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Perkiomen Valley finance presentation projects 4.27% tax increase before potential use of reserves; board debates how much to use
Summary
District finance staff previewed the 2025‑26 budget showing a 4.27% tax increase projection; administration proposed using portions of unassigned fund balance to lower the tax rate, prompting board discussion about fiscal caution amid economic uncertainty.
District finance staff presented a preliminary 2025–26 budget update April 7 that showed a roughly $3.4 million shortfall and a preliminary tax-rate increase of 4.27 percent before any use of reserves.
Mister Weaver (district business/staff member) and finance staff said the budget includes revised revenue and expenditure line items and a running budget total of roughly $133.0 million in revenues and $137.3 million in expenditures. Weaver said rental‑income gains related to athletics and facility rentals have improved revenue, but overall pressures remain from salaries and benefits.
Weaver presented scenarios for using unassigned fund balance to reduce the tax increase. Using $500,000 of reserves would reduce the projected 4.27% tax increase to about 3.65%; using $250,000 would lower it to about 3.97%; a $0 use leaves the 4.27% projection in place. Weaver said his office’s projection put the district’s projected unassigned fund balance at roughly $7.78 million (about 5.65% of next year’s estimated expenditures) after current projections.
Board members sharply questioned how much of the fund balance to draw down. Dr. Campley expressed concern about economic uncertainty following recent national developments and urged caution; she said: “I’m really concerned about the budget and being fiscally responsible … we’re in a really unknown territory as far as where is the world going financially right now.” Other directors said the board should weigh impacts on taxpayers who are also facing financial strain.
Weaver and the business office said the district is monitoring a range of variables — energy procurement, insurance trends, earned income tax receipts and state funding — and will update projections as March actuals are finalized and as the state budget process clarifies. He said the district intends to use additional monthly projections before finalizing the budget and reiterated that the board will vote on a preliminary budget in May.
No final budget vote occurred at the April 7 meeting. Board members asked for additional detail on fixed versus variable costs and requested the business office present refined scenarios at the preliminary budget action.
