South Fayette schools looking at ‘difficult year’
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At the beginning of the first South Fayette School Board meeting of 2014, President Leonard Fornella stressed this year will be a difficult one for the district.
“We have many special issues this year,” Fornella said at last week’s meeting. The matters include the 2014-15 budget, negotiations with the district’s nonprofessional employees and the hiring of a new athletic director.
“We critically have to address the high school expansion,” Fornella added. The district has been working with demographer Dr. Shelby Stewman regarding projections for growth in the district. Stewman will be on hand to discuss his findings at a special meeting at 7 p.m. Feb. 6 in the Pride Room above the high school stadium.
“It’s a year that will require a lot of time, effort and hard work,” he said.
The district started the year by saving a net of $1.7 million by refinancing 2004 bonds. The board voted unanimously to refinance the bonds.
In a competitive Internet auction held Jan. 21, Janney Montgomery Scott was the low bidder at an interest rate of 2.6 percent, which included insurance on the bonds. The district’s previous interest rate was between 3.5 and 4.35 percent. Jamie Doyle of Public Financial Management presented the findings to the board via phone at the meeting. She said the bonds have a five-year call feature and will come up again for refinancing in March 2022.
“We are not extending the debt, just replacing it with today’s low interest rates,” Doyle said.
Doyle said the district will see a savings of $272,000 in the current fiscal year and a $944,000 savings in fiscal year 2015, or 8 percent savings overall.
Several principals presented preliminary budgets to the board, which must vote on a plan by its Feb. 18 meeting.
District director of finance Brian Tony said it appears new Allegheny County assessment data would give the district a $900,000 increase in revenue and another approximately $600,000 if the board decides to go to the index limit of raising taxes. However, he said he has no firm numbers yet.