Okay. Are we Not not that I not that I don't enjoy the baseball conversation, but I do want to uh bring this m this meeting to uh to order. Are we okay? >> Okay. And we're going to start. Leon, you ready? All right. Thank you. Uh so we uh we will open. We'll call this meeting to order. Um as as as new the new chairperson to the finance committee, right? Like Mrs. Crossen runs the uh the board meetings. Uh we look to you to run uh the committee meeting. Uh so you will uh call the meeting to order and we will take ro and if you can speak it turn on and speak into the microphone. Thanks. [snorts] Turn your microphone on, please. >> Sorry, it's Dr. agenda. So moved. >> Second. We only have two. [laughter] >> Okay. >> I thank you. There are none. >> So moved. >> All in favor? Sorry. >> All in favor? >> I. >> Okay. >> We are the only voting members. So >> Okay. [snorts] presentation. >> Okay. >> So, we will uh we will jump in. Um so, the finance our committee typically we h I have this uh discussion guide that I insert um and that'll sort of cover the the topics uh to be discussed. Um and we will we'll go through the agenda the financial update. Um so as shared um we have uh included and updated our uh forecast analytics. Um this we're showing uh revenues through December 31st. Um you can see across the top it looks at total revenue and then the historical trend uh both for total for local and for state as well uh across that board. Um the top 10 sources of revenue uh are located in that bottom left hand box. Uh current real estate taxes. Real estate taxes as we know are the majority of the school's revenue uh every year. Um followed we have by basic ed funding uh property tax reductions which is that homestead farmstead uh money that comes back uh through gambling proceeds from the state. Um and then uh earned income tax and the state share of retirement contributions round out sort of our top five on that list. If we look at by source, our local revenue is is a little higher uh year to date than um than the prior year. Some of that is just logical as a tax increase is going to drive additional money. Um we're very similar on the state side. Um the state side we are uh we are missing one of those pension uh subsidies that we get. So uh the state uh after not paying anything through uh through most of November uh when the budget did get passed uh they really worked hard to catch up and to release the funding uh which has been very good. Uh so things like basic ed funding they made they've made historically made three payments before the end of the year under the calendar year and they did the same. So we we had two within a week and then we got a third in December. That the pension piece is is the only one that has has slid past that calendar window. Okay. Any questions on the year-to- date revenue slide? Was the pension piece um that was external to the budget though, wasn't it? To them passing the budget, I thought >> um yes, but they the state did not release any money. >> Okay. >> Right. So when they released nothing, they released nothing. They didn't release pension subsidy. They didn't release FICA Medicare subsidy. Uh they released nothing. As you saw in the earlier months, right, when we were having this meeting in September and October, right, we had a goose egg uh in uh in state funding. Until the p until the budget gets passed, the state can't pay anybody. Okay. >> Make sure you're speaking into the microphone. I'm sorry. Um I I think as I as I said I think they did to the best that they could, right? So things like basic ed funding which you get throughout the year. Um we got one we got two in within a week in November right when the budget got passed. We got sort of backtoback basic ed funding. uh dispersements. We picked up a third in December and that is historically in line with previous years. So they did accelerate uh the payments as they know did uh the P the pension one was is is the only wild card I think that is scheduled for payment in January. Which which shortfall are you referring to? >> In in the state revenue. >> Oh, I I I think that's that it's probably if you look at the bar, right? There's roughly $2 million and that's that's what the uh >> the payment paser's reimbursement >> reimbursement subsidies worth. Right. >> That would level us, right? >> Yeah. Historically, when the state does not have a budget, they pay us when they want to. >> But they they've done a good job. And I said, right? And and [snorts] just as we know, right, state funding is is flat, right? There isn't an increase in state funding to school districts. >> So basic funding is is, you know, is the the same. >> We fell behind cost of living increases. >> Yeah. >> Okay. Any other questions on the revenue? Um, this slide again just looks at the revenue sort of on a on a line item basis, right? U general fund year-to- date revenues total at 109,966,000. Uh, which is just shy um 470,000 uh than the amount received last year. Uh we looked calling out some items here. Um, interest on investments. Um, last year at the same point in time, we had $1.5 million in uh