East Penn board adopts 2024-25 budget, lowers proposed tax increase to 4.12% and OKs capital reimbursement resolution

The East Penn School District board on Monday adopted the district's final 2024-25 budget and approved a capital project reimbursement resolution, both by unanimous roll-call votes.

Administration told the board the final tax-rate plan lowers the proposed real estate tax increase from 4.99% to 4.12% after updated assessment growth and other revenue adjustments. "That resulted in a lowering of the tax rate increase to 4.12%," administration said during the presentation.

The budget document shows several adjustments from the proposed plan: additional state property tax relief dollars that are distributed to homestead and farmstead owners, revised state reimbursements for Social Security and retirement, updated wage and benefits assumptions, insurance-renewal adjustments, and small departmental changes to maintain existing programs.

As part of the package, the board adopted a fund-balance commitment resolution that administration described as carrying forward approximately $1,200,000 and roughly $2,000,000 earmarked for future technology infrastructure. The board also approved a resolution setting the homestead and farmstead exclusion parameters; administration said the district's allocation increased by $460,000 and "the tax relief for each homestead and farmstead property will increase $31.70" (from $152 to $184 on the tax bill).

The agenda also included authorization of the district's property tax rebate program for 2024-25, maintaining current income eligibility guidance.

Separately, the board approved a capital project reimbursement resolution that administration said is "required by the Internal Revenue Service" if the district wishes to reimburse itself for expenses paid before issuing bond proceeds. Administration explained the resolution preserves flexibility: the district can pay project costs from existing funds and reimburse those expenses later if and when bonds are sold under more favorable market conditions.

All votes on the budget items and the reimbursement resolution were unanimous. The board moved the budget items together and then voted on the capital reimbursement resolution after a brief explanation of its purpose.

The meeting also included routine personnel and business approvals and public recognitions. Administration recognized several retirees and highlighted year-end student activities and graduation ceremonies during the district update.

Next steps: the district will implement the approved budget for the fiscal year and proceed with capital planning; if the board elects to issue bonds in the future, the reimbursement resolution preserves the option to reimburse pre-issuance expenses from bond proceeds.