REVISED

 

BOARD FINANCE COMMITTEE MINUTES

                                                            SEPTEMBER 4, 2007

 

Members of the Board Finance Committee met on Tuesday, September 4, 2007, in the Dining Room at the Education Center. Chairperson Charlene Koch called the meeting to order at 10:00 p.m. Present were School Board Members, Loretta Leeson, Judith Dexter, Michele Cann, William Heske, Craig Haytmanek, and Diane Rowe. Also in attendance were Dr. Joseph A. Lewis, superintendent of schools; Stanley J. Majewski, Jr., assistant to the superintendent for finance and administration and Howard Lieberman from the City of Bethlehem.

 

LERTA – Mr. Howard Lieberman from the City of Bethlehem’s Office of Economic Development discussed the LERTA Tax Abatement Program with the Committee. The current LERTA Program has expired and the City wishes to continue this program for an additional two years. The boundaries have been reduced for LERTA eligible sections in the Bethlehem School District area, and areas within the Saucon Valley School District have been added. The City must have approval of the LERTA Agreement from the County of Northampton, Saucon Valley School District, and the Bethlehem Area School District to continue this program. Mr. Lieberman presented an exhibit indicating the proposed new boundaries and the elimination of the old LERTA District.

 

If the district wishes to continue participation in the LERTA Tax Abatement Program, the board must approve the newly defined, and agreed upon program at the Regular Monthly Board Meeting on September 17, 2007.

 

BUDGET TIMELINES FOR 2008-2009 BUDGET – Mr. Majewski presented proposed budget timelines for the 2008-2009 budget. These timelines represent compliance with Act 1 of 2006.

 

Mrs. Leeson questioned whether the building allocation based on student enrollment has changed. She was told it is currently the same as last year, but it may change as we develop the budget.

 

Mrs. Leeson asked about 5-year financial projections. Mr. Majewski stated that they would be reviewed at the October Finance Committee Meeting.

 

Mrs. Dexter asked when discussions concerning programs to add or to discontinue took place. She was advised that these discussions occur at the budget hearings.

 

Mrs. Dexter commented that she didn’t want to see Driver Education and the Rifle Club taken out of the budget and then put back in again. Additionally, she inquired about the feasibility of Lacrosse as an approved athletic offering. Dr. Lewis stated that he will have the administration obtain information about Lacrosse gathered and report the findings to the board for consideration.

 

DRIVER EDUCATION PROGRAM - Mr. Majewski advised the committee that the Intermediate Unit has no vehicles to use for on the road training. They will purchase vehicles for the training if the district agrees to support the Driver Education Program for three years. If the district does not agree there, will be no on the road training through the Intermediate Unit.

 

It currently costs the district $265 per student for driver education through the Intermediate

Unit. Each student is charged $50 for the instruction. If the district reinstated its own program, additional salaries, benefits, and vehicle fees would have to be budgeted. If the board agrees to retain the Driver Education Program, it must continue to support it for three years, at a cost of approximately $90,000 per year.

 

After discussion, the committee agreed to continue with the Driver Education Program through the Intermediate Unit.

 

Mrs. Koch asked that the laptop program be reviewed. She questioned if the program has been advantageous to district students. Dr. Lewis replied that reports, conducted by Lehigh and Penn State Universities, addressing laptop programs are expected to be received soon.

 

Mrs. Leeson requested that the board receive the reports early so that they have ample time to review the results.

 

REALTY TRANSFER TAX RESOLUTION – Mr. Majewski presented a Resolution to amend the district’s Realty Transfer Tax. This amendment is necessary due to Act 40 of 2005, wherein the Commonwealth’s Realty Transfer Tax laws were amended. It is necessary for the district to remain up-to-date. This Resolution will appear on the September 17, 2007, Regular Board Agenda for approval.

 

403 (b) COMPLIANCE - Mr. Majewski discussed the implementation of the IRS 403 (b) compliance by the school district. 403 (b) is a voluntary retirement fund for which the IRS is changing its regulations to be similar to the 401 (k). The administration will need to create a plan document for review with the board. Transfer loans and withdrawals will be handled by the district. A list of approved companies must be compiled. The new regulations will become effective January 2009. Mr. Majewski will update the committee on the progress of this compliance.

 

COURTESY OF THE FLOOR – Mr. Steven Antalics stated his feelings on the payment of the White and Williams bill. He feels deception has taken place and asked for an explanation.

 

Brandon Kim, a senior at Liberty High School asked who was responsible for canceling clubs.

He was instructed to address the concern with the Principal, JoAnn Durante.

 

 

OPEN FORUM – Mrs. Dexter and Mrs. Leeson inquired how Dr. Lewis authorized the payment of the White and Williams bill, in light of the fact that only the board can authorize payment for bills. Mrs. Dexter suggested that Policy 616 should not have been invoked, as the bill was dated June 26, and the authorization on July 20, does not indicate any necessity that the bill should have been paid quickly in order to avoid interest payments. She inquired why the bill was not presented at the July 9 or July 23 meetings, and further inquired why the bill was not presented at the August 13 meeting.

 

Dr. Lewis admitted that it was an oversight not to inform the board of the invoice, and apologized.

 

Mrs. Koch adjourned the meeting at 11:00 p.m.

 

 

 

Minutes prepared by Adele Embardino,

Confidential Secretary to the Assistant to the Superintendent for Finance and Administration