001Everybody, I can hear everybody. >> Okay. >> Are we ready to start? Is everyone here? >> I believe uh one, four, five, six, seven, eight. Who am I missing? >> Catherine's I see Katherine on. >> Rosemary, keep trying. Let me know. I have Rosemary on the phone. >> Okay. >> Uh let's see. >> 89. Oh, there's Mrs. Chzet. Nine. I got nine. I got nine. Count it to nine. >> 6:30. I call to order the meeting for Wednesday, November 12th, vendor relations committee and special meeting for general purposes, including the proposal of the 2026 budget and training. Please rise for the pledge of allegiance. I pledge of allegiance to the flag of the United States of America and to theublic for which it stands. One nation under God, indivisible, with liberty and justice. >> All
002roll call. >> Mr. Borthwick, >> here. >> Mr. Casey, >> Mrs. Chzik, >> present. Miss Fox >> present. >> Mr. McCandrew >> present. >> Miss Merkel >> present. >> Mr. Leki >> present. >> Mr. Triano >> Mr. Holmes >> present. >> Nine present. >> Before we begin the meeting I will turn it over to Rosemary Bolan who will be speaking about >> you can >> former Scranton city mayor and Vietnam veteran Mr. Dave Wel. Rosemary. I'm I'm trying to get her connected here. Let's see. >> Uh let's see. >> Okay, >> there's an iPhone now. If that's her, >> is that you, Rosemary? >> Yes. >> Can everybody else mute their phones while she's speaking, please, so we don't have any >> Okay, I don't I don't hear you there. I don't think that's you.
003Let me see. >> Yes, it is. I'm on. >> Okay, >> I can see you. >> Can Okay. Can you can everybody hear Rosemary? >> Yes. >> Okay, I'll hang up the phone down, Rosemary. >> All right, from >> Okay, bye. >> Okay, you're up, Miss Bullen. >> Everybody or good evening, I guess we should say. Um, I thank you, uh, President Holmes for allowing me this time and especially Danielle Chzik and the rest of the board for taking this opportunity to let me speak about a dear friend of mine and probably about a friend of many of you. Uh Dave Wzel, as you all know, was mayor of the city of Scranton, and he was uh honored last week by the University of Scranton uh for his distinguished service, a life of service. And
004I was at that event and during that event there was a phone call to Carol Wel Dave's sister-in-law and it was the Gino Merly Center telling Carol uh that her brother-in-law had passed which was so terribly ironic that that would happen that night. So I walked over, I interrupted and I asked Janet Wel to walk with me towards the door to get away from a lot of people and Janet took the phone and Janet Wel, the mayor's wife, um was given the notice that Dave had passed. Uh, I never had that happen to me, I guess, in my whole life where I was at an event to honor someone and that same person passed away. It It was so terribly ironic. I wanted to just say a few things about David that maybe some people
005in our city don't know. You know, they people say a lot, what is the measure of a man or what is the measure of a person? Doesn't matter uh what gender, but in this case, what's the measure of a man? I knew Dave Wel for quite a number of years. I know Janet Wel, who many of you probably know was a teacher in the Scranton School District. When Dave was wounded so severely, it was at Prescott School, she was notified by the military when they came to the school to tell her how terribly wounded David was. her sister, her sister Carol Wel, she taught with me at Woodier and she taught at Ottabon School and over at John Adams. Uh, and Janet herself taught in multiple of our buildings. Uh, two of my closest friends
006on this earth. So, uh, one morning during the summer many, many years ago, Janet Wel phoned me to say, "Rosemary, David's going to call you and ask you to go to the movies. I want you to tell him yes. So I said for what are you talking about? She said no I have to hang up. He's calling you right now. So he did and I said okay yes I'll go to the movies. And in one summer we saw 10 of the worst movies ever made in this country. And it was also carried in the Scranton Times the 10 worst movies. And that is the kind of uh fun I had with him as a wounded soldier, but more importantly as my friend. I read in the newspaper one morning in the letters to the editor
007that he should be pro-life. I was taken aback by that because I never met any person who was more pro-life than David Wel. I would like everybody in this town to know what it's like to wake up every single morning and have to strap on two legs, two prosthetic legs and a prosthetic arm and carry on as if there was nothing difficult about that task. I witnessed that task many, many times. And I'm sorry to say that I don't know many people in our community who realize what's right in front of their eyes. Maybe we see things that we we just don't see or we're so used to seeing them that we don't pay much attention to what we're looking at. And in David's case, he was such a unique individual. You all, I know
008you've all read about him and probably some of you knew him a little bit, but this was a man who I consider and I very rarely use this term. He is a hero in my opinion. And what a tremendous example for the children in the Scranton school district or anywhere else. He was a model of what it means to have such great dignity and respect. He was a caring human being. He was absolutely pro-education as obviously with the his uh wife and sister-in-law and also David has a niece and a nephew and I had the privilege of teaching them at Woodier and it was unbelievable how wonderful he was with those two children. David loved kids. He came, excuse [clears throat] me, he came to Woodier. Uh, we had to figure out how to get
009him into the school. Then we had to figure out how I would be able to get my class to that location so he could talk to them. He He talked to them about Vietnam. He talked to them about what it's like to be a soldier. He showed them his medals and explained to them what it is to get those medals. and he talked to them about what they wanted to do. He talked to them and encouraged them so much to do the best they could do at school. uh he was a shining example for our students in this district to for him when he came back as many of you do know I think he went to the University of Scranton and that's where he was in Rosi and after he left Vietnam so severely
010wounded he actually um came home from Valley Forge and he decided he would go back to school for his MBA and he did do that and he met many friends at the university Many many people so respected him for his I don't know tenaciousness I suppose to to do what he was doing and I would love to have everybody understand what what we had in the city of Scranton for all these years. He's he passed away at age 80. And what a wonderful wonderful time he showed in this town what it means to really be a true human being. Don't pass out when I tell you now that David was a Republican. And yes, I did work for him to get elected to office because I felt when you see a person like David and
011he represents the real American ideal of democracy, I had no no choice but to work for him and he was elected mayor. So, I just hope it's my fervent hope that everyone in our city realizes down at the Gino Merly Center or anywhere else in a veterans hospital or anywhere on the street we meet a veteran whether they're doing well or whether they're in bad shape and need help. It's our responsibility to take care of our veterans. Absolutely positively. It is our American responsibility to take care of our veterans. They took care of democracy for us. We have to pay them back. And I'm getting the feeling in this country lately that that's not happening. That people like this are being ignored. They're not being taken care of. And that is a promise we have
012made to every veteran since I read a book. All we have to do is realize what we owe to these men and women in our services. And it is high time. We better get back to teaching about this in our schools. I did call Dr. Keing and she knows I'm bugging her about this. Starting on November 16th on PBS, there will be a series, Six Nights, Ken Burns, the American Revolutionary War. I encourage everybody to watch it and to remember the ideals that we live by in this country. We are the greatest nation on this earth and we're forgetting that. We're absolutely losing sight of it. And David was the perfect example of what it meant to be a true American and in my book a true American hero. So I'm asking everyone to say
