001So I would just say that a discussion meeting is a combined workshop and voting meeting where the business is discussed by the board and then acted on by the board at the same legislative meeting. >> Okay. The information the information we received is that if there is discussion going on during this meeting, all one board member has to say is I want to go back to the regular business and all discussion stops. All discussion stops. >> We in the past, Mr. Lucas, we have had discussion meetings. They were called planning meetings. And the sole purpose of that meeting was to discuss and plan and come up with the agenda. Then the following two weeks, we had a voting meeting that lasted maybe 20 minutes because there was no more discussion because we had had a
002discussion meeting. But I'm very confused about how this meeting is going to be run. Are we going to be allowed to discuss at length issues of concern because there's no other venue. We don't have any other meetings. >> Sure, there is. So, so the the discussion will be oriented around the items that are on the agenda under your board policy 006. Anyone who wants to add an item for discussion or for action by the board or consideration can submit that to the superintendent and board president. >> When do we discuss issues of concern regarding the school district? Well, it's not an open-ended. I don't know of any districts that have open-ended essentially monologue times where people can simply bring up whatever they think is important. But if you wanted to add it to the agenda,
003there's a process for that. It's in your board policy. >> So, when we had discussion meetings, they were discussions about issues related to the South Morland school district. It didn't have to be an agenda item in unless it became an agenda item. Okay. Now, secondly, I get my agenda approximately 2 days before the meeting. How am I supposed to >> I I mean, I think that if there's a an an item that you want to antic that you would anticipate wanting to discuss, you would submit it to the superintendent and the board president. when I get the agenda two days before the meeting. >> Yeah, but I I would guess that you know about the concern before that two-day period has has arrived. >> These are these are items of concern that should be discussed
004and voted on at another meeting. I I don't understand now this we never had this system before until I think it was two years ago. I think Michelle Williams instituted it. Okay. But there's another question that comes to my mind. So the board president said, "I need a motion. I have I need a second." And then he says, "Discussion." >> Discussion. >> Yes. >> All right. That's on that item. That's on that agenda item only. >> But agenda agenda items are not pure. There are other concerns. And one of the the requirements of the almighty PSBA is transparency so that the public would understand how decisions are made by a school board. How can they understand if we can't discuss openly? Where's the transparency? I'm I'm very confused. This document says discussion voting meeting and
005I for one board member do not understand the definition of of a discussion voting meeting. I know what a discussion meeting is. I know what a voting meeting is but I don't understand what is a discussion voting meeting. >> Reese's peanut butter cup. It's peanut butter and chocolate. >> It's no more complex than that. Dr. Fe, >> you go up soon. >> It was I I remember my time as an IU employee covering these board meetings in this district. There were discussion voting meetings that date all the way back to 2019. >> All the time. >> Why in the past we always had a discussion meeting. We discussed things and put we had agenda. Then the next week we voted on them. >> I feel like we've had this. >> Why did they get away
006from that? That's we're not transparent. Don't know what's going on. >> Well, that's their choice. Everything is published. >> Whose choice? >> The people who are uninformed. That's their choice. >> How is it their choice? How's your your choice if you're discussing two minutes before you vote on it? >> We've had you need to have a >> This isn't this isn't an item on the I don't even understand you. >> I thought she the discussion. >> I'm allowed to speak just as much as you are here. >> I call for the orders of the day. All right. All right. Spoken to stop. We're going to get on with the agenda. >> No, we want to talk about this. >> Discussion and voting me. >> Yeah, we're going to get on with the agenda. >> Discuss
007the change. Well, people want to know what's going on in these meetings. >> Hey, thank you. >> No transparency. >> Thank you. >> I'm not done yet. >> You are done. >> So much for your discussion, Sam. >> Excuse me. The following executive sessions were held August 19th, 2025 at 6 p.m. September 16th, 2025 at 6 p.m. U for personnel and legal matters. Citizens comments, agenda items only. Mr. Sammire. >> Thank you. Bud Sammire, uh, South Broadway Street, Scottdale. Um, I located on the agenda, uh, under building ground security, the juvenile probation section. Um, you want to authorize juvenile probation department or probation officers to carry firearms in and on school property effective 101 this year. There have been schools where like Uvalde they had five armed school officers on the premises. They stepped out.
