Agenda and Notes - January 10, 2019

State College Area School District

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


January 9, 2019, Board Finance and Audit Committee Meeting
11:45 a.m. - Computer Services Conference Room, Panorama Village Building
240 Villa Crest Drive
State College, PA 16801

 

Agenda


I.      Call to Order

II.     Budget Development 2019-2020
          Opt Out Resolution (attachment)
          Work Session Schedule


III.    Capital Expenses/Financing (attachment)


IV.     Future Meeting Agenda Items
           Budget Development 2019-2020


V.      Public Comment


VI.     Adjournment


Board Finance and Audit Committee Meeting Notes
January 10, 2019 11:30 a.m. - Computer Services Conference Room                                 Accepted Notes
Panorama Village Administrative Center
240 Villa Crest Drive
State College, PA   16801

Present:  Lori Bedell, Amber Concepcion, Scott Fozard, Jim Leous (Zoom Conference Call), Laurel Zydney
Absent:  Dan Duffy
Others:  Randy Brown, Bob O’Donnell, Nancy Reese, Donna Watson

A copy of all materials distributed to the committee members for discussion are included with the official minutes, unless otherwise indicated.

I.     Call to Order
Mr. Fozard called the Finance & Audit Committee to order at 11:49 a.m.  Mr. Fozard turned the meeting over to Mr. Brown to lead the discussion.

II.    Budget Development 2019-2020
Opt Out Resolution
Mr. Brown reviewed the Opt Out Resolution that was also discussed at the January 7, 2019 SCASD board meeting. Mr. Brown noted that we are asked to do this budget development plan and there is still much that needs to occur before the preliminary 2019-20 budget is completed. Ms. Zydney noted that this information is required by the state before knowing what the actual state revenue will be.
Work Session Schedule
The first session would be a Basic Finance 101 discussion, a basic overview and understanding of the district budget and how it works and will be open to the community.  The Board will then hold additional work sessions to dig deeper into the budget for a broader understanding. Mr. Brown will schedule the work sessions and notify the Board of the dates and times, and will look into having the first session video taped. Mr. Brown noted he will be attending the PSBA session on January 17th and will update the Board of any new requirements that would impact the District.

III.    Capital Expenses/Financing
Mr. Brown discussed the Capital Expenses/Financing update handout. He noted that the High School (HS), Elementary, Memorial Field, and now the Mount Nittany Middle School (MNMS) HVAC project costs are reflected in the Capital Reserve Fund analysis. The only change from the December update was including the MNMS HVAC, resulting when the costs of the project grew to $2MM, after the bids were received, an action will be taken at a future board meeting to approve the HVAC costs coming out of the Capital Reserve Fund.  

Current Projects
Memorial Field
- Opening bids will begin in late February and award bids in March. Alternate site costs; if we do the project in one session, there would be additional costs, those costs would be taken from the project budget or from the Capital Reserve Fund.  Some of the improvements in the alternate site are in the Master Plan and would therefore not have to be funded in the future. Mr. Fozard stated that regardless of the way it is funded, we should show the true cost of the Memorial Field Project. Mr. Brown will check on the projected cost and share with the Committee.
Elementary - Based on the construction costs and the grant funding, we are expected to have residual remaining that can be used on other projects.
High School - Looking to be right in line with the projected project budget.
Memorial Field - Considering the timing of borrowing for this project; borrow soon enough to pay bills or borrow from another fund and wait for bids to know projected costs.

Jim Leous joined in the meeting using Zoom at 12:06 p.m.

Athletic/Recreation Facilities - Total funding for Memorial Field, other athletic facilities and the playground project is estimated at $10MM, scope of projects yet to be determined.  Committee will be looking for high/middle/low playground cost and phases that could be done to space out the overall costs. Maintenance costs will be looked at before a decision is made.
Park Forest Middle School Project (PFMS) - Discussion on $60MM being a viable number, Mr. Brown will be talking with Massaro to see what they feel the project costs are.  Locations being looked at for this project, other land opportunities will also be researched. Mr. Brown noted that moving schools out of the current location would mean expenses in other ways; such as busing.  A thorough study needs to be done on all the different options/locations.

Deferred Maintenance Projects Estimated for the next few years - Estimated cost 1MM

  • North Renovations - remaining buildings on the north side
  • MNMS - exterior brick, water proofing
  • Various HVAC, parking lot lights, roofs, etc.  

Miscellaneous Items:
Cyber School -
looking at ways to keep the students in our district and offering a competitive cyber alternative.  Ms. Zydney stated that there is a proposed legislation, if students choose to go to another cyber school and a district has a competitive option, the district does not need to pay for other cyber schools. Proposed legislation link:

https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=21497.

Mr. Brown discussed advertising strategies and quotes; Comcast advertising during March Madness and a SCASD banner at the airport.  Mr. Brown noted that the Countdown for Kindergarten at the Nittany Mall is not going to happen this year, which usually was a big driver for prospective students.  Discussion on using Social Media advertising and billboards could also be possibilities. A SCASD preschool fair is scheduled for Saturday, January 12, 10:00 a.m. - 12:00 p.m. at MNMS.

Ms. Watson gave an update on the budget process.  She has been meeting with the Elementary Principals and Directors and rolling out budgets for completion, this year she is focusing on scheduling individual Director meetings to work through budgets.

Ms. Concepcion discussed budgets for Athletic and extracurricular activities and making sure that we have transparency and equity across the programs; having a good matix on how the equity works is important to show the community.  The Act 3 report that we provide the state will show this. Mr. Brown will forward the report which is on our website.

Mr. Brown mentioned that Food Services sent a letter to students who could be impacted by the Federal shutdown, and a form was made available for these families who might need additional help.  

Mr. Fozard suggested using a Zoom link for future meetings. Mr. Brown will discuss in the next Cabinet meeting.

V.     Public Comment
No public comment was made.

VI.    Adjournment
Mr. Fozard adjourned the meeting at 1:09 p.m.

The next scheduled Finance and Audit Committee meeting is February 14, 2019 at 11:45 pm in meeting room A.

Submitted by,

Nancy Reese