e e e e e e e e e e okay good morning we'll go ahead and get started looks like we have a quorum um we can do introductions you want to start us off faith I'm Faith schrom representing Frank Bar C I'm I'm Joseph Sanchez the Chief Operating Officer Patricia Morales I'm the deputy uh general counsel is this oh it is on Gordon long Hoffer CTA president lean Evans Treasurer Heather Frederick Heather Frederick Chief Financial Officer Sher Brown um representing District 4 and anyone from the public comments well and I just wanted to also mention online we have Miss Lori bino and Mr Ryan Rossy to finalize the the committee thank you um any public comments none so um we have minutes from April 2nd does anybody have any comments on it or could I get a motion to approve the minutes so moveed by faith um second Miss Campbell can you second the motion oh sorry she didn't hear me Carmen can you second the motion to approve the minutes yes okay thank you all those in favor anybody oppose motion carries unanimously and then I'll turn it over to Heather all right well today um is our our final budget uh committee and we're going to give an overview of uh the general fund budget just some updates from our last meeting so with the general fund uh we didn't make many changes this year especially with the sunsetting of Esser we want wanted to take some time to absorb um those additional costs from Esser uh that were necessary um and then uh and so we were we trying to really minimize the changes waiting to determine what the the final impact of what the vouchers will be on enrollment um um as well well as Charter School enrollment uh so we did try to keep it pretty much as status quo as we could within the general fund so we didn't have a lot of changes today is really going to fa focus on the capital budget uh because we haven't really presented anything to the committee on the capital budget so we do have the uh Capital the now 12year Capital plan and it is balanced and so you're going to hear a lot from Miss Evans today on the the capital budget right so with the the general fund the general fund B general fund budget is still balanced and we do have some additional funds left over uh for salary and benefit Reserve there is one change from our last meeting uh we are adding in a pilot to change how we fund Athletics within the district um this came up recently as part of the audit committee um Athletics is uh funded strictly by uh parents par through fundraising and it's all it does not um come through the operating budget at all it's all funded through internal Accounts at the school sites there have been some um questions raised from from some constituents saying that some of our schools are charging a significant amount for fair share and fair share is the amount that parents are charged in order to uh participate in whatever Athletics program so it came up in one of our uh board workshops where one of the board members asked us to look into possibly um changing uh what we do in Palm Beach County comparing us to other districts in the State uh so we went through a whole analysis uh working together with the uh athletics department and we did find that Palm Beach county is really an outlier in terms of how we operate our Athletics our schools are you know independent and they're allowed to do what pretty much whatever they want um so so changing that what we're going to do is we're proposing to centralize all of Athletics um all of the payments would be made um from the district each of the schools would have a a specific budget set aside and that would ensure that all sports including cheerleading as well as band would receive all the same resources um a lot of the sports um might not have as much participation so they might have older uniforms or they might have to use uniforms from another sport so we want to make sure that there's Equity uh so we would have a standard set of uniforms for all of the um athletic programs um standard colors um for all of the sports within the schools uh and it would all be managed through our uh athletics department this is a significant change and so it's not one that we're recommending that we Implement uh districtwide that we first need to Pilot it and we're going to start with four schools uh the reason being is that many of the high schools already have contracts in place you with companies like under arour and Nike so we would have to work through those challenges with the legal department you know some of those contracts we might have to grandfather in so it might take you know time um to to um completely roll out for example standard set of uniforms we'd also have to work on um doing an RF for a districtwide uh uh program for you know with Under Armour or Nike um so that we could really leverage uh getting a lower cost but that's going to take time and not something that we could do and have ready for the start of school uh so we really want to make sure that this works we know that each school does operate a little differently uh so we wanted to pick four schools that are really representative of all the schools so we could work through all the potential issues um and make sure that we have all the proper procedures and controls in place and so starting off the impact for the four schools is estimated to be $340,000 the district would be keeping all of the gate fees we would be setting the fees we would be keeping all of the gate fees that would help to offset the cost uh we believe that the impact if we were to implement at all of the high schools which would and it would also include Middle School sports as well uh we believe the impact would be approximately $2 million to the district um so that is a change that we're making in next year's budget so it's just the impact of the four schools at 340,000 um the highlights of of the budget um that we already presented in our last meeting uh the base student allocation is increasing 3.38% or $181 that does include an amount set aside for uh teacher compensation um because now the teacher compensation is within the base student allocation and that's the state just saying you need to make sure that you at least um Pay Teachers a certain amount and so they've set aside approximately uh $12 million um for that we have to spend within the base student allocation for teacher pay uh the our per student funding in total is increasing $210 or 2.27% uh which is a little bit lower than the state wide average and that's why because we had a slight adjustment to our district U comparable wage factor which went down slightly uh this year we are were able to set aside $38 million for salary and benefits reserve and I do have um some good news because we did receive the tax values yesterday and the tax values came in higher than what was projected so what was projected was three and a half percent they came in at 5.9% so now we've been able to set aside $42 million for salary and benefits other than the contractual issues are there issues related to the um change in funding the contractual yeah one yeah one more no one more time it'll be right around there yeah yep y you got it so other than contractual and the fact that it's going to be $20 million are there two million two oh okay I thought you said 22 no two two million okay so that makes a difference um are there issues around the um changing of funding for sports and a Athletics um what do you mean if are there any well I guess um there's some inequities now um and I I just wonder if there's some competition among schools or if there are things that will maintain the inequities or there schools would be still allowed to uh retain their gate fee not their gate fees their uh concession fees as well as parking fees so if they're collecting anything for parking or concession they would be allowed to uh keep those um the schools would also still be allowed to fundraise so what the district would be providing would just be what is needed for that particular sport uh we would have a committee U that includes uh athletic directors that would establish a list of standard equipment um and then if and uniforms but we wouldn't be buying the fancy jackets or anything like that so the schools would have to raise for anything that was the once that they wanted um and then also for any of the games that would not be the standard set of um games that you would play Within the season so yes there could still potentially be some in inequities but at least every school would be receiving what they need for that particular sport because right now there is inequity in that schools like I said that we have some schools that are borrowing uniforms from another sport because they don't have the funds they don't generate enough funds to purchase them now so we want to make sure that you know every every sport is is treated in the exact same way and receives what they need to truly participate in that Sport and will there be coaches from those um lesser Sports on the committee well we're working on developing the committee now um so we did uh meet with the a small group of principles first um just to get their feedback as to whether there was interest they were really excited about the potential um so then we met with um all the District High School principles and for the most part the principles were very um excited about the opportunity for the district to take on uh this role because it is difficult uh for them to manage all of the Athletics at their school sites and so that's why we want to make sure that it is going to be successful and why we wanted to start with a pilot and it's it's volunt so we asked for four schools I believe we had 12 that volunteered and so they're waiting now they they want to know who are the four schools that were chosen so we haven't released it yet but we do you're not going to tell us first no we're not going to no that we're still going to keep that quiet but I was I spoke with the chief academic officer yesterday she said they want to know Heather when are we going to release it so they're very excited they are TR they're really excited about this potential change but I know that there are a lot of people including the Inspector General as well as board members who would like us to move a lot quicker but we need to make sure we're going to be successful and that's why I think it's better to start with a pilot So when you say four representative Schools are they four schools uh not asking you to tell us um that are in need or does it matter we have a combination we wanted to make sure we had a title one school a non-title one school a school that has a Powerhouse Sports program so we wanted to get a good representative sample of all the schools thank you so that's why we're selecting we're going to select them to make sure that we get one of each thank you so this was an overview which I presented at the at our last meeting was the fy2 forecast we had $38 million you know even including that change of the 340,000 um so it was 37 7 million I rounded that up to 38 million available for salary and benefits Reserve but that is now uh 42 million based on the 56 million has now been increased by $4 million as a result of the um the higher property values I presented this slide earlier um to one of our earlier uh budget uh advisory committee workshops uh but it is recently updated uh by the Census Bureau um so we did move up one spot from 47 to 46th in the nation in per pupil spend um that still shows