Radnor finance committee reports $9 million capital transfer, $25.1 million in capital resources

The Radnor Township School District finance committee on Jan. 13 received a midyear financial update that included a $9,000,000 transfer from the general fund to the capital reserve, a reported $25,100,000 in capital-project resources at the start of 2025–26, and an anticipated $2,500,000 state grant tied to the high-school project.

Mister Pauling, director of business administration, told the committee the district was balancing three fiscal cycles: closing 2024'25, operating in 2025'26 and preparing the 2026'27 budget. He said audited fund numbers used for state reporting are complete and an audit packet is expected for presentation in February.

Pauling said overall revenue finished about 2.9% favorable to budget, helped by interim commercial real-estate tax receipts and stronger-than-budgeted interest earnings. "We had some one-time commercial interim tax receipts which were over what we budgeted," Pauling said, and the district historically budgets conservatively because such receipts can vary year to year.

On expenditures, Pauling reported salaries and benefits ended about 2.2% to budget and other spending categories were about 3% variance. He said the district transferred $9,000,000 to cover capital projects, including high-school and middle-school roofing, HVAC completion and other district projects. "We did transfer $9,000,000 to cover the capital projects," he said.

Pauling described fund balances: the beginning general-fund balance for 2024 was about $35,100,000; end-of-year balances fell roughly $2,000,000 due to transfers and variances, and the district maintains an 8% unassigned fund balance as required by statute. For capital projects, he said the district began 2025'26 with $25,100,000 in combined resources and expects to receive a $2.5 million Department of Community and Economic Development (DCED) grant during the fiscal year upon completion of the high-school project.

On budget planning for 2026'27, Pauling said departments have submitted budgets and staff are finalizing staffing and benefit estimates; the administration plans a first look at the budget next month, targets a proposed approval in April and final approval in May. The board previously passed a resolution to not exceed a 3.5% increase under the Act 1 index and members urged prudence. Chair Lydia Solomon urged the committee to aim well below the 3.5% index given economic uncertainty.

Pauling also noted a decrease in the employer pension contribution rate used in estimates (referred to in the meeting transcript as "PEASERS"). He reported the rate moved from 34% to 33.59%, which he said would yield about $250,000 in employer-side savings if salaries did not increase, while cautioning that salary increases will likely offset much of that benefit.

The administration emphasized more detailed numbers will be provided next month and that staff filed the Annual Financial Report with the state; the audit packet is expected in February.