I'd like to call the
Finance Committee meeting to order
and announce that this meeting is being audio recorded
and live streamed.
This is the May 23rd, 2022 meeting.
If we could just go around and introduce ourselves.
My name is Kathy Sticker School Board member and Treasurer.
Go to my right.
Stacy Winslow Superintendent.
Lindsay Drew. Board Member.
Erica Schmidt. Board Member.
Cheryl Purcell. Business Manager.
Shelley G. Board Secretary.
Regis Berwyn Administration.
Mike Rizzo Board Member. Okay.
And if you're online, I see.
Paul, do you want to go ahead and unmute to introduce yourself?
Paul Latham Citizen Advisor.
Okay.
Thank you.
And I believe that it as far as people online
who haven't introduced themselves.
I'd just like to acknowledge
that the board is reorganizing tonight in committee.
So Mrs.
Schmidt is here in place of Mr. Singer.
Attached are the
summary minutes from our last meeting in April.
May I have a motion to approve the summary minutes?
So moved on to your. Second Mike Rizzo.
Is there any discussion?
All those in favor say. I.
Was opposed. Say no. Okay.
The minutes are approved.
There's no unfinished business, and we'll move on to new business.
The 2223 Capital Reserve Plan.
Mrs. Purcell.
Okay, so this is hot off the presses.
We just talked about this in June services.
So for anybody that was participating in that meeting,
you've already kind of walked through this.
This will be board approved.
We're still making some adjustments to it once we get some maybe some better
numbers or closer numbers or make sure we have all the pieces of a project.
These are items that the district really needs to
undertake in the 2223 school year.
The gen service or the CAP reserve plan will be board
approved by the end of June, probably June 27th.
So then that way we're set basically just to get going with all the work
as indicated by the priorities on this plan.
What's important on this plan to note is that these are just projects
that will be started and spent in 2223.
There are costs associated
with some of these projects that will go into the future, and we will
be building a long term plan that we can be monitoring
why and bringing it to finance, because there are
several contracts on here that will be coming to board
And also the impact, the financial impact to the overall total
reserves of the district
are something that we all need to take into account as we move forward.
The the biggest projects on here, there are a couple of things
we're going to be going you will be seeing as a full board for approval.
We're going to move forward.
There's a train proposal for library dehumidification
at the house, at the middle school, rather, excuse me that we can start on.
They are able to get us in this summer.
So that will take care of the moisture concerns this summer
instead of waiting till next summer, since it's something
they really need to be able to get inside and do work on.
And we do have a proposal for 57,007 75.
So that's that's a solid number.
As you know, the facility study has started.
The talks are the facility study for 90 $500.
That piece of it is underway.
There are no cost cost associated against the any costs to do
with the elementary school will be hitting the 2324 and out years after that.
This piece of it is just to get going on what that's going to look like.
So a big part of budget and debt structuring
and all of that will be coming out as a result of
what our
needs and debt needs
might be to be able to pay for any elementary work.
The other piece is at the middle school, we've been talking about auditorium
upgrades and a repair of a concrete beam in the middle school,
and that was noted at the same time the sinkhole was taken care of.
This repair is not as critical.
So we've got some time on that.
Those are just ballpark estimates on here to
if there is a vendor identified, we have a proposal in hand.
The next column is it just an estimated time
frame of when we can be working on these items.
And then again, just an estimated estimated cost
traffic assessment we've been working on with the high school.
We have one proposal and we're going to be comparing it
to another just to make sure that we're
going in the right
direction with what's happening at the with the traffic study.
Can I just ask a question on the middle school?
The auditorium upgrades, it says for lighting.
Was there also sound?
There was sound that.
That was already addressed right. Now.
So it's going to go a year out. That can wait.
What's what's most critical for this year is the sound piece of it.
And that was actually identified pre-COVID for the lighting.
Yes, the one that's on it.
Sorry. Yes.
So lighting will be tackled first and then we'll hit sound.
And how in the 23, 24 school year?
Yes, I think the lighting was moved up because of the safety, getting able
to see on stage versus the sound, which is just an esthetic thing.
Okay. I appreciate that.
It's on the plan because we've been talking about it
for quite a while and it hadn't been there.
So and a lot of these things I know the board
has probably heard these things for a couple of years now and pre-COVID.
So it's trying to get them back on here and really take priority
to make them appropriate, make this list a priority, and be able
to go out this list in the 2223 school year.
So some of these we're trying to line ourselves up
that we can actually get going once this summer with some of this
and then be prepared for more work next summer.
Oh, we had
Jim Caldwell from here to here this afternoon for June services
and those contracts will be coming forward for board approval to
this is to start pulling all the work together for Memorial Field
and the memorial field work, as if you recall, that will be reimbursed
from the county.
What we need to do
as part of that work, though, we've got a sinkhole remediation issue.
So that piece of it has actually already started
because that's hitting a potentially emergency situation.
The other piece is the softball.
Softball parking lot and redoing that.
That's been a discussion as to the
safety concerns and the issues with that whole lot.
So we're going to tackle the softball field
parking lot and memorial field and the sinkhole remediation.
That's these parts of the proposal.
And I have new numbers. I'm going to have to tweak this a little bit.
He did give
some updated numbers to do bid documents and some construction management.
Where the sinkhole remediation
front in the building or in the field.
