001Especially if you're on a panel at the capital this week. Are you coming to it? I'm not. What day is that? Uh I think it's this Thursday. Thursday. But you're are you skipping the ACT well? Yeah. You're skipping? No, I thought you said you were too. They're giving me another time to take it. Okay, okay. Yeah. When are you taking it? Hm? When are you taking it? Okay. All right. Right? Give me world teachers and start over there. You got to show off the stars of the weekend. You know what I'm saying? So, did you make a decision On college? Yeah. I'm a junior. Oh my god. I did the same thing but didn't get in anywhere. I'm like dying to know. I love this. Anyway, you got to hear. We'll talk. We'll stay in
002touch. Yeah. It's so fun. Has your daughter decided? Yeah, she did. University of Minnesota. I'm so excited. I'm so excited. Sometimes when you're successful Yeah. That's right. Well, that'll be what? All those in favor Yeah, but I got to think I got a plan. Jeez. So, with a plan we are fine. Is there something that is taking her there? Like do they have a major or something that she's interested She loves the campus. The area and yeah. Okay, she loves it. Oh, okay. This is great. Yeah, you know. Cuz they say that as soon as you get on the campus they kind of feels like that's what you got. Okay. Well, that was big. Yeah. It is. Mhm. Cuz she told me that So, which one is it? Thursday. Well, Thursday. It's still the old
003If you go back to commercial >> Let's pretend to start again. >> [laughter] >> Good evening everyone to this month's Finance Committee meeting. I call in the meeting to order and we'll start with our pledge of allegiance. >> [clears throat] >> 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. >> [clears throat] >> Great. >> [clears throat] >> We'll start with the approval of the minutes from the April 7th finance meeting. Can I get a motion? Second. Motion by Mr. Kaiser, second by Mr. Bell. Any questions? Okay, therefore all in favor? Any opposed? Hearing none, motion approved. >> [laughter] >> All right. Um Do I hand over right now? I think so, right?
004I think we're such a short time. Okay, I hand it over. >> Okay. Um the first first item I'd like you guys to consider this evening is the treasurer's report. I seem really loud today. Is that better? Okay. I felt like I could hear myself echo echo echo. Um all right, so for the treasurer's report cash receipt remembering that these are back a month because the month just ended, April just ended. Um so the cash receipts for March were 13,070. Uh cash disbursements for Febru- for March, that should say March, um are 39,423. Total available funds at the end of March are 181,531,000. Um and it is broken down in the types of accounts as shown below. If I can get a motion to approve the treasurer's report. >> Any questions? Okay, hearing none, all
005in favor? Aye. Any against? See none, motion approved. Thank you. Um second, I have budget transfers for the month of April. Um they're uh I want to thank Mr. uh Broach for letting me know that we have switched the attachment. It was the special ed attachment somehow got attached to their firm work session. So, it is now the budget transfer um spreadsheet. I'm asking for budget transfers in the amount of 937,000 between accounts as per the attached. Great. Can I get a motion? So moved. Second. All right, motion by Mrs. Ramage, second by Mr. Coin Mrs. Coin Tory. Any questions? See none, all in favor? Aye. Any against? See none, motion approved. Great, thank you. Um item 3C, uh we recommend approval of the attached stipulation for the agreement with RE+ Airport Square concerning the
006property located at 801 Bethlehem Pike. This settlement This was a um a district initiated claim and we um came out um with they agreed um to the increase in the assessment for a couple years and then we agreed to go back to the 23 million going forward, but they will pay back taxes of 131 55 514. If I can get a motion. Good. Can I get a motion for this? So moved. Second. Okay, Mr. Kaiser and Mr. Bell. Uh any questions? This is a good one for us, right? Yeah. It's positive. Thank you all for initiating this. Sure. Um that Um we didn't vote. Oh, sorry. Got to vote. Yes. Yeah. That's important. >> [laughter] >> I was right on there, too. >> Listen, I have a lot of pressure to finish quickly, so I'm
007just trying to move All those in favor, say I. I. Any against? Seeing none, motion approved. Great. Moving on to 3D, recommend approval of the attached stipulation for Lansdale Fee Owner LLC concerning the property located at 1001 Towamencin Avenue. Um this one we uh agreed to decrease the assessment, um but they're only going forward, so there is no back taxes and we are not refunding. Um so it's just it will reduce the amount that the taxpayer has to pay going forward, um starting with the 7126 bill. Can I get a motion? So moved. Second? All right. And then uh any questions? Okay, seeing none. All in favor? I. Any >> [snorts and clears throat] >> against? I'm having a moment today, so >> [laughter] >> Bear with me. All right, any any against? Nope, all
008right. Motion passes, thank you. Um next is 3E for um the property owned by VV North Wales at uh 441 at 426 and 413 Industrial Drive, as well as 513 Dickerson Road. Um and 401 Industrial Drive, sorry. Uh I'm not going to read all of the individual numbers for every single parcel. Essentially, we looked at all of these parcels as a whole, and we've come to an agreement on multiple years for multiple parcels. At the end of the day, um they will owe us 34,685, and going forward, we'll have a new assessed value. If I can have a motion. Yes, can I get a motion? >> [clears throat] >> Mr. Bell and Ms. Ms. Mr. Rash. Any questions? Yes. So, I and apologies if this is come up before, but I guess from my understanding,
009um the parcel numbers is since this is all like I'm used to seeing it as one entry, but is this just because it's all one owner and they have several parcels, so they submitted it all together or we're we're assessed we're reevaluating all together? >> That's correct. Okay, thank you. And I'll be honest, I did not look at a map, but I'm betting if I looked at a map, they would all be contiguous. So, I haven't I can't guarantee that, but that's usually what happens. Okay, thank you. Good clarifying questions, and with that, um all in favor? I. I. Any against? Okay, seeing none, motion passes. Um next again is another stipulation with 212 Church Road LLC for the property located at 212 Church Road. Um again, this was uh uh district-initiated assessment appeal, and
010we came out ahead with taxes due to the district of 119,176. Excellent. Can I get a motion? Second? All right, motion by Ms. Coin, second by Mr. McBain. Any questions? Seeing none, all in favor? I. I. Any against? Seeing none, motion passes. Um and the last assessment appeal that I have for this evening is with Spectrum Partners Limited Partnership at 640 East Main Street. This one was taxpayer initiated and we did agree to reduce the assessed value of the property. So this one we will be refunding taxes, excuse me, >> [clears throat] >> in the amount of 11,169.74. If I can get a motion. Okay. Can I get a motion? Uh Mr. Bell and Mr. McBean. All right. Any questions? And is that annual or is that was a one-time >> So it's a one-time
