East Suburban Resources Award: Anna Klemmensen, Sales Executive and Consultant for East Suburban Resources presented an award to the school district in recognition of the district’s efforts at employing adults with disabilities. The Director of Human Resources and Legal Services Mark Porter accepted the award on behalf of the district. Katie Kimlinger, employed in the Human Resources department as an office assistant thanked the board for the opportunity to work in the district. The district was recognized for the award at an earlier event along with other community partners who work to ensure employment for those seeking the support of ESR.

Ron Kath and Tom Nelson recognized residents Leslee Boyd, Michelle Swarmer-Witte, John Norris and Tori O’Hare for their efforts in leading the district’s citizens in a positive referendum campaign – for the second year in a row. The efforts of this team were time-consuming and professionally done. The impact of their positive efforts not only makes a difference for the district’s existing students, but of many students into the future.

Fall Activities Wrap-Up – Both Park and Woodbury High Schools Activities Directors were present to share with the district an update on the fall activities. John Soma stated that the highlights for WHS were the addition of Marching Band; State Gold Academic Award Winners, SEC Champions, Section 4AA Champions and 3rd place in the State Class AA tournament were the accomplishments of the Girls Soccer Team; Volleyball received SEC Championship, Section 3AA Championship, and 4th place for the State Class AAA tournament; Girls Swimming and Diving were Conference Relay Champions, Section 3AA Champions, Section Academic Team, 6th Place for State Class AA and Val Bald received the Section Diver of the Year and 3rd place at State; and the Swimming and Diving Coaches, Rick Light and Marty Hoven, were named section coaches of the year. In addition, a record 36 students were named All Conference Athletes.

PHS highlights were the addition of the synthetic turf; the Girls Soccer team ranked in the top five in the state; Tyler Kennedy was named SEC Defensive Player of the Year for Football, the Adapted Soccer team participated in the state tournament; Nicole Westphal was a state meet participant in Cross Country; Academic All State went to Nicole Westphal, Tyler Kennedy, Jenni Oppold, Jackie Voigt, Ashlee Wittenberg and Jaymee Ostrom; All State was awarded to Jackie Voigt and Brianna Westlund; Brianna Westlund was also named Pioneer Press Player of the Year and High School All-American; and the school served as a host site for state tournament games in soccer and football.

Tom Nelson shared the award of the Certificate of Excellence in Financial Reporting given by the Association of School Business Officials International (ASBO) for the first time with the 2005-06 audit. The district received the award following the last audit and was one of only 17 Minnesota districts to receive this national award. The district is again applying for this award based on the continued strength of the district’s finances and the results of the 2006-07 audit.

The consent agenda was approved. The agenda included employee resignations, terminations, leaves and new hires; financial transactions; acceptance of gifts; extended field trips; change orders for design and recommissioning at CGJH and LJH, ventilation improvements at WHS, fire alarm replacement at CGJH and LJH, and PHS track and stadium reconstruction.

Amy Schultz, Director of Finance, presented information relating to the 2006-07 Comprehensive Annual Audit of the district’s financial statements for fiscal year 2006-2007. Jim Eichten, Principal with MMKR (Malloy, Montague, Karnowski, Radosevich & Company) – the district’s auditing firm, shared again the status of the district’s audit as being positive and of the district being in strong financial condition. This information was presented to the School Board in detail at their Dec. 4 workshop. A summary of the opinions and findings include:

**An unqualified opinion was issued on the district’s annual financial statements.

**No matters were noted involving the district’s internal control over financial reporting that was considered to be significant deficiencies or material weaknesses.

**The results of the testing disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

**It was noted that the Schedule of Expenditures of Federal Awards is fairly stated in relation to the basic financial statements.

**The results of the tests indicated that the district has complied with the requirements applicable to each major federal program.

**No matters were noted involving the district’s internal control over compliance and its operation that were considered to be material weaknesses in the testing of major federal programs.

**One finding was reported based on the testing of the district’s compliance with Minnesota laws and regulations. The district does not have language in their contracts stating that contractors should pay subcontractors within 10 days of receipt of payment from the district or pay interest at 1.5 percent, per Minnesota Statute.

**As in the past, it was reported that the district’s financial records are in excellent condition.

Overall, the audit presented a financial picture of the district that shows good fiscal management of all funds – including appropriate fund balances to move the district forward. The board approved the Comprehensive 2006-07 Audit.

The board approved the Final Tax Levy for Taxes Payable in 2008 following a presentation by Amy Schultz, Director of Finance. This information was presented to the School Board in detail at their Dec. 4 workshop. As required by law, the School Board certified its proposed property tax levy for taxes payable in 2008 to the County Auditor in September of 2007. Washington County used the district’s proposed levy amount to prepare notices of proposed taxes that were mailed to each taxpayer in November. Prior to final adoption of the levy, the district is required to hold a Truth in Taxation hearing to allow for public input. Steps in Minnesota School District Property Taxes rates include:

**The city or county assessor determining the estimated market value for each property.

**The legislature sets the formulas for tax capacity, which determines how much of the tax burden will fall on different types of property.

**The county auditor calculates the tax capacity for each parcel of property in the county, as well as the total tax capacity for each school district.

**The legislature sets the formulas which determine school district levy limits.

**The Minnesota Department of Education calculates detailed levy limits for each school district based on the formulas approved by the Legislature, telling the districts the exact amounts that can be levied in every category.

