Public Hearing to Adopt the 2005/2006

Annual School Budget and Millage Levy, and

Special School Board Meeting Minutes

Tuesday, September 6, 2005 – 7:00 p.m.

School Board Meeting Room

Stuart, FL 34994

Members Present

Susan Hershey – Chair

Lorie Shekailo – Vice-Chair

Dr. David Anderson

Laurie Gaylord

Nancy Kline

Dr. Sara A. Wilcox, Superintendent

Tom Elfers, School Board Attorney

Kristin Conrad, Student Representative (JBHS)

Members Absent

Staff Present

Darla Miloszewski, Deana Newson, Rodger Osborne, Dr. Frank Raffone, Cathy Brennan, Ruth Pietruszewski, Dr. Joyce Holmes, John Klatt, Darrell Miller, Willie Sauls, Julie Sessa, Marshall Skinner

Public

Al Forman, Georgianna Ginger, Patti Winterburn

Press PBPost – Mike Bender Stuart News – Kelly Tyko

MCEA – No Representation AFSCME – No representation

Call to Order by the Chair at 7:00 p.m. and Pledge of Allegiance to the Flag of the United States.

Sue Hershey requested to move under Finance, Items 9A through 9J, to the first item on the agenda.

Lorie Shekailo made a motion to modify the agenda and move Items 9A-J under Finance to the first item, Nancy Kline seconded, and the motion carried unanimously

Sue Hershey asked if anyone in the public would like to speak. Al Forman, a Palm City resident, requested to address the Board.

• Al Forman expressed his opinion on Martin County government taxes. He compared the School Board, State, and County taxes. He also gave his opinion on the ½ cent sales tax. Lorie Shekailo explained to Al Forman that the state sets the millage rate by a formula. Al thanked the Board for educating him on the way the taxes were established.

PUBLIC HEARING TO ADOPT THE 2005/2006 ANNUAL SCHOOL BUDGET & MILLAGE LEVY

1. Public Hearing on proposed FY 2005/2006 Final Annual Budget

Darla Miloszewski explained the roll back rate, which the law requires her to do. The rollback rate is what millage rate it takes to get the same revenue as last year given the new tax roll. The rollback rate for basic discretionary is 0.454, supplementary discretionary is 0.053, capital outlay is 1.779, and the local board millage is 2.286. The proposed millage is 8.1% over the rollback rate. Lorie Shekailo stated that the millage rates are set by the state. She continued to explain that there are not many options with what the taxpayers are charged. Darla informed everyone that if the local millage was not adopted, then the District doesn’t share in the states’ FEFP revenue. Dr. David Anderson stated that the School Board portion of the total county millage had decreased. All the increases were done throughout the County. The overall package was lower than last year’s taxes.

2. Adoption of Millage Rate for FY 2005/2006:*

A. General Fund

1. Proposed Millage of

a. Required Local Effort of 4.681

Lorie Shekailo moved approval of the Required Local Effort of 4.681, Nancy Kline seconded, and the motion carried unanimously

b. Discretionary of 0.510 mills

Dr. David Anderson moved approval of the Discretionary of 0.510, Laurie Gaylord seconded, and the motion carried unanimously

2. Adoption of Millage Rate for FY 2005/2006:* (Con’t)

c. Supplemental Discretionary of 0.109

Laurie Gaylord moved approval of the Supplemental Discretionary of 0.109, Nancy Kline seconded, and the motion carried unanimously

B. Capital Outlay

1. Proposed Millage of 2.000 mills

Lorie Shekailo moved approval of the Proposed Millage of 2.000 mills, Nancy Kline seconded, and the motion carried unanimously

3. Adopt Final Budget for FY 2005/2006:

Dr. David Anderson moved approval to adopt the final budget for FY 2005/2006, Lorie Shekailo seconded, and the motion carried unanimously

Board members discussed how they go through this same process every year. Sue Hershey stated the only millage the Board sets is the 2 mills, and that is what has kept us debt free for all these years. Darla explained that the reason the Board has done this every year is because of the TRIM law, not because of the Florida State Department of Education.

Sue Hershey adjourned the public hearing at 7:20 p.m.

SPECIAL SCHOOL BOARD MEETING

Call to Order by the Chair at 7:22 p.m.

1. Adoption of the Agenda:*

A. Additions, Deletions or Amendments to the Agenda

Dr. Sara A. Wilcox asked to remove Item 12, the Hope Center 2004-2005 Annual Progress Report.

