The Celina Board of Education held its July Meeting on Monday July 21st. To view the meeting:

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Following the meeting, Celina School Superintendent Brooke Gessler shared this statement with WCSM Radio:

"One of the top priorities right now is the board's decision to move forward with a resolution of necessity, and that is for a five-year emergency levy renewal. That brings in a little over $4.9 million of revenue, and it's a fixed revenue, and so we will be asking for the public, our community, to cast their vote for this issue this November."

To hear the comments from Superintendent Brooke Gessler:

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The following is an AI Generated summary of the meeting:

1. School district financial planning, facilities updates, and levy decisions

• Head Start Grant Submission and Non-Federal Match Waiver

  Amy requested Board approval to submit the fiscal year 2526 Head Start grant and a 10% reduction in the non-federal match requirement, citing increased costs, lower donations, and fewer volunteers. The grant is due September 1st, with about 84% allocated to personnel and fringe.

• Facilities Update: Elementary and High School Buildings

  Phil provided updates on construction progress at the elementary and high school buildings, including concrete, asphalt, door replacements, steel beams, roofing, and landscaping. Color-coded routes for traffic flow and volunteer simulations for drop-off/pick-up are being planned.

• State Budget and Legislative Updates

  Michelle discussed the impact of the state budget signed on June 30th, including the governor's 67 vetoes and the House's override of item 66 on the day of the meeting. The Senate must now vote, needing 20 votes to override. Items 55 and 65 remain unresolved.

• Impact of State Funding Formula Changes

  The fair school funding formula will continue to be implemented over six years, but base cost updates are not included, resulting in funding reductions. The district will lose $651,630 in FY26 and $370,679 in the next fiscal year, totaling $1.6 million over the biennium.

• Levy Options and Expiring Emergency Levy

  The Board must decide what type of levy to run in November to replace the expiring emergency levy. If item 66 is enacted, emergency and substitute levies cannot be renewed after January 1st, so November is the only opportunity. The emergency levy funds 14.5% of forecast expenditures and 13.2% of revenue for 2025.

• Potential Financial Impacts of Legislative Items 55 and 65

  If item 65 is overridden, it would affect the calculation of the 20-mil floor and could reduce revenue. Item 55 would allow the county budget commission to reduce voter-approved school district taxes.

Conclusion

1. Amy will submit the grant and the 10% waiver request. The Board acknowledged there is no limit on waiver requests.

2. Construction is progressing well. The first day of school is August 19th. Landscaping and other finishing touches are ongoing.

3. Item 66 override proceeds to the Senate. Items 55 and 65 are still pending, with decisions possible by the end of December.

4. Funding reductions are confirmed based on the conference committee version of the budget.

5. The Board must act in November to secure funding. If passed, the levy will last its term, but cannot be renewed as an emergency or substitute levy after that.

6. Both items remain unresolved and could impact district finances if enacted.

2. School District Levy Options and Legislative Impacts

• Senate Bill 66 and Financial Impact

  Discussion of Senate Bill 66, its floor calculation changes, and the financial impact on the district, including specific losses in FY27 and the timing of tax year changes.

• Emergency Levy Option

  Exploration of the emergency levy as a renewal option, its fixed dollar amount ($4.9 million), required votes, duration flexibility (5 to 10 years), and its impact on taxes and district revenue.

• Substitute Levy Option

  Examination of the substitute levy (replacement levy), its requirement for four votes, ability to capture new construction revenue, and potential for up to 10 years or continuous duration.

• New Operating Levy Option

  Consideration of letting the emergency levy expire and running a new operating levy, with the possibility of making it continuous.

• Legislative Uncertainty and Timeline

  Discussion of legislative changes that may eliminate emergency and substitute levies effective January 1, 2026, and the uncertainty regarding retroactive impacts and timing.

• Levy Election Process and Deadlines

  Outline of the process for passing a resolution of necessity, submission to county auditors by July 25th, certification within 10 days, and subsequent resolution to proceed due at Board of Elections by 4 p.m. on August 6th.

• Levy Duration and Synchronization

  Discussion on aligning levy cycles (emergency and income tax) to reduce frequency of elections, with suggestions for 8 or 10-year durations to minimize voter fatigue.

