Terry. What?
Don't we have to have three board members?
I'd like to call the May 26th
Finance Committee meeting to order at 4:06 p.m.
and let everyone know that the meeting is being recorded.
If we could start with Roll Call, please.
Just your name and your affiliation.
Either citizen adviser, school board member.
Administrator
Lindsay Drew, School Board member.
Kathy Sick or School Board.
Terry Singer School Board.
Joe McFarland Superintendent
Dodge First Citizen Advisory.
Like to measure.
Are you just borrower administration?
Greg Hummel Food Service Director.
Jeff King Citizen Advisor.
Elliott
Okay.
Thank you, everyone.
Thank you for thank you for joining us.
Jack and Todd
and I think Darby will be joining us.
And Kip sure has an excused and excused absence.
So the next item.
The question on my screen, it says practice mode.
Only attendees cannot join until you broadcast.
Okay.
Sorry.
Just switch that over.
Good.
Okay.
Next item on the agenda is the approval of the minutes
from the last meeting.
Anyone has any
proposed
changes or additions or corrections?
Otherwise, could I have a motion to approve them?
Some of which I can.
All in favor?
I, i.
Anyone opposed?
No, thank you.
Okay.
Unfinished business?
Pretty much.
It's the same three items that we discussed at the last meeting
just to get an update.
So we'll start with the Hershey Trust review.
Mike has indicated that he's had further conversation
with the current trust manager. And
Mike, I know you wanted to update us on that and anything else
you want to share with us regarding the management of the Hershey Trust?
Sure. Thanks, Terry.
On May 18th,
myself, along with
Brian Shanker and Tyler Braun from PFM, met with some individuals
from Fulton Financial Advisors on our trust and
prior to that meeting,
they had provided provided a written response to us.
That was a response to the report that PFM had completed.
So we reviewed some of the information on there.
And in that information it was communicated to the district that
the by Fulton Financial Advisors
that the investment plan or the investment policy
that we had, that they had shared with us
was actually more of a generic policy
and not something that could be, you know, essentially audited.
Back to you.
And that was
a lot of our discussion was
Fulton had some information, some good information explaining
irrevocable trusts and the relationship between the beneficiary and the trustee
and what
what Brian from PFM and Tyler helped me communicate to them
was what we were looking for was a vehicle or a mechanism to ensure
that we as the trust, as the beneficiary,
could have an understanding that the trustee, Fulton Financial, was doing
the best possible job that they could with the investments or with the fund
and basically with the information that we have currently
understanding that that that plan
is not unique to our district
really leaves us with little ability to really understand
or looking at what Fulton is doing in different ways.
So one of the things they talked about at that meeting was providing
us and us, including PFM,
with some better information
in terms of how we might be able to to get to that
or solve that issue, if you will, for this process.
The ability for us to provide some oversight
in terms
of, you know, benchmarks, meeting the benchmarks
or exceeding the benchmarks, our benchmarks are calculated
that email information
I actually received today at about noon.
So I did forward that on to Tyler
and Brian with PFM.
And their main takeaway from all of this discussion
and their main goal is just to ensure that they're providing
the best possible report to us that they can provide and
they noted to be able to do that,
they really need to get
that set plan from Fulton
so that there isn't miscommunication or misunderstanding
about how certain parts of the investment are or classified.
For example, Fulton classifies something such as cash as
and something like you noted, as an alternative.
And in the information, if you remember, the
the investments were essentially 65, 35
and 35 being in those alternatives, 35%.
It can't go higher than that.
It was intriguing to some that Fulton included things like cash
in that alternative, which isn't necessarily a proper classification
unless it's disclosed and of course, can be reviewed.
So after
our discussion with Fulton, I followed back up
in a different conversation with Brian Sanger at PFM
and wanted his thoughts on next steps and moving forward.
And really, he was adamant that getting the policy, the investment
is something that we can essentially,
for lack of a better term audit back to
or compare what's going on.
He said.
Without that, there's really little ability for us
to move forward much with Fulton Financial
because there seems to be a little bit
of a disconnect in terms of the communication
of what we would like to see and what they normally show the trustees.
So as I noted, Fulton Financial did provide
some some information actually today,
which I forward over to PFM for review.
But I think there's going to be
we also, during this discussion with Fulton
Financial, discussed communication
and the need for Fulton Financial to provide better communication
and maybe more constant communication to the school district
to understand
for us to better understand what they're doing
and for them to understand our concerns
as we move forward.