No, it's.
So if you go beyond the track and field
facility there, it's
the retention area right beyond that.
Oh, at the Niceville.
We have some we have some drawings
that we can provide you, but it's the large retention area.
It's like behind Plaza right.
In the numbers came in pretty significant
when there's what they're seeing are six or seven sinkholes in that area,
but they can't get a full assessment until they start to drain.
So but they're thinking that this is going to creep up
close to could be anywhere close to 300,000.
I have to 50, he said, based on what they saw
the other day, just within an initial assessment
that expect the high end of their estimate.
So we're probably looking three plus.
And this is the area
that's always flooded that the bridges go across to connect the community center.
Doesn't that all leave?
It's usually overgrown with weeds.
I thought the runoff from like by the exit
comes down into that area and that's what this is.
Yeah, this is actually right by the the lacrosse field, the soccer field
like across the road in that that larger area there, the larger retention.
Well, we always have sinkholes that pop up in that grass
field hockey field next to the baseball field next to it.
Always.
It's probably they're probably all connected.
You're talking the practice field.
The practice, the grass practice field,
grass practice field, very high due to turf.
Always has sinkholes come up on it? Correct.
Especially on the one end.
They have that area as an issue.
So when I got here, I started here in January,
and I know that this is one of the first projects
I heard about was that we were starting to have is starting to have a sinkhole.
You know, it was a growing problem at that point.
What they saw last week was it has changed significantly
just in a couple of months time. So it definitely is.
We have to move on that piece of it.
And Derry Township has been knocking down Mr.
Anderson's door, asking him, when are we going to do something about it?
Because it is a township issue with with the code.
Unfortunately, we are always pouring money into the ground in this area.
Pretty much. Always.
It's a quibble
and it's like
there's nothing
they can do to prevent like the sinkholes.
I mean, they can't do any kind of
excavation or anything.
The opposition can start the work, the better the chance to stop it,
because at this point now, if it goes much further that we will have
the basement, the whole edge will be eroded.
Is that step? Yeah.
Yeah.
So when you look at the retention area, based upon the amount of flow and time
that it settles out so that you don't have the full rush of water
going into the into the wastewater system.
So like you can't use concrete to fill the holes because the whole
purpose of that is to filter down through and take it away naturally.
So it's kind of a time and volume calculation that they do they can put.
So what they have to do is what you talk about
is putting larger rocks to fill the void than that.
A filter.
Basically think of like burlap
and then smaller stone on top and then about four feet of ground.
And then what that allows is for it to filter away.
The problem is that also continues to wash away
just in this space that we have going through the campus.
That was. My question.
It seems like it's like a Whac-A-Mole.
We're just constantly, you know, so are we filling the ones like,
you know, in the practice field where on three teachers are fixed?
Yeah.
And then there was one in the elementary school years ago where the band
under the band room and there's one in the middle school cafeteria.
Then that after the flood, remember, they had to rebuild that.
Like, it's constant.
That's that's what I'm saying. Like, I just yeah.
You know, I think that that's just
very consistent with all of the area.
And Derry Township is, you know so sinkhole prone
I know like Palmyra experiences significant ones.
If you remember, like for 22 were shut down for months and months.
But I think it's indicative too, of just all of the runoff issues.
And, you know, as development keeps happening.
I just didn't know if these, you know,
the people that we are pricing out to come in and talk.
I think I think what you're asking.
So while they're out addressing one, yes, they do geological work.
Around that area to.
See if there's anything else we need to know about.
So like when they when the one appeared on the practice field, for example,
they dug that all out and discovered throats.
Going in all kinds.
Of different directions and so remediated
all of that before they closed their back up to prevent.
That opening up on what I was asking. Yeah.
So anytime that.
One does open up, there is geological work done to see.
What else is happening around. Here. Right.
And what is the insurance coverage on sinkholes when one appears.
Where you have a $50,000 deductible?
So I don't know.
So that on that 250, I don't know on ground what is covered.
So that's about as a question as well. Okay.
Because we are currently waiting still waiting for
a reimbursement for the middle school, but we will get reimbursed.
I just don't know what to what extent at this point.
But add to what you were just saying about the surveys.
So we are authorizing them to do surveys on all these pieces of property.
The baseball field parking lot as well.
Just to while they're out here,
they do that baseline survey topographical survey work
so that we're prepared for anything and just real quick, do we like
do we give out numerous bids or do we just go with one
this one in particular is service work.
So this is not the bid for construction, This is just the service to start.
And they will do those bid documents that we had talked about in ad Hoc.
And then we will
put it out to bid for the actual construction work.
And that usually is two three
and it'll be the fall til we get going on the parking lot piece of it.
That's the sinkhole remediation depending on timing and what we can get back.
If we can use costars, vendors for some of that work, that would
give us the ability to move more quickly.
But we would still get quotes from three coastal vendors.
Or could just as a point of reference
to typically for the bid process, like it was like when the sinkhole
opened up at the middle school. We
that's considered an emergency situation so we don't have time.
And so typically anything over $25,000 for a project has to be bid out.
In those situations, That condition is waived
so that we're able to do it because it has structural and safety
issues for the building.
So those are the because I do want to update
did Esther Caldwell did share some updated construction numbers.
I want to make sure to get
a better estimate. I put 100,000 in here.