013a prayer for their family, David's family, his wife and sister-in-law especially because Janet Wel, the wife of a veteran like this, deserves a medal herself. And so, uh, with that, I'm not going to keep this school board, but I would love it if you would all please encourage all of our faculty to remember what Veterans Day is all about. I know at the university when I taught there, I put would even know they none of them knew what 11-11 meant. They had no idea. And they were [laughter] they were giving me all kinds of answers except the correct answer. [snorts] So, um I'm going to close with that. I want everybody to celebrate. We have to start doing our patriotic songs again. We have to celebrate Flag Day on the 14th of June. And most
014notably, we should absolutely be celebrating November the 11th because from World War I forward, we have lost so many giants. and I thank you for listening. >> Thank you, Rosemary. Before we move on, I ask everyone to please join me in a moment of silence, not only in honor of Mayor Dave Wel, but in all veterans. >> Thank you. Thank you again. God bless Comm's family and again to all veterans. Thank you. We will now turn over to our meeting to the vendor relations committee. >> Thank you, Mr. Holmes. And on behalf of the whole board and the district, we know that you are a veteran, a proud veteran. Uh we'd like to thank you and your family for the service that you gave us to help keep our democracy strong. Thank you. And uh
015on behalf of the board, our condolences to the Woodsel family and thanking them for their service. I learned when I worked at the Gino Merly, I worked at the Gino Merly for 18 years and I got to know a lot of the veterans. But when you're a veteran, it's not only you, but it's also their families that give service to the country. And I'd like to thank all the families of all veterans, especially the Welo family. And I'm now with vendor relations. Um the first one is the West Granton High School Gem Project. >> So at this time um I do not have any drawings um or anything submitted to me to be able to present to the board. Um there are stillformational meetings taking place uh with vendors to gather information. Um there is
016not a final submission of materials to be presented. The process is still underway at this time. Once there is a final product, it will be presented publicly uh for the board to be able to review also sent your packet. Erin, if you could uh contact uh whatever vendors are making uh designs and ask them to submit them ASAP and so that when the new board comes on um they can at least have an idea. >> So I'm gonna I'm gonna take this personally, Director Casey. Now I will reach out to both vendors tomorrow. Um, I will now own this and I will ask them for a timeline of when drawings will be complete so that the proper vendor relations meeting can be set and that you will have specifics on when we will have actual
017drawings for review because I very honestly at this time I don't have that information. So I would never want to stand up here and not be fully transparent with the board or the public. So, I'm going to take this one on personally at this time. >> Thank you, Erin. On to the next issue. Uh, the West Scranton High School continuity of operation plan. [snorts] >> So, um, over the weekend, um, I was out of town, so it was a little crazy for me. I'd like to to thank very much, uh, Mr. O'Donnell for stepping up and for filling my shoes very very well when I was gone. um and doing a very good job um in in my absence. Um we had an issue with boiler number two at West Scranton High School. Um when
018that happened in the overnight of Thursday to Friday morning, we were unsure at that point what was going to happen. Mr. Duca immediately stepped up, met with multiple people and had put what we call a continuity of education or continuing education plan in place. What would happen here is we through the department of education would have to have approval to alter how education is being delivered from the traditional brickandmortar uh process to other formats. Mr. Duca, if I'm explaining this wrong, please jump in to me at any given time. But essentially what we would need to do is take any type of fulltime special education class and it would need to continue to operate in another location, another school essentially um so that those children were still receiving the full-time um education they need to
019meet their exceptionality. At the same time, we would be transitioning our or what we would call our regular education students onto a synchronous virtual environment. We would have um places located where if we needed support or help built in um or anyone who had special needs. In addition, we must be able to serve breakfast and lunch every day. Um we would need alternative plans for our CTC students. Essentially, we would need to still be able to operate school, but we wouldn't be able to access a building because of what happened. We started this process with West Grant High School. I'll let Mr. Duca speak in a second. Um, but after this, we are actually going to start building these out for all schools because listen, I have an old home and I had things happen.
020Steam pipes burst and other things happen and water pipes go and you it's not a good situation for a couple days and in any of our buildings, new or older, this could happen. So, having these continuity of education plans approved and having a plan ready to go is just an element of preparedness that will put the district in a better place. Mr. Dr. Duke, is there anything else you'd like to say? >> No, Dr. Kitting, you're on point. >> Dr. Keing, if I could just add one comment related to the the meal service. When you're serving in a virtual environment, you do require a waiver from the Bureau of Food and Nutrition. Um, I've been in contact with them. They say that they can grant us a 10-day waiver, but anything beyond 10 days would
021require USDA approval. So, in the event that an event like this does happen and we need to pull this trigger, we will be applying for those for those waivers. Okay. Anything else on this subject? If not, uh, we'll go to the flexible spending accounts. >> I'm going to turn this one over to Mr. Laffy. Are you okay with this one to talk Pat? >> Sure. Yeah, absolutely. Um, in your in your weekly packet, um, there was some brief information on some data we collected related to flexible spendings accounts. Obviously, a flexible spendings account is a is a pre-tax deduction that employees can contribute to to help cover some of their um you know medical costs, whether it be your deductible, your prescription co-pays, your contacts. The list goes on and on and on. As well
022as there's some options for for dependent care. The advantages of this for the employee is it obviously lowers their taxable income. Um so saving them approximately 25 to 30% on on their on the deduction. Um, as an employer, it also lowers our uh share of the social security and and Medicare taxes. Um, I was contacted by someone locally, a firm called Dehe Mckendrew, who offers a service like this and provides provides services for um, districts in the area as part of the NEIU 19. I'd say possibly five or six. I don't have the list in front of me. Um they they offer a uh Scrantonbased location with access to uh reimbursements, you know, relatively easy or quickly. They have a debit care program, excuse me, a debit card program where um you know, all employees
023enrolled will have access to utilize that as well. They do charge a fee. Um I believe there's an administrative fee for uh let me see if I can find it here. I wasn't quite ready for this. um approximately based off of,250 employees, um we're looking at probably a fee structure that would cost us about $17,100 a year. Um again, if employees do enroll in this and contribute pre-tax dollars to their FSA account, it would lower the the district's social security Medicare expenses as well. we would need approximately $225,000 in employee contributions to actually offset that $17,000 fee. A second firm that has been that we've been contacted with is more of a nationwide um or Pennsylvania firm. They do have Scranton and dedicated account managers and they're called American Fidelity. Um they currently work with