So that's the the update that we have at this point.
Be touching base with Brian Shanker over the next couple of days.
Based on the email, the information that Fulton forwarded to have a discussion
on how we would like to proceed, whether or not we continue
to try to refine communications with with Fulton Financial
or have a better understanding of the needs and the wants of the school district
and the committee in terms of the reporting needs
and things that we have to feel satisfied upon to be able to ensure
that we can ensure that Fulton is doing the best job possible
in what they say they are and they can do from there.
So that's all I have at this point.
And we look through the conversation from the committee on on know.
Obviously, we're going to review
the information that Fulton Financial provided with
with Brian and FM to really flush out of the information presented or provided
today was really any more helpful in what we were trying to get at
and see if we can continue
to refine what those needs and wants are
so that ultimately we can ensure that we are communicating
to our best possible ability, both from our side and from Fulton.
And then really determining
is is Fulton meeting the needs that we have
in being able to to provide some oversight?
I mean, that's the investment plan.
Mike, this as you said, it's a generic policy.
Fulton says it, but they can't show it to us.
They they
I don't think the problem necessarily is not showing it to us.
It's not that it is.
It's more of a fluid type of thing.
So if you were to say, what is the investment policy say
you should be invested in today, it would have a range.
And so they they can start to share that
with a little bit more understanding.
But yes, they as the trustee,
make the determination of how the funds are going to be invested.
And that's what their responsibility in this process is.
So while they obviously want to be able for us to provide us
with the ability for oversight
just with the way in
a revocable trust to set up, there isn't a lot of normally
a lot of back and forth between the beneficiary and the trustee,
how funds are met, the responsibility of the trustee
and Fulton Financial is kind of sticking us in the bucket
with all of their other irrevocable trusts and somewhat
treating us all the same
so they wouldn't have a specific policy necessarily.
Kathy for Derry Township School Districts and Revocable Trust.
They have a policy for all of their trusts
and in some ways they are
apprehensive in sharing all of those details
because they believe there's some of that that's that's proprietary.
And so that's why we were discussing
what are the ways what they share with us, what can they do
to ensure
that that that we continue our needs.
And Mike, I just want to make sure I understand.
I, I think I do.
But so basically they're saying that that it's their role and responsible
to decide how to invest the money.
And to the extent that they
so therefore, they have no obligation to
share with us
specific benchmark data and information
regarding what they were attempting to achieve.
That is correct.
We would their responses would be in that those ranges.
Well, we were trying to get to this range and
so maybe we didn't do as great, but we didn't do as poorly.
But yeah, they wouldn't
the way that was communicated, they really don't have that
that one set benchmark target.
I mean, it seems to me from
the presentation that we
had for PFM and click it,
that there was kind of, I would say,
unanimous
a viewpoint that they hadn't been performing
up to the standards of other similar fund managers,
if not against their own,
their own standards,
and that
we should probably be thinking about
issuing an RFP, which I know would involve
probably having to consult with the attorney general's office.
And to some degree,
I know to change the change
fund managers, we would need their permission and so on and so forth.
But I feel like Mike
personally that we know enough now
not to drag this out anymore
and to start talking about whether we want to issue an RFP or not.
That's just my feeling as one committee member.
So I'll just
leave that as my, you know, my observation to start off with.
Sure, Terry.
And one of the one of the pieces of information that that Fulton
shared with us and, you know,
PFM was willing to work with was,
I think at the very end of their presentation that.
Fulton I'm sorry that PFM made.
They noted that the benchmarks had failed to be met at the three
in the five year mark.
When looking at the information
kind of through Fulton's lens,
they do meet the benchmark at the three year level,
but we all agree that they don't meet it at the five year mark.
And this was another thing once again, that PFM
would be willing to update the report to show something different
if the actual plan, but weren't necessarily willing to do it
just based on not necessarily Fulton's opinion,
but Fulton's take on on the calculation process.
But having said that,
I would tend to agree with you, Terry, that
I think Fulton is laying things out in a way
in which they they operate, and that's fine.
I think we're finding more and more that that might not meet
the needs that we have.
And so the RFP process may help us get to the point where we find a trustee
that's obviously doing the best that they can for the trust itself,
but also meeting the needs that we have.
Lindsay or Kathy.
Lindsay dropped off.
We're texting her right now.
Yeah, she said she lost her Internet.
She's trying to reset the router now.
