Liberty Common School

LIBERTY COMMON SCHOOL

BOARD OF DIRECTORS MEETING

LAND ACQUISITION MEETING

September 29, 2016

Teacher’s Lounge, Liberty Common School

1725 Sharp Point Dr. Fort Collins, CO

Attendance: Paulette Hansen, Patrick Albright, Denise Benz, Aislinn Kottwitz, Kelly Notarfrancesco, Joel Goeltl, Jeff Webb, Bob Schaffer, Casey Churchill, Sandy Stoltzfus, Torgun Lovely, Katrina Brossia, Becky Rickers

Guest: Peter Kast

Absent: Kelly Notarfrancesco

Call to Order: 7:10pm

Agenda: Discussion of Land Acquisition

Land Acquisition:

·  Purchase price $910 K

·  Reduces unrestricted fund balance to 48 days of COH or 13% of Operating Expenses

·  Land is a non-depreciated asset. What does it do to the bottom line for the Enterprise fund?

o  Increases assets by the purchase price of the land, assumption $910K.

o  Takes current fund balance from ($575k) to $335k

o  Corrects the current Enterprise Fund deficit position

o  Allows for approximately 3 more years of negative “on-paper” deficit before the Enterprise Fund would be in a negative position with no additional action needed to be taken. In years 4 and 5 small payments to the LCS Building Corp from the Operating Budget would be needed.

o  Allows for an additional $300k to be moved from non-appropriated to the Capital Project Fund for future projects.

Where does the money come from?

·  Operating Budget

o  No changes to board approved operating budget

·  General Fund Balance (Reserves)

o  Restricted Reserves

§  TABOR $265,954

§  Bond Restriction $1,092,963

o  Non-appropriated Reserves

§  Unrestricted $1,166,425- 13% of operational expenses (Goal 6.5%-10%: optimum %)

§  Unrestricted reserves can only be spent on one-time expenditures. Cannot be used for on-going expenses such as payroll/benefits or lease payments.

Things we know and don’t know:

·  Unknown:

o  Property tax?

o  Annual maintenance cost?

o  Additional HOA fee?

·  Known:

o  No additional expense for general liability- falls under current policy umbrella.

If there is no Land Acquisition:

·  Corrections to Enterprise Fund:

o  Board would need to appropriate $575k from the General Fund Non-Appropriated Reserves to the LCS Building Corporation. Funds would sit in the LCS Building Corporation’s bank account.

o  Ongoing increased lease payments of approximately $110,000 per year for approximately 5 years. This expense would be an operating expense so other expenditures would need to be held or lowered to cover the increase.

·  Corrections to Non-Appropriated Reserves:

o  Board would need to appropriate another $600k out of non-appropriated reserves. These funds would sit either in the General Fund with a commitment on them or move to the Capital Projects Fund for further projects. If remain in the General Fund funds MUST be committed for a specific purpose.

Discussed:

·  Funds would not be from the Operating budget, which is where salaries originate from. It would be from the General Fund Balance (Non-Appropriated Reserves) not from Restricted Reserves.

·  The final decision on the current land acquisition offer will be known in 2 weeks.

·  Purchase of the land would be proactive due to the fact that this land is the last opportunity to purchase land close to the LCHS.

·  Motion by Ms. Hansen to authorize LCS Building Corporation to formally negotiate on behalf of LCS for land purchase at parcel space #87292-00-025 up to the amount of $910k.

·  Motion seconded by Joel Goeltl

·  Motion on the floor: All in favor, none opposed

·  Motion carries

LCS Building Corp will process till next Friday 10/7 to do due diligence.

Survey of the land would be the following week 10/10/16

Meeting adjourn: 7:25pm