GASD School Board Special Public Work Session/Meeting - 3.16.26

001Let's >> do it. >> Doing it. All right. Good evening everybody. Thank you for coming a little bit earlier for uh our special public work session. So, this meeting is for um reviewing the June 30, 2025 balance sheet um taking place here before our normal board meeting at 7. All of our board members are here except for Dr. Moyer and um Mr. Sigman, both of whom are excused for this evening. Please Oh, wait. I don't have to do the pledge. Okay, great. I will save that for 7 o'clock. Excellent. Um there is no public comments so we are moving on to item five the balance sheet Belinda. Thank you for preparing this for us. Good evening. Um so before you this evening we're going to have a presentation of the balance sheet. Um so first

002I wanted to start off and just quickly explain uh for some new members as well as for the public um you know our um school district finances is obviously very different from industry and corporate standards and so I'm going to briefly if you don't mind review a couple of things just kind of like set the stage before is to indicate what the balance sheet really represents. So the next slide um if you'll kindly move forward. So the purpose of finance the two main objectives uh versus school district finance and industry corporate finance. Um school district we have the accountability for public funds and we have many compliance of ru r r r r r r r r r r r r r r r r r r r rules regulations and school code industry is

003all based on profitability and value creation for owners and st shareholders. um the stakeholders themselves for school district finance it's taxpayers governmental agencies that we work with uh Pennsylvania Department of Education school boards and auditors industry is your investors your shareholders creditors and management focus for uh and the purpose of the finance um on school districts it's budget adherence and stewardship and making sure that we're using our funds in compliance with what our budget uh is and developed industry is bas based on profit growth and financial performance. Um, school districts are here to operate on a deliver educational services while companies operate to gain profits. In terms of um accounting structure, school districts follow governmental accounting standards board um and we use fund accounting to track restricted and unrestricted funds. The chart of accounts for

004the PA uh local agencies is 160 pages. Gazdies is summarized in 49 pages, but we have an accounting system that is more detailed structured for different reporting requirements by PD whereas we have over 16,348 accounts that we monitor industries and companies. They follow generally accepted accounting principles is issued by financial accounting standards board and they use a single entry accounting profitability on system. So of course uh the levels of accounts are not quite the same as what the school district finance world is. Next slide. Our accounting structure in itself uh for school districts you can see that um money is in funds such as our general fund for daily operations, our capital projects fund, our debt service funds, special revenue funds which is grants as well as um fidiciary accounts. Each fund has its own

005revenues, expenditures and balances and the purpose is to ensure legal restrictions on public fun money that is being followed uh to the letters of law. Industry and corporate accounting far different in in in some aspects which they use an integrated one accounting system clearly have revenues, expense, assets, liabilities, equity and they focus on net income and financial position. Next slide. Sorry, next slide. I missed. Unpologize. I apologize. Please go back to the previous one. All right. I follow. Sorry, I have two backtoback pages on this. So, financial statements produced um far different school district versus industry. In a school district, we have a statement of net position, statement of assets, our governmental fund balance sheet, statement of revenues, expenditures and changes in fund balance, and a budget to actual reports. And it's the emphasis is

006to know how money public money is being spent and used. Industry of course is balance sheet, income statement, statement of cash flow, statement of shareholders equity. And again, the f the emphasis is on profitability and financial performance. Next slide. So when we get to begin to talk about the f balance sheet, what I like to start off with is say we need to start with a big picture. The school district's balance sheet is a snapshot of what the district owns, what it owes, and what resources are remain available to support education at the specific point in time. Our balance sheet, page 18 of the audited financial report ended June 30th, 2025. The entire report can be found at that link. we can make that link uh publicly available. For some reason, it's not being able

007to access it here on this presentation. Uh but it is available on our website and um our our full audit of financial report is is listed there. The uh balance sheet is one of the most three important fund statements. It's also related to a specific point in time, the last day of the fiscal year. The most important fund statements include the, as I mentioned, the balance sheet, statement of revenues, expenditures, change in fund balance, statement of revenues, expenditures, and change in fund balance, as well as what's called a budget to actual analysis. A balance sheet shows our financial position, not its yearly spend. In government accounting, this is often called as the statement of net position, which follows the governmental accounting standards board. Next slide. So as we move on our um we'll review these

008next few slides in terms of assets, general fund, capital projects and bond and then we'll move to liabilities and then we'll move to equity or fund balance I should say. So the assets for the general fund first and foremost the cash and cash equivalents. Um the number that's listed there specific point in time again 7.2 million it's ACMBB use and PISLAF which is Pennsylvania school district liquid asset fund. We also have a small portion of of pleot funds which is um Pennsylvania local government investment trust. All these are permitted investments and they're less than one year. We're not permitted to take out investments past one year. The first 250,000 is normally FDIC if in the event you know uh for further providing information and the rest of course of those funds are set up in

009CDs and flex CDs. Uh we put them out in accordance with our cash flow projections um in order in order to when funds are due. Um but again this is the result at the end of the year is a cash balances um as audited. Next in line is due to other funds. This is um note six, excuse me, due to other funds. This is note five of the uh auditive financial reports. These are funds due from the food service funds. We have internal funds going back and forth between food service uh fiduciary cap projects and general fund. And this is due from the food service fund due from other governments. This is note six of the financial report. This is the federal, state and local funds from agencies. Interest receivable. This is acred interest for

010the general fund from PISLAF which is the Pennsylvania school district liquid asset fund. Taxes receivable and note four which is real estate earned income and reality reality and other other receivers receivables is all other that's local education agencies that we invoice uh for services for uh services that we provided during the year as well as any other invoicing that we took care of at the course of the year which is measured at the end of the year such as we send invoices out for the school board and so forth like We have prepaid expenses. Excuse me. I'm sorry. Inventories. First inventories are all our general and facility supply inventory. That's a measurement. Prepaid expenses is our general fund prepaid expenses. These are expenses that are paid in advance um due and payable and actually uh

011transacted then in the course of the following year. So we prepay those expenses and then we take care of a transaction to make sure that they line up appropriately. Lease receivable. This is the Vita school charter lease. Um they are utilizing our Eisenhower building and this is a short and long-term requirement as stated by Gazsby. Um so this is a relatively new in the statement of fi financial accounting. So this is um information was provided detail was provided to the auditors and they provided the uh gazsby requirements. So of course we have to measure that as an asset. Lincoln benefit trust reserves again Lincoln benefit trust is where we hold our medical in medical dental and life insuranceances. Um so this is an asset. This is restricted fund balance. This is a balance that is

012held off our books in the essence that this is the balance that is held at Lincoln benefit trust. This is handle to handle three months worth of reserves um in order to make sure uh the any reserves are needed in the event of uh increasing in expenditures. Um back to note four um which is the taxes receivable. They're usually collected within 60 days. Um that is indeed more detailed is in note four of the financial statement. Um and just in simplified terms assets really are um and are and represent everything the district owns and can use to provide education. Not necessarily used but it's an asset which is um something that we own and it will change in time. Um these numbers are are not a persistent sta uh stagnant number. These are numbers that

013are developed by year at year end and they will change as beginning of July 1st. Next slide. Then we move on to the assets the capital project reserve fund. Again you'll see cash and cash equivalents and investments. They're held at PISLAF. Again these are all outlined in note two of the financial statement. due to other funds of 10,000. This is due from the capital reserve of fund 32 and of course the interest receivable is acred interest with US treasury flex CDs with held with pislaf. Next slide. Our assets of the pond project fund again cash and investments all held at pislaf to the 7.4 million. Um again refer to note two of the um fi financial reporting of the audit report excuse me for more detail. Um next slide please. So now we're moving on

014to our liabilities. So liabilities are financial obligations that the district owes and these are separated into funds again. So the general fund or accounts payable at year ends. These are for services that we owe um payments to to vendors for for product and supplies that we've ordered. Um due to other governments, this is for example um other school districts that we owe for a possibly a student being housed at the district, you know, holding a space for education because one for whatever the reason we may not have had room at the particular point in time as well as the pen prison education is in this number. More information can be found on note six of the financial report due to other funds. This is an inter fund payable between um funds and that information can

015be found in note five of the financial report. Acred salaries benefits with withholding. Um more information the detailed breakdown is on note 8 but this is 8.1 million. This is acred salaries with retirement, social security, insurance, workman comp, payroll withholdings, all designated from the payroll acral done at year end. This captures the teachers contract pay through August because their contract year goes from an August to a it begins in August and ends in July. Um as well as it includes the hourly classified based on time worked in June but paid in July. Um and then of course other liabilities are our one main account. Um typically the liabilities are our commitment that the district must pay in the very near future. Um many times it's within the following July, August, September time frame. Next slide.

