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Thursday, September 02, 2010
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| | Email this article • Print this article | School Board received year-end audit; contracts to cut energy costs
BY DENISE MARTIN
north branch school board dec 18
The North Branch School District Fund Balance (unreserved) is at a 10-year low. The School Board heard from Larson Allen CPA Dennis Hoogeveen last week that this was one financial issue, among others, that the district needs to deal with.
Hoogeveen remarked that he wasn't telling the School Board anything it didn't already know, considering budgets have been drafted to allow spend down of balances. Unfortunately, "this is coming at a time when not a lot of help" can be anticipated from federal or state education funding streams, he added.
The 2007-2008 school year audit was presented by Hoogeveen, a CPA and accepted by unanimous vote of the Board.
District Financial Director Randi Johnson was applauded for her ability to bring in last year's budget so close to actual expenditures. Hoogeveen said the budget was within 1.5 percent.
Aside from drawing on balances, North Branch has another fiscal red flag to remedy, that being high costs in energy consumption. This was an issue the Board did get to tackle last week.
The Board unanimously agreed to contract with a firm that initiates energy savings programs for school districts. The Schools for Energy Efficiency approach is already used in 500 school buildings in other districts and has a track record of lessening district energy expenses by 12 percent average annually.
The company contract is $36,000 annually for materials and "strategy" consultation, plus a district conservation coordinator who is budgeted at $10,000 and contracts are usually two-year minimum. (The actual contract wasn't available for the Board to review because legal was still working on the document.)
Company representative Doug Karnuth estimates North Branch's annual energy savings around $40,000-- after the contract program costs are deducted. Board Chair Kim Salo asked what happens if the cost of the contract exceeds savings. "If you follow the program you will see these savings," Karnuth responded.
North Branch's overall cost per square foot for energy is $1.32. According to Karnuth most districts in the program have contained costs to $1 or less per square foot.
North Branch has a natural gas and electric bill of $863,079 per year.
In other matters:
The Board voted 4-2 to accept the bus driver contract. Over the two years of the agreement the wages and benefits are increasing a total 6.8 percent. Board members Hubbard and Setter were the no votes, due to budgetary impacts.
The Board accepted web and internet guidelines that specifically spell out who and what information/pictures gets accessed through the district's website and how the internet is to be used generally within the educational environment. The Internet Policy was a first reading and will be acted on at a future meeting.
The district will get three new buses from Superior, paid for in next year's budget. The lowest bid was about $100,000 per bus.
Finance Director Johnson said the bus replacement is running a 12 to 13 year cycle. Board member Setter asked what would happen if the state reduces school aid and Johnson said this is the bare minimum the district must have "...any fewer and it becomes a safety issue. I am asking for three we need five."
AD Leuer also reported the Minnesota State High School League is forwarding $2,950 to the district as a grant based on free or reduced lunch student numbers. Leuer said the funds go to help kids participate in activities. The demand for assistance to help pay fees and other expenses is "greater than ever," Leuer added. This MSHL sum is in addition to donations from the McKusick and Lindhart families, creating a scholarship account of approximately $4,000.
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