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>>> GOOD EVENING, FORTUNE EVERYONE, I BELIEVE WE'RE READY THE GET START.
TODAY IS MAY 22. IT IS NOW 5:35 P.M. WE ARE AT LOCATED AT 422 SOUTH CENTER AVENUE. THIS MEETING HAS BEEN POSTED IN ACCORDANCE TO THE TEXAS OPEN MEETINGS ACT. I WILL NOW CALL ROLL OR EVERYBODY CAN IDENTIFY
THEMSELVES. >> WOOD SON. >> DARREL CLEWIS.
>> MARION HAMILTON. >> [INDISCERNIBLE] SONJA RALSTON.
>> CAN A TREES PEREIRA. >> GOOD EVENING, THANK YOU FOR BEING HERE.
[6. Discussion of current and 2023-24 Budget Process - Todd Garrison, Presenter]
BUDGET COMMITTEE MEETING, I WILL SAY THAT IT IS -- WE'RE VERY EARLY IN THE STAGES OF DEVELOPING A BUDGET, SO WHAT I'M PREPARED FOR YOU IS A VERY, VERY EARLY ESTIMATE THAT IS BASED ON PROJECTIONS THAT ARE BASED ON ESTIMATES AND WE'RE WAITING ON SEVERAL OTHER THINGS SO I WILL CLARIFY THAT AS I GO THROUGH. AS ALWAYS WHEN WE HAVE A BUDGET COMMITTEE MEETING I ALWAYS START WITH OUR FIRST SLIDE IS ALL OUR BOARD ROLES JUST TO REITERATE WHAT THOSE ROLES ARE.THE MAIN THING IS THAT WE HAVE A MEETING SUCH AS THIS. WE HAVE THINGS ON THE CALENDAR WHERE WE RELEASE QUARTERLY TO GO OVER THE BUDGET CYCLE AND PUT THE BUDGET TOGETHER.
WE LOOK AT THE BUDGET PSALMSES THAT ARE ON THERE, HOW THE BUDGET BUILT.
HOLD MEETINGS NATIONAL ORIGINS IN CONCHS WITH THE LAW AND WE MONITOR THAT THROUGH THE MONTHLY BOARD MEETINGS, YOU GET A REPORT EVERY MONTH AND WE HIRE AN AUDITOR TO APPROVE OUR FINANCIALS AND MAKE CERTAIN THAT WE'RE IN COMPLIANCE. SO WITH THAT SAID AISLE GOING TO START WITH THE REVIEW OF WHERE WE ARE CURRENTLY IN OUR CURRENT 22/23 BEEN.
THE SLIDE THAT'S UP HERE IS IN YOUR PACKET, THIS IS WHERE WE'RE BEEN WISE THROUGH THE END OF APRIL. AS YOU CAN SEE THERE THE TOP PORTION AS YOU LOOK AT THOSE IT SHOWS OUR THE REVENUE PIECE AND THAT'S ESTIMATED TO BE OVER 73 MILLION.
TODAY WE'VE COLLECT 63.5 MILLION AND WE HAVE ABOUT NINE AND A HALF MILLION OUTSTANDING.
THE MAJORITY OF THAT IS GOING TO COME FROM THE STATE, AND I ACTUALLY REVIEWED THAT, THE STATUTE ALLOWS US TO GO SEE WHAT'S IN THE BOOKS, SOISM I FEEL GOOD ABOUT THOSE.
OUR INVESTMENTS ARE DOING WELL, WE'RE EARNING GOOD DOCTOR AND WE HAVE SEVERAL MONTHS TO GO AND WOVE ALREADY COLLECTED LOCAL REVIEW KNEW AND THAT WILL CONTINUE TO GO UP.
STEPFATHERS OUR EXPENDITURE PIECES THEY ARE SET TO BE OVER 77 MILLION AND THEN YOU CAN SEE THAT WE ARE AT A DEFICIT OF 4.4 MILLION. THAT 4.4 MILLIONIVELY REMIND YOU WE DID A BEEN AMENDMENT A COUPLE MONTHS AGO, BUT THE REVENUE WAS ADJUSTED DOWN BY 4 MILLION-DOLLAR BASED ON OUR ATTENDANCE RATE AND OUR ENROLLMENT.
BUT OUR ENROLLMENT IS LOWER THAN WE PROJECTED SO THAT'S THE BIGGEST PIECE BUT THE 400,000 AND OTHER BUDGET AMENDMENTS THAT WE HAVE AGREED TO THAT WE TAKE OUT OF FUND BALANCE THE PAY FOR.
IVELY MOVE INTO THE NEXT SLIDE WHEN WE TALK ABOUT OUR BUDGET ASSUMPTIONS AND WE'LL GIVE WHY YOU HAVE YOU MORE DETAIL ON THESE, SO OUR PROJECTED ENROLLMENT, WE WERE HELPING THAT WE WOULD GET BACK THE PRO-COVID LEVELS AND BE OFTEN 7100 AND WE'RE SITTING AT SICK 800 AND THE REFIND ADA WE TAKE INTO ACCOUNT WE PREDICTED THAT IT WOULD BE OVER 94 PERCENT, WE'RE HOVERING AROUND 92 PERCENT SO THAT BRINGS OUR REFINED ADA DOWN TO 6250, SO THE DIFFERENCE BETWEEN THAT 685 WHICH IS WHAT WE USE TO DRIVE OUR BUDGET FOR REFINED ADA WE'RE SITTING AT 6250 AND THE MILLIONS IS 4 MILLION-DOLLAR IN REVENUE. TEXAS IS ONE OF EIGHT STATES THAT IS STALE BASED ON ATTENDANCE BUT THOSE ARE TWO BIG DRIVING FACTORS IN OUR BUDGET
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AND WITH THOSE BEING LOWER THAT'S THE REASON FOR THE REDUCTION? OUR STATE AID. THE HUNDRED PERCENT TAX COLLECTION RATE AGAIN WE'RE DOING WELL WITH THAT, JUST PUT ON THERE AS REMINDERS, AND AGAIN IF YOU HAVE QUESTIONS I'M GLAD TO STOP AND ANSWER QUESTIONS BUT SOME OF THIS ARE THINGS WE ALREADY KNOW ARE STANDARD, WE.COM ADOPTED A TAX RATE OF 94 CREDENTIALS WHICH IS TO PAY OUR BONDS FOR A COMBINED RATE OF 1.378. THE OTHER BIG FACTORS IN OUR BUDGET COME FROM THE CENTRAL APPRAISAL DISTRICT. THE FIRST NUMBER THERE, THAT IS THE VALUE OF THE PROPERTY THAT WAS CERTIFIED IN JULY OF LAST YEAR, JULY 25 AS A MATTER OF FACT IS WHEN WE RECEIVED THAT NUMBER AND THEN AT THE TIME YOU SEE THE ASTERISK THERE, WE DON'T GET THAT UNTIL JANUARY BUT THOSE ARE THE NUMBERS THAT THESE IT'S THESE ARE THE BUDGET ALL OPTIONS THAT WE BUILD OUR BUDGET ON AND WE WERE HEAVY IN OUR REVENUE SIDE. SO MOVING FROM THAT INTO ASSUMPTIONS FOR 23/24 SOME OF THE RECOMMENDATIONS THAT I WOULD MAKE IS THAT WE MOVE THAT DOWN AND ACTUALLY PROJECT OUR ENROLLMENT TO BE AT SICK 6800 AND WE HAD TO DAYBREAK OUR REVENUE MID YEAR SO THIS MAKES IT PRO-PRO-ACTIVE AND REALIST YOU BE IN PLANNING.92 PERCENT ATTENDANCE RATE SO ONE OF THE THINGS I WOULD LIKE THE SAY RASHING THE TWO NUMBERS I THINK THEY'RE MORE REALISTIC AND IT'S BEST TO BUDGET OFF THE NUMBERS BUT THE QUESTION BECOMES WHAT IF WE PICK UP 200 KIDS OR GET TO 7100 AND WHAT IF OUR ATTENDANCE RATE DOES APPROVE? WE IT MOON WE'RE GOING TO GET MORE MONEY SO THAT WON'T BE A BAD THING TO SEE THOSE GO UP AND WE CAN REALIZE THAT REEVE KNEW BUT THAT HUTS PUTS IN A BETTER PLANNING POSITION.
VERY IMPORTANT TO POINT OUT THAT IT IS EXTREMELY EARLY TO BE TALKING ABOUT OUR TAX RATE BUT I WANT TO TOUCH UNEASES. WE HAVE A TEMPLATE THAT WE PUT OUR DATA IN AND THESE ARE THE TAX RATES THAT IT SHOOT OUT TO US, IT'S JUST OVER 86-CENTS. WE KNOW THAT IT'S GOING TO BE LESS AND THEY'RE GOING TO CONTINUE TO COMPRESS THE TAX RATE.
THAT RATE IS CLOSER TO 72-CENTS BECAUSE WE PICK UP ABOUT 13 PENNIES IN THE FORM OF TRE THAT YOU PASSED IN PREVIOUS YEARS SO AGAIN ASTERISK THERE, COMPLETELY PRELIMINARY.
IT'S IMPORTANT THAT I REITERATE THAT NUMBER WILL COME FROM TEA ON AUGUST 5:00.
NOW, ON YOUR INTEREST AND SIRENNING RATE WE HAVE CONTROL OVER THAT THAT DRIVES THE PAYMENT OF OUR BONDS AND OUTSTANDING DEBT W. THE INCREASE IN VALUES THERE OUR APPRAISAL VALUE IS JUST UNDER SIX ABILITY SO ANOTHER BIG INCREASE FROM DALLAS COUNTY.
