E.1. Informational update and progress report for the Westlake Academy Arts and Sciences Building Expansion Project.

[H.1. Discuss, consider and act regarding Resolution 26-18 awarding the project for the installation of the Westlake Pump Station Generator and approving a construction contract with C.F. McDonald Electric, Inc. for an amount not to exceed $289,468.00.]

DISCUSS, CONSIDER AN ACT REGARDING RESOLUTION 26-18 AWARDING THE PROJECT OF INSTALLATION OF THE WESTLAKE PUMP STATION GENERATOR AND APPROVE THE CONSTRUCTION CONTRACT WITH C.F.

[00:10:07]

MCDONALD ELECTRIC, INC. FOR AMOUNT NOT TO EXCEED $289,468.

I'LL. RIGHT THERE. THANK YOU, MAYOR, COUNCIL.

THIS CONTRACT IS TO AWARD FOR THE GENERATOR WIRING INSTALLATION PACKAGE.

AS YOU KNOW, THE CURRENT GENERATOR IS INOPERABLE.

IT'S MET THE END OF LIFE, AND THE SERVICE AND SUPPORT IS NO LONGER AVAILABLE FOR IT, AND IT'S IN NEED OF REPLACEMENT.

SO THE TOWN, WE PURCHASED A REPLACEMENT GENERATOR AND IT IS ON SITE, AND WE'RE READY TO INSTALL THE NEW GENERATOR.

THIS PACKAGE WE. WE BID IT OUT, SEALED BID AND WE RECEIVED FIVE BIDS FOR IT.

THE INSTALLATION OF THE NEW GENERATOR AND REMOVAL OF THE EXISTING GENERATOR IS $259,500.

WE HAVE A $30,000 CONTINGENCY. SO THE TOTAL INSTALLATION COST IS $289,500.

APPROVAL OF THE RESOLUTION AS PRESENTED WILL ALLOW AWARDING THE INSTALLATION PROJECT AND CONSTRUCTION CONTRACT WITH C.F.

MCDONALD. THE DEPARTMENT OF PUBLIC WORKS RECOMMENDS THE APPROVAL OF THE RESOLUTION AS PRESENTED.

ANY QUESTIONS? QUESTIONS FROM THE BOARD? JUST ONE.

JUST TO CLARIFY, YOU USED A THIRD PARTY TO DO THE EVALUATION.

THAT'S CORRECT. WESTWOOD AND I HAVE THEM HERE IF WE HAVE ANY QUESTIONS ABOUT THE GENERATOR PACKAGE.

ABSOLUTELY. YEAH. WHAT IS THE ANTICIPATED TIMELINE ON THE INSTALLATION? ONCE WE APPROVE THE. SO WE'VE GOT TO HAVE A PRE-CONSTRUCTION MEETING AND THEN GET BONDS OF.

CHRIS WHAT DO YOU THINK 90 DAYS? SO FOUR MONTHS. SO WE GET TO GET ALL THE PAPERWORK.

HE'S SAYING THAT, YOU KNOW, TAKE 3 TO 4 WEEKS TO GET ALL THAT TOGETHER.

AND THEN, YOU KNOW, WE'RE PROBABLY LOOKING WHAT TOWARDS CHRISTMAS.

FIRST PART OF DECEMBER BEFORE WE START THE PROJECT, WHICH IS GOOD BECAUSE WATER DEMAND WILL BE DOWN AND TAKING THE PUMPS OFFLINE TO MAKE THE CONNECTION, THE ELECTRICAL CONNECTION, IT ACTUALLY WORKS BETTER THAT WAY.

WILL THAT CAUSE ANY DISRUPTION OF SERVICE FOR THE RESIDENTS? IT SHOULD NOT. THAT'S THE GOAL IS TO COORDINATE THIS THING SO THAT WE DO NOT HAVE A PROLONGED PERIOD WITHOUT WATER SERVICE.

ABSOLUTELY. THAT IS. YEAH. ANY ANYTHING BEYOND? WELL, RIGHT NOW IT'S YES. IT'S SCARY TIMES, SO.

YEAH, WE YEAH. I REMEMBER SOME OF THE CONVERSATIONS.

ANY OTHER QUESTIONS? CAN I HAVE A MOTION TO APPROVE RESOLUTION 26-18 AS PRESENTED.

SO MOVED. CAN I GET A SECOND? SECOND. ALL IN FAVOR? AYE. AYE. ANY OPPOSED? MOTION CARRIES. THANK YOU, KYLE.

LET ME KNOCK THIS ONE OUT REAL QUICK. H.2. DO I HAVE A MOTION TO EXCUSE ABSENCE FOR MAYOR PRO TEM REEVES FROM THE JUNE 25TH,

[H.2. Discuss, consider and act to excuse Mayor and Council absences, if any. ]

2026 REGULAR MEETING. NO, I SAID THAT EVERY TIME.

SO MOVED. THANK YOU, TJ. CAN I GET A SECOND? SECOND.

ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES.

OKAY. WE ARE GOING TO GO INTO EXECUTIVE SESSION NOW.

[L. EXECUTIVE SESSION]

TOWN COUNCIL BOARD OF TRUSTEES WILL CONDUCT A CLOSED SESSION PURSUANT TO SECTION 551-0712 OF THE TEXAS GOVERNMENT CODE, FOR THE PURPOSE OF SEEKING CONFIDENTIAL LEGAL ADVICE FROM THE TOWN ATTORNEY WESTLAKE ACADEMY ATTORNEY FOR THE FOLLOWING.

L.1. SECTION 551-071. CONSULTATION WITH THE COUNTY ATTORNEY TO RECEIVE LEGAL ADVICE REGARDING MEMORANDUM OF UNDERSTANDING BETWEEN WESTLAKE ACADEMY AND THE WESTLAKE ACADEMY FOUNDATION. L.2. SECTION 551-071. CONSULTATION WITH THE TOWN ATTORNEY TO RECEIVE LEGAL ADVICE REGARDING ECONOMIC DEVELOPMENT PROJECT ED 2026-01. L.3. SECTION 551.071 CONSULTATION WITH TOWN ATTORNEY TO RECEIVE LEGAL ADVICE REGARDING PENDING OR CONTEMPLATED LITIGATION AND OR SETTLEMENT OFFERS ASSOCIATED WITH ENTRADA.

A. ENTRADA PUBLIC IMPROVEMENT DISTRICT. AND B.

VERTICAL BRIDGE VERSUS TOWN OF WESTLAKE. AND L4.

