Ann Arbor school board to vote on superintendent contract, sinking fund millage renewal
The Ann Arbor Board of Education will meet Wednesday at the downtown library for a regular meeting at which it is expected to ratify a contract with the new superintendent, Jeanice Kerr Swift, and discuss a sinking fund millage renewal for the November ballot.
AnnArbor.com file photo
The school board is expected to approve a contract for superintendent-elect Jeanice Kerr Swift, as well as to decide whether it will place a sinking fund millage renewal on the ballot for the November election.
The board voted 4-3 on July 31 to offer the superintendency to Swift, an assistant superintendent of instruction, curriculum and student services from Colorado Springs. Swift accepted the position within a few hours, and formal contract negotiations began between her and board President Deb Mexicotte.
Although as of Tuesday afternoon the superintendent contract was not yet listed on the board's agenda for Wednesday's regular meeting, which starts at 7 p.m. at the downtown Ann Arbor District Library, Mexicotte said she plans to bring forward a draft contract for the full board to review. Both she and Swift have preliminarily agreed to its stipulations, Mexicotte said, adding she could not discuss the details at this time.
"No one has signed it. We do believe she is on board with it," the board president said.
She said if there is any discussion on the contract that she brings forward, it will take place in open session. Questions on specific details, if there are any, also will be fleshed out in open session.
If there are major changes that trustees want made, they could move to go into executive session, Mexicotte said. However, then the contract likely would not be ratified Wednesday evening, but would instead go back into negotiations.
Mexicotte said she will be asking the board to authorize her to make any adjustments to form or language and to execute the contract, including both offering the parameters to Swift as a formal contract and signing the contract.
If the board approves the contract Wednesday, it will act in open session.
The board will have to act Wednesday on a sinking fund millage renewal proposal, if it wants to place the renewal on November's ballot.
The deadline for submitting certified proposal language to the county clerks office is Aug. 27 for the Nov. 5 election. The Board of Education certifies the proposal language by adopting it through a vote, said Washtenaw County Director of Elections Ed Golembiewski.
Mexicotte said the board could call another meeting prior to Aug. 27, but she expects the board likely will move forward Wednesday with putting the proposal on the ballot this fall.
"The board is well aware that this millage expires next year. It is not atypical for the board to put a renewal on the ballot well ahead of the actual expiration in case anything goes awry (and the millage is not approved) and we have to take another shot," she said. "We've been so busy with other things ... that this kind of snuck up on us. It's my personal expectation we'll approve (the language) Wednesday, but I really haven't talked to the board about it."
The district's sinking fund was last renewed by voters in the Ann Arbor Public Schools in 2008. Ann Arbor's sinking fund levies 1 mill and allows the district to spend taxpayers' money as it is collected, unlike a bond millage, which involves the district borrowing the full amount of the bond upfront from a third-party lender.
Per state law, sinking fund dollars can be used for the purchase of real estate, construction projects or building repairs. Sinking fund money cannot be used for operational, transportation or technology costs.
AAPS school officials say the sinking fund is necessary for maintaining the district's physical properties in budget-crunched times. Most of the district's repairs and upgrades are completed with sinking fund money, as opposed to general fund money, as AAPS and districts across Michigan have faced budget shortfalls and deficits that have required them to slim down program offerings for students and reduce staff at their schools.
Former AAPS Executive Director of Physical Properties Randy Trent said in March, the district may want to consider a combination bond/sinking fund when it goes out for its next millage renewal. Trent said then that one reason to have a dual proposal would be because of the restrictions the state places on both types of funding.
Trent left AAPS in July to accept a position with the Washtenaw Intermediate School District. He had been in the district for 28 years.
Trent said in March, if school officials asked voters to approve a bond/sinking fund combination for the same taxable value of 1 mill, the district would have the flexibility to address classroom furniture and equipment issues that currently it cannot. Trent said the district has a need to replace some classroom desks, tables and chairs; office and lunchroom furniture to the tune of $5 million that it could not replace using sinking fund money.
Mexicotte said Tuesday she expects there will be some discussion among school board members at Wednesday's meeting about whether to go out for a combination sinking fund/bond in November.
Local State Rep. Adam Zemke, D-Ann Arbor, also proposed a series of bills this spring that loosen restrictions on sinking fund dollars for schools and would permit districts to spending sinking fund money on transportation and busing repairs, technology purchases and upgrades and school safety measures and security equipment.
The bills currently are sitting in either the Michigan House of Representatives Committee on Education or Tax Policy Committee. It is not known whether this legislation will be discussed Wednesday or will factor at all into the Ann Arbor board's decision on whether to push forward with a sinking fund millage renewal this fall.
