Octorara School Board Work Session 5/10/2010

OCTORARA AREA SCHOOL DISTRICT

WORK SESSION
May 10, 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

1 absent

4.Presentations:

A. Middle School Athletics

Mr. Weagley addressed the Board to reconsider eliminating Middle School athletics.  He recognizes the financial situation and that the Board recognizes the value of sports in school.   This will leave 200+ kids without an activity.  It may also cause harm to the high school athletic program.  He has 3 proposals:
1.  Retain the program in its current form.
2.  Combine 7th & 8th grade teams.  This would limit 7th grade participation.   We currently have a 'no-cut' policy for 7th grade.
3.  Create an intramural program that would focus on participation & skill building.  This would be run by reversing seasons to utilize high school coaches & athletes.
He asked for recommendations from the HS coaches.  He is asking for permission to look into this further.  All sports may not look the same.  Some sports may need interscholastic competition; some may not.

B. Public Use of Fitness Center

Mr. Weagley said that they are looking at an agreement with Tom Hurley's company.  Mr. Hurley is a district physical education teacher.  The proposal would open the fitness center in off hours: 
5:30 - 6:45 am Community, faculty & staff
6:45 - 7:30 am Faculty & staff
School hours - phys. ed. classes
After school (and daytime summer hours):  athletes
7:00 - 9:00 p.m.  adult fitness programs

There would be no charge for students.  $25/month for community

Students already have a relationship with Mr. Hurley.   June 1 is the target date.

Mr. McCartney asked about the revenue of $10,000.  Mr. Weagley replied that it is the registration fee of $50 per student.

Mrs. Bowman stated that it has never been a question of the value of sports and other extra-curricular activities.  The question is how to pay for it.  She asked what should be eliminated if the Board accepted any of the 3 proposals.  She asked how many beginner level athletes there are in middle school vs. experienced athletes. 

Mr. Weagley did not know the specifics.  He did feel that there might be greater participation in an intramural program.

Mr. Norris stated that it seemed as though Mr. Weagley was asking for a month to explore the options.  The Board has some wiggle-room with respect to the date it has to pass the budget.  It wouldn't hurt to look at the proposals.

Mr. Weagley said that he could look at them with no funding from the district.  (He mentioned booster organizations - but it wasn't clear if he had actually spoken with the booster organizations about funding middle school sports).

Mrs. Bowman noted that this could potentially be a 1 year bandaid - then the next year & the next year until the pension bomb drops.  She said that it was like fixing a broken leg while the patient is bleeding out.

Mr. Norris asked which teams would be negatively impacted the greatest by the elimination of middle school sports.  Mr. Weagley felt that football couldn't exist without an interscholastic portion.  He felt soccer could survive due to the travel programs in place.

Mrs. Bowman asked how the district would choose which sports would compete interscholatically - she warned of Title IX issues.

Mr. Weagley said he was going to contact PIAA about the ramifications of Title IX.
Mr. Malone had a question about supervision at the Fitness Center.  Mr. Weagley said it would be supervised by Mr. Hurley or anyone he hires.  There is a youth supervisor certificate.

Mr. Norris had another question about middle school sports. He wanted to know if there was a breakdown for coaches & booster organizations to look at.

Mr. Malone asked if Mr. Norris was suggesting that the booster organizations raise the funds.

Mr. Norris said he would like the booster organizations to look at the plan & see if they can come up with the money either through fund raising or players paying a fee.

Mr. Weagley said they may look at a tiered fee.

Mr. Malone wanted to know if this had been discussed with booster organizations to fully fund middle school sports.

Mr. McCartney said that some school are charging $150.

Mrs. Bowman said that it is not uncommon to pay $75 - $100 to play with external groups.  She feels that it can't hurt to look at it.

Mr. Ganow wanted to make clear that if the board funds any amount then it has to come from somewhere (i.e. someone's salary).  The Board cannnot raise taxes any higher.

Mr. Malone stressed that academics is already being cut.  He wondered how much more could be cut.

Mrs. Bowman had a question about the fitness center:  would there be limits to membership? What are the occupancy limits?  Consider wear & tear?  No lockers or bathroom facilities.

Mr. Weagley doesn't foresee a large membership, due to the availability. 

Mr. Stoltzfus asked about limits.

Mr. Weagley said that in the afternoons there may be a max of 50 athletes.  He wouldn't want to see that many in the off hours.

Mr. Norris asked if this was a money-making venture for Mr. Hurley and would it be a conflict of interest.

Mr. Weagley stated that he hadn't thought of that and would check into it.

C. Budget

The preliminary final budget total is $46,350,938.

