Avon Grove presents 10-year capital plan, projects near-term fund deficits and three tax scenarios

Avon Grove School District staff presented an updated 10-year capital improvements (long-range plan) and a capital project fund budget that projects rolling deficits as the district phases major maintenance and renovation work.

Dennis Carsley (presenting the capital plan) reviewed needs across campuses including new and replacement storage at the high school, athletic upgrades (dugouts, batting cages), pump-station modifications, locker-room partitions and a new early-learning boardroom. Staff said some items were pushed into later years because of current cost pressures. The plan includes classroom and building work at the middle school and Penn London, roof and chiller work at the district office, and finishing work at the new Fred Astingle building.

Staff flagged a pending Department of Community and Economic Development (DCED) grant: a $1,000,000 application for HVAC replacement on the intermediate school campus. The board was told that DCED funds have not been received and that the district must complete additional submissions, with the project having a 2026 deadline.

Finance staff consolidated the long-range plan and safety/security plan into the capital project fund projection. For estimated 2024–25 the presentation showed an operating deficit in the capital fund of just over $4,000,000 and a projected ending fund balance of $3,972,000 (the district reported a 2023–24 ending balance of $8,035,000). For 2025–26 the projection shows a deficit of about $2,800,000 and an ending capital fund balance near $1,100,000, with recovery in later years if projects are pushed out.

The board discussed options for balancing the general fund and capital needs. Finance staff presented three tax-increase scenarios for 2025–26: a 3.0% increase (millage 36.00) that would use $6.5 million of fund balance and leave $1.3 million unassigned; a 2.75% increase (millage 35.91) using $6.6 million of fund balance and leaving $1.48 million unassigned; and a 2.5% increase (millage 35.82) using $6.8 million of fund balance and leaving $1.6 million unassigned. Staff also reported projected increases in health-care costs and recommended planning for higher benefit expenses; the district’s health consultant recommended a 22.67% rate increase for medical/prescription costs based on recent claims experience.

Board members asked for further documentation on grants and revenues and noted historical variances between budgeted and actual revenues in recent years. Staff said they will continue refining the numbers and that a proposed final budget must be approved at the legislative meeting later in April; board members emphasized a desire to sharpen revenue assumptions before choosing a final tax rate.

No formal vote was taken; the presentation was informational and staff asked the board for direction on tax-scenario preference and project prioritization.