Mount Lebanon projects $923,000 surplus after unbudgeted pilot payments and delinquent‑tax collections

Mount Lebanon School District finance staff told the board on June 9 that, after a year of budget adjustments and a freeze on non‑essential expenditures, projected fiscal‑year results show a surplus of about $923,000, reversing earlier deficit projections tied to a $1.1 million state funding shortfall.

Miss Connolly, presenting the treasurer’s report, said the district’s May financial review shows a swing from a prior projected deficit to a projected surplus of $923,000. “Although our real estate revenues have not increased, other revenues have,” Connolly said, and she identified the major contributors: two unbudgeted pilot payments from Asbury Heights and Dorchester apartments totaling $564,997, an increase of about $395,000 in collections of old delinquent taxes attributed to Weiss Burkhardt Kramer’s collections, and higher tuition and facility rental revenues. Connolly also said the IDEA grant came in larger than budgeted: it was budgeted at $720,000 but actual award totaled $936,000, with the second half of payment expected from the AIU in June or July.

Board members and administrators emphasized continued caution: the fiscal year closes in June and some expenses posted over the summer will still affect final audited totals. The district said it had maintained a hiring and purchase freeze for non‑essential items since January 2025 and asked budget managers to report emergent expenses immediately; that discipline, combined with the unexpected revenues, produced the current surplus projection.

Other finance items: The board reviewed routine monthly items including the list of bills for May checks, three tax refunds totaling $25,757.75, budgetary transfers totaling $136,056 for supplies, utilities, boiler repairs and other operating costs, and acceptance of community donations. The board was also asked to approve contracts and bids, including PNC Capital Markets for bond investment banker services (no fee unless a transaction closes), annual dairy and ice cream suppliers (Turner Dairy and Hershey’s), and a multi‑year agreement to purchase PSBA’s comprehensive policy review service (total contract cost $77,200 to be paid over fiscal years 2025–2028).

What comes next: Administrators said board action on many of the items presented (for example, approval of policies, contracts and the graduation list) is scheduled for the board’s next regular meeting on June 16; Connolly said any surprises in the final closeout would be reported to the board immediately. Board members asked that any surplus first be used to rebuild the district’s unassigned fund balance to policy levels.