by David Flint
The Berlin School Board at their regular monthly meeting last Tuesday, November 18 listened to a breakdown of cost and State aid figures for two more options for a capital building project but were not prepared to take any action at this time. Dr. Rick Timbs of the financial consulting firm Bernard P. Donegan, Inc. presented one option that would leave Grafton Elementary School open for the time being but relocate Stephentown students to Berlin Elementary. There would be construction at Berlin Elementary and at the Middle School/High School in Cherry Plain, along with some needed renovation work at Grafton. Leaving Grafton open, the District would forego the $1.8 million that the State offered as an incentive for consolidation. The total cost would be $11.5 million. A taxpayer with a $125,000 home and basic STAR exemption would see an average annual cost of $38.
Another option would also include a new building and other work at the bus garage. The cost of this package would be $18.5 million. Timbs suggested the Board consider it because it would be advantageous for maximizing State aid. The average annual cost to the taxpayer with a $125,000 home and the basic STAR exemption would be $76.
There was very little discussion among Board members regarding these options. Beverly Stewart noted that the State financial situation has changed and the economy is now much worse. She thought the Board needed to wait a month or two to “see what’s happening.” In the meantime she asked for data on the financial impact of a capital project that would include a list compiled last spring of only the highest priority items. Timbs said he could provide that after having the architects recertify the numbers.
Shared Municipal
Services
County Engineer Fred Howard appeared before the Board to express support for the Berlin Central School District taking lead agency status in applying for a shared municipal services grant. The grant would fund a feasibility study for a shared vehicle maintenance and wash facility and fueling stations. Howard said a school district is the logical choice for lead agency because unlike the County and towns, school districts get State building aid.
Interim Superintendent Charlotte Gregory said the State is encouraging this sort of cooperation and looks at this project as a model. The fact that BCSD is located centrally in the study area was a factor in the selection of lead agency for the study grant application. The amount of the grant would be up to $29,000 and the cost to BCSD for the grant application would be less than $700 depending on the number of partners. Possible partners would include the school districts of Berlin and Hoosick Falls, the County and the towns of New Lebanon, Stephentown, Berlin, Petersburgh, Grafton and Hoosick. The Town of Berlin, Gregory said, had already agreed to be a partner. Gregory felt the school districts and towns could save considerable dollars on fuel and in washing and maintaining of vehicles by consolidating purchasing and services. She noted that the New Lebanon School District is already under notice that they will have to bring their bus washing facility into compliance with DEC regulations to the tune of $2 million. The Berlin School District, she said, could soon face a similar situation.
Board Member Tom Morelli said he was all for shared services but didn’t feel that the BCSD with its limited resources and other commitments should take the lead status on such a large multi-district and multi-county endeavor.
Howard pointed out that there has to be a lead agency but that whatever actual work is involved would be distributed among the partners. The lead agency in the feasibility study grant application would not necessarily have to take the lead in implementing any project that might result from the study. Again he suggested it might make sense for a school district to take the lead in implementation as well because of State aid implications, but the study, he said, might determine otherwise.
Board President Frank Zwack added that another reason for a school district to take lead agency status for the grant is that the services of Questar III would be used to write the grant. In any case he foresaw in shared services a lot of opportunity for all the partners to save a lot of money with no financial burden on any of them. Board Member Liz Miller said the Board could not afford not to put a little bit of money into a feasibility study that had the potential of helping the District pare down costs in an economy that she felt is going to get worse before it gets better.
Although Morelli, Don French and Beverly Stewart expressed concerns about the District eventually being saddled with heavy responsibility in this endeavor, they somewhat reluctantly joined the other four Board Members in voting to contribute up to $700 for the feasibility study and grant application with BCSD as lead agency.
School Bus Purchase
The voters approved an amount of up to $443,600 in May for the purchase of nine new school buses. Purchase orders have been drawn up and authorization for payment of $424,435 was presented to the Board at this meeting. Tom Morelli argued that changes in the market place dictate that the Board reconsider the purchase, especially in light of the possibility that the State might cut the current year’s aid by a reported $365,000. He wanted more information regarding how the expenditure would play out in the Board’s five year financial model, given that less aid from the State is expected, and on what the impact would be on the taxpayer down the road. He did not want to see a shortfall jeopardizing academic programs that the District has put in place. He thought it might be wise to reopen negotiations with the vendors.
