There is no privilege of the floor.

Mr. Yezukevich reported that revenue is down close to $1M with a contributing factor being a decline in enrollment. Administration is in the process of reviewing expense lines and expected changes in personnel with savings realized bringing the deficit down to $850K. With a debt service ratio of .89 the goal is to reduce the deficit down to $650K for a 1.1 ration and $375K for a 1.2 ratio.

Discussion ensued including the following highlights:

• Care is taken not to make reductions that impact teaching and learning in a negative way.
• Drastic cuts are not needed as from a cash balance standpoint absorbing $500K is reasonable but may impact budget planning for FY27.
• Prepayment of the Eastern bank loan.

Following discussion, it was agreed that Mr. Yezukevich with reach out to bond holder to further discuss the current situation and path forward, and advice on the cost of employing the services of a consultant for advice on maintaining stability and long-term success.

Discussion also ensured on the interest allotted by Eastern Bank. Ms. Calvert reported that she had reached out to the bank for consideration of a change in the interest rate and the bank declined.  Mr. Yezukevich will reach out to the bank for further discussion.

Ms. Calvert will have a more concise budget update after receiving the tuition reimbursement for December at the end of the month, indicating any adjustments in foundation rate.

In consideration of the current budget situation, a presentation will be made to the Board at its January meeting for a formal vote on whether a budget adjustment needs to be made for the current year.

Mr. Martin suggested working with Mr. Higgins to have a wholistic view of cash in reserves and how to maximize asset by prudent investment.

He suggested that a fiscal policy be put in place to establish a framework to review investments on a regular basis.

Mr. Romer reported that, insofar as three employes began their employment at FRCS at a time when they were not eligible to participate in MTRS retirement benefits, MTRS has since advised FRCS that these employees are in fact eligible. Mr. Romer consulted with an actuary to assess the amount due the employees. FRCS will buy back a portion of the employees in MTRS in order to close the gap in retirement income. Administration will work with the actuary and legal team to reach an agreement. The invoices received from MTRS for two employees is $239K and waiting the invoice for the third employee expected to be in the $100-150K range.

Discussion ensued on acknowledging the expense in FY25, the year in which the obligation became known. Mr. Yekuvich will reach out to the auditor for further advice.

Mr. Yezeukevich advised that two meetings will be scheduled to approve minutes.

December 17 and 18 at 8:00AM

Solar Project

Mr. Michelot reported that the solar project will begin at the end of January for completion in mid-March. Once the panels are installed, the vendor will work with National Grid for connection. Only a small savings will be realized in FY26.