SECTION 551-0741. DELIBERATION REGARDING PERSONNEL MATTERS TO DELIBERATE THE APPOINTMENT, EMPLOYMENT EVALUATION, REASSIGNMENT DUTIES OF A PUBLIC OFFICER OR EMPLOYEE BOARDS AND COMMISSION APPOINTEES, AND REAPPOINTMENTS.

THE TIME IS NOW 4:15. WE WILL ADJOURN INTO EXECUTIVE SESSION.

THE TIME IS NOW 6:08. WE NOW RECONVENE TO THE REGULAR SESSION.

[00:15:04]

WE'RE GOING TO GO TO AGENDA ITEM G. BOARDS AND COMMISSION.

[G.1. Discuss, consider and act regarding Resolution 26-22 to appoint and reappoint applicants to serve as board members of the Planning and Zoning Commission and the Texas Student Housing Authority. ]

ITEM G ONE DISCUSS. CONSIDER AN ACT REGARDING RESOLUTION 26-22 TO APPOINT AND REAPPOINT APPLICANTS TO SERVE BOARD MEMBERS FOR PLANNING AND ZONING COMMISSION AND THE TEXAS STUDENT HOUSING AUTHORITY. DO I HAVE THE PLANNING AND ZONING COMMISSION? YES. I MOVED TO APPOINT THE FOLLOWING INDIVIDUALS TO THE PLANNING AND ZONING COMMISSION.

PLACE 1, DAHLIA HASSANI FOR THE TERM ENDING IN 2028.

PLACE 2, TERRY WILKINSON, WITH THE TERM ENDING IN 2027.

PLACE 3, NIZAR DIDARALI WITH THE TERM ENDING IN 2028.

PLACE 4, JACK RICHARDS WITH THE TERM ENDING 2027.

PLACE 5, LANNY HUGGINS TERM ENDING 2028. PLACE 6.

JENNIFER KONZ-ALT WITH THE TERM ENDING 2027. PLACE 7, SCOTT MONTOPOLI WITH THE TERM ENDING IN 2028.

HEY, CAN I GET THE TEXAS STUDENT HOUSING? YES.

JUST A SECOND. I'M SORRY. I VOTE ON THIS. WE NEED A SECOND.

FIRST, SECOND AND A VOTE, PLEASE. OKAY. CAN I GET A CAN I GET A MOTION TO APPROVE? SO MOVED. I THINK THAT WAS THE MOTION. CAN I GET A SECOND? THAT WAS ME. SECOND. ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES. THANK YOU. MAYOR PRO TEM REEVES.

FOR TEXAS STUDENT HOUSING. YES, I MOVE TO APPOINT THE FOLLOWING INDIVIDUALS TO THE TEXAS STUDENT HOUSING AUTHORITY.

SCOTT BRADLEY WITH TERM ENDING 2028. JAMES KRAKOW, TERM ENDING 2028.

PAULA PETERSEN, TERM ENDING 2027. MARK HARROW TERM ENDING 2027.

RICHARD MUELLER TERM ENDING 2028. KATHERINE KEAR TERM ENDING 2028.

CAN I GET A SECOND TO APPROVE? SECOND. ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES. THANK YOU VERY MUCH.

[G.2. Discuss, consider and act to Appoint the Planning and Zoning Commission Chair and Vice-Chair thru June 2027. ]

ITEM G.2. TO DISCUSS. CONSIDER AN ACT TO APPROVE THE PLANNING AND ZONING COMMISSION CHAIR AND VICE CHAIR THROUGH JUNE 2028.

I THINK IS THE NEW ONE. THE PLANNING AND ZONING COMMISSION CHAIR AND VICE CHAIR APPOINTED ANNUALLY BY THE MAYOR.

THE MAYOR. I APPOINT TERRY WILKINSON AS A PLANNING AND ZONING CHAIR AND LANNY HUGGINS AS A VICE CHAIR.

WE DO NOT NEED A VOTE ON THIS. NEXT WESTLAKE ACADEMY BOARD OF TRUSTEES AGENDA.

IT'S 6:10. ANY PARENT AND PUBLIC COMMENT? I'LL TAKE THAT AS NO REPORTS AND UPDATES.

[J.1. Update on the WA technology transition to Technology Lab. ]

ITEM J. UPDATE ON A TECHNOLOGY TRANSITION TO TECHNOLOGY LABS.

MISS BRIGGS.

IT IS ALL RIGHT. GOT IT. OKAY. SO I'M GOING TO KEEP THESE SHORT.

WE WANTED TO UPDATE YOU GUYS ON WHAT WE HAVE BEEN DOING WITH TECHNOLOGY LAB AND CHARTER IMPACT, AS OBVIOUSLY THEY ARE MAJOR TRANSITIONS THAT WE ARE DOING RIGHT NOW.

SO BOTH CONTRACTS STARTED ON 7/1, BUT THERE WAS A LOT OF PREP WORK THAT WENT INTO KIND OF BEFORE 7/1 SPECIFICALLY WITH TECHNOLOGY LAB, WE HAD ONE OF THE BIGGEST THINGS WE WERE CONCERNED ABOUT IS HAVING OUR TECHNOLOGY TURNED OVER BEFORE STAFF WENT ON, WENT TO SUMMER, AND SO THAT WAS A BIG SUCCESS.

WE WERE ABLE TO WHEN WE WERE TALKING ABOUT ASSET MANAGEMENT THEY WERE, THEY SENT THREE AND AT SOME POINTS FOR TECHNICIANS TO CAMPUS.

AND WE WERE ABLE TO ROLL OVER ALL OF OUR STAFF LAPTOPS AND IPADS SO THAT THEY WERE ABLE TO TAKE THEM AND WORK OVER SUMMER.

THIS IS A HUGE, A HUGE DEAL BECAUSE THEY WERE ON CAMPUS.

TECHNOLOGY LAB REALLY DID A TON OF WORK. I THINK THEY ROLLED OVER ABOUT, I WANT TO SAY 13 TO 1400 TECHNOLOGY PIECES. AND SO THAT TAKES A LOT OF TIME. THEY WERE ON CAMPUS, THEY WALKED AND DID 3D SCANS OF ALL OF OUR ROOMS AND BUILDINGS AND CLOSETS, JUST TO MAKE SURE THAT IF THEY'RE HELPING US VIRTUALLY, THEY'RE ABLE TO ACTUALLY LOOK IN THE ROOM, SEE WHAT TECHNOLOGY IS THERE, WHAT THAT LOOKS LIKE.

JUST ANOTHER ADDED LAYER. AND THERE IS A TECHNICIAN THAT HAS BEEN ON CAMPUS FOR A LARGE PART OF THE SUMMER, DANIEL. HE'S, LOCAL. THEY'VE ALSO HAVE FLOWN IN VARIOUS PEOPLE TO CAMPUS TO HELP US OUT.