that we are well below the national a average when you add in our referendum our 1 mil referendum that does move us up from 46th place to 39th place it ties us with uh North Carolina you know the exact U the exact amount as North Carolina um so we are very fortunate that we have the support of the voter in Palm Beach County U that to help to provide to uh supplement the funds that we receive from the state uh so that we can provide additional re resources as well as additional um uh compensation for our teachers um to improve U Recruitment and and retentions of good highquality uh teachers U we also provide mental health professionals in every every school and we also supplement our uh security initiatives as well the financial condition ratio was also updated recently U so we have the FY 23 information U Palm Beach is the in the orange uh so you can see how we during the Great Recession uh during 2010 to 2012 how we bumped up our fund balance and then how it was slowly spent down uh we are um continuing on that trajectory um through um the because of the funds as well so you can see our funding has our financial condition ratio has increased um from 9 to 12% um and we're averaging at about 12% right now we have to make sure that those are one-time funds um and that's how we've been able to accumulate to increase our fund balance and we have to make sure to use those onetime use the one-time funds for one-time needs and not recurring initiatives uh if we go and look at Hillsboro County Hillsboro is in the purple you can see Hillsboro at one point had the highest uh fund balance in the state and uh they unfortunately started using uh one-time funds for recurring initiatives it was actually for um teacher compensation um because they were a part of a grant program that grant program ended up going away they didn't make adjustments uh to their salary at the same time they had declining enrollment and they weren't making adjustments and you can see how quickly that funding uh dropped so they went down almost to the point of financial emergency um they were really truly only saved because of the Esser funds and you can see they did have a big spike this year um but that spike is primarily I'm I'm certain related to those Federal Sesser dollars um I also wanted to highlight uh Broward County because Broward County has been in the the news uh recently um especially of because they decided to use a grant money so one-time money for uh teacher compensation as well you can see Broward stayed pretty low uh on what their uh Financial condition Ratio or which is really their their fund balance a good portion of their fund balance and you can see that they jumped up to 5% as a high and that was as a result of uh Esser funds but they've dropped down to 3 uh 6% so they are at risk for being in financial emergency if they drop below 3% if their financial condition ratio drops below 3% they're at risk for the state coming in and taking them over for being in financial emergency so you need to be very careful about uh we need to be very careful to use these one-time funds for one-time initiatives and not recurring initiatives so that's the update on the general fund budget if there are any questions um I can answer those and then I will pass it over to Le I took the mouse okay okay good morning everyone um we've got a lot to go over with the capital plan we're going to go over it in great detail today so hang with me and if you get to the point where you need a break just speak up and we'll take one so we're going to start off with just a summary the capital plan um is a requirement from the state State we have to adopt a 5-year Capital plan every year um so we always start with the old plan and then make updates annually that's how it works um so it's required to do a five-year plan we extended it to 10 years we actually did 11 years in 2016 to incorporate the full sales tax referendum and then have kept it at 10 once we did the work to get to 10 years you might as well keep it there and just keep going it's a great planning tool um there's a lot of um estimates when you get out that far as to what we're going to need the it folks will frequently tell me they don't know what computers are going to look like in 10 years uh but we know we're going to need money for those items so this year we're extending it out to 12 years um again to go out for the full sales tax referendum the one that will be going to the voters in November uh money will come in starting in 2026 and it run through um Midway through 30 2036 so the capital plant is a planning tool it's not a hard the first year is the capital budget but after that is planning and we revise it every year based on financial conditions based on conditions of facilities based on needs and the goals of the board the Strategic plans so we we update it every year and as soon as we're done with this and we adopt the budget we'll start the planning process for next year so it's really a continuous process um but we are balanced fy2 and the 12-year plan is fully balanced um I do need to incorporate the estimated taxable values that came in that's an additional 9.5 million in the first year um it's a lesser increase going out in the full in the other years but we'll be adding that in before we get to the tenative adoption as well as you know Final close that there's a lot of changes happen at the end of each fiscal year so what's included in the capital plan um high level it's construction projects and there's new schools modernizations additions and remodeling for facilities we have a couple of buckets there we have um what we call Planned maintenance now we're going to talk a little bit about that um facility renewals is what is in the current sales tax that is catching up on deferred maintenance um facility improvements and side acquisition and then we have furniture and Equipment there's actually more than these three but these are three representative projects um furniture replacement musical instruments and the AED devices that are scattered throughout all of our facilities for technology we have two big buckets we have it information technology which is the infrastructure and buying the computers for the schools and then we have classroom technology and that's the large flat panels in each classroom the projectors the document Imaging cameras um all the things the teachers need to teach so we we put them in two different buckets and we also do the maintenance of all the technology systems and software such as our financial system our student information system and cyber security is a is a big component that that we have to pay a lot of attention to these days um we have security projects Transportation which is school buses we call it yellow Fleet and then the support vehicles of the White Fleet as well as contracted Transportation so we hire companies to help um transport the students um Debt Service we issue debt to build new new schools and modernizations and additions so we have to continue to make those principal and interest payments we also take care of property and flood insurance out of the capital budget we have some money and reserves and the big change this year really it was was last year but continuing this year is the transfers to Charter Schools so we'll talk more about that because I'm going to get into the capital plan in just a minute so before you leave this chart can how do you differentiate between construction projects and facility projects construction is building so we're building new schools building additions doing major remodeling the other maintenance projects and when we get in there I'm going to show you line by line so you'll be able to see what the differences are it's a lot of replacing roofs replacing air conditioners fixing leaking pipes so it's more of the day-to-day maintenance and then improvements are things like putting in digital Marques or artificial turf or some of the other things that it's not the basic maintenance but it's really improving the facility to give it a better educational experience for the students so it was modernizations that modernizations is um when we're replacing a school so we recently replaced Verity and Addison Meisner we went in and either tear the whole school down and rebuild it from the ground up or we rebuild part of it and then renovate part of it and when we do the renovation we take it down to the concrete block and it looks like a brand new school and if we get through which they're going through facilities I'm hoping to answer all your questions today but if I don't do it Mr Sanchez is here and he'll be able to answer any questions I can't so I may throw it to him some point today it's always a test to see how much I know when I do these meetings the other question is on technology and I read that a lot of schools are having trouble with not necessarily Palm Beach County Schools but with maintaining the um U computer for every student that we started during Co yeah we've got that we still have that in place um and we're actually upgrading um through the proposed referendum we're updating the so that we touch screens so we continue every five years those get replaced um and we enhance them and make them better based on the newest technology and what's available um the biggest thing that was surprising is the break the breakage of the computers the kids will put a pencil right here and close it and then the screen is broken um once that happens and the kids see it they learn not to do it very quickly so we hope the break fix will be less moving forward but we have money in the budget to cover that as well and I believe the reason why it is easier for us is because we already had it in our Capital plan to go to onet toone devices before the pandemic and so all we did was move up the purchase we just moved it up we actually didn't even use any of our Sesser dollars because we already had it built into our Capital plan as well as the continued refresh of those um computers uh so now we are with the new sales tax uh referendum we are proposing uh the use of touch uh touchscreen laptops for all the students as we refresh them um but we do anticipate the break fix you know just to let you know it's actually going to be a little bit higher because with the touch screens they cost more money um so we are going to have to build in a little bit more for the break fix uh for the the touchcreen but I believe that's why we're not having the issues is we already plan to go to one: one prior to co whereas a lot of went to one: one during covid and they use those Federal Esser dollars for the purchase of those those devices so it makes it to continue it and moving it up just to add to that we had it in the plan um it was being done over two years was going to be over a couple of years but I had the money in the budget and was planning to carry forward carry it forward and use it the next year so we actually had the money in the bank ready to do that purchase so we were able to expedite it very easily thank you okay so these are the construction projects um and these are the the projects that are either currently underway or planned in the future and we have dates for most of them um and I'm not going to go through every one of these the I'm going to highlight the things that have changed so the we've added in River Beach area high school um and we've added in Western communities area elementary school that is going to be built on