March 1, 2018 Agenda and Notes

CAC for Finance
March 1, 2018  4 p.m.
Panorama Village Administrative Center
Computer Services Conference Room
240 Villa Crest Drive, State College, PA

Agenda:

January Meeting Notes (Attachment)

2018-19 Budget Development

Capital Financing

Foundation MOU

Public Comment

Future Meetings - To Be Announced

Adjournment

________________________________________________________________

NOTES

CAC for Finance Meeting Notes
March 1, 2018 – 4:00 pm
Panorama Village Administrative Center – Computer Services Conference Room
240 Villa Crest Drive, State College, PA  16801

 

Committee Members Present:  Dan Duffy, Marisa Flynn, John Hook, Carl Raup

Others:  Randy Brown, Marie Caster, Donna Watson

Marisa Flynn called the meeting to order at 4:00 pm and turned the meeting over to Randy Brown and Donna Watson.

2018-19 Budget Development:  Randy Brown reviewed budget development since the last meeting, stating the school board passed the Opt Out resolution committing to not raise taxes more than the Index of 2.4% for the next fiscal year. The board received updates on Community Ed program, revenue projections, and a review of transportation is scheduled for the next board meeting, focusing on the extended elementary day which includes $250,000 for increased annual cost.  Mr. Brown reviewed bus trades and purchases, trading six and buying six of different sizes.

Capital Financing:  Mr. Brown and Ms. Watson reported the bond rating remained the same, which was good news, there was a due diligence call, the POS is out and the bond sale has been made public, advertising starts the next day, Bank of America/Merrill Lynch is the  Underwriter, $47 million in bonds will raise $57 to $58 million for projects if they sell at a premium. Applying for grants for solar equipment for all 3 elementary projects plus High School. Proceeds will be used to fund projects in process and will reduce borrowing.

Memorial Field:  Mr. Brown reported the board was asked to delay for 6 to 12 months due to focus needs on other projects. If delayed, will not displace football at any time over entire project. The Board hopes to accept design documents at March 12 meeting.  After CAC for Facilities meeting will have some add/alternates such as external finishes, stone, will return to the Board with a new project timeline. Committee members questioned set deadlines to open elem schools and are there penalties in contracts.  Mr. Brown responded the elementary schools should be completed in August 2019, and there are penalties if the district loses resources. He reviewed the Southside High School finish areas and delinquencies. A committee member asked if there is ongoing dialog with the Department of Health, and if so, State or local.  Mr. Brown said he would check.

Foundation MOU:  Mr. Brown gave an overview of the MOU between the District and the Education Foundation, stating it is a blueprint of expectations of each, they are 501(c)(3) approved organization, raising money exclusively for the benefit of District programs, and the  financial commitment from District will not exceed $120,000 annually, and will provide administrative staff. The Foundation has committed to raise more than $120,000 annually, the Foundation Board will not receive compensation, and will provide an annual report.  Mr. Brown reviewed the Maroon & Gray Society being the major fundraising campaign they are working on right now which will fund new marching band uniforms. The Banquet will be an evening of recognition, celebration, and music. A member suggested bringing in famous musicians to put on programs.

Future Meeting: Another meeting will be scheduled around April based on ongoing projects.

Adjournment:  The CAC for Finance meeting adjourned at 4:51 pm.

Submitted by,
Marie Caster