SO THE VIRTUAL HELP THROUGH THE SUPPORT PORTAL HAS BEEN AWESOME.

THEY'VE BEEN SUPER RESPONSIVE, BUT ALSO THE HANDS ON PHYSICAL IN-PERSON HELP HAS ALSO BEEN GREAT.

SO WE'VE BEEN JUST ABSOLUTELY THRILLED WITH THEIR SERVICE.

SO THAT'S THE ASSET MANAGEMENT, THE MDM TRANSITION.

WE'RE GOING FROM JAMF TO A EDUCATION BASED MOBILE DEVICE MANAGEMENT SYSTEM CALLED MOSYLE.

[00:20:03]

AND SO IT'S EDUCATION SPECIFIC. WE WERE ABLE TO SEE EVERYTHING THEY'RE ABLE TO REMOTELY FIX AND MANAGE ALL OF THOSE THINGS. THE NEXT IMPORTANT THING IS INTERNET AT&T INSTALLED OUR INTERNET AND KIND OF THAT LAST LEG OF INSTALLATION ON FRIDAY.

TECH LAB WILL BE ON CAMPUS TOMORROW TO INSTALL THE FIREWALL AND MAKE SURE THAT WE ARE COMPLETELY TRANSITIONED OVER.

THAT WILL BE THE LAST KIND OF BIG TECHNOLOGY PIECE AS FAR AS INTERNET IS INTERNET GOES.

THE PHONE SYSTEM, WE'RE TRANSITIONING FROM ZOOM TO A MUCH CHEAPER SYSTEM THAT'S GOING TO SAVE US ABOUT $10,000.

AND SO WE'RE GOING TO GO TO TRUE IP, AND THEY ARE PORTING THE NUMBERS RIGHT NOW.

WE ARE THE TOWN WAS GRACIOUS TO ALLOW US TO KEEP THE NUMBERS AND PORT THE NUMBERS THAT WE HAVE.

SO THERE'S GOING TO BE NO THERE'S GOING TO BE NO TRANSITION AS FAR AS WHAT OUR SCHOOLS PHONE NUMBER IS, WHICH SEEMS LIKE A SMALL THING, BUT IS A REALLY IS A HUGE, HUGE THING TO MAKE SURE THAT THAT STAYS CONSISTENT.

SO THAT WILL BE FINISHED, HOPEFULLY BY THE END OF THIS WEEK, BEGINNING OF NEXT WEEK TO MAKE SURE OUR PHONE SYSTEMS WORK SEAMLESSLY. AND THEN THERE'S JUST BEEN A LOT OF CLEANUP.

SO IN JUNE WHEN THEY WERE HERE FOR THE FIRST 2 OR 3 WEEKS, GOING THROUGH INVENTORY, FINDING THINGS, MAKING SURE THAT THE TECH CLOSET IS GETTING CLEANED UP AND MAKING SURE THAT GOES OKAY.

AND JUST KIND OF DIFFERENT EFFICIENCIES THAT NEED TO HAPPEN AS FAR AS MAKING SURE WE KNOW WHAT IS ON OUR CAMPUS AND WHY.

WHAT IS STILL LEFT. I THINK I'VE, FOR THE MOST PART, COVERED ALL OF THESE ZOOM PHONES.

THEY'LL BE DONE FOR SURE BY THE END OF NEXT WEEK.

HVAC, THAT IS STILL ONE OF OUR, SOMETHING THAT WE ARE STILL TIED TO WITH THE CONTROLLERS.

AND WE'RE LOOKING AT WHAT THAT LOOKS LIKE TO MAKE SURE THAT WE CAN MAINTAIN WEB CONTROL, BUT THAT IS STILL ONE OF THE, ONE OF THE PENDING THINGS, NOT AS HIGH PRIORITY BECAUSE WE HAVE CONTROL, WE HAVE ACCESS.

BUT SOMETHING STILL ON THE STILL IN MIND. INTERNET THAT WILL BE DONE, COMPLETED TOMORROW.

MICROSOFT AND LICENSING, ALL OF THOSE THINGS ARE COMPLETELY DONE AND TRANSITIONED OVER TO TECH LABS.

SO ALL OF THOSE LICENSES ARE SEPARATED AND OFFICIALLY THE ACADEMIES.

AND THEN STILL TO HAPPEN, A TON OF CLEANUP, A TON OF RECYCLING, A LOT OF OLD DEVICES THAT HAVE BEEN AROUND AND MAKING SURE THAT EVERYTHING IS EFFICIENT AND CLEAN SO THAT WE'RE ABLE TO RUN WHAT WE NEED TO DO AND MAKE SURE THAT WE KNOW EXACTLY WHERE EVERYTHING IS, WHICH IS SOMETHING THAT WE'RE REALLY, REALLY EXCITED ABOUT.

ANY QUESTIONS ABOUT TECHNOLOGY? SO CAN YOU YOU SAID YOU SWITCHED TO A NEW INTERNET PROVIDER.

WHERE IS THIS GOING TO BE AN IMPROVEMENT IN EFFICIENCY COMPARED TO OUR OLD ONE? I MEAN, I KNOW THAT PREVIOUSLY THERE WAS A LOT OF PROBLEMS WITH SPOTS ON CAMPUS THAT HAD VERY, VERY POOR RECEPTION. YES. SO I DON'T KNOW THAT IT'S NECESSARILY A PROVIDER, BUT IT'S DEFINITELY GOING TO BE A HARDWARE ON CAMPUS IMPROVEMENT.

WE HAVE WE'RE WORKING ON MAKING SURE THAT ALL OF OUR IPS ARE EXACTLY ACCESS POINTS ARE EXACTLY WHERE THEY NEED TO BE ON CAMPUS.

THERE ARE STILL SOME IMPROVEMENTS LIKE THE ARTS AND SCIENCE BUILDING, YOU CAN BARELY MAKE A PHONE CALL OUT OF IT OR RECEIVE A TEXT MESSAGE. AND SO THAT'S SOMETHING THAT WE'RE ONCE WE GET SCHOOL STARTED, THAT'S SOMETHING THAT WE'RE LOOKING AT.

BUT THEY ARE KEEPING A VERY PROACTIVE LOOK ON CAMPUS AS FAR AS INTERNET IS CONCERNED.

SO THEY HAVE A HEAT MAP THAT IS ABLE TO, IN REAL TIME ANTICIPATE AN OUTAGE BEFORE IT HAPPENS.