NOW, THAT'S OUR PRELIMINARY NUMBER. WE GET A POLICEMEN NUMBER IN APRIL AND GET A CERTIFIED NUMBER IN JULY SO I'LL EXPECT THAT TO GO DOWN AND I'LL TALK ABOUT THAT IN A FUTURE SLIDE BUT YOUR INTEREST AND SINKING RATE YOU'RE GOING TO HAVE OPTIONS WITH A DISTINCTION OF PAYING DOWN DEBT OR REDUCING IT THAT A LITTLE BIT.
IVELY TAKE THE TIME TO SAY I WOULD CAUTION YOU ABOUT DECREASING YOUR INTEREST IN SINKING RATE SIGNIFICANTLY BECAUSE THE MORE YOU DECREASE THAT WHEN YOU GET READY TO RUN A BOND ELECTION IT'S A LOT HARDER TO PASS THAT SO I THINK IT NEEDS TO BE A COMBINATION OF HOW MUCH MONEY IS BEING RAISED AND MAKING CERTAIN WE'RE COVER OUR DEBT BUT AT THE SAME TIME YOU'RE GAINING A LOT OF BOND CAPACITY AND YOU'RE GOING TO WANT A BOND ELECTION.
WE HAVE DEPLETED THE BOND FUNDS, WE HAVE COMPLETED IN PROJECTS, THOSE WERE PAID OUT OF OLD BONDS AND WE HAVE CLOSED THOSE OUT SO THOSE FUNDS ARE NO LONGER EXISTING SO AT SOME POINT YOU MAY WANT TO RUN ANOTHER BOND ELECTION AND IF YOU DO WHEN YOU GO TO YOUR CONSTITUENTS YOU'RE ABLE TO SAY THERE'S NO TAX INCREASE, WE'RE GOING TO RUN A BOND ELECTION, WE'RE NOT GOING TO INCREASE YOUR TACK RATE. YOU CONTINUE TO DROP THAT YOU HAVE TO COME BACK AND SAY WE'RE GOING TO RAISE IT 10-CENTS AND THAT'S MORE DIFFICULT TO DO SO
JUST THINGS TO KEEP IN MIND FOR THE FUTURE. >> [INDISCERNIBLE].
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>> CAN YOU POSSIBLY OUTLINE IN DETAIL WHAT YOU JUST STATED ABOUT DECREASING OUR TAXES AND WHY? I DON'T KNOW IF YOU'RE GOING TO REITERATE THIS AT OUR BOARD MEETING, BUT I THINK IT WOULD BE VERY IMPORTANT FOR US TO HAVE IT IN WRITING, ESPECIALLY FOR THOSE
BOARD MEMBERS THAT ARE NOT HERE. >> SURE AND I CAN TALK TO ALL SIDES OF THAT.
ONE YOU DON'T HAVE CONTROL OVER YOUR MINERAL RATE, AND YOU'RE GOING TO SEE AN INCREASE IN YOUR LOCAL TAX RATE. BY BUT BUZZ THAT VALUE WILL IS TO -- WHEN I SAY THAT VALUE THE PROPERTY VALUE IS SO HIGH WE'RE GOING TO GENERATE MORE AND I WILL TALK MORE ABOUT THIS SPECIFICALLY ON THE DEBT LIED SLIDE AND IT WILL BE IN MORE DETAIL.
JOSH WILL BE HERE AND HE'LL TALK TO YOU AND I'M ASSUMING IT WILL BE DONE THE SAME WAY, YOU'LL HAVE OPTIONS, THIS IS WHAT IT WOULD RAISE IF YOU LEFT IT THIS RATE AND IF YOU DROPPED I IT A PENNY OR TWO THIS WOULD WHAT YOU WOULD DO SO YOU DEFINITELY WILL HAVE THOSE OPTIONS AND I THINK IT'S IMPORTANT TO NOTE THERE'S NO ACTION TO BE TAKEN HERE TONIGHT.
THIS IS JUST GIVING YOU SOME GOOD INFORMATION ON WHAT'S TO COME.
YOU HAVE MORE THAN TWO MONTHS TO PREPARE YOUR BUDGET, LEGISLATION IS STILL IN SESSION, IF THEY DON'T GO INTO SPECIAL SESSION THEY STILL DON'T FINISH UNTIL WEDGED OF WEDNESDAY OF THIS WEEK. THEY WOULD SOME APPROPRIATION BILLS THEY'RE CONSIDERING SO I FEEL LIKE THEY'RE MAKING TRACTION. IF THEY DON'T GET IT DONE BY THE CLOSE OF BUSINESS ON WEDNESDAY THEY HAVE TO GO INTO SPECIAL SESSION SO REALLY WEATHER CHANNEL WANT THE TAKE TIME TO LOOK AT OUR FACTORS, AND I DO HAVE A DOTE SLIDE WHERE I CAN SPEAK MORE SPECIFICALLY TO WHAT THAT LOOKS LIKE. SO THE 5.9 BILLION NUMBER IS OUR PRELIMINARY VALUES PRODUCED BY DALLAS COUNTY AS OF APRIL. BETWEEN APRIL AND JULY 25 THEY'LL SEND US OUR CERTIFIED VALUES. THIS IS WHEN THEY'RE SEEING THE PROPERTY TAXES BEING PROTESTED SO WE WILL EXPECT THAT NUMBER TO DROP BETWEEN NOW AND JULY.
AND THEN FROM JULY TO JANUARY THAT'S WHERE WE'LL GET OUR T2 T TWO VALUE FROM THE COMPTROLLER'S OFFICE AND THE ASTERISK INDICATES THESE ARE A ESTIMATES AND USING TREND DATA TO SEE WHERE WE THINK WE MIGHT LAND AS WE PREPARE THE BUDGET, BECAUSE AGAIN THESE ARE BIG REVENUE FACTORS. THIS IS THE DATA THAT I USE, THIS IS A TAX VALUE HISTORY.
>> EXCUSE ME. >> GOT A QUICK QUESTION. ON THE PREVIOUS LIED SLIDE I THINK I POSED THIS QUESTION IN THE PAST ABOUT THE INCREASE TO US IF OUR ATTENDANCE RATE INCREASES BY ONE PERCENT. I DON'T REMEMBER WHAT THE NUMBER -- YOU PROVIDED THAT
NUMBER IN IF PAST. >> I CAN'T REMEMBER WHAT IT IS BUT IT WOULD BE SIMPLE TO DO, BECAUSE THERE'S A HUGE SPREADSHEET IN THERE AND THAT'S WHAT WE DO, JUST PULL UP THE
REVENUE AND I CAN DEFINITELY PUT THAT TOGETHER. >> NO PROBLEM THERE.
ONE OF THE THINGS I WANT US TO LOOK AT DOING AND BUDGETING SO WE CAN CONSECUTIVIZE THE CAMPUSES TO INCREASE OUR ATTENDANCE. OUR BIGGEST HANDWRITTEN
HINDRANCE WAS SECONDARY SO IF WEB FIND SOME KIND OF INCENTIVE. >> [INDISCERNIBLE] POPSICLE PARTIES, ALL KINDS OF THINGS THAT THEY HAVE I KNOW FOR MY OPEN DAUGHTER WHAT SHE'S BEEN DOING TO GET THE KIDS TO SCHOOL, IT'S A DIFFERENT CHALLENGE RIGHT NOW, SO ALWAYS TRY.
>> [INDISCERNIBLE] [INDISCERNIBLE] ON THE NEXT SLIDE WITH THE TAX VALUE
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HISTORY, JUST TRY TO TRACK AND DO SOME PREDICTIVE DATA. YOU SEE THERE THAT FIRST COLUMN SAYS APRIL LETTER THAT'S THE APRIL LETTER THAT COMES FROM DALLAS COUNTY, OUR PRELIMINARY VALUES FOR THE LAST SEVERAL YEARS AND COMPARE THAT TO THE GROWTH WHEN WE GET OUR JULY NUMBERS. WE DON'T HAVE THE JULY NUMBERS NOW SO I WILL TAKE WHAT OUR PRELIMINARY VALUE WAS AND LOOK AT WHAT WE'VE DONE IN THE PAST AND THE FAR CLIPPER SYSTEM ON THE RIGHT THOSE ARE THE PERCENT CHANGES TWINE APRIL AND JULY. LAST COUPLE YEARS HAVE BEEN SEX PERCENT SO I PREDICTED SIX AND A HALF PERCENT IS WHERE I CAME UP WITH THESE NUMBERS, WE WON'T KNOW PHYSICAL JULY BUT WE EXPECT IT TO BE LESS BECAUSE WE HAVE VALUES THAT WILL BE PROTESTED SO THAT'S WHERE THOSE IN YOUR OPINIONS COME FROM. THE TAX RATE HISTORY IS THEN SLIDE THAT GOES BACK TO 17/18 WHEN YOU WERE SENDING A TOTAL TARGET RATE OF A DOLLAR 54 AND YOU SEE THAT'S BEEN COMPRESSED EVERY YEAR. IT'S DROPPED BETWEEN INS AND WITH THE MNO WITH THE MAXIMUM PRESS TAX RATE, AGAIN WE TALKED ABOUT THAT, THE EIGHT CIRCUMSTANCES CENTS, THE 43-CENTS THAT'S ALREADY SHOWING AT ALMOST THE 7-CENT CENT DIFFERENT FROM LAST YEAR, SO JUST WANTED YO TO BE ABLE TO SEE THOSE AND AGAIN ALL PRINTIVE DATA, ALL ESTIMATES. NOW WE'LL GET INTO A LITTLE MORE OF THE METAL OF THE PRESENTATION AND WHAT YOU WANT TO SEE HERE. THIS IS THE REVENUE COMPARISON FROM WHAT WE ADOPTED OR WHAT OUR BUDGET WAS IN 22/23 AND AGAIN ALL ESTIMATES. THERE'S A REASON I PUT ZEROS IN THERE FOR EVERYTHING BECAUSE IT'S NOT A DETAIL, THIS IS AN ESTIMATE BASED ON ON ESTIMATE.THE BIGGEST THING YOU'RE GOING TO SEE HERE AT THE CHANGE LEVEL IS EXACTLY WHAT YOU WOULD EXAMINE TO SEE WITH OUR VALUES INCREASING SO MUCH, YOU'RE GOING TO SEE THAT YOU'RE GOING TO GAIN A LOT MORE MONEY IN YOUR LOCAL TAXES WITH YOUR PROPERTY VALUES GOING UP.
