In accordance with Maryland’s Open Meetings Act, General Provisions Article § 3-305(b), (9), the Board will meet in Closed Session at 8:30 am., in conference room 1A to consider matters related to negotiations with the Frederick County Teachers Association (FCTA).

PowerPoint Presentation to be added June 4, 2018

PURPOSE OF PRESENTATION:  Staff seeks approval of the FY 2019 Operating Budget.

BACKGROUND/SUMMARY: The Board of Education (BOE) Operating Budget, totaling $602,297,453 is comprised of the Unrestricted Budget of $533,906,061 and the Restricted Budget of $68,391,392. This Board item includes three attachments: (1) the Sources of Funds for the Operating Budget, (2) the Operating Budget Appropriations by Maryland State Department of Education (MSDE) Categories and (3) the FY 2019 Detailed List of Expenditure Adjustments.

The FY 2019 Operating Budget reflects $7.2 million above Maintenance of Effort (MOE) funding from the Frederick County Government (FCG). The County Council approved its operating budget and associated appropriation to the Board of Education on May 15, 2018.

The unrestricted revenues also include a net increase of approximately $7.8 million from the state government. The state funding includes increases due to overall enrollment as well as increased enrollment in limited English proficiency, free and reduced meal and special education populations.

The FY 2019 unrestricted expenditures of $533,906,061 are $22.5 million more than the approved FY 2018 unrestricted expenditures. This increase is attributable mainly to the staffing increases due to projected enrollment and the salary resource pool which allows for the third year of the teacher salary scale transition and the proportionate change to the other employee salary scales.  The chart below outlines the major adjustments in unrestricted expenditures:

The Restricted portion of the operating budget increased $1,307,346 from FY 2018. The changes to the restricted projects are noted below:

The first two attachments, the Sources of Funds and MSDE Expenditure Categories, are the documents that require BOE approval. The third attachment is the detailed working file for which the Board has been working from throughout the budget cycle. 

PRESENTER(S) & TITLE(S):

Heather Jo Clabaugh, Budget Officer

Leslie Pellegrino, Chief Financial Officer

SUBMITTED BY:  Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION:  Staff seeks approval of the FY 2019 Capital Budget.

BACKGROUND/SUMMARY:  As recommended by the County Executive and approved by the County Council, the capital budget includes construction funds to begin the Urbana Elementary School Replacement project as well as the design of the Waverley Elementary School Replacement and the feasibility study for the modernization/addition of Liberty Elementary School. Funding is also included for ten (10) systemic renovation projects. 

At FCPS’s request, Frederick County is defunding the 33 Thomas Johnson Drive Roof project to fund the Hayward Road Bus Facility Project.  This appears as a credit on the attached budget summary.     

The FY 2019 Capital Budget is recommended at a total of $24,277,828. This is comprised of state and local funding.  The projects listed in the attached budget summary are part of the comprehensive six-year plan that is updated annually. 

PRESENTER(S) & TITLE(S): 

Heather Jo Clabaugh, Budget Officer

SUBMITTED BY: 

Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION:  Staff seeks approval of the FY 2019 Self-Insurance Fund Budget.

BACKGROUND/SUMMARY:  The proposed FY 2019 Self-Insurance Operating Budget is $104,282,737. The budget is $1,277,574 or 1.24% over the approved FY 2018 budget. The proposed budget includes no premium increases.

The recommended expenditures are $104,282,737, which is $1,277,574 more than the budgeted expenditures for FY 2018 of $103,005,163. Included in the expenses is a one-time contribution to the Other Post-Employment Benefits (OPEB) Trust Fund for $1,000,000 and a one-time contribution to the Unrestricted Operating Budget of $617,250 to cover the insurance costs for an estimated 125 new retirees. Included in medical claims paid is an estimated $1,900,000 to cover the insurance cost for new employees and $180,000 for dental costs related to increased plan maximums.  Within the administrative contracts budget line item is an estimated $200,000 for 12 months of claim processing by the prior Health Administrator for claims related to June 30, 2018 and prior. To balance the FY 2019 Self Insurance Fund Budget, $1,617,250 of fund balance reserve will be utilized.

PRESENTER(S) & TITLE(S):

Heather Jo Clabaugh, Budget Officer

SUBMITTED BY: 

Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION: Staff seeks approval of the FY 2019 Food and Nutrition Services Operating Budget

BACKGROUND/SUMMARY: The proposed FY 2019 Food and Nutrition Services Operating Budget is $12,944,070. The revenues are $565,855 more than the FY 2018 budgeted revenues of $12,378,215. This proposed budget includes a $.30 increase for the price of a paid school lunch and a $.15 increase for the price of a paid school breakfast.

The recommended expenditures are $12,944,070, which is $565,855 more than the budgeted expenditures for FY 2018 of $12,378,215. Changes from the budgeted FY 2018 expenditures include an increase for the salary resource pool and an increase for purchased food.

The Food and Nutrition Services Fund’s current fund balance is approximately $1.9 million.

PRESENTER(S) & TITLE(S):

Heather Jo Clabaugh, Budget Officer

SUBMITTED BY: 

Leslie Pellegrino, Chief Financial Officer

PURPOSE OF PRESENTATION:  Staff is requesting approval for the following change regarding additional financing to the Lease Purchases Agreement with Signature Public Funding Corp for improvements to the Lincoln A building.  Board approved the original financial agreement on May 23, 2018.  The increase is $741,994, and will greatly improve the instructional space for our SUCCESS students and staff.

BACKGROUND/SUMMARY:  This change represents an increase in the principal and will enable FCPS to complete the Lincoln A improvements this summer.  Upgrades are required to be completed to ensure compliance with the ADA, safety and code requirements. The amount necessary will increase from $14,260,053 to $15,002,047.  FCPS was able to increase the principal amount and terms from 14 years to 15 years, while maintaining our payment amounts within our contractually guaranteed energy savings.  The total cost of the Lincoln A improvements is approximately $1.2M.  

No additional funding for the project is required.  Funding will be from FIM’s savings, guaranteed by Johnson Controls, Inc. and shall be applied to payments commencing in FY 2020.  Savings to be measured and verified by an independent audit company.

PRESENTER(S) & TITLE(S):

Stephen P. Starmer, C.P.M, CSBA, Purchasing Manager

Heather Clabaugh, Budget Officer

SUBMITTED BY: 

Stephen P. Starmer, C.P.M., CSBA, Purchasing Manager

Leslie R. Pellegrino, Chief Financial Officer