008They were joined by 25 local PD, 91 state troopers, 149 border patrol, 376 armed officers in total. and they failed to respond for over an hour while the shootings were going on inside. They had five on premises at the time. More guns does not add to security. More guns adds to the danger. I'm against this this uh recommended action. Thank you for your time. >> Thank you. Do you want me to speak to that? All right. We ready? Yep. Okay. Next section is reports, superintendent information. Uh, I don't have any information for this meeting, >> but I have questions of the superintendent's report that he sends out to the board. Now, is that an agenda item or isn't >> Yeah, under the appropriate agenda item, you can >> Well, this superintendent's information, and that's what
009I'm talking about. >> I I have no public information for tonight. >> Well, no, these are the reports that you send us the about the district. >> That's information between you and me. It's not for p for the public. >> If I wanted a public report for tonight, I would have put it in and had one. >> For example, you sent out information about school attendance and how important that is and how the community should be involved. And that's not for public knowledge. >> That was an email I sent out to the public. That was not for a school board meeting. >> Well, at what point can I talk about information that comes from the superintendent as enlisted superintendent's information? >> When it pertains to an agenda item, >> the agenda item is superintendent >>
010or if you ask to have an item placed on the agenda. I mean, >> it's on the agenda. It says superintendent's information. >> Superintendent said he doesn't have any information for tonight. >> But I I need information from the superintendent. Well, then you can go through the channels that everyone goes through and make a request to the superintendent. >> So, as a school board member, I cannot ask a question of the super member. You can't hijack a meeting and monologue. >> I'm not hijacking anything. I want an answer. >> I call for the orders of the day. >> There you go. I'm keeping score number one. >> Go right ahead. >> I'm keeping your score. >> Business manager, transportation, director, get me, Mr. Fry. >> I'm sorry. >> This is exactly what I predicted. >>
011I have no reports tonight, Mr. President. >> Thank you. Business Manager, Transportation Director Information. >> I will delay my comments into the finance till we get to the finance section. >> Thank you. CWCTC report. I have nothing to report tonight. >> I had a question for the B business manager that had nothing to do with finance. >> I'm not allowed to ask it. >> We're going to go through this every time. I have a question for the business manager that is not under financial information. >> Okay. Is it does it fall under any other agenda items? >> I mean I I think that we have in the past included >> business management information >> to make those questions known to the business manager prior to the public meeting so that it's not a gotcha situation
012and that she can have an answer. >> I didn't know it was on the agenda or wasn't. >> There's no way for me to find out. >> You get the agenda ahead of time. Okay. >> I got it on Monday today. I got it yesterday. Yes. >> Okay. Wu report. >> Yes, we have we had two meetings. We had two meetings in September. We had our regular meeting and um we had a special meeting. There are some concerns at the IU that are specifically related to a deficiency in parking. The the concern is the Clear View School. The um buildings were were inherited by the present administration and they have a lease on them until 2035. Prior to th this year, this summer, the employees could park and walk across a piece of land that
013did not belong to the IU and they would be a Clear View school. The company that owned that building sold it and they notified the IU that no employees were allowed to walk across to get from the administration building to Clear View. Therefore, they needed 53 more parking places. They uh cont the building is owned by a a corporation in California and the argument now is who is responsible to do something to provide 53 more parking spaces. There are a lot of attorneys involved. Um the um statute of limitations is almost over in terms of certain responsibilities. Um, and as a result, the IU had to go to the Masonic building, which is located nearby. They are paying $1,200 a month rent for people to park their cars. Um, and then they have to get
014in a shuttle bus. They have to take a shuttle bus from this parking lot out on the road and into Clare View School. This is a very, very they have to do it twice a day. It's a very, very expensive proposition. And apparently there is there seems to be no resolution at hand. So we have we've had special meetings. Um uh I don't know where it's going to go now. Uh there right now we're caught up in a lot of um legal concerns and um the employees are affected, the students are affected affected. Administration is affected. But remember this was an inherited situation. There was no there's no way for us to we don't own anything. We don't own that. The company in California owns it and I don't know how this is going to
015work out but um we will be meeting again on Tuesday week from today and we will work on that. But that's one of the main uh concerns that we have now. Uh personnel are all in place. The early um intervention program is functioning. They're serving something like 2,000 kids. uh things are the programming itself is all in order. They just have a real problem now with how they're going to get these employees there because they have always parked at the IU. Parking is not in their pro in their contract. I ask about that, but it's past practice that they would they would >> I ask you a question. >> Mhm. >> How does the IU get their funding? >> What >> who funds the IU? >> They do not raise taxes. They get money from
