CAT Tracks for July 25, 2003 CAIRO FOP HOLDS REGULAR MEETING

The Cairo Financial Oversight Panel held its regular monthly meeting on July 24th...

The "Call to Order" was delayed until 10:45 a.m. due to the lack of a quorum. One member was physically present, one was electronically present (by phone), and one was absent. All three financial administrators were present, as was Mark Mullins, Bob MacIntosh, Superintendent Isom, and Ilene Pierce. Carole and Debbie (both of ISBE) were also "electronically present".

A motion was made and passed to approve the minutes of the closed sessions held on June 26th and July 3rd. The Panel then voted to go into closed session at 10:46 a.m. to "Discuss Personnel, Contracts, and Negotiations". The Panel voted to come out of closed session at 12:13 p.m.

The Panel voted to table Items #5 and #6 on their agenda: "Recommendation Regarding Liability Insurance" and "Contract Proposal - Educational Management Consultants".

The Panel then turned to Item #7 - "Consideration of Actions Taken by the District/Bills Payable". Superintendent Isom reported that there were no "unusual" bills this month. The FOP financial administrators indicated that they had reviewed the Board's actions and recommended approval with the exception of the first item on the list. (There was no indication what that item was.) Among the items approved were the certified personnel recalled and/or reassigned by the Cairo BOE at its regular July meeting and a salary increase for Constance Williams.

The FOP administrators then presented a "Discussion of District's Finances Including the Status of the FY04 Budget". A lot of numbers were bounced around, but the bottomline was that the District is in better shape (due to the ISBE loan of $925,000)...approximately $600,000 "to the good" at this point.

The FOP administrators reported that a budget for the coming school year "was in the works"...should be ready for the Cairo BOE's August meeting. It would be put on reading at that time for the required 30 days and adopted in September. They reported a sharp decline in projected expenditures with disclaimers that $414,000 of Tax Anticipation Warrants had to be paid in full as soon as local tax monies were received by the District AND that the District was starting off "in the hole" by approximately $300,000. So...the final projection was that they anticipated that the District would run a surplus of approximately $300,000 for FY04.

BUT...this news was tempered with a reminder that the District currently had a long-term debt of $3,410,000.

Item #9 on the agenda was a "Report by Dr. Isom Regarding District Plans". The superintendent indicated that he did not really have anything to report, but that he wanted to make the Panel aware that the Cairo BOE had approved - at no cost or commitment - a feasibility study to be conducted by Energy Systems. The study would explore the possibility of remodeling the CJHS building to house Emerson, Bennett, and Garrison. The FOP listened, but questioned where the District was going to get the money to do any recommended remodeling. Superintendent Isom responded by stating that funding sources were supposed to be part of the study.

The final item on the agenda was "New/Other Business". Superintendent Isom brought up an item tabled previously - approval of legal representation by the District. The FOP indicated its continued displeasure over the money being spent by the District for legal services...to the tune of $334,000 over the past three years! The FOP indicated that this was out of line and unacceptable. Further discussion (and input from the financial administrators) produced a consensus that the problem was not so much the specific amount being billed for individual services...it was the District's dependence on legal services...it's frequency of use. (Like paying lawyers by the hour to negotiate - try hiring a carpenter to build a house...by the hour! Like firing a 33-year employee for going into the hospital and/or not paperclipping documents...trial in federal court pending! Like firing a principal a month before retirement...and then hiring him back a couple of weeks later! Like...this list could go on forever!)

The FOP...after again expressing displeasure...voted to retain Robbins et al as legal representatives for FY04.

The Panel indicated that it would be necessary to hold a special meeting in early August...that Dr. Isom would be in contact for the purposes of scheduling.

A motion was made and passed to adjourn at 12:48 p.m.