I am in favor of going to an RFP.
And I think the important lesson that we've learned here is you don't
just take the least expensive thing at the top.
You need a deeper dive into what a
financial institution sets up their parameters.
What is their investment planning policy, what benchmarks
are they going to set, and how will we going to get updates like.
I think with Fulton, I mean, I wasn't here for Fulton,
but it seemed to me that they were the least expensive, I guess,
with an annual fee, but it seems to
think they're more important to us than that.
So responsiveness, benchmarking, update
the a plan
that we can understand and then and that they understand
the specifics of our school district, that it's an irrevocable trust.
But perhaps it's not like every other irrevocable trust out there.
So those are just some of my thoughts.
And I and I believe Kip's not here, but he seemed to be suggesting that
the last time as well.
He said it the last time.
So I guess the next step would be to
we would move to move this to the full board to.
Or do you need more preparation time than that?
Yeah, I just wanted to get an idea from my
what, what, what would the process be, Mike?
What would it.
Well, let me first ask before we do that,
Todd or Jeff, do you have any
any thoughts to share?
Just I mean, this is the epitome of making a meal out of a snack.
I mean, this is a this is an extremely painful process for something.
It's very simple.
So absent the performance,
just the hassle that's been involved with this,
I would absolutely move to an RFP knowing how somebody performed.
That's their business and they can tell us what other benchmarks perform,
but it's not right.
And again, this is simple stuff.
Very simple stuff.
Yeah, I was going to say very, very similar.
I mean,
this will be a painful process, knowing anything associated with the trust.
And as you said, you have to go to the AG and whatnot.
But this shouldn't be that complicated to get what you need
from a financial institution.
If you're not getting it, it's time to move on.
And Lindsay, I know we missed you for a minute,
but Terry and I both think we should move to the RFP phase, and so did Todd.
And Jeff, do you really opinion?
I fully support that.
Okay.
Mike, could you share with us what would just very briefly,
what would be involved with doing that and how many hurdles would be in our way?
I think what we will start the conversation with
with Farley Snyder and Bill Z,
they are the ones that provided some of the initial information.
When we first started to to question this or ask
that about what the process was that we went through.
And so I think starting with them
to to ask these questions about,
you know, what are the first steps in the process,
what are the types of the things that the attorney general would have to
what would have to be satisfied for the attorney general, if anything,
to to support us
in moving to different trustees?
And I think that provides us then the roadmap of how
we would go forward and move through the process.
Obviously, I'd like PFM
to as much as possible be part of that.
So I would probably actually, in conjunction with Bill
Z, provide some of the same questions to PFM,
but obviously relying more on
our solicitor at this point in that process.
Any any concern
and I don't know. I'm not in this business.
I don't know much about this business of managing this
kind of money.
Is this something that
well, this is a public meeting,
so it's being discussed.
And so
the trustee will well know.
And I guess we could expect
they would continue to
perform responsibly for us in the interim.
And so I think I answered my own question.
I think rather than less,
I guess I'd like people's opinion on
do we want to now
have a gate check for for, you know, every monthly
financial meeting, or do we want Mike,
you know, to proceed at all deliberate speed and just
let us
know if he needs any support or has any questions for us.
We don't want to just wait till our next meeting to,
you know, hear what happened and plot our way along.
Right.
We just want to move ahead.
Oh, right.
So Mike moves ahead.
Well,
to issue the RFP, we'd have to vote as a full board.
So, Mike, do you have some just some digging
to do on the next process?
So maybe just bring it back from now on?
Just bring it if we vote today to move to RFP,
do you just update is that the full board level maybe going forward?
I would agree with that.
Kathy and Terry, at this point in the committee meeting,
I think we still need to get a couple of more answers from from Bill
just to understand the process completely.
And so everybody, the citizen advisors and board members can understand
that completely and then kind of move it towards to the full board
for the approval of that RFP.
But I think we still have a little bit more discussion of of
honing in on what those wants and needs are.
I think we have a very rough idea.
I'm just not actually sure.
And I know Todd can help with that as well as some of the questions
to answer to make sure that we're flushing out the right information.
So I think approving the process would be the first start to help.
And then
for me, that would be the first update is to bring back what
what Bill Z says,
probably even get a hold of the actual RFP that we put out the last time
and maybe use that as a very rough template
to work from
in terms of putting that RFP together.
Okay. Thanks, Mike.
