Agenda and Notes - December 14, 2017


State College Area School District

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

December 14, 2017 Board Finance and Audit Committee Meeting
11:30 a.m.  - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA  16801


I.      Call to Order

II.     SCASD Education Foundation MOU (attachment)

III.    Budget Development 2018-2019 (attachment)

IV.     Future Meeting Agenda Items

V.      Public Comment

VI.     Adjournment


Board Finance and Audit Committee Meeting Notes                            
December 14, 2017 - 11:30 a.m. - Meeting Room A
Panorama Village Administrative Center
240 Villa Crest Drive
State College, PA  16801

I.          Call to Order

Mr. Brown began the meeting at 11:49; the Committee Chairperson was absent.  He gave an overview of the agenda items being presented for discussion.

Committee Members:  Amber Concepcion, Dan Duffy, Laurel Zydney
Absent: Scott Fozard
Others:  Dave Bracken, 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.         SCASD Education Foundation MOU 
Mr. Brown reported he and Dr. O’Donnell, along with Board Leadership, met with Foundation Board President Doug Loviscky to review the MOU.  The Committee offered comments and additional changes: section A-1 remove “fundraising;” A-4 change “achieves a deeper level of investment” to “promotes a deeper community engagement;” A-7 remove “burden“ and reword; add a “survivor clause” to Bylaws and add a sentence to A-8; A-8 “change revenue” to “net proceeds and gifts;” $120,000 level of funding provides the Foundation an expectation for solicitations; donations for operating costs; Development contract; B-3 make second paragraph #4; remove “third party services and outside contractors;” if C-2 doesn’t happen, will reassess; already in year 3, experts suggest a 3 to 5 year expectation.  Mr. Brown reported over $40,000 as of today and expect an additional EITC donation. Section D-2 change “may attend” to “shall attend” and change “may also appoint” to “will also appoint;” and D-3 Mr. Brown’s office will email a copy of the IRS Form 990 to the full board.  The updated MOU will be added to the January 8, 2018 Board agenda, but has been postponed to January 22, 2018.

Mr. Brown noted the Annual Report is being prepared.  He reported the main focus of the Maroon & Gray Society event this year is to raise money for band uniforms.

III.        Budget Development 2018-2019
Mr. Brown noted the purpose for the budget presentation was to talk about administration’s desire to pass an Opt Out Resolution, the financial impact of Student Day changes, and the impact of a zero percent tax increase.  Ms. Watson reported on revisions since the last report including revenue projections for 2017-18 based on actual assessed value as of July 1, and 2017-18 revenue budget real estate tax estimated at Act 1 Index of 2.4%.  Expenses projections for 2017-18 include refinements to estimates for salaries, health insurance and charter school enrollments.  Overall initial estimates are slightly over budget right now but it is very early in the year. Expense budget for 2018-19 include refined estimates of salaries based current complement plus proposed student day, health insurance, and charter school tuition. There are no other staffing changes other than student day, and the transfer/contingency line reflects the last year of the swap. Committee members discussed increases in expenses related to student day and requested a separate column next to total separating out student day costs, and print column letters and row numbers for ease of reference.

Ms. Watson suggested starting the board presentation with the powerpoint presentation, which she reviewed for the Committee.  Page 12 shows proposed real estate tax at the Act 1 Index; will add a footnote to page 21 that this is current debt; change page 22 to patterns rather than colors; slides 31 to 37 explain the effect of a zero percent tax increase, will need to use $1.9 million.

A member requested additional verbiage in the memo explaining sustainability of the student day proposal as detailed in pages 31 and 34, and want additional discussion at board meeting.  

VI.         Public Comment
There was no public comment.

VII.        Adjournment
Ms. Concepcion adjourned the Board Finance and Audit Committee meeting at 1:35 pm.

Submitted by,

Marie Caster
Acting Board Secretary