WEBVTT

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DTSD Webinars: Good evening and welcome to the March 24th Finance Committee meeting. This meeting is being live stream and re video recorded for for review purposes. But we'll go around the room and then also virtual for roll call introducing yourself and also your position. So Mike Rizzo School Board.

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DTSD Webinars: Jc. Winslow, Superintendent Lindsey Drew School Board, Jennifer Wren School Board.

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DTSD Webinars: Carol Pitts, business manager, Michelle Ag board secretary, you know.

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DTSD Webinars: Okay, and that's everyone that is in the room where I get roll call from the individuals online

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Stewart McCarver: Stuart Mccarver, Board, Member

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Parker Davis: Parker Davis, citizen advisor.

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Joseph Dellasega: Joseph de la Sega, citizen advisor

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Michael Bunn: Mike Bunn, citizen, advisor.

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Brian Ostella: Sell a person, advisor.

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DTSD Webinars: Excellent. Thank you very much. Just a reminder. As we speak through the meeting. Please make sure to say your name before you. You comment so that Miss Ag. Has an understanding of who is speaking?

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DTSD Webinars: Thank you. We'll go to item number 3. Approval of summary minutes. Could I get a motion to approve the summary minutes from February 24.th So moved Jennifer Renz, second, Lindsey Drew. Is there any discussion

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DTSD Webinars: all in the favor, say aye, aye, opposed Mr. Mccarver

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Stewart McCarver: Hi

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DTSD Webinars: Thank you

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DTSD Webinars: all right. There is no unfinished business evening, so we will move forward on to new business, and I think we have 4 different subjects here. February finance report, capital plan, review, budget, update, and then contracts. So I will hand it over to Ms. Pitts, and she will take it from here. Okay, thank you, Miss Bell. Can you

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DTSD Webinars: project the February Finance report, please?

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DTSD Webinars: Thank you very much. So I'm just going to touch briefly on some highlights for what happened in the month of February. In local revenues we brought in around 1.4 million dollars, and the largest portion of that was our earned income tax collections of $765,000.

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DTSD Webinars: And I do want to make a note. Previously we have been seeing real estate taxes coming in. Now, this is the time of year where those stop anything. For the most part that's real estate tax is either going to be interims, or it will have been turned over to tax claims. So we'll start seeing some delinquent real estate taxes coming in

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DTSD Webinars: for those

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DTSD Webinars: and then the second largest portion of what we took in for local revenues was our pilot, or payment in lieu of taxes from the Penn State College of Medicine, and that was approximately $341,000, and I did send an invoice to them, and they had paid it

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DTSD Webinars: in state sources. We've brought in approximately 1.2 million dollars.

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DTSD Webinars: and of that the largest portion was our basic Ed subsidy. We do receive that in the even numbered months, and that was $863,000, and we also quarterly get payment from the State for what's called the State share of social security and Medicare Medicare, and that was for approximately $343,000.

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DTSD Webinars: In there also we have Federal revenues of approximately $282,000, and we do get monthly payments for our title programs. But we also, in the month of January, submit our quarterly reports for the quarter ended in December, and because of the way the timing of the payments fell, we did have an acceleration of those payments. So in this month we received $239,000 in title one

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DTSD Webinars: and $21,000. In both title 2 and Title 4, based on those quarterly reports.

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DTSD Webinars: and for expenditures, as always, our largest portions is in salaries and benefits. February is a 2 month or 2 pay month, and this is a pretty normal amount for us to have about 2.5 million dollars in salaries. So that concludes my quick overview of February, are there any questions?

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DTSD Webinars: Okay? Any questions online?

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DTSD Webinars: Okay, thank you. Okay. So we have Mr. Selmer from Devapar, who's going to be presenting some financial information on the Capital Plan Review that he's he did with his team, and previously in the general services. If you weren't able to attend. He went through a really nice overview of the review that they've done on our facilities, and here. He's going to give us

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DTSD Webinars: an overview of some of the costs that have been tied in the planning and how we're going to use this document. So thank you. Mr. Sunk. Okay, thank you. Ms. Pitts. Good evening, everyone. Thank you for having me again.

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DTSD Webinars: So on. The screen is the Dairy Township school district what we're called miscellaneous capital project tracker, and the documents set up in a couple different buckets. You'll see the 1st bucket is the current fiscal year. So there's items listed there that are already in process, or that may be coming forward to the board in the very near future. The yellow designation is that these items were identified by the dairy administrative team.

