[I. Call to Order]
[00:00:06]
WE'RE GOING TO CALL THIS MEETING TO ORDER.
IT IS MARCH 23RD, 2026, AND THE TIME IS 530.
I WILL NOW CALL FOR THE ROLL CALL FOR THE SPECIAL ELECTION.
[III. Approval of Agenda]
NOW I'LL ASK FOR APPROVAL OF THE AGENDA.IS THERE ANY DISCUSSION? ALL IN FAVOR? AYE.
THIS PUBLIC MEETING IS REQUIRED
[IV.A. Proposed Sioux City Property Tax Levy for the Fiscal Year July 1, 2026 – June 30, 2027]
AS PART OF THE DISTRICT'S CERTIFIED BUDGET.THE NOTICE PROVIDED TO EACH RESIDENT SHOWS THE MAXIMUM TOTAL PROPERTY TAXES THE DISTRICT WILL ADOPT AS PART OF THE CERTIFIED BUDGET, WHICH WILL BE ADOPTED ON APRIL 30TH.
THE BOARD SECRETARY IS HEREBY DIRECTED TO ENTER ANY WRITTEN COMMENTS INTO THE RECORD OF THE PUBLIC HEARING.
FOR THOSE OF YOU IN ATTENDANCE, THANK YOU FOR BEING HERE TODAY.
WE VALUE YOUR INPUT AND YOUR INTEREST.
AND THE HEARING OF THIS COMMENT AND LOOK FORWARD TO HEARING YOUR COMMENTS.
IF YOU ARE PLANNING TO SPEAK, WE HOPE THAT YOU HAVE FILLED OUT THE FORM AT THE BACK OF THE TABLE, INCLUDING YOUR NAME AND ADDRESS, AND HAND IT TO OUR BOARD SECRETARY.
YOUR NAMES WILL BE CALLED IN THE ORDER THEY WERE RECEIVED.
EACH SPEAKER WILL BE GIVEN A MAX OF TWO MINUTES.
YOUR PUBLIC COMMENTS WILL BE CONSIDERED AS PART OF THE DISTRICT'S...
AS A REMINDER, BOARD MEMBERS, WE ARE HERE TO LISTEN AND RECEIVE COMMENTS.
BOARD MEMBERS WILL NOT ENGAGE IN DIALOGUE OR RESPOND TO QUESTIONS DURING THIS MEETING, BUT MAY ADDRESS ISSUES THAT MAY ARISE FOR FUTURE BOARD MEETINGS.
AND MY APOLOGIES, I TOLD YOU FIVE MINUTES, BUT BOARD PRESIDENT HAS STATED TWO, SO.
WELL, IF YOU WERE TOLD FIVE, THEN WE'LL HONOR THAT.
GOOD EVENING, BOARD PRESIDENT LEE, MEMBERS OF THE BOARD.
I'M A SIOUX CITY TAXPAYER AND OWNER OF DK INSURANCE HERE IN TOWN.
I'M HERE THIS EVENING BECAUSE OF THE PROPOSED FISCAL 2027 YEAR PROPERTY TAX LEVY AND SPECIFICALLY BECAUSE I BELIEVE THERE MAY BE A STRUCTURAL TOOL AVAILABLE TO THIS DISTRICT THAT'S WORTH PUTTING IN FRONT OF YOU BEFORE THAT BUDGET IS FINE.
I WANT TO BE RESPECTFUL OF YOUR TIME TONIGHT, SO I'LL BE BRIEF.
I'VE PUT TOGETHER A LEAVE-BEHIND BINDER FOR EACH ONE OF YOU THAT COVERS EVERYTHING IN MUCH MORE DETAIL.
THE PROPOSED LEVY INCREASE THIS YEAR, $3.7 MILLION, IS SIGNIFICANT, AND THE REASON STATED IN THE DISTRICT'S OWN PUBLISHED NOTICE IS STRAIGHTFORWARD.
RISING INSURANCE PREMIUMS ARE DRIVING UP THE MANAGEMENT FUND.
THAT'S NOT A SURPRISE TO ANYONE IN THE ROOM.
HEALTH INSURANCE COSTS HAVE BEEN THE NUMBER ONE BUDGET PRESSURE FOR PUBLIC EMPLOYERS IN IOWA FOR YEARS RUNNING, AND THIS DISTRICT IS NOT ALONE.