interest on investments. Uh, year to date or through December, we had $1.4 million uh in investments. uh as part of our budgeting process, right, we budgeted a slightly lower uh total number, right, 200 uh $2.2 million. Um it seemingly uh the rates aren't dropping as precipitously as we had uh included in the budget. So I think we are in a favorable position uh right now. Knock on wood, I don't want to jinx myself uh but think On the investment side, I think we are uh you know the rate cuts aren't coming as as fast um as as potentially perceived >> and that includes the shortfall from the state for five months. >> Right. Um basic ed funding um share of social security Medicare those are things that uh that we are working through and and collecting on. Um last year on the social security reimbursement uh there is a zero um and last year again um we implemented our new cumulative skyward system and the reporting out of that um was flawed and which delayed our ability to submit. uh once we did those were caught up and and that number would uh would be the same uh when we get through uh if we were looking at further down the year. Okay, moving on to expenses. Sort of that same view, that same slide. Uh total expenses, salary and benefits is is certainly our largest uh group of expenditures and sort of all other objects yearto date. Um In total, we're about 43.7 uh percent uh through our year-to-ate expenses. Um the historical trend is 40. Uh one of the big reasons for that uh difference is debt service. When comparing it to last year, while we paid the December 2024 debt service on time, uh we were still working through the kinks of the the new system and so we made it in December as required, but it ended up getting posted inadvertently to January. So, when we're looking at comparable reports, uh it'll show zero debt service paid in December. Um and uh and that's not the case, right? It was paid. It was a posting error. Next month, you'll see that catchup and and that's that's a big reason for that uh that delta between those two. Uh just a look at expense categories in regular ed instruction. Obviously uh you can see the debt service uh $8 million um that was paid out uh in December. Uh that includes both interest and principal um and the various other categories that we have. Those categories are generally referred to as function codes. So there's function levels uh that are broad uh such as regular ed instruction and then there are object codes that are another level down that that separate those those function expenses into code. So salary is a object code, benefits are an object code, uh supplies are an object code. That's sort of the delineation of of the chart of accounts if you will within uh the state. Any questions? I'm looking at that slide. This slide looks at um looks at the expenses again and this is is more at an object level. So object 100 objects uh from 100 to 199 are salary related benefit object codes is the 200 series. So again trying to this is breaking it down not by group but really by the expense type if you will. >> [snorts] >> And you you can see sort of that debt service at the bottom where there's virtually no there's $120,000 $123,000 in debt service. That's another loan that we paid through um compared to the $8 million that we paid uh this year. And I think that would sort of eliminate that variance. Yes. Yes. Yep. Right on. >> And just because these are being taped, please make sure you speak into the microphones. All right. >> Okay. Is the 1.3 personal service salaries in line with what we had expected for the first half? >> It is. >> Okay. >> It's historically in line. >> Okay. >> Thank you. >> Uh this looks at at priory. So you can see to to your question. Uh Mr. Hartline, right? We were at 40% last year. We're at 40.9 this year. So, we're a little ahead um on that on that specific line. Uh on the benefit side, we're a little bit behind uh where we were at the same point last year. Um you can see that both on on the revenue side, right? So, uh local revenues we had 87.7, we're at 88.5 this current year. It's more driven from some of those positive variances. We didn't anticipate on on the local side. Um, and on the state side, we're we're again I think we're that $2 million difference. Okay. >> Have we gotten a first look yet for benefits for next year? >> We are expecting the first look next week. >> Okay. >> So, I was in touch with uh the Delaware Valley Health Trust in the beginning of January. Uh they they said the week of the 19th was pushing to try to get it earlier, but uh that number that date still holding. >> Okay. [snorts] >> The Delaware uh the district >> what's that? >> The the district healthc care plan is runs through the Delaware Valley Health Trust. uh and that trust will provide us looks they call it a first look which is their initial projection for health care benefit costs uh and then over the next two or three months they will look at refining that number. Uh that number typically is is pretty close. There's not a lot of not a lot of wiggle room and and you know so it's I the first look isn't is