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DTSD Webinars: Everything else you see on the list came out of the report that was presented at 4 o'clock as we pulled items out of those findings, and then, you know, basically took them in a spreadsheet and then put costs to them.

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DTSD Webinars: As I said, at 4 o'clock, you know. An overall assessment is dairy is in in good shape.

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DTSD Webinars: you know, having this study done. Now you're planning ahead, so there's not, you know you know some other. You know, clients, districts, etc, you know. Unfortunately, you know, the needs have already kind of gotten away from them. We're not seeing that here tonight we're seeing that there's needs coming.

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DTSD Webinars: There's needs that have been currently addressed. And we just need to continue and and implement, you know, a stringent planning process that includes the administration, the board, and the community. So it's transparent, and everyone knows what's being worked through.

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DTSD Webinars: At 4 o'clock a great point came up. So we'll be adding to this regarding fields. So we did encompass a number for the stadium, which is in phase 2, because we know that project will be moving forward. We have some parking lots around athletic fields that we, you know, included, but we need to go back and capture the rest of the fields to make sure that they're included in this full assessment.

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DTSD Webinars: So we're going to be doing that over the next couple weeks with Mr. Freedie. He was here earlier. So I think we already have a game plan on how we're going to get that information and and get it into this document pretty quickly.

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DTSD Webinars: So phase 2, again, is the 2526 fiscal year. So the phases are set up by fiscal year to tie into your budget process. And then below that is future planning phases. That's really the next phase of the process is to really start looking at budget. What capital funds are available and how they're going to be utilized in those future years. Part of this process is, it's fluid.

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DTSD Webinars: You know, these are the needs that we all see today that were identified. But tomorrow morning, Mr. Freedi, Dr. Wins go get a call.

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DTSD Webinars: and that could change. You know the trajectory and the planning process, so things may move up and down as these additional buckets are created. Year after year the key component, again, is staying in front of it and planning. And that's really the value of of this document, and it also covering not only the assessments and the report, but the things that the dairy administrative team

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DTSD Webinars: prioritized as needs for the district moving forward so that future planning phase will be again. You see a comprehensive list there that will eventually be broken into other years on those out years.

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DTSD Webinars: Once that's done, everything will be built into the cost tracker. So you're going to have, you know, board approved projects that move forward. You're going to have budgetary costs, which is the ranges we put in the document. But if the Board and the Administration says, Yes, we're moving forward with an initiative that'll then become, you know, A. It won't be a budget number any longer. It's going to be an actual number.

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DTSD Webinars: so the tracker will move those actual numbers in. Take the budget number off. So you have a running total. As things are happening throughout the next couple of years.

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DTSD Webinars: One note is, you know, the Budget estimates and the ranges, their estimates. And and currently, as we know, there's a lot of discussion around price escalation. And what's happening with the economy. And so the point with that is, we just have to be on top of continually evaluating numbers. And that obviously will happen when a project goes from a conceptual, we think we want to do this to hey?

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DTSD Webinars: Either, either it's a bid. Maybe it's through joint procurement where multiple quotes are secured. Obviously, through that transition, we're going to get updated numbers. But we still want to keep tabs on what's happening in the market part of the team that helped with this was Fedavia and Fedavia. Did the estimating or helped with the estimating part. So obviously, you know, they're part of the dairy team already for the elementary school

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DTSD Webinars: project, and, you know, definitely keep a pulse on what's happening in the market, you know. Bids are opening every week. So we're going to utilize them. Also, as we're doing this part of the capital planning process to make sure there's there's no definitive escalations that we should put back into this sheet and add, you know, escalation additions to

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DTSD Webinars: the other point we talked about at 4 o'clock was safety items. Obviously, safety is very sensitive. There are items that will probably be included in future years around safety related items. But in talking with Dr. Winslow we felt it was best not to list those items out. But just note that there will be items potentially coming forward under the realm of safety.

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DTSD Webinars: If you could page this back up to the top, please. I just want to go across the columns quickly. Thank you at the very top.

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DTSD Webinars: Yeah, thanks.

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DTSD Webinars: All right. Appreciate that.

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DTSD Webinars: So again, you have the, you know, taking going from left to right, you have the the item you have the building or district wide. You have the phase which again, phase one is this current fiscal year phase 2 would be next year, and then the future plan. Years out. You have a budget high, a budget, low budget high number. So we have a range in there. We have anticipated procurement methods.