011refund for taxes they've paid paid previously and then the new assessed value will be what's used to calculate their tax bills going forward. >> Okay. All right. Good. All right. Any other questions? All right. All in favor, say I. I. Any against? >> [clears throat] >> All right. Motion passes. Um the next one I have is a real estate tax installment um payments and penalty amount resolution. So in the past we have allowed for six installment payments. The issue with six and why I'm requesting we go to five, um that last payment being due on 12/31, if they bounce their check, we may not know that they bounce their check on their final payment in time to make the lien deadline in January where we have to submit count submit properties for non-payment to the
012county to lien the property. Um and the tax collectors have been um it's been difficult for them the last couple of years and this is something that they brought and said, "Could we have Could we change it to either go back to the way it was to three payments or at least make it stop in November so we have the month of December to get the tax that the checks to clear." So I'm requesting that we go from six installment payments to five, each one being 1/5. Thank you, Mr. Bell. I changed the wording from 1/6. I didn't realize it was in letters as well as numbers. Um so, the installment payments would be 7/31, 8/31, 9/30, 10/31, and 11/30. Um and they would have five payments to make their their full tax bill at
013face. They are not eligible for the discount if they elect the installment payment. That's That There's no change there. Um the other component that I would Um we're keeping the discount at 2% for July and August payers, but I am requesting that we go to a 10% penalty rather than the 7 and 1/2% penalty for late payers in November and December. Um it keeps us more consistent with the districts around us, as well as I believe it was done It was lowered previously around COVID. Um we've come out of that period, and it's really It's an incentive to get people to pay their taxes on time because we need the cash flow, right? So, we want to get our taxes in at face, um as quickly as possible by the end of um October. Um
014and if they want to avail themselves of the installment payment, they still have the ability to install pay, um rather than trying to hurry up and make a payment by November. Um so, the resolution that's attached would change the installment payments from six to five. It would change the penalty from 7 and 1/2 to 10%. Um and then that would be That resolution would carry forward starting with the 7/1/26 tax bills until you so amend it later if we ever publish another resolution. So, this is kind of a once until again. So, it's not something that you would see every year. Yes, sir. Okay. Yeah. Can I get a motion? So moved. So, Ms. Coin and Mr. Kaiser, now any questions? I I yes. I remember when we didn't have installment payments, and we talked
015about putting installment payments in and we did. And I can see the benefits of it, but I can also see that there's some costs involved to doing it. Yeah. Uh are you in favor as our CFO of doing um pay uh um installment payments? >> I am. I I I think it I think it's helpful sometimes for folks um to not I think what sometimes some people get get that bill on 7-1. Some people are really good about saving and some people aren't. And so it can be a shock, but they can make it up over 5 months. Um so I think it really it gives some flexibility. If they want to pay a discount, they have July and August and they can take a discount if they can get you know, if they want
016to pay it by August 31st. Um a lot of folks get the discount anyway. Most people pay during the discount period, the 2% period um because a lot of times their mortgage companies are escrowed or they're business and they want to take they avail themselves of the 2%. So I really think the the number of folks that use the installment payment, the cost is worth the benefit of allowing them to do that. Um and then I just I you know, predominantly most people pay during the discount period. Thank you. Yeah. When I was uh at the [clears throat] Gold Car Show earlier this week at a wonderful uh member of our community talked to me a little bit about sort of the payment process and uh the increase to 10% has me thinking a little
017bit about it. She shared that her check that she mailed and got lost and she didn't realize it until she got a notice of a late payment. Is there an appeal process if they can document the procedures that uh someone that was going through that challenge might be able to navigate? Um it there is sort of. I mean, there's not an official appeals process. Usually what we look for is certified letter receipts, um postmark on the envelope, um if it cleared your bank and we didn't give you credit. I mean, tax collectors are human, right? So, they may not deposit it or there may be a flaw or something. They may deposit it and give somebody else credit. Um errors happen. So, we go through that whole process. Um if the payment is just late
018because you mailed it the day it was due and you didn't check the postmark, then probably not. Um it's just kind of like your, you know, your taxes, uh your income taxes that people think about. They're due on the 15th um and you just know that. We don't send We send bills. Um and with with pay dates and and what due dates and there's multiple ways to pay. So. No, I think that's very thoughtful that you have so many stages that you can go through to be able to navigate and uh investigate if necessary. So, thank you. Yeah. And and and no late notices are sent. So, there's a there's a whole cycle. Yeah. Yeah. So, I have a clarification question and then Mr. Ash. >> Mhm. Um so two questions. Uh number one, how
019do the taxpayers uh get informed of this of these changes? >> So, it'll be on their bill when they get >> on the bill they get and let them know. >> get Instead of seeing six payment coupons, they'll see five. >> And all of the information will be there. Um this is a public meeting. It's been on our website. It's a resolution. We can post it. We'll put it in the tax section on the website as well to remind people um cuz when we once we pass the millage, all of that stuff goes on the website. This is the new millage. This is the date your bills will come out. This is when your bills are due. These are your tax collectors. All of that stuff is out on our website. >> Okay. Excellent. So,
020the onus is on us and we must note that. Second question {slash} you probably don't have the answer, but I'm going to ask you anyway. So, there was uh you alluded to this um si- the scenario where the bill gets paid, you know, December 31st, I'm curious and that's kind of what led to us making this change. Did the tax collectors give you any idea of how frequently this occurred? It was not a lot, but it did create a lot of work for them to make sure that they applied all the checks fast enough because they have to turn the lean list in within 15 days of the end of the year. So, if they have a whole bunch of people paying on 12/31, that's a lot of work that they have to do in
02115 days to to reconcile all of their accounts and turn those lean lists into the into us and then into the county. Um so, just >> Mhm. >> One two, one two. He's got that, right? Ethan? Yes, again. Testing, testing. Okay, so for the recording, we've been having some audio issues, uh, but we believe we are good to go now. So, Mr. Gilmer will pull the agenda back up, and we will go to the proposed final budget item J, Ms. Hauser. Thank you. Okay. What we've all been excitedly waiting for, um, the proposed final, just to rehash the process again just one more time. The proposed final budget is essentially the draft budget that we make available for the public to review and comment on before we have the final final vote on June 18th.