Can I have a motion then of so I would make a motion to
move that that
the district issue
an RFP to solicit bids to manage our
our trust going forward.
So moved.
Second.
Oh I made the motion.
Yeah, it sounds good. Okay.
Okay. All in favor.
And I know one oppose.
Thank you.
Just to be clear, then
we have a finance meeting in one month.
Todd doesn't come to the full board meetings.
Do you need a month to come back to this meeting with updates?
Because I don't know when it will actually be a motion for the full board.
But how do you want to handle that with
just getting everything organized?
Sure.
So at this point, since I don't really see other than talking with
Farley Snyder will have to incur any contracts or anything right now.
I wouldn't I don't feel the need to have it at the full board level
because I wouldn't necessarily want them,
although I think it's a good conversation to have thinking out loud here
to make sure that every board member is on the same page.
But I have to think that they would probably follow
the committee's recommendation at this point.
And so I'd rather come back to the committee and update with what
Farley Snyder has noted at that point.
Also, I'll have a better reaction to the information that I got today
from Fulton Financial.
Having provided that to Brian at PFM
and get to the point
where I think also we can
whatever PFM is comfortable with, with the information
that has been provided by Fulton Financial, with updating their report
and probably talking about those updates at the June meeting,
because Brian does feel there's a good need
to update the report to make sure it is it's as good as it can be.
But he also doesn't think that update will probably change too many minds
in terms of the information we've already shared.
And it's not going to have a dramatic effect on their report.
But he would he would like to be able to provide that.
So I think providing that update to those two things
will give us the tools we need to talk about that RFP
at the next meeting and maybe at that meeting, approve
some kind of framework that we can move to. The full board.
That sounds good.
So tonight, I'll report out that the the Finance Committee is recommending
that we move to the RFP stage and then I guess at a future
board meeting, Kathy, it'll have to be on the parole board agenda then.
Yeah.
So what what Mike's going to do is he's going to bring back any
updates to the report
and any further information on the RFP June 24th to the Finance Committee.
So in one month
we're going to make sure it has a proper framework
with the input of our citizen advisors and everything here,
and then we can send it to the full board if it's time at that point.
But usually, just so everyone knows, we usually send things to the board
in a board brief, let them digest it, then they vote on it at a next meeting.
So typically things take two weeks once it goes to the full board.
Right. Or wait.
I mean,
we don't never we get the information.
So I'm thinking it's not it wouldn't be if the RFP wouldn't
be approved until first meeting in August.
But we only have one meeting in July.
Right. Right.
So that's when they would get it and their board brief.
Yeah.
Yes, that would be the plan.
And then we the second Monday in August
that we would get approval from the or hopefully get approval from the full board
to move ahead with the RFP or to actually improve the RFP.
Approve it.
Okay.
All right.
Anything further on this?
Couldn't we have it come through the Finance Committee
and then be recommended from there to not do that whole process
if there's not a lot from the
approval to issue an RFP that would require deliberation
on the part of the board, if that makes the process go a little bit faster.
Just so we're not, you know, months into it.
Unless the board gets an update right after the June 24th meeting to vote on it.
And there's one meeting in the middle of July,
that's it's either you vote mid-July, you vote the first meeting in August.
Right.
But in if we had, Terry, include the update
in his committee report
at that second June meeting and then provide
the information in the weeks between then and the mid-July meeting,
then we would be able to vote to
move to RFP and be able to get that process started.
Well, that would mean sending a board brief, like
at an odd time.
Well,
either to send it the week of the board meeting
or for.
Right.
I mean, either way, unless I'm not thinking it through.
Right.
I think either way, Wednesday, it's going to be need to be in a board brief.
So whether it's approving
an RFP or approving us to proceed with an RFP.
Yeah, I say it.
We follow the normal process because there's too much going on.
So what's the difference between mid
July and August?
Other The only reason that's the way you can speed this up is and not have it
come back to finance and go straight to the full board June 24th.
But I want the input from Jeff and Todd.
Agreed.
Because they didn't.
Have the time, then leave it for the August.
I was just thinking through the process of, you know, how detailed the board
review part of it was, you know, if we needed to keep it that long.
Okay. All right. Thank you, Linsey.
Okay, moving along, then.
We're
the next item on the agenda is
just any update we have on the
status of our on again,
off again effort to possibly go back on it.
Go on to the National School Lunch Program at the high school level.