I think that's probably a little light for what that's going to cost us.
So I will update that with some new numbers
A high school gym floor needs refinished.
I believe that's been an issue for a while.
So we will be looking to get quotes and have that done at some point
when we can get in and close the gym and do that sometime.
It might not be till next spring summer, but at least have it on our radar
so we can be contracting with vendors and get them scheduled.
We had previously had a turf field on for the high school.
Was that moved off of the Capital Reserve
projects.
It was moved off of this. This coming year.
So it's it was like out there a year or two years, 1920
I think that it was on needing to do and we thought we could push it
one more year, but we're going to keep going.
We have it tested yearly and we're hearing 1 to 2 years yet on it.
Okay?
Yes, sir.
Mike, manager of our aid, did have someone come out and look at it.
So we feel pretty confident in a year or two.
Okay, great.
Thanks.
Okay, then the concession concession stand addition again,
something talked about for a long time bringing that back.
We talked about it in general services.
We have a quote again, this is just for the service,
the drawings part of it, the bid docks, the construction management piece of it.
So the 18,003 90, that would be Pamela Hamill, Associates Architects.
They actually started this project with with the board and the district
probably back in 2018.
And it kind of got put on hold.
Well, it was the bids were rejected at that point, COVID hit.
And so now we're bringing everything back through various conversations, decided to
go with the
probably go back to
go back to basics and just do the concession stand addition
anything else on that so that we would like to bring
that contract forward to get that work and we started and get the drawings
and get everything set so that that can go to bid as well.
So we would like to have that board approved in June.
Let's talk about it.
Okay.
And then the estimated cost.
So that's probably $250,000.
The big thing that's on here coming back is the Granata Building exterior work
for anyone involved.
Years ago, the in 20 1819, I believe it was time frame,
a bid was done and it was all grouped as one.
It was masonry work and roofing project and windows and doors.
The bids, when they came back, I think probably sticker shock cause
it was very significant expense, so they carved it up into pieces.
At that point, the roofing was the most critical,
so the roof work for the Granada building was done, Everything was put on hold.
Again, COVID hit.
And here we said So bringing it back.
What is most critical at this point is we have leaking bricks
and we've been talking about this. So we wanted to
start talking to architects to try and get them out here
to start giving us proposals as to what this looks like.
Looking back to what I could find, the cost of that masonry work
couple of years ago was estimated at $2 million.
So I'm
thinking it's going to be $2 million, but I just put $1,000,000 on
pretty much just placeholder here.
If we can get any of this work done, this will be a spillover project
into future years once we know better how much it's going to cost.
I just wanted to have some idea of some cost baked into the 2223 plan.
And some that would also be funded by what was remaining on the bond
issued for all of that work. Right.
It's basically right now in cap reserve total funds, we have $5 million.
So that's part of what we need to be to you watching.
The only other thing that can
come out of cap reserve from a vehicle standpoint is propane busses.
There were busses.
I mean, each year I think it's been traditional
that we budget for six propane busses because of supply chain.
We did not get any in this current year, so none have been purchased.
So we're sort of on a delay with that sort of at the mercy when we get them.
I'm still leaving six on here so you would like to
of transportation would still like to keep six on here
that we can try and replenish those as we can get them.
So that said,
probably at the end of this year we'll probably end up around estimating
$5 million left in cap reserve at the end of June.
The cost of these items at this point are almost 2.7.
We're putting $1,000,000 into it from general fund
that's still is getting is down to that close to $3 million more.
So I think that's an important number to keep our eye on as we go forward
with these. We still will have significant needs
in years beyond this year.
So and you had said and general services, I heard you say that
we did not do the $1 million transfer last year, last year.
So we really have to do it this year and continue to do it.
And so the $5 million actually that takes into account
that we will be bringing in $1,000,000 from general fund in this current year
in the 21, 22 school year.
Kathy's comment.
Why do we need.
Why is it so important to have a.
Million in this year alone?
But that's how we usually do it.
We just didn't do it last year, right, because of COVID?
No, no, I get that.
But like, is there a reason it has to?
What is the reason?
It's just so we have good standing or.
We usually keep around 5 million in a cap reserve just for ongoing projects,
ongoing building maintenance.
So we want to like she saying, we're going to end up a 3.2.
That's kind of low. Okay.
It's kind of like our savings account for the buildings.
And I understand that. I'm just we don't.
Like I said,
when we're talking about raising the taxes and everything, I just want to know how
it will impact our ability to sell loans and get the debt structuring
sort of planning for June 27th and knowing that we've got
the needs for the elementary study coming out.
Something's going to, no matter what comes out of the elementary study,
we will have significant costs to put into a building that said
planning with Mr.
Luber daily with Raymond James to come in here and start laying out
what our debt structure can look like again.
But we have to be very mindful of that balance
because that is one of the things we'll need to hear from bond ratings
that they really look at is your reserve balance and your sustainability
and ability to make debt payments.
So if that keeps going down, that does not bode well for us making payments.
I think the other important thing too
is that the Capital Reserve Fund is for one time projects for,
you know, for our capital needs.
And so when we look at the bond rating aspect,
if we are getting below that
$5 million mark and something comes up and we don't have the funds to be able
to hit those emergency things which, you know,
something like the turf field, you know, that a couple of years ago
was something that was supposed to be done but ended up being delayed
because we weren't going to be making the transfer
and have other needs to turn to.