016the federal government. They get money from various programs. Uh a lot of it is they get state money and they get um >> money from school districts, right? >> some I think it's it's a uh they've been they've been getting it for years and years and years and years. >> So, >> and it has been cut down from 6 and 8% down to 1 and 2%. >> How much does this affect what we're going to have to pay them? Okay, I can give you some examples. Um, it depends on how many students you have enrolled at Clear View. You only pay for for according to how many students you have. For example, Franklin Regional only sends one child. Therefore, their their entire annual payment for that program, that transportation thing, is $600 a year. Another
017school district has 19 children coming to that school. So, their responsibility is much greater than that. South Morland. We're kind of on the low end. We don't have that many kids. >> Actually, we're third highest. >> What? >> Third highest. >> We're third highest. >> Third highest. Yes. >> Well, that's not the information I have. >> They gave us a chart. >> Yeah. So, do you know what actual was this going to actually cost us? >> $12,000. >> So, you absolutely voted no for this, right? >> You you voted no for this. We They showed us charts on the screen. >> Yeah. How did you vote? You have a vote, right? >> They haven't voted on it. >> They haven't voted on the parking. >> No, it's still in in the upper. >> They haven't
018voted. They're running shuttle buses and they haven't voted. >> They voted on that. >> Oh, okay. And how did you vote on that? >> Yes, because I asked the I asked the executive director. I said, 'If you had not rented the parking places and established the uh van, what would have happened? He said he would have had to cancel school. >> And there is a policy at the IU that the executive director when it is an unbudgeted item is responsible for paying whatever is necessary so that there is no interruption in the educational program. So, you voted yes to the $12,000 increase this. >> Absolutely. I would I would not want our children not to have be able to go to school. >> All right. Just clarifying. Thank you. >> Is that all you have
019in your report? Okay. Thanks. >> I wouldn't say anymore if I had to. All right. Committee reports, uh, buildings and grounds. The next meeting is October 13th. Um, finance, district operations, transportations, next meeting is to be determined. Personnel policy and academics, uh, next meeting is October 13th. Non-academic athletics and extracurricular, next meeting to be determined. Um, school safety and security next meeting September 22nd. So, nothing to report for committees, >> student reports. >> If there's a question about one of these items, we can't ask it because it's not on the agenda. Is that right? >> There in committees. >> I have a question about buildings and grounds issues. I mean >> if there's a buildings and grounds committee to report on >> there is >> is there >> I mean there's no report but go
020ahead ask away >> okay was there a meeting held to discuss staffing needs for buildings and grounds >> not that I'm aware kind of an ongoing issue people resign. >> Well, this is my concern. Up until not too long ago, the South Morland School District maintenance people were responsible for 100% of the maintenance. However, it had to be done for the whole school. >> Yeah. And you saw where that got us, >> right? 100%. >> Yeah. >> I don't think that's true because we still had to hire people to come in and fix it. >> And that's that's right. But that was still our responsib that was still our responsibility to get it done. >> And it still is. >> It's our responsibility to get it done. >> It still is. >> So now we
021bring in constellation and we spend $13.5 million getting all this new stuff that no longer has to be maintained by the South Morland school. >> That that's absolutely incorrect. That is and that's why we're in this predicament is that thought process right there. If you bought a $100,000 car to change the oil and the tire, >> they'll need maintained even if they're brand new. And that thought process is very telling as to why we're in the predicament. >> So there is no warranty on anything being done by a constellation. >> So uh even when something breaks down, you need somebody present to figure out what's going on. >> And you don't call constellation. >> Well, there's differences between warrant. >> I'm not talking to you. I'm talking >> I don't think that you should be
022able to speak to me like that. If you have a member of this board and I'm just going to keep >> you put new lights on the stage. >> One person should have a floor at a time, please. >> But if she's having >> if you have lights on the stage and all of a sudden they don't work. It's our that constellation just installed. I saw that list. They did the lighting. So that means that they are not responsible to come back and maintain that even though it's brand new. Is that correct? >> So we have to hire people. >> I don't understand what you're saying. No, >> we do not have the demands for maintenance that we had before. >> So when the >> we cannot keep hiring people when there is less work
023to do. >> Okay, is that all you got? Thank you. >> Okay, now student reports. >> Um to start off, we want to congratulate the Scotty Scholar of September who is Megan Mihal. We also want to congratulate the 202526 homecoming court. Caitlyn Campbell, Kieran Fedorco, Madison Luchia, Megan Mihal, Alexa Pandolo, Riley Pletcher, Allison Stette, Brady Buts, Stanley Chapman, Noah Feler, Austin Hudek, Chad Long, Ty War, and Damian Wright. And on September 5th, South Morland held its first pep rally of the school year, recognizing fall sports, the challenge program winners, and celebrating Joey Ben's state championship win with the gun high varsity male division, and also recognizing Joey as the top shooter in Pennsylvania. The challenge program winners included Shirley Albbright, Steven Sakowski, Jackson Raer, Walter Higgins, Zoe Welling, Olivia Bell, Megan Mihal, Xavier Courty, Caitlyn
