Facilities and Finance Committee Meetings
November 13, 2018
Facilities Committee Meeting
The Facilities Committee includes: Mr Jeff Billig (Chair), Mr John Auerbach, and Mr Herman Engel. Mr Auerbach and Mr Herman attended the meeting. An update on the following projects was provided:
High School (HS)
Completed replacing the back turf fields. Fixed the surrounding fence which now includes cameras to monitor the gate and the fields.
Work is continuing on replacing the stadium turf.
Fred S. Engle Middle School
Replaced doors in the gym and wood shop
Avon Grove Intermediate (AGI)
Working on LED light conversion
Penn London Elementary (PLE)
Finished LED light conversion in 10 classrooms with dimmers
Casework and Countertops replacement in the Art Room completed
Working on replacing 2 doors that go to the street
Finalizing replacement of the boiler system
Finance Committee Meeting
The Finance Committee includes: Mr Herman Engel (Chair), Ms Lynn Weber, and Ms Bonnie Wolff. All attended this meeting. The following items were presented at the meeting:
The results of the final audit report were presented. The overall conclusion was that there was “reasonable assurance that the Avon Grove School District was following good financial principles”. As stated in last month’s update, there was a finding in the audit relating to a $115,000 over payment for transportation reimbursements by Avon Grove School District which was not discussed at the meeting.
The findings of the audit will be presented at the next school board meeting.
Earned Income Tax (EIT) Proposal
The possibility of instituting an EIT as an additional source of revenue was discussed at the meeting.It was estimated that the implementation of a 1% EIT (maximum allowed) with half of that tax staying with the township/borough could produce almost $4 million in additional revenue for the school district.It was recognized that townships/boroughs that already have a 0.75% (London Grove Township) or 1% EIT (Avondale Borough, West Grove Borough) would probably need to replace their loss revenue with some other tax increase.Residents of townships/boroughs with 0% (London Britain Township), 0.5% (Franklin Township, New London Township, Penn Township) or 0.75% EIT (London Grove Township) would see their EIT rise to 1%.
The next steps in the process were not clear but it seems that the Administration will continue to explore the implementation of an EIT.Such a tax would ultimately require voter approval via a referendum in the entire school district.Implementation of an EIT would not require the school board to reduce the current real estate taxes.They would also still be permitted to raise real estate taxes each year to the maximum ACT 1 index. The Superintendent did mention that it was possible if the new tax raised the equivalent of 2 mils of real estate tax revenue there could be a recommendation to return 1 mil in offsetting real estate tax to the residents.There would be nothing in the referendum binding the school board to do so.
Mr Wood recommended that if the school board decides to pursue this option that it talks to the affected townships and boroughs first. He is concerned that many of the wage earners in his township would not be able to afford a tax increase on their earned income.
A table showing the potential revenue was presented ( below)
Avondale and West Grove already have a 1% EIT and would lose half of that revenue to the school district if an AGSD EIT was implemented. They would likely have to increase real estate taxes to offset this.
Similarly London Grove residents would see a 0.25% EIT increase and the township would lose 0.25% of revenue to AGSD.
Residents of Franklin, Penn and New London would see their EIT increase from 0.5% to 1%.
Residents of London Britain would pay a new 1% EIT to AGSD.Since they don’t currently have an EIT data on the value of this tax isn’t readily available so it’s not shown in the table.
*Call to Action
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