Business Administrator Robert Saul presented a long-range fiscal and capital plan at the March 13 meeting of the East Penn School District Board of Directors.

Saul said the goal of the plan is to “evaluate the short- and long-term fiscal health of the district to ensure the short- and long-term needs of the district can be met.”

The criteria used to create the long-range fiscal plan included the need to “maintain the quality of education programs, improve the quality of educational programs when resources allow, maintain the physical plant to avoid unnecessary and unplanned repairs and maintenance, provide for a 3 to 5 percent budgetary reserve and proposal real estate tax increases that, when possible, are at or below the state mandated index.”

Saul said there may be a conflict “between the guiding criteria and sustaining real estate tax rates that are acceptable to the community.” He cited it may be necessary to raise taxes above the Act 1 index “to maintain educational programs, maintain the physical plant and/or provide for a budgetary reserve.” He also suggested cuts to programs may be necessary to keep tax increases down.

An analysis of the fund balance from 2014-2015 through 2021-2022 was provided to the board members. The projected ending fund balance is $8,200,022 for 2017-2018 with an estimation to rise to $23,831,363 for the 2021-2022 school year.

Saul also provided projected budget numbers through the 2021-2022 school year.

It was noted the district will see a drop in the debt service by approximately $20,000 in the 2017-2018 proposed budget and by approximately $3 million in the projected 2018-2019 budget.

Saul said he used a conservative approach in determining growth assumptions for both revenues and expenditures. Salaries and benefits in the long-range plan are based on the existing contracts with instruction, administration, custodial/maintenance and support staff. According to Saul, the district is implementing district-wide plans to reduce health care costs for the 2017-2018 school year.

Costs associated with special education, charter schools, transportation and tuitions to other institutions are not in the district’s control. Saul estimated a 3 percent growth in charter school costs and 5 percent growth in special education costs each year through 2021-2022.

There was discussion on the rising costs associated with the Public School Employees’ Retirement System. Retirement costs continue to rise with an approximate $2 million jump projected for the 2017-2018 school year, with increases each year through the 2021-2022 school year.

Superintendent Dr. Michael Schilder also provided a prioritized list of district needs which included phase one of a three year technology plan for infrastructure, phase one of a three year technology plan for Chromebooks for students in grade nine, an elementary science program (two year plan), a curriculum and instructional supervisor for science, technology, engineering and math needs, a Communities in Schools coordinator at Emmaus High School, an additional sixth grade teacher at Lower Macungie Middle School, an additional middle school psychologist for emotional support classes and a special education teacher of autism required by the Individuals with Disabilities Education Act. The prioritized district needs total $1,276,000.

As part of his presentation, Saul showed what the tax impact would be for an average residential home assessed at $210,382 if taxes were raised at the proposed 3.77 percent – the increase for the 2017-2018 school year would be $140.

Board members said they would like to see what the budget would look like with no tax increase.

In other business, the board continues to update policies; at the March 13 meeting, policies pertaining to finances in the district were reviewed.

In personnel news, Joanne Howard, staff assistant at Wescosville Elementary School, resigned effective March 3, EHS English teacher Diane Sherwood announced her retirement effective June 14, Eyer Middle School Guidance Counselor Nancy Hassler announced her retirement effective July 1 and LMMS Social Studies teacher Andrew Heimel announced his retirement effective June 13.

The board approved the district calendar for the 2017-2018 school year. The first day of school for students will be Aug. 28.

It was announced the East Penn School District Education Foundation will host a fundraising gala 6 to 8:30 p.m. May 10 at Lehigh Country Club. Three levels of sponsorship are available and can be found at www.epsdeducationfoundation.org. The gala is to support STEAM-powered education.

The next board meeting will be held 7:30 p.m. March 27 in the board room, 800 Pine St., Emmaus.