It took this long for the media to touch this story

Mt. Lebanon to start over with capital campaign fundraiser

"When the campaign started in 2012, the original goal was to raise $6 million." WRONG

The original goal was $30 million.

The feasibility study was in 2012.

Pursuant Ketchum was hired as counsel for the capital campaign in March 2013.

Alyssa DeLuca was hired in August 2013 as Capital Campaign Director.

"Riemer said the goal of the district-wide fundraising effort was to 'provide funding for other innovative programs without imposing additional tax burden onto our community.'” SORT OF. 

The original goal was to avoid a second bond issue.

"While the campaign wasn’t a success, Riemer said more than 250 donors have contributed to projects like Matt’s Maker Spaces, STEAM initiatives and the athletics and fine arts programs." UH, YEAH...SORT OF.

Yes, there were more than 250 donors, but not one dime was raised due to the high administrative costs. Almost $1,000,000 from the General Fund was used as "seed money" or "loan" or "investment," all words used at various times by soon-to-retire Director of Business Janice Klein.

“I too believe strongly that it is in the best interest of the district to recognize the achievements and the people in the past but move it forward,” board member Larry Lebowitz said. “I look forward to the presentation where we’re going to learn about the ideas for the reset with the idea being that we will then decide how to answer a lot of these questions (we have).”

What board member Larry Lebowitz really means is that he is really excited for the opportunity to come up with answers for this failed initiative.

A year ago, Nick Meduho and I were working hard to expose this, but the newspapers never said a word. Nick, I wish you were here. I bet you are smiling down at us. Miss you, Buddy.

For the record, it WAS $923,530.02. UPDATED 10/20/17

The treasurer's report showing the transfer of $923,530.02 from the General Fund has been obtained through a Right To Know. The May 31, 2013 Treasurer's Report is available here.

Larry Lebowitz made no mention of any funds being transferred in his May 20, 2013 Revenue Generation report.

Revenue Generation – Mr. Lebowitz reported that candidates for the campaign manager position will be interviewed this week. A candidate will be presented to the Board for final approval in June.

Larry Lebowitz made no mention of any funds transferred on May 31, 2013 in his June 17, 2013 Revenue Generation report.

Revenue Generation – Mr. Lebowitz reported that the search for a capital campaign manager continues.

At that same June 17, 2013 meeting,

It was moved by Lebowitz and seconded by Birks that the Board approves, ratifies and accepts the following financial reports: (Copies of official minutes.)
a. Treasurer’s Report dated May 31, 2013,

Approved by Birks, Cappucci, Cooper, Goldman, Kubit, Lebowitz, Ostergaard, Posti, and Remely.

Vote at the 26:25 time stamp here.  Or on my Lebo Citizens website June 17, 2013 School Board Business Meeting

During comments from residents,

Commented that there is lack of trust of the Board from the community; Board is out of touch with the community

Questioned what happened to the budget report

At the June 10, 2013 Discussion Meeting, Jan Klein explains the transfer of funds to be paid back in full to the General Fund here. Or on my Lebo Citizens website June 10, 2013 School Board Discussion Meeting No dollar amount was ever mentioned.

Update October 20, 2017 10:48 PM Mt. Lebanon schools fund to pay for mural, maker spaces, student group

Since Mary Birks refused to answer Nick Meduho's questions, he wrote to the school board's Capital Campaign liaison, Dr. Stephen Strotmeyer, looking to get some answers about the Capital Campaign.

From: Stephen Strotmeyer [mailto:sstrotmeyer@mtlsd.net]

Sent: Thursday, October 19, 2017 8:50 AM 

To: Nicholas Meduho

Subject: Re: cc questions 

Mr. Meduho, 

My sincere apologies that the information you (and I) have requested is not being updated to the Century of Excellence reports online. My best estimates from the limited information we have been provided from the Campaign would be that after the disbursements the past 2 months was that the General Fund account balance was $418,000 minus $26,750 disbursed in Sept and another $98,800 disbursed this past Monday. So ballpark is $292,000. In this quarter, revenue was $33,320 and fundraising expenditures $27,352, plus the $35,000 disbursed. So that's a loss of $30,000. I hope this helps answer some of your questions. Thank you for your questions and concerns.

Cordially, 

Stephen 

*******

In an email to me, Nick makes some excellent points. 

So what happens when the $292,000 runs out…then what?
Who pays the bills/administrative fees then?

*******

My guess is that the school board will just take from the General Fund again.

                                                                                                      - Elaine

Either this is what we already knew, or it doesn't make sense

Not sure how I feel about the latest RTK which was denied.

We know there was never a vote, but not for the reason given. We playing semantics again.

Did Jan Klein "invest" illegally?

Brief rest over.

Authorized Types of Investments for Pennsylvania School Districts:

Section 440.1(c) of the School Code authorizes the types of investments school districts may have:

• United States Treasury bills.
• Short-term obligations of the United States Government or its agencies or instrumentalities.
  Short-term obligations usually refer to investments of less than 13 months.
• Deposits in savings accounts or time deposits or share accounts of institutions insured by The Federal Deposit Insurance Corporation (FDIC), or The Federal Savings and Loan Insurance Corporation, or The National Credit Union Share Insurance Fund to the extent that such accounts are so insured, and for any amounts above maximum, provided that approved collateral as provided by law therefore shall be pledged by the depository.
• Obligations of the United States of America or any of its agencies or instrumentalities backed by the full faith and credit of the United States of America, the Commonwealth of Pennsylvania or any of its agencies or instrumentalities. Full faith and credit means the obligation is backed by the government’s ability to levy taxes to repay debt. These investments include any bonds issued by the Commonwealth of Pennsylvania or any municipality or school district carrying the backing of the taxation powers of the governmental unit issuing the debt. Some investments of the federal government do not have full faith and credit backing. Fannie-Mae (FNMA) and Freddy-Mach (FNMC) bonds do not. Ginnie-Mae (GNMA) bonds do have full faith and credit backing.
   • Shares of an investment company registered under the Investment Company Act of 1940 whose shares are registered under the Securities Act of 1933 provided that the following are met:
  o Only investments of that company are in the authorized investments for school district funds listed in the categories above, and repurchase agreements fully collateralized by such investments.

  o The investment company is managed so as to maintain its shares as a constant net asset value in accordance with 17 CFR 270 2a-7 (relating to money market funds).

  o The investment company is rated in the highest category by a nationally recognized rating agency.

  This classification includes pooled investments such as the Pennsylvania School District Liquid Asset Fund, Pennsylvania Local Government Investment Trust and the Pennsylvania State Treasurer’s Invest Program.

  Any purchase or sale of investments shall be made by the treasurer of the school district on a resolution adopted by the board of school directors.

  
  

  
  http://www.education.pa.gov/Documents/Teachers-Administrators/School%20Finances/Comptrollers%20Office/Manual%20of%20Accounting.pdf