1. Joint Assembly & School Board Meeting 12 February 2015

2. Agenda Joint Messaging Budget School Facilities Calendar Common Concerns

3. Joint Messaging Messages & Themes – Establishing a common vision between the Assembly & the School Board Opportunity to represent a cohesive community perspective Emphasis on increasing opportunities for communication – Formal – Informal – A focus on maintaining levels of service in a resource constrained environment

4. Budget

5. For FY 15 anticipated Property Tax Collection was $1,638,000 and funding to school was $1,786,866

6. How is Borough Money Spent? Departments that provide indirect support to the School District

7. Budget Fiscal Environment – State facing $3.5 Billion Deficit in FY 15 as a result of low oil revenue State Reserves will only last 3 years at current burn rate – Similar deficits anticipated over next several FY’s – State funding to the Borough (Revenue Sharing) will be reduced 5.5% in FY 16 with potential 30% reduction in FY 17 and possible elimination of the program thereafter. – Borough General Fund revenues will be down 6% (260K+) for FY 16 Impact from State Revenue Sharing Approimately 50% Reduction in Raw Fish Tax Increased dollar value of exemptions resulting in less property tax collected Potential for loss of Community Jail Contract (390K+ split between Area Wide General Fund & Townsite Service Area) – For more details refer to Manager’s Revised Guidance to Staff published 5 February 2015

8. Budget Proposed Manager’s Budget – School District Funding: The Borough has historically funded the School District at approximately 84% of the maximum allowable limit. The Manager’s Budget will lower that funding level to 80% of the maximum allowable limit. The mandated levels are not available at this time but draft data from DEED reveals the following: FY 16 DRAFT Max is 1,886,988 FY DRAFT Min is 1,029,497 80% is 1,509,590 (47,276 difference from 84% FY 15 funding) FY 15 contribution was ( 1,786,866 -230,000 = 1,556,866 FY 15 at 84%) Minimum allowable equates to mandated spending and anything above the minimum equates to discretionary spending – Current min/max do not factor in potential impact of Ketchikan Gateway v. State, Case. No. 1KE-14-16CI

9. School Facilities Major Maintenance & CIP Review Status of Major Maintenance: Review Current CIP priorities. Confirm future priorities FY15 CIP Major Maintenance & CIP – Review Status of Major Maintenance: – Review Current CIP priorities. Confirm future priorities Priority No. 1 Mosquito Lake K-8 School Sprinkler Upgrades - Reuse of Scores $91,103 – Not eligible for debt re-imbursement Priority No. 2 Haines Voc Ed Building Mechanical Upgrades - Reuse of Scores $1,711,027 – Final bid documents to be complete by end of February. Construction in spring/summer of 2015. Priority No. 3Haines High School Air Handler Replacement $412,367 – Complete FY 16 CIP Priority No. 4 Haines High School Locker Room Renovation $783,938 – Some of the plumbing between school locker rooms and pool locker room can be repaired in summer by demolishing the ceiling in the school locker rooms replacing all aged and failing elements. This would not address all school/pool problems, but is a necessary phase in the overall upgrade and repair of the facility. Priority No. 5 Haines High School Roof Replacement $1,814,747 – Roof replacement to be phased by section beginning with the most deficient. Current request is no. 9 on the Haines Borough CAPSIS Legislative Priority list and includes roof replacement over the gym and adjacent corridor.

10. CIP Looking Forward CIP FY 17-18 Currently no school projects in the pipeline CIP FY 19-20 Currently no school projects in the pipeline

11. Pool – Pool owned and operated by the Borough – DEED will not provide funding under current arrangement – Borough is researching other Municipalities’, Boroughs’, and Districts’ formal relationships that permit funding by DEED – Based on above, review of formal relationship between Borough and School District with respect to the Pool

12. Calendar Forward planning prevents calendar conflicts between Borough and School events Insures community can participate/contribute Provides opportunities for Assembly and Board to attend events and increase understanding and communication

13. Common Concerns Impacts of new State Law on marijuana for Personnel Policy Borough & District Policy – Recommend establishing a Joint Borough Administration/School District Personnel Policy review Joint Services: Exploring potential savings that could be offered by merging selected support services as allowable Public Health Implications of drugs and alcohol and impacts to education & Borough services – Opportunity for community conversation Reference prior initiatives – Borough, School District, and other resources to address concerns – Assembly & School Board support for joint initiatives Borough income gap and provision of services – 50% free and reduced lunch – Increased poverty results in increased need for services