AND SO THAT'S SOMETHING THAT WE'RE EXCITED ABOUT BECAUSE THEY'LL BE ABLE TO CATCH A GLITCH IN THE INTERNET BEFORE WE FEEL ANY EFFECTS ON CAMPUS.

WHAT ABOUT THOUGH, LIKE BECAUSE THE STUDENTS RELY ON THE WI-FI FOR THEIR, THEIR DEVICES.

IS THAT, ARE THEY ADDING MORE ACCESS POINTS AND STUFF IN ORDER? YES, AT THIS POINT, WE'RE MAKING SURE THAT EVERYTHING IS COMPLETELY OPTIMIZED.

AND THEY'RE, THEY'RE WALKING CAMPUS, THEY'RE MAKING SURE THAT'S PART OF THE PART OF WHAT THEY WERE DOING ON CAMPUS, GOING ROOM TO ROOM AND MAKING SURE THAT EVERYTHING IS, HAS, HAS THE SYSTEMS. AND I ASSUME THEY ANTICIPATE THERE'S GOING TO BE SOME ISSUES AS STUDENTS COME BACK ON CAMPUS, AND THEN THAT LOAD IS INCREASED THAT THEY MIGHT HAVE TO MOVE. OF COURSE, I THINK WHEN WE'RE WORKING ON WHAT DOES IT LOOK LIKE FOR ROLLOUT? WE'RE GOING TO DO CERTAIN GRADES AT DIFFERENT TIMES SO THAT WHEN WE HAVE A SINGLE SIGN ON AN IPAD, IT'S NOT ALL 900 IPADS THEY'RE TRYING TO GET ON AND LOAD.

WE'VE ALSO DONE SOME FRONT LOADING AND MAKING SURE THAT WE HAVE DIFFERENT PROFILES FOR DIFFERENT GRADES THAT ARE LOADING ALREADY AND ARE CHARGING AND LOADING ALREADY, SO THAT WHEN EVERYONE SIGNS IN, THE APPS AREN'T DOWNLOADING ALL AT ONCE, SO.

AND SO DID JUST TO REFRESH MY MEMORY, BECAUSE I KNOW THAT SOMETIMES STUDENTS TOOK THEIR IPADS HOME.

SOMETIMES THEY LEFT THEM. DO WE HAVE THEM LEAVE THEM ALL THIS YEAR SO THAT THEY CAN ALL BE TRANSITIONED OVER? YES, WE HAD EVERYONE TURN EVERYTHING IN AND IF THEY DID NOT RETURN AN

[00:25:03]

IPAD, THEY HAVE ALREADY PAID FOR IT. SO WE MADE.

WE ONLY HAD TO SEE AT THE END OF THE YEAR ALL THOSE IPADS.

IT WAS. YEAH, I HAVE BEEN. I'VE BEEN DROWNING IN IPADS OVER, YOU KNOW, A LITTLE BIT IN THE DINING HALL HAS BEEN JUST.

YEAH, THOUSANDS OF THOUSANDS OF DEVICES. THE OTHER THING TAMMY, JUST WITH REGARDS TO THE TO THE INTERNET.

REMEMBER, THE INSTALLATION OF THE NEW INTERNET WAS PART OF THE E-RATE PROCESS ALSO.

SO WHEN WE WERE AWARDED E-RATE, WHAT HAPPENS IS YOU HAVE TO GET BIDS FROM DIFFERENT PROVIDERS.

AND THEN FROM THOSE BIDS, YOU PICK ONE THAT WILL BE YOUR PROVIDER AND THAT GIVES YOU ACCESS TO THOSE DECREASED RATES FOR SCHOOLS.

AND SO AT&T CAME IN WITH THE BEST BID, AND THAT'S WHY THIS TRANSITION IS HAPPENING.

YEAH. WE'LL GET ABOUT 30. I THINK IT'S ABOUT 30 TO 40% OFF.

YEAH. RIGHT. BASED ON THE PROCESS. ANY OTHER QUESTIONS ABOUT TECH? WHAT'S TO COME, TECH LAB HAS BEEN FANTASTIC TO WORK WITH.

ALL RIGHT, CHARTER IMPACT. SO THIS IS OUR FINANCE LEG OF THE TRANSITION.

[J.2. Update on the WA finance transition to Charter Impact.]

THESE AGAIN ARE THE BULLET POINTS I'M PUTTING ON HERE ARE NOT ALL ENCOMPASSING.

THEY ALL HAVE MANY TANGENTS, BUT THESE ARE KIND OF JUST THAT HIGH LEVEL VIEW.

THE BUDGET WHERE WE ARE, WHAT WE'VE BEEN DOING, BUILD A BUDGET FROM THE GROUND UP.

BECAUSE NUMBERS FROM 26 AREN'T NECESSARILY AVAILABLE.

WE WERE ABLE TO TAKE THE STATE, THE KIND OF THE SUMMARY OF FINANCE FROM THE STATE AND BUILD A BUDGET FROM THAT.

SO WE'RE NOT BASING IT OFF OF WHAT WE DID OR DIDN'T KNOW LAST YEAR, BUT WHAT THE STATE IS GOING TO GIVE US.

AND SO THERE IS NOT ANYTHING THAT IS A QUESTION.

THE TOWN'S TRANSFER, THE BLACK, I GUESS, THE BLACKSMITH FUND AND MAKING SURE THAT WE GET THAT.

BUT THAT IS THE NUMBERS THAT THE BUDGET WERE BUILT ON.

IT'S NOT, NOT ANYTHING BESIDES THOSE, THOSE ITEMS. APS, WE HAVE A GREAT SYSTEM AND INSTRUMENTS THAT WE'RE USING.

WE ARE ABLE TO SEE BUDGET LINES IN REAL TIME.

SO THE MINUTE WE SUBMIT OR WE DO AN AP ROLL, WE'RE ABLE TO SEE THAT ADJUSTMENT IN THE LINE IMMEDIATELY.

WE'RE GETTING ALL OF OUR INVOICES AND PAST PAID INVOICES, PAST DUE, INVOICES ALL TEED UP.

AND WE ARE COMPLETELY CAUGHT UP IN WORKING ON THAT, WHICH HAS BEEN AWESOME AND REALLY GREAT TO SEE THAT IN REAL TIME.

MICHELLE, I WOULD LOVE FOR YOU TO SHARE THAT. HOWEVER, WHAT YOU SHOWED ME EARLIER. YEAH, I'LL SEND A LITTLE, I'LL SEND A LITTLE SCREEN RECORDING. I WAS GOING TO SHOW SLIDES.

I WAS GOING TO PUT SOME SLIDES IN HERE, BUT I DIDN'T. IT'S NOT SUPER.