016Our capital projects reserve fund. We have uh one accounts payable an outstanding invoice for $158. Next slide. Our capital uh projects bond fund. We have outstanding construction invoices for 219,277. We now we move on to next slide please. Deferred inflows and resources unavailable tax revenue. This is note four. Taxes collected after 60 days outlined in the financial report of note 4. I apologize I said that twice. Um then of course we have the unavailable future lease rental payments. This is the Gazsby 87 lease payments lease term and mortization on the lease over a number of years liability and remaining term. So, uh, the auditors help us with this, uh, this, uh, transaction simply because, uh, Gazsby 87, um, is not something that we do dayto-day and it's typically, um, a year-end, um, transaction. Unavailable PPS

017initiative funds, um, $1,85. While I have the account number listed there, this really is, uh, pupil services initiatives. This is clearly related to the helping hands and the warrior wishes. So, uh we have to document that as inflows and resources on um the balance sheet. Uh next slide. Now we're moving into the section of fund balance. So, uh general fund fund balance. So, non-spendable this is money set aside by the district. This is inventories and prepaid expenses. These are measured at June 30th. These are uh obviously they're an account balance similar to the exact same number of what our asset is. And so therefore they're non-spendable and they're used for specific asset um not for use for other common purposes. um on the fund balance general fund what I what I would like to say

018is you know there's a sometimes general fund balance there's a misconception within the community as well as some colleagues of mine um one of the main concerns is well if you've got and let me and apologize let me move on to the next slide please this will be more more of a help here to um well before I actually the next uh restricted. So before I mention this, so there's four areas of fund balance. There's non-spendable, there's restricted, there's committed and then there's of course um assigned and unassigned. Five areas. So second area is restricted. Um this is a general fund of Lincoln benefit trust. This is the exact same as the asset. So uh while we record it as an asset, we also have to record it as a restriction. Uh these are not

019available for general appropriations. These are specifically held in trust at LBT. Next slide. Now we move on to the commitment. The commitment of course is um typically committed by the school board and not available for day-to-day appropriations. So, capital improvements, $7.1 million. This was set up in future FIP uh construction in progress. Um FAP for some of the members of the board is the blue section on the capital reserve plan which will outline all those major uh initiatives that we have going on. Um future FIP is uh these were set into place since 78 and they were through 2002 2223. Previous boards set these funds in place as a me stop gap measure to um be able to borrow more funds and to be able to set up funds for uh future bond payments uh

020as well as to help fund those bonds. So, um, what I like to say also with this area, while this is set up and set aside, this takes board action to move and to to to address moving. Um, this is not something the district administration can move and set aside. This is clearly uh onetime capital improvements funds. This is uh typically when your debt rolls off as well. Um, your wraparound debt is utilized to help build in additional debt. So you're you're continually making you the same amount of payments which you've always had. Um it's a a measure in order to uh set yourself up to not continually tax the taxpayers. You're basically using the same level of funds which you've used before. But this these funds were set up for the main purpose of

021future um borrowing capacity. There was also a pie setup of $3 million. This was set since 2003 2004 because about that time uh the state department came out and the piecers board came out and said while your rates were below 14 and 15 they're going to go above 30 and 35%. So the board at the time was very forward thinking of course and permitted the commitment of these piecers amount. You'll also note that when we talk about a budget yeartoyear we use a portion of this amount. So how we do that is is we compare year-to-year rate increases of piecers and we we have a formula set up Mr. Forom works with this a formula set up to pull certain amount of funds from this account and bring that in a revenue to help offset

022just that little bit of an increase in the piecers. Then of course our debt services. This is relatively new. This is two-year of ACTI that we're building in. And so um if you'll recall two years now in a row, uh we've set 1% aside for ACTI. That equates to be about approximately 320 $40,000. So this as we set those funds aside, we put them in as expenditure on the district funds budget. As year ends, those funds don't go spent because we're building in that period of time. But these funds are committed for the purpose of future borrowing for our commitments that we would need to pay for ACTI. Next slide. Next categorization is the assigned portion. So we have in the assign portion this is typically um administration's purview to do such assignments and I'll

023explain why these assignments occurred. So the 2526 budgetary reserve of $1.6 million. So when we start establishing the budget last year we had a shortfall in the budget of $1.6 million. So when we ended the year we you know it has been our history here at the district that as I mentioned established in 1718 that um any use of fund balance is used um and is assigned accordingly for the following year. Um it's very likely at some point we're not going to have any of this. Um, we ended June 2025 with uh nearly a quarter of a million dollars in overexpendure. While we budgeted that we were going to use $1.6 million, we did overexpend by half a quarter of a million dollars. So, this money still sits there um at this particular point in

024time. So if everything were to fall through exactly where the current f current current year lies for the 2526 year, the anticipation is is that $1.6 million will be used uh as we finalize this current year. um capital improvements. Apologize for the error, but this is a capital reserve assignment that was set up and um I'm sorry this was uh let me think here my notes. I think this was set in 2022 20 excuse 2122. I apologize. So it was 2021 2122 simply because um this was additional expenditures unspent as a result of some of esser funds. So we knew that we would have a need for capital reserve and so we've set these funds up for the purpose of capital reserve. Now I'll hold this thought for a little bit later on. Um but

025our future medical cost again um we had better performance two years ago uh to the point where um instead of sending a million dollars to the trust and sitting in reserve, we are retaining the $1 million here on our fund balance. So we can gain the interest on the million dollars. So then when the rates do increase above uh the rates that we can typically handle in the annual budgeting process, we'll pull from this account. Our safety and security enhancements um 1891 184. This is a result of safety and security grant. So two years ago, we put into place our school police force and we had planned budgeting uh x number of personnel in that budget and um accordingly after the budget was approved and we were proceeded on we were notified that we were

026a recipient of a safety security grant which we could use to help set up our police force and which we did. So the general fund operations of the budget was unspent because we utilized the grant. So rather than having those funds go into unassigned, we assigned them for the purpose of use of safety and security. Now this number will change the end of this year um because there are some plans uh with the safety security um director that uh these funds will likely be reduced. technology improvements was very similar in nature. So this is $700,000 as a result of esser esser came along you know we had again I'll go back to um we had over $8 million is that what it was Tom do you remember? Um so we had esser 1 2 3

027and we had some other grants afforded to us. So out of one of those essers and I apologize I don't know the exact one there was the opportunity to uh buy additional technology supports for the district. So we used grant funds to purchase technology while we had the funds sitting as an expenditure plan in the general fund operation. So again, we did not spend our general funds. We used err funds. So we set those funds aside because we will know that we will have to do technology improvements year after year. Um the technology department has a plan in which uh they are continually updating the the laptops by department, by grade, by building um and so forth. So, uh, those funds while they current currently remain there will likely be used, um, relatively soon. And

028then, of course, our future borrowing was similar to the capital improvement for FIP as well. Next slide. Now, the last portion of our uh, fund balance is unassigned. And unassigned truly is um, what is available for general operations. But I will say with a caveat, these funds once used and once depleted are um not available to help operations. Our policy limitations, our policy says that we are to keep our unassigned fund balance between 6 and 8%. So we ended the year June 30th at $4.7 million of unassigned funds. Um so the um fund balance for capital reserve. Next slide. These are for capital improvements fund 32 $11 million. This is part of CIP unspecified. And then the next slide if you could just quickly is this is the bond fund. This is capital improvements. This