024Raymond, and Elizabeth Ray. The categories included attendance, community service, community service, academic improvement, and academy excellence, and also STEM. The Scotty football team is undefeated with a record of four to zero with an upcoming game against the Ringold Rams with the theme being USA at home this Friday. It will also be youth recognition night to recognize our football players and cheerleaders. The sophomore marching band kicked off its competitive season on Saturday, September 6th at Kisky High School. The event was a judged non-scored festival where the band received valuable feedback from judges traveling in from North Carolina and Tennessee. This past weekend, the band took the field at Pimba Champ competition hosted by Baldwin High School. South Morland earned first place in Class DoubleA and swept the caption awards, taking home honors for outstanding music performance,
025outstanding visual performance, and outstanding general effects. Next up, the band will march in the Scottdale Fall Festival parade this Saturday before heading to York High School on September 27th for their next competition. All homecoming court members will also be featured in the parade. Lastly, South Morland Student Council is in the process of planning a fall powderpuff game. This will be in the support of Susan G. Combmes Breast Cancer Foundation. >> That's all. >> Thank you. Thank you ladies. As always, if you want to go home and get your homework done, now is your chance. >> I think we'll stay. >> She says, "I think we'll stay." Bless you. >> Okay. Our next section is school board. >> The board has asked to approve the following meeting minutes. August 19th, 2025 discussion slashvoting meeting. >> So
026do >> second >> discussion. >> Yes, I have a question. Um when I raised the issue about the cell phones, um I my comments were put in, but there were no there was no record, Lori, of what Mrs. Colab Bankank said in response to my question, um like when I asked Mr. Hi-Cheu a question, he responded his his answer was in there, but I I would like to know u if there is a concern about cell phones in the school. What was her what was her response? And I couldn't find that in the meeting in the minutes. >> It's on the YouTube video. >> All right. All those in favor? >> I opposed. >> No. >> Student representatives. The board has asked to appoint Audrey Miller and Zoe, sorry, Audrey Miller, Zoe Zoe Welling, and
027Alexa Pandulo, alternate, as student representatives to the board of school directors for the 2526 school year. >> So moved. Second. >> Discussion. >> It's going to be real awkward if we vote no. >> Just kidding, girls. All those in favor? >> I opposed. >> Next section is policies. >> No items for this month. >> The next section is personnel. >> The board has asked to approve the personnel log for September 16th, 2025 as attached. All salaries are included and all clearances are current and on file with the administration. >> So do second. >> Discussion. All those in favor? I >> I opposed. >> Okay. Next section is education. >> Uh band May trip. The board has asked to approve the request for a marching band trip to Sandusky, Cleveland, Ohio with various experiences and locations
028from Friday, May 8th, 2026 to Saturday, May 9th, 2026 at no cost to the district as attached. >> So do second. >> Discussion. All those in favor >> I opposed. >> I have a student in marching band just in case that was a conflict. >> That is not a >> Okay. Just wanted to be very very transparent there. >> You just voted to spend a lot of money. >> Student service agreements. The board has asked to approve the following annual student service agreements. Uh ask speech therapy, Inc. >> So do second. discussion >> is that for speech therapy in our district or in somewhere else? >> I don't have that answer right now. Dr. F. >> I know that for me to put it on the agenda, I had to find out that it was
029for a student that is in a placement that needs the service. >> It's in a placement. That's fine. Okay. That's what I wanted to know. >> All those in favor? >> I opposed. >> Next section is finance >> monthly financial reports. The board is asked to approve the following monthly financial reports. All attached. Number one, treasurer's report. Number two, general fund board summary report. Number three, fund accounting capital fund capital Giza and food service check summary listing. So do second discussion. >> Does this include the report from the board from the business manager? >> It's going to when we get down further. >> All those in favor? >> I opposed. >> Delegates for West Morland County Tax Collection Committee. The board will be asked to appoint Diane Fig, East Huntington tax collector as delegate and
030Pam Mondock, business manager, transportation director, as an alternate delegate for the West Morland County Tax Collection Committee. >> So do second. >> Discussion. All those in favor? >> I opposed. >> Joint Purchasing Consortium representatives. The board has asked to approve Miss Pamela Mondock, business manager, as authorized representative to the WIU joint purchasing consortium and Miss Sher Barnhart as alternate representative. >> Do second. >> Discussion. All those in favor? I >> I >> opposed. Wu Joint Purchasing Consortium 2627. The board has asked to approve advertising jointly as a member of the West Morland intermediate unit intermediate unit joint purchasing consortium for the purchase of supplies in the following categories. Multi-purpose paper and unled gasoline and diesel fuel. >> So moved. >> Second. >> Discussion. All those in favor? >> I opposed. >> Investing Giza funds. The
