11/9/16 Meeting Notes

CAC for Finance Meeting Notes   
November 9, 2016 - 4:00 PM
Panorama Building – Meeting Room A
240 Villa Crest Drive, State College, PA  16801

Ms. Flynn called the CAC for Finance meeting to order at 4:03 p.m.

Members Present:  Randy Brown, Marie Caster, Anne Clymer, Dan Duffy, Marisa Flynn, Scott Fozard, Andy Friberg, Ann McGlaughlin, Carl Raup, Donna Reinhardt, Susan Sampsel, Lana Walker, Donna Watson

Approval of meeting notes:  The May 25, 2016 meeting notes were approved by consensus.

2015-16 Audited Financial Statements:  Ms. Watson presented the Audited Financial Statements for Fiscal Year ended 6/30/16 which will be presented for board acceptance at the November 28 meeting. She reviewed a powerpoint presentation summarizing revenues, expenses and fund balance summary. She explained the increase in local revenue was mainly attributed Realty Transfer Tax from the sale of some large properties. Mr. Brown commented on unplanned expenses and revenues that cannot be factored into future budget development, and reported being able to transfer more to capital reserve fund than expected.

2017-18 Budget Development Calendar:  Mr. Brown shared the 2017-18 budget development calendar with the Board in September. He reported next year’s Act 1 index is 2.5%, up from 2.4% for the current year. Administration will begin the budget development process, projecting less increase than the Index, probably between 1 and 1.5%. The board can decide whether to opt out or go through the process of a preliminary budget. If they opt out, a resolution must be passed by January 23; otherwise, a preliminary budget must be approved by February 13. The committee discussed: exception is required to go above the Index; board directives given to administration regarding budget process; consideration of a zero percent increase; future elementary project costs that are controllable; soft costs are significant; decision to do three elementary projects rather than two, and Memorial Field at the same time as high school; asking people to pay a lot of money now; potential funding changes in July due to election; everything that happens in the government affects the community, which will trickle down to SCASD; strongly suggest to contractors that it is expected they put a lot of money back into the SCASD Education Foundation. Mr. Fozard and Mr. Brown have been meeting to work through some budget scenarios.

Capital Reserve and Future Financing:  Mr. Brown reviewed a handout analyzing the district’s capital financial capacity for DWFMP. He also reviewed the Capital Reserve Fund analysis through the year 2050 with scenario assumptions for borrowing, showing results for borrowing $45 million or $50 million for elementary projects. Costs to relocate transportation services are not included in the projections. Estimates indicate it would cost $3-$4 million to relocate transportation.

District Wide Facility Master Plan – Elementary Projects:  Mr. Brown reviewed all scenarios of 2 vs. 3 vs. 4 classrooms, add/reno vs. new construction. Estimates are now in the range of $46.7 million after grants and plancon reimbursement. PlanCon reimbursement is based on the start of the project, the grants are based on the end of the project. Mr. Brown reviewed the results of the demographic analysis, which indicates the potential for 300-450 more elementary students due to several new substantial developments that are proposed.

Mr. Brown asked committee members for input on a Parameters Resolution. The remaining cost of high school project and cost of elementary projects will be factored in. A reimbursement resolution will be presented to the board Monday night. The committee discussed:  total needs; overlay the facility need for preferred maintenance over capital reserve; capacity of new high school for projected additional students; Delta population; current charter school enrollment; preschool festival to introduce our schools; IB program.

Public Comment:  There was no public comment. 

Future Meetings
     February 8, 2017
     April 12, 2017

Adjournment: The meeting adjourned at 5:43.

Submitted by,
Marie Caster