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DTSD Webinars: That would be the next column, so we could track whether we're going to. You know the district wants to do a traditional bid. Is it a cooperative? You know we can track that and make sure we're staying on top of that. The other is other professional services. So, as you see there, the district is already engaged with Jmt. For your stadium project. So again, just noting that beyond the Stadium project there's an additional engagement that will obviously, you know, go towards that. The project in total cost.

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DTSD Webinars: Step One would be, you know, the administrative agreement that they believe these, the project should move forward. Step 2 would go to the board for review and approval, and then we would get into a final cost and then anticipated start date and end date. So essentially again, this will start to get populated and basically give you a dashboard

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DTSD Webinars: that continue to be updated, monitored, and and, you know again, be transparent, a tool to be transparent with the community on all these other needs. And what's what's happening

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DTSD Webinars: the bottom of the sheet, and I'm sorry I keep jumping around at the bottom of the sheet. It totals. I'm sorry. A little backup. There we go. Thank you. The bottom of the sheet. There you'll see it totaled all those different numbers from top to bottom. So if you were going to do everything today and current dollars, you know, it would be low. End would be about 28 million dollars of need. High End would be about 33 million dollars in need. But obviously these are going to be spread over multiple years. But again.

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DTSD Webinars: the the beauty of this and and kind of what you want is to have these needs identified it in front of you. So now you can plan for them moving forward. So

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DTSD Webinars: so this is the budget again. Budget tracker. This is something that you know the district will have to continually update. Keep track of. And again, a fluid document. Things may change. Things may adjust not only with cost but priority. As the district moves forward in the coming years, so any questions or comments that I can answer

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DTSD Webinars: this is Lindsay drew where will this document live?

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DTSD Webinars: I was actually thinking about that during the General Services meeting as well like, how is he going to give us this document I'm going to transfer. I mean, it's all we have it on Google, I mean, you know. No joking aside, like I will be giving this to you once we get through it, and then it can be housed on Dairy's server, or whatever. And then, yeah. So in my mind, the business office would own this document and be

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DTSD Webinars: the editors of the document, while the superintendent, director of buildings and grounds

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DTSD Webinars: would be viewers of the document and not have editing rights, but only editing rights in the in the business office to to track it. But there, then, there could be some other directors that

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DTSD Webinars: would have viewing rights as well, just to keep track of where we at with things. But that's how I'm envisioning it. As we've been walking through this process. Okay, so will there be a way to look at? Because I know you know, one of the things with the capital plan is per our policy. It's approved when our budgets approved each year, so would there just be kind of a printout of one of the pages that would focus specifically on that fiscal year? Or would it show? You know the

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DTSD Webinars: kind of what's coming down the hype? I mean, I I feel like when I think about the way it's kind of looked in the past that we could extrapolate from here what we wanted to bring forward for board approval

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DTSD Webinars: for that that next fiscal year's capital plan development that that would be pretty easy to extrapolate from here, while also making sure that the board is continuing to be aware of where we're at and periodically coming back to this full document for the board to see. Okay, that makes sense. That's kind of what I'm envisioning. That's generally just a comment. That's

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DTSD Webinars: basically a similar process that we're working. I'm working with, I think, 8 districts now between Devon for Davey, on capital planning and what you just outlines very similar. I mean, you know, little nuances here and there, but that sounds like a normal process that I've seen, and with clients that I'm continuing to work with some of our clients. You know we do this work, and then we continue to help plan and work with them on it. So that's how I've seen them handle it.

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DTSD Webinars: I don't see any additional comments at this time.

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DTSD Webinars: I would say Dr. Winslow will be coming back with an update probably next 30 to 60 days to include the the other fields, and and we'll get that incorporated. So yep

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DTSD Webinars: I may. This probably is more for Dr. Winslow or Mrs. Pitts, and I don't know if it's premature, or that I'll steal your thunder for the budget Update. But looking at the balances of our capital reserve and the fact that we have historically done a million dollar transfer each year into that. Are you comfortable with the projections here of

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DTSD Webinars: of capital needs over the next 5 years, and the balances and and where we'll need to be to be able to to fund these through cash transactions. Considering we have such a large financing one coming up

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DTSD Webinars: at first.st

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DTSD Webinars: Okay, this is Mrs. Pitts. Thank you. So this is something I really do want to look at. And we do have several sources of funding that I want to make sure. So when we look at

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DTSD Webinars: we've we've got the

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DTSD Webinars: the stadium in here, and the recommendation was for that to come from the bond issue that we did for just shy of 15 million dollars. So we do want to look at that whole plan. I would say, we just kind of had 2 years pretty much identified here. And then we have out years. So I think that does need to be

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DTSD Webinars: multiple year projections do need to be part of what we look at when we do budgeting. So I would say, those 1st couple of years I'm comfortable with. When I look at the whole thing it is a little bit daunting, but I think we just as Mr. Selmer said, this will be a living document that will obviously be changing. One of the things he mentioned in

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DTSD Webinars: in general services is, if we would do a major renovation on one of those buildings. Some of those things would probably go away as a separate item on the capital plan. It would be incorporated into a into a bigger project. So I would say definitely, the 1st couple of years. I'm comfortable with what I see.