Greg, you have to share very
with all the unknowns moving into next school year
and everything kind of being put on hold and the carpet pulled out
underneath our feet in March, I really feel it's best that we move
to not go back on the program next year
with all intent though,
to continue the good work.
You know, I was meeting, finally meeting with students.
We were getting some great feedback from students
and we were beginning to lay out some training plans with the staff
so we would pick up those those items
when we can with the start of the new school year
and then move forward so that we can go back on the program
or the following, which would be the 21 school year.
That's pretty much where we left off the last time.
I believe.
I if I'm recalling correctly,
I thought maybe
you were going to.
One of the impediments was the possible availability of the the equipment
that might be needed to provide
some of the newer items.
There was some concerns about inventory that maybe we had on hand
that we wouldn't be able to use under the new circumstance.
I just wonder if anything has changed.
I know one thing that's changed from from a financial point of view, which I know
Mike had mentioned,
is that we may have some more resources
available than than we had anticipated
the last time we had this discussion.
Not going to talk at this meeting about why that is,
but we might have additional resources
available that we didn't think we were going to have available.
So that's potentially good news.
Well,
I don't know, maybe I just
thought my I'm not sure,
Mike.
I think when we were talking,
Terry, it was a lot of the uncertainty of
when when we first brought this to the committee.
It was the end of April
and we had just you know,
the school had just been closed for a little over a month and a half.
And so we were still trying to understand all the
what ifs and even what we were going through at that point.
We did.
And or we do anticipate to end the current school year.
And this is, I think, what you were thinking of, Terry,
to end the current school year
in a positive financial situation.
However, most of that due to being shut down
and really not spending some of the dollars
that we had planned to spend because we're not there.
So in terms of
additional resources from a general fund perspective,
I think we're already looking towards anything that we have leftover from
this year is really just filling a hole for next year that didn't include
that additional equipment.
So I.
Think Terry's talking about the capital.
Correct?
Well, and there's capital budget. Yeah.
Yeah.
That's I think that's still up in the air in terms of what's
available for for that.
Obviously, if things work out the way we hope,
there may be some additional resources there.
But I still have concerns in that we didn't.
We are planning to provide any additional if there's any further loss
from the food service
fund that the general fund would have to provide.
We are not budgeting to provide any additional help
to that fund and so that remains.
Part of my concern is, is that what if
obviously things could stay the same or even get better
from a financial standpoint if we went back on the plan.
But we know what our numbers are and we know where certain things are
if we stay where we're at without changing.
I also have concerns about
working through this change in the current environment we're in.
It's very hopeful within the next couple of weeks
our staff will get back, be able to get back to somewhat
of a normal working process.
But but there's no guarantee of that.
And there's a lot of work that Greg and his staff need to do together
to ensure that everything is set up and ready to go.
And this this process is is, you know, as helpful to everybody as it can be.
So all of those I
don't think for me anyway, will remain a concern
if we want to if we end up going back on the program,
I know will administer and deal with it the best that we can.
But that's one of the things that we're trying to do is not to have
too many changes as we look into the next school year with
as many uncertainties or unknowns
that exist right now.
I didn't think about the staff training portion of it.
So you're saying that, you know, it's hard for you to even get in there now
and without ability to potentially get in there more,
to train everyone in a new way and a new system?
It's it's more than expensive equipment for you.
It's changing process it changing a lot of things.
And we lost so much time,
unfortunately.
Right.
But we were making great strides.
And I want to can pick that up, especially with the students that
their input is just so needed.
It will help give us direction and it'll help ease some of the changes.
So yes, the equipment is very much needed,
but so is the input in the buying in from the students.
Yeah, and changing the process for a staff can be very stressful
and it's already stressful right now with COVID 19. So
I mean so
that's kind of the final conclusion right now for our May finance meeting.
Is that what we will go on the program for 2122, but not this year.
Correct.
Okay.
Lindsay, anything.
Now? I'm good at that things I think it's
appropriate to, you know, keep making progress
towards that but not to push it, you know, in this time frame.
Okay. I appreciate your understanding.
So, Terry, just and for just clarification,
do you want that on the June 8th board meeting.
The opt out?
Yeah, yeah.
Yeah. That one. We normally do it.
Well, we usually do it earlier than that, but
because we had to work through this process,
I just wanted to make sure that if we bring up the full board
tonight, it'll be on the June 8th meeting.
Yeah.
The birds in the background of your audio are just delightful.
I thought one. Of my alarms is.
