FALA Volunteer Corps
January Advisory Meeting Minutes
Date/Time: Tuesday, January 9, 2018 @ 6:30 pm
Location: Flagstaff Arts & Leadership Academy, Room 4
In Attendance: Debbie Bodin, Joe Bodin, Susan Fox, Jeran Fox, John Brixen, Molly Silverman, Janet Levin, Stephanie Kohnen, Larry Wallen
Agenda Items:
- Larry Wallen presents Financial Issue
- Expenses are exceeding monthly Income (revenue)
- Monthly expenditures are depleting cash balance
- One million dollar cushion from the State of Arizona
- Down approximately twenty 7th graders is the main issue (lowers income)
- Which do you fix: lower expenses and/or raise revenue
- Causes
- 2010 Bond that built the building ($4.3 million = $31,000 per month) for next 23 years = $372,000 per year. Bonding company is in Tucson.
- Promissory Note with Contractor (sued) – $6,000 per month (the contractor said you asked for changes above the original estimate, they sued, and it was settled at $500,000 in damages at $6,000 per month for ten years and then re-evaluated at 11% interest). Larry has stopped the payments and is asking their attorney to get back to the table. Has paid $245,000 with only $110,000 towards principal so far.
- SPED settlement – $3,000 per month (until $150,000 is paid off). Paid off last spring.
- Reduced enrollment – loss of 20 seventh graders = $159,000.
- Current funding – 1st year implementation – adjusting monthly payments
- Examples
- August – $202,232.28
- January – $181,000
- Examples
- Applying for $150,000 loan through a Tucson bonding company.
- Options to Solve Issues
- Increase Revenues – Can’t increase state funding
- Current Shortfall – Need $25,000 to meet expenses
- $400,000 in cash reserve (last June). Now at $150,000. Makes about 4 months of cushion in the bank
- Refinance the Bond (new tax bill may allow us to refinance it). Doesn’t pay it off, just kicks the money down the road. currently at 7% – reduced to 3.5%.
- Promissory note rolled principal at a lower percentage too.
- Recruiting more students – adding 6th grade ($350,000 in new revenue)
- Increase Class Size slightly – can put up to 45 students in the modulars.
- Income Possibilities
- Tax Credit Increases
- campaign to try to generate this revenue
- $400 married / $200 individual
- Subscription Option – $33.33 per month or $16.67 per month (create a campaign)
- We are a 501c3 so any general donations can be done.
- 529 accounts is available for tuition only (so we probably don’t count)
- Corporate Sponsorship Program – multiple levels for different size businesses
- Culture of Giving – Fundraising programs. Eric Walden (Choir teacher) is looking into creating a program.
- Grant Writing – our population makes us not eligible for many of the grant programs.
- Teacher Fund – ask parents to give money directly to teachers (BASIS raises $250,000 per year). Goes to teachers for bonuses. Do a Subscription scenario.
- Reduced / Free Lunch Rate – fill out forms and the state gives extra money if there is a high enough percentage of people qualifying.
- Tax Credit Increases
- Expenses
- Operational costs are $10,000
- Payroll is $175,000
- Cost Reduction measures
- Energy is controllable
- Paper and Printing (google school usage)
- Messaging
- consistent message
- town halls
- Meeting ends at: 8:35 pm