031board has asked to approve moving $4 million of our funds from the money market account to two certificate of deposits as follows. $2.75 million in a 3month CD at 4.15% and 1.25 million and a six-month CD at 4%. >> So moved. >> Second discussion. >> Um I would I would like to give my report now if I may. >> Yeah. I just um passed out a packet to all of the members regarding the CD um bond bond proceeds response. Um exhibit number one, why the hurry? From what I've been reading, the Federal Reserve all indicators state that the interest rates will be dropping probably this week. As you can see from my backup provided which I've numbered all all of the exhibits that the rates have begun decreasing and I felt the rates provided me
032by FNB wouldn't hold until the meeting. So that's why I wanted to that's why I had asked Dr. um Boon to contact you Dwayne to do a straw poll to get that taken care of. Exhibit number two addresses the question investing tax are investing tax-free bonds permissible. I contacted my bond team to get you written documentation that it was permissible with restrictions. Please refer to the email both from Alicia Henry from PNC and Zach Willard from PFM. The exhibit addresses both if it's allowable, which it is, and um Zach is going to give us assistance to calculate the average rate of return and the final reporting um requested. Exhibit number three, I also contacted Anthony Ditka who was our legal counsel for the bond. Since his report is quite lengthy, I took the liberty of
033high highlighting parts of the parts of his um response that basically said this the state with certain restrictions are well within our rights to invest these funds. Exhibit number four comes from our auditor, Mr. Mark Turnley was also asked to weigh on in this matter, which he did. Again, once again, due to time constraints of this meeting, I've highlighted the information stating we are well within our rates to invest these funds. And lastly, exhibit number five in the large spreadsheet that I've given you shows the um the draw spreadsheet from constellation. As you can see, we would plainly we would definitely meet the spending spend down requirements. So when we were looking at 6 months all that we had to for the spendown requirements was to spend 10%. We would have spent we will spend
03449%. At one year we have to spend 45%. We are on track to spend 75% of those funds. 15 months into the project it is supposed to be done and all the money's expensed. we would have spent 100% by 18 months. The um the rules basically state that we only have to have 75%. So with that, I felt very confident that we would be able to um get this, you know, get these funds out there, get the CDs lined up so that we could um earn an additional $40,000 for our for our district because obviously um there are things that the constellation project does not cover. There are things that we need. I know um for example, we've had additional expenditures on the rock wall that we had to take care of. We have um
035a little cart that the guys use. Um cart's not the right word, I'm sure, but um it's motorized. Um but but I know it's on its last leg. So there are many things that we need to find extra funds for. So that's what I was basically trying to accomplish with this. >> Great work, Pam. >> Well done. >> Great work. Thank you. >> Thank you. >> So Pam, what are our payments on the uh bond during the same period of time? >> Uh Dr. Fe, I'm not prepared to answer that question tonight. I don't know that off the top of my head, but I can certainly get that for you. >> We borrowed this money at 4.15%. Right. >> I have to look at that as well just to verify to make sure what it
036is. I don't want to misspeak. So, if you borrowed at 4.15 and you're going to invest and get 4.15, isn't that a wash? >> Am I missing something? >> Yes. If you do nothing with the money, you pay 4.15. >> You do nothing with the money, >> you you pay the the interest. So, we're getting that money back in essence. So, maybe it is a wash, but it's not a cost. So you again in a more adv advantageous position. >> So you are lowering our our f pay payments every year on the bond. >> What I'm trying to do I'm just investing this for three months one CD and six months the other. What I'm trying to do is earn back some of the money that we're having to pay out for this. Um if
037>> he said we don't have to pay on the bonds. >> That is not what I said. Dr. >> No, he said that. >> No, I never said that. >> What did you say? What did you say, Dwayne? >> We still have to pay the bonds whether the money is invested or not. >> Right? >> If the money is invested, we're earning some money back to help with those payments. If we do not if we do nothing and just keep it in a regular account, we're not earning any interest and it's costing us more essentially. Okay, I'm not I'm not obviously very smart here. If we owe 4.1% 4.15% payments and you invest and you get 4.115%. But I've only invested4 million of the dollars first of all because I had to keep you know
038with the arbitrage rules in you know in effect plus also the draw down schedule I had to make sure that we had enough money to make those payments in the checking account. And with that being said, like I said, we're if if I did nothing, it would have cost us essentially $40,000 more because I didn't earn that. If that makes sense to you. >> So when these two investments are made, we're going to make $40,000. >> Correct. >> $40,000. >> Yes, ma'am. >> On a 13.5 million bondish. 16 million bond. >> No. All that I'm investing, all that I've asked to invest is the $4 million which will not be needed will not be needed during that time period. That's all that I've asked to invest. >> What if it is needed during that time
