The Salisbury Township Board of Directors held an operations and finance committee meeting Jan. 15 to discuss the Salisbury Elementary School library configuration project and replacement flooring in the east wing in the high school.

Director of Facilities Bill Brackett started the meeting by presenting the board with an update on the bids for the SES library configuration project and requested approval to move forward with notifications ahead of formal approval at the Jan. 22 regular school board meeting. The cost of the project came in at $374,525.

Superintendent Lynn Fuini-Hetten, in an effort to be transparent, informed the board it may be necessary to hire an outside moving company to move the contents of the library so workers can have full access to the library and the project can start the day after school ends. The cost will be approximately $7,500-$8,000.

After wrapping up the discussion on the library configuration project, Brackett moved on to explain the need for replacement flooring in three classrooms in the east wing of the high school. This area of the building previously housed the wood shop until the area was converted into five classrooms. The flooring in three of the five classrooms is separating from the plywood base and is failing despite past efforts to seal the afflicted areas. The projected cost for replacing the flooring in three classrooms is $24,240.

Directors Sarah Nemitz and Thomas Spinner raised concern about the flooring in the other two classrooms as they were converted at the same time and may develop the same issues and whether it would be more cost effective to do the five classrooms at one time rather than wait for a problem to arise. Brackett estimated an additional $16,000 would be needed to complete the project which will be done during the school year two classrooms at a time. SHS Principal Heather Morningstar has been consulted and is in support of the timing of the project and will do what is necessary to make it work.

In terms of paying for the project, Chief Financial Officer Dawn Nickischer anticipates there will be at least $160,000 left in the 2024 bond fund after the completion of the summer projects which will be more than enough to cover the cost of the flooring project.

After a brief discussion, the majority of the board voted to move ahead with replacing the flooring in all five classrooms.

During the finance portion of the meeting, Nickischer reported on the completed audit which showed the district reported a growth of $1.8 million in the fund balance due to higher rates of collection in several areas and higher interest rates.

Directors Laura McKelvey and Joseph Gaither raised questions in reference to the $1.8 million in surplus. McKelvey said she is struggling with the idea of raising taxes when we have a surplus and we are already ahead for this year.

Nickischer explained it is much more complicated than simply looking at revenue and expenditures. Unpredictable federal and state funding as well as grants and other factors make it difficult to build a tight budget. Utilizing available tools can help in the budgeting process while trying to avoid coming in under budget or too far over budget.

Spinner and Gaither emphasized the need to be clear and up front with the public as to why we need to raise taxes and what is being done with the money.

Nickisher remarked that while we do not want to continue to raise taxes, funds need to be available not only for everyday operating expenses but to pay for projects like the upcoming $12 million HVAC replacement needed at the high school. If the district can earmark funds to pay some of the cost of a large project and, in turn, borrow less it will save money in the long run.

Fuini-Hetten responded by saying the district is not raising taxes without a plan. The plan is the master facilities plan and many projects, some of which are deferred projects that should have been completed years ago, have been completed according to the plan.

Nemitz summed up the discussion by saying the audit is step one in the budget process and she encourages the community to become engaged in the process over the next five months.

Insurance renewal was the next item on the agenda and as expected insurance premiums increased 15% which is $35,000 more than last year due mainly to claims made for water damage. The deductible also increased from $2,500 to $25,000 which is becoming a standard in the insurance industry. Insurance renewal occurs every year and each year the district strives to shop for the best price.

The 2025-2026 Act I Index projections were then presented in a chart that outlined the amount of taxes that would be raised based on assessed property values. The maximum Act 1 Index rate for 2025-2026 is 4% and it continues to trend downward until 2028-2029 where it reaches a low of 3.1%.

Nickischer noted that due to a number of appeals total property values have been reduced by $20 million as of January. Using the current assessed values she calculated the additional revenue generated with a 4% tax increase and a 3.5% increase. The difference in generated revenue between a levy of 3.5% and 4% totaled $157,364 which compounded annually over four years equated to a loss of $662,194.

Now that the audit has been completed work will be done over the coming weeks to compile a budget package to present to the board at the February meeting.

The next meeting of the operations and finance committee will be held 7 p.m. Feb. 5 in the administration building, 1140 Salisbury Road, Allentown.