Liz Miller responded that the voters approved the purchase and the Board is obligated to get the children safely to the academic programs that Morelli spoke of. Interim Business Administrator Scott Hunter rejoined that failure to go through with the purchase could put the District’s Transportation Department in significant jeopardy with the vendors. Frank Zwack said that the Department has nine buses that are close to being rejected by State inspection and that voters were given that information when they approved the purchase proposition in May. Head Mechanic Ken Masterson confirmed that the buses are rusting and several of them will not pass inspection. If the new buses are not purchased, he said, it would definitely be a safety concern.
Beverly Stewart suggested scheduling another special meeting for the following week on this matter, but President Zwack asked for a vote. The motion to pay for the busses passed 4-2 with Zwack, Miller, Stewart and Julie Darling voting yes and Tom Morelli and Don French voting no. Jeffrey Paine was absent from this meeting.
Auditor’s Reports
A generally favorable independent auditor’s report was presented at the October 21 meeting by Raymond G. Preusser. Tom Morelli said at the time that, having just received the report, he had not had time to digest it, so he hoped the auditor would return at a later meeting. Preusser was not able to be at this meeting and Morelli had questions regarding the attached management letter as well as questions about how much money needs to be sequestered in a reserve account for employee benefits. Audit Committee Chairman Andy McGuire said that the Board could make no changes to the report and that a corrective action plan had been drafted by Scott Hunter in response to a few minor items raised in the report. The Board’s only requirement, he said, is to pass a resolution indicating that they have received the report and the internal auditor’s report as well. The Board voted 5-1 stating that they had received both reports, with Morelli voting no on both motions.
The 2009-10 Budget
Hunter presented a first “broad brush” look at a 2009-10 budget that would keep a tax levy increase to no more than 4%. Among assumptions, he said, that need to be tested are a 3% increase in salaries, 10% increase in employee benefits, 10% increase in energy costs and a 4.5% increase in State aid. With these assumptions and others, the projected spending would be $19.1 million, an increase of 3.6% over the current budget. The 4.5% increase in State aid was projected from historical data but given the current economic situation, Hunter predicted that State aid is likely to be flat next year, resulting in a potential revenue shortfall of half a million dollars. The District, he said, “must be realistic about the unpredictability of the environment in which we operate.”
Tom Morelli wanted to know how the projected savings of $460,000 from closing Stephentown figured in the budget. As it stands now, he said, the “expectations are way out of line.” With flat State aid and an increase in expenditures approaching $700,000, he concluded the actual increase in spending might well be in the neighborhood of $1.1 million even with closing Stephentown, no building restoration and apparently no new educational programs. “That dog won’t hunt!” he said.
Trip To Obama
Inauguration
The Board approved unanimously a request from High School students to travel to Washington, DC, to attend the Inauguration ceremonies for President Obama. In addition to witnessing the swearing in, they expect to visit a number of historical sites in the city. It is estimated that about 40 students will be going on the trip, accompanied by teachers and at least one chaperone for every ten students. The students will be conducting some fund-raisers in coming weeks to offset some of the cost of the trip.
Praise For Ray Nelson, Modified Soccer Coach
Board President Zwack called upon Modified Soccer Coach Ray Nelson to come forward to receive the praise and thanks of the Board for his “professional conduct and good example set for the kids and the District.” At a game on October 17 at Cherry Plain with a team from Waterford, Nelson had made a decision to forfeit the game and remove his players from the field after one of the Waterford parents continued to berate coaches, players and referees with foul and threatening language. Several of the other Board members added their own comments, agreeing that Nelson did the right thing. Nelson also received applause from the audience attending the meeting.
Superintendent Gregory noted that the District has received a note of apology from the Superintendent of the Waterford School District.
Next Meeting
The Board set their next regular meeting for Tuesday, December 16 at 7 pm at the High School.