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DTSD Webinars: Yeah, I would just add, I mean, looking at this list, there could be some things, you know, when you look at roof and Hvac. That becomes a pretty large project quickly, that the district may say, Well, you know, based on cash flow, etc. Maybe that's you know. And again, I know you're borrowing for the elementary, and you have other competing needs. But maybe that's that's a conversation to your point about how you handle that. We can add multiple revenue streams into the bottom of this document, too. So.

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DTSD Webinars: and I did that for another district that received some significant grant funding so they could see, like the offset of what they were using in capital. You know we did the Grant as an offset which then gave them more money. Essentially so, we could even add something in. If there's multiple revenue streams.

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DTSD Webinars: If I could just make the suggestion. Like as we move to the more final living version of this document.

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DTSD Webinars: as an educational piece for finance committee or for the board, you know in a workshop setting to talk about what is capital plan. Item, what is a capital plan? Item versus what is not, because, historically, everything kind of got thrown into the capital plan document when they were not really capital plan items. So I think that that would just be a healthy way of providing education, so that when we look at

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DTSD Webinars: larger purchases that don't fall inside of the capital plan, you know where, where we account for all of those and forecasting.

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DTSD Webinars: and that is something the Stacey Winslow that we have we did talk about. And I had asked Mr. Selmer specifically, and like some of the items in food services, for example, are good examples of that that I asked to be included on this sheet, so that we did not lose track of them while understanding that the revenue source is not going to be

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DTSD Webinars: from the capital fund, it would be from other funds that we designate, and I know that

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DTSD Webinars: Mrs. Pitts and I were just having some conversation as well about looking at some of our contracts that we bring forward, and starting to identify for the board. What is the revenue source for this? Where does this get pulled from? Especially if it's an alternative revenue source, so that it's it's a little more brings a little more clarity to the table that really hasn't been there.

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DTSD Webinars: and I don't know. Perhaps there's a way to utilize this as a tool to designate what is actual capital reserve funds versus our committed line items for capital projects or just general fund

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DTSD Webinars: funding.

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DTSD Webinars: It's a very good suggestion. Thank you.

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DTSD Webinars: This is Jennifer Renz, and this is probably a question for you, Dr. Winslow. Are we assigning a timeline to our capital plan, like? I know we've been kind of referring to it as the 3 5, 7 Year capital plan, or closer to budget time. Are we going to designate

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DTSD Webinars: a timeframe for this this capital plan, and I think that that's a little bit what Ms. Drew was asking earlier is, how do we bring this forward for the Board to approve according to our policy, so that we are approving capital plan with the budget. And so what I would see happening is that we have this.

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DTSD Webinars: our our fiscal year 2526. Capital plan brought forward to you with the budget in June, so that you are approving the following year what we intend to do with the capital reserve funds?

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DTSD Webinars: Does that make sense? Does that answer your question? It does. Yes, thank you.

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DTSD Webinars: And we. And we can make an update to the sheet. I think, with the multiple revenue sources that that's not difficult. Because even like for food service, if you want it on the list, because you want to see it and track it. We can just, you know, do an offset for Federal revenue. And then, you know, if there's a a total that you're allocating. That's truly capital. We can just do. You know, Miss Pitch, just do an offset

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DTSD Webinars: so the Board can see transactionally how it how it all works, so

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DTSD Webinars: I don't see that, being a big, big issue

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DTSD Webinars: from my standpoint, I don't want to speak for for Miss Pitts or Dr. Winslow, but I can make that happen if that's the direction.

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DTSD Webinars: okay, are there any additional questions either in the room or online?

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DTSD Webinars: Not so much a question. But, Mr. Selmer, I just wanted to acknowledge.

