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Delaware Valley SD staff outline higher 2025-26 transportation, energy and facilities costs
Summary
District staff told the board the transportation budget for 2025-26 increases modestly driven by a 2.9% state-mandated contractor adjustment and higher fuel, energy and insurance costs; facilities costs also rise largely because of higher energy and insurance premiums.
District staff on Tuesday presented the transportation and facilities portions of the Delaware Valley School District (DVSD) 2025-26 proposed budget, saying the transportation bottom line is $2,938,000 — an increase of $88,694 from the prior year — and that energy and insurance cost increases account for most of the facilities variance.
The presentation matters because transportation and building operations together represent a large recurring cost for the district; rising fuel, electricity and insurance costs could affect the general fund and require one-time offsets or shifts to capital funds.
Staff said the transportation budget reflects a state-mandated 2.9% adjustment to contracted home-to-school services; that adjustment adds about $66,115 to contractor costs. On the revenue side, staff said the district recovers roughly 60% of the 2.9% adjustment from the state for contracted routes. Fuel and diesel purchases also increased: staff described a pattern in which the district buys fuel in some years and not others depending on starting tank levels, and noted roughly 8,000 gallons’ worth of diesel/gasoline purchases account for much of the year-over-year variance. Staff reported having locked diesel fuel at about $2.17 per gallon for the coming year.
At the facilities level, staff reported a $166,775 increase (about 5.6% by their accounting) and pointed to two categories as the primary drivers: energy and insurance. Electricity costs alone were called out as up by roughly $184,000; staff attributed the jump to market-wide rate increases and singled out several regional utilities that are raising rates. Insurance premiums were described as up by about $42,561, with staff citing recent storm losses, fires and floods as contributing factors.
Staff also described smaller line-item shifts: parts and supplies increases offsetting equipment repair decreases, technology maintenance and copy-lease decreases, and modest changes to custodial and rental expense lines. The district reported a fleet and facilities inventory of nine major buildings on four campuses, 38 licensed maintenance vehicles, and roughly a dozen field-trip vehicles and multiple athletic fields to maintain.
Board members asked whether large capital items could be moved to the capital fund rather than the general fund; staff said they attempt to move major items to CapEx when the item has a multiyear useful life and cited recent HVAC work moved to capital. Insurance rates are estimates until quotes are finalized closer to June. Staff confirmed they will continue to seek one-time funding options to smooth nonrecurring costs and said some equipment purchases could be shifted to capital if the board chooses.
The board did not take a formal vote on the budget at the session; staff said salaries and benefits will be discussed at a May 8 work session and that final approvals will be scheduled in later meetings.