But without those fund balances, there
as our kind of catchall for those we have to go to bond for
to be able to to have access to capital for these projects.
So when you do that,
there are significant costs associated with it as well any time.
So we try to plan very carefully on when we do any bond financing,
one for the time's sake of it, but also just that cost associated
because you have to have a bond rating report on each time
in addition to all of the other fees.
So the less
often we have to do that, you know, on a
urgent need basis, the more fiscally responsible
we can be.
Do you want us to approve the cap plan or we just this is informational.
This is informational.
We will come bring this back to the full board
in June for a board approval of the CAP plan for these
projects.
As stated and estimated that it's going to cost us
again, I will update the year two or anything else that we we know
between now and then.
But this would be on the June 27th agenda at that point for approval.
Okay. Thank you. I was comfortable with this.
Yeah. Going forward.
We have like 35 more minutes and a lot of things to get to.
So next is a milton Hershey
Medical Center update on the lease of the Granada Building.
This is just a a an update at this point.
I don't have information
or really any financial impact and I know it been discussed the
I did get notification from the med center that they will be leaving
at the end of October when they release this one year extension is up. So
that will give
us probably some motivation to keep moving on.
What's next with the Granada Building maybe coming out of the elementary study?
There's there's options, but it's something.
So that's something that will be
a point of discussion through ad hoc General Services
Finance next year as to what are we doing with Granada.
Yeah, that's a big deal.
So families and there will be,
there will be a financial impact because they do are paying for
expenses to be there, which we will have to incur at some point
not full blown expenses that but we will have expenses
just to maintain the building that we're not currently paying for.
Right. Okay.
But we do have funds in the in the
expense account that
has come through the
lease payments.
So there is a buffer for maintaining
the cost of the building financially without a tenant in.
The the as of June 30th, 21.
And I have not looked at that Again, this is just kind of came up.
I want to do a little bit of financial analysis on this.
We do have like 1.1 million at the start of this year for Granada.
Now we have costs outside of that.
We still have cost of the building, outside of what we get
from the bed center, but we still probably have $9.
Yeah, I think for any new board members
it would be a good idea at some point to tour the building to get a look at it.
There's, there's the gym.
Then there's we're talking about building
a which Penn State has might not rent its offices.
Then there's building B, which is in the middle. It's vacant.
It's the old middle school, and then we're in building C
and this we take the first floor, but we rent the second floor.
So just the we're it's very unique to our district
that we are landlord because this building was gifted to us from Milton Hershey.
So you know, we take care of it but and it has given us
some rental income, but one of our biggest leaders is about to leave.
So I think it's also important, though, just for new board members to know that
with the med center in there,
through room one who previously managed that building,
there is a long term agreement in place that so long as Penn State
health is the tenant room, one gets 50% of the rents collected.
So we're only actually getting 50% of the market rate rent
in addition to the expense rent.
So from a, you know, overall financial impact,
we're not losing 100% of the rent value
because we weren't receiving it.
Okay.
Any questions about that? We can.
I would definitely need to circle back on that.
But that was just informational
school, real estate tax
collection change to installment payment due date.
So this is something that came up
at the tax collection
board meeting a last month.
Perhaps
Maria, Mimi and Donna Cronin were
the board members present at the meeting.
So what is our current
structure is a little different to me and I don't think I realized it.
So the issue that's been coming up and Wendy
Mel Haug, who runs the tax collection bureau, brought this to my attention.
And so we had a conversation during the board meeting.
Our current tax collection periods are by August 31st,
you get the 2% discount or you can decide to opt into the installment payments.
Currently the installment payment plan then.
So installment one is 831.
Installment two 930 Installment three 1031
However,
it was happening that if anybody missed
their September installment payment and this is the way the law is written,
you must comply, apply a 10% penalty to a missed payment.
So they would bring in their installment payment in October, which is still sort of
in place, period, and have to pay 10% penalty on installment
number two, which is kind of a hardship in an installment plan really isn't.
That's not giving any taxpayers much relief
in a three month window when really we do have a six month tax collection window.
So I know this from previous discourse.
I know during COVID, a lot of schools
toyed with changing collection periods, and your set, your mandated.
So from July 1 to 1231, what you do in there, you've got flexibility.
So we've had conversations just to verify that coming from, you know,
with our legal counsel to make sure that those options are still in play.
And as a board, it's part of the annual tax
levy resolution that you will be passing in June.
So what we can do instead of the current schedule is actually bump it out.
So the 2% first installment doesn't change August 31,
then nothing happens in September
and you have your second installment, 1030 one third installment, 1231.
So it gives taxpayers a little bit of extra relief
to bump those payments out should they choose the installment paid.
That's the thing that.
We're allowed to do. Yes,
we write that.
We write these collection dates into the
the resolutions that will be board approved.
Just out of curiosity, the base tax payment
taxes are due by December 31st,
but you get a penalty if you pay after October 31st.
And 1031 is still part of you could do that.
I think that's a change.
1031 is the full payment.
If you don't if you don't do an installment payment
in August, then you're automatically
base taxes due in October.
And then at that point, anybody that doesn't pay base
by October 31st, they will have penalty November, December.
If you're an installment, you do not have any penalty until
it gets turned over to the county.