land that was donated by the city of West Lake so we know where that school is going to be and it'll be we'll be starting construction on both of these in the the next couple of years um I've added in normally for construction and it's a little bit of a misnomer how I've got this set up construction is usually the addition remodeling projects the replacement or modernizations in new schools um we have a section under facilities that we don't call construction it's all the Deferred maintenance projects they're called facility renewal projects however one of those projects is really turned into a modernization and that's um Inlet Grove will be moving into Lincoln it's still being funded as a facility renewal project that's in the current sales tax but it is building a new building so when I went through this with Mr Sanchez he was saying we really do need to show that so that people understand what we're doing there we did the same thing at Odyssey Middle School for southtech a few years ago so we we've done it before but those are a little different so I wanted to highlight those um the projects that are in our current referendum are in italic so you can see a couple of those scattered throughout this and the new projects are in red okay so the capital plan is balanced um the significant updates and this is I'm I want to get through this next slide before we flip over to the actual line by line review of the capital plan um the biggest changes is adding two more years in to make it 12 years we've added in the FY 26 referendum proceeds um and that money comes in we get half of the funding in 2026 and then if you see all of it in FY 27 and then non-construction facilities projects have been broken out into two categories so we used to have construction and then we had other was called other facility projects and now we broke that into two separate groups one is planned maintenance which is aligning with the guidelines from Council of great City Schools um they recommend that we spend between two and 4% of the replacement value of our facilities every year on ongoing maintenance so we wanted to Cluster those together so that we can make sure we've got that alignment and we can monitor to make sure we're compliance with that recommendation and a lot of the sales tax money proposed sales tax would be going into that bucket so we wanted to make sure we could track it and then the other line is the facility improvements that we talked about and I'll show you examples of those when we go through the capital plan so it's really plan maintenance of our existing facilities and then improvements and what we're doing to make them better so you fix a roof versus adding in artificial turf or um LED projectors and there's a lot of them and I'm using those two as examples but I'll show you the others in a minute um we've added in the two new schools the River Beach High School and the Western communities Elementary School and if you recall from prior years the contingency reserve was very large when we got out to 10 years and it's even bigger with 12 years those dollars really are not a reserve they needed to be allocated to projects and we did that this year we've pushed them into plan maintenance and facility um improvements um to get that money where it needs to be instead of showing a big giant Reserve that really wasn't accurate we've just pushed it up there and I'll point that out as well you can see it in the capital plan when we get through we get there yeah yeah we'll get you the sales tax after okay I think I yeah I can move it with this okay so we're going to start off with revenues and these are the primary funding sources we have to deal with and the capital plan throughout all 10 pages it's fy2 and the 25 includes carryover in the projected carry forward as of the day we ran this report which I think was May 26th so any money that has not been spent it it could be encumbered it could be in a purchase order but money we expect to roll forward into the future year is included in fy2 26 27 28 29 one year at a time and then years 30 through 36 so this is a seven-year grouping is clustered together and then we have a total so that's consistent throughout about the document so C ands that stands for Capital outlay and Debt Service this is funding from the state of Florida is this is the only state fund State funding we receive for Capital so it's averaging about six million a year they do not give us projections so that's why it shows up as the exact same number every year sometimes it goes up a little bit sometimes it goes down a little bit but it's pretty close to this number and we use that for ongoing maintenance um local Capital Improvement that is the local property taxes we Levy 1.5 Ms um and that is the biggest funding source other than fund balance um that in in the plan the fund balance is what we is the total carry forward and this includes funding for construction projects that are just getting started it includes sales tax proceeds for projects that are just getting started so this money projected fund balance is all included in the projects that you'll see as we go through um the rest of the the um document impact fees this is money that comes from the county the county administers the impact fee program and it's when they were building when there's a new house being built they have to pay an impact fee and part of it runs to the school district part of it goes to um for roads part of it goes for the sheriff's department some goes to fire department but there's a school impact fee com that comes to us and we get estimates from the county um that's one Revenue source that I don't know if it's going to continue at this level at some point it's going to slow down um but these were numbers and estimates that we got from the county and we'll be adjusting that every year as we do the capital plan interest income um right now the if you ask me today the interest income we have in fy2 24 is a lot higher than this um we expect interest income is going to come down we keep hearing when is the Federal Reserve going to lower rates um I don't know if I did I would be doing something else most likely but um we we honestly don't what it's going to be so this is lower than what we have this year and it's another number that that we adjust every year as we move forward um miscellaneous local Revenue this is actually proceeds from rental of a facility that we have that we rent and most likely that will go away because I think that building is going to be the site is going to be near the New River Beach High School but I need to verify that there's there's a school that we're getting a church we get at least revenue from so this $150,000 it's there for this year and maybe part of next year and then most likely it's going to go away I'm just not sure of that so we've left it in here for now um certificates of participation this is our main way of borrowing um we call them cops and this is when this is the money coming in for projects that we're planning to build and finance with cops so we've not borrowed this money yet we borrow it once we know exactly how much we'll be spending on each School sales tax revenue this is our current sales tax and it's going to end end in December of 2025 the last money would come in in March of 2026 so it is less than what we have in 2025 um because it's a half of a Year's worth of Revenue and then sales tax revenue to is the proposed referendum that will be going to the ballot in November and when we get into the projects which starts on the next slide you'll see ST which is projects funded out the current sales tax xt2 is the proposed sales tax so I couldn't think of a better way of ordering it so it's just St and st2 um and right now we've got this budgeted it's half a year for the first year and half for the final year because it starts in January and our fiscal year starts in July so we have a half a allocation the first year and the last and then it's we're estimating $2 billion so it's $200 million a year so that's the total revenues and it's 11.4 billion dollars over the 11 over the 12E window so it's a big giant number remember it's spread across a lot of years and a lot of it D the double normal is in the carry forward so here we go these are all the construction projects and we're starting off with additions and remodelings I'm not going to go through each one of these because I think they're self-explanatory I'm going to point out a couple things that that might seem odd to you when you look at say um Del full service you'll see there's four lines there that say Del full service Del full service Phase 2 is a new project that's just getting started with a $20 million budget um the other ones we broke these projects out so dely full service we hire one contractor to do the work but we have a a law in Florida that requires us to stay within a cost a maximum cost per student station we're not allowed to spend more than that when we build the budgets there is a waiver in place with the state right now that says there's no penalties for it but we still have to track it and cost per student station only applies to new construction so if you're building a new building or you're building an addition you have to report on it if it's a renovation you don't so rather than at the end of the day trying to break that out we have the contractors break it out from the very beginning we break it out and we report to the board what we expect to spend and it allows us to make sure that we're monitoring that as we go through the construction Pro process so you'll see three lines when we award it one of them was a modular we moved some Modells onto the campus and then we renovated the gymnasium and we built a new building so when we look at it from the construction standpoint they combined those three projects together and man them manage them as one but on the finance side and for all the bills the purchase orders we break them out so you'll see that again with Roosevelt you'll see it some more with modernizations on the next slide but other than that these pretty much are self-explanatory anything that's a core renovation or expansion those are projects where we built a classroom Edition 10 or 15 years ago we didn't make the cafeteria an office and media centers bigger um so the core it was a challenge for the schools to operate they were doing four and five lunches I mean it's just difficult to manage the school so we're going back and expanding the cafeteria the kitchen just reworking the core of the school so you'll see I think eight or nine of them in here um some of them are wrapping up some of them are still getting started so we have them going out as far as 2028 for construction so those are layered through the capital plan um you'll see a couple of things that are for demolition we're going to tear down the old Adult Ed site um we've already completed the demo of the old pla site but we still I don't think we've paid all the bills yet so there's still a lot of money there so it still shows up but that's the most of the additions and remodeling and then we move into the modernization and replacement schools and here again you see Grove Park has three lines we had a line to fund the Portables at the holding campus where they were temporarily located we had one for renovating the media center and one for building the new buildings so those three get clustered together as far as the construction managers