Agenda - Council - 07/12/2022 - Laserfiche WebLink

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Possible Future Unionization of Charter School Workforce As of the date of this Official Statement,the workforce of the Charter School is not unionized and management of the Charter School is not aware of any active unionization efforts with respect to its employees. There are currently several charter schools in the State who have union teachers. In the event that the labor relations of the Charter School and its employees change in the future and, if the employees of the Charter School were to vote to unionize,then the operational costs of the Charter School would likely rise, and such increase could be significant. If the employees of the Charter School were to unionize, no assurance could be given that such change would not adversely affect the amount of State General Education Aid available for the portion of the Lease Payment not covered by Building Lease Aid. Department of Education Approval of Authorizer Every charter school in the State must be authorized by a 501(c)(3)organization, school district, or post-secondary institution approved by the Commissioner of the Minnesota Department of Education (the "Commissioner"), pursuant to State law as an "authorizer". [[TO BE UPDATED WITH VOA DETAILS]] [The "authorizer" of the Charter School is [Volunteers of America — Minnesota] (the "Authorizer").] Each authorizer must be approved by MDE and is subject to review every five years. If the Commissioner finds that an authorizer such as the Authorizer has not fulfilled its requirements under State law,the Commissioner may subject the authorizer to corrective action,which may include terminating the charter contract with any schools the authorizer has chartered. Further, State law was amended in 2009 to change the criteria for becoming an authorizer and the oversight and accountability requirements applicable to authorizers such as the Authorizer. As a result, a number of previously approved authorizers are no longer eligible to sponsor charter schools. There can be no guarantee that the Authorizer will continue to remain in good standing with the State as an approved authorizer. See"APPENDIX A—THE COMPANY, THE CHARTER SCHOOL, AND THE SERIES 2022 PROJECT — THE CHARTER CONTRACT AND AUTHORIZER" and "APPENDIX B — MINNESOTA LAWS RELATING TO CHARTER SCHOOLS"in this Official Statement. Financial Statements The Audited Financial Statements of the Charter School attached hereto as "APPENDIX D — AUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE FISCAL YEAR ENDED JUNE 30,2021"reflect the last year of operation of the Charter School for which audited financial statements have been prepared. Unaudited interim financial statements of the Charter School are attached hereto as "APPENDIX E—UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE CHARTER SCHOOL FOR THE ELEVEN-MONTH PERIOD ENDED MAY 311 2022." The unaudited financial statements have been prepared by the Charter School's finance manager, BerganKDV, and have not been audited, reviewed or examined by any independent accounting firm. For information regarding the Company's and the Charter School's expectations after the issuance of the Series 2022 Bonds, see "APPENDIX C — BUDGET PROJECTION" in this Official Statement. The financial statements of the Company are not included in this Official Statement because the Company does not have significant financial resources and is not anticipated to have significant assets other than the School Facilities. Property Tax Exemption Under present State law and rulings, generally public charter schools are exempt from property taxes levied by political subdivisions of the State so long as such property is used for public school purposes (although such property is subject to special assessments for local improvements to the property). The Budget Projection does not anticipate the payment of property taxes by either the Company or the Charter School [with respect to the Elementary School Campus because such campus is already exempt from taxation]. However,such laws,regulations and rulings are subject to change,and no assurance can be given 27