024the IU18, the IU19, um Lacana Trail and some other um districts up in here in the northeast like Tanda, Northern, Southern Tigo County, Wellsboro, Jersey Shore, S etc. Um they um there would be no cost for them to to provide this service. Um how would and I asked them straight up the question, the straight question like, well, how do you guys, you know, basically cover your cost of running this program? Well, they they would the agreement would allow them to offer voluntary benefits, voluntary um insurance benefits uh to to our employees as an offset to that fee that um that um the local firm would would would charge. Um I will note that our current healthcare consultant BSI most likely would could provide a service like this as well. In a previous presentation that they
025provide to us, they say that there's a cost of approximately three to four dollars per enrolled employee for it. So, um, we presented that information in a summary form to the board this past weekend and, um, in anticipation of this meeting for, uh, for the vendor relations happy to answer any questions. >> So, Pat, um, in this situation, are we basically as the vendor relations committee going to discuss this and recommend something for the motion for the full board to vote on? >> I I I think that's typically how it work, Tom. Um, you know, most motions being written say it's the recommendation of the committee and the superintendent to to move forward. So, we put it on here for discussion. >> So, um, the the what was the name of the the local firm
026again? Um, >> deeandrew. >> Dehe Mandrew. So, I I dealt with them at Riverside when I was a teacher there. Um, they're very professional. They're local. I think their their office is on Main Avenue. Um they were always very accessible if and honestly if you didn't even utilize all of um the funds they they were willing to you know give give checks like they're really great to work with. I'm talking from professional experience as a teacher at Riverside. Um you know so I I would love to support local. We I know this board has spoken quite a bit about you know making sure to support uh Scranton businesses and people that invest in Scranton. So, I I don't know if we have to do like a a vote as a committee or what. Um, but
027I would definitely move to to support um moving them forward for for board consideration. Um, I don't know what my other vendor relations meeting uh committ agenda for tonight, correct? >> Yeah, the committee's going to make a recommendation. >> So, we could vote on it tonight. >> Just got to make a recommendation to bring to the >> What do I need to do? make the committee needs to make a recommendation to bring to the meeting right after this. >> Anybody who's on the committee have a problem with this? >> If not, we'll move it to uh have the motion to approve tonight. I just want to point out it's Danny McCander. I'm not related to the manders or affiliated with this. So, sure. I put that out there. >> And finally, move it to the
028the next agenda. >> Pardon me. I'm fine with the plan. >> So, we'll vote on this tonight. >> Okay. And the next item is the construction manager contract. Is Mr. Moran with us? >> Attorney. >> Oh, sorry. There. Attorney Fitzgerald is with us. >> Thank you, Dr. Katy. >> So, I know that attorney Moran is still negotiating the construction management contract. Uh it's my understanding that it was uh quite expansive. Um and it's my understanding the negotiations are still in in progress on that. >> Okay. Thank you. Uh the next one is the photocopers. Um >> again, attorney Fitzgerald will be updating us. >> Yes. Uh so the will of the board uh is for the district to negotiate directly with vendors uh for services and to no longer follow or adhere to you know
029our previous RFP policy. Uh since this change occurred during the pendency of the current copier and print services RFP, uh it's the solicitor's office and our recommendation here uh that we first end that RFP by rejecting all the propos proposals uh before attempting to negotiate with any vendor uh especially since some of the proposers have already attempted to either modify or reduce uh their pricing after the proposals were opened. Uh so that's our our recommendation here is to uh close the RFP by uh rejecting the proposals so that the districts and us we can uh yeah negotiate more freely with >> proposers >> that's on the agenda tonight to be voted on to uh >> correct. Yeah. >> Is there anybody on the committee who has a problem with rejecting the If not, >> are
030there any questions to attorney Fitzgerald? >> Uh, sure. I I guess I wasn't here last meeting and I'm kind of I don't understand who answers the question of that initiative in the recovery plan about um the RFP process. Um I I did listen and I know that Dr. Sailor said PTE would tell you to defer to your attorney. Um I I don't know if my questions were kind of confused because I was just asking what our obligations are to the initiatives in the recovery plan at this time. Um I I was looking I saw a letter that we received from Dr. Sailor last January like in 2024 and that was regarding like the tax increase but it said that we during monitoring still had to follow all the initiatives of the plan. So I was
031just looking for clarification if that's not the case anymore. Anybody else would like to speak on this subject? I >> I guess we just got to confirm >> in the >> Wait, I'm confused. I asked a question. >> Yeah, and I'm I'm gonna I'm speaking about your question. I think what you're asking is are we in the monitoring phase plan? Is there still a line there that says we have to put things out for RFP? My understanding was I don't think it is. So, can we have that clarification from either the attorney or um >> Dr. Sailor? Repeat what she said at the last. >> Yeah. Yes. Okay. >> Dr. Sailor. >> Um, excuse me. If I could just clarify my question um because I I I was just speaking and uh my question was
032I did hear what Dr. Sailor said last time and I did send her other questions too. So, um her her advice was to ask your attorney. I don't know what exactly that was for. So, my question isn't directed to any board members. It's directed towards either Dr. Sailor or the attorney that's present at this time. Um, we did receive a letter in January of 2024 while we were in monitoring that said while we're in monitoring that we must abide by the initiatives in the recovery plan. So, my question is just there's an initiative in the recovery plan that we should um as Dr. Sailor stated last meeting uh continue through the RFP processes over and over. Um, so the question is just to Dr. Sailor or the attorney if we still need to abide by
033the >> go lower because you're coming across blurred and nobody in this room can understand you. I'm not trying to shut you down. I'm trying to get your opinion so we could understand. >> I understand. Thank you. I understand. Thank you. Sorry about that. Uh, just to clarify, if Dr. Sailor or the attorney present Yes, thank you. could clarify if while in monitoring I'm okay with whatever the answer is. I just need a clear answer. Um because uh the the statute and such makes it seem as though while we're in monitoring that we need to abide by the initiatives and the plan still and that is backed by the document that we received about the tax increase in January of 2024. So I'm just looking to to know if something has changed while in the
034monitoring phase and that we no longer have to abide by the initiatives in the recovery plan. >> Dr. Sailor, can you repeat what you uh stated at the previous meeting that uh director Fox is absent from? >> Yes. And as as I said at that meeting, PTE does not give legal advice. And I believe um attorney Moran at that meeting said he felt that the board had followed that by requesting proposals and the fact that they had rejected all of them did not change that. U but I'll let attorney Fitzpatrick Fitzgerald, I'm sorry. Oh, >> all right. Dr. Sailor, that's that's accurate. By engaging in the RFP process here and rejecting them, we are continuing to abide by that that plan. >> That was my understanding >> and and that is what what's occurring now.