certainly a good look, right? We won't find won't amount of money in the second look, but we'll continue to to refine it. They'll continue to work to refine those numbers. So, Mr. Hart's reference originally when I got here, we didn't get the first book until until March. Uh and we said that just in in the school b in school business that just doesn't cut it. So they've really pushed particularly for school districts to make sure that they're coming up with those uh those that analysis much sooner. >> Any other questions? Yes. >> In terms of these lines on >> So technology um is is more of a function, right? Because technology in incorporates a whole bunch of things. It's like the education, right? So that's a function level, right? So again the the the chart of accounts looks at a function level which is a a operation, right? Regular education technology, those are function level um codes, right? And then within the function level code are these object codes which then break down that function into salaries, benefits, ser you know purchase services, supplies and the like. So that is that's how the chart of accounts is structured. So technology in and of itself is is has all of those expenditure codes in it. Right? technology will have salaries. It will have contracted purchase services. It'll have supplies. >> Repairs might go to this this function code. Purchase of new equipment goes here. Outside service contracts go here. It's it's not like you and I are used to in a corporate setting. >> So it falls under contracted services, purchase services and other purchases. >> It falls under all of those. >> All of those and salary. So again function think of a function like technology or like regular education or special education right or the business office right those are function level codes representing sort of a group then within each of those function level codes are object codes right this list salaries benefits right those are all object codes as they are referred to right and then within each object code there's numerous subobject codes. >> Do you ever do a different view? >> Um, I I I think this view is is one of the most important views personally uh that it's at a level that um I think is is more granular than when you look at technology as a whole. Where you and I are used to looking at a budget in technology is the entire technology department. Purchasing, repairs, employment, the whole everything including their benefits and all of that in one category. The way school districts are set up by code, it's a little bit different. And >> we certainly look at technology, right? We and all of their codes associated with it. So we we look at that view. >> Might be able to pull that out here if you could do a pull out. I got a bad echo here. Um, >> we we do that and we can do that regularly, right? >> Yeah. So, yeah, if we want to if we can do that, why don't we try to do a pull out of um May I suggest let's wait until we have the budget meeting at the end of the month? >> Can you turn your microphone off if it's on? >> Hers is not on. >> It's not on. Okay. >> Yeah. Yeah. I don't know where the echo is coming from. Um maybe if we wait until the finance meeting and then kind of get an idea of where we want to pull out what codes from. based upon the budget meeting. I'm sorry, the budget meeting, not the finance meeting. And then maybe we can break down from their individual codes. >> I I guess I thought that budget meeting, >> and what I'm thinking is >> talking about our January 29th. >> Yes. >> Well, that'll be the first. We'll probably have two or three meetings. Um my thought I mean what I was kind of thinking is once we come out of there as a let's look at cutting these areas or where can we see these savings then break out the individuals from there so that we can get a granular look at what is encompassed in and I'm just hypothetical here library sciences or in you know the sports program or in maintenance for antiquated equipment or something like So the purchase of the equipment would be in uh a a hardware purchase or a service purchase. The setting up of the equipment, a separate event would be probably under payroll. If there are warranty services that come with it, that would be part of the contract as well. So, they kind of get allocated differently. >> Yeah. >> And the technology refresh the district leases uh the majority of our uh laptops, Chromebooks, uh they are leased on on a four-year lease. So, typically there is a refresh of that technology um every four years. Um, so it it's sort of in line with the the lease term. >> And I'm also I'm starting actually to hear of some districts considering pulling away from and going back to hard copies of books as well in some areas. So it's going to be kind of interesting to see what plays out in the next five or six years. you know, our um Google has extended its Chrome console for a the useful life of a Chromebook. I believe it's either five or seven years now. So, depending on the technology and where it's at in the schools and who is using it, we may be able to extend some of our leases