Board Special Meeting/Budget Hearing Agenda/Minutes 6-6-16

 

Watch video of the meeting on CNET1.org 

 

**Action Items

June 6, 2016 Special Board Meeting/Budget Hearing Minutes
Meeting Room A - 7:00 p.m.
Panorama Village Building
240 Villa Crest Drive
State College, PA 16801

I.         CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Ms. Concepcion called the State College Area School District Board of School Directors special meeting to order at 7:07 p.m. She welcomed all in attendance and those viewing from home. Ms. Concepcion announced the Board had an executive session May 23, 2016 on personnel, a legal matter and negotiations; and they held an executive session prior to this meeting on personnel. With the agenda before them, she asked board members if there were any changes and board member asked to have the Board Reports postponed to the next meeting. All were in agreement to postpone the reports to the next meeting. There were no other changes.

A copy of all materials distributed to board members for discussion and/or action is included with the official minutes, unless otherwise indicated.

Board members present: Amy Bader, Amber Concepcion, Dan Duffy, Penni Fishbaine, Scott Fozard, David Hutchinson, Jim Leous
Board members absent: Gretchen Brandt, Laurel Zydney
Board Secretary: Mary Jenn Dorman
Student Representative: James Graef
Solicitor: Scott Etter
Superintendent: Robert O’Donnell
District Personnel: Randy Brown, Mark Feldman, Mike Hardy, Kathy Pechtold, Jason Perrin, Linda Pierce, Ed Poprik, Donna Reinhardt, Chris Rosenblum, Eugene Ruocchio, Sharon Salter, Donna Watson
Guests: Gus Colangelo, Sal DeLanuez, Harry Hamilton, Lance Hamilton, Stan Hamilton, Tom LaPorta, Carl Obher, Frank Ready, Randall Stevens

II.         COMMUNICATIONS
Ms. Concepcion noted there was a motion to approve a Bargaining Agreement on the agenda tonight and thanked all that have been working on this. Many people met, discussed and worked through this agreement and all their efforts and time to get to this point are appreciated.

Dr. O’Donnell reminded board members that Commencement is this Saturday, June 11. The music prelude begins at 11:00 a.m. and the procession begins at 11:30 a.m. Five elementary schools enjoyed celebrating with graduating seniors for a walk through wearing their caps and gowns at their elementary school. The four other elementary schools will do this tomorrow. This is the first year for this celebration.

The boys’ track placed first in the state and the girls’ place second in the state. Dr. O’Donnell offered congratulations to them and also to the rugby team being number one in the state. We are trying to organize all coming to the meeting next week since we have a large space and would like to do more of this type of recognition.

James Graef introduced Lars DeLorenzi who will be the student representative for the first marking period next year. This could be the last meeting for James but he may try to attend a few meetings over the summer. Dr. O’Donnell noted that architecture runs great in James and he has been very engaged in the high school project the last couple years. He wished him luck and thanked him for all his input.

III.         PUBLIC COMMENT
Ms. Concepcion noted that each individual would be limited to comments of five (5) minutes as time permits for items on this agenda or related to Board business. She asked if anyone in the audience wanted to address the Board.
The following audience members addressed the Board:
--Stan Hamilton has been here several times and has given examples of profiling and hope more progression will occur for this.
--Lance Hamilton echoed what his brother said and asked for something to be done.
--Harry Hamilton noted that the Board has heard him before about the issue on profiling. He has been coming to meetings since December 7, 2015 and hopes that other parents see this and CNET shows, so many can see. It is very a discouraging thing for him. He spoke about his father, the lacrosse situation, and about himself and profiling. He has given examples and hopes something is done before something would happen that makes headlines.

IV.         ROUTINE APPROVALS
A motion to approve the Routine Approval Listing as presented.
--Human Resources Recommendations (refer to attachment IV-A)

Mr. Fozard moved and Ms. Fishbaine seconded to approve the Routine Approvals as presented. There was no discussion. With the motion moved and seconded, all board members present voted aye on a roll call vote. (Ms. Brandt and Ms. Zydney were absent.) The motion passed unanimously. Dr. O’Donnell noted that the HR Report listed the change in position for Mark Feldman, Kathy Pechtold and Sharon Salter. He thanked them for working in the capacity they have been and wished them the best in their next steps.

