Finance Committee Meeting
Date: 5/4/15
MINUTES
Members Present: Cory Brown (chair), Josephine Charnock, Frank O'Donnell
Members Absent:
Others Present: Steve Skrocki, Dawn Johnston
Meeting called to order at: 6:05 p.m.
Prior meeting minutes: 3/30/2015
COMMENTS
INFORMATIONAL ITEMS
Revenues/Expenses &
Balance Sheet
Mr. Skrocki noted the comparison of budget vs. fiscal amounts. There is a variance of 1.9
million and it is much smaller than prior years due to tightening the budget and making
more precise estimates. Although the expenditures are projected we still have April
through June to get through. We will still be using 2.1 million of the reserve to cover the
deficit from the budget last year.
Frank O'Donnell questioned if we will get more income due to the projected increase in
state revenues this year. Mr. Skrocki explained that we are not expecting any extra money
because those revenues are not any that are shared with North Penn. However, with the
increased revenues the state may be more apt to give more to the districts through budget
allocation.
General Fund Financial No comment.
Reports
Mr. Skrocki noted the highlighted area of the report stating that the highlighted row and
anything below are payments that we make in July and August for payroll and that money
Salary Schedule
will be brought back to the current 2014-15 fiscal year to be charged out and not part of the
new year.
EIT, Transfer and
Delinquent Property Tax
EIT was discussed and Mr. Skrocki told the Committee the month of March was a good
month and that collections for the year are already at 11.8 million with three months still to
report. The District expects to collect around $3 million more for the remainder of the year.
With these projections, Mr. Skrocki stated it has been decided to put in an estimate of $15
million in revenue collections for the EIT in 2015-16 and the Committee was in agreement
with that number.
The Transfer Tax revenue budget was also discussed. Mr. Skrocki explained that we are
budgeting $2 million for collections next year and reminded the Committee that this is a
tough area to budget. One commercial property can sell and bring in the bulk of money for
a year but the majority of our property transfers are residential. There is no way to forecast
what will transfer ownership. Many commercial property owners look for other methods
besides sale to use the property.
Mr. Skrocki noted that Aquatics continues to do well in their operating budget for the
Community Education
current year. A budget will be presented for Aquatics at the next Finance Committee
Fund Statements
meeting.
Mr. Skrocki highlighted that there is a balance of $390,000 and Marjie Scott is doing a
great job of marketing the program and getting students enrolled. It was also noted that
besides the District guidelines that the program is asked to follow, there are also State
Extended Care Fund
guidelines and thresholds that must be adhered to especially in the area of enrollment. If
Statements
enrollment grows beyond a certain point, higher level staff must be put in place to
accommodate that growth and the can easily take away from any budget excess. A
budget will be presented for ESC at the next Finance Committee meeting.
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Mr. Skrocki noted School Nutrition Services continue to have a good year with a projected
balance of $254,000 for this year. Mr. Skrocki told the Committee that the majority of
Nutrition Services Fund these funds were going to be budgeted for equipment. The increase in the revenue is due
Statements primarily to non operating revenues such as Federal and State subsidies. With a fund
balance of $292,000 last year, that brings the balance up to $540,000. A budget will be
presented for SNS at the next Finance Committee meeting.
Investment Reports - No comment.
Monthly & YTD
Mr. Skrocki explained that there is money available to cover all projects for 2014-15 and
still have a balance of one million dollars. The only numbers listed on the projects list that
are not expended are the roof and secured entrances and those items are still estimates.
Josie Charnock asked that any items that are estimates somehow be noted as such.
Cory Brown questioned the transportation drivers concerns about the GPS and Camera
Short Term Capital Projects
installations on busses. Mr. Skrocki told the Committee that he met with the driver. Mr.
Cash Forecast
Skrocki explained the cameras were for safety and security so they can keep any eye on
students if there are any safety concerns on busses and the GPS systems are to capture
route data as well as speed in the event a bus is reported for something of that nature.
Chris Gray, Transportation Coordinator, will be scheduling a meeting in the very near
future for Mr. Skrocki to meet with all of the drivers to discuss these issues and he will also
give a budget presentation as well.
Hatfield Construction No comment.