SO THERE'S A HUGE INCREASE THERE, ABOUT 6 MILLION-DOLLAR WHICH EVERYBODY GET EXCITED ABOUT UNTIL YOU LOOK AT THE NEXT ONE DOWN, SO WHY ARE WE LOSING STATE REVENUE? THEY HAVE AN EQUALIZATION FORMULA AND AS WE COLLECT MORE LOCALLY THEY DEFUND AT THE STATE LEVEL SO WE'RE GAINING MORE AND MORE FROM OUR LOCAL VALUES AND FROM OUR LOCAL CONSTITUENTS SO THE STATE IS SUPPORTING US LESS AND LESS THROUGH THAT PROCESS. NOT A LOT OF CHANGE TO BE EXPECTED, AGAIN JUST ROUNDING THOSE OUT SO YOU CAN SEE THERE THE TOTAL IS WE'RE EXPECTING ABOUT $2 MILLION LESS NEXT YEAR COMPARATIVELY TO ADOPTED. THIS IS A GOOD OPPORTUNITY TO REITERATE WE REDUCED OUR REVENUE EXPECTATIONS THIS YEAR BY $4 MILLION, SO I THINK THIS IS A GOOD ESTIMATE. I THINK WITH THE DATA WE HAVE TODAY I THINK THAT'S A PRETTY SOLID ESTIMATE, A LITTLE LESS MONEY TO BE. ANDED IN THE COMING YEAR SO WHAT ARE THE CHALLENGES IS THAT WE SEE? EXACTLY WHAT WE TALKED ABOUT, THE DELAY IN INFORMATION WITH THE VALUES IN ANGEL AND THE COMPTROLLER VALUE IN JULY AND JANUARY, THE USING GOOD DATA TO PREDICT OUR ENROLLMENT AND RIGHT NOW WE'RE WAITING TO GAIN MORE INFORMATION FROM MANDATES THAT COME FROM THE STATE THAT MAY NOT BE TURNEDDED, INCREASE TO THE ALLOTMENTS, ANYTHING LIKE THAT, SAFETY ALLOTMENT, I'M CERTAIN TEACHERS ARE GOING TO GET A RAISE. WE CONTINUE TO HEAR THE BASIC ALLOTMENT IS GOING TO CHANGE.
ER ONE OF THOSE THINGS WILL AFFECT THE NUMBERS THAT I SHOWED YOU.
TALKING AROUND OUR CAMPUS ALLOCATION, THE MAIN REASON I PUT THIS ON HERE I WANTED YOU TO SEE HOW THEY'RE DERIVED. THE NUMBER ON THE FAR LEFT IS THE ENROLLMENT OF THE SITE AND THEN THE NEXT VALUE IS THE DOLLAR VALUE ASSIGNED TO EACH OF THOSE CAMPUSES AND.
THE ASTERISK FOR THE HIGH SCHOOL IF YOU TAKE THAT IT DOES NOT COME OUT TO 200,000, THE DIFFERENCE IS ADDITIONAL 30,000 IS IN THERE FOR THEIR GRADUATION EXPENSES, THAT WAS ADDED AS A REQUEST LAST YEAR AND SO I LEFT THAT IN THERE PRELIMINARILY AGAIN, CAN IN I OF THIS CAN CHANGE BUT I WANTEDDED YOU TO UNDERSTAND HOW IT'S DERIVED AND NUMBER TWO THESE GET ADJUSTED SO
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THIS IS FROM LAST YEAR, SO WE'LL LOOK AT THIS AND IF THERE'S A SIGNIFICANT CHANGE IN THE EPIROMMENT WE WILL ADJUST THOSE SO THEY HAVE FUNDS TO OPERATET. CAMPUS ALLOCATIONS ARE USES TO BUY BASIC EQUIPMENT, SUPPLIES, TRAVEL ANY GENERIC DISCRETIONARY BUDGET FOR THEIR CAMPUSES. THIS DOESN'T INCLUDE ANY TYPE OF SALARY OR ANYTHING LIKE THAT.DISTRICT WIDE IT'S LESS THAN $700,000, I KNOW IT SOUNDS LIKE A LOT OF MONEY BUT IN A 75 MILLION-DOLLAR BUDGET IT'S NOT A LOT OF MONEY SO WE'RE NOT TALKING ABOUT A BIG SWING, A BIG BUDGET EFFECT AND IT'S CONSISTENTLY APPLIED SO EVERYONE IS RECEIVING EQUITY.
AND THEN THERE ARE THINGS THAT ARE CENTRAL ICE IN THE DISTRICT, LIKE THEY DON'T BUY THEIR KISSIMMEEING MACHINES. ON THE NEXT ONE IS THE PAYROLL COMPARISON AND I'M SHOWING YOU THIS JUST FOR THE THE EXACT OPPOSITE REASON AS THE LAST SLIDE, THE PAYROLL COMPARISON IS SIGNIFICANT AND IMPORTANT BECAUSE IF YOU LOOK AT THE BOTTOM LINE OF NUMBERS THERE IT'S ALMOST FIVE SICK MILLION DOLLARS AND YOU'RE TALKING ABOUT A 75 MILLION-DOLLAR BUDGET.
IF YOU WANT TO AFFECT YOUR BUDGET THIS IS WHERE YOU AFFECT YOUR BUDGET.
EVERYBODY ON THE BUDGET IS DRIVEN OFF THIS SLIDE HERE AND SO WANTED YOU TO SEE THAT CURRENTLY WHERE WE SIT AND AGAIN, VERY PRELIMINARY, ESPECIALLY WITH PAYROLL, VERY PRELIMINARY. THE PAYROLL BUDGET FOR 22/23 WAS SET AT 55 -- JUST 4 MILLION AT THE TIME THE SNAPSHOT WAS DONE IT'S ABOUT 3500 EMPLOYEES: CURRENTLY THE SNAPSHOT WAS RAN ABOUT A TWO OR WEEK AGO IN HR, MS. LAST NAME PROVIDES THAT AND WE'RE AT 930 EMPLOYEES AND WE WOULD EXPECT AS LITTLE MORE OF A DROP IN THAT PAYROLL BUT IF YOU LOOK OUT THERE, THAT $700,000 NUMBER FOR ROGER THAT'S ROGER'S RAISE, I'M KIDDING. I'M KIDDING.
I'M KIDDINGED. I'M WAITING TO SEE IF -- I WAS JUST MAKING SURE EVERYONE WAS PAYING ATTENTION. WE HAD SOME ESSER UNDERS IN WE SUM PLANTED SOME MONEY, IT'S ONE OF FEDERAL FUNDS THEY ALLOWED US TO SUP PLANT. WE HAD ABOUT $700,000 IN SALARIES FOR CUSTODIANS SWELL 700,000 IN SUPPLIES AND MATERIALS THAT WE SUPPLANTED AND WE PAID FOR THOSE OUT OF FEDERAL FUNDS RATHER THAN OUR GENERAL FUND THIS CURRENT, IF 22/23.
IN 23 TOWNSHIP/24 THOSE NO LONG LONGERRIST. SO IT'S NOT AN INCREASE TO EMPLOYEE PAY, IT WAS PAID OUT OF ANOTHER FUND AND IS MOVING BACK TO THAT BUDGET.
>> MR. CHAIR MAY I ADD SOMETHING TO THAT? I ALSO WANTED TO SHARE WITH THE BOARD AND COMMUNITY THAWIER CONTINUE TO WORK ON THE STAFFING PIECE AND THE NUMBERS ARE NOT REFLECTED IN HERE BUT WE HAVE A NUMBER OF VACANCIES IS THAT WE WILL USE TO MAKE THIS ADJUSTMENT AND I THINK WE'RE ESTIMATING THAT TO BE ABOUT A MILLION DOLLARS.