035>> Thank you. >> Okay. Um if no one else has anything else, uh we'll now move to um um Ty. Are we going to go or do you want me to take the rest of the meeting over? >> No, that comes back to the president. >> Number seven, updates and enrollments. >> Eric, >> I did send a memo to the board. Um I just want everyone to know in July when we had a vendor relations committee meeting at that meeting we talked about enrollment because at that time we were unsure where would enrollment would be. Enrollment has been pretty consistently oscillating between 9350 and 9370 um on weekly enrollment reports. Uh today's report we saw a little bit of a dip. It was 9343. Um and we watch these es and flow in enrollment happen
036on a pretty regular basis. Um up by 10, down by 10, back up again, but somewhere around 9350 seems to be as of the October 1 PIMS poll where we are holding. Um we had ended the year almost in a similar place. Um and we are holding steady with that number. Um it is really important to also let you know that in looking at enrollment for the 2627 school year, we have a projected um early intervention enrollment of between 160 and 180 students. This is up from the 140 students this year, which means that we will have to be considering the possibility, and it's in tonight's budget presentation, of 8 to 10 additional full-time special education classes moving into the 2627 school year. Um, so I did say that I would give an update. I
037know that there's been two board memos put in the packet uh with enrollment figures. Um, but that seems to be where we're holding right now. Mr. Mr. O'Donnell has some information on the prek numbers as well. Mr. O'Donnell. >> Yes. Uh prek we have three classrooms. Plaza is at capacity. Sar is at capacity and Adams only has two spots left. So they will probably be filled within the next couple weeks as more parents are registering their their children for excuse me for preschool. I I don't mean to jump ahead, but um with the with the situation with the budget being passed, is there an effect on our ability to either internally or in conjunction with Head Start potentially look at expanding the amount of class offerings we have next year? >> So, the request was
038actually made, director Borthwick, to look at expanding during the course of this year, similar to how we opened up a class at Charles Sumar in the middle of last year. Um, initially when we were looking at that, we were looking at where the enrollment number sat at the beginning of the school year without a state budget. Um, I don't know or could I comment with any kind of authority if that possibility still exists or how it will exist. Um, there were prek counts and prek numbers that were released today with the budget information that was there. I will absolutely do follow-ups um with our local um our our local partner um in these classes as well as with the Department of Education and I will make sure that that information is updated in a board
039memo either by this Friday or over the course of the weekend to be uploaded for the following week. >> Thank you very much. >> Pat, budget updates. Yes, good afternoon everyone or good evening, excuse me. Um, I'm going to go through the brief presentation of what we will be requesting the board to uh vote on this evening. Uh, just give me one moment. I will share my screen. Okay, great. Um, so as you know, we're we're entering the second step of the of the budget process. Uh, the first step was the adoption of the preliminary budget over o over the summer. This is the second step which is adoption of a proposed final and then the last step 30 days from now is the earliest that we can do it is the adoption of a
040of a final 2026 budget. So this evening we are uh we are looking at um we are presenting to you a budget of $241.4 million of revenue and $241.4 million of expenditures inclusive of a $5 million budgetary reserve. Okay. So that that's actually $236 million of of actual expenses. All right. In this budget, we have incorporated some of the positive news today that we heard about the state budget. While I've not seen anything officially related to numbers for the Stranton School District, I have seen certain data that would indicate that Strand School District would be a a um uh a district that would receive some significant increase in some of our state funding. So, so I just wanted to note that that that has been included um in this um in this proposal. You'll you'll
041note that similar to July, we've we're we're estimating a starting fund balance of about 32.4 million. I want to say that prior to final adoption, I will be updating the 2025 budget to a projected actual, but I've been unable to do that at this time with the lack of state subsidy. I'd be it'd be purely a guess as as to what we'd be getting. So now that we have some firm fixed numbers, we believe I'll be able to kind of give us a a projected actual for for 2025 as we move into the final budget. So that 32.4 million will certainly change. Um, but looking at the 324, it currently consists of 27.4 of an unassigned and a $5 million uh committed uh amount uh for specifically for capital improvements. That puts our percentage of
042unassigned at about 11.36 and percent of our estimated expenditures. And as we move into the final budget, it most likely will be the recommendation of the administration to commit funds for either future capital improvements, potentially challenges to the um recent reassessment that we'll be implementing, which we will be discussing uh in just just a moment. Um but we will be bringing that forward for you. Again, it it does comply with the recovery plan specifically initiatives RO1 and ad and admin05. Okay. Uh just jumping into this you'll see that um the state subsidy just from a revenue standpoint it is our largest source. It's 64%. You've heard Dr. Keing and I say that through this budget impass how much we rely on state subsidy with over 64% of it coming uh from the state sources. Local
043sources represent about 32% and the federal and other financing sources represent about 4%. On the expenditure side, uh no surprise here, um instruction is our largest expense at 64% followed by our support services 25%, debt service being 8% and our non-instructional supports which is your 3000 such as your student activities, your student athletics, etc. at 3%. So, you'll see um just a little bit here of just what we've done, well, what we've been able to accomplish with the district in terms of our fund balance growth. We went from essentially prior to 2020 having a negative fund balance to again up upwards of $32 million that we're projecting for for for 2026. Um just a quick snapshot of u of a five-year uh actual unudited and and and budgeted trends by high high level function here.
044and then we'll jump into local revenue. So at at the local let me zoom in for this so it's a little easier to see. So at the local revenue side um obviously we know that the there has been a countywide reassessment. Okay. And that countywide reassessment has to be converted based on a revenue neutral uh calculation. So what we've done is we received the the non-certified assessed values from the assessor's office. It was approximately $6.2 billion. The recent news of the poss the potential sale of the hospital most likely to a nonprofit. There's an additional that's potentially 187 million of new assessed value that will that could become non-t taxable. So we've set our millillage at just over 6 billion. I'm sorry, our assessed value at just over 6 billion to come with a revenue
045neutral levy. You'll see here in this section here at the bottom of the table of 53,6339,673 we'd be converting our millillage from 147.849 to 8.91495. Okay, so that is a preliminary number. Now let me say that this will change. We anticipate these numbers, the the reassessment being certified on on November 15th, but based off of the data that we have now. Um, this is the estimated millage for this period of time. As that assessed value changes through certification, we will modify that millillage to still come in at a revenue neutral levy of 53.6 million. Okay. On a positive note, you'll notice in the next column over, which is the state property tax reduction allocation, we saw an increase of that for about by about $600,000. So, there's now an additional $600,000 that will be given
046out as um as an reduction on people's tax bill for eligible properties. Okay. So, that's so that's great news. Where we get very tricky on this is right now the exclusion amount that people receive on their tax bills for homestead property tax reduction cannot be in excess of 50% of the median assessed value of a homestead property. We don't have those final numbers just yet, but based off of the prior numbers and an estimated calculation of what those newly assessed uh values may be, we're cutting it very very close. If for some reason the exclusion amount exceeded the excess of 50% of the median assessed value, that balance, that excess would have to be distributed to all properties in the city of Scranton. So we we we may have to um uh rework our military