• Public Communication and Perception

  Emphasis on communicating to the public that the levy is a renewal, not a request for additional funds, and that the fixed dollar amount has not increased in 20 years.

• Financial Impact of New Construction

  Analysis of the additional revenue from new construction under a substitute levy, estimated at $10,000 per year or $100,000 to $150,000 over 10 years.

• Levy Campaign and Election Costs

  Discussion of the need to revive the levy campaign committee, fundraising requirements, and the district's obligation to pay Board of Elections fees for running the levy.

Conclusion

1. The district will lose $691,000 in FY27 due to the bill, with a total projected loss of approximately $2.4 million when combining $1.6 million and $700,000.

2. Emergency levy is favored for its renewal language and fixed amount, but it does not allow for revenue growth from new construction.

3. Substitute levy allows for revenue growth from new construction (e.g., $10,000 from $3.7 million in new construction in tax year 2024), but may not survive pending legislation.

4. New operating levies are unlikely to pass given current statewide trends and low passage rates.

3. Emergency Levy Renewal Duration and School Funding Strategy

• Levy Renewal Cycle and Voter Fatigue

  Discussion on the frequency of levy renewals, the desire to avoid voter fatigue, and the possibility of aligning levy cycles to every five years instead of every two or three.

• Duration of Emergency Levy Renewal

  Debate over whether to renew the emergency levy for five or ten years, considering legislative uncertainty, voter perception, and financial stability.

• Legislative Changes and Impact on Levies

  Discussion about potential state legislative changes, including the elimination of emergency and substitute levies, and the impact of Senate Bill 60 and item 65.

• Financial Risks: 20 Mil Floor and Revenue Loss

  Consideration of the financial impact if the 20 mil floor is reinstated, with potential losses of $700,000 in the first year and $2,600,000 overall.

• Fixed-Sum Levy and Budget Growth

  Concerns about the emergency levy being a fixed-sum levy ($4.9 million), while salary and benefits (82% of budget) and health insurance costs increase annually.

• Loss of Federal Funding

  Noted loss of over $100,000 in federal funding this year, which previously supported supplies, staff learning, and student programs.

• Income Tax Levy Timing and Options

  Clarification on the timing of the income tax levy (set to expire in 2028), and discussion of options to run or increase income tax levies at any time.

• School Building Project Levy Duration

  Question and clarification about the duration of the school building project levy, confirmed as thirty-eight years, with only two years elapsed.

• Capital Improvement Fund Use and Flexibility

  Discussion on the Capital Improvement Fund, its intended uses, and the process for reallocating funds to the general fund if necessary.

• Board Voting and Consensus

  Board members expressed their preferences for five- or ten-year levy renewals, with concerns about voter reaction and financial planning.

• Agenda Adjustments and Special Meeting

  Request to pull item number eight under section seven of the treasurer's report from the agenda and plan for a special meeting before the August regular meeting.

Conclusion

1. Consensus to prefer a five-year renewal cycle to minimize voter fatigue and maintain predictability.

2. Board agreed to proceed with a five-year emergency levy renewal resolution.

3. Acknowledgement that current levies will be grandfathered until expiration, but future changes may require new strategies.

4. Funds can be reallocated to the general fund by board resolution if not used for specified capital improvements.

5. Majority support for a five-year emergency levy renewal.

6. Agenda amended; special meeting to be scheduled.

4. School district financial management, personnel decisions, and operational updates.

• Board Approval and Emergency Spending

  Discussion about the flexibility of spending funds as intended, with board approval required for changes, especially in emergencies.

• Wireless Communication Allowance

  Clarification on the $30/month stipend for 18 staff members using personal cell phones for business, instead of providing district phones.

• Band Golf Cart Donation

  Discussion about the use of a donated 2018 Easy Go golf cart valued at $5,000 for the high school band, including its use during practices and events.

• AC Settings and Energy Management

  Questions about air conditioning settings in the elementary school, including temperature ranges (70-73 degrees), occupancy sensors, and energy-saving measures.

