Work Session 01/14/2013

OCTORARA AREA SCHOOL DISTRICT
WORK SESSION
January 14, 2013 – 7:30 p.m.
Jr./Sr. High School Multi-Purpose Room

DISCUSSION GUIDE

1. Moment of Silence
2. Pledge of Allegiance
3. Presentations

A. Budget

Mr. Carsley gave a presentation on the preliminary budget for 2013-14.

For 2011-12 there was a budgeted net loss of ($1,210,034).  The actual was a net gain of $ 317,241.

Revenue came in at about budget, while expenses were below budget.

We received approx. $80,000 in contingency funds that we applied for.  We also received a PA Accountability Block Grant after the budget was finalized.

Breakdown of Revenue:

71%  Local
26% State
3% Federal

90% of the local portion is from Real Estate Taxes
5% is from EIT.

We are down $800,000 from EIT and Investment Earnings from a few years ago due to the economy.

State Revenue has been flat over the past 6 years.

Charter School reimbursement has gone away.

Salaries were under by $200K.
Benefits were under by $743K.
Charter Schools were over by $213K.
Supplies were under by $216.  (Electric & Gas were lower due to mild winter).

Benefit claims are volatile. 

General Fund Expenses
2006-07     $9M
2011-12     $13M

Charter School & Retirement
2006-07    $ 1.7M
2011-12    $ 4.1M

Increase in Pension (Net)         $242K
Increase in Charter Schools      $741K
(increase in tuition and lost reimbursement)
Net effect                                  $980K

2012-13 Outlook is somewhat favorable.
We received a PA Accountability Grant of $120K (again - after the budget was complete)
Debt Service Refinancing  $131K savings.

2013-14 Preliminary

Act 1 Index = 2.1%
The state changed the formula.  It is now based on averages and should be about this amount for the  next few years.

Retirement funding rates
2012-13       12.36%
2013-14       16.93%
2014-15       21.31%
June
The change in assessed values in Chester County is starting to increase slightly.   Many nearby districts had significant decreases in assessed values.

Estimates
Retirement funding will cost approx. $900K more.  We will get 1/2 back from the State.
Salaries increase  $289K increase.
Charter School funding $203K decrease
Interim Real Estate Tax $100K decrease
Retirement reimbusement $458K increase.

To have a balanced preliminary budget the millage would need to be as follows:
Chester County           Current:  36.66     New:  37.85
Lancaster County        Current:  27.49     New:  28.60
IMPORTANT:   The State requires by law that school districts pass a balanced prelininary budget in February.   The only way to balance a budget this early in the process is to increase millage.  The increases will be above the index - so the district will be working from now until June to create a budget within the index.

Dr. Melton questioned the supply figures.  Mr. Carsley stated that the increase is for textbooks (clarified by Dr. Newcome that these are materials for Readers' Workshop).  There is also capital funding for the iPad initiative. 

Dr. Newcome said that there would be additional material included in the Board packets for next week.

Ms. Bowman asked Mr. Carsley to talk a little about the rebalancing between Chester & Lancaster Counties.

Mr. Carsley explained that two years ago the split was 77/23 based on assessed values.  Last year, the split was 79/21.  That is why Lancaster County's taxes went down a little.  This year it is closer to 78/22.  The District does not have any control over this.  The calculation is hard-coded into the software. 

Budget process begins this month.   Preliminary budget must be approved in February.  They will work through changes during April, May and June. 

4. Visitors’ Comments - Agenda Items Only

None.

5. Information Items:

None.

6. Presentation of Agenda Items for the January 21, 2013 Regular Monthly Public Meeting:

A. That the Octorara Board of School Directors approve the Resolution Authorizing the Proposed Preliminary Budget Display and Advertising and Authorizing Referendum Exception.

B. That the Octorara Board of School Directors approve the 2013-2014 school calendar.

Resignation Approvals:

C. That the Octorara Board of School Directors accept Ms. Crystal Leonard’s resignation as an Instructional Assistant at the Octorara Area Jr. High School effective January 7, 2013. (Hired April 20, 2010)

D. That the Octorara Board of School Directors accept, with regret, Mr. Phil Rudisill’s resignation as a baseball coach at the Octorara Area Jr. High School effective January 1, 2013. (Hired 2007-2008 school year)

Hiring Approvals:

E. That the Octorara Board of School Directors approve Ms. Michelle Gemma as an ESL Title III Instructional Assistant at the Octorara Intermediate, Jr. High, and Sr. High schools effective December 10, 2012. Ms. Gemma’s rate will be $11.65 per hour for 5.75 hours per day. (Replacing Chris Henley who resigned.)

Ms. Bowman asked for clarification on Title III.   Dr. Newcome said that it has to do with English language learners.

F. That the Octorara Board of School Directors approve the following supplemental contracts for the 2012-2013 school year:

Christian Taylor Mentor                Jan D’Angelo 1 pt @ $585 $585

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

Joshua Irons From B+15 ($52,066) to M ($53,941) Step 16 to MAX

7. Facilities Committee Report

Mr. Stoltzfus gave the Facilities Committee report.  The playground equipment site has been prepared and is ready to be installed.