or look at the purchase out of those computers for usually it's a dollar purchased >> and then we did that. >> Yeah, we did that. Exactly. and then get another year out of them and then you know get rid of those on the open market. >> Right. Right. >> I think it's safe you know to make that uh repeatable right it's really an extension of that term rather than sort of that one and done >> right where we have something then we have nothing we bump up again. >> Exactly. you know, especially because, you know, as time rolls on, we may find that going to actual computers, laptops versus Chromebooks may be something that is more cost effective. Um, keeping in mind too though that the cost of electronics equipment [music] is much higher this year than it was last year. So, we can anticipate with the chip shortage and AI kind of using up all of the available memory and stuff that some of these some of this equipment may be much higher than we were we were looking at last year. >> Sure. >> Okay. >> Uh this last slide um uh looks at a projection sort of a forecast for the end of the year. Um again the the prior yeartoate actuals, the current year-to- date actuals and then the months the remaining months projection. So our model looks historically at our expenses by month and then it out takes that allocation and it and it plays it out in uh in month-to-month increments for the remainder of the year. So it then creates that remaining uh month projection uh and then those two numbers combine for a full year projection what I refer to as our current forecast. Um and compares that to the the overall 2526 budget. Um you know right now we're really projecting that we're on in line uh on the revenue side. I think as we have from year to year. You have you have things that you you've budgeted for. Well, there's some things that you you know that are a little higher or a little low. Uh but primarily we're we're right on track there. Uh state we're a little bit behind. Um and on the federal side, uh we're we're showing a little bit ahead. Um, we did get a little bit more gr uh title funding, although title funding um we're still waiting to be able to submit for title funding. Uh, ver we just had a discussion on uh Tuesday about the timing of the title funding and that may talk that that may come at the end of the year. Um, and we'll see how that how the Department of Education, which is sort of in flux at the moment a little bit, how that title money gets uh gets played out. Uh, but what we have in terms of agreements uh for those title grants has been identified uh and is is a little higher than we had envisioned originally. questions, comments. Okay. Um, relative to the 2627 budget, uh, the budget workshop, uh, as Dr. Lucar mentioned, uh, Tuesday is scheduled for January 29th. Um all budgets going forward are going to start with a zero uh percent increase u and will uh really show the work that needs to be done that way. Uh so it's a a great idea. Um I think you know the plan is originally uh at the 29th is to be looking at sort of buckets of of uh opportunity if you will. Uh and we're certainly working on them uh from the beginning of this school year. So, we're currently reviewing scheduling. Uh we're reviewing special education costs. Um we have a uh the IU planning meeting is coming up for special education. Uh so we're meeting with them. Uh Dr. has charged Heather uh to be evaluating uh transfer of opportunity opportunities where the classes that we have at Davis that are staffed by the IU uh move into district staffing and make that transition. And there is uh there's significant dollars to be recovered in those situations particularly with the cost that the IU charges for those services right they are charging uh tens of thousands $90,000 a student in some cases in those classrooms. So if you have, you know, six students in there, right, you're talking about a lot of money and that they don't pay the teacher that much money, right? So, you know, the uh you know, I think we've got to begin to look at each one of those instances. Some are are, if you will, a no-brainer, right? The classes already the students are our students. They're in our building uh making that push as Dr. is is is challenging us to do is really going to be beneficiary. We're going to benefit from that process by bringing those people on board. Dr. Luke, do you have a comment? Look like you Okay. All right. Um the budget discussion. So these you know this was shared on the 12th of December at our board meeting. really looking our goal is to ensure fiscal responsibility through a comprehensive examination of district expenditures aligning fiscal resources with strategic priorities that advance high quality student outcomes with a focus on efficiency right so I think that's our overall uh mention right we had these same uh focus points uh at the meeting on the 12th and was uh we came up with these through our meetings in the with Mr. Hartline and Dr. Luca as we looked at at what we needed to be doing differently uh this year. So I appreciate your participation in that Mr. Hartline. Um we're