047calculation just slightly slightly but at the end of the day it's going to be revenue neutral to the school district. The state has taken on a larger share of property tax relief to the tune of 7.7,665,000. Okay. So that's so that's positive news. Um here's our act one index limits. Um there is no tax increase proposed in this um um in this proposal. So, that's positive news. Um, obviously the timing of this is is is very um uh positive with the state news this this afternoon about the budget coming out. Okay. So, so we are not proposing in light of the state news that just came out today and the estimated state funding that we will receive. We're not proposing a tax increase, but we would be able to raise millage by 6.1% according to
048that to the act one. all other um all other local taxes will remain at the uh at at their current levels. So jumping into the state revenue again we did incorporate some figures that we've heard or seen circulated related to the Scranton School District. Um you know the the proposal today did include down here in the yellow $105 million into BEF which we estimate to be a Shouldn't have done that. uh we estimate to be an increase of about 1.4 million 1,ion392 for BEF. We're assuming again we have to assume two budget cycles for that a similar amount of funding is put through the BEF formula which is another 105 million or another increase about 1.3 million. I'm going to show you in the next slide how we calculate this. For special education funding they
049approved 37.4 4 million new money which would equate to about 469,000 of new money for the Scranton School District in 2526 and assuming a similar uh investment in 26 27 approximately 400,000 that number decreases just based on our share of the ADMs. Okay. So as you'll see here when we're calculating our basic education state subsidies we need to take into consideration two two items. We take into consideration a 2526 budget broken up into two installments 45% and 55% and a 2026 27 budget which we haven't even seen yet. Um again broken up between 45 and 55% coming down to what we're proposing for bees and special education, excuse me, of 76 million uh just over 76 million in BEF in the calendar year and just shy of 11 million of special education in the calendar
050year. Ready to learn block grant. Again, in in the proposal, there is an additional 9.2 million of ready tolearn block grant, 8.4 million related to the adequacy funding, and approximately 800,000 in tax equity supplement. Um, so adding that on top of the 17 million we already previously had, we're budgeting 26.2 2 million for the total three buckets of the ready to learn block grant which is your foundation, your adequacy and your tax supplement. Unlike BEF in special education where we assume to have future investment um in the 2627 budget for this purpose we've said that we're we're going to hold that flat that there wouldn't be new additional funds. It would just be re recurring. Okay. Um so those are your large your three largest outside of reimbursement for Pasers your state revenues. Okay here
051is your um why that box is around that. Sorry pardon. Um but our federal revenues uh we are assuming a 20% reduction in our title one uh from our 2526 allocation for 2627 and the complete elimination of titles 2 3 and four for 2627. Um, in total, we anticipate that to hit the 26 budget cycle with the impact of about $1.375 million. When that becomes fully implemented, meaning we don't have one year of funding, it's going to be over $2.7 million of a reduction in potentially of a reduction in in federal funds. What is not included in this budget is any reductions of expenses that were previously funded with title dollars there. It's assumed for this presentation to that to that loss revenue to be picked up with other sources in either the local or
052the state level. Most likely these the the additional regular block grant for adequacy will be able to under some allowable use pick up some of those costs. But again that will be some future discussion that that we will have to have. Okay. Uh just jumping down to I apologize. I don't know why these little text boxes are are on here, but um we've Sorry, it's hard to present. Again, this is just a breakout of all of our different revenues from local, state, and federal. Um totaling for a 5-year period totaling 241,42,000 uh $42,618. Jumping down into our our expenditures, you'll you'll notice that we have again this is broken up by object. We we saw approximately about a $10 million increase related to salary and benefits. We look at purchase services as a whole, 300s,
053400s, 500s. That's about a a $5 million increase. Our 600s and 700s um actually were reduced by approximately $700,000. and our other financing sources and uses which is primarily our debt service and again our budgetary reserve kind of held flat. So what attributes the $10.7 million increase in wages and and benefits? Well, obviously we have all of our contractual CBAs which run through 2028. So incorporated in this is all the contractual salary increases. Okay. We've also um as you know restored certain things like the middle school schedule. the expanded prek. What's also in here I do not have listed is the transition from contracted services to salary for our school safety officers. Our SSOs were previously a professional service that we contracted for out of our purchase services. Now that there are staff this that
054aid of that impacted or increased on the wages and benefit side. Additionally, there's a 27th pay in this calendar year. um uh while it only affects a small amount of of um of district employees, that did add to the cost for the calendar year um this year. And we've also increased our health care by about $1.5 million based off of where our where our claims are. We've also added many positions as Dr. Keading noted related to some of our enrollment. inclusive in this is 16 positions related to autistic support. Um both professional and pair professional excuse me 17 positions and then and then a supervisor elementary STEM teachers there there's eight positions and then many positions that have remained vacant in 2025 while we kind of dealt with the budget impass of the state. We
055said to you last year these were positions that we desired to have but we weren't going to fill them until we knew that the subsidy was was going to be coming. So, these have been sitting vacant now for almost 11 months. But, um, you know, these are all the new positions included librarians, library clerks, some IT staff that have been vacant. A grant writer that's been, uh, that we previously shared with the city of Scranton has has been vacant. And just recently, I know Dr. Keing uh, informed the board that we were fortunate enough to receive a restorative practices grant. There will be a floating assistant principal that is grant funded uh, with those funds. Um, purchase services. Again, as I noted, those are three, four, and 500s. Um, that is an increase from year
056to year of about 5.1 million. The primary driver is special contracted services. Again, we heard we we've talked about the increase enrollment for autistic support. In addition to the staff that we have in terms of the professional and pair professional, there are all the ancillary services that they require. And many times we need to we need to contract with these because we're unable to staff them. Um, additionally, special ed outside uh tuition placements as well as our charter cyber tuition of about 3 point that that accounts for about 3.9 million dollars of our uh growth in this area as well as student transportation. There's some contractual increases in student transportation, but we're also adding more vehicles. Um, our transportation contractors have been great working with us as we've struggled with new um, specialed transportation needs
057as well as some homeless and foster needs that have that that have driven. So, we've we've assumed to add some vehicles uh, for 2026 calendar year. However, I do know Miss Maloney and some members of our special ed department are trying to work together to mitigate that increase as much as possible. Just jumping down into our 600s and 700s, which are your books and your periodicals and your equipment. As I noted, this is actually down by about $725,000. You know, that's um that's good news. That's that's fantastic news. Um the biggest reduction in this is really with our in our in our IT budget. Mr. Suma did a great job of analyzing, you know, what we've been allocating his department and he was able to reduce his line item budget by 650,000. That has a
