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Palmerton school board begins 2016-17 budget examination

Palmerton Area School Board approved a motion last week that restricts a tax increase for the 2016-2017 school year to not more than 3.2 percent.

The restriction does not indicate whether or not taxes will increase. It just means that taxes cannot exceed that percentage level.Current real estate taxes are 53.808 mills. This was a 1.36-mill increase, or 2.6 percent increase, for the 2015-2016 budget. The 2014-2015 budget had a tax rate of 52.44 mills. The millage rate for the 2014-2015 school budget was a 1-mill increase over 2013-2014.According to the 2015-2016 Proposed Final Public Presentation, the 1.36-mill increase was expected to add another $68 to a homeowner's taxes on a base tax assessment of $50,000.The public presentation showed the school district's primary cost drivers were salaries, health care, operational expenses, proposed funding and the Public School Employees' Retirement System fund. Of these five items, PSERS was the highest at 33.8 percent of the pie, followed by 29.5 percent in proposed funding increases, and salaries at 27.2 percent.All school districts in Pennsylvania are facing a 25.84 percent increase for PSERS. It is a state mandated contribution for the 2015-2016 school fiscal year.For the Palmerton school district, this translates into a 21 percent increase over 2014-2015.Palmerton's public presentation document stated that the PSERS contribution for the school district for 2016-2017 will increase by 15 percent. The increases will level off to a 3 percent increase for the 2017-2018 and 2018-2019 school years.Status of bondsZachary Williard, a senior managing consultant at PFM Group's Harrisburg office, updated the school board on the status of the bonds they had authorized him to purchase in order to finance upcoming construction projects.Williard explained that there are public bonds and private bonds.He petitioned 33 banks and was able to get $9.6 million through a private bond with Zion Bank, based in Salt Lake City, Utah, and a public bond with Boenning and Scattergood Inc., a Philadelphia-based firm specializing in securities, asset management and investment banking.He said he was able to get low interest rates at 2.8 percent for the private bond and 2.32 percent for the public bond. The school board had requested that he get at least a savings of 4 percent, but with these rates he was able to get for them a 10 percent savings or $96,000 annually for 10 years. Payments will drop from $1.6 million to $1.1 million.PersonnelThe school board approved some personnel items.Seven elementary teachers will be providing reading and math instruction in an afterschool program for third grade through sixth grade. The program will run from Dec. 1 to March 31, 2016. The teachers will be paid $30 per hour. The teachers include: Jodi Kocher, Kelly Ruddick, Stacey Olewine, Kathryn McKeon, Pam Andrews, Michelle Davis, Marcy Zelinsky and Lynn Sutton.Also approved were Debra Hauser as an independent contractor for speech therapy at a rate of $70 per hour, and Kristin Anglemyer as a cafeteria worker in the high school for $11.61 per hour.Tyrone Lewis received approval to become a middle school track coach for $2,603.LeeAnn De Angelis, Vicki Kistler and Shaun Midas were approved as substitute teachers and will be paid $90 per day.LCCCThe school board approved Lehigh Carbon Community College's request to be able to pursue an agreement to "purchase, construct or improve land and/or building" to enable the college to move its downtown Allentown and Carbon County sites to different locations in Allentown and Carbon County.Superintendent Scot Engler said LCCC doesn't have specific plans set or locations chosen. If the contributing school districts approve of LCCC's desire to pursue other locations, then a vote of approval allows them to act when sites are found."This is a formality for them," Engler said, adding that he would welcome it if the college would find a location and open in Palmerton.Currently, LCCC has sites in Tamaqua in Schuylkill County and Jim Thorpe in Carbon County, as well as two sites in Allentown and the main campus in Schnecksville.In other matters, the S.S. Palmer Parent/Teacher Organization donated $3,564.48 in books to the S.S. Palmer Elementary School and Parkside Education Center libraries.