Financial Affairs Committee Presentation May 2020

With co-chair Joel Fishbein presiding, the Financial Affairs Committee met Tuesday, May 5 in a Zoom seminar room, which allowed the public to view the meeting and submit questions in real-time. Business manager Cara Michaels presented three agenda items: 2020-21 food service management company (FSMC) renewal; 2019-20 budget status; and 2020-21 proposed final budget.

 

Michaels provided an update on the food service bid process, which COVID-19 closures impacted. She relayed the Pennsylvania Department of Education (PDE) approved CSD for a COVID-19 emergency waiver, which allows for a one-year extension of the current food service management contract with Chartwells. The renewal package was approved by PDE based upon the budget and $120,000 guarantee presented in the presentation. The approval of the renewal documents is slated for the May 12, 2020, legislative meeting.

 

Michaels provided an update on the 2019-20 budget, which illustrated CSD has collected or realized 85.44 percent of its revenues and has expended 76.34 percent of its expenditures. She reported an update on the savings ($1,802,000) and unexpected costs ($214,150) created by the COVID-19 closure. Through the administration’s ongoing efforts, the expected use of fund balance was reduced from $2,733,728 to $991,200.

 

To close the meeting, Michaels presented an extensive overview of the 2020-21 proposed final budget, which will be adopted at the May 12, 2020, legislative meeting. The proposed final budget includes a tax increase to the Act 1 Index or 2.6 percent, which provides an additional $2.2 million in revenue. The additional revenue is offset by decreases in overall local and state revenue due to the COVID-19 impact on the economy. Administration reduced the overall expenditures by over $2.4 million through myriad cost savings, including salary attritional savings, elimination of administrative positions and operational efficiencies. The COVID-19 negative impact on revenues requires CSD to utilize $3.2 million in fund balance. Michaels relayed that this amount will be addressed through 2019-20 savings.

 

The next Financial Affairs committee meeting is Tuesday, June 2, immediately following the Facilities committee meeting.

May Financial Affairs Presentation.pdf, 14.01 MB; (Last Modified on May 7, 2020)