Going up now, so I decided to sit outside versus sit in the basement.
No, it's okay.
So we're clear on that, then?
We're clear.
Thank you. Okay.
Thank you.
Okay, the next item
is the property tax penalty due date.
Extending that, I guess
partly to align ourselves with what the
I think what the township, what the county is doing.
Mike, I think you had some new information on that.
I know you wanted to look into
when the banks usually paid out the taxes
on behalf of the property owners and so forth.
Yes. And so I did touch base with Wendy Male Horne
at the the tax office,
and she was very confident.
She noted that currently all banks do pay within the discount period
and that did not change with the
the township and the county's change in their collection process.
And she would not see that
changing at all
moving forward based on how escrows are calculated
and if there's more higher fees
associated with the payment, which would happen
if if they didn't take the 2% discount period, that that would throw off
a lot of calculations and catch the eye of a lot of homeowners.
So she doesn't believe that's an issue.
And I feel confident
that those that pay within the discount period will continue to do so.
And on average,
90% of our tax dollars, real estate tax dollars come in
by that August 30, first time period.
So my concerns about cash flow are no longer concerns at all.
She did note the
there are a fair number of of constituents or taxpayers
that that don't understand school district versus township.
They know they get one bill in the summer and they get one in the winter,
but not necessarily as tuned in to where that goes.
So from a standpoint of being consistent,
that would help as well
if that time period was extended
so that all Derry Township taxpayers would receive the same treatment
or follow the same rules and thus not get anybody
inadvertently confused by extending one dessert, one
penalty period, say it for township tax,
but not for us.
We would our
and this has already been figured into the numbers
that will be the full board will be looking at
and approving for the preliminary proposed final budget today.
But yearly we receive anywhere
between 50 and $60,000 in that 10% penalty.
Those would be people that pay their taxes
between November 1st and December 31st.
They historically have paid that extra 10%.
And around that $600,000 is what we collect.
550 to $600000 is what we collect in real estate taxes during that time period.
So we would be forgoing
that normal revenue that we get from the penalty phase.
It is
also was also clarified that the penalty would be
attached to everything that was not paid as of December 31st.
So once it got turned over as delinquent, the 10% penalty would come back.
So we are not waiving that well.
What we would be changing or waiving is the 10% penalty for anybody
that paid between November 1st and December 31st.
So that would be 10% of the 550
to 600000. Correct.
So we
unless anybody has any questions
that we I assume we need to formally
recommend this to the full board and to some.
Is this an action you can take, Mike?
Or we did for once what.
Will need full board approval of it?
There's no real separate action.
What they would do is when approving the final resolution
in there is when we talk about penalty discount
and we would remove the penalty portion from that resolution.
Also, Wendy noted there was another item
to look with the effect on the tax bill would be
and Wendy noted that all they would do and what they would
propose to do is not change the format of the bill whatsoever.
If they just would print no information in the penalty portion of the bill.
So a person would get a bill that would say it's either
2% discount or paid at face value,
those would be and you still have the option to pay
in installments as they would, and the penalty would also be waived
for those installments.
So so the board would just approve this.
At the same time they approve the final budget.
Is that. Correct? That's my understanding at this point, yes.
So I'll just report out tonight that
we need to a formal motion of our committee.
Yeah.
I think to show that this committee is is you know,
how that would be supportive of of this change.
Okay.
Our motion then that
that will align ourselves with
both the county and the township with respect
to the penalty period of the
property taxes
be extended
till December 31st, 2020,
and the penalty phase would not come into effect until
January 121.
Thelma.
I can.
Favor I.
Okay.
Nobody Mike, just one quick question on that.
I noticed that today that the township announced
that Dauphin County and the township have waive penalties
on the county township real estate tax that was issued on February 1st.
It says the amount listed for April
and May on the tax bill will be payable through 1231 2020.
Will we put out a similar announcement
or will that come through
the township tax office?
I think it would it would probably be behoove
it would behoove us to to provide that communication so I can work with Mr.
Tredinnick to pull that together.
We wouldn't provide that communication, though,
until passed by the board.
Right. Right.
But I'm just saying, like at the time that we do it,
I think that it's important that we put that out there.
That it's not going to be until the second meeting and first second
meeting in June.
Correct?
Correct.
And that doesn't have any bearing on their time
frame for printing the tax bills since they're just leaving that information out.
No, it does not.
Okay.