Should do not pay.
Two If
you pick the second, if you pay the first installment, second and third,
you do not get it says 10% penalty underneath.
That's not for the installment people for installment.
If you don't make your second installment payment by 1030,
well then then that you still have a penalty on that second installment.
But that would. At that, but not on the full.
So long as you pay by the due dates, you don't get a penalty for installments.
Correct.
And that's actually giving people an extra month.
Right.
So instead of September 30th.
So yeah, an extra, extra two months then.
But a two. Year,
I mean I really like this, especially since we're raising taxes.
Do we know what the
like what at what percentage
tax payments are done out of escrow from a mortgage company versus
by the taxpayer themselves because most bills,
if they're going directly to the escrow and are getting paid out,
they're getting paid in that 2% discount period.
So I'm not sure from a collections perspective
what that really means for us.
It from a finding.
Yeah, I don't believe the district is really give
well mind We'll have a financial impact for it from a collection standpoint
pretty much by the end of August either
that they've opted into first installment or paid
2% or over 90% collected at the end of August.
So we're not dealing with a huge number or, you know, a huge part of the tax base.
This just gives a little bit of flexibility to those people
that might need it to stretch it out a little bit.
So for 10% of the people, they can stretch it out.
Yeah. Or if they get and.
I don't know that
not having my own tax records here,
usually I'm able to play with my, you know, play with the date a little bit.
That's something I, I had asked at least for how far collect
you know what percent collected are we at that point August
so there's there's data I would like to get my hands on to understand it better.
I just like from the standpoint of giving
a little bit of flexibility this this is an option, a way to do it well.
Is there an option that we can collect our own taxes?
We don't have to do a tax collector?
Is that just unique to Derry Township?
And it's unique to they're not Well,
some do outsource it like like a keystone or a.
Yeah.
Bruckheimer So there are outsourcing options.
County could could do it.
So we are still actually would like to at some point.
Well the township does use Keystone.
Well but not for property tax.
We use case right, but not for property tax income.
We do it for earned income. Yes. So there's there are
options.
There are different ways to look at it.
They would still collect under whatever payment plan we established.
They would still use those dates.
Do you?
So this will come to the board for approval.
If coming out of here, if everyone agrees and yes,
I will make that part of the annual the tax levy resolution
as part of the final budget. Okay.
And you sound that it sounded like at the tax collection meeting,
everybody was in favor of it,
including Maria and Donna, who were there as board members.
So they they said, go ahead, do the research,
see if that's something that we can, you know, that we can do.
Again, I'm pretty was pretty much familiar with those. But.
831 1031 1231 dates and I thought we had a little flexibility.
So I want to hear from from legal and those he did confirm
that we're able to make this change.
So that what's not fair to get a 10% penalty if you paid
your second installment when is not really due until October 31st.
And I don't know if the last couple of years she just said
she's just she had never really had a problem with that.
And all of a sudden there's just a couple instances
that it came up and it just was something that she at least wanted to bring forward
that did we ever think about this and like, oh, well,
maybe we should think about it.
So I think that was the the conversation at the table that everybody sort of agreed
it would be a good opportunity to look at making a change.
Does anyone have any questions?
I just have a question for the future.
If you're able, you know,
to get more of that data, I would like to just see the breakdown of
percentage of of who utilizes the installment
when things are actually collected, because I know we've had a lot
of conversation about the tax collection in general and
keeping the Derry Township Tax Collection Association
versus looking at the county or trying to understand that.
And I think that those numbers would really help to,
you know, kind of reinforce that because if the installment payments
not something that is being utilized but is obviously heavy
administrate of me,
I would just like to be able
to kind of process it better. I,
I think I need to go sit with her and kind of see what
I can get my hands on and really look at that data.
I yeah, she sent me a few pieces of things, enough just to say again.
I just, I was comfortable moving forward, bringing this forward to the committee,
but I would definitely like more data.
I did want to follow up on the reassessment piece.
I did
reach out to the Property Assessment Office, Dauphin County.
They do not do.
They don't drive it.
It comes from the commissioner's office.
The last time it was done in 2001, the county Assessment Office
has not heard any chatter about a possible reassessment.
So I think that's a commissioner conversation if we want to start
asking for that. So it's a county wide.
There's nothing we can do short of them sort of saying go.
And it would it's going to take a long time for that,
because I know even in Lancaster County, it took several years for that until
they were actually able to do it and make it happen.
So it's a quick question.
Would this then be put in for this year for July one?
And then how do people ask.
About.
Doing the installment?
Do they just automatically do it with their receipts?
They get a tax bill that gives them the option.
Okay. So as long.
It comes with like tear off. Yeah, no, no, I know.
And because I get them, but I just because they were obviously getting penalized,
I just wanted to make sure that it'll it'll look exactly the same.
The dates will just be different and we,
the dates will just be different.
Okay.
I would if we could see from a board it's obviously a full board conversation,
but about making a request regarding
the reassessment, I think that given the current
housing and market environment with a tax increase and making sure
the way, you know, schools are funded primarily through the tax base
that we look at the equity ability of of that,
I know it doesn't end up ultimately changing our tax dollar amount because
like our revenue because it rebalances in the village would go down based on it but
given the difference between the assessed values
and market values,
not having that looked at in over 20 years,
I think that there's a lot of disparity.
