Financial Committee

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

Minutes

January 16, 2008

The Financial Sub-committee of the Lisbon/M.S.A.D. No. 75 RPC met during the break-out session of the meeting held at Mt. Ararat Middle School on January 16, 2008. The break-out session convened at 7:00 p.m.

Committee members present were: Elinor “Ellie” Multer, Chair; Martha Poliquin; Roy Letourneau; James Trusiani; 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.

The Sub-committee continued to examine options for local cost-sharing methods for the new RSU. Mr. Lavender prepared a work-up of four cost-sharing methods (see illustrative cost-sharing factors, prepared 1-16-08) including valuation method, pupil count method, 50/50 method, and EPS method. The Sub-committee discussed at great length all four options looking for the most equitable plan for all towns involved. Using the second sheet prepared by Mr. Lavender (estimated additional local shares by town, prepared 1-16-08), the 50/50 method (averaging valuation and pupil count) saving every town money with the exception of Lisbon which would experience in increase.

It was agreed that perhaps a provision to periodically review whichever formula is adopted for the RSU should be included in any recommendation from this Sub-committee. There are too many unknown factors to have any one formula still work years into the future.

Mr. Lavender suggested devising a new formula – for example, instead of a 50/50 method, we should look at a 45/55 split. Mr. Lavender and Ms. Messmer will prepare such a scenario for the next meeting.

Another option which has worked in other districts is a graduated incremental method. As an extreme example, this could mean beginning with 95% for property evaluation and 5% for pupil count the first year, with the percentage going to 90-10 the second year, etc. until a 50-50 balance is achieved. Mr. Bartner also suggested building in a financial cushion to allow for gradual changes. Mr. Lavender informed the group that new EPS numbers are due to be released by the State and that we should recalculate at that point to see what difference the new numbers will generate.

Item #9 on the Reorganization Plan will be first on the agenda the next meeting of the Financial Sub-committee.

The break-out was adjourned at 8:15 p.m. to rejoin the RPC.

Respectfully submitted,

Joanne Reinhart

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