Agenda and Notes - April 19, 2018

State College Area School District


OUR MISSION: To prepare students for lifelong success through excellence in
education.


April 19, 2018, Board Finance and Audit Committee Meeting
11:45 a.m. - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA 16801


Agenda


I.   Call to Order


II.  Budget Development 2018-2019 (attachment)

  • Capital Reserve Fund Balance - Projections
  • Food Service budget and proposed meal prices (attachment)

III. Debt Financing (attachment)

  • Review 2018 Bond sale results

IV.   Quarterly Donation Report (attachment)


V.    Development


VI.   Future Meeting Agenda Items


VII.  Public Comment


VIII. Adjournment


NOTES

State College Area School District
April 19, 2018, Board Finance and Audit Committee Meeting
11:45 a.m. - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA 16801


I.        Call to Order
Mr. Fozard began the Board Finance and Audit Committee meeting at 11:49 a.m. and turned the meeting over to Mr. Brown to begin the budget development update.

Present
Committee Members:​ Amber Concepcion, Dan Duffy, Scott Fozard, Laurel Zydney
Others:​ Lori Bedell, Gretchen Brandt, Randy Brown, Marie Caster, Bob O’Donnell, Donna Reinhardt, Donna Watson

A copy of all materials distributed to board members for discussion is included with the official notes, unless otherwise indicated.

II.       Budget Development 2018-2019
Charter School Funding Calculation
Mr. Brown reviewed the PDE-363, Funding for Charter Schools, which details the calculation for the district’s per pupil charter school tuition costs. He explained ADM calculation for special ed is .16, which is defined by PDE and is slightly higher than ours.  Mr. Brown reviewed page 2 of the form and explained the general ledger accounts are recorded as instructed by PDE and noted that charter school expense is not one of the deductions on the form. Committee members discussed programs and amounts included in the deductions; need to look at restructuring some programs; and simplify for public understanding.

2018-19 Proposed Additions
As requested at a prior meeting, Mr. Brown reported the list of proposed additions has been divided by recurring and non-recurring.  He stated the footnote for recruitment software is because the system has not been selected yet, and the Student Day transportation is for bus purchases, not drivers.  He further explained the .5 FTE at Corl Street is for an existing .5 going to 1.0, Security Guard amount is extra contracted hours and Mr. Brown will change the line to read Security Guard Services, and the Resource Officer is Patton Township SRO.

Charter School Expenses
Mr. Brown reviewed the next four pages of charts and graphs related to charter school expenses.  Committee members offered comments on charter costs increasing at a much higher rate than our actual expenditures and asked if there is a way to show dispersion in our classrooms due to charter school enrollments, what special ed services do cybers provide, is volatility in our budget due to charter school costs, and who holds cybers’ charter?  Mr. Brown and Ms. Watson will try to get answers to the questions for Monday’s board meeting.

Budget Development
On slide 8 of the handout, Committee members requested clarification of special ed costs, and asked how our costs compare to other districts.  Mr. Brown explained that our district provides services other district do not so it would be difficult to compare. On page 12, column F was updated with new information for the April 23 board meeting. He and Ms. Watson continued reviewing the slides explaining the transfer to capital reserve did not provide the expected payoff when looking out to future budget years, and the difference from 3/26 being a net reduction in expenses.  They explained capital reserve is funded by transfers, 10-year projection of revenues has not changed, fund balance summary is very important information when going out to bond rating agencies.

Capital Reserve Projection
After review of the capital reserve projection through the year 2050, Committee members requested additional information be added to the spreadsheet.  Mr. Brown and Ms. Watson will footnote what is included in debt service and each jump in assumption. They explained the projections tie to page 20 of the previous handout.  It was suggested to broaden the description of athletic fields to something like “grounds.”

Food Service
Mr. Brown reviewed the proposed school lunch pricing structure for 2018-19 which shows a $.05 increase in elementary and middle school lunch prices, with the high school remaining at $3.50.  The high school lunch price was increased this year due to the opening of the food court. Committee members questioned whether it costs more to provide a lunch to high school students than parents are paying, should we consider reducing food offerings to keep costs to families lower, and does change in providing lunch to the charter school show in the food service budget.  Mr. Brown and Ms. Watson answered it does cost more to provide lunch to high school students than parents are paying, and the program would making less money if service to charter schools was eliminated.

2018 Bond Sale Update
A Pricing Memorandum from NW Financial Group was shared with the Committee and will be shared with the full board but will not be on the board agenda.  The memo is a formality that is required to be put in writing to board members.

Quarterly Donation Report
Committee members should send any questions to Ms. Watson and Mr. Brown. Will be mindful of recording donations on ledger, based on timing, to avoid misinterpretation of bias.

Development
Dr. O’Donnell noted there will be a conversation at the next board meeting to evaluate the development program. Mr. Brown reported Crabtree Rohrbaugh will be the main sponsor for the Maroon & Gray Banquet and Highmark has also stepped up as a major sponsor, ads and announcements have been sent to district vendors and other businesses, donations to date exceed $30,000, an invitation to all SCASD employees will be sent by a Foundation Board member who is a retired teacher, and Foundation Board members discussed at their meeting how to best utilize social media. Committee members discussed the appropriateness of using school messenger to send invitations to parents.

Future Agenda Items
Development (May)
Foundation Budget (high level)
Foundation Update (June)
Contract Approvals

Public Comment
There was no public comment.

Adjournment
The Board Finance and Audit Committee meeting adjourned at 1:43 p.m.

Submitted by,

Marie Caster
Acting Board Secretary