So tonight, I'll just let the board know that our committee supports that and that
their support for it will be called for
in the approval of the final budget, second meeting in June.
Okay.
Thank you.
Any So did
the Treasurer's report review my guy?
I don't see anything attached in my notes.
I just put a link there to the information that's on the board agenda
I think we had talked about before, rather than posting
in both places that the link would be sufficient.
So we're going to turn it over to Regis and see if he has any anything
to add to the reports.
Yes. Just a quick
update on the Treasurer's report.
Total revenue for end of April
$824,202.
Total expenses 4,298,005 or an $18.
That leaves us with the cash balance
plus investments.
And that.
Also includes the capital reserve of 25,972,000
for 73,
which.
Is pretty stable from prior years.
And and this year
I did a quick look.
At our at our expenses, our total expenses.
Even with
everything going on, it's still stable
or at 72% spend.
And prior years
it was 73% last year and 72% in 18.
So we're holding a stable path
with the with the expenses.
I know. And
on the 15th of May, we paid our debt
service payments as well as the second semiannual payment of that.
That was just a little over 2 million.
So you'll see that on next month's
Treasurer's report.
But other than that,
nothing really else to.
Highlight unless.
Anyone has any questions.
I'm just curious,
are you going through each one of the reports or if we have
questions about the individual report, should we bring that out now?
Yeah, that's fine.
I wasn't going to go through each of the individual reports.
Okay?
I was just curious, you know, looking at the revenue status report
the year to date when we had received budget updates, there are
a number of things such as
the amusement tax that are
behind given, you know, the crime situation.
Is there any way to see that on this report, on these reports
to show, you know, where how far off
budget plan we are?
You mean as in from priors.
Or just this year to see.
What we budgeted and what we brought in so far.
For this year where you know, where we are
typically, we don't see a lot of movement in the budgeted amount.
So on the revenue items at this point in the year.
But I know that with some of the decreases that have occurred
over the last couple of months, that those numbers are off.
Lindsay There are.
So the reports we have don't have compared it
to prior year information and included in them. So
you can see where it is in comparison to budget.
But with I think I hear you're saying
none of that nothing's in there from a prior year to really know
well where I'm at right now is that good, bad or indifferent.
Like for example, amusement tax, you know, shows $70.39 year
to date to budget.
So about 70% of what
I think that's what we referring to is the
the percentage in the far column.
That's just the percentage of the budget that's been collected to this point.
But we don't know what the offset number.
Just.
Like, you know, where we're actually going to come down to that.
Right.
Like it could just stay at 70% because there's no amusement tax
that come in. Correct.
So that's that's more than likely
where it's going to stay at that 70% mark, because at this point,
once again in our cut off remembers June 30th.
So we're not anticipating getting any more amusement tax dollars
through the end of this fiscal year.
So I don't anticipate that moving at the
the other one that was kind of affected would be the earned income tax
that has been up in
well up until this month had been trending equal to to its budget
and had shown no signs of it, of it of having a dip.
This month's collection did show that.
But that is just as much an effect of
we get our largest bump from that when people pay their local or earned
income taxes, which is usually around the April 15th deadline.
So because of. Yeah.
So when when income taxes are now due
on July 15th for 2019, will that retroactively
go back into our year end report since we're not going to be receiving
those number, those figures until after the end of the fiscal year.
It will go back into the prior year as as historically for our accounting,
the earned income tax,
we take the additional 60 days.
So actually everything collected through the end of August
historically is always put back to June 30th.
So that would incorporate this as well.
Okay.
So those are really the two that we'll expect
that are going to stay lower on the percentage side.
Correct? Okay.
Thank you.
The I did hear and I don't know if this is 100% true,
that Hershey Park will not open until Dauphin County is in the green.
Is that correct?
But I heard the same or similar or the same.
Yeah. Yeah.
That's that's accurate or not, but it.
Doesn't.
Have to be just based on the number of people that are allowed in spaces.
Yeah, between those phases.
Dr. Levin said today that for a cat we go
yellow on Friday and top in county to county to move to green,
you need to see two weeks of every day a decrease in cases.
So best case scenario, we would be green like Friday,
June 12th or 13th or something.
That's if there's a decrease every day. So
let's keep our fingers crossed.
So, Mike, just out of curiosity on the amusement
tax for Hershey Park, like season passes,
you know, obviously those are purchased at different points in time.
Do we receive amusement tax on a season
pass purchase since it's not an individual ticket sale?
