BOARD FINANCE COMMITTEE MINUTES

JANUARY 8, 2007

 

 

Members of the Board Finance Committee met on Monday, January 8, 2007, at 9:10 p.m. in the Dining Room at the Education Center. Present were School Board Members Dr. Craig Haytmanek, Diane Rowe, Loretta Leeson, William Heske, Rosario Amato, Margaret Williams, Judith Dexter, Joseph Craig, and Charlene Koch. Also present were Dr. Joseph A. Lewis, superintendent of schools; Stanley J. Majewski, Jr., assistant to the superintendent for finance and administration; Robert Davidson from Abbott, Davidson, Weiss and Company; Howard Leiberman from the City of Bethlehem, and members of the press.

 

COURTESY OF THE FLOOR – Mr. Robert Pfenning inquired as to the status of the Tax Study Commission. He was informed that the findings of the commission will be reviewed at the February 5, 2007, Board Finance Committee Meeting.

 

2006 AUDIT REPORT – Mr. Robert Davidson reviewed the preliminary draft of the 2005-2006 Audit Report with the committee. There was only one reportable finding involving student activity accounts.

 

A recommendation was made to reevaluate procedures and have mandatory training for all individuals involved with student activity funds. Currently, accounts are reviewed quarterly with an annual internal audit. Mr. Majewski, suggests a semi-annual audit be conducted correcting any conditions before the year end audit.

 

Dr. Haytmanek inquired as to the amount of money allocated to student activities. Student Activity Funds total $381,008 with the majority of funds belonging to the high schools and middle schools.

 

There was discussion on the amount of debt the district has incurred, and what is our borrowing capacity. Mr. Majewski stated that the district is approximately $35,000,000 under the debt ceiling. The district is rated A-Stable by Standard and Poor’s.

 

Mrs. Dexter asked how grants impact the budget. Mr. Majewski reported that they have no impact on the fund balance, however, adjustments are made monthly to the school district’s budget as they are obtained or modified.

 

 

 

BOARD FINANCE COMMITTEE MINUTES

January 8, 2007

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Mrs. Koch asked what becomes of grant money that is not spent in its entirety. Dr. Lewis explained that usually all grant money is spent and is carefully monitored by Mrs. Cintron, the supervisor of governmental programs and grants. If there is any money left it goes back to the source of the grant.

 

Mr. Majewski gave accolades to Mr. Davidson for his work on the audit.

 

The audit will be brought before the board at the Regular Board Meeting on January 22, 2007, for approval.

 

REPOSITORY SALE/DELINQUENT TAX EXONERATIONS – Mr. Majewski presented three agenda items which will appear on the January agenda for approval. One is the sale of a retention pond totaling 3.62 acres near Wagner Farms. A bid of $10,000 has been offered. The other two items are requests for exonerations of delinquent real estate taxes on parcels of property that have been deleted from the county’s assessment records.

 

LERTA TAX REBATE PROGRAM UPDATE – Mr. Majewski advised the committee that the LERTA Program has a two-year cycle and is currently up for an extension approval. Mr. Howard Leiberman from the City of Bethlehem presented two Ordinances, adopted by the city, which will extend the program for another two years.

 

The properties in central Bethlehem previously part of LERTA have been removed. The city is not asking to renew the central north corridor properties. The south side, primarily former Bethlehem Steel property, continue to be in LERTA zones. Much discussion followed with regard to the property lines and the affect the abatements have on the district’s tax revenues.

 

Dr. Lewis, Mr. Majewski, and several school directors do not believe all the property identified in the LERTA plan require preferential tax treatment.

 

Mrs. Leeson requested a more detailed map indicating street names and companies involved in the LERTA Program. Mr. Lieberman will provide the committee with a more descriptive map. Once the map has been reviewed by the committee, the board will vote on the extension of the LERTA Program at a future Regular Board Meeting.

 

OPEN FORUM - Mrs. Leeson inquired about the upcoming budget hearing and asked about the budget review and approval timelines. Mr. Majewski explained that due to Act 1 the district must tentatively adopt a budget by a certain date to determine if the budget has to go to a referendum.

 

 

BOARD FINANCE COMMITTEE MINUTES

January 8, 2007

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The critical review of the budget will occur during the second round of hearings in the spring when amounts are more accurate due to acquisition of data presently not available.

 

Mrs. Dexter questioned the budget process. Several school directors commented that this discussion should be held at the public budget hearing on Thursday, January 11, 2007.

 

The meeting adjourned at 10:25 p.m.

 

Minutes prepared by:

Adele Embardino, Confidential Secretary to the Assistant to the Superintendent for Finance and Administration.