058lot to do with how we strategically utilized our ESSER dollars. Um, at the end of the ESSER period, we invested in things like Chromebook carts and we also changed how we handled our Chromebooks at the K to8 level by having them remain in the buildings. It's mitigated the losses that we've experienced with some of these devices. Um, we've also instituted a repair program, in-house repair program that has, you know, helped us kind of sustain a warehouse of replaceable devices in the event that that it's necessary. So, out of your um 2841, which is your IT department, 700 line item, there is a reduction of over $650,000. So, that's directly attributed uh to that number. Okay. Debt service um modest increase. It's about 19 and a half million of about 367,000. As you know, we issued
059uh $30 million of additional debt at the end of 2024 in early 2025 for capital improvements that attributed to that. That would actually have been higher. However, tomorrow we will be closing on the refunding of the C's and D's with the 2025 A's. that will realize us net present value savings of over $400,000 over the life of over the life of the bond. So, um that uh that increase was actually offset slightly in year one and will continue to be lower had we not refunded the bonds 2017 C's and D's. Um so again lastly just making it up so the the it the budget does contain a budgetary reserve of over five million. Again, that's that's a positive. That means our revenues are have exceeded our expenses by $5 million. Now, when I presented to
060you back in July, this number was higher. This number was was 7.3. So, a lot of things have changed since then, you want to highlight as to kind of why this went down slightly. Again, it went down $2 million. When you think about a $200 million budget, it's only 1%. But um 600 there was an increase of in healthcare as I noted of over a hund of over a million dollars. We also decreased our title one by an additional 10%. In the preliminary budget we'd only decreased it by 10%. Now we're decreasing it by 20% after kind of some of the news we've been hearing. We don't know exactly what what it's going to end up but we'd rather be on the conservative side of things. So there so there's an additional 600,000. And as
061I mentioned, you know, the there's a the 27th pay, I'll call it an anomaly. It only occurs, I think, once every seven or 11 years. I should have caught that back in July. I didn't realize it until recently. So, that's going to add about $400,000 of of salary cost um salary and benefit cost uh in the 2026 period. That totals about 2 million of the 2.3. So um just going on through you can at at your leisure look at every single function and object for the last 5 years actual unodudited and budget and proposed final budget. Um again in in in the end it totals again $241 million $42,000 inclusive of that $5 million uh budgetary reserve. be happy to answer any questions. >> Pat, in layman's terms, for the people who don't understand a
062lot of this, >> you're asking us to vote on this preliminary budget tonight. >> Yeah. So, Director Casey, we will be asking you to vote on this. >> Oh, sorry. >> Let me finish. Are we or are we not the people of the city of Scranton going to see tax increase with this budget that we vote on tonight? There is no tax increase with this budget. There is a change in the millillage, but that is to re to balance it out with the new reassessed values. So, we will we will be calculating the millillage at a revenue neutral rate. So, there's no tax increase. We all understand what you're talking about, but the lady up in Nordstrand or Greenidge or whatever, these figures are what they want to know is one thing. Their tax bill
063is not going to uh reflect a tax increase. I will say the millillage set by the Scranton School District will not include a tax increase. Whether their assessment changed in a up or down compared to the reassessment, that's a whole different story. Director Casey, I want be very careful. >> Excuse me. >> That's the county commissioner's problem. the reassessment, not all. >> Our rate will be set to where we are revenue neutral, which does not increase the tax revenue generated by the Scranton Schools. >> And we have no uh control over the reassessment, >> correct? Yes, >> you answered all my questions. I >> I have a question. Um the city of Scranton is so right now property taxes are divvied up between land and improvement and the city of Scranton is going to combine
064them into one valuation. Is that something we have like do >> ours is already one valuation? We don't have a separate land and improvement. >> We don't have to worry about that. Ours is always been one value and I I just want I should have said this at at the beginning. The action that I'm requesting you take tonight is to approve this this budget with the understanding that anything you do tonight that is not concrete. It can be amended. It can be changed. In fact, the administration will continue to refine this um as as more information becomes available. Okay. So, it's this merely sets the 30-day clock so that come the middle of December, 30 days from now, we can adopt the final budget. >> And Mr. Laffy, it will be available on the district
065website for anyone to review. >> Correct. In fact, it'll be at the website and I believe also across the street at the public library. We will have a copy as well. >> Thank you, P. You're doing an excellent job. >> Thank you. >> A lot of team work here. Yeah. Thank you guys. Thanks to the central admin team again, everybody for working with me and getting all the information easily, readily available. >> Anyone else? Uh, since we don't have any public comment, we're going to go ahead and move to the voting. Um, I was going to have each committee just read it, but we're just going to go down in line. So, up first, budget and finance, your 101 10 two, please. >> Okay. So, uh, we have a list of bill payments, $578,151. Finan
066financial impact is $356,8208. Respectfully submitted. Second >> on the question. >> Pat, how is the bill 578, but the financial impact is 356? >> Oh boy. Let me see. Hold on one second. My computer's Am I frozen? Because my computer looks frozen. It could be a typo. Director Borth, >> you are not frozen. >> All right. Well, my back screen is. Hold on one second. >> Yeah, there's there's two different numbers. I would think that the bill payment and financial impact should be the same thing. Yeah, give me one moment. I apologize. >> Yeah, you're good. Uh, can we please make a uh a motion to amend that resolution to read $578,151 for financial impact? That is a typo. >> I'll second that. on the question. >> Roll call. >> Mr. Borthwick. >> Yes. >>
067Mr. Casey. >> Yes. >> Mrs. Chzik. >> Yes. >> Miss Fox. >> Yes. >> Mr. McCandrew. >> Yes. >> Miss Merkel. >> Yes. >> Mr. Zleki. >> Yes. >> Mr. Triano. >> Yes. >> Mr. Holmes. >> Yes. >> Nine. Affirmative. >> Now, do we have to read the whole thing again and vote there, solicitor? Do we need to read that or accept it as the correction made? And the motion passes. >> You'll have to read it out loud. You have to read it again with the correct figures that you've accepted to amend. >> Um, >> so we'll have a list of bill payments. It'll be $578,1551. The financial impact will be $578,151. Respectfully submitted. >> Second >> on the question. Roll call. >> Mr. Casey, >> yes. >> Mrs. Chzik, >> yes. >> Miss Fox,
068>> yes. >> Mr. McCandrew, >> yes. >> Miss Merkel, >> yes. >> Mr. Zucky, >> yes. >> Mr. Trio, >> yes. >> Mr. Borthwick, >> yes. >> Uh, Mr. Holmes, >> yes. >> Nine. Affirmative. Um, so an exception bill list, uh, the bill payments for November 7th, 2025 are $2,726,38382. November 10th, 2025, $210,688.36 for a total of 2,937,000 7, excuse me, 202,937,72.18. Um the financial impact uh bill payments $2,726,38382 payrolls is 3.3,347,899.14 um respectfully submitted. >> Second. >> Any question? >> Roll call. >> Mrs. Chzik, >> yes. >> Miss Fox, >> yes. >> Mr. McCandrew, >> yes. Miss Merkel, >> yes. >> Mr. Zucky, >> yes. >> Mr. Triano, >> yes. >> Mr. Borthwick, >> yes. >> Mr. Casey, >> yes. >> Mr. Holmes, >> yes. >> Nine. Affirmative. >> Education 103. >> Yes. Um,
069sorry, it's right here. We will have a motion to approve West Scranton High School continuity of operation plan if needed. >> Second. on a question. >> Roll call. >> Ms. Fox. >> Yes. >> Mr. McCandrew? >> Yes. >> Miss Merkel? >> Yes. >> Mr. Zleie? >> Yes. >> Mr. Trio? >> Yes. >> Mr. Borthwick? >> Yes. >> Mr. Casey? >> Yes. >> Mrs. Chzik? >> Yes. >> Mr. Holmes? >> Yes. >> Nine. Affirmative. >> 10 for personnel. We will have a motion to approve the personnel report as attached. All hires are contingent upon all background checks and clearances. >> Second one on the question. >> Roll call. >> Mr. McCandrew. >> Yes. >> Miss Merkel. >> Yes. >> Mr. Leki. >> Yes. >> Mr. Triano. >> Mr. Borthwick. >> Yes. >> Mr. Casey. >> Yes.