Mills:
35.12  Chester County       2.89 increase (8.97%)
38.32 Lancaster County       .65 increase (2.31%)

There have been numerous changes to the budget.  Highlights are:
Expenses:
Decrease transportation costs $120,000
Decrease workers comp costs $ 80,000
Decrease prescription costs  $12,000
Increase charter school costs   $ 125,000

Left the general education subsidy from the state at original amount.  The state has already cut it from their original budget.  Mr. Carsley is waiting for final numbers before he changes it.

Gambling funds:  $ 1,112,000  (approx. $270 to homeowners)

Healthcare Claims
2007-2008  one month > $200,000
2008-2009 one month > $200,000
2009-2010 6 months >$200,000 (so far)

There have been $ 2.9 million in claims.  The district is $300,000 over budget.  There has been a 22% increase in rates for this year.  The budget has an increase of 19%.  We are self-insured.  This has worked to our advantage.  Other schools are going to being self-insured.

Pension
                                                                Net Cost
2010-11    8.22%  locked in                  $  838,000
2011-12   10.59% estimated                 $ 1,124,000
2012-13   29.22% estimated                 $ 3,224,000
2013-14   32.09% estimated                 $ 3,682,000
2014-15   33.60% estimated                 $ 4,010,000

Pension ends up greater than healthcare.

The index will be lower next year.  The pension costs will increase over the index by $1,000,000.

Assessed Values
The district receives a statement of values in October.  Mr. Carsley showed how the values bounce up and down from month to month.  He stated that they need to be hesitant to increase Real Estate Tax revenue if the value goes up, because it could drop the following month due to appeals. 

Tax
For a home with an assessed value of $150,000:
Chester County
$ 5,268 tax
- $270  share of gambling rev
$4,998 amount owed to district

Lancaster County
$ 4,248 tax
- $270 share of gambling rev
$ 3,978 amount owed to district


Earned income tax is budgeted at $ 1.5 million.  The current year is $ 1.9 million.

Interest on Investments:  $ 400,000 last year; $ 108,000 this year.

Grants have also been reduced.  The Drug-Free Schools grant has been eliminated.

Mr. Norris asked Mr. Carsley to explain to the audience how the Earned Income Tax & inflation rates go toward setting the index.

Mr. Carsley explained that the index is calculated in a formula that uses the Standard Average Weekly Wage & costs/student.   Since so many people have taken pay cuts or have been laid-off, the Standard Average Weekly Wage has decreased, so the index will be less next year.  Many of our increases will not be covered by the index.

Mr. Ganow stated that the district had received a warning from the state that scares him some.   It says that the state won't make up shortfalls & that there is the possibility that districts won't receive any funding from the state.  Dr. Newcome said that they sent basically the same letter in Jan. 09 and the budget wasn't passed until October.   He hopes that isn't an indication of when this year's budget will be passed.  He stated that the letter says to not spend the money that is in the Governor's budget, because he might not get his budget.

Mr. McCartney said that the audience may not understand the spike in pension funding.

Mr. Carsley said that basically the stock market decreased & the number of retirees increased.  The contribution was 1.09% when he started at Octorara & is up to 8.22% for the budget we are working on.

Dr. Newcome wanted to follow up on Mr. Weagley's proposals.  Mr. Weagley asked if he could work on fixes.  In April, Dr. Newcome presented $ 1.25 million in reductions.  Almost every dollar impacts programs (except electric). 

He knows that the Adminstration & Board understand the significance of the cuts; understands the value of activities; that the world changed under Act 1; and it is all about being able to pay for items.  

Last year, we eliminated Indoor Track; Bully Prevention Coordinator & Volunteer Coordinator.  These all brought value to the district.   The district currently does not provide sports prior to 7th grade.  If parents want their children to participate in sports prior to 7th grade, they pay for it. 

We need to look at this as this is the way it is going to be unless funding changes.  He said he is not advocating giving up on these good things, but should every taxpayer fund them? 

He encouraged the Board to look at the preliminary final budget and recommends that they approve it on May 17th.  The final budget must be voted on in June.  They can make adjustments in June. 

The budget calls for using $750,000 of the fund balance - the question is "should we use more?".

He can't imagine staying financially viable if we do not look at a different way of doing things.
When we decrease the number of teachers, it increases the number of students in the classroom & teachers can't be as effective.
When we decrease the number of office staff, then we aren't as customer driven.
When we decrease the number of administrators, then there are things that will not get done.  The district needs to be fiscally responsible.

Mr. Norris said he wanted to be clear that he wanted Mr. Weagley to formulate his plans with no district funds.

Mr. Ganow asked Mr. Carsley to explain Act 1.

Mr. Carsley explained that Act 1 was put in place in 2006.  It limits the level of real estate taxes to the index.  You can only exceed the index with exceptions that are applied for & approved.  We were approved for $1.3 million and are only using $ 900,000.  The exceptions will not always be there.

The Special Education exception is calculated by the state.  Healthcare is increasing 22%, but the exception may be less.