Dr.David Anderson moved approval of removing Item 12, Nancy Kline seconded, and the motion carried unanimously

Nancy Kline moved to postpone a vote on Item K, under Finance, and asked to place the item on a future agenda. Sue Hershey said she would like to discuss the item. Nancy Kline changed her motion to postpone the vote, but not the discussion. Sue Hershey moved to place Item K on the next School Board Meeting on September 20^th for consideration at that point in time. Laurie Gaylord requested that a Special School Board Meeting be called, since she will not be able to attend on the 20^th. Board members discussed dates for a Special School Board Meeting. Board members came to a consensus that the Special Meeting would be held after the Republican Luncheon at 2:00 p.m. on September 12^th. Sue Hershey asked if the Board would like a workshop on this item for discussion or take action. Lorie Shekailo stated that she thought the purpose of calling the Special Board meeting was to take action. Sue Hershey scheduled the meeting for September 12^th at 2:00 p.m. She asked Dr. Sara A. Wilcox if that was enough time to give the public notice. Dr. Sara A. Wilcox replied yes. Hank Salzler asked if the meeting would still be held on September 20^th. Dr. Sara A. Wilcox answered that the regularly scheduled meeting on the 20^th would remain the same.

Lorie Shekailo moved approval of the changes, Nancy Kline seconded, and the motion carried unanimously

B. Approval of the Agenda

Lorie Shekailo moved approval of the modified agenda, Nancy Kline seconded, and the motion carried unanimously

2. Declaration of Emergency:*-(COPY ATTACHED)

Dr. Wilcox explained that the District had declared an emergency when it looked like Martin County may get Hurricane Katrina. That was done to be prepared if the hurricane hit, so that contractors could assist the District with the storm. Board members discussed the update on Tropical Storm Ophelia.

Lorie Shekailo moved approval of Item 2, Laurie Gaylord seconded, and the motion carried unanimously

3. Open to the Public:*

• Georgianna Ginger discussed an ESE issue.

4. Removal of Items from the Consent Agenda:* None

5. Approve Consent Agenda:*

Lorie Shekailo moved approval of the Consent Agenda, Dr. David Anderson seconded, and the motion carried unanimously

6. CONSENT AGENDA

A. Renewal Agreements:*

1. Approve Florida College Entry-Level Placement Test Agreement between Indian River Community College and the School Board of Martin County, FL-(COPY ATTACHED)

B. Personnel Items:*

1. Approve New Job Descriptions

a. Building Official –(COPY ATTACHED)

b. Substitute Bus Operator- (COPY ATTACHED)

2. Leaves Authorized by the Superintendent – (COPY ATTACHED)

7. Items Removed from the Agenda:*

Dr. Sara A. Wilcox asked to remove Item 12, the Hope Center 2004-2005 Annual Progress Report. Nancy Kline requested to postpone the vote on Item K under Finance but to have a discussion on the subject.

8. Construction:*

Dr. David Anderson moved approval of Item 8, Lorie Shekailo seconded, and the motion carried unanimously

A. Approve Change Order #1 to Property Solutions for Roofing Repairs at

Crystal Lake Elementary Bid #05-0333-(COPY ATTACHED)

B. Approve Report of Change Orders under $25,000- (COPY ATTACHED)

C. Approve Reduction in Retainage from 10% to 5% for Subcontractors Working for the Morganti Group, Inc. at J.D. Parker Replacement School-(COPY ATTACHED)

9. Finance:*

Lorie Shekailo moved approval of Item 9, Nancy Kline seconded, and the motion carried unanimously

Sue Hershey asked Lorie Shekailo to take the lead on discussing Item K. In consideration of the people sitting in the audience, Lorie asked if the Board would finish the agenda and hold this discussion last.

A. Approve Purchase Orders / Contracts – (COPY ATTACHED)

B. Approve Superintendent’s Annual Financial Report (ESE145) FOR 2004-2005

and Approve Report of Financial Data to Commissioner of Education

(ESE348) for 2004-2005 - (COPY ATTACHED)

C. Approve Final Budget Amendment #05-4903 for Miscellaneous Special

Revenue Fund 2004-2005- (COPY ATTACHED)

D. Approve Final Budget Amendment #05-8504 for Private Purpose Trust Fund

2004-2005- (COPY ATTACHED)

E. Approve Final Budget Amendment #05-8704 for Pension Trust Fund

2004-2005- (COPY ATTACHED)

F. Approve Final Budget Amendment #05-4211 for Special Revenue Fund

2004-2005- (COPY ATTACHED)

G. Approve Final Budget Amendment #05-4111 for Food Service Fund

2004-2005- (COPY ATTACHED)

H. Approve Final Budget Amendment #05-312 for Capital Fund 2004-2005-

(COPY ATTACHED)

I. Approve Final Budget Amendment #05-201 for Debt Service Fund 2004-2005-

(COPY ATTACHED)

J. Approve Final Budget Amendment #05-112 for General Fund 2004-2005-

(COPY ATTACHED)

K. Comparison of COP versus Sales Tax Effect on Construction Cost Increase-

Darla Miloszewski (Exhibit to follow)

10. Bid Recommendations:*

Nancy Kline moved approval of Item 10, Dr. David Anderson seconded, and the motion carried unanimously