070>> Mrs. Chzik. >> Yes. Miss Fox, >> yes. >> Mr. Holmes, >> yes. >> Nine. Affirmative. >> 105. Budget and finance. >> Packet's a little out of order. Let me find this. I'm so sorry. Okay. So, um, approve. So, I have a motion to approve the proposed version of the final budget as attached for the year 2026. The public school code of 1949 as amended requires the formation and approval of the proposed version of the final budget. The obligation of the approval is placed upon the school board based on upon information and exchange between the administration and the school board and the board of school directors of the city of Scranton is hereby in position to carry out its legal obligation. Copies of the proposed version of the final budget as adopted will be made
071available for inspection on the district website and the Albbright Memorial Library. The board secretary shall advertise this action hereby taken in accordance with the law and be subjected to approval of all documentation by the district solicitor. Respectfully submitted. second. >> Hold on. No question. >> Oh, I just wanted to say that. Sorry, Ty. Um, I just wanted to say thank you to Mr. Lavy for all his hard work with us and that I think it's great that for another year in a row, um, we don't have to look at a tax increase for the community. So, um, I'm definitely in favor of this. >> Yeah. And I want to follow up on on what Danielle said. you know, thanks to everybody um who who works so hard in central administration. And I also want to
072thank um our our congressional delegation. I know that we've done this multiple times talking about particularly how Senator Flynn spends a lot of time fighting for us down in Harrisburg. Same with um Representative Kazaroski and Representative Donahghue. The fact that we just today were able to see the budget pass averts a disaster. And and I know Mr. Laffy, you've been spending a lot of time about how how would we have survived if this budget didn't pass and as such um I I want to let the you know the the people of Scranton know we we've worked really hard on our end, the administration's worked hard on their end and um this is a disaster averted because you know as as you saw at the last meeting we went from I think like a $57 million
073in the general fund balance to potentially $1 million as of December 31st. So, the fact that the state government came through and that Scranton was able to get this kind of money um really helps us because the burden shouldn't be falling on Scranton taxpayers the way that it has and and this this [clears throat] helps us immensely. So, I I want to thank everybody involved. >> I'd like to say that u uh this is the third budget that Tom, myself, Marie participated in. And correct me if I'm wrong, but I believe that uh since we got on the board, we've had three years of no tax increase. And uh I'd like to also thank the remaining members of the board because they're just as much as part of this. But with the new board that
074came on two years ago, I feel that we've been fiscally responsible. We've also restored educational programs that were cut and um uh I'd like to thank the administration. It's a new administration that this board put in place and I feel that uh Dr. Kading with her leadership and uh Mrs. or Mr. Laffy and Mr. O'Donnell, they're steering the ship in the right direction. And I'm sure that with their help and their guidance uh this uh uh the district will remain um positive and will intend to grow. And I also want to thank especially President Holmes who over the last two years presided over this district. He's leaving the board. I want to thank him for his leadership, his guidance, and um as president, uh Mr. Holmes, you're you're more than just a president. You still
075steered the ship in the [snorts] right direction, and I want to thank you for that. And I also want to personally thank you for your military service. You >> Thank you. team effort. Thank you everyone. >> Um Pat, for the budget real quick, is there a I know you said you're still working on the budget tax rebate 65 and older other districts like Mid Valley do. I know we talked a little bit today about it. Is that something we could look into? Um whether it's a $100, $200 if if they you know. >> Uh certainly. Yeah. So, we've we've looked at this before and and for those watching who may be interested in this program, there is a link on our business office page to any tax to all tax assistance uh programs throughout the
076state locally as as well. But as Director Mccander said, um you know, there is a program run by the Department of Revenue with the state that for uh seniors over the age of 65 or people with disabilities 18 and older who make less than $46,000, there could be property tax or rent rebate programs. I don't know a whole heck of a lot about the program itself, but I was able to find a report that was issued in 2025 related to the 2023 dispersements made. And it appears in the city of Scranton, there were approximately 4,600 um total participants in this program. Um 3,200 being u uh of the elderly over 65 over the age of 65 or and 1,400 almost 1500 um who were dis disabled. So, you know, you're looking at around 3,200 for
077the elderly, 1,400 for the disabled. Director Mccandrew, a an additional rebate of $100 for the elderly would equate to approximately $320,000 based off of the data that we have available to to us now. Is that something maybe we could look into with the final budget to see if we could swing something similar or [clears throat] >> we will certainly Yeah, we will look into it and we'll I'll also speak with Mid Valley see how their experience has has been with it also. >> Perfect. Thank you so much. >> Y thank you. >> Roll call. >> U Miss Merkel. >> Yes. >> Mr. Leki? >> Yes. >> Mr. Trio? >> Yes. >> Mr. Borthwick? Yes, >> Mr. Casey. >> Yes, >> Mrs. Chzik. >> Yes, >> Miss Fox. >> Yes, >> Mr. McCander. >> Yes, >>
078Mr. Holmes. >> Yes, >> nine. Affirmative. >> Operations 106. >> Oh, sorry. That's me. Um, I didn't have that. What is it? 106 you said, >> correct? Um, 106 is the RFP. So, I'll read it though. Motion to reject all proposals received in response the district RFP for copy or print services. >> I'll second it >> on the question. >> Roll call. >> Mr. Zki? >> Yes. >> Mr. Trio? >> Yes. >> Mr. Borthwick? >> Yes. >> Mr. Casey? >> Yes. Mrs. Chzik, >> yes. >> Miss Fox, >> no. >> Mr. McCandrew, >> yes. >> Miss Merkel, >> yes. >> Mr. Holmes, >> yes. >> Affirmative, one negative. Motion passes. >> 127 community relations. >> A motion to accept a donation from Scranton Health Club Crunch Fitness to Scranton High School. >> Second. >> Final
079question. Roll call. >> Mr. Trio. >> Yes. >> Mr. Borthwick. >> Yes. >> Mr. Casey. >> Yes. >> Mrs. Chzik. >> Yes. >> Miss Fox. >> Yes. >> Mr. McCandrew. >> Yes. >> Miss. Merkel. >> Yes. >> Mr. Zky. >> Yes. >> Mr. Holmes. >> Yes. >> Nine. Affirmative. >> 108. >> Okay. So, uh, we have a motion to approve a tax revenue anticipation note, uh, in an amount not to exceed, uh, $32,800,000 with Fidelity Bank with an interest rate of 3.5%. The approval is based on the proposal submitted by Fidelity Bank and deposit for the Scranton School District 2026 TR. The TR will be managed on as on an as needed draw down basis. A summary of all proposals was previously provided to the board of education. The board authorized the district administration and
080solicitor to prepare and finalize all necessary paperwork related to the 2026 TR transaction. Respectfully submitted >> on the question. >> So, um, Mr. Laffy, because we just got this, you know, breaking news today about the budget, can you explain, um, what our obligations would be related to this if potentially we didn't need it? >> Correct. Yeah, that's a great question, Director Borthwick. Again, when we were assuming this need, we were thinking we weren't going to possibly see um a budget in till sometime in early 2026. All right. Um uh so that's when we began the process of soliciting proposals and I believe we received um four total. Uh but anyway, uh the when we originally wrote this motion, we weren't aware that the state had passed the budget and that hopefully funds will begin to