039period? >> I can tell you that constellation is very easy to work with. Um I do not feel that there would be a problem. But if you certainly look at the spreadsheet that I gave you, it will show you what is what is needed during that time period. And I was sure to keep enough in the checking account to cover that. >> I know for a fact that there is I'm sorry. I know for a fact that there is some equipment that will not even be arriving until next summer. >> Right. And according to his draw schedule, uh, our last payment will be in July of 2026 and it'll be $1.4 million. >> But if you withdraw early from OCD, there's a penalty. >> Correct. But we will not need to do that. Like as
040as I've said a few times here this evening, I've made sure that we have enough money to cover the time period of the three months and to cover the time per period of the six months. We are fine. >> And you have guarantees that no payments will be required during that period of time. >> Right. And like I said, we're earning money. And a matter of fact, I talked to um my banker actually on the way over to the meeting tonight and she tells me that there is actually a you she says, "Pam, everybody that has this situation earns interest if they can." >> So you have $4 million. You have $4 million that we don't need right now. >> Correct. >> Okay. Okay. I'm going to ask this question again because I I still
041didn't get an answer. It was to be somewhere between 13.5 million and 19 million and the magic number 16.5. So if you subtract from the 16.5 $4 million that gives you 12. Why did we borrow this amount of money? >> The reason why we Okay, when we started out to borrow the funds, we had three loans. Two of them were at 1% interest rate or less. The other one was at a higher rate of interest. So when the bond council came here, they spoke and they said if it's advantageous for us to pay off loan number three and roll it into the >> this bond issue, they're certainly going to do it. And it was advantageous for us to do it. If memory serves me, it was around a savings of $175,000. So therefore, they
042did it. So you have to take the mil the the amount that was left subtract the amount that was left on that loan from the $16.4 million that we borrowed. And that gave us the 13350 which we needed for the constellation project. But we could have borrowed this money a year from now. >> No, we we we've already we've already paid constellation more than $4 million. If you look at the spreadsheet, if you refer to to exhibit number five, the spreadsheet, you will see see where it says 91-actual and it says $4,811 $811,227. That is the payment that they are requesting for September of 2025. You see September, they have 1 60,000 1 million.60,000 October 601,000 and so on. So, as I said, yes, we we needed the money right now because where would I
043get the $4 million to pay them now? We don't have that that type of money available in a capital fund. >> I think one of the things that happened was their original plan was to have the high school HVAC units in this August. Um but all the shipping and ordering for those devices uh came to a halt with some of the things that are going on um >> with tariffs. >> Yeah. Nationwide with tariffs and everything. So >> So I I apologize Pam. You might have explained it while trying to read all all the emails, but how are we meeting the rebate requirements? I understand the the schedule you've given. Yes. is the actual bond. But are if I understand reading this right, the rebate requirements would be the proceeds. So everything we make off
044the bond, >> right? So um right now, like I said, we're at 4.15 for 3 months and 4% for 6 months. the proceeds basically and what they suggest that you do and I'm going to be working with um Zach from PFM who's part of our bond team to make sure that um you know we're going to keep a close watch on it to make sure that you know we've got certain things that will remain within that rate plus we also have to meet the spendown schedules. So for example the spend requirements for 6 months is 10%. um for 12 months is 45%, for for 18 months it's 75%. We're going to well exceed that spend down schedule. So therefore we will be fine. >> So and I apologize I might be misunderstanding but the >>
045that's okay >> the schedule is based off the bond and what constellation is giving us per month right? >> Yes. But the rebate requirements are the proceeds of the bond which would be what we make in interest off the bond. Right. >> Correct. >> So are we adding then additional work in order to spend those proceeds because the bond money is already accounted for in the construction? >> Correct. >> But we're we're actually trying to earn interest so that we have additional funds at our disposal. Um what we will do is like I said it will be monitored closely so that we don't hit the arbitrage rate. So um you know I will be working with Zach from PFM for that. And um you know my thought is we're going to earn some money so
046that we have some funds available. I hope I hope that answers your question. I don't know if >> I mean mostly and I agree. I think it's a great thing to do and it makes sense. It's just if I'm reading all this correctly, we've got to have a plan in order to spend that 40,000 basically within the two years, which is in addition to what we're doing with the geese already. >> You are exactly correct. Yes, I I got you now. Got you. We're speaking. We're good. >> It's a lot going on in these. Do Do we have that kind of funds allocated? Are we getting, you know, do we need new trucks or that kind of stuff or >> Oh, we absolutely need new trucks. We still have um two 2010 vehicles um that
047we need to replace. >> Okay. So So we'll be able to spend that 100% of that 40,000 with >> Absolutely. Yeah. And like I said, that's that's what I'm Yeah. Without a doubt. >> Perfect. Thank you. >> Ma'am, on the agenda itself, you say we are permitted to earn interest >> to our arbitrage rate. What is our arbitrage rate? Our arbitrage rate is included in the packets that I provided. It is let me get there 3.7706%. >> Okay. Okay. And you say we're going to earn 4.15 and four, >> right? And that's why I have to, you know, that's why I'm going to be working with Zach from PFM to make sure that the report to make sure that um let me look and to make sure that it is indeed reported and we are
