April 8, 2016 at 4:00 PM - Superintendent's Weekly Update to the Board of Education

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To begin my weekly letter here is some positive news.  18 of our students have been chosen to receive a free computer for their essay writing submitted to Minnesota Computers for Schools!

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Four of our seniors and their parents will attend Resource Training & Solutions 29th Annual Students of Excellence Banquet and Recognition Ceremony on Wednesday, April 27.  They are Ben Borash, Abby Ellerbusch, Krista Kasella, and Autumn Lanners.  

This school year we added Royalton School District's participation in Resource Training & Solutions ceremonies for teachers and support staff.  We also think it's important to now add this year our participation in the Students of Excellence.  You can see attached a 2015 photo album of the area school students, parents, and school admin.  

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Please read the attached MSBA article Addressing Complaints About Coaches:  When Parents Cry Foul to the School Board a minimum of two and preferably three times.  This is exactly what you as a board member and the Royalton School District is facing with some of our coaches and athletic programs.

Jim called MSBA earlier this week and visited with them about our situations with athletics and coaches.  What he heard from the two people he spoke with is board members and the Superintendent have done everything correctly in the wrestling situation.  He was also told the decisions board members need to make is not about popularity but instead voting your conscience.  In regard to whether or not the school should have addressed the Royals Wrestling Club and coach Jim was told it's your obligation.

What jumped out for me in the article?

Page 1

"an agenda item about a coach-related dispute is a sure way to test the maximum capacity of a board meeting room."

"School boards can face various coaching-related issues, ranging from allegations that a coach is abusing athletes, either verbally or physically, to general unhappiness about playing time or roster decisions."

Page 2

"When these issues arise, school board members find themselves in the middle of a number of competing interests of the general public, parents, student-athletes, coaches, and even school district administration."

"As with other personnel issues, any complaints about school district employees should, if possible, be handled at the administrative level and only proceed to the school board if board action is necessary."

"Ultimately, an investigation into allegations against a coach is not a popularity contest to determine the coach's future.  Rather, the school district must take appropriate action that is best for the school district and the student-athletes involved."

Page 3

"Personal attacks, jeering, or other disruptive behavior should not be allowed and can result in removal of the offender from the meeting."

"Although school board members may feel that they are forced to choose between supporting a district employee and being responsive to the wishes of the district's residents, the reverse is also occasionally true.  In some instances, the public may exert pressure on the school board to retain a popular and successful coach despite evidence of misconduct.  In either situation, school boards must act appropriately in the best interests of the school district."  

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Please see attached the synopsis of the MSHSL Board of Directors meeting held on Thursday, April 7, 2016.  You will see the following on page 3:

ELIGIBILITY COMMITTEE
• The Eligibility Committee minutes were approved as presented.
• The board approved minutes from the committee’s meeting on March 16, 2016

By the MSHSL Board of Directors approving the Eligibility Committee minutes they approved censoring Terry Goercki.  You can see a bit more of the specifics in the other two attachments.  They censored Terry for violating MSHSL Bylaw 307.00 Undue Influence on Students.

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Please read through the attached documents regarding the confidential personnel item.

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Please see the estimated interest income is now up to $95,210.66.  The original portfolio interest income estimate was $74,904.90.

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Please see attached the minutes from the bi-weekly construction meeting on March 22, 2016.

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Please refer to the attached documents as I explain the game plan to address facility needs at both of our elementary and MS-HS.

Attachment 1:  Board Approved Updated Construction Budget on 11-23-16  

You will recall bid packages 1 and 2 were good to us, but not so in bid package 3.  Bid package 3 created a $2,046,167 gap between available and needed dollars.

We had to take the following out of the planned construction project:  1)  MS-HS display and trophy cases $60,665, 2) MS-HS cooling to kitchens $52,752, 3) MS-HS cooling to shop area $56,560, and 4) MS-HS upgrade existing controls to DDC $395,360.

The following items were rescheduled to be completed in a mulit-years plan with future facility dollars:  1) ES and MS-HS reroofing $828,000, and 2) MS-HS replace carpet with terrazzo $198,000.

The following items were to be completed in a multi-years plan with future capital outlay dollars:  1) ES playground $150,000 and 2) ES sensory room $25,000.

Attachment 2:  Springsted - Financing Options for Minnesota School Districts

Please see a one-page communication letter from Springsted regarding the new long-term facilities revenue program.  This program rolls current deferred maintenance revenue, health and safety and alternative facilities revenues into a new long-term facilities maintenance revenue program.  To receive long-term facilities maintenance revenue for any fiscal year a district must submit a ten-year facility plan adopted by the school board to the Commissioner of Education.

IMPORTANT:  This new state Long-Term Facilities Maintenance Revenue Program goes into effect this coming July 1, 2016.  This is the 3rd huge financial piece to support Royalton Schools and other like districts.  You will remember the state did the $300/pupil in year one, $424/pupil in year two, and now facilities dollars in year three.  As important to receiving the necessary dollars to operate Royalton Public Schools are the equalization dollars that come with it from the state.  The $724/pupil is approximately a 50/50 split between local levy and state aid.  The facility dollars is approximately 2/3 state aid and 1/3 local levy.

Long Term Facilities Maintenance (LTFM) Funds

Current System for Royalton Schools (old law)
Deferred Maintenance and Health & Safety levies for 14 pay 15 were $68,956.  This was mostly all local levy paid with very minimal state aid.  