AM I RIGHT ON THAT? >> MINIMUM. >> AND ALSO DR. BARKER AND DR. TAYLOR HAS BEEN WORKING ON THE STAFFING PIECE. WHAT HAS DELAYED US ARE THE NUMBERS SO BARKER DO YOU WANT THE TALK ABOUT THE PROCESS YOU UTILIZED FOR LOOKING AT STAFF AND HOW DO WE RIGHT SIZE OUR BUILDINGS? I WANT THE BOARD TOE GET SOME
CLARITY ON THAT. >> WE PARTNERED WITH A COMPANY SO THAT WE CAN LOOK AT IT AS BEING SOMETHING THAT IS STUDENT DRIVEN SO WE WANTED TO MAKE SURE THAT WE MATCH STUDENT INTEREST AS WELL AS WHAT WAS NEEDED FOR GRADUATION AND I GUESS I SHOULD HAVE STARTED WITH WE FEEL WE'RE PRETTY RIGHT SIZES AT ELEMENTARY. WE DO QUITE A BIT OF BALANCING TO MAKE SURE OUR NUMBERS DON'T GO OVER 22/23, 24 AT MOST IN THE CLASSROOMS SO IN LOOKING AT SECONDARY WE WANTED TO MAKE SURE THAT WE WERE OFFERING CLASSES THAT STUDENTS ACTUALLY WERE
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INTERESTED IN TAKING AND WERE IN LINE WITH THE PATH WAYS IS THAT WE ARE OFFERING.SO CASE IN POINT, WE MAY HAVE -- WE HAD LAST YEAR TWO STUDENTS TO CHOOSE AND I'LL NAME IE PROGRAMS VERY EXPENSIVE, IT'S ABOUT 25,000 PER STUDENT AND WE KIND OF HAD TO MAKE SOME CHASES AS TO IF WE PARTNER WITH DALLAS COLLEGE TO DO IT OR OFFER IT AT OUR HIGH SCHOOL, SO WE'RE LOOKING AT THE MASTER SCHEDULE IN THAT WAY TO MAKE SURE THAT WE'RE MANGANESING THE OFFERS THAT WE HAVE AND THAT IT IS ALIGNED WITH THE PATH WAY THAT STUDENTED NEED IN ORDER TO GRADUATE. IT'S TAKEN US A WHILE. WE GOT OUR MASTER SCHEDULE IN EARLIER THAN WE'VE ALREADY HAD IT IN, APRIL 1, BUT WE HAVE BEEN GOING BACK TO INSTITUTES TO MAKE SURE THAT IT IS ALIGNED OUR GRADUATION PLAN AND WE ADD AN EXTRA CLASS PERIOD.
SO WE'RE TRYING TO BE CREATIVE TO MAKE SURE THAT WE'RE UTILIZING THE STAFF THEY AVAILABLE BUT ALSO LOOKING AT THE VACANT POSITIONS TO SEE IF WE REALLY NEED THEM.
WE HAVE BEEN CREATIVE -- ONE LAST THINGIVELY SAY, WE'VE BEEN CREATIVE WITH OUR COACHES AND LOOKING AT THEIR CERTIFICATIONS, MAKING SURE THAT'S ALIGN SO IT'S A TOTAL AUDIT OF EVERYONE WHO'S IN THE BUILDING CAN MAKE AING SURE THAT WE'RE SERVING OUR STUDENTS TO MATCH WITH THEIR INTERESTS AND GRADUATION REQUIREMENTS. SO IT'S A FULL COMPREHENSIVE OVERHAUL MAKING SURE WHERE WE ARE DOWN SIZING OR RIGHT SIZING THAT WE'RE DOING IT RIGHT.
>> SO IT'S NOT AS SIMPLE AS LOOKING AT THE NUMBER OF STUDENT IN THE BUILDING AND THE NUMBER OF STAFF BUT IT REALLY IS AN OPPORTUNITY FOR US TO ENSURE THAT WE'RE PROVIDING OUR STUDENTS THE THINGS THEY NEED. FOR LACK OF A BETTER DESCRIPTION I WILL SAY OUR STAFFING HAS BEEN MORE SO DRIVEN BY WHAT THE ADULTS IN THE BUILDING WANTED AS OPPOSED TO WHAT THE STUDENTS NEEDED SO WE'RE TRYING TO MAKE THAT ADJUSTMENT SO IT IS TRULY STUDENT CENTERED.
AND I HOPE THAT HELPS EXPLAIN THAT WITH THE STAFFING AND WHY IT'S TAKENS A WHILE.
>> ONE OTHER COMMENT, AND CORRECT ME IF I'M OFF, TYPICALLY WITH THE SCHOOL FINANCE WE LOOK AT IT NOT EXCEEDING 80 PERCENT OF THE SALARIES AND THEY'RE ABOUT FIVE PERCENT LESS THAN
THAT WHICH IS TYPICALLY A GOOD THING. >> YES, YOU DON'T WANT TO BE
ABOVE 80 PERCENT. >> CHAIR CLEWIS, I JUST WANT TO RECORD TO SHOW THAT TRUSTEE
WHITFIELD ARRIVED AT 5:55 P.M. >> YOU MAY PROCEED. >> SO AGAINIVELY I'LL SAY THAT IS KNOWLEDGE THE -- KNOWLEDGE THE THE BIGGEST AFFECT ON OUR FUNDS BUT IT IS A DIFFICULT ONE THE MANAGE AND I KNOW THAT THERE ARE UN -- THERE IS POSITIONS IN THERE THAT ARE BUDGETED BUT NOT FILLED SO THOSE ARE THINGS THAT I KNOW THE DEPARTMENT WILL WORK ON NARROWING THOSE DOWN MOVING FORWARD, SO JUST A GOOD BASELINE TO START AND WANTED TO SEE THE FIGURE THERE AND HOW BIG IMPACTS THAT MAKES. SO OUR OVER ALL BUDGET, THE BIGGEST EFFECT THERE IN 51, YOU SEE THE ESSER IT'S RIGHT AT $1.4 MILLION, THAT'S A BIG INCREASE BUT THAT IS TRULY COMING FROM SUP PLANTING FROM ONE FUND TO ANOTHER AND SO THAT'S A HUGE INCREASE TO YOUR BUDGET. EVERYTHING ELSE IS PAYROLL RELATED WHETHER IT'S A POSITION MOVED, VACATED, THOSE ARE THE THINGS THAT ARE GOING ON AS WE'RE LOOKING AT THIS.
THIS WILL BE REFINED OVER THE NEXT COMMERCES BUT THE EXPENDITURES ARE ESTIMATED TO BE HIGHER -- THIS IS ANOTHER THING THAT I THINK IS IMPORTANT TO BRING HOME YOU CAN SHIRR RIFF KNEW IS EXPECTED TO BE LESS SO OVER THEN COUPLE MONTHS THOSE ARE THE THINGS THAT I WOULD WANT THE FOCUS ON BETWEEN DEPARTMENTS AND AS A DISTRICT THAT THOSE ARE RIGHT SIZES.
BECAUSE REALLY THE ONLY CONTROL YOU HAVE IS CONTROLLING YOUR EXPENDITURES.
IF YOU DON'T HAVE THE ABILITY TO RAISE MORE MONEY, YOUR MONEY IS GENERATED BY STUDENT ENROLL.
AND YOUR VALUE IN YOUR DISTRICT. OF TO MAKE YOUR EXPENDITURES MEET THAT BECOMING SO THOSE
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ALREADY THE THINGS YOU'RE GOING TO WANT TO DO AS YOU MOVE FORWARD WITH THOSE TRENDS.SO BUDGET IMPACTS, THE 1.4 MILLION THAT WAS SUP PLANTED I WOULD EXPECT THAT WE'RE GOING TO HAVE A PROPERTY INSURANCE INCREASE, I KNOW THAT WILL BE COMING IN ANYTIME BUT THAT'S
SOMETHING END EXPECT TO SEE A BUMP IN. >> CHAIR, MR. GARRISON CAN I ASK YOU TO GO BACK TO THE PREVIOUS SLIDE AND YOU TALKED ABOUT THE EASIER $2 FOR MAINTENANCE AND OPERATIONS AND ALSO EARLIER YOU TALKED ABOUT THE BOND DOLLARS FROM THE -- WAS IT 2015 BOND THAT THEY HAVE BEEN EXHAUSTED AND I JUST WANT YOU TO SHARE WITH THE BOARD AND THE COMMUNITY
HOW MAINTENANCE UTILIZED OTHER THE LAST YEAR. >> SO AS YOU'RE AWARE ROGER DOES AN UPDATE EVERY MONTH AND THOSE FUNDS HAVE BEEN USED TO DO A NUMBER OF PROJECTS BUT THE BIGGEST ONE IS ROOFING AND THINGS OF THAT NATURE AND THOSE ARE THINGS THAT AGAIN THEY WEREN'T BILL BUILT INTO OUR BUDGET, THEY WERE BUILT INTO HAVING THOSE FUNDS AVAILABLE AND USING THOSE SO YOU'RE SHOWING LESS REVENUE AND MORE EXPENDITURES SO IF THAT'S SOMETHING YOU'RE THE EXPECTING IN THE FUTURE THAT'S GOING TO HAVE TO BE CAMPED ON THE AND/OR CONSIDERED AND AGAIN I DON'T WANT TO STEP OUT OF MY LANE BUT AGAIN SOME SORT OF BOND ELECTION PROCESS WHERE THOSE FUNDING CAN BE GENERATED THROUGH A BOND PROGRAM T.
I WILL SAY TOO THOUGH I FEEL LIKE THIS AFTERNOON THEY WERE PUT TO GOOD USE, IT WAS NICE TO HAVE THOSE FUNDS, BUT WHEN YOU CAN ROLL THOSE INTO PROJECTS LIKE A ROOF OR SOMETHING ALONG THOSE LINES THEY'RE GOING TO PAY DEADLY WEAPONS IN DIFF DEPENDS IN THE FUTURE.