048not breaking any of the arbitrage rules. Like I said, we can earn money. It is very restrictive how we earn that money and I intend to definitely work with to me it's worth the extra work for me for us to earn an additional $40,000 for the district. >> It says we're allowed to earn up to our arbitrage rate and our arbitrage rate is 3.7. >> Correct. But >> that you say it's 415 and 40. >> Correct. But think about it. I'm only I'm only investing $4 million. The rest of it >> So the arbitrage rate is on the entire bond. >> It's on the entire amount. So if you're looking and that's not just individually, you're going to put all of that amount together. And um that that's how we're going to calc you have
049to calculate whenever you do the reporting, you have to calculate an average rate, not the actual rate. it is an average rate. So if you're calculating an average rate and you've only invested the $4 million at at a higher rate, then obviously you're going to be well within your arbitrage amount. >> So that changes when you break up the money. >> Correct. Yes. Like I said, you have to average it. You don't you don't just say okay for $400 I got at 2 point 2 2.750 I got 4.15 at 1.250 I got 4%. That's not how it works. You do an average of the amount earned >> and that's different than the interest rates that we pay on the bond. >> Yeah. And I like I said I will get you that information. Well, I
050looked up the I looked up what is an arbitrage and it's a calculation of the prices of a given stock body or like in different places at the same time. The person who does it is an arbitrageer. And from what I can figure out, that's a third-party person who makes a decision. That is the third party person that I'm going to be working with, Zach from PFM, who is going to make sure that we maintain what we need to maintain to keep us well within the rules and the RESS. >> So, where did we get our bonds from? Uh, PFM. >> Well, if you remember, >> um, there were three of them that came. There was, um, Alicia from PNC, there was Zach from PFM, and there was Mr. Ditka from Dinsmore. So all three
051of them came and spoke to us here >> and explained all that information. >> Which one was the arbiter? >> I don't there's probably not somebody that has a specific job title. It's the arbitrageer. >> Yeah, that's not his that's not his specific. He was the one that you had made mention. >> So he's going to change the rates then on this $4 million. >> He's not he's not going to change the rates. He's going to work with me to make sure that we do not go over the arbitrage rate. >> Okay. What if you do go over? What happens? >> Then we have to set aside the interest monies and pay a portion of the interest back. >> Are there taxes on any of this money? >> No. >> It's just an No, it's
052it's just the arbitrage rate. If like I said if we don't make it then we have to set aside the you know keep a part of money of the interest that we earn so that you know we would have to send it back but like I said I'm just trying to be a good steward of the of the funds available of the district and earn some interest for us. >> Great job. >> But it could be less than $40,000 if something goes wrong. >> Correct. And the money is tied up in the three and six month periods. >> Yes. >> And you're guaranteed that you won't withdraw it. >> I don't see any reason looking at the draw schedule that I would need to. >> Okay. >> All right. Thank you. On to the vote.
053All those in favor? >> I. >> What are we voting on? >> On the transfer. You're ratifying the transfer that >> Okay. I just want to be sure. It's been a long time since we said what what number what item we were on. I just want to be clear. Well, I had some questions with the business manager under her report. She said she was going to give a report. Are you going to do that now? >> I just gave the report. That was my report. >> Okay. My questions are about the what the information you put in the um agenda about the cyber school. >> Where is it in the agenda? >> It was in my agenda. I have it in my hand. >> It is under business manager. Yeah, >> I got it in
054my agenda. It came in my agenda. >> Okay. >> Anyhow, Pam, the concern. Can we just We have to time out for a second. Did we vote? >> Yeah. Did we hear a vote? >> Where are we? >> We're ready. >> Are we still discussing? I just need to know what what we're doing here. >> All right, let's redo the vote. I'm out. >> All right, let's redo the vote for H5 investing the Giza funds. The board has asked to approve moving $4 million of our funds from the money market account to two certificate of deposits as follows. $2.75 million in a 3month CD at 4.15% 1.25 million in a six-month CD at 4%. >> You already have a motion in a second. >> We have a motion and a second. We've discussed on to
055the vote. All those in favor? >> I have a question. You said you move >> Let's get the vote through. >> You move this money from a morning money market account. I thought it was from the bond issue. >> The when you get the bond issue, it doesn't sit over there at the issuance. It actually comes to you and you have to have a account in which to put it in. >> Okay. And that's called a money market account. That was my question. >> Okay. On to the vote. All those in favor? I >> opposed. >> Next. Next section. Building grounds and security. West Morland County Juvenile Probation. The board has asked to approve the West Morland County Juvenile Probation Department probation officers to carry firearms in and on school property effective 10125 to 9:3026.
