BOARD FINANCE COMMITTEE MINUTES

JANUARY 7, 2002

Members of the Board Finance Committee, Chairman Rosie Amato, Charlene Koch and Dr. Craig Haytmanek, together with board members William Heske, Edward Gallagher, Loretta Leeson, Joseph Craig, Margaret Williams, and Julie Venanzi 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 Lavinia De Castro from the Express Times and Genevieve Marshall from the Morning Call.

OPEN FORUM - There were no items for discussion.

BUILDING LEASE - The district is currently renting approximately 10,000 square feet in Bethlehem Township for the CA/MP Program and for storage and warehousing purposes. This lease is currently renewed month to month.

Mr. Majewski presented a proposed 10-year lease for the committee’s review. Discussion followed with regard to the pro’s and cons of leasing the space. Mr. Majewski explained the flexibility of the lease and the below market cost per square foot. This item will appear on the January agenda for approval.

RATE LOCK PROPOSAL - The district had an opportunity to make a payment to a finance company which would lock in current interest rates for two years. Due to changes in financial pressures on the district the cost of the proposal is no longer favorable and Mr. Majewski will not recommend the rate lock proposal.

REPOSITORY SALES - Northampton County has not been able to sell the properties presented this evening through a 1997 Sheriff’s sale and they were turned over to the Repository. The County currently has an offer of $500 per property. If the district authorizes the sale of these properties they will be put back on the assessment rolls allowing taxes to be collected once again. Discussion followed. It was agreed that the district will authorize the sale of said properties. This item will appear on the January 28 agenda.

2002-2003 BUDGET PROJECTIONS – Mr. Majewski presented budget projections for the 2002-2003 school year. Due to increases in health care costs, retirement contributions, insurance coverages and debt service payments a tax increase as high as 10.6 percent or 3.55 mills may be needed for the coming year.

The tax increase is needed to provide an additional $10 million dollars in projected revenue to cover the anticipated increases. Discussion followed with questions regarding ways to avoid such an increase.

Mr. Majewski indicated that these projections represent the “worst case” scenario and are without any cost-cutting measures or trimming. The formal presentation of the 2002-03 budget will be made in April

The meeting adjourned at 7:15 p.m.

Minutes prepared by _________________________________________________

Adele Embardino, Confidential Secretary to the Director of Business Affairs