>> WHAT I.D TO HIGHLIGHT IS WE HAVE PRIORITIZED THINGS THAT ARE NEEDED FOR OUR INSTRUCTIONAL AREAS AND WE NEED SOME OTHER NEEDS IS THAT WE'LL BE BRINGING BACK SO I WANTED TO REMIND THE BOARD AND THE COMMUNITY PERSONS THAT WE HAVE BEEN DOING LIKE THE ROOFING AND HVAC SYSTEMS AND OTHER MUCH NEEDED AREAS AS WELL AS LIGHTS THROUGHOUT OUR BUILDINGS AND OUR FACILITIES WE DO HAVE SOME ATHLETIC PIECE THAT WILL BE COMING FORWARD AND I WANTED TO MAKE SURE THAT YOU'RE AWARE BUT I WANTED TO MAKE SURE THAT WE'RE BADGING, ENSURING THAT OUR CLASSROOMS AND BUILDINGS WHERE OUR STUDENTS ARE ARE TAKEN CARE OF BUT WE HAVE TO UPGRADE SOME OF THE THINGS FROM OUR ATHLETICS BUT BUILT MAYBE 20 YEARS AGO AND IT'S TIME TO UPGRADE THOSE
THINGS. >> I HAVE A QUESTION FOR THE SUPERINTENDENT AND MR. GARRISON.
THERE WERE A LOT OF REPAIRS THAT WERE COMPLETED THAT NEEDED TO BE COMPLETED.
WITH THOSE REPAIRS, OF COURSE THERE WERE -- IT WAS SPOKEN OF AS FAR AS I MENTIONED IN THE PAST THE WASH WARRANTEE, HAVE WE LOOKED TOO INTO THOSE TO SEE IF THERE'S ANY REIMBURSEMENT BASED ON THE REPAIRS THAT WERE COMPLETED? THE DISTRICT PAID FOR IT OUT OF POCKET, BUT WE WERE ABLE TO ASK REIMBURSEMENT BECAUSE WE STILL WITHIN OUR WARRANTEE FOR A LOT
OF THOSE ITEMS. >> I'LL YIELD TO MR. GARRISON AS WELL AS ROGER BECAUSE I KNOW
THAT THEY HAVE INVESTIGATED A LOT OF THOSE THINGS. >> I KNOW THAT THERE MR. OSESER CONTACTED IF THERE'S ANYTHING AVAILABLE WE'LL DEFINITELY EXERCISE THAT, I KNOW THERE'S SOMETHING THAT SAME UP THIS WEEK, SO I KNOW THOSE CALLS HAVE BEEN MADE.
>> SORRY, WAS THERE -- ARE YOU TALKING ABOUT MOST RECENT OR OVER A.
AS FAR AS THROUGHOUT THE YEAR, THE SCHOOL YEAR THAT THERE WERE CALLS MADE FOR REIMBURSE.
S OR SOMETHING -- SO THERE WAS NO CONTACT? >> NO, THERE WAS CONTACT BUT AGAIN THESE ARE THINGS THAT MAYBE INSTALLED YEARS AGO SO THE WARRANTEES MOST TIMES THEY'RE NOT LONGER THAN A YEAR OR TWO AND SO IF THINGS HAVE BEEN PUT IN PLACE TEN, 15 YEARS AGO WE DOME HAVE A WARRANTEE ON THAT ANYMORE. THINGS LIKE OUR HVAC SYSTEMS, ROOFING HAVE LONGER LIFE SPANS AND IT WAS JUST TIME. THERE WAS NO WARRANTEE NEEDED OR
NECESSARY, IT WAS THEY WERE OLD. >> EVEN FOR THE NEW BUILDINGS, I'M SPEAKING SPECIFICALLY OF THE
[00:35:02]
NEW BILLION THAT REQUIRED REPAIR. >> MOST OF THE ITEMS WERE BUT AGAIN I DON'T KNOW OFF THE TOP OF MY HEAD AND I DON'T WANT THE GIVE YOU FALSE INFORMATION.
>> AND I DON'T WANT TO BE OUT OF LINE BUT WE'LL HAVE AN OPERATIONS UPDATE ON THURSDAY TO ANY OF THOSE TYPE OF QUESTIONS IF THIS IS NOT SPECIFIC TO BEEN BUT ANYTIME SOMETHING COMES UP IF THERE'S ANY TYPE OF CAN WE RECOUP THE FUNDS, WEAL DO XYZ, SO THAT'S ALL DONE IN EVERY ASPECT. WE'RE NOT JUST GOING TO CALL CAN SPEND THE MONEY IF WE FEEL SOMEBODY OWES US OUR WORK NEEDS TO BE DONE ON SOMETHING DONE FAULTILY.
>> I KNOW LAST YEAR WE PUT IN A CAPITAL OUT LAY FUND, WILL WE HAVE THAT THIS YEAR.
>> THAT'S WHAT I'M GETTING AT. THOSE CAME BECAUSE YOU REMEMBER ABLE TO PUT IN A FUND BALANCE, WITH THAT SAID THE MONEY THAT WAS PUT INTO FUND BALANCE WAS DONE BECAUSE YOU WERE ABLE THE RECOUP AND MOVE MONEY OVER SO IT'S A LITTLE BIT OF A SHELL BECAME BUT IN IN THE TREND YOU'RE IN NOW YOU'RE GOING TO BE DOING THAT OUT OF YOUR FUND BALANCE, SO I WOULD SAY NO THOSE AREN'T GOING TO BE THERE, IT'S GOING TO COME DIRECTLY OUT OF FUND BALANCE IF THAT'S GOING TO
HAPPEN UNTIL THOSE EXPENDITURESK. BACK DOWN. >> I WOULD RECOMMEND US LOOKING AT A WAY TO ADDRESS DEFERRED MAINTENANCE SO WE DON'T GET INTO THE SITUATION WE WERE IN IN IF
PASSION. >> YES, SIR, WE HAVE THE COMMITTEE THAT MANY OF YOU NOMINATED TO PARTICIPATE ON, OUR FIRST MEETING IS FIRST WEEK OF JUNE WITH THAT COMMITTEE AND WE HAVE SOME COMMUNITY MEMBERS THAT WILL GIVE INPUT AND STAFF MEMBERS AND AT SOME POINT DOWN THE ROAD I WOULD LIKE TO GET OUR STUDENTED INVOLVED BUT OF COURSE THURSDAY IS THE LAST DAY FOR THEM UNTIL THE NEW SCHOOL YEAR AND I DON'T WANT TO WAIT UNTIL THEN.
OUR FUND BALANCE IS A PLACE WHERE WE CAN FIND THE DOLLARS IN ORDER TO GET ME SOME THINGS DONE, IT'S HARD TO ASK THE COMMUNITY FOR BOND DOLLARS WHEN YOU HAVE IN EXCESS OF WHAT IS REQUIRED BY THE STATE IN YOUR FUND BALANCE AND I WILL SAY AGAIN AS ALWAYS WE ARE NOT A BANK. THE COMMUNITY GIVES US THOSE DOLLARS TO INVEST IN OUR KIDS AND THEM HAVING SILTING IN A SAVINGS ACCOUNT OR WHATEVER ACCOUNT DRAWING INTEREST THAT'S I THINK IT COULD BE CONSIDERED DISRESPECT. TO OUR COMMUNITY.
WE SHOULD HAVE IN OUR FUND BALANCE WHAT EXACTLY IS IT STATE SAYS WE SHOULD HAVE, MAYBE A BUFFER FOR MORE THANS BUT WE HAVE SOME SERIOUS FOR A MINUTE NEEDED AND IF WE DON'T EXHAUST THE ITEMS THAT'S GOING TO MAKE IT VERY DIFFICULT FOR US TO DO ANY BOND NOS. WHAT YOU DO WITH THAT TAX RATE. AND REMEMBER I'M A CITIZEN HERE NOW, I LIVE IN THE COMMUNITY.
>> AGAIN, BUDGET IMPACT 1.4 FROM EASIER TWO, PROPERTY INSURANCE INCREASE PENDING, WE WILL NOT BE RECEIVING THE CIRCUMSTANCES 65,000-DOLLAR FOR THE RAINY THE FUND AS THAT'S GOING TO -- THAT WHOLE SITUATION IS GOING TO BE THE RESOLVED BECAUSE THE VALUES IN THE AREA HAVE GROWN SO MUCH ALL THE PARTICIPANTS HAVE HAVE RECOUPED THE MONEY THINK NEED AND.
THERE WON'T BE ANYMORE EXCHANGE, EVERYTHING WILL BE PAID, WE COLLECT THOSE DOLLARS FROM DAHLS COUNTY AND THEN WE ISSUE BACK OUT TO -- THEY PAY US A PORTION AND WE OWN THE PROPERTY, WE GET TO KEEP THE INTEREST ON IT AND THAT NO LONGER EXISTS BECAUSE IT'S PAID FOR.
WE'VE GROWN SO MUCH IN VALUE IN THE WHOLE AREA, THE WHOLE ISSUE IS RESOLVED AND WE'LL ISSUE THOSE PAYMENTS AND THAT WILL BE OFF THE BOOKS, SO WE WON'T HAVE TO MESS WITH THAT ANYMORE.
WE HAVE 20 CLOSER ROUGHLY 20 POSITION IN ESSER THREE. THAT'S NOT A DIRECT IMPACT FOR THIS YEAR BUT AS WE TALK ABOUT PROJECTING IN BUDGETS THAT GRANT EASIER TWO SETTLEMENT ENDS IN SEPTEMBER. EASIER THREE GOES FOR THE FULL NEXT YEAR BUT YOU HAVE POSITION THAT ARE BUDGETED INTO THAT THAT YOU'LL WANT TO BE MANNING AND PREPARING FOR.