022So we are required by law to put this budget out for review within 10 days of this meeting on the form 2028 which I did not do for this meeting. Um it doesn't need to be on the 2028 for this meeting but it will be on the form 2028 and within 10 days of this meeting for people or from the work session after this meeting for people to review. The reason we are doing it at work session and not action is that has to be available for 30 day that vote has to happen 30 days prior and there are 28 days between our May action and our June action meeting. So we are going to pass proposed final hopefully at the next meeting which is work session in an hour and it will go on
023display. It will be advertised and we will stay compliant with the days of the month that we have. Um the final final we will I will present again at the June finance committee what I believe the final numbers will be and then we will vote on that on June 18th for tax bills to be issued on July 1. Um I will tell you that we have been I've been having some conversations this week with special ed. They've been double checking some of their stuff in their budget. There may be a little tweaking between now and June but I don't believe that there will be anything material that will happen between now and and June 2nd I believe it's the finance committee meeting. Um so with that I will go through where we are at this
024point in the year. Things pretty I'm sorry. Do you want to get a first and a second? Oh yeah. Or do do you want me to present and then or do you want to how do you want to So the motion is to average so the the motions that I need are for the advertising resolution and I've put the notice that we have to put in for for your review. So, the motion is to agree to advertise the proposed final budget for the budget year 26-27. Thank you. Yep. >> [clears throat] >> Can I get a motion? Mr. Kaiser Ms. Coin Great. So, with that I will go into the discussion of the budget itself. If you can go to the revenue page, just page down one. There we go. So, similar to what you
025saw in April, there's a little bit of a change in the local the local revenue again is based on the full Act 1 index of 3.5%. I have reserved funds in that number for some tax assessment appeals that we are looking at. So, I have that number right now is sitting at about 260 million 893. We've lowered interest income somewhat based on a drop in overall rates in the marketplace. The IDEA projection for 25-26 may look a little low. This is more due to timings of the billing to the IU cuz we have to bill the IU. So, I that's why the budget for last year the projection and the budget for next year they kind of do this. But, I believe next year's number to be correct. On the state revenue line in that
026number is about 19.3 million basic education funding which is up a teeny tiny little bit from 19.1 million or approximately 1% over last year. Our special ed funding in this number is 8.1 million which is also basically flat over last year. Last year it was 7.96 or approximately 1 and 1/2 8% 1.8% increase. Just to keep in mind our overall special education funding for non-personal items is going up 6.29%. So, state funding is not keeping up with the special education funding. I just want to make that abundantly clear. Um the bulk of the state revenue then on that line is about 7.7 million for FICA and about 26.9 million for PEACERS reimbursement. Um the gaming revenue this year is going to come in at about 8.2 million and we will talk about that in the
027informational items. Um for federal revenue this year the title grants are estimated to be around 2.4 million, which appears a little bit lower than the 2.8, but there was carry forward in this year's number and that's one of the other tweaks that you may see between now and June as we look into what we're going to carry forward into next year. So just to explain federal grants a little bit, we don't have a whole lot of money in title. Like I said, it's only about $2 million out of million in total revenue. Um but those title grants run on a 15-month year where we have a 12-month budget. So sometimes we get approved for this 15-month window and if we don't spend it all in the 12-month budget window, we can roll that into the
028first 3 months of the following year. So that's what's the carry forward is. So if we don't spend it based on timing or summer programs, ESY, if we want to use some of those dollars after July 1st, we are allowed to do that based on the 15-month window of a federal grant. Um so that's what carry forward is. So that number may tweak a little between now and June 2nd as well. Uh you can advance. Um so just I have presented um the expenses here in object format rather than function format. Um in June I'll do both once we are settled upon across departments, but for the for purposes of tonight I'm just going to look at objects. To remind everyone the 300 um the 300s group, which is called purchased professional technical services, are
029services that are by their nature require persons or for firms, excuse me, with specialized skills and knowledge. Included are services of architects, engineers, auditors, dentists, medical doctors, lawyers, consultants, external teachers, accounts, tax collectors, etc. Um and this also includes payments to the IU. So our increase is in the 300s. Most of it is um a result of increases in overall IU spending that is not our IU dues but our actual services that we purchase from the IU. Um there's about 369, which is um based on a rate increases for our outside 369,000, excuse me, which is based on rate increases for our outside um educational providers. >> [snorts] >> The 330s includes um other professional services. That difference there is about 821,000 over last year. It's an offset though from the other agency spending. We
030moved things from 323 down to 330. Um so there's an offset there. It's really only about an uptick of about $100,000. And then there's some technical services increases. Um the 400 series is uh purchased property services. So think about things that you need to operate, repair, and maintain our property. Um they're usually performed by people outside of the school district. Um for example, la- uh lawn and ground services are going up about 147,000 as we've outsourced a lot of the mowing um at some of our elementary schools and middle schools. Um there's repairs and maintenance equipment. Um repair repairs to equipment is going up about 205,000, which uh Mr. uh Slaughter touched on at the Finance and Operations Committee when he discussed his budget, as well as repairs in general um for about $250,000. And
031we've also put in about $100,000 additional over last year's budget for construction services, which would be not part of the high school, but any other small construction project that we may need that we would just pay for out of the general fund that wouldn't be necessarily a capital improvement. Um the next items is the 500s. Um 500s are amounts paid for services not provided by the LEA professional professionals, but rendered by organizations or personnel other than professional teaching services and purse purchase property services. You can think here contracted transportation. So, for student is in the 500s, insurance, advertising, and tuition to other LEAs. So, all of our outsourced kiddos are in this number as well as charter schools. Um we have the 500s going up approximately $2.2 million um about $1.8 million. I'm sorry, about
