Board approves budget motions, moves to cap tax increase at Act 1 index (3.5%)
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Summary
After an audit presentation, the board approved multiple finance motions and accepted a recommendation to adopt the Act 1 resolution capping the preliminary tax increase at 3.5%; administration identified a remaining projected shortfall to address.
The Perkiomen Valley board received the district audit and a finance presentation and approved a set of budget measures including recommended uses of reserves and a transfer to strengthen the unassigned fund balance. Business administration recommended adopting the Act 1 resolution and targeting a 3.5% tax increase for budget year 2026-27.
Independent auditors reported an unmodified opinion for the year ended June 30, 2025, and presented fund balance breakout and capital-project activity. CliftonLarsonAllen noted the district's unassigned fund balance was within state guidance but that revenue growth had slowed year over year.
Business Manager Jim Weaver recommended three actions: the use of certain committed reserves, targeted transfers, and a $2,000,000 transfer from capital reserves into unassigned fund balance to increase flexibility going into the 2026-27 budget process. "If we do this as recommended, the unassigned fund balance would move toward nearly 6% of expenditures," Weaver said.
Weaver also presented a preliminary gap calculation: a $5.5 million shortfall would exist absent changes, which would translate to a 6.6% tax increase, but adopting the Act 1 index at 3.5% reduces the projected shortfall to approximately $2.7 million. "I do believe that we will be able to withhold the 3.5% and that that will be fine," Weaver told the board.
The board then moved and approved finance motions on use of reserves, the capital-reserve transfer, use of $700,000 from unassigned fund balance for FY26, the Act 1 index resolution, and related budget items. The administration emphasized ongoing work to close the remaining gap through attrition, program adjustments and projected state actions.
Next steps: administration will refine projections, present staffing impacts and continue negotiations and budget deliberations through the normal May/June budget timeline.