Project Costs
Mr. Skrocki focused on one particular item of note and that was the Board approval of the
NMTCC Bond refinancing. With the savings that have been realized by this approval, the
District was able to transfer $231,000 back into the reserve.
Budgetary Reserve Report Mr. Skrocki reminded the Committee that $3 million was transferred to the Internal
Reserve Fund for health care claims. At this point in time there will be no need to add any
further funds for 2015-16 due to the higher contribution costs for employees. Mr. Skrocki
also informed the Committee that the District was able to recapture $1.3 million from Elite
(our prior provider) on an outstanding claim that they were holding onto.
Special Education Report No comment.
ITEMS FOR WORKSESSION / ACTION MEETING
Mr. Skrocki highlighted one large transfer in where $2.1 million that was budgeted for
charter schools was moved back to the budgetary reserve since those charters will not
open in 2014-15.
Budget Transfers
Mr. Skrocki noted that the Connections Charter School will have a final ruling in June. The
District has budgeted $1.8 million for 2015-16 estimating that only one charter will open in
2015-16 with an enrollment of approximately 120 students.
Mr. Skrocki provided an update on a few developments in order to firm up approval of this
First Student Contract - contract. The most important item to note is that the IU Diesel Bid came back at
Private School $2.08/gallon for next year. That means if we lock in that our costs would not rise above
Transportation $2.08 for the entire year. The other item to note was that First Student came back and
lowered their increase on the last two years of the contract for the fuel sharing option.
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The fuel options were reviewed.
1. The District paying for the bus fuel in its entirety
2. Sharing in the fuel cost which would mean we pay for the fuel and then splitting the
difference of the cost of the fuel for anything over $2.50.
It was noted that, in order to project future fuel costs, a 7 year average was taken and then
15% was added on to that to get a future cost of $3.07/gallon.
First Student Contract Private School
The Committee was reassured that First Student is keeping daily logs of fuel use by bus
Transportation
and only two employees are assigned to fuel the buses. These logs and spreadsheets are
CONTINUED
being shared weekly with the District. Administration feels comfortable that there is
absolute accountability now with First Student. For the contract recommendation the
Committee asked that the accountability issue be addressed in the information sheet. The
Committee also directed they would like the contract option by which we agree to three
years paying for the fuel in it's entirety and then we have an option for an out on year 4 or 5
if we so choose.
Mr. Skrocki informed the Committee that the proposed final budget must be approved at
the May 12th worksession due to the state timeline we must adhere to. The approval will
authorize us to then post the approval of the final budget at the June 18th action meeting.
The refining of the budget has brought it down to a deficit of $5.2 million assuming a 1.9%
tax increase. We have flatlined all of the numbers with no increase in State revenues. Mr.
2015-16 Proposed Final Skrocki suggested adding an additional $500,000 to the revenues due to the expected
Budget increase in Governor Wolf's Budget. We will also use $1 million from the PSERS rate
stabilization fund to bring the deficit down further. The Committee agreed to those
decisions.
It was also noted that our state gaming money will increase slightly by about $63,000. We
don't know what this means to the taxpayers until we get the Homestead listing from the
County.
Mr. Skrocki advised that North Penn's portion of the NMTCC budget is going up 1.4%.
This is approximately a $38 thousand increase. It was noted that 40% of the students
2015-16 North Montco enrolled are from North Penn.
Technical Career Center
Budget It was also noted that there is an additional $76 thousand we will be saving in 15-16 due to
the bond refinancing.
OTHER BUSINESS
2015-16 Budget
No discussion.
Presentation
Mr. Skrocki informed the Committee that the field had been narrowed down to 3
Financial Services RFP
institutions from 9. There will be a final recommendation at the May 26th Finance
Update
Committee meeting.
Building Renovation
No discussion.
Financing
March Budget Transfer - Action May 21
Summary of Items Moved First Student contract - Action May 21
to Worksession and/or
2015-16 Proposed Final Budget - Work Session May 12
Action Meeting
NMTCC Budget - Action May 21
Public Comments:
None
Meeting Adjourned at:
7:32 p.m.
The next meeting will be on Tuesday, May 26th, 2015 at 6:30 p.m. at ESC
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