MINUTES

FINANCE AND OPERATIONS COMMITTEE

April 10, 2006

The Finance and Operations Committee of the Board of Education of the School District of Jefferson met on Monday, April 10, 2006, in the High School Library. Chairperson Stoner called the meeting to order at 6:45 p.m. with Committee members Koch and Stafford and alternate Neils present. Mr. Salmon was absent. Mr. Stafford left the meeting at 7:22 p.m.

Approval of the March 13, 2006 Finance and Operations Committee Minutes: A motion to approve the March 13, 2006 Finance and Operations Committee meeting minutes as presented was made by Mr. Koch, seconded by Ms. Neils. The motion passed on a unanimous voice vote.

FINANCE TOPICS:

Fund 73 Trust for Other Postemployment Benefits: Mr. Brian Brewer of Stifel, Nicolaus provided information relative to establishing a Fund 73 Trust for OPEB purposes. He emphasized the reasons the district may wish to establish the Fund now, including additional Special Education categorical aid and federal grant reimbursement dollars.

This issue will be placed on the agenda for additional discussion at the full Board meeting on April 24, 2006.

Proposed 2006-07 Meal Prices: The recommended 2006-07 breakfast, lunch, and milk prices were presented for committee review. The financial condition of the food service program remains strong allowing for no increase to be recommended from the current levels.

A motion to approve the 2006-07 Lunch, Breakfast, and Milk Prices as presented and forward for full Board approval was made by Ms. Neils, seconded by Mr. Koch. The motion passed on a unanimous voice vote.

Discussion of Fund Balance – Use and Purpose: The committee reviewed two documents (Fund Balance Maintenance and Fund Balance Practices) providing an overview of what fund balance is and how to maintain it.

Committee discussion included:

- Fund Balance is not a pile of cash to be spent. It is a budgeting tool for cash flow management.

- Fund Balance policies are unique to each district

- Rating industries look at a district’s Fund Balance when establishing a bond rating

- Community understanding of Fund Balance may be helpful for a future referendum discussion

2006-07 Budget Recommendations: At the March regular Board meeting, the recommended use of fund balance to balance the preliminary 2006-07 budget was referred back to the Finance and Operations Committee for further review. At that time, the administration was recommending the following use of fund balance:

Replace 1988 and 1969 trucks with a one-ton truck w/plow $44,000

Replace air handling unit in pool & locker rooms (add digital) $55,000

Repair tennis courts $26,000

$125,000

The Administration believes that the above proposed use of fund balance minus the $26,000 for tennis court repair is appropriate and committee approval was sought.

Mr. Stoner explained his budget analysis and use of fund balance worksheet. Mrs. Peachey noted that the budget numbers are very preliminary and change daily. Mr. Swartz withdrew the $25,000 Character Education line item within the 2006-2007 budget.

A motion to remove the tennis courts ($140,000)from the annual budget, remove the high school wiring ($40,000) from the annual budget, and fund the high school pool air handling unit ($55,000) and forward for full Board approval was made by Ms. Neils, seconded by Mr. Koch. The motion passed on a unanimous voice vote.

Discussion of Fund Balance Guiding Principles: Dr. Stoner presented a draft document of his thoughts on fund balance guiding principles. Current district policy defines upper and lower limits for Fund Balance. Committee members agreed to discuss these guiding principles at a future committee meeting.

Discussion of Potential OPEB Strategies: Dr. Stoner prepared a draft spreadsheet of his thoughts on potential OPEB strategies. Committee members reviewed the spreadsheet and agreed to direct Mr. Swartz to follow up with Michael Blackburn to examine the impact of various options.

FACILITY TOPICS:

Referendum Planning Discussion

§ Update on Architectural Facility Tour: Mr. Swartz noted that a facility tour was conducted on Tuesday, April 4, 2006. In attendance were representatives from the following architectural firms: Bray Associates Architects, Inc., DLR Group, and Plunkett Raysich Architects, LLP.

§ Reminder of Architectural Firm Interviews: A special Board meeting has been scheduled for Tuesday, April 18, 2006. The first interview is at 6:00 p.m. in the High School library.

Summer Swimming Agreement with Johnson Creek School District: The Johnson Creek School District has once again expressed an interest to enter into an agreement whereby Johnson Creek School District students would be allowed to participate in a three-week swimming program. As last year, the swimming program would be offered early afternoons for one hour, immediately following the dismissal of Jefferson summer school students.

Interested Johnson Creek students participating in the swimming program will be charged a fee of $35 to offset the cost of swimming instructors and the use of the pool. Student transportation will be provided by the Johnson Creek School District.

A motion to approve the Agreement Between the School Districts of Johnson Creek and Jefferson for Student Participation in Summer Swimming Program as presented and forward for full Board approval was made by Mr. Koch, seconded by Ms. Neils. The motion passed on a unanimous voice vote.

Youth Tackle Football Agreement for 2006-07: Annually, at this time, the Youth Tackle Football Agreement is presented for Board consideration and approval. No revisions are proposed.

A motion to approve the Agreement for Use of School District of Jefferson Facilities by Youth Tackle Football, Inc. as presented and forward for full Board approval was made by Mr. Koch, seconded by Ms. Neils. The motion passed on a unanimous voice vote.

OPERATIONS TOPICS

Resignations:

Martin Fritzsch, Instrumental Music; early retirement

A motion to approve the early retirement request of Martin Fritzsch as presented and forward for full Board approval was made by Ms. Neils, seconded by Mr. Koch. The motion passed on a unanimous voice vote.

Employment(s)

None

Job-Share Request for 2006-07: A request has been received from Mrs. Sarah Dettmers for consideration of her entering into a job share agreement for the 2006-07 school year. If this meets with Board approval and a participating teacher can be secured, the job share arrangement would begin the week of Monday, November 27, 2006. If a suitable participating teacher is found, a job share agreement will be presented at a future meeting for Board approval.

A motion to pursue the job share agreement for Mrs. Dettmers as requested and forward for full Board approval was made by Ms. Neils, seconded by Mr. Koch. The motion passed on a unanimous voice vote.

Discussion of Possible Topics for Future Meetings

- 2006-2007 Budget

- Fund Balance Guiding Principles

A motion to adjourn was made by Mr. Koch, seconded by Ms. Neils. The motion passed on a voice vote.

ADJOURNMENT: 8:36 p.m.

BOARD OF EDUCATION

Secretary, Pati Fitzgerald