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District to dip into reserve fund

By Patty Yauger 3 min read

CONNELLSVILLE – A dwindling fund balance prompted the Connellsville Area School District Wednesday to seek a reserve source of funding to meet financial obligations. The board of directors approved a contract with First National Bank of Irwin for a $3.5 million tax and revenue anticipation note to help defray operational expenses over the course of the 2006-07 school year, if necessary.

“Hopefully, we won’t need it,” said Eugene Cunningham, district business manager. “But, if we do, it will be there.”

The interest rate for the one-year loan is 3.98 percent, according to documentation provided by Cunningham to the board. In addition to repaying the face value of the loan, an additional $128,852 in interest costs will be added to the figure.

Cunningham said although the reserve district balance stands at $2.7 million, it is not a sufficient amount should an unexpected expense or the delays in the receipt of state or federal funding occur.

“Two pay periods would wipe (the reserve account) out,” he said.

The bi-weekly payroll for the district is approximately $1.2 million.

A cash flow analysis for the coming year, said Cunningham, indicates there will be several months when the district will be operating at a deficit figure, with the most critical financial shortfall occurring in May 2007.

“It would be nice if we could keep (the loan amount) in the bank for the entire year, and only make minor withdrawals that are returned immediately,” he said. “Unfortunately, I don’t see that being the case.”

In 2003, the district secured a short-term tax and revenue anticipation loan when the state failed to pass its budget and the district found itself depleting the then-$5 million reserve account to cover operational costs.

Cunningham said that it has been nearly a decade since the district sought to secure a long-term operational loan.

In other business, the board agreed to recall all furloughed staff and hired six teachers to fill positions vacated by retiring personnel and hired a mathematics teacher to fill a newly created position.

Those hired included Ashley Brothers, Kelly McLaughlin and Erin Omatick for mathematic teaching positions; Amy Thurston, Spanish teacher; Justin Guess, gifted teacher; Ben Haines, music teacher and Stephen Wiltrout, special education teacher.

Bill Wilson, director of elementary education, said approximately 15 positions remain to be filled by the district before the start of school.

Turning to other matters, the board also conducted the following business:

– Hired Lori Grinko and Melissa King as senior high school cheerleading coaches.

– Approved the submission of the Carl Perkins Federal Funds vocation education application in the amount of $141,076.

– Agreed to contract with Schneider’s Dairy to supply dairy products to the senior high school and Junior High West and Dunbar Township, South Side and Zachariah Connell elementary schools and Fike’s Dairy to supply similar products to Junior High East and Dunbar Borough, Bullskin Township, Connellsville Township, C.N. Pritts and Springfield Township elementary schools.

– Retained dental examiners Dr. Dale Cadwallader, Dr. Joseph Chomiak, Dr. Richard Grimaldi, Dr. Frank Jacobyansky, Dr. Gerry Perez and Dr. Jim Young for student examinations for the upcoming school year at a cost of 85 cents per examination.

– Approved Frontline Cheer Camp to conduct cheerleading camp at the senior high school at an approximate cost of $55 per participant with 30 students to take part in the program. The cost is to be shared by the CAHS Cheerleading Parents’ Association.

– Scheduled a transportation committee meeting for Aug. 1 at 1 p.m. at the Crawford administration building.

– Named Joyce Tremba as Junior High West newspaper adviser.

– Rescheduled its next meeting for Aug. 14 and 16.

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