BOARD FINANCE COMMITTEE MEETING MINUES

                                                            JANUARY 12, 2004

 

Members of the Board Finance Committee, Chairman Rosie Amato and Charlene Koch together with board members William Heske, Loretta Leeson, Joseph Craig, Dr. Haytmanek, Margaret Williams and Diane Rowe met with Superintendent Dr. Joseph Lewis, Director of Business Affairs Stanley J. Majewski, Jr., and Associate Superintendent Michele Kostem, in Superintendent’s Conference Room A. Also in attendance was Nick Falsone from the Express Times and Genevieve Marshall from the Morning Call.

 

OPEN FORUM – Mrs. Koch reminded the committee of PSBA’s Legislative Leadership Conference being held at the Hotel Hershey on February 8 and 9.

 

Mr. Craig questioned the impact of the redevelopment of former Bethlehem Steel land. Mr. Majewski and Dr. Lewis commented about the development of Lehigh Valley Industrial Park and indicated that millions of dollars in real estate taxes will be realized. However, this redevelopment will take several years to complete and anticipated revenues are not included within the district’s current five-year financial plan.

 

Mr. Heske inquired about the amount of State subsidy the district will be receiving. Mr. Majewski responded that the district is doing fairly well compared to other local school districts and will be receiving increases of approximately 4.1 % for basic education and 4.3% for special education

 

Mr. Craig advised the committee that Mr. Amato resigned as Chairman of the Finance Committee and appointed Mrs. Koch as Chairperson.

 

UPDATE ON 2005 & 2007 FORWARD STARTING FINANCING – Mr. Majewski informed the committee that by delaying the final pricing of the bond refinancing and the Forward Starting Swap Agreements the district will save an additional 4.4 million dollars.

 

2004-2005 BUDGET GUIDELINES – Dr. Lewis and Mr. Majewski presented the 2004-2005 budget guidelines. There is no change in class size. An additional $1,000 per school is being requested for library books.

 

 

January 12, 2004

Board Finance Committee Meeting Minutes

Page -2-

 

 

Discussion followed regarding the usage of libraries in the schools, especially in the high schools. Dr. Lewis will instruct Dr. Nelson to survey the schools library use and report back to the committee.

 

FINANCIAL PROJECTIONS – Mr. Majewski presented a financial projection for the district. A “worst-case scenario” indicates the need for an 8% tax increase for district residents. Employe benefits and retirement costs, as well as salary increase make up 90% of the budget. Health care will be increasing as much as 4 or 5 million dollars during the next four years.

 

Discussion followed. Mrs. Leeson indicated that she would like the administration to “sharpen their pencils” and keep any increases as minimal as possible.

 

Dr. Lewis indicated that the administration will try its best to trim any excess but that he did not want to cut programs or services for students.

 

Mr. Majewski’s projections reflect continued development in Bethlehem Township throughout 2008. After that time township commercial development will begin to decrease. Mr. Majewski is hoping that the city will increase taxable assessed values due to the development of Lehigh Valley Industrial Park VII.

 

Questions regarding use of fund balance to reduce a tax millage increase were asked. Mr. Majewski indicated that the current fund balance was at an appropriate level for the size of the school district’s budget and should not be decreased.

 

The first presentation of the budget to the public will be Wednesday, April 21, 2004. The second budget hearing will be held on May 3 tentative adoption is scheduled for May 17, and final adoption on June 21. The administration assured the committee that every step would be taken to produce a tight budget.

 

CONCESSION STAND REPORT - The net profit from the districts’ stadium concession stands totaled $18,015.22. This amount will be disbursed as follows: $10,809.14 each to Liberty and Freedom Booster Clubs and the remaining $7,206.08 to the district.

 

The meeting adjourned at 9:25 p.m.

 

Minutes prepared by __________________________________________

                                    Adele C. Embardino, Confidential Secretary to the

                                    Director of Business Affairs