OH, BUT I MIGHT DO A SCREEN RECORDING TO SHOW YOU EXACTLY WHAT IT LOOKS LIKE. IT'S REALLY COOL. IT'S GOING TO PUT US IN A REALLY GREAT POSITION TO SEE EVERYTHING REAL TIME AT WITH THE SWIPE OF A CREDIT CARD, THINGS HAPPEN. SO WITH THAT, WE ARE LOOKING AT TRANSITIONING TO P CARDS THAT ARE THROUGH INSTRUMENTS THAT WILL, WHEN THEY ARE SCANNED AND USED AND RECONCILED, THEY'RE AGAIN TAKEN OUT OF THE SYSTEM THAT WE'RE USING TO RUN ALL OF THAT.

AND SO IT'S AN IMMEDIATE VISIBILITY FOR US, WHICH IS GOING TO BE GREAT.

PERSONNEL WISE, WE HAVE LIZ RICHARD THAT HAS GOING TO.

SHE HAS ASSUMED THE LIAISON POSITION AT THE ACADEMY.

SHE'S BEEN FANTASTIC AND REALLY HELPED US WHILE WE'RE DOING ALL KIND OF SPINNING MULTIPLE PLATES.

LIZ HAS ENSURED AND REALLY TAKEN HER FINANCE THAT SHE HAD AT HEB AND SOME EXPERIENCE RUNNING SOME OF THOSE INVOICES AND POS THERE HAS BROUGHT THAT EXPERTISE TO CAMPUS AND HAS BEEN GREAT. PAYROLL, I KNOW A LOT OF, YOU KNOW, WE HAD KIND OF, WE, THE PROCESS, WHAT WE THOUGHT WE WERE GOING TO BE ABLE TO GET A SEPARATE EIN.

WE REALIZED THAT WAS NOT THE BEST MOVE FOR THE ACADEMY.

AND SO WE'RE NOT GOING TO BE DOING THAT JUST BECAUSE OF THE WAY THAT EVERYTHING IS SET UP.

AND SO THAT HAS, THAT'S THE THING THAT HAS SLOWED US DOWN THE MOST IN THE PAYROLL PROCESS IS BECAUSE WE DON'T HAVE OUR OWN EIN, WE'RE HAVING TO ENSURE CHARTER IMPACT COULDN'T RUN THE PAYROLL LIKE THEY WERE HOPING TO.

BECAUSE YOU CAN'T. AS FAR AS JUST MAKING SURE THAT EVERYTHING IS LEGAL AS FAR AS REPORTING AND ALL OF THAT.

SO WE ARE MOVING THROUGH MOVING FORWARD ON THAT.

WE ARE, WE'VE BEEN SHADOWING, WE'VE BEEN LEARNING WHAT THAT LOOKS LIKE AND FIGURING OUT WHAT IS THE BEST PATH FORWARD.

THAT MAKES AGAIN, MAKES US EFFICIENT WITH USING THE PROCESSES THAT WE'RE HOPING TO BE USING.

SO WE HAVE TRAININGS ON SYSTEM, WE'RE NEARLY COMPLETE CHARTER IMPACT IS HOPING TO TAKING PAYROLL OVER FULLY IN AUGUST. AND SO THAT IS, WE'RE HOPEFUL FOR THAT.

THAT'S SOMETHING THAT IS STILL REMAINING, STILL PENDING.

WE'RE STILL LOOKING FOR CORRECT KIND OF AUTHORIZATIONS FOR THE ACADEMY STAFF AND P-CARDS LOOKING INTO A NEW SYSTEM,

[00:30:03]

BUT AS FAR AS THE P-CARDS WE HAVE NOW, WE'RE REALLY TRYING NOT TO USE THEM.

AND MAKING SURE THAT WE CAN ROLL BACK SOME OF THOSE AUTHORIZATIONS.

AND THEN THE BANK ACCOUNT. WE ARE WORKING WITH THE BANK TO GET THE FINANCIAL POLICIES THAT YOU GUYS ADOPTED LAST MONTH TO MAKE SURE THAT THEY'RE ENACTED AND WE GET THE RIGHT PEOPLE IN THOSE ACCOUNTS AND MAKING SURE THAT ACCESS IS UPDATE, UPDATED.

SO ANYTHING. DID I MISS ANYTHING? ANY QUESTIONS? YES. JUST PAYROLL. IF YOU'RE NOT GOING TO HAVE YOUR OWN EIN THAT MEANS THEY'RE GOING TO BE RUNNING PAYROLL.

THEIR CHARTER IMPACT IS GOING TO BE RUNNING PAYROLL, BUT IT'S STILL GOING TO BE EIN.

WE, YES, IT WILL BE THE TOWN'S EIN. SO THE WAY THAT IT WORKS IS SO REGION 11 OFFERS.

LET'S USE THIS AS AN EXAMPLE. REGION 11 OFFERS THIS SERVICE LIKE THEY WILL RUN YOUR PAYROLL FOR YOU.

AND THE WAY THAT THEY DO IT THE SYSTEM THAT THEY USE IS OKAY.

SUBMITTING THE NUMBERS, THE REPORTS, THE PAYROLL THAT THEY'VE DONE TO THE EIN HOLDER FOR REPORTING TO THE IRS.

THE CHARTER, THE SYSTEM CHARTER IMPACT WAS USING WAS NOT COMFORTABLE OR WOULDN'T ALLOW US TO GIVE OUR REPORTS TO THE TOWN FOR REPORTING TO THE IRS, IF THAT MAKES SENSE. SO THEY WERE THEY DIDN'T THAT SYSTEM DIDN'T ALLOW FOR THAT TO HAPPEN, SO. THAT'S NOW BEEN. SO WE ARE RIGHT NOW WE'RE USING E-FINANCE, THE SAME SYSTEM THAT WE'VE ALWAYS BEEN USING TO RUN PAYROLL.

AND IT WILL I MEAN, IT'LL GO THROUGH, WE WILL SUBMIT THE REPORTS THAT WE HAVE TO THE TOWN FOR TAX REPORTING PURPOSES THAT I GET THAT CORRECTLY.

I THINK, YEAH. SO FOR TWO PURPOSES IT HAS TO BE ONE.

OTHERWISE YOU'RE GOING TO WIND UP HAVING TWO WITHHOLDINGS AND IT'S GOING TO BE A MESS.

YES. YES I REALLY THERE'S AND WE'RE MEETING WITH JANET TO SEE IF THERE'S WORKAROUNDS RIGHT NOW IN THE IMMEDIATE.