looking at scheduling. We're looking at out of district placements. Uh the transfer of entity as we just mentioned uh you know how we go about uh purchasing seats, right? Do we do them in advance? And then and then other ideas like retirement incentives, right? I think the district has a a a incredibly dedicated uh staff. The majority of our uh our staff are teachers. Uh all fall within a very small cluster of time. So there is some concern. Um I think the retirement incentive is is good on two fronts, right? one, it has the opportunity to save money, but I think it also has the opportunity to try to draw out the leaving or the retirement of that staff, right? So that we're not faced with hiring a hundred teachers in a given school year, right? But that we are then allowing uh that time to to come over a greater period of time as individuals uh plan their their retirement futures. >> Okay. Where are we on the PIMS funding that we were talking about turning it away on on the So that's that 1306 those recoveries. I think we're working on getting those out and continue to to continue to update that list. So I think there'll be certainly gains there as we've talked about. >> Do we anticipate any of those gains coming in this fiscal year or Okay, >> great. Can you explain >> which which >> right so those are are a combination of things right so access funding is is sort of Medicare funding that the district receives uh annually through uh through special education and through uh our reporting. Uh the 1306s are are students who uh are in our district but live outside of our district. Uh and that's the process that Dr. Wabos spoke about before about making sure that we're getting that billing out. So we're really looking at maximizing the recovery of those funds. >> Okay. Anything else is that are in district that >> there there certainly could be there certainly it could happen the other way around uh and and does um when we have facilities like um Christ home right that that brings students from outside of the district into your district creates a a little more opportunity around those that we need to be cognizant about we need to make sure we're following that >> I I just want to clarify Mrs. Ker, are you asking is there a situation where a Centennial student who lives in our footprint but goes to school somewhere else where we might be build? Uh, I don't it's very possible. I don't know. I don't have a specific example, but yes, in in a situation where that might be the case, we might also be on the receiving end of a 1306 acquisition request to get that money paid. Uh I I will have to look into >> I I have to see it's very it's very rarely because we we typically when we have students placed out we wouldn't be suscept we wouldn't be uh under that provision but I can do a follow-up to see the extent to which if if it is I'm certain it's very minimal. [clears throat] Okay. Uh just a couple of updates. Um, we have uh a 2026 uh refinancing coming up uh as we discussed uh at the end of last year um when we did our refinancing um in last October in our planning for that because we knew we'd have two that would come due uh sort of back to back. uh we included sort of the legal backward back and forth of legal documentation and approval in that board motion originally. So you can see it talks about the series 2017 as well as the series 2018. Uh so we are looking at both of those. Um the 18 the 17 which was much larger was done last October very successful refinancing. Uh this is a much smaller refinancing. I think we're talking about a principle of like $9 million, right? So it's it's not going to it's not going to shatter the the the the world, but I think it's, you know, we're looking at saving every opportunity we can get. So if we can refinance that debt at a lower rate, uh we're we're making sure we do that. Um that that should happen probably will happen into mid to late February. Uh we had a call uh yesterday with folks at PFM and PNC Bank and and the legal folks who oversee uh those transactions. Um you know, I think it's we'll have a savings of around $50,000 a year, a change in debt service, which is certainly money. So that's a good thing. Uh and it will uh cumulative refinance savings over the this will be the third uh to over $6 million, right? 6.1 million dollars uh as we sit here today, right? We expect it hopefully to get up a little higher, but we'll see if we're as lucky as we were uh the last goound. And you can see the board motion that was approved. Uh number two is the audit is nearing its conclusion. Our audit for the 2425 school year. Uh VER has been doing a fantastic job chaperoning that process and and really uh is is provides information back to them quicker than they can they can ask for it. So uh she's really done a great job. We're really at the tail end which is really the single audit program, right? So a part of a school district's audit is is the audit of its own books as well as they do what is called a single audit which is an audit on a federal program. Uh if you receive over a million dollars in federal programming you required