032$2 million of that is the increase for first student, which is the 5% increase that we voted on a couple weeks ago or last month. Um [snorts] additionally, we've seen about a million dollar uptick in our charter school payment and about 645,000 in our 4010 placements, which are placements for students that we do not educate. They're They have moved out of district, but we're still obligated to pay for their education. Um do you want to elaborate more on 4010? You're good. Okay. Um moving on to the 600s. This is kind of The 600s are kind of your catch-all. It's the supplies and it's everything from toilet paper to computers. So, everything kind of lands in this in the 600s. Um next year, we're seeing general inflation hitting our supplies. So, we're seeing about a 300
033about a 500 I'm sorry, about a $457,000 increase in general supplies. That's for basically everything in the district that isn't something else and isn't one of these other numbers. So, like I said, it's everything from toilet paper to cleaning supplies to textbooks to books and periodicals. Um we are we have a little bit of good news and supplies and that our natural gas we think we'll be able to actually lower our natural gas cost. Um the bid came in before the world kind of went crazy um and we locked in some rates that are a little bit lower as well as trying to use a little less gas. Um and then software um the technical licensing and software fees which is the 650 series. It's inside of 600. Um that is seeing about a million-dollar
034increase but there's a lot in that number. So in that number there's $200,000 for cameras and security software because we've reached the end of life in our three middle schools. So about $200,000 of that will re-outfit our middle schools with cameras and the software to run them. Um there's another $200,000 in standard licensing fees. So we have software licenses for everything that we touch in this district and they go and they go up anywhere from 8.5 to 20% depending on the license. So across all of the licenses in the district we're looking at about a $200,000 uptick in license fees. Um and then there's some smaller tech fees and inside of that number as well. Um the 700s is is capital um capital spend so it's for capital things that meet our capitalization um policy.
035So think big ticket items. A new boiler. Um probably a roof wouldn't go in here but a new HVAC system um major plumbing repair um a piece of like a tractor like if we needed a a lawn mower tractor that's you know $10,000. So all of that is in the 700 series. Um we have about 3.3 million set aside for that based on experience this year. I asked Mr. Slaughter what he thought we really needed and that's where he put it. Um we also have some vehicles that have reached end of life that are in this number as well. Think like workmen trucks that are just completely rusted out. Um buses are not in that number. Lastly is the 800s. 800s is made up of things like dues and fees, claims, judgments, and penalties against
036the LEA, interest, um interest interest expense, so interest we pay, not interest we earn, and then refunds on prior years. So if anything that we have to pay somebody back from last year, kind of like these tax stipulations that we're talking about, those come out of the 800s. Um the the increase though in the 800s next year is related to interest paid because the new bonds that we issued, the interest is heavy at the front end and the principal is low. So then if you look at the 900s, we're actually going down a little bit in the 900s because where the principal that we pay next year is less than the amount of interest. Just think about when your first few years of your mortgage, you pay more interest than you pay on principal. Same
037thing happens when a with a general obligation bond. So we're going to see a little bit of savings in one, but it it's offset in the other. Um so that's pretty much all of the non-personnel expenditures um for next year, and then we can go I can think I went out of order. We can go back a little if you'd like. Did I put salary and benefits? Did I skip salary and benefits? Yes, counselor. You had mentioned when you were in the 500s about an increase of a million to charter. Yeah. Uh can you extrapolate a little bit? I'm looking at a memo that you sent from on Sunday evening just before midnight, mind you. Um and can you just >> out loud. Yeah. Just don't tell everybody I cram. Yeah. Hey, this was a
038Sunday. Um anyway, can you go into why that number is so large? Um so it's based on budget of previous years, and we also moved it out. There was some there previous years we had it in the wrong account. So I've also moved it out of the 300s and into the 500s. Um so we've we've we've moved it around a little bit. Um and it's but it also has gone up. So it's based on our our tuition paid to charter schools is based on our budget last year. So last year's budget dictates this year's rate rate. It's not 2 years back, it's 1 year back. Okay. Says the man who collects our money. Um so it's goes so our 20 425 budget dictated the rates that we pay this year in 25 26. And the
03925 26 budget will dictate the rates that we pay in 26 27. Less some of the things that we both get from the federal government or we both get from the state. Um and we supply the transportation. So they we don't that money doesn't count towards the calculation cuz we're driving the kids. So we're not going to give them money to transport when we're already paying for that. Um so there is some movement across um departments and across I'm sorry, not across departments, across objects. Um so that that's why there is such an big uptick. And I can break that out further in June if everybody wants to see it. Cuz there's four components to it. So there's regular education um primary primary regular ed, primary secondary um primary special ed, secondary regular ed, and
040secondary special ed. So there's four there's four legs to the charter school payment. Mhm. No, I don't think you have to. It was sort of my question and I appreciate the clarification. So and it makes sense that we moved from one line item to another cuz I wasn't expecting such a big uh change. Yep. So next year if that's based off of this year's um budget would we potentially see a a positive though because the rules have changed a little bit for charter schools. Um we could potentially because a lot of our kids are cyber. So the the fixed rate of cyber does affect us. Um but there there we do have some kids in brick and mortar. Um so those brick and mortar kiddos would be based on our budget but then cyber would
041be fixed. Okay. Great. >> Actually was at the capital building today. It was advocacy day for PASA, which is an organization I'm a part of. And they made it abundantly clear that there will be no reform this year. Um there was some reform, significant reform last year. But not a part of the governor's proposal and no one's really talking about that this year. Okay. Great. Thank you. Yep. Um so I'm going to go backwards. I apologize. Um to talk about salaries and benefits. Um Mrs. Schmidt presented last month about our increases and our benefits. I really don't have anything to add. We are going to stick with that 14.6% number for medical and prescription. Um it looks a little different on here basically because of the way the way these numbers come through, we plug