WE HAD TO GET PAYROLL ADDRESSED. AND SO THIS WAS THE PATH OF LEAST RESISTANCE, WHICH HASN'T FELT LIKE LEAST RESISTANCE.

AND I WANT TO RECOGNIZE MARLENE HAS MADE HERSELF AVAILABLE FOR HOURS AND HOURS AND HOURS, HELPING A CHARTER IMPACT UNDERSTAND THESE KIND OF BEHIND THE SCENES PROCESSES.

THERE'S A LOT OF SPREADSHEETS THAT ARE USED. THERE'S A LOT OF RECONCILIATION THAT THEN GOES INTO E-FINANCE, IT'S A MULTI MULTI-STEP PROCESS. AND SO WE'RE IN THE BEST CASE SCENARIO WE CAN BE TO ENSURE THAT PEOPLE DON'T MISS A PAYCHECK, WHICH IS CRITICAL.

IT IS NOT THE BEST CASE SCENARIO TO MOVE FORWARD.

AND SO THOSE CONVERSATIONS ARE STILL GOING ON BOTH FROM A LEGAL STANDPOINT AS WELL AS WITH CHARTER IMPACT, AS THE PROVIDER OF THIS SERVICE. THEY HAVE COME UP WITH SOME OPTIONS.

ONE OF THEM WOULD BE FOR THEM TO USE QUICKBOOKS FOR WESTLAKE ACADEMY WHERE THEY USE THEIR OTHER SYSTEM FOR THE OTHER SCHOOLS THAT DO HAVE THEIR OWN EIN THERE'S ALWAYS THE POSSIBILITY IF THEY CAN'T GET IT STRAIGHTENED OUT, THEN WE HAVE TO PULL PAYROLL FROM THEM AND GO THROUGH THE REGIONAL SERVICE CENTER.

THERE'S OPTIONS. THERE'S AN OPTION THAT LEGALLY WE FIGURE OUT WHAT THAT CAN LOOK LIKE, BUT RIGHT NOW, NOT HAVING OUR OWN IDENTITY AND OUR OWN EIN IS, IS PROBLEMATIC, PARTICULARLY FOR PAYROLL.

IT WASN'T NECESSARILY THE, IT WASN'T NECESSARILY THAT WE'RE USING A THIRD PARTY.

IT WAS THE FACT THAT THE SYSTEM THAT THE THIRD PARTY IS USING WASN'T ALLOWING THAT.

AND SO THIS IS SOMETHING THAT'S DONE ALL THE TIME JUST THROUGH DIFFERENT SYSTEMS LIKE I, THAT'S WHY I USE THE EXAMPLE OF REGION 11.

THEY PROVIDE THE SERVICE. THEY DON'T MIND SUBMITTING THE REPORTS TO THE TOWN, YOU KNOW, SO THAT IS WHY CHARTER IMPACT IS IF THEY WANT TO KEEP THE PAYROLL SECTION OF WHAT WE ARE DOING, THEY'RE GOING TO FIND A THEY'RE GOING TO FIND SOME WORKAROUND.

RIGHT NOW THE, THE MURKINESS AND THE WORKAROUND IS TRYING TO GET CHARTER IMPACT TO UNDERSTAND WHAT THE TOWN HAS BEEN DOING IN PAYROLL AND IN WALKING IN THEIR SHOES TO DO IT THEIR WAY.

AND THAT HAS BEEN A LITTLE DIFFICULT BECAUSE THEY'RE TRYING TO LEARN THOSE SYSTEMS. SO WE ARE I THINK WE'VE FOR THE MOST PART, GOT IT.

THEY'VE PUT THEIR BEST PEOPLE ON IT. THEY HAVE HIRED EXPERTS.

THEY HAVE DONE EVERYTHING THEY CAN TO ENSURE THAT IT, THEY'RE WORKING TOWARDS THE BEST SOLUTION.

BUT THAT HAS FOR SURE BEEN ONE OF THE CHALLENGES.

MAYBE SOMETIME YOU AND I CAN TALK ABOUT THIS ISSUE BECAUSE I'VE DEALT WITH IT BEFORE.

YEAH. OKAY. YEAH. NO, WE LOVE YOUR EXPERTISE THERE.

THAT WOULD BE AWESOME FOR ALL. YEAH. ANY OTHER QUESTIONS ABOUT FINANCE?

[00:35:01]

WHEN WILL WE DECLARE VICTORY? OH WE'RE REALLY CLOSE WITH TECHNOLOGY.

I THINK PROBABLY IN THE NEXT WEEK. THAT IS A HUGE WE HAVE A, I FEEL VERY GOOD ABOUT THE GRASP WE HAVE ON WHERE WE'RE AT. ONCE WE GET OUR PHONE SYSTEMS, THAT'LL BE KIND OF THAT LAST, THAT LAST HURRAH.

AND FINANCE, I THINK FOR SURE BY THE END OF, I JUST WANT TO SAY END OF AUGUST, WE WILL HAVE A PATH FORWARD OF EXACTLY WHAT WE'RE DOING AND WHERE WE'RE GOING WITH THAT. I THINK WE BOTH REMAIN VERY HOPEFUL.

AND I THINK THAT ONE OF THE THINGS I WANT TO JUST TOUCH ON IS WHEN WE WERE DOING THIS, I KNOW THERE WAS SOME TALK ABOUT CAN YOU DO BOTH? IS IT POSSIBLE TO DO BOTH OF THESE AND DO THEM SUCCESSFULLY ON TOP OF EACH OTHER? AND I JUST MICHELLE HAS BEEN. I CAN'T EVEN QUANTIFY THE NUMBER OF HOURS, THE NUMBER OF CONVERSATIONS. SHE SPENT MULTIPLE WEEKENDS, NOT ONE DAY A WEEKEND, WEEKENDS AT THE SCHOOL, ENSURING THAT ALL THE TECHNOLOGY PIECES WERE GETTING DONE, SORTING THROUGH, DOING ALL OF THE THINGS BEHIND THE SCENES TO KIND OF MAKE SURE THAT WE WERE ON THE RIGHT PATH WITH ALL OF THESE I'VE, OF COURSE, I HAVEN'T BEEN SPENDING AS MANY WEEKENDS AS SHE HAS, BUT WE'VE BEEN ON MEETINGS WHERE THERE HAVE BEEN SO MUCH GROUNDWORK LAID FOR THIS.

AND SO WE ARE REALLY HAPPY ABOUT WHERE WE ARE.

WE FEEL VERY SECURE ABOUT WHERE WE ARE, AND WE REALLY WANT TO THANK YOU GUYS FOR GOING IN WITH US AND LETTING US MOVE FORWARD ON BOTH OF THESE AT THE SAME TIME.