to have a single audit completed. Uh and we do receive over a million dollars. So that's the process we are in now. Uh they selected the food service program. Uh so VA working with Lori Denny our food service manager is working through those questions and providing the documentation back to them and CLA while doing a good job it's still their first time through while they cleaned up last year's audit which was part of that delay um the first time through with any new audit firm uh is always a bit of a challenge right until we understand their questions and they understand how uh we're doing the work here, but they've been uh good partners, I think, uh so far. Uh and our next uh finance committee meeting is the 12th. We have two items that uh we will look to bring forward to the committee of the whole. So, uh Mrs. One of the things that come out of the finance committee and the education committee and the operations committee are the items that we are going to bring forward to the board at our committee of the whole meeting. So it sort of takes what we're talking about today and it's bringing those things forward. So uh two items that we will be bringing forward for information is the monthly reports from PSDLEF which is our main banking uh company uh organization. PISLAF is a is a schoolwide uh districtwide uh source for uh for managing helping us manage our money. we maintain sort of zero uh zero balance checking accounts so that our money is constantly invested uh on the shortterm side and and the longer term side as well. Um the other item that we're going to be bring forward is the IRS mileage update. It's just simply an update in keeping with uh the IRS code. So we say one way or another it is what it is. um items that will be brought up uh for approval. Um the first is the adoption of the opt out resolution. So uh when we get to this point in time, uh there's a decision that needs to be made relative to the budget process. The opt out resolution uh that we'll be seeking indicates that the board cannot go above the 3.51 3.5% increase um as set by the act one index right it doesn't say you can go below it uh but you can't go above it and that's really um what is what gets called out in that adoption the opt option to that would be to to carry to not sign it then to sort carry the budget process right out of the gate where you could then seek for special expense categories you could seek to go above the act one index and that was done here in prior times as well any questions relative to that because I know that is meaningful and important okay uh the second one is accepting uh PA jobs training and education program grant. Uh so uh we received $35,000 from the Commonwealth uh in support of our districtwide robotics program. So we are very excited about that. Um we were uh just his name fell out of my memory. Who's our representative? Monroe, excuse me. So Monroe was very helpful in facilitating this grant. previously uh uh provided $25,000 in funding two years ago. Uh that was used for uh the band, uh wrestling, football, and cheerleading. Uh they those groups were able to utilize that funding to to add to their and expand their program. So the $35,000 is sort of a two-year grant window uh that will be uh used by the robotics team. The robotics team is really blown has really grown here at Centennial. We have robotics programs starting at the elementary school level uh and running through uh the high school level. High school robotics is really something to if you haven't seen it. It's really worth the the price of admission which is typically no money. Uh but it's really fantastic. Uh my wife and I went uh three years ago uh to watch a robotics comp high school robotics competition at uh Hap Horscham High School which is just down the street from us. Um my wife gets all the fun jobs. Uh so coming to robotics but it was really exciting to see right we met with and and talked to the students around the project around the robot that they had built uh and how they went about doing it and how they went about reviewing it. So, it was very interesting and very exciting. Uh, we've made that we've made one every year since then. So, that will be the the next and I'm sure we're not going to turn down the $35,000. So, >> there is no matching requirement to this. Correct. >> There is not. There is not. Okay. Any questions? >> [clears throat] >> Y >> um I think we will we will I I can't I can't tell you I've gone through it yet. We are focusing right now on grants that we know that are out there. So, we're working on refining our PCCD grant uh for $180,000 uh which is is coming due and we need to be able to submit for that uh by the end of this month. So, that's one that's on the radar as well as there's two other PCD PCCD grants that we're evaluating uh that have been uh been put out by the state. I think we will certainly, you know, evaluate all grant opportunities. Certainly another one of our focus points uh as as we look through that process. Okay. Any other questions? All right. Then I'll turn it back to you, Mrs. Kger. motion to >> Thank you very much.