BOARD FINANCE COMMITTEE MEETING MINUTES

APRIL 5, 2004

 

Chairperson Charlene Koch together with Board Members Loretta Leeson, Margaret Williams, Rosario Amato, Craig Haytmanek, Julie Venanzi, William Heske, Joseph Craig and Diane Rowe met with Superintendent Joseph Lewis, Director of Business Affairs Stanley Majewski, and Associate Superintendent Michele Kostem, in Superintendent’s Conference Room A. Also in attendance were Les Bear from Arthurs LeStrange, Matt Kirk from Access Financial Markets, Genevieve Marshall from the Morning Call and Michael Buffer from the Express Times.

 

OPEN FORUM - Mr. Craig shared with the committee his reactions to several seminars he attended while at the NSBA Conference in Orlando. He reminded the committee that courtesy and etiquette should be followed at each of the board meetings. Information regarding breakdowns of the sessions will be distributed.

 

BASIS CAP SWAP PRESENTATION - Mr. Bear and Mr. Kirk advised the committee of an opportunity for the district to economically hedge the BMA v LIBOR floating interest rate the district either receives or pays monthly on its 2003 Interest Rate Swap.

 

Mr. Majewski stated that due to market changes this would be an attempt to counter balance interest rate fluctuations and would provide added stability to the district’s restructured debt payments.

 

Mr. Bear stated the Bethlehem Area School District was instrumental in getting Act 23 passed in September of 2003. The district was the first to restructure its finances using Interest Rate Swaps and Forward Start Agreements to lock in to lower interest rates.

 

If the committee agrees to pursue the Basis Cap Swap Proposal, Mr. Bear will prepare the necessary amendment to the Interest Rate Management Plan Resolution to be voted on at a future board meeting.

 

The committee approved proceeding with the Rate Basis Cap investigation to determine the financial benefit to the school district.

 

2004-2005 TAX PAYMENT SCHEDULE - Mr. Majewski presented the proposed tax payment schedule for 2004-2005. The schedule allows for a discount period, as well as installment payments. The first payment will be due August 30, 2004 and the last date of payment before a penalty is added will be October 29, 2004. For installment payments the first installment must be made by August 2, 2004 and the fourth and last installment by December 20, 2004. This schedule will be presented at the April 26, 2004 regular monthly board meeting.

 

The meeting adjourned at 8:50 p.m.

Minutes prepared by____________________________________________________________

                        Adele Embardino, Confidential Secretary to the Director of Business Affairs