Fieldcrest Board of Education meeting
Wednesday, November 19, 2003 Posted 11:00 p.m. Reported by Fieldcrest Administrative Staff
Adoption of tentative 2003 levy
The Fieldcrest Board of Education adopted the 2003 tentative levy at less than
105% of the previous year's extention. The levy will be payable in 2004-2005.
At the November 6th Board meeting the Board discussed the 2003-levy payable in
2004-2005. Normally, we adopt in December. Since we are at the maximum rate in
our major operating funds, our levy will not exceed 105% of last year's extension
thereby avoiding Truth in Taxation formalities. In looking at extensions from our
county clerks, Woodford County is the only county that is showing appreciable gains
in commercial growth. Usually this would help our EAV, but the other counties are
dragging down our total combined EAV, including Marshall where little or no
development is occurring. What most of you do not know and I have taken this into
account, is that the Social Security Levy needs to cover those teachers hired before
1986 who elect next year to have 1.45% Medicare Tax taken out of their paycheck
beginning in September 2004. District 6 would have to match this amount (1.45%),
which I have projected to be about $22,000. About 26% of our staff was
hired before 1986 and most are near the top of the salary schedule.
Working Cash Bonds
The board approved the issuing of $750,000 of working cash bonds.
Last fiscal (2002-2003) year the Board authorized $1,000,000 in tax anticipation
warrants in order to meet payroll and obligations. In essence, the TAWs left us
with $1,000,000 less in property taxes to operate this fiscal year, 2003-2004.
While the Board of Education has made considerable progress in reducing costs and
generating new sources of revenue, cash flow is still meager. Recent cash flow
analyses indicate that additional revenues will be needed no later than March of
2004 in order to meet payroll and obligations. Kevin Heid of First Midstate
presented a $750,000 Working Cash Bond issue with the Board last meeting.
Preliminary figures indicate that current interest rates for this issue will
increase our bond rate about .16 cents. A notice will be placed in local newspapers and a waiting period of thirty
(30) days will be observed.
For the past several meetings the Board has been exploring ways to cut costs without
compromising the vitality of the District's curriculum. One of the options explored
is Attendance Centers. The Board has directed the administrative team to generate
data on the educational soundness and cost savings of implementing attendance
centers. In addition, the Board has also requested the administration to look at
additional cost savings that could be coupled with attendance centers to assist
the District in balancing the budget in 2004-2005. While attendance centers do save some dollars there are other savings
that would only be determined by actual implementation of the concept.