are managing are doing but we break them out so this section for modernizations is a lot bigger if I rolled it to single lines you'd have one line for Addison one for Grove Park one for maluca one for northtech one for Pine grve so we we do make this it's very granular because this is how we manage the budgets and most of these are underway we have a couple that have been pushed out a couple of years um the transportation centers we're still doing a lot of Master planning with those and getting those ready to go to construction and then the new schools some of these are open Blue Lake has been open for a couple of years um two years now um Dr W ke Garcia and West Point middle just opened this pass August the others are really design um this one the West acreage area this is being built um with land donated by the developer for ardan so that that one is in the ardan development doesn't have a name yet so we're calling at West acreage area elementary school um these other schools are scheduled further out in the capital plan so that's really all the construction projects that that make sense that this is that's the easy part so let me are getting into the into the weeds so the next one is Debt Service and we've broken these out um this this lease payment is still showing up here because we have money in the budget right now to make the August Debt Service that will be the last equipment lease we're making the final payment on it so that will go away after this budget cycle and then the cops de service is broken into two sections um all the payments related to debt issued prior to March 2017 and those for debt issued after 2017 and that's really important um and the debt issued prior to 2017 the final payments for those happen in 2033 so that is going to go away and eventually we'll just have one line but when we calculate the amount of money we pay to Charter Schools we can back that money out of the calculation before it happens so and when we get to the charter school which thinks on the next page you're going to see that number is a lot higher than you've seen in the past because the amount of money that we get to deduct for Debt Service goes away in this window of time but that's why they're broken out and then we have money in here for site acquisition we've got a new school and sometime next year they're going to be buying land for that school and then reserves um Capital contingency is the primary one we have quite a bit in carry forward and that's probably the level we need to keep it at um things happen you know over the course of the Year there was a a pipe burst and flooded dry fist last year in July and we had to take money out of that to get it repaired before school started it's we have 3 million square fet 30 million square feet of buildings things happen we try to plan the best we can but there's always surprises and that's what those reserves are for and then we do have some money coming in here across the years and in the last seven years that 127 is an average of18 million a year so it's just it's an amount of money it's it's a lot of money for you and I personally that's huge but when you're building doing an 11 billion Capital plan it's actually pretty modest amount to have for reserves um we do have the interest reserve and Debt Service for sales tax um this is the interest earnings on the sales tax to date and then we also have and that number is going up significantly it's going to be 40 million probably by the time we roll into next fiscal year we earned a lot of money on the sales tax this year and it's not showing up in the budget yet but that money is earmarked specifically for the sales tax program um restricted reserves are dollars and interest earnings related to the debt financing those dollars can only be used for projects in each debt financing or to make rebate payments to the IRS because we're earning more interest than we're legally allowed so a lot of that um will probably go away this year too because we'll be recording liabilities and it won't show up as available dollars anymore so that one will probably go away or Shrink significantly and then the sales tax Reserve um this is money that's set aside specifically to deal with the cost escalation of the sales tax projects all the projects are coming in higher than expected um we knew that was going to happen we have a plan for how to manage it we actually moved some sales tax projects into cops financing to free up dollars to deal with the cost escalation because probably the most important thing about this plan is to make sure we finish every project that's on that referendum list so that money is there specifically to do that if there's leftover at the end then we go to the sales tax oversight committee we review what projects would make sense to use that money for what it would make sense and then we take it to the board to amend it um I don't know if that's going to happen or not ask me that in a couple of years I'll be able to answer your question so now we get into I call these required non-construction payments and I'm going to start at the bottom because I'm going to spend more time with the things at the top the property and flood insurance um this is an estimate of what we think it's going to cost um and we'll know what that's going to be annually the cost of in property insurance has been well reported in the news it's going up significantly um so this is an estimate um we do have a cushion in here if there's a required funding reduction that's really a reserve that we do use to deal with anything that pops up with maintenance the funding that's this is transferred over to the general fund and if there's a surprise that we need to spend more money for contracted transportation or there's a surprise related to interior painting of schools this is the relief valve we have to help fund that and then we have charter schools and this is there's two lines here the top one is in the sales tax because we will be sharing um the sales the the proposed sales tax on a per student basis with the charter schools so we've got this broken out it is roughly 10% of it is 10% of the2 billion we're expecting to get um that could go up or down and it will be adjusted and we'll be paying that out um throughout the year um based on when revenues come in and it'll be adjusted based on FTE and then the transfer for Charter Schools this is the portion of the one and a half Mills that we now have to share with Charter Schools it started in FY 24 at 20% of the recommendation after it's adjusted for those Debt Service payments we talked about it goes to 40% in 2025 60% in 26 80% and then 100% in 28 and then once you get to 30 2030 and 2033 that's when you see a big drop off of The Debt Service so a larger amount of money is available to go to Charter Schools so between these two lines we have roughly $950 million budgeted to go to Charter Schools over the 12E window it's a big number I don't understand it but I'll take your word for it yeah it's required by Statute that we have to share harder schools so we have we have a calculation that um actually was developed we had a draft of it of how it do it but doe has provided a calculation and how it works so we're just calculating what the expected property values will be and then we deduct from that the amount of debt service for debt issued prior to 2017 and then what's left is divided on a per student basis and shared with Charters and then we as when the legislation was ped they didn't want to require us to fund 100% of it upfront so they're phasing it in so that's why it started at 20% 40 yeah because they're giving us time to to build it into our budget although it's still we still had it's still a big chunk and it and we still had to plan for it last year the loss of those funds there is a possibility in the legislative session that the legislature could provide money for Charter Schools they did that in FY 24 and if they do that that gets reduced that comes off the top so if for sure well there's no guarantee they're going to build it into the budget every year so we do not have that included in the budget going forward we don't know if it's going to be there if it is then we have a little extra money that comes back to us for that one year and we usually put that into Capital contingency as a reserve and then we can reallocate that later is the student ratio for Charters is that the 10% like how you doing the sales taxt I don't remember now I'm sure I've heard it at one point it's proportional so it's a proportional share and so that's why we're we're using 10% right now um because it's based on Capital FTE this is that that's what's a little different between how we allocate our operating funds to Charter Schools versus Capital uh operating is just based on unweighted FTE District um enrollment as well as Charter for Capital we're using our district what what it's called cofy so Capital outlay FTE uh so we we don't take credit for any of those students that are in Virtual schools um I don't even want to say h school because they don't work through us but if we we have students that are not in a facility they're not included uh Charter Schools though it's just their regular unweighted FTE so it's a little bit of a different uh proportional share um just based on that change and then we do have to update it every year and then in addition to that we'll have a a projected at the beginning of the year but then like what Miss Evan said we will adjust it after the actual October FTE is reported as well as the actual February FTE and then again after we've received the the final certified FTE in August um so we'll make sure it's the exact uh proportional share we will adjust it throughout the year and the other thing is we don't know exactly how much sales tax we're going to get in a given year it could come in higher or come in lower so there's it it's something that will'll be manag actively managing throughout every year okay so that's the required non-construction payments and then we're going to go into the equipment and there's a lot of buckets here I think I pointed out three I pointed out the aeds musical instruments and Furnishings um there's also countywide equipment money set aside for choice and career Ed um AV Equipment This Is the destiny Library System that's managing all the textbooks books and the iPads and all the the technology at the schools um instructional TV that's things they need to keep the TV station up and running updating their cameras we have one I'm bouncing around a little bit but the FTE the FFN for TV and film this is money that the TV station uses also but they're going in and updating the TV stations at the schools and I'm constantly meeting with departments and trying to figure out things that the district should be funding but isn't funding so this is a perfect example we built the TV stations in the schools when we opened them and then a TV crew sent me a picture and it's got the big gigantic monitors that like this instead of the flat screens said okay we've got to fix that so we put money in there and they're updating those TV studios on a regular basis now um so really this is equipment and then the maintenance of the equipment um so the copy machine maintenance districtwide is here um subscription license for the destiny Library System um it it's equipment and maintaining the equipment of the district and facility renewals is the next bucket and this is part