042in every single person um and we run their benefits for next year based on this year. Um but anybody that any vacancies we put in at full family rather than um excuse me. We put in a full family rather than two party. So we're also going to tweak that a little bit before when I before I come back in June cuz I want to run it both ways and see how we look. Um FICA is again goes up in accordance with salaries and bene- with salaries um and then we get that money back from the state. Um In general, we're looking at about from budget budget over budget uh administration is going up about 1.6%. Um teaching staff is going up about 3.6%. Other professional services are coming down a little bit. Um mainly that's
043because temporary salaries are listed in that number and they this year's number for projection versus last year was a little bit lower, so I lowered that um in the budget. Um technical salaries are going up about 15%. Um that is basically from hiring and then we're adjusting some of the folks that are in that line item. Um we've got some mechanics and such that we're raising to um uh raising to market. And it's a smaller number, so a change a smaller number there makes the percentage look a little wonky. Um and then the office and clerical staff is going up about 4% and trades and crafts are going uh crafts and trades, excuse me, are going up about 6%. Um so this is layering in not just salary increases, but expectations for um temporary help
044and expectations for overtime pay. Um we are working uh we have the business process audit that's going to kick off in June to really help us look at how we are using frontline and time clock um to really um zero in on what our actual overtime costs are so we can do better overtime analysis month over month. Um one of the things right now all all overtime is literally on paper time sheets. Um so it makes it difficult to run weekly reports um on what that overtime looks like. So it's basically by pay period um and we have to just look at what we book. So I'm not able to look at time, I'm not really able to look at department until it's already done and paid. Um so we can't run it out of
045a clocking system. So that's one of the things that the business process audit that's will kick off in June will help us um bring in a time clock so we can do some time and metrics and that kind of thing. Um so overall the increases to salaries um for next year was sitting around 3.7%, which is about with all of our contractual obligations is about right. Um what I did this year that's a little different than what we've done in the past, I didn't plug in every single vacancy. I I mentioned this in my memo to everyone. I did not plug in every single vacancy um for a dollar component because some positions have been empty all year because there's turnover, right? So, we fill this one, but this one leaves. We fill that one,
046but that one leaves. So, over the course of the year, we don't ever pay our full salaries out, which is why we have a positive variance this year um right now in actuals and salary. So, we have a lot of deferred maintenance. I would rather budget the money in deferred maintenance so we can pay for the things that we need rather than tying it up in salary that we know we're not going to pay out. Um is it different than what we've done in the past here? Absolutely. Um is it different than what I've done in the past in private industry? No. Um so, you know, we always budgeted our salaries based on we would look at all the positions, we would look at actuals, and kind of meet in the middle, which is kind
047of what I've done here. Um we do probably want to look over the course of the year again coming this coming year um and really start to look at again with that overtime report, is it worth hiring another person to offset some of that cost. This year, we've decided to flat staff based on the fact that at the end of the day we are deficit budget of about $750,000 before transfers to capital right now. Um so, we really need to dig in over the next year and really look at our staffing costs. That's the only place that we can really save money. Um there are a couple of other tech things that uh Mrs. Smith and I have talked about um and making sure that we're not duplicating anything, duplicating licensing and that kind of
048thing that we don't need. Tech is another big place and then working with Mr. Slaughter to really look at what that deferred maintenance and what that feasibility study is going to be. One of the things that we need to think about long-term we are going to use fund balance to pay for some of our capital projects. That was always the intention, right? So we you guys talked about that with my predecessor and coming in using that 65 or so million that's tied up for committed to capital fund balance. That of that 60 I have 15 million being transferred right now. The rest of it will be offset rest of the high school will be offset by that general fund. I'm sorry, general obligation bond that settles on May 20th, the 60 million that we just
049went out for and we'll do another one next year. Um but that debt service still has to be paid in our budget. So you can buy the house but you still got to pay your mortgage every every year, right? So our mortgage is going to continue to grow over the course of that business. So I'm sorry, over the course of that project. So we will just need to be mindful of how much fund balance that we're using to do some of these deferred maintenance projects and we'll have to look at our debt structure going forward. Nothing that I haven't we haven't talked about previously just a reminder because this is the budget meeting. Um I am not going to lie that as a finance professional looking across the public education financial landscape it is very
050challenging right now for every single district. All of my all of my colleagues we we meet once a month through the IU all of the different school districts in the county. We're all facing very similar um challenges. Even the wealthier districts are looking at our ability to pay for all of the maintenance that was deferred through the mid-2000s and the mid-2010s and now it's catching up with us, right? So a building that was brand new in 2000 is now 26 years old and you're going to need a roof, you know. All of those tech things that we purchased coming out of COVID and we were lucky enough to have grant money. It's 5 years out, 6 years out. They all need to be replaced. So all of those Chromebooks, there's $2 million in the budget
051next year for Chromebook refresh which 10 years ago we didn't have that expense. We didn't have that one-to-one expense. So the equity index has us locked in at 3.5 but we've changed the way that we're educating our kids and we've deferred maintenance on our buildings. So you've brought tech into all of the classrooms on a one-to-one basis which increases your cost per kid. And so we're like, "Okay, well we don't really need a new table this year." But now 10 years if we can't there's we need tables. We need chairs. We need um, you know, HVAC systems. We need air conditioning. We're replace We got to replace the mods. So these are all things that across the landscape it makes me um it's the things that keep me up at night, right? I think we're