[00:40:01]
I KNOW DR. BARKER HAS BEEN WORKING ON THAT BUT THAT'S SOMETHING THAT YOU'LL WANT TO HAVE. THE BOND FUNDS ARE EXHAUSTIONED. I WANTED IT TO ALL BE RED BUT WE HAVE WORKED TO REDUCE OUR DEPARTMENTAL BUDGETS, THAT'S THAT IS SOMETHING THE DISTRICT HAS DONE AND WE HAVE HAD A LARGE INCREASE IN OUR INTEREST EARNINGS THAT WILL HELP OFFSET THAT LOSS. THE NEXT PORTION IS RELATIVELY SMALL IN NATURE BUT THIS IS A SIGNIFICANT ONE THAT I FEEL LIKE THE BOARD NEEDS AN UPDATE ON WITH OUR FOOD SERVICE PROGRAM AND THE BUDGET. AS YOU GUYS KNOW WE'VE JUST ENTERED INTO A CONTRACTED WITH A NEW FOOD SERVICE MANAGEMENT COMPANY, THAT CONTRACT WILL BEGIN JULY 1.WE'LL BE SUNSETTING THE CONTRACT BUT THE DISTRICT HAS BEEN THROUGH PRETTY EXTENSIVE AUDIT DATING BACK THE JANUARY OF 2022 AND SO WE'VE WORKED THROUGH THAT.
GOT NOTIFICATION OF THAT IN THE FALL. WE HAVE RECTIFIED MANY OF THE I'MS BUT WE WENT BACK ALMOST TWO YEARS, BUT I THINK MS. RANDALL UPLOADED OVER A THOUSAND UPHOLDS REVIEWING THE DATA FOR ACCOUNTING CAN CLAIMING AND THAT LAST PORTION SHOULD BE COMPLETED THIS FRIDAY. WE NATIONWIDE THAT TO BE DONE PERFECTLY, IT WAS CLOSE THE LAST TIME AND THERE WERE A COUPLE MINOR THINGS BUT THEY SAID IT IS TO BE COMMUTE PERFECT.
THEY ARE HOLDING OUR REIMBURSEMENT AND IT'S ESTIMATED BETWEEN 5.4 AND $5.7 MILLION AND WE HAVE NOT RECEIVED A DIME OF THAT MONEY; IN 26 YEARS I'VE NEVER HEARD OF THIS HATCHING SO THAT IS A SIGNIFICANT BUDGE BUDGET IMPACT. THE FOOD SERVICE IMBALANCE WAS -- THE FOOD SERVICE FUND BALANCE WAS EXCESSIVE TERROR POINT THAT IT NEEDED TO BE SPENT SO WE'VE BEEN ABLE THE HELP CARRY US THROUGH THE YEAR WITH THAT FUND BALANCE.
WE CLEAR THIS AUDIOAND THOSE WILL BE RELEASED TO US CAN AND WE SHOULD BE GOOD TO GO BUT IF THAT'S NOT CLEARED THAT AUDIT WILL GO ABSOLUTELY NEXT YEAR WMD AT A SAID I WILL TELL YOU THAT IT'S BEEN AN AN EXTENSIVE CHANGE IN OUR FOOD SERVICE MANAGEMENT PROGRAM.
WE HAVE HIRED A NEW COMPANY, WE HAVE ADDED AN ADDITIONAL POSITION, MS. RANDALL HAD THAT POSITION BY HERSELF, WE HAVE ADDED A STAFF MEMBER IN THAT DEPARTMENT.
THE POINT OF SALE SYSTEM WHICH IS A BIG PORTION OF THE PROBLEM WITH THE COUNTY, THAT SYSTEM HAD NOT BEEN CONSISTENTLY WORKING FOR YEARS AGO SO THAT'S ALREADY BEEN APPROVED FOR PURCHASE 689 SO THERE WILL BE A NEW POINT OF SALE SYSTEM INSTALLINGED SO THERE'S BEEN A COMPLETE REVAMP OF THE FOOD SERVICE PROGRAM AND MOVING FORWARD THAT WILL BE BETTER BUT THERE ARE STILL
THINGS TO GET IT US THROUGH THIS LAST LITTLE BIT. >> MR. CHAIR, WITH THIS GREAT NEWS THAT THE AUDIT IS ALMOST COMPLETE WE HAD A HEALTHY FUND BALANCE AND WE'RE GOING TO HAVE ANOTHER HUGE FUND BALANCE. HOW DO WE PLAN ON SPENDING THOSE DOLLARS?
AUDITS IN THE PAST WE GOT DINGED ON THAT. >> IN OBJECTIONER AND I SPOKE ABOUT THAT, THAT IS SOMETHING THAT IS NATIONWIDE AT THIS POINT T.
YEARS AGO YOU WERE TRYING TO FIRST THING OUT HOW TO BREAK OVERREN AND NOT HAVE TO SUPPLEMENT OUT OF YOUR GENERAL FUND, WHEN COVID HAPPENED EVERYBODY IN THE COUNTRY WAS DEALING WITH HAVING AN EXCESS FOOD SERVICE FUND BUT BECAUSE EVERYONE IS DEALING WITH IT EVERYONE IS TRYING TO SPEND THE MONEY BUT THOSE FUNDS HAVE TO BE REOPINIONED INTO YOUR FOOD SERVICE PROGRAM, SO THINGS LIKE THE POINT OF SEAL SYSTEM. UPGRADING EQUIPMENT, WARMERS, COOLERS, OVENS, FRYERS, ALL OF THOSE THINGS ARE A QUALIFYING EBBING PENSIONS AND HAVE TO BE APPROVED THROUGH THE BOARD BUT WE HAD SOME OF THAT IN THE WORKS WITH CAFETERIA TABLES AND THINGS OF THAT NATURE. SO IT WILL BE -- THERE HAVE BEEN UPGRADES AND THERE WILL CONTINUE TO BE UPGRADED. THIS NEW CONTRACTOR THEY'RE GUARANTEEING A RATE OF RETURN A MEMO OF $600,000. WHEN WE HAVE AN ICE STORM AND WE SHUT DOWN AND LOSE FOOD THERE'S NO GUARANTEE BUT WE'RE CONTINUING TO ADD TO OUR FUND BALANCE.
[00:45:02]
>> AND WILL THEY ALSO BE ABLE THE ASSIST US IN ENSURING THAT WE PASS AUDITS ON AN ANNUAL
BASIS? >> I'M GLAD YOU ASKED. A PERSON THAT WAS DEDICATED TO MONITORING THE COUNTY IN CLAIMING, THE FISSION FISCAL MONITORING TO MAKE SURE THE BILLING IS HANG RAT SEW YES, SIR THAT'S BEEN DONE ON THEIR SIGH AND I'LL REMIND YOU THAT IT'S IMPORTANT YOU KNOW WHEN YOU TALK ABOUT HOW THE SPEND THAT FUND BALANCE WE'VE ADDED A POSITION BUT THAT IS PAID FOR OUT OF FOOD SERVICE SO AGAIN THAT'S GOING TO COME OUT OF THAT SAME FUND.
>> MR. CHAIR I WOULD ADD ONE MORE THING TO THAT. THE BOARD MADE A CONDOMINIUM COMMITMENT THAT EVERY CHILD ANOTHERS FREE THE THE COMMITMENT IS STILL BEFORE US.
IF WE DON'T GET THIS AUDIT IT WILL MAKE IT DIFFICULT TO DO THAT IN THE FALL AND AS MR. GARRISON SAY IT WAS A TIME STAMP ISSUE THAT HAD US FAIL THIS PAST ONE.
>> . THE A PRETTY PETTY FAIL, THEY'RE REALLY DIFFICULT TO WORK WITH.
ANY OF THE CORRESPONDENT -- NOT JUST HERE, NOT ONE -- I'VE NOT RECEIVED ONE AUDIT FORM DUE DATE THAT DID NOT COME ON THE FRIDAY AFTERNOON BEFORE A HOLIDAY AND ASK FOR IT THE VERY DAY WE COME BACKMENT THREE OF THEM THIS YEAR, ALL THREE OF THEM DONE THE SAME WAY.
>> I GUESS WITH THE -- WE HAD A BAD POS SYSTEM FOR YEARS, IS THAT ON THE PREVIOUS COMPANY OR
ON US? >> THAT'S ON US; THAT'S SOMEBODY THAT SHOULD HAVE BEEN DONE -- YOU ASKED SO I'LL GOING TO ANSWER THAT, WE IDENTIFIED THAT THAT WAS AN ISSUE AND WE WENT THROUGH THE PROCESS OF PROCURE. , WE GOT QUOTES TO GET THAT DONE AND WHEN WE REALIZED THAT WE WERE GOING TO BE SWITCHING COMPANIES, IN THE FORM, THE RFP IS ONE OF THE BOXES THAT CAN BE CHECKED IS DO YOU WANT TO BE RESPONSIBLE. WE SCRAPPEDDED OUR PROCUREMENT PROCESS, WE HAVE EVERYTHING READY TO MOVE FORWARD EASTBOUND THEY APPROVED THAT IN FEBRUARY, LATE JANUARY, FEBRUARY AND CAME TOBACCO AND WE CAN'T APPROVE THIS SO WE LOST THREE MONTHS OF TILE WHERE WE COULD HAVE REPLACED THAT SO THAT'S ANOTHER HINDRANCE THAT WE CAN THANK TDA
FOR. >> THANK YOU. >> I ENDED WITH DEBT SERVICE FOR A REASON BECAUSE THIS IS A LOT MORE POSITIVE. THIS IS THE TOP PORTION THERE IS STRAIGHT OUT OF THE BOOK, JUST A CLIP OUT OF THE BOOK THAT JOSH FROM BLK BRINGS TO US AND THERE ARE 22/23 PAYMENT IS JUST OVER 19 MILLION AND IF YOU LOOK AT THE BUDGET ON THE 22/23 COLUMN YOU CAN SEE THAT WE'RE SLATED TO COLLECTS OVER 19.1 MILLION DOLLAR AND THE REASON IS ONLY USE THIS TO PAY DOWN DEBT SO YOU SHOULD ALWAYS SEE THAT WE BUDGET FOR REVENUE SHOULD EQUAL THE EXPENSES SO PAYING AGENT FEES THE BANK COLLECT SO THAT'S WHERE YOU SEE THERE.