We do and Lindsay, I'd have to look exactly at the
because they treat a season pass and I don't know how many so we do
get the money from a season pass and it is a little bit more than just
selling one ticket because they do realize that it's multiple.
But I would have to go.
It's actually reported on a quarterly basis.
When they pay their tax,
they show here's how many season tickets, how many single tickets.
And I was curious about that because so often
they run promotions like because they're, you know,
year end
or the season end is in September, typically before they roll into Hershey
Park in the dark that they incentivize people
to purchase their season tickets before like 1231 and your season
ticket, your season pass comes with,
you know, access to Hershey Park in the dark or springtime in the park.
So I just didn't know from an amusement tax perspective how that's accounted for.
And did they submit it when it comes in.
So we're always kind of just those taxes that come in off the season
pass, just roll in to you what we receive in distribution from them.
Yes. So my my conversation with with this Mel Horn or Wendy Mailman
at the Tax Office about that was that those
those come in at the time of sale
so that they report it at the time that that occurs.
Okay. Thank you.
Okay.
I have two different the time on my screen I'm looking at here is this for 59?
But my other
iPhone says it's 456.
I have a meeting at five, another
committee meeting.
What is what time is it?
It's 56. Cleary.
Okay, great. One. Okay, thank you.
And the final item was like,
I think you wanted to maybe just form an informational point of view.
Explain to the committee what you'll be sharing with the full board
tonight about the 2021 update to the budget.
Sure.
And this is a really quick item.
So this evening, the board will be approving the
the ability for us to go out and advertised our proposed final budget
the next two years, 2021 budget
does not include a tax increase and does account
still for all current programs and employees that we currently have.
What I wanted to provide, though, from the information that I shared
just last meeting at our May the 11th,
we had some additional changes, mostly around area of salaries
and specifically what I'm going to do with our ACT 93 agreement,
looking forward for what that is there.
So we were able to reduce the budget
by additional $240,000,
190 of that being in salaries,
most of that attributed to
some changes in in our administrative contract.
Also, though, going back through
and probably about $45,000 was
monies that were essentially found to be in there twice.
So they were they were pulled back out
since they were in the building budgets and in
in the business office personnel budget.
So that's the main driver of the difference in expenses
from what everybody saw just two weeks ago.
We did also from a revenue standpoint,
and this has been a tricky topic, the federal stimulus dollars
that are available, about $470,000 in total.
We're still trying to figure out from PD
what and how much needs to be spent on nonpublic.
We have to funnel some of those dollars to nonpublic schools.
We do something similar for title one expenses right now.
However, currently only one school takes advantage of that.
Saint Joan of Arc,
however, is providing us two conflicting pieces of information, one
being that we'll only have to focus on Saint Joan of Arc through that process.
And then another piece of information that was shared that says, no,
we have to see how much every nonpublic school
within our boundaries, within our school district needs.
So we're still sorting that out.
We as an administration
made the decision to pull the revenue completely out of the budget,
and that is because our intent is to use it on unknowns
for next school year and from an apples to apples,
I we really have no unknowns built into next year's budget.
All the things that we built in were things we were working on and assume
that school will resume as normal next year.
We know that there are going to be some hurdles and some things coming our way.
And as administration felt more comfortable
knowing that some of that $470,000 was sitting there and specifically
would be used for those unknowns
as we as we come up to them.
We also have a plan, though, to spend the dollars if things do go as planned.
And we don't have as many unknowns.
We have places in our budget right now
that we can pay salaries and benefits for certain teachers using these dollars.
And so
there's a lot of different ways that we can use them at this point.
So we've decided to put the revenue and the expenses
on the sidelines, if you will.
So currently what I'm showing for approval
is a budget that has about a $1.8 million deficit as compared
to about a $1.4 million deficit that I showed at the end of
May 11th.
So those were the major changes
as they as they exist in a comparison
to what we were just I just showed you two weeks ago.
Make this $1.8 million deficit
that does not include any money
going to the capital fund as a transfer, correct?
That is correct.
Anybody else have any questions?
Okay.
Well, that wraps up our business for the day,
if I could have a thank you very much for the update.
Thank you.
I thank everyone for
making it through another zoom
and especially on Citizen Advisors.
Thank you.
Can I have a motion to adjourn, please.
So moved.
Again.
A during the meeting at
I've got one
at 501.
Thank you all very much. Thanks. Thank you.