Finance committee reports $9.3M favorable result for FY 2024–25; unassigned fund balance to remain below state limit after transfers

At the Board meeting the finance committee summarized preliminary year‑end results for fiscal 2024–25 and recommended several transfers to maintain reserves and support upcoming capital work.

Committee chair Miss Stone said the district saw a favorable variance of approximately $3.4 million in revenue and $5.9 million in expenditures for a combined $9.3 million positive variance. That increase brought the district’s general fund balance to about $37.8 million. Finance staff said part of the balance is committed or restricted; after the planned transfers to the capital reserve fund the unassigned fund balance will be 7.1% of the budget, below Pennsylvania’s maximum threshold for unassigned reserves.

Mr. Tony Rapp explained why a June cash‑basis deficit can convert to a surplus on the audited, modified‑accrual financial statements, citing timing differences for PSERS (pension) reimbursements, earned income receipts and invoices that post after June 30. The administration said several revenue items (state reimbursements and interest income) and lower‑than‑expected expenditures contributed to the surplus.

The committee also noted the Act 1 index for the coming year was set at 3.5 percent (with projections that it may fall to about 3.1 percent the following year), and reiterated that revenue increases above that index require a referendum or approved exceptions.

Why it matters: Fund balance levels affect the district’s credit rating, borrowing costs and ability to fund capital projects. The committee emphasized that maintaining strong reserves improves access to favorable interest rates when borrowing.

What’s next: The committee will present a recommended transfer to the capital reserve fund to the full Board as part of the consent agenda; a joint finance/facilities meeting on Nov. 6 will review capital needs including the Chancellor Center.