of facilities this is the money that's set aside in the current sales tax this should have an st beside it I just realize it needs to have that there but this is um this is money from the sales tax to do facilities department calls it FCA projects they were projects identified in the facility condition assessment it's dealing with deferred maintenance this was spread out going out through 2027 but we've actually expedited move made all the funding available I swapped money in and out of the sales tax Reserve so that this money is available to complete all the projects as facilities ready to do them we want them to be able to move as quickly as they can to get the work done and then we have a section called facility improvements um these are things that are improving the facility it's not maintaining the existing structure but making improvements so 8 compliance this is adding in ramps and stairs when needed um whatever changes are needed and sometimes we know what those are in advance and sometimes we don't it could be a child that moves from an elementary school into a middle school that has a wheelchair and we need to add ramps for them so sometimes we know what it's going to be in advance and sometimes we don't so that's what that that funding is there for athletic facilities and playfields um emergency repairs this is carry forward from the current year I never budget for this going out in the future if there's an emergency repair needed whether it's a tornado touchdown or um there's a broken pipe we fund that from Capital contingency and put it in this line interlocal agreements these are agreements that come up from time to time with other municipalities and as they're approved by the board and we need to put money out there for them we put it in this line so this is what's out there right now again there's nothing out here in the future because I don't know what they're going to be there's only a few things like that in the capital plan where we just have no idea what it's going to be and I'll Point those out as we come across them key boxes is a program project that maintenance is working on to update um every school has a box inside the office with keys and people can check them out we're changing it to where it's got some they scan their badge now so we know who took the keys and when it gets returned so we can track them so it's adding some technology into a very long-standing proc process that we've had in place mares we have money out here to do um digital mares um starting with the high schools and then adding in the other schools um Media Center remodeling that's a program that started several years ago and um we're we're trying to go through and update the high school media centers to where they have what they need to have these days they still have books but they also have a lot of space for collaboration um they have maker space where they're using 3D printers to print and make things it's a lot of Project based learning goes on in these media centers now so we're reconfiguring the furniture within those media centers and upgrading the tech as needed um minor projects if there is anything in the capital plan that is a I call it a holding account for things that might come up it's minor projects minor projects is where we get a phone call that we need to put a shade structure in or or we need to replace stairs at a school that have broken down it's everything that doesn't fit into any of these categories and there's a lot of things that fit into there and there's a lot of money flowing through that account so within minor projects we actually break these down into individual projects that we're tracking but we roll them up for presentation purposes so there there's a group of people that do minor projects and I think they have 200 projects on their list right now um of things that are pending funding that they need to get going and J I get that number right about 200 there's always a lot of things going on there um the needs assessment is money to do facility condition assessments Council of great City Schools recommends we do one of those every five years to review and assess what work needs to be done so we have one underway right now um with some money in 25 and 26 and then there's money coming out in 28 again to get started on another one so um I had a question on Ada and maybe that needs assessment um okay yeah everybody please feel free to interrupt as we go um so your example was if a student moved to a school um and needed a ramp um doesn't every school need to have a ramp for they have ramps to get into them they may not have a r ramp to get into an individual classroom it just depends on what classes they're taking and where they're at okay um it could also be needing to run there could be paths I I've run across this a couple times this year kids walk from one building to another and they walk through the grass well there's a child that has a wheelchair that needs to get there we need to build a new walkway so they can get there so there's all kinds of accommodations it's mostly for students but it's also for staff and the public if we find there's a place and as much as the team tries to plan and build those all into the schools there's things that happen as the schools use them and as the population in the school changes we need to make adjustments just say all all of our spaces are ADA Compliant there's there's probably there may be an issue here or there that um that needs to be addressed in an older school for a restroom or something like that but um there's also special situations where there's um students who have special accommodations and you know one may be maybe a visual issue or maybe the lighting issue or something like that and those those students may move from elementary to a middle school to a high school and those accommodations will have to follow that that child with that special accommodations through the school so that makes sense so the schools are comping but there may be a special need Student right thank you okay any other questions here with facility improvements and if they weren't the needs assessment would pick it up the needs assessment is there to pick up things like that but if it's if it's a student needing special needs we typically find out pretty quickly because the student is having issues and we need to fix them but we have a we have a department the building code Services Department that goes out and does inspections on schools every year and are looking for issues so we're constantly trying to keep up with everything they point out um and that's a comprehensive safety inspection that gets reported to the board once a year I think it's going to the board at this next board meeting okay so these are the facility Improvement section the next one is plan maintenance and remember I said the facility improvements and plan maintenance used to be all clustered together this is the first year we've broken them out and I really hope we've broken them out correctly there may be some changes next year where we realized okay one needed to be in the other bucket and we may need to move it around this is the first time we've had them broken this way um what we've done with planed maintenance is try to capture the things that are um identified in that facility condition assessment of things that we need to do to our schools so the easiest to understand real quickly is air conditioning and um roof replacement everybody knows what they are because they have to do them at their homes too building envelope is really anything on the exterior of the building that seals the building up it could be cocking and um plaster and cocking and painting anything that seals the outside of the building to protect it from the elements um facility renewals these are the same thing is facility room we talked about earlier but these are not funded with sales tax so I've got them over here under planed maintenance um Fire and Life Safety Systems um that's fire alarms it's sprink water sprinklers it's anything that's life safety related um generators are needed to make sure we have battery backup and we're upgrading those right now to include all of the um intercom systems and the new security systems so much of them are running on technology now the card readers those card readers to get into classrooms need to run even if the power goes out and our generators currently aren't set up to do that nor are they wired to work into the generator so we're having to update the generators and update the wiring for all of those um plann maintenance we have a lump sum here actually two one of them is the new sales tax and one is other local funds this is going to get the total amount for plan maintenance to be the amount that we need based on the facility condition assessment that came out so that facility condition assessment is using terminology that is industry standards like substructure and superstructure and conveying and that's not the terminology we have in our Capital plan right now so one of the things we're doing is translating the the facility condition assessment into the terms that our board and the public would understand so right now I've got these as lump sums when we bring this for tentative adoption at the school board it's going to be broken out into all these categories so Mr Sanchez and his team are going to work to help me break those out and put them in the correct buckets and one item that I wanted to highlight on on this slide and and I'm going to have Miss Evans go back back to the the previous slide is a reason why we need the new sales tax is so that we can can we were able to catch up on all that deferred maintenance but now we need to continue to maintain the buildings so that we don't end up in the same situation where we have a backlog of deferred maintenance and buildings that are having issues of a leaking roof which then CA causes mold and then is more expensive to fix we want to make sure that we set aside sufficient funds so that we can properly maintain um our over 30 million square ft of buildings um properly you know that's how students will be able to learn is if in they're in a a safe clean environment um and so half of the sales tax a billion dollars um is going to go for Planned maintenance and that will be supplemented by uh the the millage dollars that we have but the millage dollars aren't enough and so that is why we need the sales tax in order to uh ensure that we can keep our our buildings in top shape um going forward yeah this total I I said it was related to the facility condition assessment it is but it's also tied to the Council of great City Schools recommendation that we should use it be using between two and 4% of our the replacement value of our schools we should be spending that every year on maintenance of our buildings that's what that equates to and the facility condition assessment actually aligned with the recommendations from the Council of great City schools that was a report that the council put put out I believe in 2015 2015 or 16 uh our district is is uh participates in the council great City Schools it's the largest uh consists of the largest urban districts across the country uh Miss Andrews is actually the chair of the Council of great City Schools uh this year I recommended that the council update their report on uh school facilities uh because it it was so useful to be able to report back to uh the voters uh to show you to