029is from the bonds that we received in order to take care of the bond of 2020 and 22 which is the James Getty and the Lincoln project. In fact, we are still open and have payables to the Lincoln project as of June 30th. This $7 million is um will be brought down considerably simply because um the the Lincoln closeout project is underway. We also have the team room uh potential here and also um any portion that is available after the closeout period of sending money back to the government because of arbitrage which is a million dollars. Um so there's if there's any funds left will be utilized toward the admin project. If you could do the former slide please. So it's between the cap bond fund and the cap reserve fund. when I was asked

030do can we fund these projects between the two funds yes we can. So um the funds are available and the they are set there uh to address um accordingly and that will foreclose our quick rundown of our fund balance. One thing I would like to say, as I was going to mention before, one of the common um public concerns is when you see fund balances like these, these are large numbers at a specific point in time. People think that, hey, they're there for appropriate for, you know, why why would we need to raise taxes? They're there. Why don't you use them? So, you know, and we have millions in fund balance. That's no that's no lie. That's, you know, physically seen that the numbers are there. So, why raise taxes? Well, the balance sheet will

031show total financial resources, but not all those resources are available for everyday school operations. So, and at times the unassigned fund balance, which is the only really truly fund balance that we work with in general operations, can fluctuate up and down dependent upon how um the budgets proceed, how state money is received, how local money is received. Um so really it is it is not that we're um holding funds um we have funds set for a specific purpose that's not always available for general appropriations. Um I also like to when I talk about fund balance and assets and liability is like what truly is fund balance? Fund balance is used to help pay our bills over the summer months. we have um before taxes start coming in, we are able to use um those funds

032to help pay our bills until that occurs and we're able to set up a new cash flow statement. But another way uh to understand just clearly how all this works in more of a our own format. Um I look at it as sometimes as you know assets for a school district, assets for my own family as my car and my house. I own them. I I those those are my assets. Assets for our district are those many of those things that we just reviewed. Um while I don't have this, many households do. The liability is your mortgage. Um so uh andor bills that you need to pay. Those are liabilities short-term versus long-term. And you know where are in terms of my own household um fund balance is considered net position which is equity. that

033is my equity that I have available to me that I am rated on how I can proceed if needed for a loan, you know, for a borrowing, uh for school tuition for my college student. Um, so it does it does matter all in perspectiveness of of having a healthy fund balance because not only that you're we are rated on by standards and poor and Moody's um we are rated on our fund balance those appropriations can change if in the event that when we do do go to borrow and our fund balance is considerably dropped our rating will drop which then does not make us available look very financially stable for investors. Um so there are multiple things that kind of go into having fund balances that um while one can plan the best that you

034can, uh you never necessarily have um a lot of fund balance to help carry you forward when some of these things are specific point in time and to to be used uh throughout the year. So I know this was a lot of information. Um fund balance and talking about the balance sheet is not an easy task to do. Um as I as I tried to reference this financial report very T2 oriented it's shared with multiple folks not just our board. It's shared with the Pennsylvania Department of Education with the office of budget at the state um our investors um Moody's standards and poor um this information is shared also for the federal programs to make sure that our financial stability is intact and that we're meeting all compliance by the federal government for the monies

035that come. So it is relatively important and we take we I myself take it at heart uh to the work that our office does and our administration and our staff does uh simply because it's it's all a working fluid system that um we do not work in a single environment. We work with many people around us to get a job done. And um while I would love to be more timely with this audit def financial report, there's a lot of tasks that goes into it um planning each year and sometimes some unforeseen circumstances that come up that don't necessarily get you to the uh exact time frame in a timely manner that you would like, but we do get there. Um and um I'll open the floor right now for any questions. >> Yeah, thanks

036Blinda. I think uh particularly found the beginning of that the context you provided for kind of you know setting the scene between school district finances versus industry and corporate finances that people may be more familiar with. I think that's helpful um to to see what those differences are and see the breakdown that we have in our sheet. Um for the rest of the board, this is going to be time for questions, but I'm going to set a couple of parameters in place to kind of help with hearing people's questions and with time. Um, we do have a meeting at 7, so I'm gonna end this meeting at 6:55. Uh, so it gives people time to go grab water, go to the bathroom if you need to. Um, and also I'm going to ask that if

037you do have more than one question that you keep it to one question at a time in case others have questions uh to give people a chance. Okay. So, I'll open I'll the floor is open then for for questions if there are some. >> I'm waiting. >> Well, I'll begin. Thanks, Kathy. >> I really just have one question. Um, can we go back to the financial statements slide that lists the different types of statements? Right. So, uh, school district versus industry corporate the school district uh, reports are those uh, mandated to us? PA school code tells us this is these are the forms we have to use versus the gap forms. >> Yes, these are required. We have additional filings with the department of education um our our budget as well as our annual financial

038report is is required to file. So these are standard forms that are part of that reporting process and a part of the financial report. >> Cool. Is there another question? >> Dave, go ahead. You can ask a question. >> Well, I got I wanted >> I know you do, but go ahead. You can you can start since people are still processing. >> Okay. So, under investments, we have 19.3 million that you showed up there. So, >> sorry. So, we have 19.3 million in investments under assets. Um, what are they usually expended for? How do they come in and how do they go out? It's on page 18. Do they accumulate or do they deplete? >> Where I'm apologize, Mr. Sites. What's 19 million? Yeah, the first million right there. Yeah. >> Yeah, sure. That's the

039cash correct. They they This is the balance at the end of the year. they will deplete as we begin the new year. >> Okay? Because you also have cash above that. So what's the differential between the two? >> It is it is the terminology that is used and and um >> so that is just cash flow for operations >> both. Yes. Okay. >> Cash and cash equivalents >> which is more readily available. The investments are set aside CDs. Okay. um and flex CDs um earning >> a relatively good rate. >> Are they on sweeps? >> No, we do not do sweeps. >> You don't do sweeps? >> No. >> Okay. So, your capital project reserve fund of 7.9 million and your bond fund. So, the 7.9 they are restricted for specific projects or they're unrestricted

040>> the cap. Okay. So any >> in the assets >> any dollars associated with capital projects reserved and capital bonds are restricted in the sense that it can only be used right >> for capital projects and or bond funds >> but where did it come from the not the bond fund I understand that's borrowed money >> correct capital projects fund is >> the reserve came from where >> so it's it's a combination of years of putting money aside >> okay >> from a year to year of help developing that capital pro projects plan >> and where does that flow down to the funds at the bottom >> to the funds at the bottom. So um >> what's the correlation between that reserve fund and as an asset >> which then needs to flow to the

041fund in your bottom somewhere? >> Yeah, it's a fund balance. So it's restricted. >> They're both restricted. >> Yeah, but where is it down under the fund balances? What what what gobbles it up? Which account? It's it's a restricted fund balance for capital improvements. >> So the asset above >> so it's in the 11 million. >> Okay. So that that actually flows downward to the 11 million. >> Mhm. >> Okay. So that goes in the 11 million. So we have 11 million there. Then then what's the differentiation between the capital improvements which is under general fund and the capital project reserve fund of 7.1 versus the 11 million. Once the dollars are appropriated into the capital projects reserve funds, they're not coming back for general appropriations. So if there's reserve funds in the general fund

042which is assigned, they can be reassigned and or moved to the capital projects front. >> Okay. But we have 11 million under capital reserve and we have 7.2 in capital improvements. And you said that that one was for the blue sheet >> of our five-year plan right here. So my question is that is unrestricted. Correct. >> So the $7 million >> 7.185. >> Yes. That's unrestricted. >> That is committed. That is not unrestricted. That was committed by the board. That was the stop gap. >> What's for funding for future projects? >> Okay. But what's it committed to? >> It's committed by the board to use for funds when we borrow money. >> Only when you borrow money or to pay for capital improvements? when you borrow money, >> but it's under the general fund section.