WHEN YOU LOOK AT ALL THREE WOODBURY COUNTY TAXING ENTITIES, CITY, THE COUNTY, AND THE SCHOOL DISTRICT.
THE COMBINED FISCAL 2027 LEVY INCREASES ABOUT $8.5 MILLION.
SAME PROBLEM, THREE SEPARATE BILLS ALL LANDING ON THE SAME PROPERTY.
THE QUESTION I'D LIKE TO PUT IN FRONT OF YOU TONIGHT IS SIMPLE.
IS THERE A STRUCTURAL ALTERNATIVE TO ABSORBING THAT COST YEAR OVER YEAR? I BELIEVE THERE IS, AND IT'S CALLED THE CHAMPION HEALTH PLAN OR THE CHAMP PLAN.
THE CHAMP PLAN IS A SELF-FUNDED EMPLOYER BENEFIT STRUCTURE THAT HAS BEEN USED FOR OVER A DECADE IN MAJOR EMPLOYERS AND MUNICIPALITIES ACROSS THE COUNTRY.
IT WORKS THROUGH TWO SEPARATE COMPONENTS.
THE FIRST IS A PRE-TAX HEALTH COVERAGE PLAN, OR A MEC PLAN, UNDER SECTION 125 TAX CODE THAT REDIRECTS ROUTINE AND PREVENTATIVE CARE AWAY FROM YOUR MAJOR MEDICAL POOL.
THAT ALONE CAN SIGNIFICANTLY REDUCE THE DISTRICT'S CLAIM EXPOSURE.
THE SECOND COMPONENT IS A POST-TAX PLAN.
POPULATION HEALTH MANAGEMENT PLAN THAT GENERATES POTENTIAL TAKE-HOME PAY INCREASES FOR EMPLOYEES BASED ON COMPLETING PRESCRIBED HEALTH ACTIVITIES, THINGS LIKE HEALTH RISK ASSESSMENTS, CLINICAL CHECK-INS, SO ON.
THESE TWO COMPONENTS ARE COMPLETELY SEPARATE FUNDING STREAMS. THEY ARE NOT CO-MANAGED.
[00:05:01]
REVIEWED BY AN INDEPENDENT ERISA ATTORNEY.THE KEY NUMBERS, AND I USED JUST PUBLIC NUMBERS THAT WERE AVAILABLE, SO 2,500 DISTRICT EMPLOYEES IS WHAT I WENT OFF OF.
THE FICA SAVINGS ALONE COULD POTENTIALLY REACH ABOUT $1.5 MILLION, WHICH WOULD HAVE COMPLETELY OFFSET YOUR INSURANCE RISING COSTS.
THE TOTAL MODELED SAVINGS WITH FICA PLUS THE CLAIMS MITIGATION COULD POTENTIALLY REACH ABOUT $4 MILLION ANNUALLY.
FIGURE COULD POTENTIALLY OFFSET THE DISTRICT'S SHARE.
NOW I WANT TO BE CLEAR, I'M NOT STANDING HERE TONIGHT ASKING YOU TO APPROVE ANYTHING.
THESE ARE MODELED PROJECTIONS.
THE RIGHT NEXT STEP IS FOR YOUR CFO, LEGAL COUNSEL, AND HR TO SIT DOWN WITH US TO WALK THROUGH THE PLAN IN DETAIL USING THE DISTRICT'S ACTUAL NUMBERS.
BUT THE POTENTIAL HERE IS REAL.
IT'S BEEN LEGALLY VETTED AND IT DESERVES A BUDGET AS CLARIFIED.
I WANT TO TAKE A MOMENT TO GIVE YOU SOME CONTEXT ON WHY I'M HERE TONIGHT, WHY I WAS IN FRONT OF THE CITY COUNCIL JUST A MINUTE AGO AND I'VE BEEN IN FRONT OF WOODBURY COUNTY.
THEY'VE ALREADY HEARD A VERSION OF THIS CONVERSATION.
THIS ISN'T THREE SEPARATE PITCHES.
THIS IS ONE COORDINATED EFFORT TO BRING A SINGLE STRUCTURAL SOLUTION TO ALL THREE ENTITIES THAT SHARE THE SAME PROBLEM AND THE SAME TAXPAYERS.
THE FISCAL 2027 LEVY INCREASE ACROSS SIOUX CITY, WOODBURY AND THE SCHOOL DISTRICT IS $8.5 MILLION, ALL DRIVEN.
