School board OKs budget at $19 million

McCook Public Schools' board of education members unanimously approved a $19 million budget and a $1.22 tax levy at their monthly meeting Monday evening.

In an effort to make the school more proactive about budgeting for major expenses, business manager Rick Haney presented the groundwork for a "strategic planning" process that would create a depreciation fund/savings account for such things as air conditioning and kitchens.

Budgeted expenses for 2007-2008 are projected at $19,071,309. That's an increase from $16,398,457 in 2006-2007.

For ease of presentation, Haney condensed the district's 150-page budget into categories:

* Salaries and benefits, $11,090,000; and

* Expenses in support of staff (such as building budgets, the gift program, health services, fuel, technology, vehicles and early childhood): $3,601,500.

The adopted budget will require $4,555,700.78 in taxes for the general fund and $494,063.72 for the McCook Elementary bond fund; those two figures total $5,049,764.50.

The tax levy for the general fund is $1.082353, and for the bond fund, $0.139115, for a total tax levy of $1.221468.

That compares to $1.052440 for the general fund in 2006-2007. The bond levy remains the same, bringing the total tax levy for last year to $1.191555.

Haney said a couple cents' increase in the tax levy is necessary to recover from last year, when revenues flat-lined and expenses increased by $500,000. "This year, to recover, we're asking for an additional couple pennies to restore the health of the district," Haney said. The two-cent increase generates about $116,000, he said.

Another penny is to pay for an increase from $44,000 to $79,000 in voluntary retirement benefits for teachers, Haney said.

Haney explained to board members that the lack of a long-term plan means that board members are budgeting for large purchases each year. His depreciation fund/strategic planning process -- originally suggested during finance director Carl Philo's time in the office from 1986-1998 -- would set aside money each year for major purchases and projects in a depreciation fund.

As an example, Haney said, air conditioning in the junior and senior high building will cost about $260,000. He suggests putting aside $100,000 in 2008, $80,000 in 2009 and $80,000 in 2010, and then putting in the air conditioning.

Central Elementary needs a full-preparation kitchen, estimated to cost $90,000. Haney suggests setting aside $30,000 in each of the next three budgets, and building the new kitchen in 2011.

The high school track will need to be rebuilt in 2015 at a cost of $105,000, so Haney suggests putting aside $15,000 each year for the next seven years.

Haney's list of major projects/purchases also includes the high school parking lot, cement work throughout the school district, activity and route busses, roofing, vans and cars, junior high locker rooms and activities equipment. He suggested that board members add to/create their own lists, and create the depreciation fund -- "Plan for, and save for, expenses over time," he said.

Board member Shane Messersmith called the concept, "good common sense." Fellow board member Tom Bredvick said he sees, "no reason we can't plan for our future."

Haney said the depreciation fund will easily identify future needs of the district, rather than having them within other funds in the budget. "It's a budget with a vision," Haney said.

In other action:

* The board approved the negotiated agreement with the certificated staff of the McCook Education Association, which gives teachers an 185-day base salary increase of $525 a year, from $27,050 to to $27,575.

Several coaching and sponsorship pay schedules increased and included: head tennis and head golf (boys or girls) from 7-11 percent of the base salary to 13-18 percent; music at Central Elementary and McCook Elementary and National Honor Society, from 1 percent to 2.5 percent. Additional positions include Quill & Scroll, Computer Club and dance team, set at 2.5 percent.

There were no changes in the teachers' health insurance package.

Board president Greg Larson, whose wife teaches at McCook Elementary, abstained from voting on the contract, which otherwise passed unanimously.

* The base salary of administrators increased from $46,526 to $47,429. Mileage for administrators driving within the district increased from $495 to $600 annually, and the responsibility factor for curriculum/school improvement increased from .160 to .200.

* Board members accepted an $8,761 grant from the "Safe Routes to School" program of the Nebraska Department of Roads.

Junior high principal Dennis Berry said the money will be used by the City of McCook for curb cuts and sidewalk improvements around schools. "The city will do the work," Berry said, "and the school will benefit through safer routes for students."

Berry said the school is in the process of writing more grants, to fund more sidewalk and bike route improvements.

* Larson said that he and Mike Gonzales have been honored by the Nebraska Association of School Boards for points earned for participation in NASB activities.

Larson challenged board members to strive to be honored with the board award, presented for points earned and participation by all board members.

* Superintendent Dave Schley reported that the math curriculum adoption committee will meet Sept. 24, working on a year-long process to select new math books.

* McCook Senior High Student Council members Amy Been and Molly Peck told board members that StuCo presented "goodie bags" -- with pencils and candy -- to teachers and students the first day of school. They sponsored the first-ever StuCo "all-nighter" Saturday.

They are sponsoring homecoming "Spirit Week" activities and awarding gift certificates to StuCo concession stands and to Mac's Drive-In. StuCo members will host the homecoming dance Friday after the MHS-Aurora football game.

Board and administration comments included:

* Schley said that he and board members Shane Messersmith and Larry Shields are working to determine the future of the District 8 school building. "We're working real hard to understand their (District 8 patrons') feelings, and have compassion," Schley said.

Schley said there is little on the horizon to reopen Class I schools.

* Maintenance supervisor Chris Wallace said he was pleased with is staff who prepared a classroom, at the last minute, for the return of ag classes and FFA at MHS. Shields said he, too, was impressed with staff who got the ag room "up and going. Students are excited," he said. He also thanked Farm Credit Services for donating handbooks to new FFA members.

* McCook Elementary Principal Lynda Baumbach told board members that second grade parents have attended a reading program presentation, and presentations for third and fourth grade parents are planned.

* The board declared as surplus four light poles and lights from the former tennis courts, which have been turned into parking outside the south door of the junior high.