043>> That's correct. The general fund committed those dollars. It was a board action. >> Uh, but I thought you said that was covering these items, the blue line. >> Uh, no, the the capital projects reserve funds, the $11 million is covering the blue item, >> this item. These right here. >> Yes, that's correct. >> So, there is money for these projects. Uh I I want to be clear like there is money available. It's not money to fund exactly what they are. >> No, but it's money available if if you voted to fund this. >> With a caveat, I will say these funds in the capital projects fund have to take care of the administration building HVAC project and the team room um once those awards are done um following this you know this process after

044the later this evening the board meeting. So I think if I recall correctly, >> so am I to assume we have >> Hold on one second. Let's let her finish that question. >> So if I recall correctly, the team room was what I'm just going to use approximately $2.5 million and the admin building was uh estimated at now of course we haven't gone to bid yet so we don't know what those two numbers are but we're using a budget of around $6 million. So, um, between the capital projects bond fund is 7 million, paying off James, excuse me, paying off Lincoln Elementary and the capital projects reserve fund of $11 million. Between those two funds, that will take care of the admin building and the um team room. >> Okay. But what's what what take

045what does the 7.2 take care of? Again, that is committed capital improvements for future bond borrowing. >> Okay. For future Okay, >> Dave, I'm gonna I'm gonna pause the questions there for now to make sure that other people get a chance if they have questions. >> Are there any other questions? Ryan, go ahead. >> I'll step in because I think it's along the same vein in terms of just trying to understand the restricted funds in particular. Um, and something that I I need some clarification on is the concept of arbitrage for those funds. Um, cuz it's and and you can correct me if I'm getting this way off base, but it it seems like there's a little bit of use it or lose it, not only with those funds, but also some penalty associated, which

046is this arbitrage. Is that is that accurate? >> That's correct. So, when you borrow funds, bond funds, you have a limitation of a three-year waiting period to spend down the majority of the the bond. Um, that did not occur uh with our 2020 borrowing. Um, we heck, we had a great interest rate like we borrowed at 1.45%. Um, and we've been earning interest on that, which is a great thing. This I mean, having arbitrage is not a negative thing. It's a positive thing, but we can't capitalize on that additional interest we've earned after the th close of three-year period. We've got to send if we haven't spent enough down of the bond money, we have to send that back to the IRS. It's in the rules and regulations of of filing our debt instruments. So,

047um out of the capital projects bond fund, while at year end it's 7.6 6 million. Um we are need to maintain at least a million to pay back arbitrage. Uh we are quickly approaching arbitrage on 2022. And so um moving forward with these projects are going to bring those balances down. So hope local our our goal is to reduce that arbitrage back to um the IRS. uh we will not refinance or borrow because we're never going to borrow at the same exact amount um to to take care of this. So um it's not a bad thing. Um you know we would have capitalized on the interest if we would have handled paying things and doing projects within the three-year period of which we did not. Um, another thing that uh added to this was the

048ESSER. We were able to take a portion of the HVAC at James Getty. Um, $2.3 million was available. We did not want to lose those ESSER dollars. Um, so it was a timing issue that we had to move forward with that in terms of that. But, um, arbitrage is something that we we have to take care of. This is not something that we have an option. Uh we did send a check back to the IRS already, but we need to maintain at least a million um more to go back. Um so uh currently um in your board reports this evening, the $7 million is now down to 3.9 million because we've paid out 3.7 million so far in in projects in in some of our projects. Um so of course out of that 3.9 million

049as of and again this is as of February um a million will come off of that. So we have approximately 2.9 million available to address the stadium and then of course the capital projects reserve fund of the 11 million will address the admin building. So with 11 million. So is that legislative restricted or is that just basic board policy? >> It's it's restricted in law that once you send funds over to the capital projects and once you have funds in the bond fund, you're not able to bring them back to the general fund operations. All right. And then the surplus noted on p on note one and note 8 and note uh oh let's see note 71. So that surplus just went straight into the general fund from last year. >> Um I'm sorry. Repeat

050that question again. >> Page four and page 71. It's the same number. It's 2.654 654 million. So that surplus. >> Are you looking at the financial report or >> I'm looking I'm looking at this whole book. >> Okay. So page again. So >> page one or >> I'm sorry, page four and page 71. It noted a surplus over the funded balance for expenses and income was 2.6 million surplus. Net operating cash in my term. more received than went out last year 2024 to 25. >> Well, while uh Belinda is getting that pulled up from the book, I also want to just check in since we're in kind of our final five minutes. If there are other board members that have questions, >> uh page four in the financial highlights, that is revenue that comes in,

051>> right? So, it goes into the general fund up top then. >> So, what happens what happens when you receive more revenue? um that automatically go into the unassigned fine balance. You're not appropriated to use it in that year. >> Okay. That's what I want. >> Yes. No, I'm sorry. What was the other page? >> No, that was it. It's the same number. Okay. It's noted two places in your audit. >> Okay. Mhm. >> Okay. >> Are there additional questions from the rest of the board? >> I hope this information was helpful. >> Yeah, there is. There are many numbers. when I reached out to the auditor just to make sure with our financials, she's like, "I've never heard anybody do this before." But I'm like, "That's okay. That's fine. I love to share information."

052>> Yeah. I think overall is very helpful to have um like I said, a lot of that background and then also just some some of the breakdown of the different categories that we use when we're budgeting for schools. Um we are not done with the budget process, so there will be many more opportunities to ask questions. Um, and thank you to Belinda and Tom and the rest of the team for putting that together. Um, we will take a a brief recess uh in between meetings here. So, we'll be back in about 9 minutes. >> Oh, I'm so sorry. I guess I do need to call for that. Any additional questions? Great. Thank you. I'm looking for a motion to adjourn this meeting. >> So moved. >> Thank you. All right, good evening and welcome back

053to some of you. Um, and welcome to our regular board meeting for this evening. The purpose of this meeting is to conduct the business of the Gettysburg Area School District. Board of directors meetings and committee meetings are open to the public, but are not public meetings. All school district residents who wish to make public comment should sign in prior to the start of the meeting and request to speak during citizens participation. School district residents wishing to speak to the board shall do so only during the citizen participation section of the meeting. Public comment is welcome and all issues will be referred to the appropriate board committee or administrator. Comments will be summarized in the official board minutes which will be available by contacting the business office. We did have a special meeting prior to this

054um which many of you were able to learn about the budget for. Uh we will be hearing more about the budget as we keep going. Our board uh members are all present except for Dr. Moyer and Mr. segment who are excused this evening, please. Oh, I I didn't say this. Please take a moment to silence your cell phones and other electronic devices and rise for the pledge. >> Yeah. Getting back into it. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. All right. Uh, for notices and communications, do any board members have questions on our 31 to 34 reports and activity summary? Go ahead, Kathy. >> Well, I do. I just I just

055would like some clarification. Every time I look at the food service report, my heart breaks a little bit. Seriously. So, 76.9% of our students receive free and reduced lunch. I'm so glad that we can provide that. Um, you mentioned to us at an earlier board meeting the number of our students who are unhoused. Can you remind me of that number? >> And if if not off the top of your head, maybe just email that to me. >> Yeah, I'll get that to you. I don't have it off top of my head, but I'll get it to you. >> Okay. Thanks. And we do offer services to unhoused students. >> We do. >> Can you remind us what that is? >> Um, I will Can I get all that? >> Absolutely. all that information for you.