081flow pretty pretty soon. Okay, that being said, even if dollars are released ASAP, there may be deductions that come out of our subsidy for things that the state has paid on our behalf while this budget impass has gone uh through such as our debt service payments on principal and interest as well as some other deductions like our for our cyber charter schools. So, I don't know what the impact of that is going to be yet. I'm hoping maybe attorney Ferald maybe can help me here, but is there a way that we can amend this motion that allows the administration, the solicitor to enact the trant if we deem it necessary in the next few weeks based off of, you know, the timeline in which state budget dollars begin to flow. The one thing I don't
082want to do, there is an origination fee that the bank would charge us as well as some uh legal fees. I don't want to incur those fees and then not need the borrowing, but I want to be able to depending on how quickly the state subsidy begins to flow, I want to be able to authorize this if necessary because that makes >> Yeah, I agree with you, Pat 100% because we don't know how the comproller is going to issue this or when they're going to issue this and because January 2nd is a payroll, >> we want to make sure that if needed, we have everything in place. >> Yes. So you can authorize this motion to direct us to do that as needed if needed. >> So as we go forward uh on this if
083it you know becomes apparent that we are not going to need it uh we can save the uh you know the origination fees and legal fees. Uh but you know we just have to be cautious of any you know time frames as far as the you know receiving the funding is concerned. Yeah. From the actual or no Oh, sorry, Ty. I talked over you. I apologize. >> Do we need to amend the motion? If so, what is the exact verbiage that needs to be said? So, we can go ahead and vote on that right now. >> I'll make the motion. >> He's got to tell us here, Bob. He's got the solicitor. What's the exact verbiage you're saying to say? So, it's a motion to approve the uh tax revenue anticipation note um contingent on
084it remaining necessary after dispersement by the comproller. >> Um do you have that? >> Yep. Jotting it down now. Okay. So um I make a a motion to amend uh the motion to state that the tram will be contingent on it remaining necessary uh dependent upon the dispersement from the controller. >> Second >> on the question. >> So I have a question. So I just want to know how we chose Fidelity Bank. I I know that they have the lowest interest rate. Um, but they do have the highest origination fee compared to some of the other options and the interest rate. They differ slightly, but they don't differ by a whole lot. So, I was just wondering how we chose Fidelity. >> Uh, that's a great question, director Jose. Um, again, we we tried to
085do a cost out of a couple different scenarios. Would we need to draw down on these funds um and pay back within three months or pay back within four months? Ultimately, in both scenarios, even with the fees not to exceed, they they appear to be the lower uh total estimated cost. >> Thank you. >> Mhm. >> Roll call. >> Mr. Borthwick. >> Yes. >> Mr. Casey. >> Yes. >> I'm sorry. Miss Ches Mrs. Chzik. >> Yes. Miss Fox, >> yes. >> Mr. McCandrew, >> yes. >> Miss Merkel, >> yes. >> Mr. Zki, >> yes. >> Mr. Triano, >> yes. >> Mr. Holmes, >> yes. >> Nine. Affirmative. >> Now, Tom, you have to reread it again so we can vote. Thank you. >> Okay. So, I have a motion to approve a tax revenue anticipation
086note, a TR and an amount not to exceed 32,800,000 with Fidelity Bank with an interest rate of 3.5%. The approval is based on the proposal submitted by Fidelity Bank and deposit for the Scranton School District 2026 TR. The TR will be managed uh on an as needed draw down basis. A summary of all proposals was previously provided to the board of education. The board authorized the district administration and solicitor to prepare and finalize all necessary paperwork related to the 2026 TR. This TR is contingent on it remaining necessary uh upon dispersement by the controller. Respectfully sub submitted. >> Second. >> Roll call. >> Mr. Casey. >> Yes. >> Mrs. Chzik. >> Yes. >> Miss Fox. >> Yes. >> Mr. McCandrew. >> Yes. >> Miss Merkel. >> Yes. >> Mr. Stresski. >> Yes. >> Mr. Triiano?
087>> Yes. >> Mr. Borthwick? >> Yes. >> Mr. Holmes? >> Yes. >> Nine. Affirmative. Pat, since there's not a 109 motion, could you please explain that and make the motion to approve the flex spending account, please, so that we could go ahead and vote on that? >> Oh, there's not a motion for that. >> No, >> there's nothing. >> We didn't get a motion. >> Okay. So, Okay. I apologize. My um So, I guess you know, the board brought forward um the motion to the to the committee. I think the motion could be as simple as um the board authorizes district administration and solicitor to uh engage a firm to originate a flexible spending account for the district for for the Scranton School District. The question would be which firm would the um uh board
088so choose? Again, we briefly reviewed the brief summary. Again, it is not comprehensive, but again, we have a a local based Scranton firm and a nationwide more Pennsylvania firm with dedicated account manager to the area. One does charge an a fee structure. The other one would be at no cost, but with the ability for them to solicit employees for voluntary insurance benefits. Both have experienced servicing districts within our area. Um you know the hey mandle the scrant base has all forge done more north pocal lakeland riverside and CTC. Um as noted American fidelity is I18 I 19 forest city lacquan trail and some other districts throughout the area suana Jersey shore northern and southern tyogga. They both offer very similar services in terms of debit card transactions for eligible expenses um online portals uh apps
089for for for your phone. So that that is a summary. I I think it can read as simple as the board authorizes the district and the solicitor to engage blank firm to originate a flexible spending account for the strength school district. >> Beth, yes, >> I'd be in favor of going with the local firm which I believe is Macander. And if nobody has any objection, could we put the name of the Macander firm in the resolution and uh pass it tonight? because I know that this board's philosophy has turned more to supporting our local uh people who live and pay taxes in the city of Scrantic Center. I have a question. How does that work? What is your recommendation? >> My recommendation uh would be that we take the language of the uh motion that
090Mr. Laffy had laid out uh and include uh McAndrew. I believe that Pat correct me if I'm wrong. Both of them have submitted for you know what their plans are. If there's no objection, we can vote to have them placed in as the uh as essentially the administrator of the flex spending account. >> Yeah, the committee already made a recommendation. So it's it's on the floor. >> Well, do we have I understand that, but I also do we have a cost amount. The dollar every time we vote and there's a cost amount, we read that off as well. Is there a dollar amount attached to this? >> So we are estimating that it's $17,100 based off of,250 eligible employees. >> $17,100 budget and finance. Did you have that completely where you could just read that
091part back so we can go ahead and motion? >> Is it budget and finance or is it vendor relations? >> I believe it was vendor relations. >> Vendor relations. [clears throat] >> I have I have something right here. I >> motion to approve Dehei Mccandrew as the administrator to the district's flexible spending account. I so move >> second >> on the question. >> Roll call. >> Mr. Casey? >> Yes. >> Mrs. Chzik? >> Yes. >> Miss Fox? >> Um, I'll be abstaining just due to lack of time to review the recommendation. Thank you, Mr. McCandrew. >> Yes, >> Miss Merkel. >> Yes, >> Mr. Zki. >> Yes. >> Mr. Triano. >> Mr. Borthwick. >> Yes. >> Mr. Holmes. >> Yes. >> Eight affirmative, one abstension. Motion passes. >> Motion to adjourn meeting. >> Oh, Ty,
092I do have one thing. When I was congratulating you on your service, I forgot to recognize the victory of Mr. McCandrew to who's going to be leaving this board and going on to bigger and better things down at helping the city of Scranton as a what do you call yourself a council elect. >> Um I wish you well. >> Thank you. and I thank you for your service uh on behalf of this transport district. Thank you. Appreciate it. >> Thank you and congrats. >> Thanks. >> Congratulations. Meeting adjourned everyone. Take care.