And so that's that's why I did I did want to ask them
if they had anything to do with it, and they do not.
So they did direct our inquiries to the county commissioners.
They're not going to want to do it.
Because some
people would be, you know, some people with their taxable accounts will go up.
But when you have if someone's been in their house for
20 plus years and hasn't done anything to do that,
but their homes worth four times, what another
home is, and that home
that's worth a lot less is paying one and a half times the amount of the tax.
My mom lived in Palmero when they did it.
It really negatively impacts the taxpayers when
especially when there's increases.
Any for the discussion on this.
Okay.
We'll move on to monthly update 2122 General fund revenues
and expenses.
Wondering if we should just go
to some of the budget pieces.
I updated it.
I did do a projection.
I've always skipped the monthly
and then we can focus on some of the pieces that changed.
So if we go to the next one, the assumptions for 2223 final budget.
So I think all the
next documents kind of take into account where we are currently.
I did make updates to some revenues
projected.
It's not attached.
I'm sorry Dickens
at the time with Agenda Manager this afternoon
was not either doubled or not doing it
at all.
Let me.
Did the attachment not show up. Now?
So I'm going to I'll email it to.
Will you printed for us right.
It's here I did.
Yeah you printed it for us we just can't see it on the screen
for for anyone like this is an advisor who's watching.
That's why if I, if I can, I can forward it
and have our email you.
Just for everyone's edification.
We did get an email from a gentleman.
Maybe 2 hours ago.
Saying that they are having this problem.
Across the. Board. They're aware of it and.
They have made it a high priority.
You mean that we tried to attach things they didn't attach.
Or they attach in the wrong space, or they attach three.
Or they or they're attached and then you come back to it later and.
They're gone.
Okay. It's a thing that's happening.
The general services one has has multiple attachments of the same documents.
I couldn't get make them go away.
And I didn't I didn't realize this one.
So I apologize.
So the assumptions for 22, 23 final budget.
Well, it's he's able to pull it up.
So looking at this, the tax increase of 3.4,
I did update and I realize I did not
copy this one, but I updated so we got an updated county roll date on May 16.
So I did make adjustments for that.
That gives us and and year to date increase of 0.69%.
So that does give us a little bit additional revenue
just from that standpoint.
The median assessed value is
think before we were talking about 161,000.
The new median assessed value is 162,200,
which at 3.4% is $104 to the district are to the taxpayer.
Rather,
I did want to mention to the one thing the Taxpayer Relief Act,
the Homestead exclusion, that if you've applied for that on your property,
was super heavily funded at the state level.
So we actually are getting $160,000 more money now.
It's no impact to the district because it comes we get it as revenue,
but we give it back on the tax collection piece side of it.
So we are actually where as last year we had $672,000
this year we actually have $838,000 to give back.
So that takes the exclusion.
Now, it's not final yet
because there are some properties possibly changing that over the next month.
But whereas last year the exclusion amount was $124,
$0.75, this year will be around $156.
So that's actually everyone will get $31 additional discount
on their homestead exclusion.
So that's I'm still talking about.
As to the other assumptions, still talking, the trust at 5%
did put $700,000 in for the pilot.
So that is now included in these numbers.
The again, are still pretty confident.
The trends are still there, that
they're on track to be able to make their debt service payment.
In November, we will get a 700 approximately $700,000
pilot payment in December.
And then nothing else changed.
Just I wanted to touch base on this couple of assumptions that did change
about
the Esser funds.
I have
tons of people asking me, you know, where did the 4.3 go,
what it is going to salaries over two years?
Then what are we doing for salaries after that?
That's conversation for for this next budget season.
So once we get on the other side of this, that is something we definitely need
to start looking at and planning for.
And I think this was coming into this budget with
with the tax increase, with the 5% getting the pilot back.
This will be a reset year to start building back some of that,
you know, getting back our revenue base
and allowing us to start really looking at expenses.
And if I understand correctly, the reason for the tax
increase was in anticipation of what's going to be happening.
Those Esser funds are or
they're diminished and gone, correct Right.
It it was to bake it in this year because we have so many big things coming.
I mean we need it for next year.
And you're ten years after that, right.
And we were you
it wasn't discussed to do 2%.
This year.
One and a half next year.
It was nothing like a
slower step into a tax increase.
Were all the projections when we went through the negotiations
and contracts and stuff showed that we needed to do a higher
in this next year after not doing it for two years.
So it doesn't seem like a good idea to go lower this year.
And then there's an unknown about what we could even get passed for next year.
Why? Because we're not there yet.
I think just to step back,
I want to be careful from the when we speak in our terms of baking
and our our budget is driving the need for having that.
And it's not based on extraordinary you know, lavish things
that have been added to the budget that weren't previously in the budget.
From an expense perspective,
the medical trend of, you know, a 12% increase on premiums
is what's driving a huge part of that salary
increase that is just not catching up the as there funds.
I think one of the things we talked about in this committee
since we got the first one
in 2020 was that it can be deceiving from a budget perspective
receiving these funds because these are not ongoing sustainable
revenues that will, you know, continue to to hit our operating budget.
But when 75% of our budget
is salaries and benefits
and 12% increase,
you know, happens on the medical premium side, that that adds
a pretty large amount combining with not having the pilot payment
and coming off of a couple of years of really
huge losses from the amusement tax revenue and those types of things.