056I don't want to I don't want to misrepresent anything. So, I'll get all that information for you. >> Thank you, Dr. Mner. >> Any additional questions on those items? >> Okay, we're going to move on to 3.5, which is the assessment budget review um with Belinda. Back at it. >> Yeah, sorry. Um All right. So uh quick budget update along with assessment discussion. So I believe in the previous board meeting Mr. Sites had mentioned about receiving assessment county data. So I wanted to present to the board um the information uh of the what we had and the differences between the two. I know um he mentioned about a $3 million shortfall. This presentation will help represent that as well as we'll talk a little bit about some budget. All right. So next slide please. So

057um our November certified numbers and those are the exact same numbers that was provided by Mr. Crumb to Mr. Sites. We utilized those at um our February 17th meeting. The November certified is the assessor's office by November 13th. Um the real estate value was listed there. Of course, we added assessment projections and additions and values. We also took a look at some of the parcels that were changing and coming off of our roles. So therefore projected July 1 of 26 um we had a value assessment value there um taking it times our Gettysburg our estate real estate mill rate of 11.489 it would have produced $40 million. However, we need to take into play two reducing factors to that number. One is the 1.9 million, which is the state gaming funds with a small $54

058portion. And then the second is the 3% on collectibles. So while um it's uh taking the assessment times the mill rate would produce one value, we need to take into account those two numbers which is approximately um $3 million difference um from the number that was commented at the previous meeting to what we projected in our budget report u for the February 17th meeting. So at February 17th meeting we had $37.3 million that of real estate dollars that we were accounting for for the budget. Um now I will like to state that the state gaming funds those numbers that are developed there are um the 202526 gaming funds. So we know that we received $ 1.9 million for this year. Those numbers don't come out until about May 1st. So that's what kind of one

059of those last minute items that we addressed our budget to simply because the certification is not provided till then. Um you'll see a change in $54. This is truly the year before. Um this is the unappropriated portion. Um, and so this unappropriated portion rolls right into the next um, appropriation simply because you're you're not able to take 54 uh, dollars appropriated over 7,368 parcels um, accordingly. So there's always when you're doing the calculation from what the state certifies, there's always an undistributed portion that will carry over year to year. Uh it's not that we're utilizing it uh or using it or forgetting it or not use look acknowledging it. Um we do carry that number forward moving each year um to appropriate those dollars back out. So this was at our February 17th meeting we

060had $37.3 million of of uh real estate taxes. Um again our tax collection rate is 97%. Um and so of course our uncollectible portion but which we do budget for is 3%. So the next slide please. So our March 2nd budget meeting we received an update from the county and um you'll note that the 38 million difference to the previous slide is $713,000. So of course there was a change in assessment. It was an updated number on the additions and values and estimates that we feel that will hit the the the roles until like July one billing cycle. We also had an additional loss uh value that we know that's going to occur. Um some property change and appeals. So um the same same scenario. So we go down to 41 million uh with the

061planned intentions of 1.9 million there or thereof reduction in gaming funds. So, our bud our budget meeting that we held on March 2nd showed real estate tax collections at $38 million. Next slide. Uh February 17th, you saw the same slide just as of bringing it forward just to keep it at the forefront. So, this is where we first started and where our gap was um showing 0% um $6.2 million. Since then, next slide. Last meeting I discussed where some budget reductions occurred and Miss Harrison had asked where that was, what the list was. So, of course, I know why I spoke to it. This is this is exactly what $3.1 million reductions came into be um in order to get the number down for the budget preparation. So, the next slide, please. And I apologize,

062I should have repeated those. So we examine two elementary positions and the class size with intentions not to fill two classrooms. We had attritional retirement savings. So of course um the traditional savings is typically when uh you estimate new new replacements coming in and it's definitely not at the current rate going out. So we capture those and we reduce the budget accordingly based on that. um some tuition paid to outside services uh and special education in terms of extra autistic supports. When the budget was initially developed, um we needed to do a deeper dive into those accounts. And so, uh people personnel services and myself sat down and we reviewed some more of the tuition and special education as well as cabinet did and we came up with some numbers that we felt is more

063a reasonable approach to budgeting. So therefore, we reduced those funds. And then of course the cyber charter rate per student with a new PD363 form and of course we removed completely the budgetary reserve that was in the budget. Um $3.1 million was the expenditure change. Next slide please. So again our goal is to get revenue expenditures to match and so this equates what we shared on March 2nd. Um, so with those budget reductions, if we were to still maintain, I'm going to say minimally 1% because that's what I've mentioned before simply because we need to fund the third year of ACTI, we'd be looking for um a a measurement to find $1.5 million. If we go to the index, which I'm not saying that we absolutely have to, um, but it lessens the gap that

064we need to find of about a quarter of a million. So, um, we've shared this March 2nd. Um, and so as we continue to move along the budget, um, the next slide, please. Areas we need to address yet. Um, as I mentioned before, I don't believe we're going to have any additional areas of expenditure reductions. So, we're going to need to really determine what are we comfortable with for the capital reserve budget transfer. Do we want to use one-time funds as a revenue source to offset that million dollars, which if you'll recall in the previous presentation that capital reserve $1.2 million as assigned funds that could be utilized as a revenue source to offset the budget. Um, or the capital reserve number could change. It could come down to 600,000. So we need to in

065in discussions what the plan looks like, we need to determine what that transfer should look like and then we work with the budget accordingly. Of course, our earned income number needs to be addressed. So we're anticipating to increase a little bit more revenue with earned income as we continue to do some more projections. And then of course the May county estimates and homestead farmstead numbers will come out. So again, we'll be looking at those uh changes to the um duplicate numbers um as certified as as of May and then of course discuss our options in a tax increase and what that would look like. So this is kind of really where our road map is going. Um and then of course the next slide um just to wrap this quickly up. So here's our timeline

066of more work to be done. Um I I do have, you know, just to kind of briefly mention some options. Um we can move anywhere from I have uh numbers basically anywhere from a 2% up to a 4% tax increase and what that would look like. But again, I think the areas that we need to address need to be done in order to complete the process and to look at uh trying to minimize a tax increase. But we will need a tax increase. Um what that looks like, I have yet, you know, determined that. But I think that'll produce more board action and more discussion at the next work session. Um again, April's meetings, keep in mind that is prior to the May one assessment information being released. So while we are going to be

067doing a budget work session, the likelihood of the budget changing is is there um not drastically, but our goal is to have as much done prior to because um April 20th we will have the action proposed for final adoption and the advertisement must occur. So that'll be a proposed again proposed final adoption doesn't mean it's final. It's to satisfy the required advertisement rules underneath act one and to make sure the budget is available for inspection for the 30-day time period. So, we will continue following up with us getting the May one information. We will likely hopefully could possibly turn around to have that information available on the public hearing. If not, it would be the May 18th. So, we have May 4th and May 18th to discuss items before that final vote, which was scheduled

068for June 1st. June 1st, we'll take action um hopefully to take action on the final budget. It sets the tax increase and determines what the fund balance appropriations will be. So, little bit shorter than my previous presentation, but more information to come. >> Thanks, Belinda. Are there uh questions for Belinda on that second presentation? Go ahead, Dave. >> All right. Uh, Madam President, really, Dr. Masser, can you just get some information from us from ACTI? I know that we are committed to the 1% increase uh for their benefit. I'm curious to know what percent of their revenue comes from business and industry, and I would think they have that information. Can you please email that to us? >> Yes, I can. Thank you. >> I'll reach out to Sean tomorrow. >> Thanks, Kathleen. Dave, go

069ahead. Belinda, go back to that gaming loss. Just define that a little more for me. >> Sure. >> Okay. >> Yeah. What that what was on there? >> Yeah. The >> the 1.9 million. Yeah. Sure. So, the state provides a certification on the gaming funds that has through legislation been um processed as the amount of money that's dedicated to schools from gaming funds. So legislation was set up to say here is X Y and Z as or relates to how this the gaming system has done. Why legislation was ever set up for schools to be a recipient of gaming funds is beyond me but it occurred and it is still here. Um and so what happens uh the state will certify those numbers. they send the money to us or notify us that here is

070the homestead farmstead number that you need to work with and how many you know we get the parcels from the assessment office of how many approved parcels there are underneath homestead farmstead so we take the certification number from the state that's revenue from the state and then we in turn provide that back to the taxpayers on on their tax bill based upon that the certification and who's approved as the homestead farmer Homestead parcels. Does that help? >> Mhm. Any other questions? Ryan, >> just quickly, the timeline for when we see the Homestead Farmstead exclusions and is that before June 1st is in terms of having all the numbers. >> So, the certification will happen like May 1. The county's assessment office will provide us how many parcels there are. um during the course of the