056>> So do second >> discussion. >> These are officers that are on probation. They're not considered. >> They're probation officers, but for them to be on premises and to have probation officers in school is is a pretty common arrangement. For them to be on school premises with a firearm, they have to be approved. >> Same clearances like a trooper or >> Yes. I I mean, they're going to um they they would have those clearances as part of their job. So that the same qualifications of like a trooper or or township coper whatever. Right. >> Right. Or or more to the point like a school police officer. >> So what happens if we vote um that we do not authorize them then what do they do with their firearm? >> So I they'd have to make
057other arrangements to leave them off school premises or it might also limit your ability to have those probation officers in the schools. Could be the same thing if you call the state police and they come and they have sidearms. It's the same thing, >> right? >> All right. All those in favor? >> I opposed. >> Next section is athletics and activities. >> No items for this month. >> Okay. Can you tell me why I still can't ask the business manager these two questions under her report? >> It's in C3 is what you're looking for. >> Yeah, >> C3. >> Well, >> okay. All right. Um, go ahead. It's C3. Yeah. >> Yeah. Go ahead. >> It was in the >> Go ahead, Dr. F. >> Agenda. >> According to the information you gave us, Pam,
058we are $628,661 deficit in cyber school payments. Is that right? >> Let me pull up the >> That's what's on those charts that you gave us. >> Okay. So looking at the 23 or the the 2324 versus the 2425 cyber charter comparison, you can see the variance is 448,41126. >> I'm not seeing that now. And that is with and the reason why I gave this to you again because I had provided this information last month was because we had received some additional um reconciliation billings. Yeah. >> From the cyber charters and I wanted you all to see what it was. But >> so we're at we were at 1.9 we were at 1.5 last year. So that is an overage of 448,41126. So for 2425 on this, we're in 2526 now, but for 2425 you
059budgeted $1,370,000. Right. >> Correct. You must >> But the payments were 1,98,661. >> That is correct. >> So I subtracted one number from the other and I got a different number than you did. What I look what I looked at what I was looking at was um Yeah, you're right. It's the $668. What I was looking at is one year's variance to the other. >> Oh, no. No. My question, Pam, is we have a $628,000 deficit. Where do we get the money to pay that? >> We do have funds that we put in the fund balance that is called assigned fund balance for cyber charter over overages. That is where we get the funds. It comes out of the fund balance. >> It comes out of the assigned fund balance. That is correct. But even
060though we we're this high right now, looking at the data for the end of year, our our amount that we're over is far less than the $600,000. >> It's going to be less than $600,000 this year. >> Right now it is. Um the audit is not completed. There are still some adjusting entries that need to be made. the CIFA which is a schedule of federal awards has not been done yet. So that there are a lot of changes that happens with that. Like I said, I've been working sending report after report to the to the auditors, but we're not ready yet to give final numbers. >> In other words, are you saying that we will get help paying this bill? >> What I'm saying is the deficit won't be nearly as large from what I'm
061seeing right now of the $600,000. It will not be that large from what I'm seeing right now. Like I said, that is indeed subject to change once we do the SIFA report. But, >> you know, and you you sent us a memo that I read and it said that you didn't you were counting on something happening in Harrisburg that didn't. Yes. >> So, as a result, you didn't increase the amount of money that you had budgeted this year for cyber school. So it that's really not a problem then because >> well right now um it's anybody's guess what's happening in Harrisburg. Um we did you know whenever I went and met with the senators and representatives they had told us that they believe cyber charter reform was coming. Um, from what I did read today
062from the advoc advoc God, why can't I speak today? Advocacy department at Pasbo, they do believe that there was going to be additional monies given towards cyber charter reform, but not near the amount that we were hoping for. >> There is going to be some. >> That's what they're saying. But like I said, until until the ink is dry on the budget, I'm not really going to buy anything at this point. The other question I have is you have been giving us repeated uh information from a person called Susan Spya. >> Yes. >> And from what I can tell this is a private organization. >> Yes. What they do is they are monitoring very closely cyber charter expenses and some of the things that that they are doing that we obviously are not permitted to
063do. And so therefore, you know, we're trying to basically highlight the um >> wasteful spending, I guess, is a good way of saying it, of of the cyber charter schools because it would be great if they lived under the same rules and regs that we do. They do not. >> Okay. But this is a private organization. At the end of each one of their things, they want us to donate. Donate today. Donate. And I don't see why a school should be getting stuff from a private organization who's seeking donations. Pam, >> well, we're not donating. >> I didn't say you were donating. I'm saying they're asking for it. And I don't think we should be participating in a private organization that's asking us to donate because they have a cause. I I I I this
064discredits their information in my opinion. Um, I I guess I guess you think enough of them to they can send that out, but I don't think we should be dealing with organizations that are looking to raise money. >> All right. Thank you. Uh, citizens comments. Uh, Katherine Fe, you still have comments. Um, Bud Smire again. Um, my copy of the agenda is missing a couple of things. I just wanted to ask a couple of questions about two items and then a a comment. Uh the first was about the uh student service agreement. My copy does not have the estimated cost of that. Do we have that? And the other item is the purchasing consortium. I don't have an estimated cost on that. >> That's just to enter into the consortium. Uh the prices come at
065different times throughout the year. Uh it's it's twice a year. >> It's basically asking that we're part of the consortium and that they are allowed to advertise for prices there. It's basically just advertising that the consort >> So there's no no estimated cost >> for the fuel or for the paper at this point? No, there is not. >> And they're just getting bids, aren't they? >> That is correct. And bids >> service agreement. We're getting bids on that too or >> um that is something that I'm not involved in. >> That's the speech therapy. >> Yeah, that's something that I'm not involved in. I don't >> Okay. And my comment is uh I I thank the board for working very hard on the financing especially since the delays with our state legislature and the feds
066on settling budgets and monies for education and I appreciate the the hard work that goes into that. Thank you. >> Thank you. Need a motion to adjurnn. >> So moved. >> Second. >> All those in favor? I I opposed. Hey, that's