Finance committee: forecast shows improved fund balance; committee clears bond parameters, Comply contract and capital awards

The West Chester Area School District property finance committee on March 17 reviewed an updated budget forecast showing a stronger-than-expected year-end fund balance for 2024–25 and took committee-level actions on borrowing authorization, procurement and capital projects.

Finance staff told the committee the district's ending fund balance projection for the current year (2024–25) increased by about $1,034,000 versus previous forecasts; staff said they plan to use that additional balance to help offset pressures in the 2025–26 projection. The forecast review also showed a $300,000 reduction in anticipated teacher-salary spending (driven largely by lower-than-budgeted extra-duty pay), internal reclassification of certain professional personnel costs between salaries and contracted services, and a $200,000 pass-through grant for student-teacher stipends. On revenues, staff reported higher collections for current real-estate taxes and modest increases in earned-income and transfer tax projections.

For the 2025–26 outlook, staff reported an increase in expected charter-school tuition costs after 24 additional students enrolled in charter programs in the month of March; staff said most of those students moved from private schools into cyber charter offerings. Facility rental revenue in the projection increased by $100,000 because of growing field rentals. Staff noted uncertainty about a proposed state charter-school reimbursement line in the governor's budget and said the district removed that reimbursement from the conservative projection.

Borrowing authorization and next steps

The committee voted to approve a parameters resolution that would authorize district finance staff and bond counsel/underwriters to pursue a sale that could include refinancing an existing approximately $25 million issue and/or issuing approximately $30 million in new money. Committee presenters said the parameters resolution allows staff to take the bonds to market and to accept offerings that meet the resolution's pricing parameters; staff also said the district will request a formal roll-call approval by the full board next week before final award, per standard practice.

Comply software contract approved by committee

The committee approved a three-year contract with EduLink (the Comply product) to centralize tracking of employee clearances, mandated trainings and other compliance items. District staff described the Comply purchase as an integration step that will replace multiple manual platforms and reduce manual workload in HR and operations. The three-year price presented to the committee was $77,695, a figure the presenter said includes a 5% multi-year discount and a 5% PA-ETAP client discount; the fee is based on staff headcount and includes implementation and training.

Capital reserve projects awarded

Property staff presented four capital-reserve projects requested for award from the 2025–26 capital reserve account: - G144 (districtwide playground replacement) — work at Fern Hill Elementary: request to award at $108,264; staff asked to apply $8,264 from a 2024–25 account balance to cover the difference. - G145 (districtwide fencing repairs) — allocation $75,000; recommended award to Integris Fence for $74,000.70 to replace fencing at multiple sites including Ruston High and East High. - G146 (districtwide flooring) — budget $125,000; recommended award to Donald Reisinger Inc. for $93,695 for East High floor replacement. - G190 (East High interior painting, second and third floors) — recommended award to Donald Reisinger Inc. for $147,975 (budgeted $243,900).

The committee approved the four awards and a related capital-plan update that delays an Exton modular removal/addition project by one year to allow additional review and redistricting work given nearby development.

Next steps and board action

Committee presenters said several items approved by the committee will be placed on the full board's consent agenda (Comply contract and the capital awards). The bonds parameters resolution will be sent to the full board for a formal roll-call vote next week prior to any final sale.

Ending

Finance staff said the district's millage projection at the time of the committee meeting was about 3.8%, below a referenced 4% index, and that staff will return with an updated preliminary budget that reflects continued adjustments.