071approval of the budget setting the mill rates that that reduction to those parcels happens at the first July 1st billing of your tax bills. So when we know those numbers, we're going to estimate what a tax impact would be based upon those numbers. We we've done that I think historically to say what that impact looks like to our taxpayers where that break even threshold is for parcels. Historically it was like u parcels $250,000 or less actually saw a benefit as that homestead farmstead number raised up. Of course, the higher the parcel, not necessarily quite as big as of a benefit, but there are parcels uh there that don't quite meet the thresholds and approved. Any additional questions? Okay, thank you, Belinda. >> Uh there's no citizens participation this evening, so we're going to move on

072to routine approvals. I'm going to look for a motion to take 51 through 53. That's the agenda. Financial report and human resources recommendations. >> Thank you. A second. >> I'll second. >> Thank you. Any discussion or questions on 51 to 53? All right. Hearing none. We will vote. Mike, >> yes. >> Kathleen, >> yes. Ryan, >> yes. >> Dave, >> yes. >> Justine, >> yes. >> Donna, >> yes. >> And I vote yes. >> Moving on to items for board action. Uh the plan here is to take our policies that are not uh the new one. There's a new one on 69 um to take those other ones together. So, um, we discussed these all at the work session, the first meeting of the month. Looking for a motion for 61 through 68 for policies.

073>> And 6ix9ine. Okay. Got it. You had Got it. Got it. Okay. >> Yep. Thank you. Great. I read new and I changed my mind. Got it. Yes, this makes sense. We did do that one. Yes. All right. 61 through 69 then. So moved. >> Thank you. >> Second. >> Thanks. Any questions um or comments on the policies? >> Hearing none, we will vote on them. Kathleen, >> yes. >> Ryan, >> yes. >> Dave, >> yes. >> Justine, >> yes. >> Donna, >> yes. >> Mike, >> yes. >> And I vote yes. All right. Um, I'm also, unless people have a need to separate them, um, I'm looking to take 6.10 to 6.13 all of our facilities projects as well. Um, if someone has a need to separate, you can let me know now or

074we can make a motion for 610 to 613. Hearing no need to separate. Uh that would be the asphalt repair seal and striping uh stripping sorry um high school gym equipment upgrades, the draft of the capital improvement program for the 5-year plan and the rejection of the Warrior Stadium team room bids. So unless somebody has a need to separate, I'm looking for a motion 610 to 613. >> Um just for clarification, will we ask have a chance to ask questions before or after? >> Oh yeah. Yep. >> So So moved. Second. Thank you, Justine. All right, questions or comments on those items? Go ahead, Ryan. >> I saw Dave. >> Uh, we have uh just had a a brief conversation on this end during the break about our draft capital improvement program for the 5-year

075plan. Just is there an idea for when that goes from draft to a higher level of of certainty? >> Josh, you want to respond? >> Yes. If that uh is if you take action uh it will move from draft to uh finalized and then we won't move forward uh until we actually get the funding in place which should happen when uh the budget's approved. >> Thanks Josh. >> And just as a reminder too then that that is the plan and then those items all come up for a vote for those individual things as well. >> Question. >> Yes. Go ahead Dave. So, so I understand how this process works. This is going to be >> So, I'm trying to figure out how the process works now. So, if we if we group in 6.12, are

076we essentially if we approve 6.12, we're approving all the projects even if funding's put in place? >> No, you're I mean I I you're the board is going to individually approve each project. This is a future-looking scope of work potentially for the district helping to plan, but you're not approving the projects in here. You're approving the concept of this is the timeline of how we approach and address each project >> because because in the balance sheet discussion we had, there's money already appropriated for several of those projects which has been explained. >> Yep. So, and I think it was just said that if we approve this concept of 6.12, then the projects would be funded once the budget's approved. >> No, >> the funding would be the funding would be available to then use for

077those projects. >> The funding is not available until the budget is >> but each project will then be voted individually. >> That is what I tried to say >> for approval or nonapproval. >> Correct. Oh, okay. Yep. I I think we're we're on the same vein with our questions here. And I guess what um what I don't quite see yet in this design bid build process from this initial approval is when do we seek bond funding? Would that be after uh we we approve um with this vote here? We would then look to raise bond funding. So on this capital improvement plan, the time that we seek bond funding are those items at the bottom of the plan, the future FIP. So typically anything above that and it's factored into like future like four one

078year, two year, three year, five, four year. Anything in yellow and or future years is typically what we fund per year and we have funds available as well. But anything that is below that that blue line which is >> it it's the Yeah, I'm sorry. I'm trying to get it up here. Right now it is there. There was one thing on underneath this which we moved up to year four I believe. Um but I will say a caveat year three um that's pending if we need to borrow or not. So, while we move that up to year three, it could very well be that we may need to borrow that money in in that year. Um, but anything that's listed below the blue line, such as athletic fieldhouse, the athletic turf, uh, stadium field lighting,

079those are items for discussion that may I say may and may not require bond funding. For example, the athletic fieldhouse is even though it's estimated at 17 million, that would require bond funding. That's not something that we can produce with the capital plan. However, if the story the stadium field lighting is 206 and there's nothing else that's preventing us from the capital plan, we could probably um take care of that without additional funding. So, it just depends. But simply moving up the um the uh sorry the wait room uh doesn't necessarily mean that's going to be covered with capital reserve funds. We may need to borrow for them at that particular point in time. Okay. So, um, on page six under the facilities improvement project funded through borrowing, what is the tech prep number 814?

080>> That would be a similar project like an HVAC renovation uh, type project that we just completed at Getty Lincoln. Um we forecast out um 17 to 20 years for a major renovation like that. So that's just looking ahead. >> What's tech prep though? >> Tech prep. >> Well, we acti was functioning out of that building. >> It's just the building. >> It's the ACTI building. Yes. >> Yeah, it's the building. Yeah. Not the programs, just the building. >> Thank you. >> Yeah. >> Any additional questions? Yes. Go ahead. >> I have a couple questions just to confirm that the the draft plan in front of us has not changed since the March 2nd meeting. >> It has. It has moved up the exercise weight room equipment. >> Okay. Thank you. And I just want

081to I hear what we're doing. I hear that we will or we will not approve this draft plan, but that does not mean we are tonight approving the individual line items on there. They all come up for vote. And I'm hearing that and I understand that. But can you help me understand the logic behind that? Why wouldn't we tonight as we approve the draft plan, assuming that we do, why wouldn't we also be approving those line items? And then when they come up for individual vote, wouldn't kind of the kind of common sense approach be like, well, you did approve these when you approved the draft plan. So, can you help me understand why we wait to approve things individually? >> I don't know, Josh, if you want to take it or meet me. Yeah,

082go ahead. >> I would just say that was I don't know if that's formalized in a policy or guideline anywhere. that was the way it was when I came here four and a half years ago. Um, but I will say I would agree with you um with with your logic u because typically we look at the individual projects um about six times before they're finally approved and we we the administration have a notice to proceed if you will to actually get the work done. And there's one one point of clarification. So, um, on page three at the bottom, um, this is the second page of what we call the plan processes. Um, generally speaking, and that's how it's or excuse me, projects 24,500 and less will generally be completed without further board action. Um, typically

083we don't have anything that small. Uh but we um do not typically put something of that value or under in front of the board again beyond this approval once sorry once the plan's approved and it's funded. Anything over that we do bring it forth for info and then action and yes it's often deliberated multiple times uh at that point. >> I was going to say I imagine too I don't know this for sure. Um it's good to hear that it's just kind of the way it was done and that's the reason we're aware of. But um I imagine too like for the projects here that are high like high cost projects, right? Um that things throughout like throughout the process and budgeting for that. Well, okay, let's say something I don't I'm not wishing this

084on our buildings, but let's say something catastrophic happens with the building you're not expecting, right? that then you are able to reallocate those funds and say this project now takes priority four years later when you didn't know that maybe would happen. So I I wonder if that's part of the reason for a draft plan. Um either way, I do believe that having having a plan that we're kind of on the same page with and getting updates and information on is a good one. Um, I don't have the answer to your question either, Kathleen, but that's the one thing I can think of that would cause potentially an issue in our finances as a board and needs as a facilities kind of cohort um if we had already committed those funds and voted it through and