WE KNEW IT. WE KNEW IT COULD BE DONE. IT'S NOT COMPLETELY, YOU KNOW, EVERY BOX HASN'T BEEN CHECKED, BUT EVERYTHING IS MOVING FORWARD IN A REALLY POSITIVE WAY.

AND WE'RE EXITED. VERY GRATEFUL. WE'RE MUSCLING, MUSCLING THROUGH TO MAKE SURE THAT WE CAN DO IT.

I REMEMBER MR. YACKIRA TELLING US THAT HE WAS THE MOST CONCERNED ABOUT THAT PART.

SO I THINK ABOUT YOU ON THOSE WEEKENDS. MR. YACKIRA.

THE DEGREE OF DIFFICULTY WAS HIGH, NO DOUBT. YEAH.

AND WE AND WE HAVE GOOD PARTNERS LIKE THE TECHNOLOGY LAB AND, AND CHARTER IMPACT HAVE MET US WHERE WE ARE, WHERE WE ARE AND HAVE WALKED THROUGH THIS. AND IT'S, IT'S BEEN.

THEY'VE GIVEN US REALLY EVERY, EVERY RESOURCE THAT THEY HAVE.

NO, NO. ANY OTHER QUESTIONS? ANY OTHER QUESTIONS BOARD? GREAT JOB Y'ALL. THANK YOU. THANK YOU. MAYOR AND COUNCIL, REAL QUICK, I'D ALSO LIKE TO THANK DUSTIN AND RAY, MARLENE AND CASEY FOR THE JOB THEY'VE DONE ON THE TOWN SIDE, JUST TO MAKE SURE THAT THEY'RE BEING INCREDIBLY COOPERATIVE AND MAKING SURE THAT THE TRANSITION CAN HAPPEN SUCCESSFULLY. WITHOUT THEM, IT WOULD HAVE BEEN VERY DIFFICULT FOR THESE GROUPS OF PEOPLE TO COME IN AND UNDERSTAND THE WAY IT'S DONE TODAY, SO THAT THEY CAN TAKE IT FORWARD FROM THERE.

SO I REALLY APPRECIATE THE TOWN STAFF HELPING WITH THAT.

YEAH, THERE'S NO DOUBT. I MEAN, I AS I THINK ABOUT THIS, WE'RE WE ARE PUTTING THE ACADEMY WELL, THE TOWN AND THE ACADEMY THE LAST COUPLE OF YEARS. FUNDAMENTAL CHANGES.

GREAT JOB ACROSS THE BOARD. THANK YOU ALL. ALL RIGHT, REGULAR AGENDA ITEMS.

[K.1. Consider and act to approve WA Resolution 26-15 approving the Westlake Academy Amended Operating Budget for Fiscal Year Ending June 30, 2026. ]

CONSIDER ACT APPROVE A RESOLUTION 26-15 APPROVING THE WESTLAKE ACADEMY AMENDED OPERATING BUDGET FOR FISCAL YEAR ENDING JUNE 30TH, 2026. MISS CASEY. SPEAK OF THE DEVIL. ALRIGHT, SO THIS AGENDA ITEM IS GOING TO BE THE LAST ACTION FOR FISCAL YEAR 26 BUDGET THAT COUNCIL TAKES.

SO BEFORE WE GET STARTED, I JUST WANTED TO MAKE A NOTE.

THIS ITEM WAS DEFERRED FROM THE LAST MEETING.

EVERYTHING THAT WAS IN THERE WAS NOT CHANGED.

THE LITERAL ONLY THING THAT HAS CHANGED FROM LAST MEETING TO THIS IS THE DATE ON THE RESOLUTION IN THE PACKET, SO. ALL RIGHT. AND SO WHAT WE WERE TALKING ABOUT TODAY IS JUST REFRESHING YOUR MEMORY THAT FOR FISCAL YEAR 26, THE BOARD ADOPTED A BUDGET THAT HAD REVENUES OF 12.3 MILLION EXPENDITURES, WITH 11.7, INTENDING TO CONTRIBUTE ABOUT $650,000 TO FUND BALANCE. THIS COMES FORWARD AT THE END OF THE YEAR EVERY YEAR, BECAUSE TEA ACTUALLY REQUIRES THAT THE FINAL AMENDED BUDGET REASONABLY ALIGN WITH EXPENDITURES, AND HOW THEY DEFINE THAT IS WITHIN 10% AT THE FUNCTIONAL CATEGORY.

SO THE FUND, THE FINAL BUDGET AMENDMENT TODAY IS GOING TO INCREASE REVENUES TO 13.1 AND EXPENDITURES TO 12.6, RESULTING IN A PROJECTED CONTRIBUTION OF FUND BALANCE OF ABOUT 540,000.

AND SO I ALSO WANT TO REITERATE THAT THIS IS BUDGETARY IN NATURE.

I KNOW THAT WE INCLUDE SCHEDULES TO GIVE YOU AN IDEA OF KIND OF WHERE WE WERE WITH ACTUALS AS WELL.

AGAIN, THIS WAS ALL PREPARED OVER A MONTH AGO.

AND THAT LEAVES OUT THREE MONTHS OF TEA ACTUALS, WHICH IS A HUGE PART OF OUR REVENUES.

WE ALSO HAVE THINGS THAT TRICKLE IN AFTER 6/30 EVERY SINGLE YEAR.

[00:40:03]

AND THEN THE FINAL THING THAT I JUST WANT TO REITERATE IS THIS IS TALKING ABOUT BUDGET.

THIS IS NOT TALKING ABOUT AUDITED FINANCIALS.

SO THE NUMBERS THAT WE COME BACK AND DISCUSS WITH COUNCIL, AS FAR AS THE ANNUAL FINANCIAL REPORT GOES, WILL LOOK DIFFERENT. COUNCIL IS ONLY REQUIRED TO ADOPT THE GENERAL FUND.

AND SO FINANCIALS HAVE ALL OF THE FUNDS. WE MAKE FUN LITTLE ACCOUNTING NERD ENTRIES TO SHORE THINGS UP ACCORDING TO GASB AND TO GAAP.

SO WHAT WE'RE TALKING ABOUT TODAY IS JUST THE BUDGET SO THAT WE CAN FINALIZE OUR FINANCIAL REPORTS AND GET EVERYTHING OVER TO TEA APPROPRIATELY.

DO WE HAVE ANY QUESTIONS? QUESTIONS? NO. CAN I ASK ONE THING? SO THE ESTIMATED 540,000 TO FUND BALANCE, DOES THAT INCLUDE THE 330,000 THAT THE STATE WILL BE TAKING BACK AS A RESULT OF THE, THE IF THAT'S STILL ON THE SUMMARY OF FINANCE, WE WON'T GET THAT.