**The School Board adopts a proposed levy in September, based on the limits set.

**The County Auditor divides the final levy (determined by the School Board by the district’s total tax capacity to determine the tax rate needed to raise the proper levy amount. The auditor multiplies this tax rate times each property’s tax capacity, to determine the school tax for that property.

Mike Vogel, Assistant to the Superintendent for Operations, presented information on the proposed funding plan for future alternative facilities projects. This information was also presented to the School Board at their Dec. 4 workshop. The 2006 bond referendum included funding for the replacement of mechanical systems at the secondary buildings. In conjunction with the planning for the bond referendum, administration had proposed to incorporate the replacement of mechanical systems at 10 elementary schools into the district’s 10-year alternative facilities plan. At that time, administration indicated they would work with the district’s financial consultant, Ehlers and Associates, to devise a financing plan for alternative facilities that would use a combination of alternative facilities bonding and annual pay-as-you-go levies to pay for the on-going deferred maintenance projects and the elementary school mechanical systems replacement. The goal was to arrive at a financial plan that would allow for the work to proceed without increasing the annual capital and debt levies to taxpayers.

The financing plan proposed by Ehlers shows three bond issues beginning with the first in 2008 for $11,250,000, the second in 2010 for $12,500,000 and the third in 2013 for $3,400,000. The proposed payment schedule for the three bond issues combined with the non-debt levy for alternative facilities and the districts existing commitments for capital and debt levies will result in a stable tax rate over the next 10 years at which time the tax rate will decline moderately. The School Board is also required to approve a resolution of intent regarding the sale of alternative facilities bonds.

The purpose of the report is to provide information relative to the merits of the financing plan, not to seek board approval of the alternative facilities project list. The board will have an opportunity to review the 2008-09 projects when the 2008-09 alternative facilities budget is brought for approval in March of 2008. The board is also required to approve a 10-year alternative facilities plan every other year. That will be brought before the board prior to setting the 2009-10 preliminary levy in September of 2008. The proposal was approved.

The board approved the Bid Awards for East Ridge High School following a presentation by Mike Vogel, Assistant to the Superintendent for Operations. The approval is for Bid Package #4 – the largest portion of the construction for East Ridge High School. There are 42 different bid divisions contained in Bid Package #4 representing approximately $40 million in construction costs. Kraus-Anderson reviewed the bids on a priority basis in accordance with the construction schedule and lead times for material delivery. The 15 awards equal a total of 33 contracts. Evaluation is continuing on the remaining eight divisions of work and contract award recommendations will be included in the Dec. 20 or Jan. 10 board packets.

Each bid was evaluated for completeness and compliance with the specifications. When bids were found to be incomplete, contractors were provided the opportunity to withdraw their bid. When bids were found to be noncompliant, they were rejected. The award recommendation is the lowest responsive and responsible bidder meeting the specification requirements. The recommended awards for the 15 contracts total $7,952,568 which is below budget. Board approval will allow the work to proceed in a timely manner. Funding is provided by the 2006 bond referendum.

Mark Porter presented an extension to the contract for Superintendent Tom Nelson. The extension was approved and is effective from July 1, 2008 through June 30, 2011. All terms and conditions of employment remain unchanged from the current contract excepting an adjustment of the employer contribution toward health insurance as previously approved by the School Board on Oct. 16, 2007 and annual salary increases of 2.5% each year effective 7/1/08, 7/1/09 and 7/1/10.

The district is proposing the lease of space to accommodate the needs of the High School Transition Program. Erin Metoxen, Director of Special Services, and Mike Vogel presented information on the space needs for the High School Transition program. Transition services are required by the State of Minnesota (Rule 3525.2900). The goal is to bring the two transition programs (Park High School CHOICES and Woodbury High School BRIDGES) to one location and not located within a high school. The program is designed for students between the ages of 18 – 21 who meet special education eligibility criteria. Students attending this program commonly attend public school through age 21. They have already had four years of high school experience and have a need to move to a more adult setting that promotes acquisition of functional living skills to complete their transition goals and objectives. Historically, these students have attended their home high school for up to seven years.

The goal of the Transition program is to provide a community and life-based educational model, separate from the high school setting. Program focus is on transition goals, individualized for each student. Students develop and utilize support in the community that will be critical for them in their adult lives. Opportunities are provided for learning to be community based through the transition domains: vocational, home living, community participation, recreation/leisure, and post-secondary education. The proposal for lease will come before the board on Jan. 24 at their regular meeting.

The 2008-2009 Budget Calendar was presented by Amy Schultz. The School Board will be required to adopt the final budget by June 30 for the fiscal year beginning July 1. In the past, our district has approved the budgets for the different funds on various dates. This allows the directors of those budgets enough lead time to follow bid laws and have work done throughout the summer when school is not in session. All budgets will go through two consecutive readings with the School Board with the second reading as an approval.

During the reports, the Superintendent, School Board members and Student Representatives shared many successes, highlights and events that have been or are scheduled to take place across the district.

Future Board Meeting Dates are: Dec. 20 – Special Meeting (time TBD); Jan. 10, 2008 – Workshop (6 pm); Jan. 16, 2008 – Joint meeting of the School Board and the Woodbury City Council (6:30 pm); Jan. 24, 2008 – Regular Board Meeting (7 pm)