085then something else came up. >> So, >> since it is a five-year plan, um, but yeah, any other questions on these items? Yeah, Dave, go ahead. So differentiating between what I consider capital projects and general repairs, ongoing annual rollover repairs, most of the things that are in in the first three years, a lot of those are general repairs. um which you averaged I think if you go back to the beginning I mean a lot of these things for the f you know this year 26 27 660,000 that comes out of your operating budget correct Belinda those types of things >> that comes out of the capital reserve >> just comes out of capital reserve >> yes >> then what does property services pay for the money that's in the budget >> Josh do you want

086to respond to that >> property services. >> Yeah. Like >> normal maintenance and repairs. Um >> well to me to me a magnetic door or lot or parking lot sealant and striping is general maintenance. >> Not necessarily. Um sometimes these are um repairs and requests that are done um during the course of the budget but it's not necessarily a part of the budget because it's anticipated to have the capital reserve funds play for it. So um you know for example we may not be doing like for in the example of um what um as Broadway mentioned is some emergency comes up some of these items will be deferred to the following year an emergency is going to take precedence over this. So um it this is saying there's a placeholder in capital reserve to take

087care of this level of funding. Well, it's considerably uh confusing. >> Yeah, Dave, I I understand where you're coming from and it's it's basically your definition of a capital improvement and the projects we have listed here. I I would agree that maybe not all of them not all of them fit within the, you know, the quote unquote true definition capital improvement. I could see why you would look at it as uh you know, a maintenance type item. Um, so with that said, um, regardless of what bucket we pull it out of, >> uh, it needs to be done and I I account for it in my budget. >> Oh, well, these the I mean, most of these items need to be completed. I mean, like the resurfacing of the track, I understand there's considerable issues

088with that track right now. >> And I see that's being pushed back to what, two years from now? >> Well, no, the indoor track. No, the outdoor. The outdoor. >> Oh, the outdoor. Um, well, I I don't think there's considerable issues with it. Um, >> okay. >> In my opinion, that's why we've we've dropped it down the list. >> Okay. So, I mean, it and Belinda, when we were going over the balance sheet, it would be I mean, you have this bucket of money, which we said is $18 million between the capital and the reserve. So, one was 11 million, one was 7 million. What are we allowed to spend that on? >> Capital items, >> these items. >> Okay, so we have $18 million, >> but but again, we still have to take care

089of the admin building >> and the team room project that out of that $1 million, >> the admin hasn't been approved yet. >> We are proceeding with estimates. >> Yeah, but it's not approved. That's why I asked if we're if we're approving this and the admin's in here right now. >> Mhm. >> Then I got to vote no. >> So you are entitled to vote whatever way you would like. >> No, but I'm saying right now this >> I understand what you're saying. >> That is pulled in a bucket of a bucket of things. >> But this is still a draft plan. >> Well, we'll go both ways here. Is this like being >> No, this is a draft plan. Uh these items in this plan are not being voted on this evening. This is

090the plan for the next five years of what we can be looking at and it does and can change. So I I mean I don't want I don't want to I understand that there are confusion points to that process but that is the process we have and that is the process we've taken including last meeting when we were talking about this draft. So I think for the interest of this this meeting this evening and this vote um questions about items on this >> no it's not the items >> will be entertained but I understand that there is a confusion andor disagreement with the concept >> because I'm hearing two different sides I'm hearing >> so if I can jump in here uh again on page three if you look at the very last sentence it

091says for those projects above the bidding threshold board action will be sought to approve bids for those projects per capital improvement program memo 11618. So anything above 245, we will bring it back in front of the board. And just a point of clarification relative to when this plan goes from draft to uh the adopted plan, if you guys act on it tonight, then you're approving the plan, not approving the funding, just the plan. Then it will be funded appropriately out of the budget approval. And then again, anything 245 and above will come back in front of the board for info and then action, which should solve Dave's concern and valid concern. I understand where where you're coming from with it. But anything 245 and above, we'll come back for approval, information, and then approval. But

092for clarification, is this one reason why we may end up in arbitrage? Because we approve a draft plan and then things go through um getting estimates, there's time involved. It comes back to the board for a couple of added discussions. Ultimately, the board may say no. And now we potentially have reached that three-year limit. Or have we not borrowed any bond money until the board says yes? We currently still have bond money. So, we're not borrowing anymore in this particular point in time. Um, I go back again back I go back to the 2020 borrowing. We borrowed at such a great rate to do the high school. The bids came in so much lower and it was a delay because of COVID. So, one, we came in so much lower than what we borrowed, and

093two, the delay pushed us in past the three-year limit. Then comes along the 2022 bond to address James Getty and Lincoln. Again, we had a delay on product. We had to move forward with, you know, the omni choice and we also had esser money. So, that was another factor. So, we are still working to close that out. So whatever monies are remaining unspent is a factor of arbitrage. Like I I I arbitrage is not a bad thing. We're just earning extra money, but we need to set that extra money aside to pay back because we didn't spend down the bonds. Um so um like bonds, you know, there's a whole lengthy approval process, public hearing, um financial um representatives are here before the board. You're talking about mort schedules and all of that. When you

094borrow, you borrow to make sure that you're borrowing enough not only to do the project, but any other capital like options or or scenarios. Does that does that address your question? >> It does. Yeah. So, when we look at page Thank you. When we look at page six, approving this draft plan, moving it into an active plan is not the same as approving any new bond money that would be required for some of the items on page six. >> That's correct. >> Thank you. Mhm. >> I'll also point out just for the the note that Josh read that when looking at this 5-year plan, the only item on here that is under that threshold is the paving of the parking lot. >> Can I ask a question? >> Yep. Go ahead, Justine. So, looking at

095page six of the projects, because our next item for tonight is to reject the bids for the team room. Should that not be on this draft because it's going back out to bid. So, the the project has already been approved. So, that one would not go on to this new project. These are unapproved projects. that project has been approved. It's the bidding process and the and the um cost that came back that we we need to go out for again. >> Well, in the the process which which were past the timeline for the approval of the bids, the permitting issue was an issue and so as we move forward, we need to officially reject the bids and rebid the project. the bids may come in higher or it may come in lower when we bid

096it, but then we're rebidding it underneath a timeline that is more suitable to having the work done. None of the contractors necessarily agreed to continue the current level of pricing. So therefore, the best scenario and what was recommended by our solicitor Dave Jones is reject the bids and then rebid the project and let us see where it goes. So by rejecting the bids, we will notify the biders that the bids have been rejected and that we will eventually we will go back out to rebid. They will be more than welcome to rebid the project. Um and you know that will come back before the board. The board will have to reprove the bids whatever those bids look like. the board may decide, hey, we don't want to do the project because it's cost this x,

097y, and z and or the funding may be an issue now because we may be at a different position in in the the um capital reserve. >> Sure. So, not a new project, but going back out for bid because of that gap in time, >> correct? >> Um from from theoretically starting the project to when it then couldn't be started. Does that answer your question, Justine? >> You can ask it again. Do you have a follow-up question? >> So that money from the capital reserve fund that like 11 million, right? You're talking about the 11 million, >> the 7 million and the 11 million combined. Yes. >> Mhm. >> Right. But the team room was coming from the reserve fund, not the bond fund, right? >> And because let me clarify that we got to

098spend the bond money first and foremost, then we'll reserve then we'll transition some of the money over to the capital reserve. So our goal is to spend the bond funds first and foremost retaining that arbitrage to make to the IRS and then the capital reserve will be utilized to stop gap the difference okay >> is what I fair to say >> and then my question Alice is and maybe I'm just I don't know but it's being re rejected we're going to vote to reject it so that money is coming back to the table right for us to then have to approve again. >> So yes, um we will if we vote to reject it tonight, that enables our team to go rebid and then we would be voting on >> but because the project has