align what we're setting aside is really best practice uh we are very fortunate when I go to national conferences um and I'm speaking with other uh peer districts they are facing the issue of deteriorating facilities we thanks to the voters we're able to not get into that position we're able to catch up on all that deferred maintenance and we want to make sure to be able to continue it um so all of this is you know the facility condition assessment that came out aligns with the Council of great City School so it it just goes to show that we're doing what is best practice in Palm Beach County and then if you could just go back to the other slide I just wanted to highlight the two sales tax st2 under the school Improvement projects and the school enhancement funds we have $30 million set aside in school enhancement funds and I want to uh to give uh Mr Sanchez credit that we're going to take some of the sales tax funds and we're going to allocate those funds directly to the high schools uh middle schools and elementary schools uh so $250,000 to each High School um uh 200,000 to each middle school and uh and then 150,000 to each Elementary School we came up with a list of items that they're allowed to some guard rails for the schools of of items that they could uh purchase um and then they're going to go through their Sac committee and they're going to vote on initiatives that they can fund at the school at the school site so I thought that was a great great way to get the community uh involved in the use of the sales tax funds and then the other 220 and I I'm sorry I didn't cover these the 220 is um portion of the sales ta that's going to be used for things like artificial turf and um digital mares and enhancements CH equipment in Choice updating the choice eies um the choice were built and I'm I'm going to pick on culinary for a minute because it's got a lot of infrastructure when you put a a a choice Academy in for culinary they have to have stoves and ovens and and it's a kitchen it's like a commercial kitchen and those have been well used for like over 20 years and those stoves and ovens are really showing their age and need to be updated so that's part of that and we've also added other local dollars there's $200 million of other local property taxes that are going in to beef this up as well because we recognize there's a lot of work that we need to do and again as Miss Frederick said the money we have for local property taxes helps but it's not enough we need the extra money from the sales tax to make sure we can continue keeping our schools in a good shape and especially considering that we have to give now you know it's a billion dollars to Charters to Charter Schools sorry about that Noe that's okay thanks for thanks for supplementing okay so the next section so we got through plan maintenance we're going to move on to security and we have um money out there this year and then we have 250 million of the sales tax that will be used probably for a lot of these same projects um we are putting in guard houses at the high schools um and then we have security is the one area we don't break it out because it varies so much from school to school and there's a lot of concern about how much detail we provide on what we're doing at a school but the some of the big things the bidirectional amplifiers that's uh we basically I'm going to put it in a non-f facility term and Joe will correct me we're running a um ground line throughout the building that is used to pick up the reception for for radios and cell phones so they're making it so that that reception he nodded I think I got it right videos only it's cell phones are separate yeah but we're adding I've been told this number includes the number for sales for the for the cell phones there's a separate device that we need to run in for cell for cell phones but they're doing both at the same time so that's going to be a big enhancement I've heard from teachers that say their cell phones don't work in the schools because we build them as hurricane shelters and they're solid concrete buildings and the the cell tower the cell signal doesn't always pass through pass through those walls so making that Improvement to the facilities is going to certainly help um just the day-to-day operation of the schools and it's really important for um local law enforcement fire Apartments to make sure their radios will work correctly in the buildings so that's falling under security um we also have vestibules that we're putting in so a a single area when somebody walks into a school they're in an area that they can't go any further unless somebody from the school buzzes them in that they can move forward after they've checked their credentials and then security window treatments that work is underway putting in window screens and different types of things in the schools to block the windows so that people can't see it so a lot of money for security um and then I'm going to move into technology and it's broken into two big buckets one is classrooms is education technology and that's really what's in the classrooms so the one with st that's the current sales tax and they're coming to the end of that and they use that to put in all the big flat panels audio enhancement um document Imaging cameras updated projectors in the schools and now they're going in putting in LCD um signage throughout the schools and improving all the the technology within the classrooms and then epic intercoms we're updating the old intercoms we we did a pilot with the new schools that were recently built and the modernized schools and the schools just love this so instead of the hardwired intercoms that are out there now they have it and it's all it's all done through technology and they can send a note used to be they could reach out and talk to One classroom at a time or the whole school now they can do it one classroom one grade one building one floor One Wing they can pick exactly who they want to talk to and it's all programmed and they can reach out and then the teachers have a button and they have a lanyard with a microphone on it and that sound goes through speakers throughout the room so every child hears as if the student is right in front of this teachers right in front of them but they can also hit the button and that goes to the intercom to reach the front office in case they need help so it's hanging on their neck and it's a lot lighter than it used to be and it's supposed I've heard this is very well accepted by teachers they love it they all love the being tied in with the new intercom it's what we've been told so we're rolling that out really as the intercoms are aging out um and then we start speeding it up and replacing them all but we've got some schools with fairly new intercom systems so we don't want to just tear out something that's brand new so we're doing that over the course of a couple of years getting those in so that's classroom technology and then we get into regular it's it infrastructure what what we need to keep all the technology running and I'm not going to go through every one of these I don't think you want to hear every one of them but we have computer refresh that is where we replace the computers so we have that bucket of money going out throughout the capital plan and we do have a line item here that's technology st2 and that is sales the new proposed sales tax that'll be coming in I believe all of that's going eventually going to be added into computer refresh I'm working with it to verify exactly how it's going to be used but that's the intent that would be used to replace the computers I think the numbers that I had were before with touchscreen and now we're adding in the touchcreen with that with those dollars but this deals with cyber security it's replacing the servers the phone system that runs districtwide the internet routers and switches the disk storage for all the data for whether it's our student information system or financial system system all the servers and all the data that everybody has on Rec on their computer is running through the networks um the budget system the backend infrastructure which is everything we need behind the scenes um all the software packages that we have are down here the enterprise-wide software packages if we're if it's educational technology educational programs that are done at the schools those have to be funed the operating budget but if it's what we need to provide information to parents and the public so our sis student information system the Erp system running Microsoft Office on all the computers having um cyber Security and Antivirus software those all run through this bucket through through this so that kind of covers technology and then the last section is transportation so that's purchasing buses and we have three lines we have school buses for money that's currently in the regular budget and then we have money that's out there for the current sales tax and for the new sales tax to do buses and um then we have White Fleet the support vehicles are White Fleet um the current sales tax could be used for maintenance and school police vehicles but that's it the new sales tax that's proposed cannot be used for White Fleet or support vehicles at all it's just for school buses and then we have a a line for equipment that they need they right now they're replacing ing some of the lifts and some of the big equipment in the transportation centers um and then they have a little bit going out for things they know is know are coming up and then contractor Transportation that's for that is when we hire a company to transport some students we use um two vendors one is for ESC and special needs students and then we have one for just our regular students that for some reason um we don't have enough drivers or enough buses and we use an outside company we don't use that very often often but we have it there included in the budget because we've got to make sure the kids get to school so how are we do it but most of that happens with our buses and our drivers that is everything that is the 10 page Capital plan um are there any questions and I know I went through it very quickly I appreciate all the questions in the that that I have a um so we had 200 $12 per student as the increase from last year if we added up all of the security projects um would that be a significant percent of that or not well that's it's two separate budgets so it's two separate budgets so the $210 that we receive per student is the operating fund that's and and that none of that comes from Capital no no and then the way that capital is funded is through the 1.5 um Mill Levy that we have and the one difference between the operating fund and the capital is that when there is an increase in property values of 5.9% there's actually going to be an increase in revenue of 5.9% you know we're going to have an increase in Revenue in the general fund of I mean in property values of 5.9% but we're still only receiving 2.27% increase in per student funding because we have the equalize funding for uh per student so that's the difference between operating and capital and then the capital cannot be used for um anything on the operating side like teacher salaries you know it has to be Capital related and the statute is very specific as to how those Capital funds can be spent I usually explain capital budget are things that are going to have a use life of at least 5 years so it's got to be