052okay this year with the $750,000 deficit that can come out of the unassigned or it can come out of capital depending on how we look at it. Um, the $15 million transferred capital will definitely come out of the committed fund balance for capital. Um, but over the course of this year we really need to look at um everything that we do and find make sure that now we're not duplicating effort anywhere. Um, and making sure that we have um like I joke all the time. I don't think any school district right now needs to buy another pencil for 10 years. >> [laughter] >> We have pencils everywhere, right? So I will not not buy pencils but um you know what I mean? So, it's like I can still remember walking around I got a tour
053of an elementary school one time in another district that will remain nameless. And there were totes full of Crayola markers. And I'm like, you're not allowed to buy markers anymore, art teacher. And she didn't like that. I was I'm kidding, but I'm also a little bit serious, right? So, really looking at the supplies that we buy and um and really being mindful of what we're using. So, um it's an okay budget. It's not the best news in the world. It's not the end of the world. Um but we will need to be mindful over the next 5 to 10 years on what what we are going to continue to do from a capital project standpoint. On that happy note, does anybody have any questions or concerns? Well, I'm sure there's a lot of concerns, but
054any questions? Well, first of all, thank you for imploring all of us to be good stewards of um you know, the funds the the district's funds and we're all taxpayers here. So, certainly appreciate your transparency and directness. You know, it is a situation that we find ourselves in for certain. So, I won't ask a question yet. Let me go to my colleagues. Is going Yeah. Um you know, thank you for the the presentation. And I have to say that I'm growing to appreciate the complexity of the school budget. Mhm. Um [laughter] and I appreciate the level of meticulousness. I think that's a word. You have >> be tonight. It is tonight. I we declare it. Um that [clears throat] you're putting an eye a fresh eye, I think, to the budget. Whether that be like
055you were referring to the the line item moving the charter school expense to its appropriate level, um or revisiting how you're budgeting for staffing positions to give us more flexibility um where it's needed, right? Um I think it it's not just about being creative, but it is that level of detail that's appreciated um and what's needed right now. Um Can I make one comment? I just wanted Sure. I just want to state when when 10 years ago financing in public schools was very different, so you could staff, you could budget for all of those positions. So, I don't want to say that that I'm not trying to insinuate that that's an it was incorrect in the past. Yeah, no, I know you're not. I just want to make sure I was clear. It I don't
056believe but now we have to get now we have to get creative because we can't set that money aside and run a $20 million surplus because we I need to make sure that I I'm spending that money on the deferred maintenance that we had to catch up with. So, I just want to make that clear. Like it wasn't it wasn't wrong in the past. It was just we were in a completely different financial world back then. Very good point of clarification. Um yes, no, I I think everyone um commends your predecessor um with the decisions and and work that was done. Um but I I just I do want to say now it the difference um in perspective that you're bringing is is really important. Um and it's important, you know, having that trickle down
057to everyone with really about like you're saying, evaluating the supplies that we're ordering um and making sure that um there's no duplication or or surplus that's not needed because it it is truly that important right now. Um and I I think that's becoming even more heightened in in my understanding. Um but I I think the whole community should be aware of that, too. It's not just about tightening our our our belt, right? It's it's about efficiency. Thank you. So, that was more of a comment. Thank you. Briefly, just to echo the nudge towards leaning in now. I think that to your point, there's a real opportunity to there was an opportunity in past to build a robust fund balance to be able to take on the opportunities that we need to see happening across our
058buildings now. But, we're in a position with the state of funding with their rising costs coming out of COVID to be a little bit more assertive and lean forward. And so, I'm appreciative as a board member hearing the willingness to be a little forward in the budgeting by pulling back a little bit on the salaries that historically has been savings on this budget to be able to put it where is going to be meaningful for the next little bit and really make sure that we're tackling whether it's pushing more resources into property and getting the right equipment to be able to service our buildings, whether it is being able to continue to sustain a really robust staff where it actually is. I'm very appreciative of that um push. The question that I had just sort
059of thinking about that is um are there other places where there's actually being a conservative little being taken? Like thinking a little bit about the rollover from this year to next year for federal funds or actually looking at benefits benefits costs rolling from the projection versus the budget. So, there other opportunities to think bigger as we dream about what should be happening and what we could be doing for our kids in our classrooms. Yeah, I think um right now with with the contracts that we have, we couldn't do a whole lot of changes to the the medical benefit structure. Um so, this year we really tried to get really good information to share with our with our colleagues um in the collective bargaining groups to really say these are the places that we're spending a
060whole lot of money that we think we could skinny them down. Um, no pun intended cuz I'm pretty much talking about GLP-1s, but um didn't mean to do that. That just happened. Um, so but there's like plan changes that we can do. Um, we also brought in a new um a new platform to do open enrollment. Open enrollment started on Friday. Um, and with that new platform there were some voluntary benefits that are actually cheaper. So [snorts] like people can go to the the step down plan and buy these um like catastrophic plans and some of the hospitalization coverage plans and stuff that will offset some of the cost then rather than trying to go to a more expensive plan. So we may be able to use some of these lower cost personally purchased to
061offset some of the the the ways that we build out our medical plan. Um, the other component because I know Mr. Lanier's in the back and he's probably going to come up and talk about it. Um, this is our last year with the um this is the last year of the 3-year contract with Marathon Health um and the onsite clinic. So we have um now that we have 2 years of claims data, we are asking the actuaries at Willis Towers to look at our claims data for the last 2 years and as we kind of roll into year 3 and look at where if there were any additional savings from using the Marathon Health as primary care versus people going out to their regular care doctors and paying out those claims. So I think the