In the 2012-13 year, pension funding will spike.  We will probably get a nice exception, but the trade-off is that there will be higher taxes (more mills).  All districts have been handcuffed by Act 1.

Dr. Newcome said he had received suggestions from the community.  He passed out a list to the Board.  It will be posted on the website in the future. 

Mrs. Bowman said that the district is looking at surviving.  We were a very lean district to begin with.  We don't have the taxable entitities that some other districts have.  We have to rely on our residents.  We don't have the Exton Mall or the Great Valley corporate centers.

Mr. Carsley said that we don't typically amend our budget after it has been passed.  People have the mistaken impression that are costs are then fixed.  However, we have many variable costs.   Two large ones are charter school payments and healthcare.

5. Visitors’ Comments - Agenda Items Only

Mrs. Bowman stated that answers to questions would be answered later in the meeting or next week.

Kris Lawrence said she works for the district and coached middle school sports.  She would be disappointed if middle school sports were taken away.  It encourages fitness, well being & character.  It helps keep kids in school & makes them proud of their school.  It makes them better leaders.

Tina Butler (West Fallowfield)  asked if the numbers could be massaged to help the clubs that don't have booster organizations.   She is currently paying a fee for her children to take an enrichment science course and for sports.

Ms. Lawrence asked if there was something for kids that couldn't afford sports.

6. Information Items:

None.

7. Presentation of Agenda Items for the May 17, 2010 Regular Monthly Public Meeting:

A.That the Octorara Board of School Directors approve bid awards for the 2010-2011 school year as per attached summary for:

Art Supplies $12,543.13
Industrial Arts/Vo-Ag Supplies $9,497.81
Science Supplies $5,170.56
Copy & Computer Paper $31,651.90
Technology Bid $3,213.40

TOTAL: $62,076.80

Mr. Ganow thought the amount of copy paper sounded high.

B.That the Octorara Board of School Directors approve Winifred Sebastian as District solicitor for the 2010-2011 school year at a rate of $150 per hour.

C. That the Octorara Board of School Directors approve Policy #303.2, 404.2, 504.2 Supervisor/Employee Relationships, first reading.

D.That the Octorara Board of School Directors approve the list of current Class of 2010 seniors of the Octorara Area High School, having been individually considered for graduation by the Octorara Board of School Directors, contingent upon their successful completion of all local and state requirements.

E. That the Octorara Board of School Directors elect ____________ as Board Treasurer from July 1, 2010 through June 30, 2011.

F. That the Octorara Board of School Directors approve the attached resolution for the Proposed Final General Fund Budget for the 2010-2011 school year.

G. That the Octorara Board of School Directors approve the attached 2010-2011 Student Handbook for the Octorara Elementary School.

H. That the Octorara Board of School Directors approve the attached 2010-2011 Student Handbook for the Octorara Intermediate School.

I. That the Octorara Board of School Directors authorize the administration to develop and file applications for external funding for the 2010-2011 fiscal year under the following federal programs:

Title I – Improving Basic Programs Operated by LEA’s
Title II (A) – Improving Teacher Quality
Title III – Improving Language Instruction Programs

Resignation Approvals:
J.That the Octorara Board of School Directors accept the resignation of Ms. Melissa Jones as a Title I reading assistant at the Octorara Intermediate School effective June 15, 2010. (Hired August 27, 2007.)

K. That the Octorara Board of School Directors accept the resignation of Ms. Veronica Leamont as a lunchroom/playground aide at the Octorara Intermediate School effective June 15, 2010. (Hired March 16, 2009.)

L. That the Octorara Board of School Directors accept the resignations of Ms. Virginia Schempp and Ms. Avis Benard as co-directors of the Summer Kindergarten Outreach Program effective April 19, 2010.

M. That the Octorara Board of School Directors accept the resignation of Ms. Abigail Hancock as JV Field Hockey Coach at the Octorara Area High School effective May 4, 2010. (Hired August 17, 2009.)

N. That the Octorara Board of School Directors accept the resignation of Ms. Judy Ham as seventh grade girls’ basketball coach effective May 5, 2010. (Hired December 8, 2008.)

Hiring Approvals:

O.That the Octorara Board of School Directors approve the employment of Ms. Kimberly Miller as a mid-range substitute English teacher at the Octorara Middle School effective May 11, 2010 through June 15, 2010 pending completion of employee related documents required by law and the District. Ms. Miller’s rate will be $140 per day. (Ms. Miller is an approved District substitute replacing Elizabeth Landis who is on child-rearing leave.)

Mr. Ganow asked if there was a resume attached.  Mrs. Hardy stated that she is an approved substitute.
P. That the Octorara Board of School Directors approve the employment of Ms. Crystal Leonard as an instructional assistant at the Octorara Middle School effective April 20, 2010 pending completion of employee related documents required by law and the District. Ms. Leonard’s rate will be $9.65 per hour.
(Replacing Jacky Strouth who resigned.)