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DTSD Webinars: your work on this, and and how much we appreciate it with having someone new in our buildings and grounds department. To be able to get this level of

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DTSD Webinars: detail would have taken him a lot longer without without a team working on it. And I also really appreciate your plan to bring this forward in draft format, so that we could have discussion at both of these meetings and make some refinements based on what the Board needs to see and and kind of hearing what what thoughts and clarity need to be brought to the table. I really appreciate this

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DTSD Webinars: this opportunity to do it this way and to continue working on it. So thank you. Thank you very much. It's been a pleasure. Administration's been great to work with, and I'm excited over the next 30 to 60 days. We have great information tonight, great suggestions, and we'll go back and kind of rework this and and get it back to you in the next 30, 60 days.

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DTSD Webinars: Thank you. Okay, thank you. Have a good evening.

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DTSD Webinars: All right.

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DTSD Webinars: all right. So the next thing is, I did want to give an update on where we are standing with our 2526 budget process, and what I have done. And Ms. Bell, if you could

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DTSD Webinars: up that

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DTSD Webinars: presentation up. Thank you, and then jump down to the next slide, which will be the local revenues. And I'll just give you a queue when I'm going to each slide.

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DTSD Webinars: So I do. Wanna 1st of all state that this is a very preliminary at this point.

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DTSD Webinars: the process that I go through is, I take a look at each and every revenue line that we have. Certain ones are very easy. They are driven by formulas. I either make estimates to put in numbers to perform the calculations on them

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DTSD Webinars: or they're given to us in some format. So they're very easy to do, or relatively easy to do other ones. I have to take a look at what's been going on historically, and and see, you know, making my best guess about what I know is going on in the economy and just making some kind of estimate. So these are really very preliminary.

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DTSD Webinars: and I also want to say, from the time I prepared these slides, I know of at least 2 changes that I have to make. So that is how this will be continuing to be updated and refined as we get closer and closer to our proposed final budget, and then ultimately to our final budget. So these numbers, these 1st few slides, I do want to point out that the assumption I made was a 0% tax increase.

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DTSD Webinars: And what I've done for that, and that is that very 1st top line, and probably the most important line, I'm sure, to everybody on that local revenues, and I apologize. There are just so many more local revenue lines than there are in the other categories that they're a little bit small and hard to see. So I apologize for that.

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DTSD Webinars: So what I receive from the assessment office in November is a certified taxable amount, and then from that time forward I receive notifications of assessment changes. So I take that taxable amount, and I either add, which is the majority of what's happening, or subtract any assessment changes that I receive notification of.

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DTSD Webinars: And then I have an adjusted taxable assessment amount.

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DTSD Webinars: and then in the Pde. 2028, which is the budget form that we use to report our budget to

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DTSD Webinars: to the to the Commonwealth, I put in that that adjusted assessment amount. Now, there are some things, as I mentioned, that we just don't know at this point, and one of those is the amount that we will receive for tax reduction from the State. So I made the assumption that we would receive exactly the same dollar amount that we did last year. So that's what I used to do. This calculation. And the odd thing about that is we take once we know that number

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DTSD Webinars: and a real number. I have an estimated number in there. What it does is it takes that money out of real estate taxes in the locals and puts it into State revenue. So I did make an assumption just that it would be the same amount as last year. And I also use the same collection amount that we percentage that we used last year. So we have received 3 rather nice commercial property assessment increases.

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DTSD Webinars: So even without a tax increase, you can see that we have a relatively large increase, and I do have a slide a little bit later on. That does show some comparisons at

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DTSD Webinars: several different percentages, what it would look like if we did do a tax increase.

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DTSD Webinars: So some of the other things I want to highlight as we go through. There is you'll the columns I included on this slide were what we what our actual results were for 2324, and what we have in the budget for the current fiscal year, and then what I have put in as my preliminary number for 2526. So you'll also see we have a fairly large increase

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DTSD Webinars: from last year's actuals and this year's budget to our interim real estate taxes. And that goes back to those large commercial assessment increases. Those are, they are effective midyear.

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DTSD Webinars: And then what happens is in August there will be a prorated bill for this year, based on those assessment changes. So it will be a 2526 revenue. One thing I do want to point out about that, though that will not be ongoing, we would expect, unless we have some more large assessment increases, that that interim tax would go back to a baseline amount. So this is kind of a 1 time increase.

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DTSD Webinars: One of the other highlights that I wanted to point out is the occupational tax. Last year, or 2324.

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DTSD Webinars: The actual amount was about 1.7 million. The budget for this year is 2.3 5 million, and when I looked at the history of that, and what I think we're going to be taking in for the remainder of this year. I did not think that that would be supportable for 2526. So I brought that number down quite a bit to about 1.8 million, and that is

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DTSD Webinars: based on the historical trends that I have seen. I'm not sure if possibly that number may have been increased in 2324. There was a large push to collect some delinquent occupational tax, and maybe the thinking was that that might have carried through to the currents.