longterm um anything that is there that is temporary we can't pay for paper towels and toilet paper we can't pay for salaries we the only salaries we can run through the capital budget are the people that are building the schools or maintaining the schools we can fund that through Capital um but the day-to-day operations of the school has to run through the operating budget all right any questions probably all right so we do have we went through uh the school uh Capital outlay Ser tax the the half penny continuing the half penny sales tax uh so our board unanimously approved the ballot language back in February we went to the county for their ministerial approval of the ballot language and they approved in April we've already gone through the facility condition assessment which Miss Evans talked about which is consistent with what was recommended by the Council of great City Schools so we have that now set aside in the capital plan um uh projecting that this tax is going to be approved by the voters in November um we are working currently on the performance audit so statute now requires this was a change um I believe two years ago um that if you have what's considered a new tax you have to go through a performance audit um Opa is the one who initiates the review uh we had the team on site was it last week it was last week and Miss Evans and her Department um helped uh coordinate it it was a significant amount of workload on Miss Evans Department as well as Mr Sanchez they focused heavily on facilities uh Transportation as well as school police and Technology all the areas that's that are going to be funded through the sales tax they actually spoke with everybody you know they spoke with um some board members the superintendent the governance side uh the attorneys uh the Inspector General um grants all of the finance so they did cover it is a full performance audit but they really did focus on the categories of where the sales tax is going to be spent there was 106 interviews in three days yes with we had four Auditors on site and it's it's because it's such a condensed timeline you normally have much more time for an audit um I know the team is exhausted we had some were flying in from Texas and they just had interviews uh the whole entire day so we're working now to try to just um send any follow-up information that came out of those interviews um and that has to be completed no later than September 6th uh we should have a report a little bit earlier than that and then we do have to have it posted on our website uh for three years they're not going to come out and say that they support the tax that we need the tax or we don't need the tax it is just an overview of how we operate and how we're using our funds and do we have controls in place and and so we we are looking forward to the results of that U they were very focused on our strategic plan and Department goals and you know I'm sure there's always areas that that you can improve on um that's what always comes out of an audit so we are looking forward to the feedback that we receive but the team was great and um I know that the U this the staff um it was it was a heavy lift it definitely was a heavy lift they asked for a lot of information and so we're due to go to the general election November 5th um and if it's approved it's it's $2 billion a year $2 billion do over uh the 10year period And I think Miss Evans did a great job walking through everything that that's going to to fund and this provides a good overview uh so half of it is for that plan maintenance that we talked about a quarter of it is for security uh initiatives as well as those school-based initiatives that we talked about uh and then the the the remaining 25% is for technology school buses and then the amount that we have to pass through to Charter Schools we do have an oversight committee specific for uh sales tax and charter schools are required to follow the ballot language as well and they are going to also be reporting uh to uh the oversight committee the same way that they do for the independent referendum oversight committee for those um the operating millage and then I wanted to give an update on Esser so Esser is sunsetting September 30th uh our goal is to have it fully funded at least the district Portion by June 30th I do anticipate that we are going to have some stragglers with the on the charter school side we have been communicating with the charter schools since February they started with nearly $20 million unspent as of February they were down the last time I checked down to $1 million so that since we've been uh communicating with them they have started to submit a reimbursement requests if the charter schools do not fully spend their Esser dollars we are allowed to submit an amendment to the state and the district can use those funds we did uh submit our final Amendment for the district um two months ago and we received final approval last week so our final amendment was approved we are um taking some teacher salaries because we did have some some items that were encumbered that didn't get spent um that are still outstanding for example musical instruments there was such a backlog with receiving the musical instruments that there are still ones where we have purchase orders that have been outstanding for over a year I still want to honor all of those purchase orders that we have out at the school sites so we're shifting other expenses into the Grant and then we will then use those dollars that we're freeing up in the general fund to cover all of those items that are I don't want to risk that they're not in by September 30th and I want to have everything finalized by June 30th so we will see a little encumbered yeah right everything that's it's it's encumbered the purchase orders have been out there and I want to it's been a district initiative a board initiative as well as initi initiative of the superintendent for musical instruments and it there's just been a back log it's just been hard to get them and so we do have some other items like that that I want to make sure that we honor uh what we said that we were going to allow the schools to to purchase but now we're going to end up just shifting the funding that will be coming out of the general fund once those actually come in so we will have since the the amendment was approved we'll have it fully funded by uh June 30th this is the final you know what it's going to look like other than whatever we might have to shift if the charter schools don't spend their funds F so 39% was spent in the category of Unfinished learning we had 4% in technology there was a portion of the Esser funds where the State of Florida dictated how we spend those funds and so that's the amount we spent on technology like I said we were fortunate we already had the money set aside for the onetoone devices um but a lot of other uh uh districts across the country used a larger chunk of their Esser dollars in order to get to those onetoone initiatives we had the safe operations of schools you know that was everything you know the custodial all that additional work that we were doing in the middle I mean in the beginning of uh of covid and then the safe operation of uh schools this is the disaster pay so these are all of the bonuses that we were able to give to our staff um who had all that additional workload put on them during um during that time period uh so those you know those onetime bonuses were a good use of you one-time funds uh but we no longer have those one-time funds available to to give those bonuses uh any any longer 4% is for indirect cost we were allowed to do up to 5% for most of the Esser initiatives but there were some that had a restricted rate so that's why it averages out to 4% and then we passed through a little less than 10% to Charters which might end up being even a little less if they end up not spending their full full funds and then social emotional mental health services that was a chunk that was also uh another item that was mandated by uh the state as to how we spend those funds so some ways of how activities that we funded with Esser uh we provided tutorial support to 26,000 uh students uh mental health training provided to 28,000 uh staff within our district educational field trip were provided to over uh 38,000 students we provided uh K5 classroom Library sets to each of our elementary schools uh each of those were $350 per each of those book sets uh musical instruments and supplies were provided to over 103 schools and then we also purchased which I I don't have the bullet on here but uh approximately 400,000 books between textbooks and workbooks um so that we were able to utilize these U funds to provide uh supplemental resources uh to our students um and to help close that that academic Gap so in looking at fy2 and and looking Beyond you know what is enrollment going to look like in Palm Beach County we are very fortunate that we are currently not facing declining enrollment I am part of uh several National um School District uh associations and we are one of the full the few school districts who's not facing declining enrollment um if you look at Broward and Dade they're you know to our South they're both facing declining enrollment in their District operated schools not when you look at their Charter or their vouchers but their District operating schools are declining pretty significantly I think Broward is is looking to have a decrease of I believe it was 5,000 and students um so that is something that potentially um could happen in Palm Beach County so what is enrollment going to look like uh we do have initiatives uh that we continued as part of uh that we started under Esser that's something that we built into our budget that was one of the the items that we sustained was our marketing initiative of at the Kindergarten Roundup you know making sure parents are aware of the services that we offer here in Palm Beach County we're also working on rolling out a full online registration system in the fall we already have it for kindergarten uh but and then for students that are new to the district but by the Fall we're going to be able to roll out online registration for all students so just making sure to bring us up to U bringing up and updating our technology as well as working on our customer service and understanding and and letting the public know really what services we provide um and and how it is far Superior uh to um the the other options that they have within the the county um we are facing an increase in our health claims our plan did do very well for many years but after covid uh and during the pandemic we saw pretty significant spike in our health claims uh that is not um it's it's not going back to those pre-co levels and so we are facing we really should have had an increase last year year uh in our health uh premiums we were able to negotiate an increase but it really wasn't sufficient uh to cover the true increase in costs uh so we are um facing an increase in our health claims um and an increase in premiums in the upcoming uh year and then what are the future increases going to be in the Florida retirement system this is the first in many years we only saw a minimal increase in our F FRS rates the impact was uh $500,000 which for our district is not significant our increase last year was $18 million I do anticipate that in the future we are going to see more significant increases uh in our in F FRS as they