HS Renovation - there are still a few issues.There is a relay panel missing from a generator.  A part of the roof between the girls' locker room and the gym was not replaced during the renovation.  It is leaking and needs fixed.

The insurance company gave a list of things they would like to see fixed.  We need to find out why these things weren't brought up to code during the renovation. 

Priority List:
Bleachers
Joint work on the Jr. High School - we may do inhouse.

FOB system up and working.

Old generator from the HS - bid of $3,000 - sold.

There will be a household waste day by the CC Waste Authority - more info to follow.

Dr. Newcome discussed field development.
The task force is to fund the field surface.  The district to fund bleachers.  Plans to patch the track until it is determined if the grass field can eventually be replaced with turf.

The 1st fundraising event (A Championship Night with Ryan Vogelsong) raised a significant amount of money.  The final talley is not complete yet. 

They have received two bleacher quotes.  The specs are the same. 
1) $ 342K
2) $ 180K

The lower bid does not include developing the area where the bleachers are placed.  The task force is exploring whether the work can be done by members of the task force.

Dr. Melton appreciates the need for bleachers, but feels that other items should rank higher on the priority list. 

Dr. Newcome said that the over-simplified answer is that they are trying to take care of a multi-million dollar project.  To make the field happen, they need help.  The Board may decide that it isn't a priority.

Mr. Norris said that the bleachers were high on the insurance company list. 

Dr. Melton said that it would be best to take the bleachers down.

Ms. Bowman said that at this point we either need new bleachers or take the old ones down.  The task force has done what the Board/District has asked them to do.  The field was part of the original plans for the high school renovation.  We have to decide which direction we want to go.

Mr. Stoltzfus said that the plans were scrapped before the the renovations started.  There was an estimated cost for a stadium of $7M in 2004/05.  The task force is raising money, we sort of committed.

Dr. Melton asked who committed.

Mr. Stoltzfus said that it was discussed in October. 

Ms. Bowman said that the majority of the Board seemed to be in favor of moving forward, although a vote was not taken. 

Dr. Newcome said there needs to be a formal vote at some point.

Ms. Bowman wanted to know when we need to go forward with this.  What is the timeline to get bleachers. 

Dr. Newcome said they should have more information in February.  He asked Scott Grimes to give more information & answer questions.

Mr. Grimes said that they are looking at pouring a concrete slab to put the bleachers on.  The bleachers come in modular form.   A slab is not absolutely necessary.  The ground needs to be level. 

Ms. Bowman wanted to note that the bleachers have been used for more than just sporting events.  Until graduation started being held in front of the school, it was held on the field.  Also used during Elementary school field day and band concerts.

Mr. Grimes stated that the bleachers being looked at hold 1,500 people.    He also said that if the bleachers are on a slab, they can be closed in for storage.

Dr. Melton said that the explanation was good, but bleachers can't be prioritized over other things. We only have $2.4M.  The list is $7 - 8 M. 

Ms. Bowman appreciated Dr. Melton's view, but we can't afford the the air conditioning product no matter what. 

Mr. Stoltzfus said that the bleachers have been on the list for the past 3 years.

Dr. Newcome noted that this type of discussion usually takes place during facility meetings, but they ran out of time.

8. Other Items/Concerns

None

9. Visitors’ Comments – General

Scott Grimes (Parkesburg) thanked the District, Tom and Jamie for a successful event Sat. night.  He thanked the Board members who attended and looks forward to their continued support.

10. Administrator Comments/Announcements

Ms. McNamara said that Terra Nova test results were good.

Dr. Rohrer noted that Joe Mattis & James Supplee were both accepted to the University of  .

Joe Mattis gave Student Council news.  The Senior Citizen prom will take place April 26th and will be held in the HS gym.  They are going to hold another fundraiser to fund the statue.  There is a blood drive Jan. 25th.

Dr. Newcome thanked the field development committee for stepping up for the Ryan Vogelsong event.

11. Board Comments

Ms. Bowman also thanked Scott Grimes for the Vogelsong event.  She thought it was amazing & his story was authentic.

Mr. Hume thanked the music department for holding and event for senior citizens in Parkesburg.  The audience was speechless.


12. Adjournment

Facility Committee Meeting – Monday, January 14, 2013 – 6:30 p.m. in the District Office Conference Room

Executive Session for personnel – Monday, January 14, 2013 – Following the Work Session in the District Office Conference Room

Policy Committee Meeting – Monday, January 21, 2013 – 6:00 p.m. in the District Office Conference Room

Finance Committee Meeting – Monday, January 21, 2013 – 6:30 p.m. in the District Office Conference Room

Next regularly scheduled Board Meeting – Monday, January 21, 2013 – 7:30 p.m. in the Octorara Jr./Sr. High School Multi-Purpose Room

Education Committee Meeting – Monday, January 28, 2013 – 6:00 p.m.in the District
Office Conference Room