SO I'M NOT SURE IF THAT'S INCLUDING THAT OR NOT.

THAT'S A SLIGHTLY SEPARATE CONSIDERATION. YOU'RE TALKING ABOUT ACTUALS VERSUS BUDGET.

AND SO THEY HAVE BEEN REMITTING THOSE FUNDS THROUGHOUT THE YEAR.

WE ARE NOT BUDGETING TO INCLUDE THEM. THE FISCAL YEAR 26 BUDGET WAS ADOPTED WITH ABOUT $140,000 PLANNED.

ONCE THEY PASSED THAT RULE LAST YEAR, INCREASING THE FACILITIES ALLOTMENT, THEY ADJUSTED WHAT THEY WERE REMITTING TO US AS THOUGH WE WOULD BE RECEIVING THE OVER $300,000. FOR THIS BUDGET WE ARE TAKING IT DOWN TO ZERO FROM THE 100 AND I THINK IT WAS 37.

SO THIS WILL BE REAL MONEY BACK INTO THE ACCOUNT.

NOT 540 -330. THIS WILL BE. IT IS NOT 540 - 330, CORRECT.

OKAY. OKAY. 540. WHEN WILL THEY TAKE THAT MONEY BACK? DO WE KNOW? USUALLY, IF THEY HAVE ANY CLAWBACKS, IT'S ON THAT AUGUST PAYMENT THAT THEY MAKE.

SO THAT WOULD HAPPEN AUGUST 25TH OR SO. WHAT IF THEY DON'T DO IT? THEN I MIGHT BE BACK. WE WOULD BE CELEBRATING AND OTHER SCHOOLS WILL TOO, BECAUSE THREE THREE ATTORNEYS HAVE TOLD US THEY WILL FOR SURE BE TAKING THAT BACK. SO THAT'S WHY I WANT TO MAKE SURE THAT THAT WASN'T INCLUDED.

WELL, ALSO BIASES. DO WHAT? YOU WANT TO DO. AND WE DID CLEARLY SPELL THAT OUT IN THE STAFF REPORT ALSO WITH THE EXACT NUMBERS. OKAY. EXCELLENT.

I ASKED AND THAT IS WE HAVE REALLY THREE DIFFERENT THINGS HERE.

WE HAVE THE BUDGET, WE HAVE THE AMENDED BUDGET, AND WE HAVE THE ACTUALS THROUGH A CERTAIN PERIOD OF TIME.

CORRECT. AND THE CERTAIN PERIOD OF TIME ACTUALS.

WE DON'T HAVE TO DO ANYTHING WITH RESPECT TO THE AMENDED BUDGET FOR THAT.

IN OTHER WORDS, WHEN THE WHEN WE FINALIZE THE JUNE 30TH NUMBERS, WE DON'T HAVE TO TAKE ANOTHER ACTION.

CORRECT, THAT'S WHY WHENEVER WE COME BACK AND WE DO THE AMENDMENT, WE ONLY HAVE TO GET WITHIN THAT 10%.

I CAN ABSOLUTELY BE DONE. I CAN ALSO STAND UP HERE ALL DAY.

I TOLD YOU I LIKE TALKING BUDGET. [LAUGHTER]. THAT'S HUNGRY.

ALL RIGHT. FINE. I CAN ALSO GO AWAY. WAIT A MINUTE, I DON'T KNOW. WE DON'T WANT TO RUSH THROUGH THIS. ANY QUESTIONS ON THIS? ANYTHING ELSE? CASEY? CAN I GET A MOTION TO APPROVE A RESOLUTION 26-15 AS PRESENTED? SO MOVED. CAN I GET A SECOND? SECOND. ALL IN FAVOR? AYE. AYE. ANY OPPOSED? MOTION CARRIES. CASEY, THANK YOU.

THANK YOU. LIGHT DAY AT THE OFFICE. OKAY, AGENDA ITEM K.2.

[K.2. Consider and act to approve WA Resolution 26-20 amending the Westlake Academy Operating Budget for Fiscal Year Ending June 30, 2027 to include a two percent (2%) Cost of Living Adjustment (COLA) for Westlake Academy employees.]

CONSIDER AND ACT, APPROVE A RESOLUTION 26-20.

AMENDING THE WESTLAKE ACADEMY OPERATING BUDGET FOR FISCAL YEAR ENDING JUNE 30TH, 2027 INCLUDE A 1.8% COST OF LIVING ADJUSTMENT FOR WESTLAKE ACADEMY EMPLOYEES. THANK YOU VERY MUCH. SO WHEN WE WERE HERE LAST MONTH, OUR GOAL WAS TO DO A 2% COST OF LIVING ADJUSTMENT FOR ALL EMPLOYEES. AND AFTER WORKING WITH SANDY, WHO SPENT HOURS ON, YOU KNOW, DIFFERENT MODELS AND WHAT THEY COULD LOOK LIKE AND JUST TONS OF MATH AROUND THAT.

AND ALSO WORKING WITH JW, WHO YOU MET LAST MONTH, WHAT WE FEEL REALLY COMFORTABLE COMING IN AT IS 1.8%.

THAT PUTS US STILL IN A RANGE. GIVEN THE ECONOMIC SITUATION OF MOST SCHOOLS, THAT PUTS US IN A RANGE OF BEING ABLE TO OFFER SOME RECOGNITION AROUND ARRAYS WITHOUT PUTTING OURSELVES IN A BUDGET DEFICIT.

[00:45:01]

AND SOME OF THOSE ORIGINAL MODELS BASED ON THAT, 2% WERE PUTTING US IN A BUDGET DEFICIT FOR NEXT YEAR.

AND THAT DEFINITELY IS NOT WHAT WE WANT TO GO INTO THE YEAR DOING.

SO THIS RAISE ALLOWS US TO RECOGNIZE EMPLOYEE EFFORTS AND TRY TO KEEP UP WITH RISING COSTS OF EVERYTHING, AND ACKNOWLEDGE THE CONSTRAINTS OF THE VERY REAL BUDGET NUMBERS.

SO STAFF IS RECOMMENDING THAT WE PASS THIS 1.8%.

YOU'LL SEE THAT STILL LEAVES US WITH ABOUT $125,000 IN EARNED INCOME FOR NEXT YEAR.

AND THAT WILL, YOU KNOW, BE IN ADDITION TO THE FUND BALANCE THAT'S ROLLING OVER FROM THIS YEAR.

FOR SURE. OH, I'M SORRY. REVENUES ARE MUCH MORE FUN.