Income was higher and expenses were lower in the Pottsgrove School District for the fiscal year ending June 30, giving it a budget surplus of $1.3 million, the district Board of Education officially learned last night (Oct. 14, 2008).
District bank accounts bulged by $300,000 more than anticipated, Business Administrator David Nester said, and Pottsgrove spent about $1 million less than expected. Other budget items might alter the final amount slightly, Nester added, as the district “wraps up” its end-of-fiscal-year audit.
School board members, delighted by the news, also heard Nester’s options on what might be done with the money. They unanimously decided to re-allocate $1 million as savings for future capital improvements, including the possible renovation of Ringing Rocks Elementary School, and they also put away $500,000 to pay for future district employee retirement obligations.
The difference between the $1.5 million in allocations and the $1.3 million surplus requires a transfer from the district’s existing fund balance. That, too, was approved.
One option considered and ultimately declined by board members was to use the surplus to offset district costs in the coming year, which Nester acknowledged could lower property taxes or reduce the amount of a tax increase. The business administrator warned, however, that taxes in years following such a reduction historically jump significantly “to make up the shortfall.”
Collections of earned income taxes and delinquent property taxes through June were “modestly stronger” – by $300,000 – than originally budgeted, Nester explained. In addition, Pottsgrove spent less than it planned on special education and transportation.
The board has not announced any plans or intentions to renovate, upgrade or expand any of Pottsgrove’s facilities. However, a report on the state of the district’s buildings, and its building needs in coming years, was previewed last month by hired consultant Gilbert Architects Inc. of Lancaster. It preliminarily suggests building changes that, if approved, could cost several million dollars.