V.         THE PURCHASE of LAND on VILLA CREST DRIVE
A motion to authorize and approve the purchase of 3.98 acres on Villa Crest Drive from John Lieb and Sandra Lieb for the sum of $235,000, and authorize the Board President and Board Secretary to execute the contract. Ms. Fishbaine moved and Dr. Duffy seconded to approve the motion. There was no discussion. With the motion moved and seconded, all board members present voted aye on a roll call vote. (Ms. Brandt and Ms. Zydney were absent.) The motion passed unanimously.

VI.         APPROVE AFSCME COLLECTIVE BARGAINING AGREEMENTS with DISTRICT
A motion to approve the AFSCME Collective Bargaining Agreements with State College Area School District as presented. Ms. Fishbaine moved and Mr. Leous seconded to approve the motion. There was no discussion. With the motion moved and seconded, all board members present voted aye on a roll call vote. (Ms. Brandt and Ms. Zydney were absent.) The motion passed unanimously.

VII.        DISTRICT GOAL CATEGORY: FACILITIES and GROUNDS
District-Wide Facility Master Planning - Elementary Options Update
Mr. Brown and Mr. Poprik were present and provided a brief slide show to review and update information for the elementary options. The calendar is still the same; they have had the first three Community Forums in the past two weeks. One was held at each of the following buildings: Corl Street, Radio Park and Houserville.

The feedback, comments and input are being completed and will be shared with the Board and placed on the DWFMP section of the District website. There are three new Community Forums scheduled for the following dates: Monday - July 18 at Ferguson Township School, Monday - August 15 at Mount Nittany Elementary School, and Monday - September 19 at a location to be determined.

Charge to CAC for Finance and Facilities
The Facilities and Grounds Committee recommend the Board ask the CAC for Facilities and CAC for Finance for input to assist the Board in creating priorities for option selection and information needed to make decisions in the DWFMP process. The CAC’s provided similar input for the High School project. The CAC for Facilities and the CAC for Finance will have a joint meeting on Thursday, June 9, at 4:00 p.m. at which time they can provide input. Mr. Brown reviewed the bolded areas that were used in the High School process and noted items could be added, subtracted or modified as listed:
      Improve Educational Experience and Outcome for Students
      Safety                                                                                              Flexibility/Adaptability
      Long-Term Solution                                                                        Reasonable Cost to Taxpayers
      Balance Needs                                                                                One Campus/Building Solution
      Operations Cost Evaluation                                                           Minimize Footprint of Building
      Minimize Impact on students During Construction - Transition Period/Phasing
      Attractive Facility with Good Aesthetics
Board members discussed: Interested to charge the CAC and possibly a task all CACs can do; ask them to provide a list for us of what questions they would ask or information needs; the open-ended part is very valuable not just design but other impacts; a criteria for the ability for the facility to support community; will also conduct a down select for this process; it is helpful to have a list for them to start; and the meaning of down select is narrowing options.

Mr. Brown noted that the June 16 Community Forum will be held at Mount Nittany Middle School, 7:00 p.m. and will recap the May 25, 31 and June 1 meetings. He will create a “Finance 101,” review comments received so far and look at trends. The feedback from the CACs can be taken to the July 6 Facilities and Grounds Committee meeting. Mr. Brown confirmed that all the forums would begin at 7:00 p.m.

VIII.         BOARD REPORTS
This item was postponed until the June 13 regular meeting (next week).

IX.            FUTURE AGENDA PLANNING
Ms. Concepcion reviewed items on the upcoming June 13 agenda. Mr. Hutchinson spoke on the email he sent earlier in the day regarding the PSBA Platform Committee and any items to be considered needed to be approved by the Board and sent in by the end of June. He requested this to be on the June 13 agenda. Ms. Concepcion noted it would be under Information /Discussion.

X.             ADJOURNMENT
Ms. Fishbaine moved and Mr. Leous seconded to adjourn the meeting. All board members present voted aye with a voice vote. (Ms. Brandt and Ms. Zydney were absent.) Ms. Concepcion adjourned the meeting at 7:33 p.m. to begin the Budget Hearing.

BUDGET HEARING
XI.            CALL TO ORDER
Ms. Concepcion called the Budget Hearing of the State College Area School District Board of School Directors to order at 7:34 p.m. and noted the Pledge of Allegiance was done at the beginning of the special meeting. Mr. Brown, Ms. Watson and Ms. Reinhardt are here to provide the Budget Hearing presentation.