continue as the legislature continues to make changes uh within that program and make sure that it's it's fully funded and within the capital projects fund uh continuing um we really do need that sales tax initiative approved by the vote voters uh to address those escalating costs and make sure that we can continue to properly maintain our buildings to uh the best practice uh standard and then we're always monitoring the uh future legislative changes this year it was pretty quiet um because last year they fundamentally changed public education in the State of Florida so what else are you going to do the next year you know so it wasn't a little bit quiet this year but what else are they going to come up with uh so we're always monitoring uh to see uh what potential uh impacts we're going to have uh in the future so our next meeting is uh for this is for the board so what are the next steps for the budget July 17th is when the board approves our advertisements um as part of this legislative session we are allowed to post our advertisements online um since the process is so prescriptive and the Department of Revenue has not provided us guidance I'm most likely going to continue with the process that we had where we advertise in the newspaper um but I'm you know waiting to either way the advertisements still need to be approved by the board U but it does seem like the Department of Revenue is going to keep those same prescriptive requirements of how big the font needs to be that you know you pretty much have to recreate what the newspaper advertisement would look like um and I'm not and if we don't do it correct we will have to to read vertise the budget and have another budget hearing and I don't know that I'm willing to risk that this first year so I might just just keep us status quo let everybody else work through the process and then next year move to um posting that online um we have our tenative budget adoption on July 31st that's where we're going to approve our tenative millage rates as well as a tenative budget and that is the meeting that we would like to have the report to the board um from the um advisory committee if the if the committee um supports the budget we're presenting and then we have the final budget adoption on September 4th um where we'll also be approving the capital plan and the district um Ed the tenative District educational facilities plan which ended up being much later this current year that's that's the state version of the capital plan they have their own way they want us to do it so that they can compare and everything looks the same they didn't even open it up until September last year so we bring our own version of the capital plan what you've seen today and then we take that data and we plug it into the state document once it's available and we bring it back to the board as soon as it's ready so it's it's an after the fact because statute said we must adopt it before budget we adopt the operating budget so we have two versions of the capital plan we have ours and then the state one that comes later and then we have the resolution where the board has to certify the millage to be levied which pretty much is already set the millage is set by the state but it's it we still have to have our board approve it um as well as the the final District budget and so this is an overview of of the timeline of when we started back in in December of 2023 with the board Workshop so I don't know if there are any additional questions on the budget you can got a lot in no we knew Miss Evans has a question oh you do okay sorry yeah you remember we talked about the electronic mares the past yes so according to the information you have on page six of your Capital plan um does that mean that this next school year they're going to be in at the high schools we're installing them over time they're not they're getting done as we can get them done um and we have to do some negotiation too because some cities have requirements as to how the mares can be done certain Heights certain colors certain light the the amount of light that it can go out so as much as we'd like to go and do them all at once it's probably get done over a couple of years we're already in installing some they we've already started we're just going to continue to do that over the next couple of years and once you do this and we make make them all LED and bright and shiny they they wear out faster so they don't last as long as the old ones the old ones were the you know just the old board you'd see somebody with a long stick changing the letters that's very manual those last forever once you start adding the technology to them they don't last as long so we'll be doing maintenance on those um forever I know we're always looking forward rather than later to getting things and then I have one more question um you have a property on the corner of Military Trail in okobi Boulevard which is the old adult education building that's the one we're going to tear down um what's the plan for what's it being used for now is it a storage area or is it just there I'll let Mr Sanchez answer that he knows better than me yeah what's it currently being used for yeah it's currently being used it's going to be demolished but what it's currently being used for is to store some some portable some modular buildings as we move in around for for different projects but there's there's a lot of interest um for internally for that site either for um some kind of commercial CDL training or some other property some other use maybe for an ancillary purpose we still even though you know some people have gone to remote work we still have a need for for for offices for people um there's been a lot of interest from outside organizations about um affordable housing and trying to put that on that site but we haven't made any decisions about um letting go our proper proper because we always not we always but it's it's not we're a little bit concerned that years from now we may need that property for another for another school at some point so we're very hesitant about letting go any of our property but right now uh we don't have a set um Define use for that property we do have money in the budget to tear the building down though and they're they're bidding that out right now that work all right thank you this this on the uh the digital Marquees the end got that pretty accurate there there are municipalities that are just going to say no because they just don't like digital they don't like the they don't like the flashing lights they don't like changing characters they're going to say no to us and that's so we're I don't know which city I I I have some ideas of what cities are going to be but because we we've run into that before but um I don't think that we're ever going to be 100% digital because of because we do have to meet the we have to comply with the requirements all right thank you all right do you want to talk about the um report does everybody have a copy of it so the next item is the the as part of the policy for the budget advisory committee one of the items is that there needs to be an annual report um to the board um so I drafted a report um from the committee um I did provide um a copy for those of you who are in person and then also it's on the the agenda um so wanted to uh work through uh the draft um see if there were any potential changes I tried to incorporate some language uh from uh previous years you know I highlighted the number of meetings we had um gave an overview of the legislative session um of the funding that was received um that both the budgets are balanced um you know that there is some uncertainty in in the future that you know we have to uh make sure with our um I know the committee had pointed out in in previous years we need to be careful to not utilize those one-time funds for recurring initiatives and well as well as making sure to recognize employees and as we continue to amend the budget and adjust the budget as closing out the end of the fiscal year you know looking at what truly what part of our fund balance is truly related to recurring initiatives um uh like we just had with the certification of the the property values anything extra that we come up with putting that into a salary and benefits Reserve um so we already started that with the um the certification of the uh the property values um so we'll continue to as as I said you know finalize and close out the the end of the year really go through and determine what part of the fund balance is recurring and whatever else we have available we would we would put that aside um in that salary and benefits reserve and I would would like to have a volunteer um to uh report out to the board at the July 31st meeting um and then I can also work with the chair um to find ize the the draft of the report too um up until that that meeting I'm going to be out of town on July 31st so if somebody could volunteer to go instead if you'll check your calendars is that Lori yes I'm happy to do that oh great thank you so much I appreciate it you're welcome I I read through I don't know that I have any changes at this point point on the report is there anything you see missing or would I haven't read through so I okay do you want to shoot an email maybe to Heather yeah if you see something that's you'd like to change and is that good with you yeah that works that and are you comfortable um if you'll send your comments to Heather are you comfortable with me and um Lori since you're going to be presenting it we'll finalize it yes yes okay great thank you okay you need a motion about um no this one I just had I I I don't have it as a motion um I I looked at last I thought we did take a vote last year but we did have it as a discussion item last year not as a vote in case and I think the reason why I had as discussion is in case we needed to have an additional meeting to finalize it um so I don't know what we have to amend the agenda to have the board vote on it okay so we would just need a motion to amend the agenda to include a vote on the report to the board so moved and can I get a second Carman yes thank you um all those in favor all those opposed motion carries unanimously okay and then do we have to actually vote on the report okay then one more and then um can I get a motion I move we approved the report as submitted and with minor changes made by the chair and um assistant chair or vice chair second by car thank you all those in favor those oppos motion carries un unanimously well thank you very much to the committee for all of your participation this year like I said this year was we kind we we kept it more simple just because of the sunsetting of those Esser funds and the uncertainty that we're looking at in enrollment um so we have you know hopefully we see an increase in our enrollment this year um and and next year we can see a you know a more significant increase in our per student funding um to allow us to uh to dig in a little bit more my concern related to that is that we are doing a lot to make schools safer but I also want us to continue to think about how we make learning better and stronger and and we would agree and that is part of the uh the the direction and focus of the Strategic plan plan um is to to make sure that we can uh uh regain our a rating uh and to to do what's best uh for our students academically re sorry I just put a mint in my mouth too so we we're adjourned all right thank you