June 3 Meeting Highlights

Action Item - Approval of the Agenda

The motion carried (6-0).

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Action Item - Approval of Consent Agenda

The motion carried (6-0).

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Listening Session Report
Board member Hill stated that no one attended the Listening Session.

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Recognitions
Staff members Miles Lawson and Katie Shetka introduced the Confluence 4th grade authors: Ava Stocking (Moreland); Emily Grace Rosas Morales (Garlough); Eala Cotton (Mendota); Lucy Borgstahl (Somerset); Linnea Lichtsinn (Somerset); and Kendyl Blood (Pilot Knob). Confluence is a literary and arts publication that showcases an impressive collection of writing and art by 4th grade students. This year’s theme was “celebrate imagination”. Staff member Miles Lawson introduced members of the Student Curriculum Advisory Committee: Gray Gallant; Aliyah Karon; Aubrey McMahon; Elliot Menk; Grace (Gimmick) Doboszenski; Jack Filhart; Maxwell Oliver-Machuca; Moemma Jimenez; Nawal Hassan; and Raul Vaz. This committee was started based on feedback from the Equity Advisory Committee. They meet weekly during Warrior Time. Students provide input in areas where student voice and perspective are invaluable in various processes. Teacher Nicholas Hager introduced some of the student members of the Heritage GSA (Genders & Sexual Alliances): Imogen Hegg; Lila Gaboury; and Emmalie Kimbrel. This student-led group helps unite LGBTQIA+ youth by creating a safe space where everyone is welcome to show up. Superintendent Olson-Skog introduced the Two Rivers High School male and female athletes of the year; Riley Pearce and Lilly Leitner. From the Dakota Hawks United softball team, Jeffrey Rosga and Nick Smock were introduced. The Hawks won the state championship in both the PI and CI divisions. From track and field, the following state participant students were introduced: Michaela Smith; Alia Alizadeh; Josie Miller; Maggie McEllistrem; Sophia Agan; Maria Becker; Charlotte Chandler; Ellie Kessler; Jon Wollan; Nathan Frisch; Leo Knoll; Kiran Sharma; Niah Fernandes; and Ernest Moindi. Coach Ben Geiger introduced state percipient speech students: Grace Lyles; Quinn Hendel; Scooter Stoik; and Thomas Larsen. Coaches Dan Sebastian and Tony Kienitz introduced the state participant golf students: Bri Simek; Olivia Kanavati; and Matthew Heymans.

Superintendent’s Report
Superintendent Olson-Skog stated that the graduation ceremony for the Two Rivers High School Class of 2024 was held yesterday at Roy Wilkins Auditorium. The graduating seniors had the opportunity last week to return to their elementary school alma maters, where their educational journey began. The district’s Cultural Liaisons, Translators, and Interpreters hosted a community event at Thompson Park last week to celebrate the end of another successful school year. Pilot Knob STEM Magnet School hosted a successful Culture Fair last month. Families and students shared their cultures by bringing food, dressing up, making presentations, and even performing dances and songs. June is National Pride Month. School District 197 strives to be inclusive and provide safe spaces for our students, families, and staff identifying as LGBTQIA+ and celebrates the messages of inclusion, diversity, love, and
acceptance that Pride Month seeks to achieve.

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Action Item – Approval of Gifts to the District
Superintendent Olson-Skog presented information on donations to the school district. This month, all of the donations were for the all-inclusive playground at Somerset Elementary including an anonymous $200,000 gift for the project. Superintendent Olson-Skog thanked all of the donors for their generosity.

The motion carried (6-0).

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Action Item – Approval of FY 25 Budgets and Revisions to FY 24 Budgets
Jason Stegeman, Director of Finance, presented revisions to the FY 24 budgets and information on the FY 25 budgets. Administration asked for approval in two areas: modifications to the FY24 budgets (July 1, 2023 to June 30, 2024); and the proposed FY25 budgets (July 1, 2024 to June 30, 2025). Budgets in both fiscal years include the General Fund budget, the Food Service budget, the Community Service budget, the Capital Project budget, and the Debt Service budget. The required deadline for budget approval is June 30. 

Approved FY 24 Revisions
Changes from the original FY 24 General Fund included an additional $300,000 from investments funds and an additional $550,000 in special education cross-subsidy. Gains were offset by increases in salaries and benefits due to higher settlement costs than projected. Changes from the original FY 24 Food Service Fund included an additional $640,000 from state sources due to increased participation on the program. Federal funds also increased by an additional $280,000. Gains were offset by a decrease in ala carte sales and increases in salaries and benefits due to anticipation of contract settlement costs. Changes from the original Community Service Fund include anticipated higher contract settlements. Changes from the original Capital Project fund include additional capital expenditures of $1,575,806 in project completion costs from the 2022 facilities maintenance bonds. Additional costs of $375,000 resulted from pre-planning expenses for the 2024 facilities maintenance bonds to address air quality issues at both middle schools.

Approved FY25 Budget
Projected General Fund revenue for FY 25 is $94,645,210 while expenditures are projected at 92,706,789. The projected total ending fund balance for the start of the year is $9,697,785. Projected revenue for the Food Service fund budget is $4,616,360 with expenditures at $4,430,700 with a total ending restricted fund balance of $1,027,085. Projected revenue for the Community Service fund budget is $5,622,213 with expenditures at $5,177,080 with a
projected total ending fund balance of $1,259,376. Projected revenue for the Capital Project fund budget is $16,525,000 with expenditures at $10,000,000 with a total ending restricted fund balance of $6,150,000. Projected revenue for the Debt Service fund budget is $10,333,734 with expenditures at $10,207,623 with a total ending restricted fund balance of $1,938,197.