SUBSTANTIALLY BY THE SAME ROOT COST, RISING HEALTH INSURANCE AND EMPLOYEE BENEFITS.
THREE GOVERNING BODIES, THREE SEPARATE BUDGETS, ONE COMMUNITY ABSORBING ALL OF IT.
NOW HERE'S THE OTHER SIDE OF THAT LEDGER.
IF ALL THREE ENTITIES WERE TO IMPLEMENT THE CHAMP PLAN, THE MODEL COMBINED POTENTIAL SAVINGS OF FICA PLUS CLAIMS MITIGATION COULD BE ABOUT $10.4 MILLION EVERY SINGLE YEAR, AND THAT'S NOT A ROUNDING ERROR.
THAT'S POTENTIALLY MORE THAN THE ENTIRE COMBINED LEVY INCREASE GENERATED THROUGH A STRUCTURAL REDESIGN OF HOW EMPLOYEE BENEFITS ARE FUNDED AND DELIVERED.
THE SCHOOL DISTRICT HAS THE LARGEST EMPLOYEE BASE OF THE THREE ENTITIES, ROUGHLY, AGAIN, 2,500 PEOPLE IS THE NUMBER THAT I USED.
THAT MEANS THE DISTRICT STANDS TO BENEFIT THE MOST, AND IT MEANS THE SCHOOL DISTRICT HAS THE OPPORTUNITY TO LEAD.
WE AREN'T ASKING THREE SEPARATE ENTITIES TO TAKE A LEAP OF FAITH INDEPENDENTLY.
WE'RE ASKING THEM TO LOOK AT THIS TOGETHER, THE COMMUNITY PARTNERS THEY ALREADY ARE, AND DETERMINE WHETHER A COORDINATED APPROACH OR A SHARED PROBLEM MAKES SENSE.
WE BELIEVE IT DOES, AND THE POTENTIAL NUMBERS SUGGEST IT'S WORTH FINDING OUT.
WHAT IT COULD MEAN FOR TEACHERS AND STAFF.
I ALSO WANT TO SPEAK TO THAT FOR A MOMENT.
THIS DISTRICT IS COMPETING FOR TEACHERS.
SOUTH DAKOTA HAS NO STATE INCOME TAX.
IOWA TEACHERS TAKE HOME LESS OF EVERY PAYCHECK, AND THAT SHOWS UP IN HIRING CONVERSATIONS.
THE CHAMP PLAN IS DESIGNED TO POTENTIALLY PUT $1,500 TO $3,000 PER YEAR IN ADDITIONAL TAKE-HOME PAY DIRECTLY INTO EMPLOYEES' POCKETS, EQUIVALENT TO WHAT COULD BE A 3% TO 6% EFFECTIVE RAISE MODELED FOR A TEACHER EARNING $50,000 A YEAR IS WHAT I BASED THAT NUMBER OFF OF.
AND THAT COMES ON TOP OF ACCESS TO ZERO-COST PRIMARY CARE, ZERO-COST URGENT CARE, GENERIC PRESCRIPTIONS, AND MENTAL HEALTH SERVICES, BENEFITS THAT REDUCE WHAT FAMILIES PAY OUT OF POCKET EVERY MONTH.
THIS ISN'T A WAGE NEGOTIATION.
IT'S A BENEFIT STRUCTURE DESIGNED TO IMPROVE TOTAL COMPENSATION.
I WANT TO ADDRESS SOMETHING DIRECTLY BECAUSE I KNOW THE FIRST THING THAT COMES TO MIND WHEN YOU HEAR A PROPOSAL LIKE THIS.
THIS PLAN DOES NOT REPLACE YOUR CURRENT INSURANCE.
YOUR MAJOR MEDICAL COVERAGE STAYS EXACTLY AS IT IS.
THE CHAMP PLAN IS DESIGNED TO SIT ALONGSIDE OF IT AS A FRONT LAYER THAT HANDLES ROUTINE AND PREVENTATIVE CARE BEFORE IT EVER REACHES THE MAJOR MEDICAL POOL.
YOUR EXISTING CARRIER, YOUR EXISTING PLAN, YOUR EXISTING NETWORK, NONE OF THAT CHANGES.
IT DOES NOT REQUIRE RENEGOTIATING UNION CONTRACTS OR COLLECTIVE BARGAINING AGREEMENTS.
