October 8, 2014 Notes

State College Area School District

CAC for Finance

October 8, 2014

Board Room, 131 W. Nittany Ave.

State College, PA  16801

 

Members:

Randy Brown

Anne Clymer 

Marisa Flynn

Scott Fozard

Andy Friberg  (absent)

John Hook

Tim Hurley  (absent)

Dave Lieb  (absent)

Ann McGlaughlin 

Jim Myers 

Bob O’Donnell  (absent)

Carl Raup  (absent)

Lana Walker  (absent)

Donna Watson

 

Membership:  John nominated Marisa as Chair, Scott seconded the nomination.  All members present voted aye.  Jim noted that he has fulfilled his ten-year membership term.  Membership discussion will be brought back at a future meeting.

 

Approval of Minutes:  The September 22, 2014 meeting minutes were approved.    

 

State High Project Financing:  Randy reviewed NW Financial Group’s October 6 presentation to the board, explaining details of the various financing scenarios.  NW is not permitted, by external regulations, to make recommendations directly to the board, so their recommendations will be made to administration, who will then make board recommendations.  Randy asked the committee for comments, questions or suggestion that will help the district move forward effectively with this process.  Comments:  provide scenario with optimal band of cash flow; prepare key elements going forward, i.e., future district capital needs; list cost of issuance as a column on schedules; has NW checked with larger banks for large bank loans; manage interest rate risk; provide present worth; what are assumptions that go along with each scenario.  January to March 2014 is the timeframe for the board to make decisions on financing, with initial borrowing in that timeframe. 

 

Property Tax Relief:  Most districts offering property tax relief require an exchange of volunteer hours.  Concern is with the number of unions in SCASD.  Income-based relief would be a more viable option for this district.  Penn Manor requires Form PA-1000 for income determination.  Board action would be needed to adopt a program before the real estate tax rates are finalized in June.  Questions:  if already a volunteer in our district, could they be offered a property tax break for their hours; how many people would be eligible; tax burden would be shifted to those paying full amount; what is the impact; senior citizens could provide volunteer hours but low income probably would not due to time constraints; volunteers would need to meet all HR requirements as employees.  This item will return to CAC for additional discussion.

 

Future Agenda Items:  Membership; Property Tax Relief program.

 

Adjourn:  The meeting adjourned at 5:35 pm.

 

Submitted by:

Marie Caster