A. Approval to Piggyback RFP

1. School District of Suwannee County RFP # 04-206 for Various

Modular Buildings, Delivery and Installation –(COPY ATTACHED)

11. Approve Clark Advanced Learning Center 2004-05 Year-End Report-(COPY ATTACHED)

Lorie Shekailo moved approval of Item 11, Dr. David Anderson seconded, and the motion carried unanimously

12. Approve the Hope Center 2004-2005 Annual Progress Report-(REMOVED FROM THE AGENDA)

9. Finance:* (Con’t)

K. Comparison of COP versus Sales Tax Effect on Construction Cost Increase-

Darla Miloszewski (PULLED FOR DISCUSSION)

Board members moved to the discussion on Item 9K, under Finance. At the last meeting, Lorie Shekailo requested a time value of money analysis of the cost of inflation in terms of waiting for a sales tax referendum passed versus the cost of interest versus the cost of going out and getting a C.O.P. She explained that it is difficult to compare, since sales tax revenue is a new stream of funds coming in and C.O.P.s is using our existing revenue. From Lorie’s analysis at a 20% inflation rate the cost of the interest on the C.O.P. is very close to the break even point with the cost of the inflation on the sales tax, discounted back to today’s dollar. What happens with the COP, she explained, was that because you are paying the principal out of project capital, as the rate of inflation increases elevating your cost of construction, the costs of the projects you can’t do, because you are paying back the COP also goes up. A new revenue source will always look better than using your existing funds. In Lorie’s opinion, the Board needs to decide if there is a need for additional financing. If there is a need for additional funding, the Board needs to decide if they want to bear the costs from the District’s funding, the 2 mill money, or go to the taxpayers. All the financial experts she spoke with stated that if the rate of inflation of construction costs is higher than the rate of borrowing, it is better to borrow. Sue Hershey stated that the Class Size Amendment is driving this train. Construction needs exceed the

9. Finance:* (Con’t)

K. Comparison of COP versus Sales Tax Effect on Construction Cost Increase-

Darla Miloszewski (PULLED FOR DISCUSSION)

state’s current ability to fund. The responsibility is passed down to the local districts. Nancy Kline stated that we were in good shape with capacity at schools. The District only had an increase of 100 students. Lorie Shekailo stated that if the Board wanted to do a sales tax, they had to get moving on it right away. Sue Hershey informed the Board that the earliest they could take a sales tax to the voters was March of 2006, unless you did a special election. The earliest the revenue could be collected would be January 2007. Dr. David Anderson felt there was not much likelihood that voters would pass a sales tax. Lorie Shekailo said the financial advisors felt the most financially feasible would be to do a C.O.P. and then do the sales tax to pay off the C.O.P. Sue Hershey advised Board members to contact Darla if they had any more questions.

13. Open to the Board:*

Lorie Shekailo

Had the pleasure of attending the JBHS football game. JBHS won their first game. She stated that

her jury duty experience was worth while. She served on the BINGO robbery case. They convicted the suspect.

Kristin Conrad

Stated that JBHS won their first football game. She announced that all the high schools were

planning their homecoming events.

Nancy Kline

Congratulated parents, teachers, and students on the outstanding SAT scores. She was pleased that

the Clarke Advanced Learning Center provided remarkable statistics for the first year. She stated that the Facility decisions were critical. She appreciated looking at additional data to make a decision on COPs or sales tax on September 12^th.

Sue Hershey

Thanked Lorie Shekailo and Darla Miloszewski for all the work done on preparing analysis on COPs and sales tax. She announced that the United Way pledges were in the Board’s packets. She informed Board members that she was part of a group of citizens that were going to adopt a community in Jackson County, Mississippi, to help them after Hurricane Katrina. She stated that the SAT scores were fantastic. Board members discussed what each of them would speak on at the Republican lunch on Monday, September 12^th. Sue Hershey warned them that they could not speak on items that were issues they would be voting on, pursuant to the Florida Sunshine Laws. They would speak on state issues, such as the Jessica Lundsford Act.

Dr. Sara A. Wilcox

Recommended that Board members explain the millage at the luncheon. Many citizens do not understand how the roll back is calculated. She felt if citizens did not understand the concept, they would forget. She agreed to speak on the state of the school.

Sue Hershey

Thanked Cathy Brennan for the outline she prepared highlighting positive facts about Martin County

School District. She suggested they use this as a guide for talking issues.

Dr. Sara A. Wilcox

Reported that all of Martin County’s high schools won their football games. She was at Martin County High School. She informed the Board that the District is doing a fundraiser for relief efforts in the Gulf States, similar to the one done for the Tsunami last year. She continued by saying that maybe the District could assist with adopting the County of Jackson, Mississippi.

There being no further business to bring before the Board, the meeting was adjourned at 8:10 p.m.

_______________________________

CHAIR (Sue Hershey)

_______________________________

SECRETARY (Sara A. Wilcox, Ph.D.)