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LEHIGH VALLEY WEATHER

EAST PENN SCHOOL DISTRICT

ing for a portion of Series of 2012 bond series, which currently has an outstanding balance of $6,555,000. The call date for the bond series was March 15, 2017 with final maturity Sept. 15.

This would give the district cash flow relief in the 2021, 2022 and 2023 fiscal years by extending the debt out to the 2024 and 2025 fiscal years. The future value cost to achieve this is estimated to be $275,260 based on an assumed rate of 2 percent.

For Scenario 2, Shearer said the district would restructure a portion of Series B of 2015 with the amount of $2,785,000 currently outstanding. The bond call date was April 1, with final maturity Sept. 1, 2023.

Following this path, the district would see more relief in the 2021, 2022 and 2023 fiscal years while extending its debt until the 2029 fiscal year. The future value cost to achieve this is estimated to be $412,625 based on a rate of 2 percent.

This would be done in addition to the restructuring of a portion of Series of 2012 as described in the first scenario.

Business Administrator Robert Saul said the administration favors Scenario 1, for having a lesser overall cost while remaining flexible.

The directors would need to agree on a set of parameters by the next meeting, with pricing a bond issue or locking in a loan rate in July and settlement in August, according to Shearer.

Campbell and Saul provided updates on how the district could deal with a projected $6,058,430 budget deficit for the 2020-2021 district budget due to the COVID pandemic.

For Phase 1 of the recommended reductions at a total of $3,990,250, they suggested a 10 percent cut to building and department budgets, reducing staff through attrition and less funding for conferences and substitutes. The Phase 1 debt restructuring plan, along with the capital reserve and fund balance are factored in.

Administration recommended $427,000 in additional expenditure adjustments for Phase 1. These include real estate tax assessment growth, breakage, a less expensive property insurance and workers’ compensation insurance package and a Lehigh Career and Technical Institute tuition rebate.

Campbell detailed a Phase 2 of $370,000 in recommended cuts. Among them are additional staffing reductions, transportation cuts, a less expensive copier contract and reducing the number of clubs and activities.

A shortfall of $1,271,180 still needs to be addressed, Campbell said. Phase 3 would possibly bring further cuts to after school activities, transportation and additional staff reductions through attrition.

A 1.5 percent tax increase is proposed at a cost of an additional $58 per year for the average property owner. The directors preferred to reduce or eliminate the increase, if possible.

After feedback from a majority of directors, the Senior Citizens Real Estate Tax Rebate Program was adjusted to allow those 65 and older to receive a maximum rebate of $650 if they earn a total household income of $10,000 or less. A $500 rebate would go to those earning between $10,001-$15,000, $300 for those with incomes between $15,001-$18,000 and a $200 rebate to those with total household incomes of $18,001-$22,000.

The superintendent proudly informed an appreciative board the faculty and staff have tentatively agreed to a salary freeze for the 2020-2021 school year. This would save the district around $1,605,000 with the generous concessions from the East Penn Education Association and from Act 93, representing the administrators.

A final presentation and adoption of the budget is on target for the regular June 8 meeting, Campbell said.

Board members and the general public attended the meeting remotely via Zoom through a link on the district website.

With all K-12 Pennsylvania schools remaining closed through the end of the academic year to contain the COVID-19 pandemic, a request to address the board was granted to Stephanie Offord who asked if the administration had a timeline for the start of the 2020-2021 school year. Campbell replied the administration is working on plans for board review at the upcoming June meeting.

Board President Ken Bacher announced there were executive sessions held May 14 and 20 where they discussed negotiations.

The next virtual meeting is scheduled June 8. The public can access documents through BoardDocs and register to attend the Zoom session via a link on the district website.

PRESS PHOTO BY ED COURRIERScott Shearer, representing PFM Financial Advisors LLC, explains two different options for debt service restructuring at the East Penn School Board's virtual meeting held May 26. Copyright - &Copy; Ed Courrier