099been approved, you're accounting for that 2.7. >> We have not we have not technically approved the project yet to utilize those funds we ear. >> So why is it not on the improvement plan? >> Because we've already gone through the process. this is future planning for the next five years and FIP. So the team room was already in the works. Um and so therefore all all we're doing is the funds are still sitting there still part of the the 7 million and the 11 million hasn't been moved, hasn't been touched. So just by rejecting those bids, those funds still stay there. And then when we go out to rebid it, the pricing then of course once the approval of those bids happen and the project begins, then we'll pay the contractors accordingly. Th >> this

100is moving into the next school year. >> So despite it being 26, we're in the 2526 school year. >> I have another process question I think for Josh. Um and on page five of this under the 2829 totals there's uh two lines for energy management in the administration building. One for replacing the computer room air conditioners. Um and this seems redundant with the scope of work for the admin building renovation project. Um could you explain if it is or if it isn't and and how it fits into that? >> It is. So, anything um and I left them on here in case the admin building doesn't go and we need to do peacemeal um replacements. If we do the full HVAC upgrade like we're planning with the administration building, this will change. Um so, you'll

101notice that um I call it shuffling the deck, but for uh you know, year 2 through five on these plans, when this comes up again next year, the the deck will be shuffled. we'll rep prioritize um and add and take away um and then we'll add then a fifth year to it. Um so really for all intents and purposes um because funding will be for 6 26 27 those are the jobs that are going to be I'll use the term locked in that you're you're um then going to vote on again next year for execution. Anything beyond that uh wouldn't be on the table until that plan year comes up. um with the new newly approved plan for that appropriate year if that makes sense. >> So we get to look into the future kind

102of every year. >> Yes. And then we have the other FIP jobs with the 10-year look ahead and then items to be discussed which could be part of shuffling the deck. >> Right. >> Great. Thanks Dave. Go ahead. >> That's two questions for me. Josh, what percentage since since you inherited this format, what percentage is ever completed out of these items, would you say? >> Um, since I've been here, we've completed all of them and we went back and completed some CO items, uh, projects that weren't completed. I want to say, and don't quote me on this, but I think two of the buildings that were doing the paving um ceiling and striping were co era um projects that just didn't get done because nothing got done. And um there one or two other projects

103that we had to we had to pick up, but um yeah, we're we're current. We went back uh five years beyond when I got here in 21. So, >> and close to 100%. >> Would you format this differently? Um, if I were to have never seen this, um, I I mean, the format might have been different a little bit, but the information conveyed would have been the same. Yeah. >> Yep. >> Any other questions? Um, a reminder, this is for 610 to 613, so questions on any of those items. Hearing none. Okay. Uh, we will vote. This is for approving 610 to 613. >> Ryan, >> yes. >> Dave, >> yes. >> Justine, >> yes. >> Donna, >> yes. >> Mike, >> yes. >> Kathleen, >> yes. >> And I vote yes. Moving on to

104program reports. Dr. Matzner. >> Uh, yes. Thank you. Uh, a couple of things to report on. Uh first, last Friday the high school hosted uh a blood drive and I'm happy to report thanks to the generosity of our students and staff uh 48 units of blood were donated um some by me which is enough to help up to 144 patients receive life-saving transfusions. So great job by the high school um that uh the high school group that did that. Um on March 25th in the evening, we are holding a presentation called keep keeping kids safe from hidden digital dangers. Uh agent FBI special agent Jeffrey Ford will be discussing threats facing our children and teens online. Um we are o that presentation starts at 6:30. We're opening the doors at 5:30 with a resource fair

105to um uh just offer and and uh report on the resources we have available to our families and our students um at the high school. It's at the high school. Yep. We are um working in collaboration with the Gettysburg Area Education Foundation for this presentation. Um they have been great. We are actually offering uh the book, The Anxious Generation, to the first 100 pre-registered families that will be attending this event. Um those hundred books are being donated by the foundation, which was fantastic, very generous of them to do that. I'm happy to report, I looked about an hour ago, we have 99 pre-registered families already attending, which is fantastic. Um so yeah, the presentation was done for our staff during an inservice half day last week. So, the teachers got to see what the presentation

106is going to be about. Um, and there's a lot of important information. So, I'm happy they're able to put this on for the community. Um, the only other thing that I have to report is the middle school spring musical. They are doing Moana Jr., which will be held at the middle school March 27th at 7 and then March 28th at 2. Uh, so please come out and support the middle school musical. I'm sure it will be as wonderful as the high school musical was. Thank you, >> Dr. McFarland. >> Evening everyone. Um, year two, uh, induction program. Uh, the first year doing this this year. Uh, typically our induction program through PTE and the district and the county has been a one-year program for us, I think, forever actually. Uh, so excited about that. Um,

107each month our year 2 teachers have met with uh, administration colleagues and focused on a different domain of their teaching aspect. I get the privilege in March to meet with them about domain 4. Those meetings have started off um we're focused on their professional learning communities um what they need to do to maintain certification and really I take this opportunity as an evaluation of our work um of how we've done onboarding them here at JSD and how we can continue to support them as we move forward. Um our spring testing window is just a month away. We have just trained our school assessment coordinators and our next step are training staff and further preparing our students uh for that to start on April 20th. Um we have also begun our federal programs are being monitored

108from a programmatic financial and school level aspect. So that should be fun. And on a happier note uh just two weeks ago we wrapped up ReadAcross America week. Uh we had the pleasure many administrators had the pleasure of going around and reading to numerous classrooms, groups and buildings um including I guess it would be called best a duet with Dr. Master of Green Eggs and Ham. So wonderful. >> You had a very good time. >> I was going to ask about your favorite book. So there you go. Must be Green Eggs and Ham. Belinda, go ahead. >> So I'd like to report to the board that we will probably likely be doing a press release relatively soon. Um so there are safety concerns prompting an aging witness tree removal that we are trying to preserve

109its legacy. Um so the the report will say that indicate that Gettysburg school district will soon remove an aging witness tree located the adjacent to the concession stand at the Warrior Stadium. With safety concerns in the treere's natural end of life removal necessary, the district is taking steps to preserve its legacy for future generations. The silver maple tree, believed to date back to the time of the Battle of Gettsburg, stood for generations near the district's athletic facilities. Over time, it is hollowed and deteriorated, weakening it structural integrity and increasing the risk of falling limbs or failure. Its location near the track in the field area event poses a safety risk to students and visitors. After consulting with several um educational, excuse me, agricultural experts, Mr. Reynolds did, of course, um an evaluation of the tree's

110structural condition, the district has determined that all options to preserve the tree as it stands have been exhausted. While the goal has been to keep this historic tree standing, it continues deterioration now presents a safety concern. Silver maples, yeah, silver maples typically live 50 to 100 years in South Central PA environment with this distinction of the witness tree believed to date back to the Battle of Gettysburg in 1863. The tree is estimated to be at least 163 years old and likely older. We want to deeply respect the agriculture, yeah, excuse me, deeply respect the historical significance of the tree and the safety of our students and community must always come first. Decision was made carefully with input from experts. The removals take place in the near future. Careful effort will be made to retain the

111stump to be used for educational purposes providing it does not meet present continued safety hazards. The district is working with the Gibsburg area high school agricultural per department to preserve the treere's legacy and cultivate saplings through tree grafting and will be planted on district properties. In addition, the stump will remain as approximately 2 feet in height, giving students the opportunity to study the treere's age and structure as well as learn about the significance through the marker. Through these efforts, the district hopes to preserve the legacy of the tree and in connection with community history while maintaining a safe environment for students and visitors. So, we wanted to update the board before this press release does go out, keeping you informed. >> Thank you. Sad to hear about the treat, but sounds like the best possible

112outcome for being able to continue to learn from it. Um, wonderful. That brings us to our calendar of events, uh, or dates of meetings, I guess, is what that is. Uh, our next meeting will be Tuesday, April 7th. It is the first meeting of the month. So, that will be our study session. um here in the boardroom at 7. Going to get a motion to adjurnn. >> Thank you. Have a good night.