We're fortunate in the sense that we have the trust
and that we had the capacity to be able to increase the distribution
for two years in a row, to be able to try and offset that.
But not having increased our real estate
tax revenue, which is the primary local source of funding,
you know, for a number of years, the only time in the last
five years, I think it is that we've raised taxes
was specifically for the increases related to full day kindergarten.
We did the early retirement incentive
in the 2020, 2021 school year
to be able to try and
not fill some positions.
So we have seven positions
that were still not filled
to this point from a budget impact perspective.
And when we looked at that in the fall, we knew that that was not something that
from a financial perspective, we would be able to fill those positions.
So I think as I've gone through this and I think Mrs.
Seger could probably attest to it, I've been very much against a 3.4%
tax increase this whole time.
One, because I think
the time, you know, the economic times that were in are difficult,
but inflation is hitting, you know, us as well.
We heard at one of the last Finance Committee meetings that we've depleted
all of our supply stocks for for most of our building supplies.
So that has to come back.
So there's really not a lot of areas that we can cut.
And so when the Act one index is set at 3.4%,
and that's what we're raising to this year,
we haven't done it in so many years that it's not really baking it in.
It's making sure that those numbers are there.
As we look ahead, you know, and what that would do.
And hopefully we'll be able to continue without it.
But just looking at some of the other districts in the area, we're not unique
in the sense that we're having to do it.
Middletown
Act one index is 4.5% this year, and they're increasing
4.5% lowered Office 3%, Premier is 4%.
Central Dauphin is not experiencing a tax increase this year,
but they did experience a 3.6% increase last year.
So when when we didn't raise taxes last year.
So we're kind of at that point
where we have to make sure that we're not going to get into,
you know, kind of fall off that financial fiscal cliff in the next couple of years
and really be able to sustain the programs and services that we offer.
And that would make Derry Township what it is.
Yes, when I say baked in, I'm also thinking of those increases,
plus the fact that the cap reserve is going to go down to 3.2
and we took money out of the fund balance and we haven't put that money back
and that money really needs to go back.
That was a kind of our rainy day fund and we don't have a plan for that yet.
So it there were there and then the Esser funds will not last more than two years.
So there's a lot of things coming that
I mean and just doing this budget for so long, we've always tried to do
as little as possible, but I feel like it's time that we just have to do this
because we've taken so much out of our savings.
A couple of years ago.
That we've never seen this low before.
And I don't want to continue forward and I don't want to cut programs.
Nobody wants field trips, cut, nobody wants activities, cuts.
People want a certain level at this district.
They want it the same or better in my mind.
So I wouldn't want to see anything get cut.
Well, I. Agree with that.
I mean, and I agree, you know, it needs to go up and we can all see it.
My question was just since we have the Esser funds
over the next two years, you know, because of the economic times right
now, inflation is crazy and it's going to get really worse over this next year.
And it was just a matter of saying, can you do half this year,
half next year, you know, that kind of thing,
to kind of step up for those people who it's really going to impact?
I 100%,
you know, understand that perspective and that logic
for me.
You know, if I'm taking off my school board hat and speaking as an individual
taxpayer, I would much prefer that as a single income household.
You know, I completely get it.
I think we're all impacted, you know, by that.
So I certainly feel it.
The way I view it is if we don't do this now, we would be
next year potentially looking at what we would have been looking
at two years ago without the Esser funds and not having anything to fall back on.
The other thing too, is that last year,
the economic impact with the pandemic, we made a very conscious decision
to reduce fund balances and not increase taxes.
We didn't know where we were going to be a year from now.
We don't know where we're going to be or we didn't know then where we would be now.
We don't know now where we would be then.
And so we have to do what we can,
you know, with the least amount of impact.
The one thing I did want to just bring up, because I don't think that it's talked
about often enough, especially for folks who are on fixed incomes
or widowers or who are in a lower
income level.
The there's a property tax rent rebate program
that I don't think enough people know about.
And if there is a way for us to be able to communicate that or when we publish
the budget or do anything, if we're able to reference that it does.
It's a tiered plan, but it does offer up
to $500 in tax rebate for people who qualify.
And I think that for people who don't use who have not taken advantage of that
previously or didn't know about it, it could help absorb this impact right now.
And I think that there are conversations that we can have in the future on plans,
because the last thing we want to do is
increase and tax people out of, you know, their homes
when all of these other burdens are present.
But inflation's, you know, happening here as well.
And we want to be able to maintain continuity of education.
Do you have anything else with the the monthly or the
for the final budget, though?
So if we look at the
this is summary,
the Derry Township School District summary page,
I did make some changes to revenues.
So the following page
the Derry Township School District revenues
showing the final budget for 2223.
I did put the summary up. Can you refreshed?
I loaded all the documents
shows online that they're loaded there.
Can you go to the summary page, please.
So on the on the summary,
if you if you recall before we were showing for the finance
for the proposed final budget, approximately $675,000 negative,
adding the pilot back and having a little bit of an increase in
the tax base from the county,
we're actually able to show 20
about $28,000 profit to the good.
So that would help us balance our budget, making that change $100,000, putting that
back to 700,000 on the pilot does balance our budget, did make a couple of changes.