New System for Royalton Schools (new law July 1, 2016)
Long-Term Facilities Maintenance levy replaces them for 15 pay 16 is $65,545.13 AND there will be new state aid attached to it in the amount of $136,062.67 for a total of $201,607.80

If you calculate it out you will see that it's approximately a 1/3 local levy and 2/3 state aid split.  What does this mean?  The local taxes actually drop ever so slightly while the available dollars to the school district triples. For the current year, the LTFM levy is close to the same as the old Health and Safety/Deferred Maintenance levy. In future years, as the formula amount of LTFM increases, the levy amount will increase as well.  However, it is expected to remain approximately 1/3 local levy and 2/3 state aid.

Here are future years:

FY 18 $191,800
FY 19 $271,000
FY 20  $282,000
FY 21  $293,000
FY 22  $304,000
FY 23  $315,000

Note:  We're holding back $35,000 each year for regular ongoing health and safety costs (e.g., annual fees to McNeil Environmental).  The $35,000 was already deducted from the above numbers.

Attachment 3:  Facilities Dollars (State Aid and Local Levy)

This is a report to illustrate both of the local levy and state aid dollars for the LTFM funds. 

Attachment 4:  Deferred Maintenance Needs at MS-HS

I completed a MS-HS building walk-through last week with Joel and Tony looking for maintenance items we need to complete over the next 10 years.  All schools need to submit a 10-year plan to the state for the LTFM funds.  I cannot say this is a complete list yet or it will not be revised as early as next fall - that's how it goes with school buildings and our own homes.

You will see in the attached document several of the items are carpet and tile replacement; new lights, ceiling tiles, and grids; and refinishing/repainting doors and frames.  There will be some HVAC and other items we need to get documented.  The expensive item we need to complete at the MS-HS is upgrading the existing controls to DDC for about $395,360.     

Deferred Maintenance Needs at Elementary

I completed an elementary building walk-through this week with Phil, Mike and Tony looking for maintenance items we need to complete over the next 10 years.  I will not have the list ready until the early part of next week.  Similar to the MS-HS the needs are mostly carpet and tile replacement, new lights, ceiling tiles, and grids.  Mike did say we'll need a new boiler sometime after 5 years.  Again, I cannot say this is a complete list yet or it will not be revised.

Attachment 5-7:  Roof Priorities for MS-HS
Please see attached the priorities of roof replacements and the associated estimated costs at the MS-HS.  You will see there are several that need to be completed right away.  And there are a few that can wait 5-10 years.  We will use the new Long-Term Facilities Maintenance (LTFM) revenue to pay for them.

Roof Priorities for Elementary 

We asked Roof 1 to come back and complete the same analysis and write a report for our elementary school building.  They will have back to us a report next week.

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Mary and I are proposing the school district bond for the attached projects using future Long-Term Facilities Maintenance (LTFM) funds to repay the debt.  Springsted prepared for us a breakdown of the costs to borrow $2 million for 15 years.

A few things you will notice on page 2 of the attached document:
1.  The AIC of 2.1909272% is the total cost inclusive of all issuance fees and interest.
2.  Each year after paying the P+I we will have a healthy surplus of LTFM revenue to work with for the unknown but upcoming needs.

For example, in 2021...

Principal is $130,000
Interest is $  29,572
Total P+I is $159,572

Estimated LTFM Revenue for 2021 is $392,388

Surplus is $392,388 - $159,572 - $35,000 set aside for Health and Safety = $197,816 

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As I have been working on a plan for the Long Term Facilities Maintenance (LTFM) revenue, I thought I'd remind you of the breakdown of local levy and state aid for the construction project.  The debt service is broken down into approximately 1/3 state aid and 2/3 local voter approved levy. The local levy portion is further reduced as by state tax credits.

The new Long Term Facilities Maintenance (LTFM) revenue replaces the old health and safety and deferred maintenance dollars that were mostly all local levy.  Not only did the state strongly support school district's ability to raise the dollars needed to maintain and repair their school buildings, but it also added state dollars.  Here at Royalton Schools the state will pay approximately 2/3 of the LTFM revenue and locally we pay 1/3.  Great deal!   

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Please see attached an email from Dr. Larry Lundblad, President of Central Lakes College.  The concurrent enrollment debate around the state is a very big deal.  In a nutshell Minnesota State Colleges and Universities (MNSCU) has been told classes that earn students college credit must minimally be taught by teachers with a masters degree in their content area or a masters plus 15 credits in their content area.

This will affect teachers at Royalton High School.  For example, Mr. Schoenrock has been teaching concurrent enrollment classes for Beginning College Level Algebra, College Algebra, and Pre-Calculus.  Our students earn both a high school grade and a Central Lakes College grade and credits. Mr. Schoenrock has a masters degree in teaching and learning but not specifically in his math content area.  In order for our students to continue earning college credit Mr. Schoenrock will have to take 15 additional college credits in math.

Again, we are not the only school district affected by this issue.  In fact, the majority of the schools in Minnesota are affected.  The state, MNSCU and Department of Education are working together on figuring out a plan to meet the accreditation guidelines while at the same time making the requirements attainable and affordable for high school teachers. 

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Please see Mr. Bratsch's Green Fair invitation to teachers.  I encourage you to attend the event on May 4 from 6:00 PM to 8:00 PM.  It will be located at the Royalton High School.  

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Please see attached the weekly bills for your approval.