• Financial Challenges and Taxpayer Concerns

  Concerns raised about property taxes, declining farm income, commodity prices, and the difficulty of passing levy renewals in the current economic climate.

• State Funding Losses

  Report of losing $1.6 million in state funding and potential further losses of $700 million and $20 million due to floor calculation changes.

• Treasurer's Report and Financial Approvals

  Approval of June 23rd and June 30th meeting minutes, cash summary (revenues: $5,000,000; expenditures: $1,000,000), cash reconciliation, and building project balances.

• June Expenditures

  Checks written in June totaled $7,755,243.64.

• FY26 Temporary Appropriation and Fund Transfers

  Approval of FY26 temporary appropriation and annual transfer of $5,000 from District Athletic Fund to Athletics Baseball Turf Fund.

• Donations

  Acceptance of various donations, including vehicles, equipment, and cash for school programs, with specific amounts and donors listed.

• Emergency Levy Renewal

  Resolution for emergency levy renewal for five years by the board.

• Local Government Services Contract

  Approval for LGS to compile annual financial statements for Celina City Schools as of June 30, 2024, not to exceed $10,400 or $100,000.

• Personnel Items and Contract Changes

  Approval of personnel items, including changing special education secretary factor from 1.01 to 1.15 for 2025-26, hiring for extended school year and summer work, and TriStar adult education instructor pay at $5/hour.

• Academic Supplemental Positions

  Discussion of academic supplemental positions, their roles, and possible changes when moving to one building in the future.

• Cell Phone Allowance Policy

  Approval of $30/month cell phone allowance for listed staff, with explanation of policy change from district-provided phones to stipends due to IRS regulations.

• Head Start Report and Grant Items

  Approval of FY25-26 Head Start grant, 10% non-federal match waiver, and contract language change to make administrative contracts contingent on grant funds.

• Executive Session Agenda Item

  Discussion about making executive session a standing agenda item for flexibility.

Conclusion

1. Board approval is required to move funds, typically only in emergencies.

2. Allowance of $30/month per staff member for personal cell phone use is ongoing practice.

3. Golf cart is used for transporting people and equipment during band activities; not typically used for away games.

4. AC is set between 70-73 degrees when occupied; unoccupied mode raises temperature and reduces energy use.

5. Acknowledgment that passing levy renewals will be challenging due to economic pressures on taxpayers.

6. District is facing significant state funding losses, adding to financial challenges.

7. Financial reports and reconciliations approved; June 30th balance is $70,611,588.34, with $44,398,971.78 for the building project.

8. June expenditures approved.

9. Appropriation and fund transfer approved.

10. All listed donations accepted.

11. Resolution for five-year emergency levy renewal approved.

12. LGS contract approved with cost not to exceed $10,400 or $100,000.

13. Personnel changes and pay rates approved.

14. No definitive answer on changes to supplementals; planning discussions to continue.

15. Cell phone allowance policy approved.

16. Head Start grant, waiver, and contract language change approved.

17. Executive session will be a standing agenda item for future meetings.

Next Arrangements

• Amy to submit the fiscal year 2526 Head Start grant and 10% non-federal match waiver by September 1st.

• Board to decide on the type of levy to run in November for the expiring emergency levy.

• Monitor progress of Senate votes on legislative items 55, 65, and 66, with possible decisions by end of December.

• Continue construction and finishing work at elementary and high school buildings before August 19th.

• Pass a resolution of necessity tonight and submit to county auditors by July 25th.

• County auditors have up to 10 days to certify the resolution.

• Hold another meeting to pass a resolution to proceed, due at Board of Elections by 4 p.m. on August 6th.

• Revive the levy campaign committee.

• Determine which levy option (emergency or substitute) and duration (8 or 10 years) to pursue.

• Coordinate levy timing to align with income tax levy cycles.

• Pull item number eight under section seven of the treasurer's report from the agenda.

• Schedule a special meeting before the August regular meeting to address the removed item.

• Begin planning for staffing and academic supplementals as the district moves to one building in two years.

• Continue community conversations regarding levy renewal and financial challenges.

• Ongoing adjustment and monitoring of building automation systems for energy efficiency.

• Standing executive session item to be included in future agendas.