Lots of things. I did look at some local so I just made some tweaks.
It's not too far off of where we were before.
A couple of local revenues are up.
As I've been saying, I'm a little concerned about the state.
Everything I'm hearing is is pull that back.
So I did decrease that back down
to sort of an average over the last five, five years for for the state,
if anything that would just help us to the positive later on
did not really make
any other changes again still pulling in 5%
from the withdraw from the trust.
So nothing significant has changed in other than that pilot payment.
That's the biggest change.
So on the
if you can, you go back to the summary please.
So on the summary page I did and again remember this, this is projected.
So looking at 2122 where we were supposed
to come in at like 885,000, I think because revenues
have come in a little bit stronger than we might have expected.
I am at this point thinking we might end up, you know, over $1,000,000 to the good,
which will help offset that 1.2 million we lost last year.
So it's sort of a, as you said, a replenishment of fund balance.
So that's where you would
put that money at the end June 30th.
It would be part of the general fund You.
Keep in a general fund.
Unless there is there is a conversation to do something different with it.
Okay.
There will be a board vote in June basically that allows the board
to make transfers as needed as part of the year end closing process.
So those those decisions can be made later.
Once we once we finalize and get ready for audit.
And we have is it 30 to 60 days after the fiscal year closes.
As part of the audit? We're just at the I.
Thought we always used to be able to approve, like in our July meeting
year end things.
You can at any point in time up until the time that you're closing your audit,
as long as the resolution in June will authorize those changes
to happen at some point.
And I think, you know,
obviously in some of the budget areas
such as the,
you know, the tuition increase, looking at that.
And I think that that's going to be a really huge part of the
the planning conversation for next year and seeing what we can do to mitigate
that.
Obviously, with not having the pilot payment for several years now.
I mean, there's over a million and a half, almost over $2 million
that we haven't had.
But I do think that as we look ahead and how do we try to stabilize
and make sure that we're not needing to raise to the index in future years,
we need to really dig in on some of those areas because those are
some of the ones that we do have a little bit more ability,
you know, to control or at least proactively try to address.
And I believe there some plans to start getting some having those conversations
as to the whys and how how might you be interested in coming back.
But we
knew and have had the discussions that this year was not the year
we were really going to be able to address this because
of where we've been with
virtual education and, you know, the ins
and outs of the pandemic and trying to get back to where we were before.
It won't be a switch, a big change all at once.
It so what we can hope for is a slow change. And
to the pilot, you know, it's positive to get some kids back
but you know that
that would help it and those those expense areas just this next year.
And again in my position being that there's a lot of areas
I really want to dig deep on and find, you know, see what's driving it
and what can we do and have those conversations.
And it is 6:00.
Anything very quickly about
the contracts that are attached?
These contracts
that you have attached here,
these go to the board after this meeting, are there.
There's two schedules.
One is to. No. Okay, Yes.
There's two schedules.
So you and the board should have both of the contracts.
Tonight's documents are attached to the agenda.
The June 13th ones will be forthcoming.
I believe the board has those in there. Yeah.
This is awesome.
And just four new board members.
We never got this before.
I don't I don't believe we were following a correct process.
These contracts should have been coming to the board.
They were coming piecemeal. Right.
But not as organized as this.
So I think it's good for the board to have awareness and the
awareness and the
approval of what we enter into contract fully.
Yeah, that's it's very good.
And I think this just gives a better perspective on what breaks down
some of those
some of those expense numbers
when we look at them and really understanding the services that
that we're using that make up that component of the budget.
Okay.
Is there anything else for the good of the order?
It is 601
Anybody here for public comment?
There is a handwritten way.
I'm trying to get to participants
attendees. Okay.
Do you want to go ahead and unmute.
Melissa Kaminsky You've been.
Given permission to speak.
Please state your name and address.
For the record.
Thank you.
Can you hear me okay?
Okay, Thank you.
Melissa Kaminski, 1518 Brookline Drive.
Thank you.
All so much. I really learned a lot in this meeting.
I'm really hoping that
that we can.
Think.
About maybe starting a bit smaller as as
some of the the members had already
already spoke about and just just kind of waiting and seeing
what's going to happen.
And there's a lot of unknowns and families are still really struggling
through this entire process that we're going through with that,
you know, the higher gas prices, the massive inflation, things like that, 3.4%.
Well, when you put the numbers together, it doesn't seem like much.
But and I realize with, you know, a lot of our families are still struggling.
So, you know, I'm just thank you for allowing me to comment.
I just think that if we could
maybe start a bit smaller and just kind of wait and see what's going to happen.
I mean, travel is booming.
People are coming.
They're starting to come back to our town again, just like nobody's business.
I mean, everything's full in this area.
So I think that we can expect to have a lot more
as far as the amusement piece and revenue coming in.
Again, I'm still trying to understand how this all works.
I appreciate everybody explaining this, but I would just really be grateful for us
to start smaller and then and then go up from there as needed.
Thank you so much and thank you all for everything that you're doing.
Really appreciate it.
Thank you.
Is there any buddy else who would like to comment?
Just raise your hand.
Okay, So I don't see any more comments.
May I have a motion to adjourn the meeting at 603
32nd?
Michael, to all those in favor, say I, i, I wasn't opposed.
Say now.
Okay. The Finance Committee meeting is adjourned.
Thank you.