Carlisle Area SD finance update: $15M bond closes, 3% tax increase in final budget resolution to be voted June 26

The Carlisle Area School District finance committee reported a recently issued general obligation bond and presented a final fiscal‑year 2026 budget resolution that includes a 3% tax millage increase; the board will vote on the resolution at its June 26 meeting.

The nut graf: district officials said bond market demand produced more cash than anticipated, but the draft FY26 budget still shows roughly $1.0 million in expenditures over revenues; part of next year’s new debt expense will be paid from assigned fund balance.

Mike Statler, the district’s business office lead, told the board the district issued a general obligation bond with a principal amount of $14,995,000 and that settlement is scheduled for June 25. “Why did we receive more than the bond amount? Because they purchased on a good day, and they were able to, sell the bonds for more than what they're worth at that point,” Statler said, adding the district expects to receive $15,400,000 in cash on settlement — “over a million dollars that we were not expecting.” He reported the 30‑year yield on the bonds is 4.71%.

Statler said the new annual debt service for fiscal year 2026 is $512,329.17; that payment will be covered from assigned fund balance rather than recurring operational revenue. The draft budget presented to the committee includes a 3% tax increase (Act 1 millage action) and assumes varying levels of state aid: 50% of the governor’s proposed additional basic and special‑education dollars, 90% of additional “ready to learn” adequacy funds, and 100% of proposed CTE funds. Total projected revenue for FY26 is slightly under $117 million; projected expenditures are a little over $118 million, a year‑over‑year increase of about $8.7 million (roughly 7%).

Statler summarized the components of the roughly $1.0 million shortfall: $512,330 of the gap is the new bond payment covered from assigned fund balance, and the remaining approximately $563,000 is the operating budget gap described in prior presentations.

The finance presentation also showed the district’s audited fund balance as of June 30, 2024, at about $35 million and identified assigned reserves for a future elementary program (about $8 million). Board members discussed projected revenue drivers including rising assessed values and earned income tax receipts and noted uncertainty in state aid until final appropriation decisions are made.

On homestead and farmstead relief, the committee reviewed the district’s allocation from the state for FY26. The district’s share was listed as $1,900,000; Statler described how that sum will appear on tax bills as a credit. Under the figures presented, the annual homestead/farmstead credit for next year was calculated at $243.98 per eligible property; Statler noted that the credit reduces the net increase in taxes for eligible properties (for example, on the median assessed value cited in the presentation, the net increase after the credit would be smaller than the headline increase).

On capital spending, the committee reviewed a proposed reallocation inside capital reserves to increase the budget for baseball and softball batting‑cage projects from $120,000 to $180,000 and to cover the difference by transferring savings from a parking‑lot painting project that came in under budget. Facilities staff said the change would add a pavilion to make the cages usable in inclement weather; the district emphasized the request is a reallocation of existing capital reserves and does not increase the total capital‑reserve drawdown. The board will vote on that reallocation at the June 26 meeting.

No final votes were held at the committee meeting. The committee chair said the budget resolution, the homestead/farmstead resolution and the capital reallocation will be brought as individual roll‑call or voice votes at the June 26 board meeting.

Other clarifications from the presentation: Statler said the district’s Moody’s rating remained Aa2 and he credited the district’s reserves, liquidity and tax base for that rating. He also described a $813,000 reimbursement amount tied to prior capital expenditures that will be addressed when bond cash is invested after settlement.

The committee opened the floor for questions about the Act 1 index, homestead/farmstead credits and the rationale for the tax increase; board members asked for context on historic index swings (Statler pointed to COVID‑era effects on wage and inflation metrics) and for assurances about the district’s use of assigned balances.

The board will reconvene on June 26 for the formal adoption votes. The finance committee presentation and the draft resolution were posted on the district’s agenda manager.