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DTSD Webinars: But I am not, seeing that I will continue to monitor and see if it does play out. That is going to be more. But I did bring that number back down, Mrs. Pitts. This is Lindsay Drew, if I may. I know you know we briefly discussed this the other day, and I was thinking about it since then, when Keystone

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DTSD Webinars: assumed the occupational tax collection. I think that's when we started seeing higher numbers roll in because they were having greater success in collecting, since they had

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DTSD Webinars: the

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DTSD Webinars: or an income tax base as well. So my recollection is that the reason the budget number was 2.3 5 last year was because that was the number that Mrs. Purcell had said Keystone provided to to them, so I'm not sure why

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DTSD Webinars: it hasn't, you know, like why, it's so far off the mark. But I I do recall that there were conversations with Keystone to to find that projection projected number, and what they thought it was going to be going forward. So I'm not sure if you know, perhaps any conversation with them could be had to to see. And

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DTSD Webinars: yeah, that's a great idea. I think I'll reach out to them and see and and maybe like things like earned income tax. There's a big timing. We'll see a larger. And I probably should have pointed that out when I talked about the February results, but will, as their people are filing their final tax returns, we're going to see a larger amount in earned income tax toward the end of the year. So maybe there's a trend in that that I am not seeing that may

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DTSD Webinars: increase this. So I thank you very much. I will reach out to Keystone and see if they have any other projections and see what their thinking is

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DTSD Webinars: for what's going on this year. Yeah, I mean, I I think that looking at the trends, you're probably correct, because based on where we are

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DTSD Webinars: right now in the year, we would have seen

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DTSD Webinars: the vast majority of them already, because it would have been turned over to delinquent collection as of January first, st but maybe they could help explain the number that

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DTSD Webinars: we base this off last year, and what you know, what that looks like.

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DTSD Webinars: Thank you. So

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DTSD Webinars: earned income tax that is also based on trends that I've been seeing for the past few years, and some of them are a little hard, as I'm looking at trends I would love to use 5 years, but in those 5 years we're still looking at some of the pandemic years, and so on. Earned income. Really, I think I only did the last 2 or 3 years, because I think there was the pandemic really did impact those numbers, and I think that would have thrown off what I would be projecting.

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DTSD Webinars: So real estate transfer tax. I did bring that number down a little bit.

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DTSD Webinars: We are.

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DTSD Webinars: from what I'm hearing. The housing market may not be as robust as it's been. There have been some less sales. And I I'm not

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DTSD Webinars: because they're not reducing interest rates quite as quickly as I'm anticipating. I don't think we're gonna and if I compare that to to what the actual was for last year, I think that bringing the budget down from 1.1 million from this year down to a million is is probably pretty realistic.

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DTSD Webinars: The amusement taxes. I also did bring down a little bit. We do know that we have the theater that will be closed for 6 months of the 2526 fiscal year, and also based on some trends. So that's what my thinking was on that

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DTSD Webinars: interest rates. I'm looking at what we took in in 2324. So I have it a little lower than that actual from 2324, but a little higher from the budget this year. Again, we're probably going to see a little bit of drop in interest rates, but we also have our fund balance that had been

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DTSD Webinars: been growing, so I think we might have a little bit lower rates, but I think we might have a little bit more cash that it's going to be earning on so that that is where I'm looking at for right now

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DTSD Webinars: and then. I did want to point out for idea, even though that is a Federal revenue, it is passed through the Iu. So it is accounted for under local revenues, and I did not have the advantage of being able to attend the Pasbo Conference this year. But,

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DTSD Webinars: I should explain what Pasbo is. Pasbo is a Pennsylvania Association of School business officials, and they have the annual conference here in Hershey, in March, or usually in Hershey, and I had already had some travel plans, so I was not able to attend.

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DTSD Webinars: But we did have our local chapter, which is called Casbo, which is capital area school business official meeting last week, and they shared a lot of the information that was from the conference, and I think the consensus was for Federal revenues. Most people.

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DTSD Webinars: We're thinking that the and based on the information presented at the Conference that we should keep our Federal revenues pretty much level, based on what our award was for the 2425 school year. So that is what I have for the idea revenue.

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DTSD Webinars: And I think really those are the highlights for local revenue. So I'm going to move on to state unless there are any questions.