Danielle Arndt covers K-12 education for AnnArbor.com. Follow her on Twitter @DanielleArndt or email her at daniellearndt@annarbor.com.
Comments
DonBee
Wed, Aug 14, 2013 : 9:53 p.m.
Believe it or not, I am in favor of having a sinking fund and fixing the things it supports. On the other hand, the percentage of the sinking fund dollars that go to Varsity only athletic facilities is NUTS! If all the money went to fixing the heating/air conditioning and other building maintenance, I would think that it would lead to more energy efficient buildings and lower long term utility bills. That is a good thing. Buying a new rug for a football field, or building a new weight room that is limited to Varsity or a new set of locker rooms that get used maybe a dozen times a year for games, makes no sense. I would like to see the top 30 items in the maintenance database (AAPS/Axxerion) of items that need work. I think we will all find that there is a maintenance backlog. The money should be focused on fixing the buildings and keeping them up. AAPS spends far more money on Athletics than they do on Music or the arts as a whole. I can probably add foreign language and several other study areas into this and still not get close to the money spent on athletics. I am highly in favor of Gym class and physical education, not so much is athletics that produce headlines for fights and taunting in the local press.
aaparent
Thu, Aug 15, 2013 : 10:02 a.m.
I thought that the Skyline rug was replaced to correct vandalism that occurred with an obscene picture on the field that could not be corrected through cleaning. I thought that initially this information was public and then there was a time lag between the vandalism and the repair. When the new rug was installed, I thought that the PR people in the district emphasized the upgrade to call attention away from the vandalism. It was not from another school's prank night but I recall the vandalism was from another incident and there was some controversy about whether the students were disciplined. This may not be accurate. This doesn't change the basic point of how athletics receives more funding than music or arts, but I have yet to see information on what revenue is generated from either and how these decisions were made and under which generation of BOE leadership.
DonBee
Thu, Aug 15, 2013 : 1:17 a.m.
M. Haney - According to the figures the board transfers more than 2.5 million dollars from the general fund to the athletic fund, zero to a music or art fund. If I look at the number of people employed as teachers who coach vs teachers who are art and/or music teachers, the number of coaches exceeds the number of art and music teachers. There are 3 Athletic directors - no Band Directors who get paid full time to not teach but administer the programs. There are 3 office professionals for athletics, zero for art or music. There was $11 million dollars spent on NEW athletic facilities from the bond/sinking fund in the last 24 months as major projects, zero for music or art. There was a new rug put on the Skyline field to address logo issues, and colors, not wear and tear. Sorry, the numbers look out of balance to me.
M.Haney
Thu, Aug 15, 2013 : 12:25 a.m.
Please provide your figures on the amount of dollars supporting arts, music and athletics to support your claim. I would like to see them.
M.Haney
Thu, Aug 15, 2013 : 12:22 a.m.
Your viewpoint on athletics is a bit skewed. The district spends dollars on athletic facilities to keep up with the wear and tear from the student athletes who participate in extracurricular sports. More than 50% of any of the 3 comprehensive high school in AA participate in athletics. I do not know the stats for music and the arts but I suspect they are far from that figure. Also, please don't forget that recently some sinking fund dollars were used to upgrade the auditoriums and music facilities at the high schools. Not very flashy, but as equally needed as updating the athletic facilities periodically. Music, the arts and athletics all help round out the student during their formative years in high school.
AlwaysLate
Wed, Aug 14, 2013 : 9:29 p.m.
"Sinking Fund"...given this school board's penchant for spending and wasting money, I have always thought a funny term.
West Side Mom
Wed, Aug 14, 2013 : 8:21 p.m.
I supported the Sinking Fund Millage last time around but will be hard pressed to do so this time. It was painful to watch the district spend approximately $800,000 in Sinking Fund dollars installing a new artificial turf practice field at Skyline this summer when our middle school pools (and the Rec & Ed swim program) could not be maintained for a measley $70,000 because maintenance of capital improvements is not a qualified expense. When the middle school pool issue was discussed here some months ago, one commenter, who seemed knowledgeable, said that closing the pools this year could lead to additional maintenance problems and the permanent closing of the pools in the long run. Before I will vote in favor of giving AAPS more money for capital improvements, AAPS will have to come forward with a capital improvements plan that shows that can adequately maintain the facilities we have.
Goober
Thu, Aug 15, 2013 : 9:06 a.m.
AA BOE = poor fiscal management.