062really the big places that we're going to you know benefits is a ginormous number, salaries is a ginormous number, like making sure that we are paying the right people in the right places as well as making sure that we're getting the best benefit package. Um benefits are one of the last big draws for public education. The salaries for folks are not as high as they could get in the private sector, the pension plan has been radically changed. Um so even though we're paying 30%, the pension plan has gone from a defined benefit plan to a defined contribution plan um or a a hybrid of the two for anybody new coming in. So one of the last places that we really have to draw folks in to a very challenging profession is our medical benefits. So
063we don't want to mess with them too much, but there may be ways that we can be a little more creative going forward. Um and most of that's usually around prescription formulary um and maybe some coverage of some more elective type procedures. I don't know what those would be. I'm just kind of talking off the cuff a little bit. Um but it's really the structure of those plans are going to be where we can save the save the most money. I was just going to mention um over the last I would be willing to say 10 years, at least eight, we have added staff every year. Um and this is the first year where we're we're flat. Uh we are not adding any staff for next year because of some of the reasons Ms. Hauser
064has outlined. Uh trying to be conservative, responsible, seeing what's coming. That Act 1 index, there was a time where it was up over 6% and it's now making its way down closer to 3% um and dropping. So um from a staffing standpoint, teaching positions, support staff positions, we are flat projected for next year. And I think both to the austerity comments and really evaluating return on investment for different spends right now as well as thinking about the ways to maximize the outstanding educators we've got in our classrooms. I I think that that's the right way to look at it, especially as you think about the 800 object going up and will continue to go up as uh we're not yet in the wrap phase of the borrowing. We're in the grow phase. And so I
065think that being able to find ways to pivot other spending down so we can uh attend to that need is going to be really critical. So thanks for being ahead of that. And that's not something that's going to we cannot pay. Right. >> [laughter] >> You can't defer a loan payment. Yeah. You know, I had questions and then Mr. Bell just said, you know, I want to end on a positive and he's so good. So, >> [laughter] >> I mean, I do I I I will I will hold my question and I will say that I mean, I think everything that you said that you know, we have great educators and it is important to uh incentivize really good people to to come and work in our district or any district for for that matter.
066Um I mean, we are in the business of educating um really talented kids and and it's important to figure this out whilst being again good stewards of taxpayer um money. So, thank you very much. All right. I think we Where were we? So, we did have a motion and a second. Then, we had a presentation and just to reiterate what Ms. Howard said at the top of the hour, you are not voting on the final budget. >> Yeah. You are voting on the proposed final and then we'll be >> the proposed To advertise, yes. And you will uh have another opportunity uh to discuss the budget, but this is not the final final. It is advertising the proposed final for feedback. So, this is resolution authorizing proposed final budget display and advertising. All right. With
067that, um we got questions. All those I I sorry, I had some counsel in my ear. Technically, we're just moving it to the next meeting that starts in about 5 minutes. So, we're moving it to the work session. I still We're we're voting Oh, wow. We're voting to vote on it in 10 minutes. >> Yeah. So, you all got that, right? So, we are voting to move it to uh vote in the next meeting. All in favor. Aye. Any opposed? All right. Motion passes. All right. That's it for action items. We are now down to 4A. Rebel, do you have anything to add this evening? Yeah, I just have one question. Sure. Thank you for explaining the budget. It was very clear. I appreciate that. Absolutely. I just want to say while he's looking up
068his questions that he came in around 5:15 and we had a very long conversation and I think it was a good one. I enjoyed it cuz I got to like talk about like geeky stuff that I like as an accountant. We talked all about how tax assessments work and he asked some really really good questions. So you may not be going into business, but you ask good businessy questions. Thank you. Yeah. I just had one question about [snorts] um in the expenditure budget for non-personnel, I saw some words that I thought were a little bit vague like uh other objects, but that was until you explained it um in depth. I was just wondering if when this does go out on the website like for the public, are we able to like specify it like
069for example like like supplies like we put cameras like the camera costs and then more? Um we probably wouldn't get down to that level, but the the state document that we use called the 2028 breaks it down. So the 600 is made up of about 20 different line items and it would explain all of it would name all of those individual line items. Wait, where is it again? Um so I I haven't done it yet. So it's a state document called a 2028. It's just a form number, but it's a it's required for me to put the budget out on the website. So when we put the budget out on the website on that form, it gives a whole lot more detail. Like all of the math around how we do tax assessments is in
070there. All of the math around interest is in there and then all of the math around the individual line items for the expenses are in there, too. Is that going to be released before the like final budget? Yeah, so it has to be we have to put it out in the next 10 days. All right, thank you. >> You're welcome. I I want to thank you. I was looking I especially liked the new general fund month-to-date and year-to-date net positions report. I I we hadn't seen that before and I was very impressed by that. I have to study on it a little bit more, but it contains information that was very valuable to the theme. Thank you very much. >> You're welcome. Um the next item that So that was 4A. Do you have anything
071else? You good? All right. I'm sorry. Thank you, Robert. Apologies. Um 4B is just the letter from the state telling us what we are going to be getting in the way of gaming funds distribution. So by way of um reminder, these funds go to to um fund the homestead farmstead reduction to people's taxes. So it does not reduce their tax burden, but it's like a coupon to get less money so they don't have to pay as much. So I I always like to stress that because it is not a reduction to taxes, it's just a coupon so they don't have to pay as much cash, but the bill is still what their bill is. Um and then >> If I may, I just think it's funny that how many times have we seen Pennsylvania lottery
