Finance committee forwards North Montco budget and routine transfers; reviews revenue outlook and hears public concerns

The North Penn School District Finance Committee on a meeting date not specified approved forwarding the North Montco Technical Career Center budget and routine February budget transfers to the board's next work session and reviewed updated revenue and expenditure projections while introducing interim Chief Financial Officer Chuck Linderman.

The actions clear the way for the full board to consider formal adoption. Chuck Linderman, introduced as the district’s interim chief financial officer, told the committee the North Montco budget “is increasing by about 4.2%,” and that the proposed adoption timeline would be in mid-March with board action possible at the March 20 meeting.

Committee members moved both items to the next work session. Mr. Resch moved and Mr. Casa seconded the motion to forward the North Montco Technical Career Center budget; the motion carried. Mrs. McMurtry moved and Mr. Casa seconded forwarding the routine February budget transfers; that motion also carried.

Nut graf: The meeting combined routine procedural votes with a wider review of the district’s fiscal outlook. Linderman presented preliminary year-end projections that showed several revenue categories running above budgeted levels, and district leaders flagged a recent favorable credit/rating review tied to planned borrowing for a high school project.

Linderman and staff summarized draft projections for this fiscal year: earned income tax collections were described as roughly $900,000 over budget in current estimates, transfer-tax receipts were described as about $500,000 over budget (less than earlier projections), and investment interest income was described as coming in “about $3,000,000 over the budget” as interest rates on investments remained higher than expected. Linderman said projections reflect recent economic changes and that numbers will be refined as the year closes.

Dr. Bauer (identified in the meeting transcript as a speaker reviewing financial items) told the committee the district received a public credit/rating action tied to the planned high school borrowing and said staff would “unpack this more at a future finance meeting” as the district moves closer to issuing debt.

Public comment at the meeting raised concerns about several items. Resident Patrick (Mr.) Patchell asked why the interim CFO’s pay appeared to be $15,000 higher than the prior CFO’s, saying, “why did they get a $15,000 raise over what Mr. Skrocki was getting?” Jason Lanier, a Lansdale resident, questioned projected tax increases and certain district expenditures, saying in part, “that’s not the taxpayers’ responsibility to do that,” while criticizing increases in some programs and services paid from the district budget.

Committee members and administrators responded during the public-comment period and afterward. A district speaker noted that North Montco Technical Career Center costs are apportioned to sending districts by the percentage of students who attend and that the sending districts also share health-care costs proportionally. Committee member Mr. Ash and other administrators referenced the district-operated health clinic’s fiscal performance: the clinic, they said, produced about $1,100,000 in net savings in its first year and is expected to generate roughly another $1,000,000 in the current year, while outside organizations such as the technical center pay a monthly fee (stated in public comment as $3,000 per month) to use clinic services.

Votes at a glance: - Approval of minutes from the Feb. 11 Finance Committee meeting — Motion by Mr. Resch; second by Mr. Casa; outcome: approved. - Forward North Montco Technical Career Center budget to work session — Motion by Mr. Resch; second by Mr. Casa; outcome: approved; adoption scheduled with the full board for a mid-March timeframe. - Forward February budget transfers to next meeting — Motion by Mrs. McMurtry; second by Mr. Casa; outcome: approved.

The finance committee set a special budget-review meeting for Tuesday, March 18 at 6 p.m. (virtual) and noted the next full finance-committee meeting would be Tuesday, April 8 at 6 p.m.

Ending: Committee members said staff will continue refining year-end projections and present additional details, including further information on the district’s borrowing plan for the high school project, at upcoming finance meetings.