School Board Work Session 01/11/2010

OCTORARA AREA SCHOOL DISTRICT

WORK SESSION
January 11, 2010 – 7:30 p.m.
Middle School Multi-Purpose Room

DISCUSSION GUIDE
1. Lord’s Prayer

2. Pledge of Allegiance to the Flag

3. Roll Call

All present.

4.Visitors’ Comments - Agenda Items Only

None

5. Presentations:

A. Budget – Dan Carsley

See  Budget 2010-11 1st Pass for budget packet distributed.

Dr. Newcome gave an introduction via the comments from Page 2


He also stated that you can’t just look at the 2010-11 year in isolation. He feels the 3rd paragraph on page 4 is important. The district’s increase will be 57% due to budgeting additional funds for the 2009-10 year.

The Administration and the Board have worked hard to build the fund balances (as shown on Page 7). $5,228,908 is the audited fund balance as of July 2009.

Page 8 shows the designated fund balance build-ups. There are 2 schools of thought on this – build up a lot to offset major increases later or fund as you go. Some districts have $30 million+ to cover electric deregulation and the increase in pension funding (for example). Octorara tends to cut things close.

Agenda item 8 A will not be on the regular meeting agenda. It does not need to be done until February.

The district did not send a letter this year to the State saying that we would not use exceptions. They wanted to leave that option open.

Mr. Carsley then gave his presentation.

Page 10 shows significant variances to the budget. Retirement shows a $142,000 favorable variance, which will go toward the fund balance.

Medical is the most alarming. There were 22 months where the premiums were under $200,000. One claim has hit the stoploss limits. There have been 3 or 4 other significant claims.

Charter schools are another area of concern.

Page 13 shows the Act 1 index. This is determined by a formula which takes into consideration the local weekly wage & a cost index. The amount of unemployment in the area has an impact on this.

Page 15 Mr. Carsley had discussed assessed real estate values last month – we were in the positive. That has changed. Updated assessments show a $400,000 decrease.

Page 16 shows exceptions. We can ask for exceptions for healthcare & retirement. Mr. Carsley was just informed today (Monday) that the District may be able to get exceptions for some special education costs. We will request the exceptions, but do not have to use them.

There were additional pages distributed to the Board. Mr. Carsley is working on the assumption that we will receive the same amount in gambling revenue.

Mr. McCarter asked what happens if Pennsylvania goes bankrupt. Mr. Carsley feels that at some point the State will have to raise taxes.

Mr. Ganow asked Mr. Carsley if he had any idea how many districts would be going to referendum this year. Mr. Carsley did not know because it is still early. Dr. Newcome stated that historically very few have gone to referendum.

Mr. Norris said he would appreciate the Administration and the Board trying to complete the budget as soon as possible so the public can know what they need to do for their escrow or savings.

Mrs. Bowman said that it might be difficult without knowing the State funding.

Dr. Newcome would like to bring more information to the February meeting, including what they think they can do & how they are going to do it. Then, he would like direction from the Board and come back in March.

Mr. Carsley addressed the highlighted items on page 8. He would like to use the reserve for Interest Expense & Transportation.

Ms. Bowman thanked Mr. Carsley for the nice presentation.

6. Information Items:

A. Ms. Susan Thieroff will transfer from full-time accounts payable clerk to half-time accounts payable clerk for 69 days effective January 11, 2010.

7. Agenda Item for Approval on January 11, 2010 at Work Session:

A. That the Octorara Board of School Directors approve the Board President and the Superintendent to sign the attached Memorandum of Understanding for Participating Districts for the Pennsylvania Race to the Top grant application.

There was a recess to discuss contract issues related to the Pennsylvania Race to the Top grant.

The original agenda item was reworded as follows:


A. That the Octorara Board of School Directors approve the Board President to sign the Memorandum of Agreement with the Octorara Area Education Association, PSEA/NEA related to the ARRA/Race to the Top/School Improvement Program.


B. That the Octorara Board of School Directors approve the Board President and the Superintendent to sign the attached Memorandum of Understanding for Participating Districts for the Pennsylvania Race to the Top grant application.

Approved.

8. Presentation of Agenda Items for the January 18, 2010 Regular Monthly Public Meeting:

A. That the Octorara Board of School Directors approve the proposed preliminary budget for the 2010-2011 fiscal year.

will be removed from agenda

B. That the Octorara Board of School Directors approve the attached annual financial audit report of the school district for the fiscal year ending June 30, 2009 as prepared by the auditing firm of Herbein & Company.

Will look at during the next Finance meeting

C. That the Octorara Board of School Directors approve the following change orders to Frey Lutz for the High School renovation and addition project:

Change Order 402-01 Plumbing fixture modifications ($7,959.51)
Change Order 402-02 Provide insulation for existing PVC $3,024.00

D. That the Octorara Board of School Directors approve the attached 2010-2011 school calendar.

Dr. Newcome said that there may be revisions as the State changed the window for testing.