The motion carried (6-0).

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Action Item – Approval of ISD 917 FY 25 Long-Term Facilities Maintenance Levy/Budget
Jason Stegeman, Director of Finance, presented the ISD 917 FY 25 long-term facilities maintenance levy/budget. As a member district, School District 197 is required to approve the long-term facilities maintenance program budget for Intermediate District 917.  Each member district approves its proportionate share of the projects in 917’s long-term facilities maintenance revenue application.  District 197’s proportionate share is $30,966.60.  This amount will be included on the property tax levy and paid to ISD 917 after collection from the county. 
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The motion carried (6-0).

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Action Item – Approval of ISD 197 Long-Term Facilities Maintenance 10-Year Plan
Jason Stegeman, Director of Finance, and Mark Fortman, Director of Operations, presented the ISD 197 long-term facilities maintenance 10-year plan. Each school district needs to have items approved by their board to receive funding under this program. The items needing approval are the FY 2026 10-year revenue and expenditure plans. The district also agrees to a Statement of Assurances that certifies they will follow the program requirements and
guidelines. This program's funding is based on an allowance per adjusted pupil unit of $380 and generates approximately $2.1 million. It is part of the district's local property tax levy.  Revenue generated for this program can be used for various deferred maintenance projects (restoring district facilities to like-new condition) and health and safety projects throughout the district. However, there are restrictions on revenue use, such as that it cannot be used
to change the use or functionality of the building or space, add additional space, or for security or violence prevention. As part of the ten-year plan, the administration recommended replacing the dehumidification and ventilation systems at Friendly Hills Middle School and Heritage E-STEM Magnet School. The system has reached “end-of-life” (it will be approximately 30 years old by the time it can be replaced). Further, components for the system at both schools are no longer manufactured. Replacements must be custom-built. Maintaining the system has become cost-prohibitive and no longer feasible.  The state provides school boards with bonding authority for indoor air quality issues. This project qualifies for that bonding authority.

The motion carried (6-0).

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Action Item - Pre-Sale Report / Approval of Resolution of Intent to Issue Facilities Maintenance Bonds
Jason Stegeman, Director of Finance, and Jodie Zesbaugh, Senior Municipal Advisor with Ehlers Public Finance Advisors, presented a pre-sale report to issue facilities maintenance bonds as well as a resolution of intent to issue these bonds. The administration recommends replacing the dehumidification and ventilation systems at Friendly Hills Middle School and Heritage E-STEM Magnet School. As explained in the previous agenda item, the systems
have reached “end-of-life” (they will be approximately 30 years old by the time they can be replaced). Maintaining the systems has become cost-prohibitive and no longer feasible.  The state (per Minnesota Statutes, Chapter 475, and section 123B.595) provides bonding authority to school districts for indoor air quality issues. The Minnesota Department of Education (MDE) has reviewed the administration’s recommended replacement of the systems and
confirmed that the project scope would likely qualify. MDE will not formally approve the project until a resolution is approved by the board. The recommended resolution, which the School Board is authorized to issue, expresses an intent to issue approximately $16,490,000 in bonds, with an anticipated amount of $16,090,000 due to premium pricing. The $400,000 difference and rationale are described in the pre-sale report. The intent resolution will require two actions.  First, the administration will provide public notice of the intent to issue bonds to allow for input. Second, MDE will formally review the project. Once MDE approves the project, the administration will proceed with soliciting bids for the bond issue. Once the bids have been received, the board will vote again to finalize the bond sale issue. The expected date for this vote is August 5, 2024. It was moved by Mr. Schwab and seconded by Ms. Steele to state its intention to issue general obligation facilities maintenance bonds as detailed in the full resolution included in the board packet.

The motion carried (6-0).

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Superintendent End-of-Year Report on Goal Attainment
Superintendent Olson-Skog presented his end of year goal report. These goals were first presented to the board at their September 18 meeting and approved at the October 23 meeting. The goals and end-of-year status are as follows: 
Goal 1 - The superintendent will oversee the implementation of operational plans in support of the strategic plan.

• Goal 1a - The superintendent will oversee the implementation of operational plans in support of the social and emotional learning focus area.
• Goal 1b - The superintendent will oversee the implementation of operational plans in support of the equitable systems and support focus area.
• Goal 1c - The superintendent will oversee the implementation of operational plans in support of the career exploration and preparation focus area.

This goal is complete. The operational plans included 21 implementation targets and 73 objectives. The board approved modifications to 9 of the objectives. Superintendent Olson-Skog reported that the district’s implementation targets for the 2023-24 school year have been completed.

Goal 2 - The superintendent will oversee the communication of the two requested levies.
This goal is complete. Support for the technology referendum was predicted to fall between 55 and 59 percent.  The end result was 66 percent approval. Support for the operating referendum was predicted to fall between 51 to 55 percent.  The end result was a 60 percent approval.
 

Goal 3 - Based on the referendum's outcome, the superintendent will oversee the budget planning and/or adjustments for the 2024-25 school year as required within the parameters of board policy and in alignment with the strategic framework.
This goal is complete. The administration has developed a budget that falls within the parameters set by the board. Further, the developed budget supports both the strategic framework and the priorities communicated to the community for usage of the dollars generated through the referendum the community approved in the Fall of 2023.

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Adjournment
The motion carried (6-0).