EMPLOYEE PARTICIPATION IN THE CHAMP PLAN IS VOLUNTARY.
NO EXISTING CONTRACTUAL BENEFIT IS ALTERED.
AND YOUR CURRENT BROKER RELATIONSHIP STAYS INTACT.
WE'RE NOT ASKING THE DISTRICT TO CHANGE BROKERS.
THE CHAMP PLAN LAYERS ON TOP OF WHAT YOU CURRENTLY HAVE.
I KNOW THE FIRST QUESTION YOUR LEGAL COUNSEL WILL ASK IS WHETHER THE STRUCTURE HOLDS UP.
THEY ANSWER BASED ON INDEPENDENT OUTSIDE REVIEW AND THE DESIGN TO COMPLY WITH APPLICABLE ERISA AND IRS REQUIREMENTS.
FRASER STRYKER PC, AN OMAHA-BASED ERISA LAW FIRM, REVIEWED THE FULL PLAN DOCUMENTS AND HAVE INCLUDED AN ERISA OPINION IN THE LEAVE-BEHIND BINDERS THAT I'M GOING TO GIVE YOU GUYS TODAY.
WOULD YOU LIKE TO GIVE US THOSE BINDERS SINCE WE'RE OUT OF TIME? YEAH, IF YOU WOULD LIKE TO SHARE THOSE WITH US, PLEASE.
FIVE MINUTES ISN'T A LOT OF TIME, I KNOW, BUT WE APPRECIATE IT.
SO HERE'S WHAT I'M ASKING TONIGHT.
PLEASE DIRECT YOUR CFO, YOUR LEGAL COUNSEL, AND YOUR HR TEAM TO REACH OUT TO US.
WE'LL WALK THROUGH THE PLAN, THE LEGAL OPINION, AND THE SAVINGS ANALYSIS BUILT AROUND THE DISTRICT'S ACTUAL NUMBERS.
NO COMMITMENT, NO COST, NO PRESSURE.
I'VE PREPARED A LEAD-BEHIND BINDER.
I'M SUBMITTING A COPY OF THAT BINDER TO YOU GUYS.
AND AGAIN, IF WE SIT DOWN WITH LEGAL, I'LL BRING AN OUTSIDE ERISA OPINION ATTORNEY WHO DEALS WITH THESE TYPES OF
[00:10:01]
BENEFITS EVERY SINGLE DAY AND WALK YOUR COUNSEL THROUGH EVERY SINGLE LINE ITEM TO MAKE SURE THAT IT'S COMPLETELY VETTED.I OWN DK INSURANCE HERE IN SIOUX CITY.
I'M A TAXPAYER, AND I HAVE A SOLUTION.
THANK YOU FOR YOUR TIME AND YOUR SERVICE TO THE DISTRICT.
LOOK FORWARD TO OUR CONVENTION.
I DO NOT HAVE ANY OTHER FORMS FOR TO SPEAK.
PROPOSED SIOUX CITY PROPERTY TAX LEVY FOR THE FISCAL YEAR JULY 1, 2026 TO JUNE 30, 2027.
NOTICE WAS PROVIDED THAT A HEARING WOULD BE HELD AT 530 AT THE EDUCATIONAL SERVICE CENTER, 627 4TH STREET, SIOUX CITY, IOWA, ON THE 23RD DAY OF MARCH, 2026, TO RECEIVE PUBLIC INPUT ON THE PROPOSED SIOUX CITY PROPERTY TAX LEVY FOR THE FISCAL YEAR OF JULY 01, 2026 THROUGH JULY 30, 2027.
BOARD MEMBERS? IS THERE ANYTHING THAT YOU'D LIKE TO ADD? IF YOU NEED A MOTION, THEN I WOULD MOVE TO APPROVE THE LEVY THAT WE HAVE PROPOSED, WHICH I THINK DOWN HERE, CORRECT, IS? THERE'S NO MOTION.
NO, JUST DISCUSSION. YEAH, JUST DISCUSSION. WE'RE READY TO MOVE FORWARD. ANY DISCUSSION? IT'S BEEN PUBLISHED, RIGHT? YEP. OKAY.
ALL RIGHT. WELL, HEARING NONE, IS THERE A MOTION TO ADJOURN THE MEETING? SECOND. ALL THOSE IN FAVOR? AYE. AYE. MEETING ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.