XII.           INTRODUCTION and PURPOSE of MEETING
Budget Hearing for FY 2016-2017 School Year
Dr. O’Donnell noted he was excited to be at this point and thanked Mr. Brown, Ms. Watson and Ms. Reinhardt, the finance team, for working through and getting us to this point for review of the Proposed Final Budget for 2016-2017 School Year.

XII.           REVIEW INFORMATION for FINAL FY 2016-2017 SCHOOL YEAR BUDGET
Ms. Watson noted that she would review information for the General Fund Budget – accounts for the expenses related to general operations of the district. She reviewed that the General Operations Fund Budget is required to be completed and submitted by June 30 each year, the budget development timeline noting the Board approved the proposed final budget for 2016-2017 at its May 9 meeting. Tonight is the Public Hearing for the final budget, and on June 13, the Board will approve the General Fund Budget and
Resolution, Homestead and Farmstead Exclusion Resolution, and the Annual Tax Levy Resolution. We must comply with Act 1 of 2006, which provides for tax relief for approved homesteads, and the district will receive approximately $1.4 million of gambling funds for 2016-1017 school year that means approximately $110/homestead of property tax relief. Act 1 Index for 2016-2017 is 2.4%, and the district would be eligible for the Exception for PSERS (pension) costs but the Board chose not to request the exception. The Referendum exception was approved and the budget reflects a referendum exception that will fund the increase in debt service for year two and beginning in 2016-2017, the debt service includes both interest and principal. Ms. Watson reviewed the payment amount ($5,256,275) less estimated state reimbursement ($312,276), the value of one mill ($2,269,072), and millage to pay referendum debt service being 2.1789 (.7611 increase). The Proposed Tax Increase in Real Estate tax is 4.32% - 2.40% Index and 1.92% Referendum related with an approximate $130 increase to the average homeowner. She reviewed the District’s Historical Real Estate Tax Increase since 2006, the Tax Rebate Program that $100,000 has been set aside for in the 2016-2017 budget, the maximum rebate per household being $650, applications being processed on a first-come basis, one of the three eligibility requirements must be met, the household income does not exceed $35,000, must be registered for Homestead/Farmstead, and claimant received a rebate from the PA Property Tax Rebate Program received after June 30, 2016. Applications may be submitted beginning July 1, 2016 and additional information will be on our website and sent in the 2016-2017 real estate tax bill mailing.

Ms. Watson reviewed the District revenue from local, state and federal sources, the proposed expenses by object and function, the budgeted 2016-2017 proposed new positions, and Charter School information with number of students, cost/student and the total Charter School expense to the District. She explained PSERS, the employees’ pension, and the use of PSERS fund balance strategy to smooth the increases, and the addition to Capital Reserve Fund. Ms. Watson noted the projected unassigned General Fund Balance is 7.5%, which is in the allowed limit of less than or equal to 8%. Building a strong fund balance was key to improving the District's bond rating.

The Final Budget adoption is scheduled for June 13, 2016, and is required to be passed by June 30 each year. The Board would have the opportunity to reopen the district budget after passage of the state budget, if necessary. For more information on the budget process, go to www.scasd.org/page/29334.

Board members discussed: The state revenue and the District getting reimbursed for amounts already spent, not new money but offsetting, impact of Charter Schools on the District, the need to explain the finance that students to Charter is a drop in our finance, do not get a per head revenue from state, charters receive more for special education students (the cost of regular education student plus approximately $12,000 more) and if the student’s need is for speech, it may only cost them $2,000/year. The range of disabilities in our District versus the level of disabilities in the charters, their disabilities are mild. The District provides and pays the
cost for Charter student transportation, PSERS and Social Security is better for the District than it once was, and maybe a “Charter 101” is also needed for general public to have a better understanding.

Mr. Brown thanked Ms. Watson and Ms. Reinhardt for their assistance with gathering all the information and their work on the presentation tonight.

XIIV.         PUBLIC COMMENT
There was no public comment.

XV.            ADJOURNMENT
Mr. Fozard moved and Dr. Bader seconded to adjourn the Budget Hearing. All board members present voted aye with a voice vote. (Ms. Brandt and Ms. Zydney were absent.) The motion passed unanimously. Ms. Concepcion adjourned the meeting at 8:03 p.m. to an executive session.

Submitted by,

Mary Jenn Dorman
Board Secretary