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HomeMy WebLinkAbout1996-12-02 School Committee MinutesREADING PUBLIC SCHOOLS Reading, Massachusetts SCHOOL COMMITTEE MEETING REGULAR SESSION MINUTES DECEMBER 2, 1996 CALL TO ORDER Chair Susan Cavicchi called the regular session to order at 7:40 p.m. in the Superintendent's Conference Room. All members were present with the exception of Ms. D'Antona and Mr. Twomey. Also present were Superintendent Dr. Harry K. Harutunian, Associate Superintendent Dennis Richards, and a reporter from the Chronicle. ROUTINE MATTERS APPROVAL OF MINUTES There were no minutes for approval this evening. BILLS AND PAYROLLS The warrant for bills was as follows: November 25, 1996 - Bills - $226,994.92 December 2, 1996 - Bills - $646,423.86 The warrant for payrolls was a follows: November 29, 1996 - Biweekly - $127,704.81 LIAISON REPORTS There were no liaison reports. REPORT OF THE SCHOOL COMMITTEE CHAIR AND SUPERINTENDENT REGULAR SESSION MINUTES 2 DECEMBER 2, 1996 Dr. Harutunian shared a letter from Jeffrey Struble asking School Committee to reconsider its vote of support for the Ten -Year Capital Plan as presented by the Superintendent on November 18, 1996. The Superintendent included a letter from the Town of Reading Finance Committee regarding the Fiscal Year 1998 Budget - Preliminary Estimate. Dr. Harutunian noted the figures arrived at for the cost of heating, lighting and cleaning a room at RMHS. This amount does not include hallways, cafeteria, etc. It was $2.40 per sq. ft. for lighting, $2.62 per sq. ft. for heat and $4.00 per sq. ft. to clean. He explained that the RISE Program will be moving from Killam Elementary School to a corner of the high school apart from the regular high school. He stated the principal, teachers and parents have approved the location for the four classrooms. In response to Mr. Cummings question regarding the plumbing, he answered there is a bathroom. Work will begin in the spring for a September opening of two of the 10TO M1l The Superintendent announced that Mr. Joseph Finigan has been hired as the permanent RMHS Assistant Principal. He reminded School Committee members of the 8:00 a.m. meeting at Endicott College on the 14th of December. CITIZEN'S INPUT There was no citizen's input. OLD BUSINESS STRATEGIC PLANNING SESSION PRESENTATION Dr. Harutunian introduced Lyle Kirtman from Future Management Systems who was asked to introduce his presentation on Strategic Planning. REGULAR SESSION MINUTES 3 DECEMBER 2, 1996 Mr. Kirtman displayed overheads that answered the following questions: Why is Strategic Planning so important: *Education Reform initiatives pull school systems in multiple directions *Annual budgets drive activities based on short term problems *External demands *Crisis management ♦ Staff changes What happens if we don't do Strategic Planning: *Crisis management too costly ♦ When one problem is solved, more will occur *Lost opportunities ♦ School and community members concerned with own issues How to take advantage of Strategic Planning: ♦Integration of services enhances students *Maximizes resources *Reduces time on crises *More on ownerships in schools How does Strategic Planning help: ♦Increases flexibility *Cooperation with the Town *New funding sources ♦Provides time to analyze *Anticipates issues /changes ♦Involves key players *Gains broader input and support Mr. Kirtman continued with the Strategic Planning process: 1. School Committee and the Superintendent guide the process. 2. Existing groups provide input (i.e. School Councils, PTO, etc 3. All stakeholders are involved. 4. Process kept moving. 5. Trends, data and demographics provide objectivity. REGULAR SESSION MINUTES 4 DECEMBER 2, 1996 Mr. Spadafora asked him if he could help us put finances that are a restriction into place. Mr. Kirtman said he would work with the Steering Committee for the process. Mr. Spadafora's second concern with the Strategic Planning was that the same people are at all the meetings and how do we get other people engaged in this process. Mr. Kirtman stated you would have to go to each group so you would have more mechanisms to test issues. Mr. Stohlman asked how long does the initial process takes and the renewal process time frame? Mr. Kirtman said 9 - 10 months. The renewal process is critical. It would need to be implemented all along. Year end accomplishments would have to be recog- nized. He also noted that it would be hard to be specific beyond a 3 -5 year plan. Dr. Harutunian asked if it would be more advantageous to look at a long range process and should it be on the Town level or just the school. Mr. Kirtman answered it was worth pursuing the school with the Town. The Superintendent thanked Mr. Kirtman and advised the School Committee that Strategic Planning will be put on the December 16th agenda. OTHER Dr. Harutunian expressed sympathy to Ms. D'Antona whose mother passed away yesterday. He informed the School Committee an appropriate donation will be sent. REGULAR SESSION MINUTES 5 DECEMBER 2, 1996 OLD BUSINESS (continued) DISCUSSION - TEN YEAR CAPITAL PLAN Dr. Harutunian shared enrollment projections as follows: *Births ♦ Charts ♦Ensminger Report 1993 -2003 ♦K -8 Enrollment Mr. Spadafora asked how new homes opposed to older homes fit into the enrollment projection? The Superintendent stated the good news is that there is not enough space to build new homes. Because this is difficult to forecast, he meets with the local realtors twice a year. Dr. Harutunian suggested that the School Committee in the year FY2006 ask the Town to put in $30M for Reading Memorial High School. He also suggested an asterisk be placed next to the $30M to note it could be adjusted with the sale of the land fill. Mr. Spadafora moved to amend the 10 year Capital Plan for FY2006 to include $30,000,000 for a renovation of RMHS or the construction of a new RMIIS and to place an asterisk beside that amount to note that it could be adjusted with the sale of the land fill. Mr. Cummings seconded the motion. Mr. Stohlman added this was a move