AND YOU LOOK AT THE 23/24 IT'S ACTUALLY DROPPED AND OUR PAYMENT IS GOING TO BE JUST UNDER 14 MILLION AND I FEEL LIKE THAT'S A CONSERVATIVE ESTIMATE AND WE'RE GOING TO COLLECT 23.6 MILLION. SO WHAT ARE WE GOING TO DO WITH THE ADDITIONAL TEN MILLION DOLLARS? THAT COMES BACK THE MANAGERS MORRISES YOUR QUESTION HOW DO WE HANDLE OUR DEBT SERVICE. THIS IS BASED ON USING THAT SAME FIGURE OF 4.375 WITH THE NEW VALUES SO YOU WOULD BE ABLE THE DROP THAT TO DIRECT BUT AGAIN WHAT WE'VE DONE IN THE PASSION IS WE HAVE DEFEED SOME DEBT WHICH IS LIKE PAYING OFF YOUR CAR EARLY SO IF WE TAKE THIS NINE MILLION DOLLAR AND APPLY IT TO FUTURE BONDS, IT PAYS THAT DEBT OFF, MILLIONS OF DOLLARS OF SAVINGS TO THE DISTRICT AND TO THE TAXPAYERS. IF YOU LOOK AT THE INTEREST
[00:50:02]
WE'RE PAYING SO IT'S JUST LIKE YOUR CAR PAYMENT OR HOUSE PAYMENT, THE INTEREST FOR THE LAST TWO YEAR ISES IS 20 MILLION-DOLLAR. WE'RE ONLY PAYING $11 IN DEBT SO IF YOU PAID OFF TEN MILLION DOLLAR YOU WOULD SAVE 20 MILLION IN INTEREST.YOU OPENED UP ABOUT THINKER MILLION DOLLARS IN BONDING CAPACITY SO THOSE ARE ALL THINGS THAT JOSH WILL TALK TO YOU ABOUT, BUT I JUST WANTED TO MAKE CERTAIN THAT YOU SEE THE POSITIVE THINGS THAT ARE HAPPENING WITH YOUR DEBT SERVICE.
>> AND FINALLYIVELY I'LL END WITH -- WELL I HAVE ONE MORE SLIDE AFTER THIS.
SO I WANTED TO TALK ABOUT YOUR TAX RATE AND BUDGET CALENDAR. SOME OF THE THINGS THAT WE WILL GO ON SOLVE THROUGH OUR OFFICER AND WITH THE TAX OFFICE WE'LL HAVE FORMS THAT WE HAVE TO SEND IN IN JUNE SO THEY CAN BEGIN PREPARING THE MAXIMUM TAX RATE, ALL THE THINGS THAT HAVE TO HAVE PLESHED. THE JULY 25 IS WHEN WE GET OUR CERTIFIED VALUE AND IF YOU ROOK THERE ON AUGUST 5 IT SAYS IN BLACK AND WHITE TEA WILL RELIES THE MINIMUM MAXIMUM TAX RATE AND THAT ARE WHEN WE'LL HAVE IT, WE HAVE TO HAVE A BEEN AND TAX RATE ADOPTED BY SEPTEMBER 1 SO YOU HAVE THE BOARD MEETING AUGUST 24 AND I WOULD REALLY AGAIN, IT'S NOT MY D PLEASURE OF THE BOARD AND THE SUPERINTENDENT, TO WORK ON REFINING THE BUDGET DEPARTMENTALLY AS WELL AS STAFFING, AND THEN WITH THE DATA HERE IT'S MY PREFERENCE THAT -- SO AGAIN I'M GOING TO REMIND YOU THAT LAST YEAR WE MET IN JULY AND THERE WAS A LITTLE BIT OFFERING ON WHY WE WERE USING AN ESTIMATED TAX RATE. IF YOU DO IT BEFORE THOSE DATES IT'S SUBJECT TO CHANGE AND IF IT'S HIGH HIGHER YOU HAVE TO ADOPT. IT HAS TO BE A QUARTER PAGE, IT HAS TO BE 18-POINT FONT, IT HAS TO BE DONE NO FURTHER OUT THAN 30 DAYS CAN NO LESS THAN TEN DAYSES IN FROM YOUR BUDGET HEARING SO WHAT I PREFER TO DO, WHAT HAS WORKED WELL THIS THE PAST IS TO DO A BUDGET WORK SHEP LIKE THIS WHERE WE COME BACK AND WE HAVE IT DONE AFTER AUGUST 5 SO THAT YOU CAN SEE THE REAL NUMBERS OF WHAT YOU THINK HAVE A BUDGET WORKSHOP AT THAT TIME.
THEN PUBLISH, DO YOUR PUBLICATION IN LATE AUGUST. IF YOU CAN GET I WOULD DONE SOMETIME BETWEEN THE 25TH AND 28TH IT GIVES YOU TIME TO HAVE A WORKSHOP AND GET YOUR BUDGET ADOPTED AND THERE'S LESS CONFUSION BECAUSE ANYTHING YOU DO IN JULY IS GOING TO BE AN ESTIMATE. AND FINALLY THIS IS TIE IT TOGETHER.
THERE'S NOTHING ON THIS SLIDE HERE THAT YOU'VE NOT SEEN, JUST PUTS IT ALL IN ONE FORMAT.
YOU HAVE ALL YOUR REVENUE SOURCES AND WHAT YOUR ESTIMATED EXPENSES ARE.
WE'RE ALWAYS GOING TO TRY TO PREDICT A BALANCED BUDGET AND AGAIN IT IS PRELIMINARY WITH EVERYTHING GOING ON. THE DEBT SERVICE YOU'RE LOOKING AT $10 MILLION IN EXCESS REVENUE AND YOUR GENERAL FUND YOU'RE SHOWING A DEFICIT BUDGET BASED ON THE PARENT THAT IS WE HAVE IN FRONT OF US AT THIS TIME OF ABOUT $3 MILLION. AGAIN I'LL TELL YOU THIS IS A GOOD TIME TO REMIND YOU THAT IN OUR CURRENT BUDGET I DON'T THINK THAT WE'LL HIT ALL OF OUR EXPENDITURES AND I THINK WE'LL SPEND LESS MONEY THAN WHAT WE HAVE BUDGETED SOON WE'RE GOING TO HAVE A 4.4 MILLION DOLLAR RECEIVE DID I THINK IT WILL BE CLOSER TO TWO-POINT FLEE MILLION DOLLARS SO THAT CAN BE MADE UP. JUST KNEW IT HAVE IT WAS THE END. SO THAT'S THAT CONCLUDES MY PRESENTATION AND I'LL TAKE MY
FINAL THOUGHTS OR QUESTIONS YOU MAY HAVE. >> I DO HAVE A -- GO BACK TO THE
CURRENT BUDGET, SLIDE TWO OR THREE. >>> I NOTICE ON A FEW OF THESE
[00:55:04]
ITEMS OUR YEAR TOE DATE AND PRIOR YEAR TO DATE IS PLUS TEN PERCENT ON SOME OF THIS MANY. I THINK YOU ADDRESSED SOME OF THEM DURING OUR LAST BOARD MEETING BUT THERE WAS ONE, LIKE THE DEBT SERVICE, THAT MAKES SENSE THOUSAND, WENT FROM 93 PERCENT TO 57 LAST YEAR AT THIS POINT. THE OTHER IS THE SECURITY MONITORING SERVICES, WE'RE AT SEVEN PERCENT YEAR THE DATE, PREVIOUSLY WE WERE AT 60 PERCENT AROUND THE TIME. IS THERE AN EXPLAINS OF THAT DIFFERENCE?>> YOUR SECURITY. >> 7.55 NOW AND LAST YEAR THIS TIME WE WERE AT 60.03.
>> WITHOUT PULLING IT SPECIFICALLY WE SHOULD BE MATH WE'RE EIGHT MONTHS AGO IN SO ABOUT 66, 67 PERCENT SO NEGATIVE THAT'S NO WAY EGREGIOUS TO THAT DOESN'T CONCERN ME SO MUCH.
SO SOME OF THIS HAS TO DO WITH IF -- I'VE LEARNED THAT THINGS HAVE BEEN DONE ON A CHECK REQUEST. IF IT DOESN'T DONE ON A REQUISITION, IF THERE'S NOT AN ENCOUPLE BARRAGES DONE, SOMETHING MAY HAVE BEEN ORDERED OR BEEN STAGED TO BE COMPLETED BUT NOT BUCKETED BUT THERE'S BEEN A BIG PUSH TO DO THAT BETTER SO I THINK WE'RE DOING A BETTER JOB OF IDENTIFYING THOSE EXPENSES. THE OTHER THING IS IT'S EASIER WHEN YOU LOOK AT THIS AS PAYROLL BECAUSE PAYROLL SHOULD HIT ON THE NUMBERS.