JRW
Wed, Aug 14, 2013 : 8:05 p.m.
"We've been so busy with other things ... that this kind of snuck up on us...." One more example of the total lack of competence on the board. Vote NO on any future millages. Make cuts and live within your means. Stop asking the residents for more and more and more money because you cannot make the necessary cuts to the budget. The answer is NO.
JRW
Wed, Aug 14, 2013 : 8:02 p.m.
Sorry. No more millages. Bad fiscal management for years does not warrant a constant bailing out by raising money through millages. Learn to make the cuts needed and live within your means.
aaparent
Wed, Aug 14, 2013 : 7:51 p.m.
@Donbee - your suggestions for how the board meeting should run tonight are on point. I believe the model for our BOE meetings is more like a school graduation or celebration ceremony than a framework run by the need to actually get work done. @Danielle -Would it be possible for you to sum up in your article tomorrow how the meeting tonight did or did not stick to these points in Donbee's comments? I would think many people in the community would agree that these 4 items are most important along with the status of our teachers who are still laid off and waiting to hear about their job status. Item #1 Superintendent Contract Item #2 Sinking fund discussion/approval Item #3 Remove the 7th class fee and make the lawsuit moot Item #4 Update on the status of zero based budgeting
aaparent
Wed, Aug 14, 2013 : 7:47 p.m.
@Liz Margolis- Thank you for taking the time to comment online. I will take this as a positive sign of the new superintendent's plan for communication, unlocking the levels of security needed to discuss basic pieces of information or telling people if they would like to know the info, go fetch it themselves. But that said, I am still not clear on whose job it is to provide oversight on the sinking fund and how it could be the case that our BOE president states in the news media that this issue has "snuck up" on the board. Can you explain how the sinking fund is managed and where the oversight is? Do you think in your years of experience sitting at board meetings that this current BOE could actually stick to DonBee's 4-point agenda? I wonder sometimes if Mrs. Osinski and others have trained themselves to not roll their eyes during board meetings when things start to get out of hand and the clock ticks on ...and on...and on.
snapshot
Wed, Aug 14, 2013 : 6:43 p.m.
Ann Arbor property owners should do themselves a favor and vote no on any AAPS millages until the Board starts functioning as a governing body with fiscal integrity rather than a charity for special interest.
snoopdog
Wed, Aug 14, 2013 : 8:35 p.m.
well said snapshot, very well said. Good Day
aamom
Wed, Aug 14, 2013 : 8:15 p.m.
I posted this above, but I will post again: The district functioning as a governing body and needing the funds to continue to maintain (this is simply a renewal, correct?) our old, old buildings are two separate things. It doesn't matter whether this millage passes or not. The functioning of the board will not change until the leadership of the board changes. Vote no if you believe the school doesn't need to continue to collect funds for building maintenance, but just don't fool yourself into thinking you will affect some sort change by voting no.
Ann Arbor Parents For Students
Wed, Aug 14, 2013 : 5:57 p.m.
Liz, Thank you for your clarification. We would also like to know the breakdown of the communication and marketing budget --anything you oversee. 1) Salaries and benefits amounts of all staff including you (can be combined), 2) a breakdown of all other expenses 3) budget increases over the past 3 years. Thank you for being transparent and the taxpayers and parents need to know.
Ann Arbor Parents For Students
Thu, Aug 15, 2013 : 5:05 a.m.
Thanks Liz. Most professionals know their total department budget for the year. I hope that this is not how the entire school district is run. Estimated: $85,000 budget, Liz salary and benefits $110,000 (30% benefits), estimated other salary and benefits= $195K Total budget: $390,000? Sounds correct?
Bill
Wed, Aug 14, 2013 : 8:01 p.m.
Liz--Thank you for replying to the request. It is great to see that no FOI was required. I must agree with AAParent that this is a positive sign of more open community between the AAPS and the community.
Liz Margolis
Wed, Aug 14, 2013 : 6:15 p.m.
The Communications budget is $85,000. This does not include staff. There are five staff members including myself, Business/Partnership Coordinator, part time District Webmaster, AAPS New Editor/Communication Assistant and a Receptionist at Balas who also acts as secretarial support for the Communications Department. No budget increases but actually budget decreases in this department. When I started there was a budget of $125,000 per year. My pay is $86,500 per year. This does not include benefits. I will have to gather the other staff data as a group and post that later. There are no other expenses.
Liz Margolis
Wed, Aug 14, 2013 : 5:44 p.m.
