Financial Committee

of Lisbon/M.S.A.D. No. 75 RPC

Minutes

January 2, 2008

The Financial Sub-committee of the Lisbon/M.S.A.D. No. 75 RPC met during the break-out session of the “rescheduled-due-to-weather” meeting at Lisbon Community School on January 2, 2008. The Sub-committee break-out convened at 7:00 p.m.

Committee members present were: Elinor “Ellie” Multer, Chair; Martha Poliquin; Roy Letourneau; and Joanne Reinhart.

Also present were M.S.A.D. No. 75 Business Manager Ron Lavender and Union 30 Business Manager Catherine Messmer. Jay Bartner, RPC facilitator and moderator, also attended.

Three Lisbon community members also sat in on the meeting.

A rewording of the Sub-committee’s recommendation for a vote by the RPC body later in the evening reads as follows:

“Except for those funds which school units lack the legal authority to do so, trust fund balances and agency, scholarship and enterprise funds be turned over to the new RSU with a stipulation that the current designated beneficiaries and other conditions governing these funds be retained.”

The next question to be addressed was how to share the RSU start-up costs. The business managers had generated a list of possible areas of start-up expenditures including:

Superintendent salary or stipend, Assistant Superintendent salary or stipend, hourly support staff, RSU Board stipends, Special Education management, business management, business function set-up (hourly staff, purchased services such as software, licenses, and training), legal and moving services, advertising, postage for mailings, printing of new stationery and checks, travel and miscellaneous office supplies.

Lisbon estimates an outlay of $81,000 for start-up costs, and together both districts could generate an outlay of $150,000-$200,000 for start-up expenses. Three cost-sharing options for the start-up costs for the new RPC were discussed. The first used the State valuation of property which is presently the one most used by State school districts. The second used pupil count based on an average of the April/October 2006 pupil count. The third method averaged property valuation and pupil count, giving a 50% weight to each.

The Sub-committee’s recommendation for sharing start-up expenses was the third method, utilizing both pupil count and valuation. More figures will follow at the next meeting. The chart used by the Sub-committee for this meeting is attached (Illustrative Cost-sharing Factors). It was noted that, in any case, the total amount is small, as compared to annual school budgets; and the difference in impact on the two school units of using one formula or another will be quite minor.

For interim handling of financial matters, one of the units will likely serve as a fiscal agent to review bills, pay expenses, etc. Each district would contribute its share, and details can be worked out by the Superintendents.

Long-term cost-sharing options for the new RSU will ultimately be a part of the plan to be submitted to referendum, and the Sub-committee will seek to make a recommendation after further financial input from Mr. Lavender and Ms. Messmer. It was noted that pending changes in the consolidation law would increase the number of possible formulas for cost sharing.

The Sub-committee then reviewed, item by item, those sections of the “Reorganization Plan” as they pertain to the Financial Sub-committee:

Item #5: is completed, but legally sections B and C should be mentioned even though there is nothing specifically applicable

Item #6:

A – is accepted

B – “Not yet determined” should be changed to “none.”

C – “Not yet determined” should be changed to “N/A.”

D – “Not yet determined” should be changed to “none.”

E – cross out “not yet determined”

F – cross out “not yet determined”

Item #8: is accepted as is

Item #9: is tabled until the next meeting

Respectfully submitted,

Joanne Reinhart

Scribe

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