Central Dauphin School District 2017-2018 Budget Presenta<on #11 - - PowerPoint PPT Presentation

Central Dauphin School District

2017-2018 Budget Presenta<on #11

April 10, 2017

DCTS/HSD Joinder Timeline

• July 1, 2003, the Restated Ar<cles of Agreement were

approved;

• Ar<cle 14 of the Ar<cles of Agreement states the new

members can be admiNed;

• February 5, 2014, the President of the HSD’s School

Board requested HSD be considered to become a member district;

• July 29, 2015, PFM completes an “Analysis of New

Member District Criteria” which is updated and revised December 2, 2016

Summary-Proposed DCTS Resolu<on

• November 30, 2016, Barley Snyder LLP developed a

Proposed Plan of Ac<on for the Admission of Harrisburg School District as an addi<onal member school district;

• December 14, 2016, Joint Board members approved the

Proposed Plan of Ac<on

• January 19, 2017, the Board appointed Nego<a<ng

CommiNee begins mee<ng and;

• March 24, 2017, the CommiNee reaches a tenta<ve

agreement with the HSD on the terms and condi<ons under which HSD will be admiNed as a member district

• f the Dauphin County Technical School.

DCTS/HSD Joinder Timeline

• The DCTS solicitor finished dra\ing a Joint Board

resolu<on approving the admission of HSD as an addi<onal member district.

• DCTS solicitor and HSD solicitor shared the dra\

resolu<on and began working on common language for both par<es’ board resolu<ons including language that deals with possible future refinancing of the current DCTS debt.

• Any language changes to the current dra\ resolu<on

will not materially affect the agreed upon terms.

• April 10, 2017 at 5PM - HSD school board will hold a

special mee<ng to consider a resolu<on to become a DCTS member district.

DCTS/HSD Joinder Timeline

• April 12, 2017 - Joint Board mee<ng includes a mo<on

to adopt a resolu<on approving the admission of the Harrisburg School District as an addi<onal member district.

• If no quorum is present for Wednesday’s Joint Board

mee<ng, by April 25th, we should know the outcome

• f the Joint Board vote on the Harrisburg SD admission

resolu<on.

• Dr. Grimm is working with PDE to understand the form

and content of the request we plan to submit to the State Board of Educa<on by May 1 for ini<al considera<on at their May 10-11 mee<ngs.

Resolu<on

• Harrisburg School District (“HSD”) shall buy into

the Dauphin County Technical School (“DCTS”)

– an 11.83% por<on of the net assets of – by payment of $3,178,263.00 at closing. – The net asset value is based upon the DCTS 2015-2016 audited financial statements and the 11.83% is – HSD’s propor<onate share based upon 2015 STEB cer<fied market values of real estate within the seven (7) school districts.

Resolu<on

• As contribu<on to future debt service related

to the 2015 Guaranteed School Lease Revenue Bonds,

– HSD shall pay $2,239,416.00 – in six (6) equal installments of $373,236.00 commencing on July 31, 2017, or on the date of closing, whichever is later, and on the same day of each of the succeeding five (5) years.

Resolu<on

• The sum of all payments in considera<on for

HSD becoming a member district in DCTS equals $5,417,679.00.

– HSD shall have no further obliga<on to contribute to the future debt service on the 2015 Guaranteed School Lease Revenue Bonds other than as set forth in above.

Resolu<on

• HSD will remit payments in considera<on of

this agreement directly to the current member districts.

Resolu<on

• If DCTS or the member districts refinance the

current debt at some future date, credit will be provided to HSD for the por<on of the contribu<on paid to date as well as any impact the “payment in full” will have compared to that paid by current member districts.

Resolu<on

• HSD requests that the debt service payments

to the six member districts be credited to a Capital Reserve Fund or to advance refund debt, but understands that the member districts will decide how to assign or use such funds in each member district’s sole discre<on.

Resolu<on

• DCTS opera<ng costs shall be shared by the member

districts in accordance with Ar<cle 9 of the Ar<cles of

• Agreement. HSD’s contribu<on shall be in accordance

with the following schedule:

– HSD’s opera<ng budget contribu<on for Fiscal Year 2017-18 will be based upon a two-year ADM average; – Fiscal Year 2018-19 will be based upon a three-year ADM average; – Fiscal Year 2019-20 will be based upon a four-year ADM average; – Fiscal Year 2020-21 and therea\er will be based upon a five-year ADM average of the prior five (5) school years.

Resolu<on

• HSD will become a member district in the 2017-18 school

year, a\er: – Approval of this Resolu<on – Approval of a joinder agreement by HSD and the current member districts, – Payment of the ini<al buy-in and debt service amounts

• All other terms and condi<ons of the restated Ar<cles of

Agreement (effec<ve July 1, 2003) shall remain in effect for all member districts, unless otherwise agreed to by the Joint Board.

Resolu<on

• The current member districts and HSD will

work collabora<vely and expedi<ously to iden<fy any other necessary approvals and no<fica<ons, for example, approval by the Pennsylvania State Board for Voca<onal Technical Educa<on, and to plan and ini<ate ac<ons to resolve them prior to the closing date.

Resolu<on

• The alternate DCTS 2017/2018 Budget (with

Harrisburg as Member District) and the Member District Contribu<on and Non- Member Calcula<on a copy of which is aNached hereto as Exhibit “A” is approved and shall supersede inconsistent provisions in the DCTS 2017/2018 Budget (with Harrisburg as a Tui<on District).

CDSD Budget Revision

• 2016-2017 – $5,983,356
• 2017-2018 – without HSD $6,227,408 +4.1%
• 2017-2018 – with HSD $6,442,823 +7.6%

CDSD Budget Revision

CDSD Budget Revision

Ques<ons