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DTSD Webinars: So a lot of this is based on what was presented in the Governor's budget, and I know some people are very hesitant to put the full amount of what was in the Governor's budget. I did do that. I didn't think the increases were that big

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DTSD Webinars: to not put them in. I could have maybe budgeted half of what the increases were, but I didn't think that that the change was significant enough

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DTSD Webinars: from what our actuals are going to be in 2425 to to merit making them smaller. So the basic Ed funding did come from the presentation that I attended through Pasbo for the Governor's budget, as well as the special Ed funding and the

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DTSD Webinars: and the ready to learn block grant, which is now divided into 2 pieces. The foundation and the adequacy supplement. You'll see there for the supplementary reimbursement of basic Ed. That is the line that has.

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DTSD Webinars: That's the name of the account. But that's actually where we have the reimbursement of the real estate tax that we use to provide our homestead exemption. So I did keep that level. You'll see that there pupil transportation was built was based on our trends. So you can see, in 2324, we actually had $610,000 in pupil transportation subsidy.

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DTSD Webinars: I was a little hesitant to go up quite to that amount. I did base that on some historical trends. So I did increase it quite a bit from the 450 from the 2425 budget, but only to about $547,000, and if you, the title of the account is nonpublic and charter subsidy, but that is also a piece of the transportation subsidy. So I just wanted to point that out, since it's a little different looking.

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DTSD Webinars: and let me see and check my notes.

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DTSD Webinars: Oh, yes, 2 of the biggest items are the reimbursement of our social security and Medicare taxes. So what I did there is I. Last week I had an estimated very preliminary estimated payroll amount, and you'll see later on the slides where I talk about what we're working on.

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DTSD Webinars: that we would base those on. So I multiplied the estimated payroll times the social security rate, and then divided that in half, which is how our Medicare subsidy is. And I did the same thing with the retirement contributions. I used the new.

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DTSD Webinars: the new retirement rate of 34% for 2526 applied that to the very preliminary payroll number. And I also took only 97% of that based on my my experience that not everything that goes through payroll is actually subject to to the retirement contributions and then divided that in half. So that's where I

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DTSD Webinars: how I calculated that amount for this retirement subsidy. So are there any questions on that particular line? Okay, so we'll move on to Federal revenues which really I already did talk about when I talked about the idea, just keeping those awards to be the same as what we have in the current year.

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DTSD Webinars: and then the next slide is our other

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DTSD Webinars: our other revenue. And this is a very nice line that that we get, and that is the permanent fund transfers that come from our trust.

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DTSD Webinars: So that is based

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DTSD Webinars: on the 5 year averages of our trust account as of March 31.st Obviously we have not hit March 31st of 2025. I did make an estimated amount for what that would be. We will get a distribution at the end of this quarter. So we know what that amount is. I took that out. And I also reduced that balance just a little bit based on what's going on in the stock market took the 5 year average. And

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DTSD Webinars: historically, we've been asking for 4%, which I would assume that we would continue to do. So that $2,070,000 that we have in that line is based on those calculations. So any question about the trust.

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DTSD Webinars: right?

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DTSD Webinars: So the next slide is just

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DTSD Webinars: not coming up for me is just the

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DTSD Webinars: is the the summary of those revenues that I put together.

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DTSD Webinars: there we go. You can see that with a 0 tax percent increase. We still do have an

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DTSD Webinars: a bit of an increase. And I have that number here.

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DTSD Webinars: Yeah, $567,000 without a tax increase

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DTSD Webinars: based on my preliminary numbers. So the next slide is, I wanted to show what

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DTSD Webinars: 3 different potential tax increases would look like. So I have that number that 41,752,000, with the 0 tax percent increase which you saw on the very 1st local revenue slide.

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DTSD Webinars: And then again, I use the Pde. 2028, with the new assessments, with a 1% tax increase, and that would yield an additional

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DTSD Webinars: 427,000,

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DTSD Webinars: and I know one of the previous tax increases that have been discussed was for the potential debt service for the elementary school. So we, I use that 1.9% tax increase and that would yield an additional 812,000, and that is over the 0% tax increase

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DTSD Webinars: not over the 1% tax increase. And then, if we were to do a 2 and a half percent increase that would yield approximately another additional 1 million dollars over the 0% tax increase. So those were just a couple of scenarios that we put together, not necessarily saying those would be the ones we would recommend. But I did want to show what those kind of tax increases would yield

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DTSD Webinars: any questions on that.

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DTSD Webinars: All right.

