Conestoga Valley school board to vote in June on financing up to $21M for elementary renovations | Community News

When: Conestoga Valley school board meeting, May 19. Board member Philip Eby was absent.

What happened: The board will vote in June on a $21-million maximum general obligation bond issuance to procure $15 million for the financing of renovations and improvements to the district’s elementary schools.

Details: The $21 million parameter resolution gives the district flexibility and locks in the best interest rate, Scott Kramer, managing director of Raymond James Public Finance of Lancaster, told the board.

Debt service: The district would fund the $15 million bond issuance via a property tax increase of 0.12 mills over four years beginning with the 2025-26 school year, or 0.03 mills per year through 2029-30, Kramer said at the Jan. 13 meeting.

Timing: The board expects to vote on the bond issue at its June 9 or June 16 meeting.

Tax increase: Adele Huntzinger, chief finance and operations officer, is working on a final budget up for vote June 16 that will present options for a 2.5% or a 2.75% tax increase for 2025-26. A 2.5% tax increase would raise the rate by 0.3961 mills, to 16.1561 mills and a 2.75% tax increase would raise the rate by 0.4355 mills, to 16.1955 mills, according to a proposed budget Huntzinger presented May 12.

More: The board approved a proposed final budget May 12 with a 2.5% tax increase with the understanding that it can be changed before final adoption in June. Both the 2.5% and 2.75% tax increases include the additional millage for financing.

Cybercharter students: The board unanimously approved a three-year contract with Thomson Reuters’ West Publishing’s identification confirmation system, which verifies addresses of cybercharter students to prevent paying for students who have moved out of a district. Conestoga Valley will pay $2,111.85 per month, or $25,342.11 annually, with price increases capped at 5% for the second and third years of the contract. The district can end the contract early with proper notification and no penalty, Huntzinger said.

Context: In recommending the software to the board, Superintendent Daniel Hartman spoke of the example of a much smaller district within IU13 that used the system to identify 20 families who had moved out but were still drawing tuition reimbursement from the district.

Doing the math: Pennsylvania districts reimburse cybercharter tuition at $8,000 per student, so the smaller district in IU13, which Hartman would not name, saved $160,000 under his example.

Amusement tax: The board retained, as part of its consent agenda, to retain the district’s amusement tax rate of 2%, a level it has held since the 2011-12 school year. Projected revenue from the tax for 2025-26 is $537,216, which is $188,349 above the maximum the district is allowed to collect, $348,867. Overages are refunded to businesses that submit the tax.

Next meeting: The board will meet again at 7 p.m. Monday, June 9.