in the right direction. Dr. Harutuman added that he would lean toward a new high school. The vote was 4 -0. Mr. Stohlman was asked to share his Budget Project information. REGULAR SESSION MINUTES 6 DECEMBER 2, 1996 Mr. Stohlman noted on his first graph with now new school capital projects that in the year 2006 the town would have a cumulative deficit of 8 million dollars with all of the Free Cash and the Sale of Real Estate depleted. On a second graph with the recently voted proposed school capital projects, the town would have a cumulative deficit of 14 million dollars by the year 2006. By that time, when a 30 million dollar High School Project is being proposed, the town would be in significantly worse shape than it is today and there is even less chance that the project would be done. Mr. Stohlman felt we cannot assume no override requests for capital projects. On the last graph, he showed we would be better off financially if we pay as we go, asking for overrides for most town and school capital projects. Even with a 21 million dollar high school project done next year, the magnitude of the deficit problem would be reduced to 5 million dollars by the year 2006. He added there was no shame in asking for overrides. If the public votes no we could make due with alternative plans, if yes, we would be much better off. The citizens would also be better informed about the magnitude of their town's capital needs in either case. Reading citizen Mr. Brown stated when Reading Municipal Light is deregulated the $1.2M they contribute to the Town may disappear. The deficit problem would be even worse. He also stated that he would not vote for any override. FinCom Chair Steve Blewitt disagreed and offered a different approach to resolve possible financial difficulties. The assumptions include: (i) revenue estimates as presented at the October 22nd Budget Council meeting, (ii) an increase in the school budget of $2M as indicated in Dr. Harutunian's October 18 memorandum to the School Committee, (iii) an estimated 3% increase in the municipal budget (excluding trash collection and disposal which reflect current bids), (iv) Dr. Harutunian's ten year capital plan dated November 12 which reflects an increase of 1% of revenues directed to capital (from 6.5% to 7.5 %), (v) and $0 Free Cash used to balance the budget. The net result of this scenario is an estimated $1.2M deficit for FY98 and a 5 million dollar cumulative deficit by the year 2000. REGULAR SESSION MINUTES 7 DECEMBER 2, 1996 He added the FinCom voted on and recommends the following issues be reviewed and understood early in the budget process. • The growth in the School Department budget, particularly as it relates to hiring of additional custodial staff and tradesmen (five individuals are tentatively being considered; • The allocation of 7.5% for capital expenditures - 1/2% is worth $200,000; • The funding schedule for the Town's Contributory Retirement System -- the Town (excluding the RMLD) is currently funding approximately $400,000 more than the minimum required, and approximately $200,000 more than if we funded a level percentage each year; • The use of Free Cash. Mr. Stohlman noted that Mr. Blewitt's figures actually result in higher cumulative deficits than his own and asked how the problem could be solved without an over- ride. Mr. Blewitt stated this is no different than any prior year, and that the town would eventually come up with a solution.. Mr. Spadafora asked FinCom if the capital appropriations from FY98 on include the capital plans as approved by School Committee? Mr. Blewitt stated it is the debt service from the School Committee plan the capital appropriation is from the last Capital Improvement Plan. Mr. Spadafora said the 7.5% is included in the capital expenditures, $400,000 out of the Operating Budget. His last concern looking at the projections is that we have little control over moneys from properties and asked if we have any projections from the state to help us with our figures. REGULAR SESSION MINUTES 8 DECEMBER 2, 1996 Ms. Klepeis stated the school department after the recession in the 1980's regrouped and rebuilt with fees, i.e. athletics. In boom times, as we are in now, we have more revenues that we can use for capital. Mr. Cummings asked if the Department of Revenue ever did a multi year projection of what they anticipate state aid to be? Ms. Klepeis said she was not aware of it. In answer to a question posed by Mr. Stohlman, Ms. Klepeis said capital money was used until SBAB money kicked in. Mr. Stohlman said until SBAB money comes there is a fixed cost the Town can't cut. We need to pay off our debts first. He stated a capital plan that depends on debt service without asking the public for overrides will be fixed into the plan for 10 -20 years depending on the type of project that it is and even when SBAB kicks in it will still be fixed into the plan. Town still has to pay 33% for the life of the bond. That is why overrides should be requested. INFORMATION Dr. Harutunian advised that he would meet with the FinCom people on Wednesday, December 4 to tour the high school. He stated he has asked each school principal to designate a parent to attend meetings on the budget. School Committee will receive the Superintendent's recommended budget on December 20. Then all appropriate people will be receiving the budget. On a follow up from SBAB, Dr. Harutunian stated all safety related items are handled on a separate track than the capital plan. These projects could take 8 -10 years before we see the money. We could receive 66% on the Eaton project very quickly because it is still an open project. Chair Cavicchi invited the public to attend the Highlight meeting at Coolidge Middle School on December 3 at 7:30 p.m. REGULAR SESSION MINUTES 9 DECEMBER 2, 1996 ADJOURN At 9:10 p.m. Mr. Spadafora moved to adjourn. Mr. Cummings seconded the motion. The vote was unanimous. Ms. Cavicchi, Mr. Cummings. Mr. Spadafora, Mr. Stohhnan ,Respectfully--stqDmitted, fC,( Harry R. Harutunian, Ph.D, Superintendent of Schools