Resignation Approvals:

E. That the Octorara Board of School Directors accept Ms. Billie Lynn Stanley’s resignation as a bus duty aide at the Octorara Intermediate School effective January 15, 2010. (Hired December 2009)

Hiring Approvals:

F. That the Octorara Board of School Directors approve the employment of Ms. Virginia McBride as a part-time accounts payable clerk for 69 days effective January 11, 2010 at a rate of $15.89 per hour. (Replacing Susan Thieroff part-time.)

G. That the Octorara Board of School Directors approve the employment of Ms. Karen Williamson as a mid-range substitute second grade teacher at the Primary Learning Center effective approximately March 17, 2010 through approximately May 21, 2010 at the rate of $140 per day. (Ms. Williamson is currently an approved substitute for the District and will replace Holly Conte who will be on child-rearing leave.)

H. That the Octorara Board of School Directors approve the employment of Ms. Lisa Gerber as a mid-range substitute second grade teacher at the Primary Learning Center effective November 23, 2009 through December 23, 2009 at the rate of $140 per day. (Ms. Gerber is currently an approved substitute for the District and was replacing Mario Scarfo’s medical leave.)

I. That the Octorara Board of School Directors approve the employment of Ms. Paulette Moffa as a mid-range substitute guidance counselor at the Primary Learning Center pending completion of employee related documents required by law and the District. Ms. Moffa’s rate will be $140 per day effective approximately March 10, 2010 through June 11, 2010. (Replacing Lisa Steiner who will be on child-rearing leave.)

J. That the Octorara Board of School Directors approve the following substitute teachers for the 2009-2010 school year:
Jean Coldiron (Elementary, Special Education, Middle Level English)
Jessica Cummings (Social Studies)
Dawn Munion (Emergency)
Verna Trainor (Emergency)
Lisa Rohrer (Elementary)

K. That the Octorara Board of School Directors approve the following substitute support staff for the 2009-2010 school year:
Teresa Cassell (Instructional, playground, nurse, library)

L. That the Octorara Board of School Directors approve the following changes in salary due to graduate credits earned:
Patrick Lauletta From B+15 ($51,027) to M ($52,807) Step 7
Richard Baker From M+45 ($69,813) to M+60 ($72,495) Step 14

9. Facilities Committee Report

Mr. Stoltzfus stated that the HS renovations are going nicely. They have moved into the new parts of the building. The greatest concern right now is that the new generator does not work properly. They had to bring in another generator to get the occupancy permit for the new parts. They are going back to the generator company to resolve the issues.


The water pumps have not been installed yet.


They stopped the installation of new cabling to the older parts of the building. The technology in the plans is already out of date & they want to put in the latest cabling. This will allow streaming to the other buildings on campus. This will be an additional $45 - $55,000. They ran out of time to talk about the cell tower & electric. Next month’s meeting will be at 6:00 p.m.

10. Other Items/Concerns

Mr. Rohrer passed out the Program of Studies for the 2010-11 school year. This will be on the agenda for next week. The arrangement with DCCC to provide college credit courses is ending. Mr. Rohrer & Dr. Rutledge have contacted HACC. They are interested in picking this up, possibly for the 2010-11 school year.

11. Visitors’ Comments – General

None

12. Board Comments

Mr. Stoltzfus wanted to add that it amazes him how fast technology changes & hopes that by upgrading now, it will serve the district for a while into the future.

Mr. Hume commented that it is overwhelming to think that they may have to consider increasing millage in times like this.


Dr. Newcome replied that he doesn’t think anyone believes that the mills will increase to the level in this initial run, but he also doesn’t know that they will be able to get it to -0-.

Dr. Newcome asked that the Board read the information on the Keystone Exams. He & Dr. Bishop provided some additional information on grants to the Board. Mrs. Bowman asked Dr. Bishop if she could foresee a decrease in the number or amount of grants available. Dr. Bishop didn’t think they would know until spring.

Mr. Hume said that the Chester County Department of Aging Advisory Council would like a volunteer to represent seniors in the Octorara Area. They prefer an elected official.

13. Adjournment

Facility Committee Meeting – Monday, January 11, 2010– 6:30 p.m. in the
Octorara District Office Conference Room

Executive Session for personnel Monday, January 11, 2010– following the
Work Session in the Octorara District Office Conference Room.

Finance Committee Meeting – Monday, January 18, 2010 – 6:30 p.m. in the
Octorara District Office Conference Room

Next regularly scheduled Board Meeting – Monday, January 18, 2010 – 7:30
p.m. in the Octorara Middle School Multi-Purpose Room