Community Use Of Schools Further Anaylzed

There has been at the Board of Selectmen (BOS) budget hearings and in Waterford Patch regarding the newest “Department” in the Waterford Budget, Community Use of Schools.  Why is this a new department?  Why is it even in the General Government Budget?  Why is the cost what it is?

Before I start, the Community Use of Schools line is a political and accounting device.  It is there to insure that school buildings will be available outside of school hours regardless of the cuts to the Board of Education (BOE) budget made by the Board of Finance (BOF) or the Representative Town Meeting (RTM).  The BOE would be paying its custodians and the electric bill, etc. whether the Community Use of Schools reimbursement existed or not.  Those expenses would be buried inside the BOE budget and no one would be the wiser.

Now, let’s look at  a little history. In 1987, the BOF reduced the proposed  BOE)budget by over $1 million.  Despite an appeal to the  RTM by the BOE, this cut was upheld.  The BOE immediately closed all schools to any afterschool activity as part of the budget adjustments.  Needless to say, residents were not thrilled and in 1988 the RTM passed an ordinance chapter directing the BOE to prepare a budget for community use of schools that would be part of the general government budget to show expenses “…not properly chargeable to the board of education’s education budget.” (WCO 12.16.020).  The BOE was also directed to establish a fee schedule for community use of school facilities and “All fees collected under this provision are to be returned to the general fund of the town.” (WCO 12.16.030).

Administratively, an agreement was worked out by the then Assistant Director of Recreation and Parks, Paul Eccard, and the then Superintendent of Schools, Dr. David Cattanach (currently a member of the RTM), that the BOE would set its overall fee using an agreed upon formula.  Recreation and Parks Department would set the individual fees for users and those fees would return to the general fund like all other fees collected by the Recreation and Parks Department.  From then on, Community Use of Schools was part of the Programs line (52380) of the Recreation and Parks budget.

The agreement was revised in 2003 and a new revised agreement was signed by then First Selectman Paul Eccard and the then Chairman of the BOE, Kathleen McCarty, although the agreement was negotiated by the Superintendent of Schools, Dr. Randy Collins.

In 2007 the Recreation and Parks Department requested that the Community Use of Schools be provided its own line in the Recreation and Parks budget to give it greater visibility. Community Use of Schools became its own line (52391) in the FY2008 budget.  A request to revise the Community Use of Schools Ordinance was also presented to the RTM. 

In October 2010, the RTM, upon the recommendation of the Legislative and Administration Standing Committee, approved a separate Organizational and Object budget for Community Use of Schools commencing FY2012.  The ordinance as noted above remained unchanged.   This means that Community Use of Schools is no longer in the Recreation and Parks Budget for the first time.

In the 2003 agreement, the Recreation and Parks Commission agreed to reimburse the BOE for “…its costs incurred for custodial salaries, overtime and benefits; heating , lighting, and other utilities; maintenance and repairs; instructional, maintenance and custodial supplies and equipment.  Annual reimbursements will be based upon actual costs incurred in the last audited year….” 

The 2003 agreement notes that it does not vary from the 1988 agreement except for the annual consideration for increased/decreased community use of schools.

The agreement then outlines a funding formula that will be used by the BOE in setting the fee for the upcoming fiscal year for the “Community Use of Schools”.

Salaries and benefits

Salary will be for three custodial positions using the average custodial salary rate of the prior fiscal year including social security, healthcare, and life insurance.  Overtime will be reimbursed at a factor equal to the ratio of community use of schools to the total use of schools.

Maintenance and Repair

This figure is determined by using a factor of 7.5% of the last audited year expended level factored up or down annually based on the increased/decreased ratio of community use to total use of schools for the last completed fiscal year.

Maintenance and Custodial Supplies

This figure is determined by using a factor of 7.5% of the last audited year expended level factored up or down annually based on the increased/decreased ratio of community use to total use of schools for the last completed fiscal year.

Utilities – Heat, Energy, Water and Sewer

This figure is determined by using a factor of 7.5% of the last audited year expended level factored up or down annually based on the increased/decreased ratio of community use to total use of schools for the last completed fiscal year.

Instructional Supplies

This figure is a flat $1,000 per year and factored up or down annually based on the increased/decreased ratio of community use to total use of schools for the last completed fiscal year.

Equipment

This figure is a flat $1,000 per year and factored up or down annually based on the increased/decreased ratio of community use to total use of schools for the last completed fiscal year.

The Director of Finance and the School Business Manager will compute the value to be used each fiscal year based on the formula and the hours of community use of schools in the last completed fiscal year provided by Recreation and Parks Department.

How is the formula actually applied to come up with a budget figure.  I will use the calculations for the FY2012 budget that will be reviewed on March 21, 2010 as the example.  The total figure is $283,346.

Salaries and Benefits – Total Salary for 27 Custodians  in BOE budget - $1,000,248.  That makes the salary for three custodians as $111,139.  The total school hours were 8,768  (72%) and Recreation and Parks hours were 3,501 (28%).  BOE Overtime was $19,005 so the 28% Recreation and Parks Share is $5,322.  The FICA calculation for the salaries and overtime is $8,910 (116,461 x .0765).  Life Insurance Cost for three custodians is $288 (8 x 12 x 3) and the Health Insurance Cost is $37,647 (3 x 12,549).  This makes the salaries and benefits portion of the reimbursement - $163,306.

The factor adjustment for the 7.5%  was calculated as follows.  The Percent for FY2010 is 28.  The Percent for FY2009 is 30.  This is a difference of -2. The Percent decrease of the contribution factor is 2/30 or 7%.  The Factor for FY2009 is 7.14 so the new factor is 7.14 x .07 or 7.07.  This is the multiplier for the remaining items in the calculation.

Maintenance - $120,952 x 7.07% equal to $8,552.  Supplies - $223,061 x 7.07% equal to $15,771.  Utilities - $1,351,831 x 7.07% equal to $95,575.  Instructional Supplies – 1,000 x 7.07% equal to $71.  Equipment – 1,000 x 7.07% equal to 71. 

No matter how it is calculated, or what the amount, it is merely a transfer of funds between two town accounts.  The taxpayer is liable only for one amount.  Complaints that the Recreation and Parks Department does ground maintenance without a similar transfer of fund are not relevant.   The only reason Community Use of Schools is separated out is to insure that the Board of Education will not shut down the schools after hours if the BOF or the RTM chose to reduce the BOE budget at any time in the future. 

The other point to note that the amount in the FY2012 budget  is based on FY2010 data .  In FY2012, the Town is really paying for the Community Use of Schools two years earlier, FY2010.

One may question why the formula is so complicated.  It is the result of a negotiation between a representative of the Board of Education (the superintendent of schools) and  a representative of the Recreation and  Parks Commission (former Assistant Director of Recreation and Parks and then First Selectman). The Recreation and Parks Commission may consider renegotiation of the agreement if they believe that the General Government side is providing too much revenue to the Board of Education two years after the fact or if some of the calculation factors need to be changed due to the closing of two elementary schools, and the renovation of the high school.