BOARD FINANCE COMMITTEE MEETING MINUTES

                                                SEPTEMBER 13, 2004

 

Chairperson Charlene Koch together with Board Members Loretta Leeson, Margaret Williams, Julie Venanzi, William Heske, Diane Rowe, and Joseph Craig 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 Genevieve Marshall from the Morning Call and Michael Buffer from the Express Times.

 

OPEN FORUM – No items for discussion

 

ACT 72 UPDATE - Mr. Majewski explained Act 72, Homeowner Tax Relief Act, to the committee. The Act was passed July 5, 2004 and became effective September 3, 2004. Act 72 is intended to provide school property tax reductions to qualifying homeowners. Tax reductions will be financed through state and local funds providing school districts opt into the process. In order to opt into the process the board would have to adopt a resolution to levy, assess and collect a 0.1% increase in EIT. School districts that opt into the property tax reduction process are limited to raising real estate tax millage no more than the index or be subject to voter referendum. The index is the average of the State Average Weekly Wage and the Employment Cost Index. Presently, districts increase taxes as needed. Under Act 72 school boards may need voter approval to increase taxes. The Act mandates school districts notify homeowners within 45 days of the effective date of the Act, (October 16, 2004) that they are required to submit a completed application to the county assessor to request approval for a homestead/farmstead exclusion. A second notice must be sent no later than 60 days prior to the application deadline of March 1, 2005. Northampton County and its school districts are reviewing a proposal from Berkheimer Associates to mail notifications to eligible homeowners. Lehigh and Northampton Counties are to determine the eligibility. The cost to notify homeowners and maintain an updated database of responses will be approximately $50,000. Much discussion followed regarding Act 72 and its requirements and restrictions and if it would be appropriate for the district to opt into the Act given the numerous funding concerns and undefined compliance issues. A decision must be made by May 30, 2005. Mr. Majewski will assure the district meets all Act 72 criteria and keep the committee apprised.

 

The meeting adjourned at 8:30 p.m.

 

 

Minutes prepared by _______________________________________________

                                    Adele Embardino, Confidential Secretary to the Director

                                    of Business Affairs