WHEN YOU HAVE OTHER THINGS IN HERE SO SAY FOR INSTANCE, SECURITY CAMERAS SO IF WE HAD SECURITY CAMERAS THAT WE BOUGHT THAT WERE BUDGETED AND THEY WAITED TO DO THAT AUGUST OR JULY OF LAST YEAR BUT WERE PRO-ACTIVE AND SPENT THAT NOW THAT'S WHY I SHOW MORE NOR PERCENTAGE THAN COMPARED TO LAST YEAR. THOSE WERE THE THINGS THAT WOULD AFFECT THAT BUT THAT'S WHY THOSE PERCENTAGES ARE ON HERE, I LIKE THE WAY YOU THINK. IS THERE ANYTHING MAINLY IS IT PAYROLL, IS IT SOMETHING THAT'S GOING TO PUT US OVER BECAUSE IF IT'S A ONE TIME OBSERVATION
PENSION IT'S NOT BE THE PUT US OVER. >> ALL RIGHT.
THIRD-DEGREE. >> I HAVE A QUESTION. I PRETTY GOOD IF IT'S BEEN STATED BUT WHAT I WOULD LIKE TO KNOW IS GOING BACK TO THE DEBT SERVICES WHAT WOULD YOU STATE WOULD BE THE NUMBER ONE EXPENDITURE THAT IS CREATING THE DIFFERENCE BETWEEN LAST JEER AND THIS YEAR THAT'S ARE OCCURRING, GOING FROM 57 TO 93? I APOLOGIZE IF YOU STATEED
ALREADY. >> WHEN YOU SAY 57, 93. I'M SORRY I'M LOOKING AT THE DEBT SERVICE SLIDE. I APOLOGIZE. I GOT YOU.
SO WHEN YOU SEE -- THIS MAKES PERFECT SENSE THE ME NOW. IF YOU LOOK AT THE FAR LEFT THERE THAT'S ACTUALLY GENERAL FUND DEBT SERVICE SO THIS IS DIFFERENT THAN -- SO THE DEBT SERVICE THEY TALKED ABOUT THAT'S 25 MILLION, THIS ONE, THAT'S TRUE BOND FUNDS THAT'S -- I'M GOING TO GET NERDY, BUT WE TALK ABOUT 199 GENERAL FUND THIS DEBT SERVICE, THE BIG MONEY IS FOR BONDS. THIS IS A SMALL PORTION OF WHAT WE DO AND IT'S PAID OUT OF OUR GENERAL FUND AND IT'S SUBSIDIZED THROUGH THE GOVERNMENT SENSE SUSPECTS US BACK A PORTION OF OUR INTEREST SO THIS TELLS ME WE PAID OUR PORTION AND WE GET A REFUND FROM THEM AND THEY
HAVEN'T SETTLEMENT US OUR REFUN. >> THANK YOU. >> [INDISCERNIBLE] THAT HAVE TO
PAY FOR LIVING ROOM AND WHAT DOES THE LUNCH COST? >> BEING THAT WE HAVE ALMOST 90 PERCENT OF OUR STUDENTS ON FREE AND REDUCED LUNCH, WE HAVE THE HIGHEST POVERTY RATE IN OUR REGION AND AGAIN THE AMOUNT THAT LURCHES -- I HAVEN'T BOUGHT ONE IN A WHILE SO I HAVE TO ASK.
>> I KNOW NEXT YEAR IT'S A DOLLAR NINE FIRE SO IT'S STILL PRETTY RELATEDDED SO I THINK IT'S $1.95 NEXT YEAR, THE OTHER PORTION IS ALL THE CAMPUSES EAT FREE BREAKFAST AND LUNCH EXCEPT
[01:00:04]
FOR THE HIGH SCHOOL AND THAT'S WHAT THE DOCTOR WAS TALKING ABOUT IS NEXT YEAR WE HOPE TO FILE CE. AND WE HAVE THE PASS THE AUDIT AND IF WE FILE BY JULY 1 WE CAN MOVE THE HIGH SCHOOL TO CE.P. AS WELL SO THAT'S THE GOAL AND WHEN I SAY HIGH SCHOOL THAT'S NINE THROUGH 12 SO THOSE ARE THE ONLY TWO CAMPUSES THAT TO DON'T EAT FREE.>> I JUST DON'T LIKE THE FOOD SHAMING THAT'S HAPPENING. >> SO IS THAT GOOD OR BAD?
>> FOR THEM THE EAT FREE? WE HAVE THE HIGHEST POVERTY RATE IN THIS REGION, SO IT'S A GOOD THING, BECAUSE THERE ARE OTHER COUNTIES IN REGION TEN SO I SHOULD SAY DALLAS COUNTY.
>> IT'S DEFINITELY A WORTHWHILE WHEN YOU ONLY HAVE A PORTION OF YOUR KIDS THAT AREN'T ALLOWED TO EAT FREE IT DOES CREATE SOME INCHEMICALTIES IN MY OPINION. THERE WOULD BE A COST TO THE DISTRICT AND WHEN I SAY COST WE WOULD LOSE A LITTLE BIT OF REVENUE BUT WHEN WE'RE PUTTING MONEY INTO FOOD SERVICE FUND BALANCE BUT WE HAVE KIDS THAT AREN'T EATING FREE THAT'S OUT OF
ALIGNMENT FOR VALUES. >> THERE'S NO WAY TO TRACK IT -- >> NO, SIR, THERE'S PAPERWORK THAT HAS TO BE FILLED OUT. EVERY PARENT FILLS OUT AN APPLICATION FOR THAT.
NOW, WITH THE CEP THAT'S ONE TO HAVE THINGS -- WE STILL HAVE TO DO IDENTIFYING AND THAT'S ANOTHER CONCERN IS THAT IT CAN AFFECT OUR FEDERAL PROGRAMS BUT I'VE DONE THIS IN A PREVIOUS DISTRICT AND IT CAN DEFINITELY BE DONE WHERE IT'S BENEFICIAL TO ALL PARTS.
>> AS RELATES TO THE CREDIT THAT YOU'RE STATING WE'RE LOOKING TO GET THAT FROM THE FOOD SERVICES,
THE CIRCUMSTANCES 600,000, CORRECT? >> IT'S MORE THAN CIRCUMSTANCES
HUNDRED THOUSAND. MILLIONS. >> BASSED ON THE NEW FOOD
SERVICE PROGRAM ARE WE NOT ABLE THE USE THAT MONEY? >> THE ANSWER TO BOTH QUESTIONS WE HAVE A FUND BALANCE AND WE PAY THE COMPANY TO RUN THE PROGRAM.
SO DELAY CHARGE THEY CHARGE US A DOLLAR 95 A MEAL SO THEY BILL US FOR HOW FAR MANY MEALS THEY SERVE AT A SET RATE IS WE PAY THEM TO DO THAT. BECAUSE THE CLAIMS DON'T MATCH THE NUMBERS THAT WE'VE SENT IN, THAT'S WHAT'S CREATED THE TRIGGER FOR THE AUDIT AND THAT'S WHY EVERYTHING IS ON HOLD FOR REIMBURSE. ONE THAT'S CLEARED UP THE FUNDS WILL BE RELEASED AND EVERY MONTH WE SHOULD HAVE A SYSTEM IN PLACE WHERE THE CLAIMS MATCH, WE SEND THOSE IN AND YOU WOULD TRACK THIS REVENUE THE SAME WAY. AS FAR AS THE FLOW THE EMPLOYEES CAN THEIR PAY WE DON'T ISSUE THEIR PAYROLL, BUT AS MISS THORN MENTIONED THE LAST TIME SHE WAS HERE FOR THE PRESENTATION WE AWARDED THE CONTRACTOR NONE OF THE EMPLOYEE THAT ARE WITH THE OTHER COMPANY THEY ARE BEING RECRUITED TO WORK FOR THE NEW COMPANY AND NONE OF THEM WILLING
TAKE A PAY CUT AND THEY DO A RETENTION PROGRAM AS WELL. >> I REMEMBER THAT CONVERSATION BUT I GUESS GOING BACK DO AS FAR AS THE CHILDREN IS CONCERNED WILL THE RUSSIAN.
, DO YOU THINK THAT WOULD ALLOW ER FOR US TO TAKE CARE OF NINE THROUGH 12?
>> IT WOULD BE TOUGH BUT -- THAT'S A GOOD QUESTION, IT WOULD HAVE TO BE LOOKED AT BECAUSE WE WE HAVE KIDS THAT ARE THE SECONDARY LEVEL THAT ARE FREE SO THAT'S ARE NUMBERS THAT CAN BE RUN IF WE GET OUR REIMBURSEMENTS IN THE. HOWEVER WE PASS OUR AUDIT AND
GET OUR REIMBURSEMENTS IN WE DON'T HAVE TO DO THAT ANYWAY. >> THANK YOU.
>> ANY OTHER QUESTIONS? OKAY, THANK YOU MR. GARRISON. >> ONE THING WE FAILED TO DO
[01:05:05]
WERE THERE ANY SUBSTANCE COMMUNICATIONS? >> NOT TO MY KNOWLEDGE.
>> OKAY. AT THIS TIME WE'LL ADJOURN. THE TIME IS
* This transcript was compiled from uncorrected Closed Captioning.