The Sinking Fund is intended for replacement of any major building system with a life cycle of 15 years or more. This includes, but is not limited to, HVAC mechanical components, roofing systems, exterior door systems, parking lots, sidewalks and plumbing systems. AAPS has a preventive maintenance plan in place. AAPS had a facility survey performed by PSI. This data resides in the AAPS/Axxerion facility management database system. This system is updated on an ongoing basis. Through annual interviews with the principals, contractors and analysis of the work order system the district prioritizes facility needs. Furniture, kitchen equipment and any other items that can be relocated to another building cannot be purchased through the sinking fund. These types of items can be purchased through the general fund or a bond issue.
TheDiagSquirrel
Wed, Aug 14, 2013 : 10:08 p.m.
Out of all the ways to make revenue, and out of all the redundant administrative positions in AAPS, the spokesperson position is the most expendable.
AMOC
Wed, Aug 14, 2013 : 7:49 p.m.
Thanks for the clarification of what the sinking fund can and cannot be used for. I had thought that sinking fund money can also be used for maintenance of buildings and sites. That would mean activities such as painting, window repairs, tree planting and trimming, repair or replacement of playground equipment would also be funded by sinking fund dollars instead of general funds.
RUKiddingMe
Wed, Aug 14, 2013 : 4:20 p.m.
""We've been so busy with other things ... that this kind of snuck up on us." Hm. Yet another pretty freaking important item to be sneaking up on people. Kind of like having more employees than they thought, and the millions of dollars deficit "sneak up." All of these people need to be out, out, out. We have seen such depressing, numerous, and consistent examples of either laziness, incompetence, or corruption, or some combination of those. Too much money poured into this for too long; they've lost the ability to function and serve
NorBro
Wed, Aug 14, 2013 : 4:02 p.m.
Is it me, or does this school board always seem to be a few bricks short of a full load? It appears that D Mexicotte, as board president, is given far more freedom to represent the board than I am comfortable with. It appears that the board is not providing appropriate oversight of their president.
Goober
Wed, Aug 14, 2013 : 4:20 p.m.
How true. The AA BOE is inept, clueless, lost and arrogant. Also - several bricks short of a full load. Describes them exactly, unfortunately. Nice people - all of them, but do not belong as board members. None of them. The sooner the AA voters wake up to this fact, the less damage they will cause that will have to be repaired. Replace all of them.
A Voice of Reason
Wed, Aug 14, 2013 : 3:58 p.m.
Did Trent retire from AAPS and is now working for WISD? State of Michigan education funding: What is the status of the state funding? I heard that Michigan funding is down because there was a 2.5% decrease in students in Michigan. Please clarify? School funding per student actually increased? Why is AAPS having a budget deficit? Did we loose 3 students and AAPS numbers are actually lower than in 2012?
J. A. Pieper
Wed, Aug 14, 2013 : 3:36 p.m.
Go ahead and approve the superintendent contract, but this voter will not be voting in approval of any additional funds for AAPS. AAPS, and its BOE, have proved they are not good stewards of tax dollars, period.
Goober
Wed, Aug 14, 2013 : 8:01 p.m.
Vote yes out of fear. Vote no to force fiscal responsibility.
aamom
Wed, Aug 14, 2013 : 7:17 p.m.
I agree with Joel. The district functioning as a governing body and needing the funds to continue to maintain (this is simply a renewal, correct?) our old, old buildings are two separate things. It doesn't matter whether this millage passes or not. The functioning of the board will not change until the leadership of the board changes. Vote no if you believe the school doesn't need to continue to collect funds for building maintenance, but just don't fool yourself into thinking you will affect some sort change by voting no.
snapshot
Wed, Aug 14, 2013 : 6:38 p.m.
Joel, You seem to advocate millage approval out of fear then, rather than logic. I say bring the district to its knees if that's what it take to get these board members to start functioning as a governing body instead of caving in to special interest and individual agendas and philosophies. I refuse to even consider a yes vote on any more millages. I'll vote no.
Goober
Wed, Aug 14, 2013 : 4:15 p.m.
You are so correct, J.A.
Joel A. Levitt
Wed, Aug 14, 2013 : 3:41 p.m.
We should seriously consider voting for new Board members, but we must not bring the system to its knees byopposing collection of necessary funds.
walker101
Wed, Aug 14, 2013 : 2:28 p.m.
We've been so busy with other things ... that this kind of snuck up on us. Really, you had this unimportant agenda just sitting around waiting for someone to make a decision. Hard to believe that such an issue was left on the back burner.
Orangecrush2000
Wed, Aug 14, 2013 : 2:27 p.m.
