BOARD FINANCE COMMITTEE MINUTES

              JANUARY 22, 2001                        

 

Members of the Board Finance Committee, Chairman Lynn Glancy and Joseph Craig, together with board members William Heske, Loretta Leeson, Charlene Koch, Edward Gallagher, Rosie Amato and Margaret Williams, met with Superintendent Thomas Doluisio, Director of Business Affairs Stanley J. Majewski, Jr., and Assistant Superintendent Michele Kostem, in the Superintendent’s Conference Room.  Also in attendance were Genevieve Marshall from the Morning Call and Lavinia Hechinger from the Express Times.

 

OPEN FORUM  - No items for discussion.

 

PLANNING-BUDGETING GUIDELINES -  Stanley Majewski presented the Planning-Budgeting Guidelines for the 2001-2001 budget to the committee. Due to conflicts in some the board members schedules a change was made in the date of one of the budget hearings.  The April 26 budget hearing will be held on Monday, April 23 at 8:00 p.m., immediately following the regular monthly board meeting.

 

Mr. Heske questioned if changes in Special Education criteria will impact our guidelines with regard to staffing.  Mr. Craig requested a response by the January 29 board meeting.  The administration will look into these changes and respond accordingly.

 

FIVE YEAR FINANCIAL PLAN - Mr. Majewski reviewed the district’s five year financial plan.  It is anticipated that a 3.47 millage increase will be necessary for the upcoming budget.  The large increase is due to several factors; payments made to charter schools would represent one third of the tax increase as the district will have to pay approximately $2.5 million dollars to charter schools;  employe benefits for prescription drugs are increasing by 25-30% and industrial parks and other major building projects are in the works but won’t have an affect on the district’s revenues for two to three years. 

 

Much discussion followed with suggestions on how to keep the millage increase down.  The district would have to increase class sizes and/or cut programs in order to minimize a tax increase.  Mr. Majewski indicated that there is “light at the end of the tunnel after the 2001-2002 school year.”

 

 Discussion on whether the situation at Freemansburg school added to the increase in taxes revealed that it is expected that these costs will be born by the insurance companies or the roofing contractor.  Questions regarding the use of some of the fund balance to offset a major tax increase were dismissed.  The district has the lowest fund balance allowable by school board policy at the present time.  If revenues are favorable within the next two or three years we may be able to increase the fund balance.

 

 

 

Board Finance Committee Minutes

January 22, 2001

Page -2-

 

 

BOARD POLICY 711 - EMPLOYE CASUALTY LOSS -FIRST READING - Mr. Majewski presented this proposed policy as a result of the situation at Freemansburg School.  Many teachers bring personal materials to their schools as instructional adds.  This personal property is

not covered by any of the district’s current insurance policies and, in most cases, not covered by the individuals’ homeowners policy. 

 

It is recommended that reimbursement up to $2,000 per employe would be approved.  A yearly listing of personal possessions must be received and approved by the building principal. 

 

Much discussion followed with regard to who would be included in this coverage and how would the district fund this policy.    Mr. Majewski explained that the policy would be self-insured and it would only apply if a casualty or catastrophe occurred such as the mold problem in Freemansburg.  This board policy would not provide for reimbursement for losses incurred as a result of theft, vandalism, etc.

 

 It was agreed that the policy should be amended to reflect a maximum reimbursement of $1,000 instead of $2,000.  This item will appear on the January 29 agenda as a second reading.

 

TAX COLLECTOR COMPENSATION - Mr. Majewski informed the committee that once every four years compensation rates are re-established for the district’s tax collectors.  It is recommended that compensation for the Fountain Hill tax collector be increased from $4,000 to $4,500 and the Freemansburg tax collector receive $1,700, an increase from $1,500.  This item will appear on the January 29 agenda for board approval.

 

COLONIAL INTERMEDIATE UNIT 20 FIXED PERCENTAGE CATALOG DISCOUNT

Mr. Majewski requested that the committee approve the district’s participation in this cooperative purchasing bid.  We are not obligated to purchase from these vendors but wish to have the discounts available and applied to school district purchases.  The school district will evaluate the vendors used and determine what purchasing decision is in its best interest.  This item will also appear on the January 29 agenda for board approval.

 

The committee went into an executive session at 7:45 p.m.

 

Minutes prepared by:                                                                                       

Adele Embardino, Confidential Secretary to the Director of Business Affairs/Board Secretary