Finance & Audit Committee Meeting/Notes July 11, 2019

Agenda

July 11, 2019 Board Finance and Audit Committee Meeting
11:45 a.m.  - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA  16801 

 

  1. Call to Order

  2. Local Economic Revitalization Tax Assistance (attachment 1)  (attachment 2) (attachment 3)
    Representatives from State College Borough will be present

  3. Operations Agreement for South Track - review updated draft  (Previous draft 7/1/19) (New Draft)

  4. SCASDEF Financial Statements (attachment) 

  5. SCASD Quarterly Donation Summary (attachment)

  6. Capital Financing and Parameters Resolution (July 1, 2019 attachment) (Updated)

  7. FY20 State Budget Impact on SCASD (attachment)

  8. Sponsorships Update

  9. Future Meeting Agenda Items

  10. Public Comment

  11. Adjournment

APPROVED
July 11, 2019 Board Finance and Audit Committee Meeting Minutes
Panorama Village Administrative Center
Meeting Room A - 11:45 a.m.
240 Villa Crest Drive
State College, PA 16801

Committee Members Present: Amber Concepcion, Scott Fozard, Jim Leous
Committee Members Absent: Laurel Zydney
Others: Amy Bader, Lori Bedell, Randy Brown, Dan Duffy, Bob O’Donnell, Nancy Reese, Donna Watson
Guests: Jessie Barlow, Margaret Gray, Tom Fountaine, Evan Myers

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

  1. Call to Order
    Mr. Fozard called the Finance and Audit Committee meeting to order at 11:50 a.m.

  2. Local Economic Revitalization Tax Assistance (LERTA)
    Mr. Brown stated that today's update provides an opportunity for the State College Borough and Centre County Government to discuss the LERTA proposal with the Finance Committee. Both governing bodies have approved the LERTA resolution creating the program in the State College Borough. In addition to this discussion, the Board has requested information related to the revenue impact resulting from the LERTA of an individual proposal which has been submitted to the State College Borough. Two different ways to look at the impact of LERTA on this project were presented. Assuming no change in real estate tax rate over the 10 years it was determined:

    Scenario 1 - assuming the project occurs, the district would receive less revenue under the tax abatement under the LERTA proposal.
    Borough - $63,212
    County - $29,569
    District - $170,498
    Total = $263,279

    Scenario 2 - assuming the project occurs as a result of the LERTA proposal, the district would receive more revenue than if the project does not occur. This also assumes that no project would occur over a ten year period, which may or may not be the case
    Borough - $77,259
    County - $36,140
    District - $208,387
    Total = $321,786

    Mr. Brown introduced Tom Fountaine, Evan Myers and Jesse Barlow from the Borough of State College and Margaret Gray from the Centre County Government and then turned the meeting over to Mr. Fountaine. Mr. Fountaine began by stating that LERTA was established to create incentives for the adaptive reuse of existing historic structures, some dating back to the early 1900’s, for commercial redevelopment downtown State College area, aiming to preserve the existing character of the downtown area. Review of the criteria was given, the impact of the delay in taxation, and a cap of five (5) LERTA applications a year with a possibility of 25 applications occurring over the next five (5) years were presented. Discussion, questions, and comments followed by the Board members present. Mr. Brown and the Board members thanked Mr. Fountaine, Mr. Myers, Mr. Barlow and Ms. Gray for the update and discussion.

  3. Operations Agreement for South Track 
    Mr. Brown updated the Committee on the State High South Track Lighting Agreement. Review of the agreement and discussion followed and a request by the Committee to remove the wording varsity/junior varsity competition events in section 2 (A) be made. Mr. Fountaine stated he didn’t feel this would be an issue and would take it back to the Borough Council for review. Mr. Brown will highlight the changes in the new agreement and present the changes at a future Board meeting.

  4. SCASD Education Foundation Financials
    Mr. Brown reviewed the May 2019 SCASD Education Foundation Financial statement. A few highlights were:
    1. Maroon and Gray reconciliation is showing the majority of the expenses and proceeds. An additional $2,000 was received in June but not on the May report.
      Restricted donations - EITC donations were transferred to the district in June.
    2. Memorial Field - Received first payment of commitment in June.
    3. The MOU between the SCASD Education Foundation and the SCASD states that the Foundation bring the new year budget to the SCASD Board in July of each year. The SCASD Education Foundation Board approved the 2019-2020 budget in their June 26, 2019 meeting. Mr. Brown stated that due to the SCASD Board agenda items it has not been possible to have the budget review in July. Mr. Loviscky and Ms. Concepcion have met to discuss and review the budget. Mr. Loviscky will present the budget to the Finance and Audit committee in August and it will be taken to the SCASD Board in September for review and discussion.

  5. SCASD Quarterly Donation Summary 
    Mr. Brown reviewed the SCASD quarterly donation summary. These were donations directly to the SCASD and not donations that came through the SCASD Education Foundation and will be on the July 15, 2019 SCASD Board agenda for review.

  6. Capital Financing and Parameters Resolution
    Mr. Brown presented the two drafts of the Capital Financing and Parameters Resolution. The first draft was from July 1, 2019 and can be used to compare to the updated version, which Mr. Brown received on July 13, 2019. The updated version is very similar to the July 1, 2019 version. August 13, 2019 will be the date of the sale of the bonds and the Capital Financing. The Parameters Resolution will be presented at the July 15, 2019 SCASD Board meeting for approval.

  7. FY20 State Budget Impact on SCASD
    Mr. Brown reviewed the 2019-2020 State Budget answering questions from the committee. Below are a few items that were discussed.
    1. Appropriations for a minimum teacher salary were not included.
    2. Social security reimbursement will be moved to the Basic Education Funding line item - the impact of this change has not yet been provided.
    3. The Special Education Subsidy increased $50 million. New reimbursement amounts will not be determined until the Act 16 filing is completed in Fall 2019. Ready to Learn Grant funding remained the same.
    4. Career and Technology Education increased for $5.5 million for equipment.
    5. The EITC funding increased by $25 million for scholarships to private schools.
    6. Transportation Subsidy funding remained flat.
    7. Charter school reform and changes in funded did not occur.
    8. There is no new PlanCon funding for 2019-2020.
    9. Act 44 of 2018 is amended by Act 18 of 2019 resulting in minor changes to the School Safety and Security Commission and responsibilities for school districts. There will be a meritorious Part A application similar to last year. Districts will receive between $30,000 and 45,000 based upon average daily membership. SCASD will receive $45,000. Part B funding remains a competitive process with the following changes:
    10. Cyber charter schools now eligible
    11. Districts can apply for same items in multiple years - removes supplanting requirement
    12. The awards can be in part or whole - previous year required to be in whole or nothing
    13. Sustainability planning is not an eligible item
    14. Threat assessment teams are now eligible
    15. Awards can be prioritized through survey data or prior tests
    16. PCCD must provide guidance to district if awards are prioritized. Grants awarded by March 1, 2020.
    17. Auditor General cannot audit based upon survey data
    18. Training requirements of 3 hours every 5 years - specific individuals to be determined
    19. Increased training requirements for School Resource Officers

  8. Sponsorships Update
    Mr. Brown updated the Committee on the progress of the State High South field sponsorships. There were no new agreements to review but the goal will be to have agreements in place by the beginning of the new school year. Mr. Brown met with Mr. Crispell, Assistant Athletic Director, to discuss other sponsorship opportunities which would also include areas outside of athletics.

  9. Public Comment
    There was no public comment.

  10. Adjournment
    Mr. Fozard adjourned the Finance and Audit Committee meeting at 1:45 p.m.

Submitted by,


Nancy Reese