Q.That the Octorara Board of School Directors approve the employment of Ms. Carla Mapes as a mid-range substitute English teacher at the Octorara Area High School effective April 22, 2010 through June 15, 2010 pending completion of employee related documents required by law and the District. Ms. Mapes’ rate will be $140 per day. (Replacing Jennifer George who is on child-rearing leave.)

R. That the Octorara Board of School Directors approve the attached list of 2010 Summer Reading Program employees at the hourly rates listed. 

S.That the Octorara Board of School Directors approve Ms. Marjory Zajac’s request for unpaid Family Medical Leave for the purpose of child rearing from August 25, 2010 through November 19, 2010. Ms. Zajac is a first grade teacher at the Octorara Primary Learning Center.

T. That the Octorara Board of School Directors approve the request for Ms. Gwendolen Klotz to take an unpaid leave of absence without benefits for the 2010-2011 and 2011–2012 school years.

U. That the Octorara Board of School Directors approve Ms. Debbie Canby’s request for sabbatical leave for the purpose of study for the 2010-2011 school year. Ms. Canby is a health and physical education teacher at the Octorara Middle School.

V.That the Octorara Board of School Directors approve the following substitute teachers for the 2009-2010 school year:
Stephanie Harper (Elementary, Early Childhood, Special Ed)
Diane Ernst (Elementary)

W. That the Octorara Board of School Directors approve the following change in salary due to graduate credits earned:

Diane Ricker From B ($45,125) to B+15 ($50,165) Step 6

8. Facilities Committee Report

Mr. Stoltzfus gave an update on the high school renovations.  They are in Phase 2.  Things are moving along well and they are ahead of schedule.  They are working on the schedule for the summer and into the fall.  The project is about 70% complete.  The change orders have been small.  It is very expensive when they find asbestos.  They are removing asbestos outside of the shop.

The Middle School roof is in dire need of replacement.  They will have final numbers for the next meeting. 
Two years ago, the roof had been evaluated and  70% of it could be refurbished.  The current estimate is that 20% could be refurbished.  So it has deteriorated significantly over the past two years.

There are water issues at the Intermediate School.  When it rains & there are high winds, there are leaks.  They are trying to get to the root of the problem.

The fire system is still being worked on.  The cable has been run between the Elementary school and the High School.

They are looking at evening custodial staffing.

They are still waiting for details on the cell tower.

The snow last winter cost $40,000 to remove.  We may get some of that back from the state. 

The playground equipment for the Intermediate School will be on the agenda for next week. The cost is $16,000.  The PTO has $5,600.  He hopes that the PTO will be able to contribute more in the future.

A memorial cove is being planned for the high school.

Field development - the work on the football field is on hold.

There are also water issues at the High School.  Whenever they have to turn the water off, when they turn it back on, the water is cloudy. 

9. Other Items/Concerns
Dr. Newcome had a follow-up to last month.  The PA Youth Survey occurs every two years.  He doesn't have the 2009 report yet, so he brought the 2007 report for the Board. 

Mrs. Bowman asked if the Drug Free School grant going away would decrease programs at the school.  Dr. Newcome said that it may, however, there is a grant they are applying for that could cover it if we get it.

10. Visitors’ Comments – General

None.
11. Board Comments

Dr. Newcome said that Ms. Lawrence made a case for the value of programs.  The value of the programs are not in question.  He also spoke to her question about kids that couldn't afford programs.  He felt that knowing the people involved in our community groups that they probably have plans for kids who can't afford them. 

He will analyze how the district uses $30,000 worth of paper.

He is in conversations with the Jennersville Y to determine what kind of relationship they can have.

He has a belief that when a void is created it will be filled in the community.  He asked the question as to why it is the responsibility of the school to provide "x,y,z".

Mr. Norris said that he did a quick calculation.  The paper comes out to $175/day; $35/school, $11/student.

Dr. Newcome said that they purchase the rights to copy certain texts rather than purchasing textbooks.

Mr. Norris spoke again about Middle School sports.  He feels that if the clubs want to fund, there is a blueprint with football.

Mrs. Bowman said that there are some harsh realities.   She thanked everyone who came out.

12. Adjournment

Facility Committee Meeting – Monday, May 10, 2010 – 6:00 p.m. in the Octorara District Office Conference Room.

Executive Session for personnel - Monday, May 10, 2010 – following the Work Session in the Octorara District Office Conference Room.

Finance Committee Meeting – Monday, May 17, 2010 – 6:30 p.m. in the Octorara District Office Conference Room.

Next regularly scheduled Board Meeting – Monday, May 17, 2010 – 7:30 p.m. in the Octorara Middle School Multi-Purpose Room