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 of 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 of 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
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