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DTSD Webinars: So

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DTSD Webinars: I know one of the things that I think leadership had talked about was the ability to. I think the original budget timeline

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DTSD Webinars: had the approval of the proposed final on the same night as the Finance Committee, based on our our meeting dates and the timelines that are required by the State, since we do have to have the proposed final

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DTSD Webinars: on

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DTSD Webinars: on display for 30 days before we approve the final. And we do have some considerations with when we're going to let the county know that we would like our tax bills run, which

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DTSD Webinars: the sooner we do that the better. It gives them time, and then we can get our bills out in time, and if our bills are out in time, then we start our collections, which means we earn money more. We earn more interest. So to me it's important to, and I think taxpayers are always so looking for those bills on July first, st so

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DTSD Webinars: special meeting will be added.

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DTSD Webinars: board to vote on the proposed final budget on May 5, th and that will give the Board a week to digest what's presented at the Finance Committee on April 28, th and the other thing is a budget. Workshop is added for the board on April 14, th where you will have both the revenues and the expenditures and as well.

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DTSD Webinars: You will have some projections for this year, because the General Fund Budget Fund balance is also a part of what happens and what needs to be presented in our final budget. So that is just a little bit of an updated budget timeline.

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DTSD Webinars: And then my very last slide is just to let you know where we stand. We have met with all of the building principals and all the department heads at this time, and obviously I've completed preliminary revenues. So what I will be working on in the next couple of weeks is to finalize those salaries and benefits. That is a big project that I get support with

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DTSD Webinars: from Dr. Rafe Snyder's office with Mrs. Wagner. So we're working on finalizing those numbers, and as well, I will be looking at projections for 2425, so that we can have a projected fund balance. So that is what we are working on now.

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DTSD Webinars: So any questions about anything for what we have so far.

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DTSD Webinars: This is Lindsay Drew. I just wanted to provide for the board some background on where some of these dates came from in our conversation, because I had not had the opportunity yet to share it with the board about the proposed special meeting date. When we were talking through the timeline and understanding that we wanted to have an informational budget workshop for the board that is currently scheduled for April 14.th

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DTSD Webinars: Knowing that our Finance Committee date was falling on the same date that we were planning to have to approve the proposed final in order to meet the 30 day. Timeline, with the way the calendar lines up this year. It was making it challenging so initially. We had talked about having a special meeting to approve the final budget in June, as we started looking at the calendar, and where that would even fit in

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DTSD Webinars: it was pushing us well into

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DTSD Webinars: beyond June 15, th to be able to do that. So, as we kind of talked through and and looked at the dates and went through several different scenarios, it seemed to make the most sense that we would hold a special meeting solely for the purpose of approving the proposed final budget on May 5, th so that

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DTSD Webinars: by June 9, th we'll have satisfied that 30 day requirement, but it also will provide the Board the opportunity to have a budget workshop as a board on April 14, th and then be able to talk with the Finance Committee and go through all that, so that the Finance Committee has the opportunity to be to recommend it to the Board, so the Finance Committee will be.

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DTSD Webinars: The Board members on the Finance Committee will have already had the workshop and have an understanding of what the expenses are going to look like, and where that balances out.

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DTSD Webinars: so that when the Administration makes a recommendation regarding a tax increase, because if you recall, we had had the plan for a 1.9% to continue in order to build the capacity for the debt service. But we're looking at the 0% option right now. So that was kind of where our thinking was on it. To make sure that we had enough time to be really transparent and have those public conversations about all the different aspects of the budget before

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DTSD Webinars: we get to June 9.th

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DTSD Webinars: And then the last item, and I'm still deferring to Dr. Winslow. Thank goodness, are contracts.

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DTSD Webinars: so I don't know if anybody has any questions or comments about contracts.

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DTSD Webinars: All right.

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DTSD Webinars: Turn it back over to you, Mr. Rosa.

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DTSD Webinars: Thank you.

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DTSD Webinars: Okay.

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DTSD Webinars: excuse me. So at this time we are on Item Number 6, public comment, is there anyone online in the public that would like to comment.

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DTSD Webinars: There's nobody in house, nobody online. So I would like to a motion for adjournment. Item number 7.

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DTSD Webinars: So move Jennifer Renz.

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DTSD Webinars: Second, Lindsey Drew.

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DTSD Webinars: Is there any discussion?

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DTSD Webinars: The standard voice post all in favor? Aye, aye.

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Stewart McCarver: I,

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DTSD Webinars: Opposed meeting is adjourned at 5 55 pm. Thank you.