North Pen vote to stay in the index for Act 1 of 2022-23

LANSDALE — The budget situation for North Pen in 2022 is clearer and good news for 2021 as well.

The district school board unanimously voted to stay within the state’s first law indicators next year, discussing the end of the current state on Thursday night.

“The purpose of the resolution is to enable the district to follow normal budgeting procedures and eliminate the more complex, costly and accelerated budget requirements of Act I,” said board member Al Reche. I am.

“This option is only available in school districts that are confident that they will be able to cover next year’s budget without raising the real estate tax rate above the index,” he said.

Since the 2021-22 budget was adopted, discussions on the district’s 2022-23 budget have been underway on the Board’s Finance Committee. By the June Board of DirectorsAnd last week, the Board’s Finance Committee heard the latest forecasts and figures. State law requires a decision by late January whether to seek an exemption above the level of Act 1 set at 3.4 percent between 2022 and 2011. Staff quote A tax increase at that level will generate about $ 6.3 million in new revenue. November 9th Finance Commission voted first Resolution to declare The board did not go beyond Article 1 or seek exceptions, and the motion was on the board-wide agenda on Thursday night.

“The proposed final budget will be submitted to the Board in May and finalized in June. Passing that resolution guarantees residents of the North Penn School District that the index of Act 1 will not exceed 3.4%. Will be, “said Steve Scrocchi, District CFO.

“It facilitates the process. You can eliminate one stage of the process, but you cannot eliminate the information that you plan to provide to the Finance Commission,” he said.

Skrocki told the board that “January’s budget season will be pretty hot,” as there is no need to submit a request to the state for an exception to the first law, and each district department will soon begin a budget presentation. ..

“In February, there will be two monthly Finance Committee meetings for four consecutive months, so the information will not change, just a little more truncation of the process,” he said. ..

The motion of Act 1 was unanimously passed with minimal discussion, and similar motions Audit report For the district’s 2020-21 budget. “There were no concerns about audit results or internal controls,” Roesch summarized in the audit report, and Skrocki provided the final results for the budget year that ended this summer.

“Our revenue was $ 4.6 million above budget revenue and $ 6.1 million below budget, so there was a positive $ 10.7 million fluctuation in the 2020-21 budget year,” Skrocki said. Says.

“As you may remember, In the spring of 2020 we were talking Various economic scenarios: V-shaped, U-shaped, and W-shaped. Looking at the business results for FY2021, I think we saw a strong V-shaped recovery, especially in terms of sales. “

Income tax remained strong from 2020 to 2021, while real estate transfer tax revenues “continue to be a fuss”, while COVID-19 spends well below budget, the chief financial officer told the board. Told.

“As a result, we were able to add $ 3.6 million to the fund’s balance,” he said.

The transfer to the reserve was approved by the Board in August, and Board members would then use some, if not all, of these savings to work on repairs and upgrades to the district’s buildings. We talked. 10-year capital project list..

Another area that affected the district’s budget was Thursday night’s agenda. The board unanimously approved. Settlement agreement We worked with Montgomery Building Associates on the valuations of the three parcels at Montgomery Mall. This will reduce the combined valuation of the three properties from $ 81.5 million to $ 26.3 million and give owners a refund of just under $ 2.7 million.

“It’s the main mall, Macy’s, and JCPenney is all part of this attraction. Real estate owners filed an appeal in 2018, and the change will take effect in 2019, so this appeal has been in effect for the past three years. It’s targeted, “says Skrocki.

Board member Wanda Lewis-Campbell asked how the owner would receive the $ 2.7 million, and Mr. Scrocchi said his district office was just preparing for it.

“It’s important to note that we have a $ 1.6 million escrow. Since the appeal was filed in 2018, we have secured funding for this appeal. Therefore, all We don’t have the money, but we have $ 1.6 million, “he said.

“The last $ 1.1 million we have to come up with this year comes essentially from our cash balance after this has been approved and approved by all entities. To real estate owners by check. It takes 30 days to send money, “says Skrocki.

The North Pen Board of Education will then meet at 6:30 pm. On December 6th, at the District Education Services Center, 401 E. Hancock Street, the Finance Commission will then meet online at 6pm on December 8th. For more information, please visit:

North Pen vote to stay in the index for Act 1 of 2022-23

Source link North Pen vote to stay in the index for Act 1 of 2022-23

Related Articles

Back to top button