072commercials and they say benefits older Pennsylvanians. Well, not true for other games of chance like casino moneys and sports betting. That's where these moneys come from, not from the lottery though, just to be clear. And the state lottery in Georgia pays for higher education. So. Um I am going to in the interest of time since it is 10 after 7:00, I am going to allow you to peruse items 5A through G at your leisure. And if you have any questions, feel free to reach out to me. They are all just informational monthly and quarterly reports. Um and with that, I am done for the evening. I was looking forward to the discussion on the right to know request, but I it is what it is. Um all right, so public comments. I find it's better
073just not to talk about it. >> [laughter] >> Uh one second. Um do we have anyone who would like to make public comments? If so, I will Yes. All right. Individuals [snorts] attending this meeting and intending to speak to the committee should be aware that they are being recorded in order to meet the requirements of Pennsylvania's Sunshine Law. It is necessary to record the names of all the citizens who speak to the committee during this meeting. To ensure compliance with this requirement, it is essential that those planning to address the committee state their name and municipality. As a reminder, the public comment portion of the [clears throat] meeting is designed for residents and taxpayers of the district to provide comment and feedback on matters being discussed at tonight's meeting or matters that become before the
074Finance Committee. It is not designed for debate or discussion with members of the committee. When appropriate, the committee members may choose to respond to the public comments that have been made or request that a member of the administration follow up with the speakers after the meeting. Members of the audience are asked to limit their questions and comments to 3 minutes. Good evening. Good evening. Uh Jason Liner, Lansdale. Um >> [clears throat] >> couple couple quick notes to what I was going to say, uh which I sort of formulating while we were listening, um to what Rubella was saying. I think more data out about everything would be greatly uh would benefit everybody greatly and it would reduce the number of right to knows. Just make it more public and then we won't have to deal
075with that nonsense. Um that being said, an interesting thing was that Ms. Hauser said was that we only real way is to reduce the budget is to reduce reduce employment or reduce staff. Yeah? Reducing staff or cutting staff benefit? I Okay. Let him finish his comment. May Maybe I misunderstood, but it kind of it kind of it kind of dovetailed with with a conversation I had regarding special ed assistants. And I understand from teachers that they're going to be let go on Friday. Yeah? No? That they're they're I That's what I they told me across the board. I've I'm glad for the clarification because that's what I understood. Special ed assistants. No? Well, then then I will I will set that aside. I'm glad you answered that question. I'm not sure why why that's coming
076around, but that's what's coming around. And thank you for the clarification. Reducing budgets, however, a lot of the same things I'd want to talk about. There are I don't know how many admin we have, administrators we have, but I know that there there's they're well-paid and from what I understand they get a many of them get um a uh a car supplement as well as well as salary. And at least from coming here on Fridays, it looks like they get they're working 4 days a week cuz there doesn't seem to be a lot of people here on Fridays. Am I right about this? Tell me if I'm wrong. No? They they don't get 4 days a week? Well, then there's a lot of people missing on Friday. How about that? There's a lot of absentees.
077And regarding the prescription drugs, in the private industry, maybe anybody who works there can understand when you when you go fill a prescription, you have a copay. Do do do everybody who uses the the the the health center, who gets a prescription filled of certain types, have any copay? Because that seems a little disproportionate. If we're paying the full bill, the taxpayers paying the full bill for all the medication, it seems like a lot. So, if maybe I said a a slew of incorrect things and you can correct me on all of them, but if those are if any of that's correct, I think those need to be adjusted. I'll leave it there. Thank you. Thank you. Dr. Bow? Yes. Um couple things. So, what I think was implied by Ms. Hauser's comment was, and
078Tara, please correct me if I'm wrong, as with any school district entity, 75 to 80% of our budget is people. And so, if you're going to save money, that's where you have to save money, the 75 to 80% of your budget. That was what was implied with the comment. Um you said something about people being let go on Friday that is unequivocally false. That is not true. Um and then there was a question about do we work 4 days What First of all, not everyone in this building is an administrator. I want to be clear about that. Uh we have roughly 65 I don't know the exact number. We'll say 65 administrators. Dr. Kim will correct me later. Um and most of them work in schools and in our buildings. This building has a bunch
079of office staff, but no, we are not on a 4-day work week. Um quite frankly, I implore our administrators and some of our instructional staff who do work out of this building to be out of the building. Get out, get into our schools and be with our folks. So, um I do I am very proud of the administration here that I think we are very present and visible in our schools. That said, some folks do have a benefit of working from home some days a week. There are some folks who have jobs that are not dependent upon interfacing with kids that do get to work from home a day or two a week. Um myself, Dr. Waters, Dr. Hart, and so forth. Instructional administrators do not have that benefit. So, anyway, I hope that provides
080some clarification. I don't remember the question about the healthcare center. Um the copays. There are no copays if you go to the healthcare center. That's one of the benefits. Uh prescription costs and um exam fees for primary care, there is no copay. So, I just want to be clear though that the medications that we're talking about at the health center are almost all generic, and we're talking about things that are very inexpensive, one to one to 50 cents a pill. So, very inexpensive medications. Common antibiotics, common prescriptions. So, thank you, Mrs. Reddick. Okay, great. So, we have one item that we're moving to work session, and that's the um advertising of the proposed final budget. I believe that's the only one. No? No, all of the Hang on. Let me scroll. Oh, gosh. Um A
081through J then. >> G will move to the action meeting at the end of the month. H, I, and J will move to the work session in 10 minutes. Okay. So, we are moving A through G to the action meeting, and we're moving H, I, and J to the work session starting in a few minutes. That's correct. Okay. Good. All righty. Um Oh, and then our next meeting is June 2nd. Meeting is adjourned. Need a motion for that. Oh, can I get a motion? So moved. Meeting is adjourned. Jack.