcome and Introductions. Chas McCready was introduced as the newest member of the Budget Advisory Council.
Mr. McCready also serves on the Legislative Advisory Council.
Review Agenda. The agenda and the March 12, 2014 minutes were approved.
Legislative Summary of 2014 Session. Mr. Taschner provided a copy of the 2014 Legislative Summary presented to the
School Board on June 9. He began by highlighting the district’s legislative activities and priorities this past session. Mr.
McCready shared that this year the Legislative Advisory Council focused on learning about the district’s space needs at
the elementary schools and the new vision for instructional technology. In addition they developed the district’s
legislative priorities for the 2014 session and began meeting with legislators regarding these priorities.
The three priorities were:
1) Greater local funding authority to provide additional school space, up-to-date learning technology and safety and
security improvements,
2) Fewer mandates and reporting requirements-increased flexibility in the use of compensatory revenue, fewer special
education reporting requirements and elimination of the requirement for certain information to be published in a legal
newspaper and
3) Transportation facility - authority to use local lease levy funds to lease a transportation hub facility.
The 2014 legislature approved an additional $54 million targeted for E-12 education to support the following programs:
 $25 per pupil increase to the General Education formula ($762,000 annually for District 196);
 Increase English Learner eligibility from 5 to 6 years (approximately $102,000 of additional revenue);
 Increased funding for Early Childhood Family Education and School Readiness programs ($202,000);
 Increased funding for early education scholarships;
 Increased lease levy authority for school space ($50 per pupil), and
 Free lunch for all reduced-priced eligible students.
The 2014 Legislature also approved the following education policy changes:
 Changes to reform and improve the instruction and achievement of English Learners;
 Safe and Supportive Minnesota Schools Act (anti-bullying law). and
 Health Insurance Transparency Act.
Our district, specifically our attorney Jill Coyle, worked with Senator Greg Clausen to suggest several amendments to the
anti-bullying law which narrowed the definition of bullying and reduced the amount and frequency of staff training
initially required. With the help of our lobby organization, Association of Metropolitan School Districts, we were
successful in having self-insured school districts, like ours, exempted from the requirement to get a proposal for group
health insurance coverage from the Public Employee Insurance Program.
District staff is already in the process of preparing for the 2015 session, which will be an important funding session for
schools. This summer and early fall, Superintendent Berenz plans to meet with each of the candidates for the House of
Representatives whose seats are up for election in November. The District will continue to stay engaged and to maintain
strong working relationships with the candidates to make sure they have a good understanding of our district and the
issues we face.
Preliminary Budget Review. Ms. Johnson shared with the council members that the district’s 2014-15 preliminary
budget was presented to the School Board on June 9 as new business. She informed the council that the preliminary
budget came very close to the district’s financial plan for 2014-2015. The preliminary budget is based on the assumptions
authorized by the School Board in late February 2014. General fund expenditures are projected to be $323,412,933 and
revenues are projected to be $318,351,190. The district plans to use $5 million in fund balance. The estimated ending
fund balance is $23.78 million or 7.35% of expenditures. Ms. Johnson shared with the council member that the projected
June 20, 2015 fund balance of $23.78 million includes a favorable budget performance of $4.0 million from the 2013-14
school year. School Board policy requires that the district maintain a minimum fund balance of 5 percent of expenditure.
Ms. Johnson shared with the council members that non-operating funds are specific to their respective functions and are
not directly tied to the operation of providing educational services in our district. She informed the council members that
for the 2014-15 school year, the District’s building construction fund includes an Alternative Facility account and Dakota
Valley Learning Center Account. She provided a brief overview of the preliminary budgets for the two accounts to the
council. She also remind the council that the district expects to spend down the fund balance in the Dakota Valley
Learning Center building account during the first half of the 2014-15 school year; the building is scheduled to open by
January of 2015.
Ms. Johnson also shared with the council that the Debt Service fund is used to account for the activities related to the
district’s bonded debt obligations. It is very similar to a mortgage account. Ms., Johnson explained that the Debt Service
fund is intended to break-even over the course of time and the Building Construction fund is intended to deplete to a zero
balance over time. Ms. Johnson provided a draft copy of the 2014-15 preliminary budget Summary to the council
members.
OPEB Trust Performance. Ms. Johnson reviewed the OPEB Trust performance for the last several months and informed
the council that the value of the trust was just over $48 million as of April 30, 2014.
Misc. As a follow-up to the GASB standards discussed at the March meeting, BAC members were given a copy of an
article from School Business Affairs magazine entitle, Pension Plan Accounting and Reporting.
Future Meetings. The BAC will continue to meet the second Wednesday of the month in September, November,
January, March and June.
September 10, 2014
November 12, 2014
January 14, 2015
March11, 2015
June 10, 2015
Adjournment. The meeting adjourned at 7:35 p.m.