Budget update: Lower Moreland projects $145,000 net change, seeks referendum exception and flags sanitary-line issue at high school
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Summary
The district’s budget officer reported a net negative change of about $145,000, said the district has applied for a $933,000 referendum exception and described a sanitary-line dip discovered at the high school that will require repair work.
The Lower Moreland Township School District chief financial officer provided a budget update to the board on Feb. 25 that outlined revenue and expenditure adjustments, a pending referendum exception application, local development revenue expectations, and a sanitary-line issue identified during high-school project closeout.
Mr. McGuire summarized recent expenditure reductions of about $22,000, said the district had a net change of roughly $145,000 in the budget outlook and noted the Act 1 allowable tax increase is 4%. He said the district has applied for a proposed referendum exception of $933,000 and is awaiting final approval from the state. The presentation included conservative assumptions about interim and transfer taxes tied to local real-estate sales related to the Philmont over-55 development and an upcoming Crescent Fields assessment.
Mr. McGuire said the district has seen property transfers connected to Philmont development and that transfer taxes and assessment increases will affect near-term revenue; he cautioned that interim taxes and final assessed values mean one-time revenues (transfer taxes) can swing from year to year. He said one recent update increased transfer-tax receipts when a fourth Philmont property sold for more than early estimates.
The CFO also reported a sanitation-line issue discovered during township-required video inspection of the high-school sanitary line: the video showed a dip in the pipe, which Mr. McGuire said appears to be roughly 20 feet under a sidewalk and must be addressed. He said the line is currently functional but the district will investigate repairs and possible reimbursement/grant funding; if the cost is under about $100,000 the legislators present suggested it could fit an available water-and-sewer grant.
Mr. McGuire told the board the district can adjust fund-balance assumptions and has identified potential additional savings of roughly $150,000 in other budget lines, including out-of-district tuition savings when placements change. He outlined next steps: continue budget refinement, present a proposed final budget in April, and seek final approval in June.