Board, remember , it's not your money. It belongs to the people of Michigan/Ann Arbor Schools. You are only there to process it according to the wishes of the people. Try to suppress the need to feel like Santa Claus. Save that for your own family, using your own money. Be fiscally responsible.
Itchy
Wed, Aug 14, 2013 : 3:32 p.m.
How true, but your opinion will be ignored by the board members.
belboz
Wed, Aug 14, 2013 : 2:17 p.m.
Well, at least it will be on the ballot in November and not during the spring.
A2comments
Wed, Aug 14, 2013 : 6:29 p.m.
Sorry, you need to fix your sentence. I twill be on the ballot in November AND on the ballot in spring (after it fails in November).
An Arborigine
Wed, Aug 14, 2013 : 12:57 p.m.
Why do I have that sinking feeling?
John of Saline
Wed, Aug 14, 2013 : 5:45 p.m.
Abandon fund!
snoopdog
Wed, Aug 14, 2013 : 12:16 p.m.
It would seem that the BOE would hire someone with at least a bit of experience in finance/money matters as they look to the future. The leaders of this school district are really setting themselves up for a financial crisis in the next few years. Rearranging deck chairs on the Titanic it appears. Good Day
Itchy
Wed, Aug 14, 2013 : 3:32 p.m.
Nope. In fact, being confused when it comes to finance and financial controls is one of their strategies. In their minds it is hard to blame them if they did not know, did not ask nor did they understand a financial issue. Their track record proves out this concept. They even hired a new supt. that has minimal financial experience.
DonBee
Wed, Aug 14, 2013 : 12:12 p.m.
Agenda for the board meeting: Item #1 Superintendent Contract Item #2 Sinking fund discussion/approval Item #3 Remove the 7th class fee and make the lawsuit moot Item #4 Update on the status of zero based budgeting If I were a board member, these are the topics I would want on the agenda tonight. Anything else is a waste of time until these 4 are dealt with.
A2comments
Wed, Aug 14, 2013 : 6:28 p.m.
Don: The agenda will more likely read: #1 - presentations from students and student groups for 45 mins. #2 - discussion about raising superintendent salary range for 2 hours. #3 - motion to extend the meeting past the deadline #4 - superintendent contract, debating whether the car should be a sedan or 4x4 #5 - motion to extend the meeting again #6 - motion to approve giving the new superintendent a $50,000 incentive if she lasts for 3 years, and a $150,000 incentive if she lasts for 5 years #7 - motion to extend the meeting again....
Gloriagirl
Wed, Aug 14, 2013 : 10:45 a.m.
Sinking funds are primarily set up to replace mechanical equipment that have a life cycle typically 15-20 years some longer. These are expensive items that can range from thousands to tens of thousands of dollars. This assumes proper maintenance during this life cycle. AAPS does not have a regular scheduled maintenance program. AAPS does not have a working facility survey to maintain an effective maintenance program. AAPS does not priortize their facility maintence instead reacts to problems as they come up. Considering there is over 3 million sq. ft. of facilities and over 34 buildings,it would be a mistake to allocate this funding to essentially general fund or capital expenses. A bond sent before the voters is the appropriate way to fund furniture, fixtures and equipment.
West Side Mom
Thu, Aug 15, 2013 : 4:16 p.m.
That's what I was acknowledging. My comment was directed to your initial curt response.
Liz Margolis
Thu, Aug 15, 2013 : 10:45 a.m.
West side Mom I did reply in further detail in this comment thread.
West Side Mom
Wed, Aug 14, 2013 : 8:24 p.m.
Ms. Margolis - My initial reaction is that you've got to say more than this and if you don't have the time to answer completely, don't respond until you do. That said, I appreciate the candid responses you provided to other questions subsequently directed to you.
snapshot
Wed, Aug 14, 2013 : 6:31 p.m.
I agree with Don Bee, show us in a clear concise manner with a line by line accounting. Someone is writing the checks, lets have a list of who those checks are going to and for what.
DonBee
Wed, Aug 14, 2013 : 12:10 p.m.
Ms. Margolis - It would be nice if a summary of these programs could be released to the public, so that people could see what the sinking fund money is being prioritized toward. I know Johnson Controls is in the buildings regularly doing some maintenance, but I don't know if their contracts extend to replacing/repairing the larger mechanical units. While this is not a front burner issue, making some of this information available may make getting the millage renewed easier.
Liz Margolis
Wed, Aug 14, 2013 : 11:20 a.m.
This information is false. AAPS has both a maintenance program and an active facilities survey.