Radnor finance committee previews $130.7M preliminary budget, proposes 3.5% tax cap increase

At the Radnor Township School District Finance Committee meeting on Feb. 10, 2026, district finance staff presented a preliminary 2026–27 budget showing roughly $130.7 million in proposed expenditures and a projected deficit of $743,000 if the district implements the full 3.5% Act 1 index tax increase.

Speaker 2, who led the presentation, said, "we have a budget presented with a deficit of $743,000 with a little over a $130,000,000 in revenue and a little over a 130,700,000.0 in expenditures." The draft assumes a full 3.5% tax adjustment under the Act 1 index, which the presenter noted the board previously resolved to adopt as an opt‑out approach to filing with the state.

The presentation emphasized the district's heavy dependence on local property tax revenue — about 84% of total revenues — with state and federal sources making up roughly 16%. Staff said the draft budget assumes a 97% tax collection rate, modest assessed value increases and small adjustments to real estate transfer taxes and interest income to refine revenue estimates.

On the expenditure side, staff said salary and benefits remain the largest cost drivers, and the district anticipates an overall 4.2% increase in total costs, with salaries accounting for about 3.6% of that rise. The presenter also noted a one‑time transfer made in 2024–25 from the general fund into the capital reserve to cover upcoming projects, which contributed to the year‑end fund balance reduction.

Debt service tied to capital projects featured prominently. Staff explained that current debt stands at about $9.3 million and that borrowings related to the Ithan project and planned future issuances could push peak combined debt service to roughly $11.3 million. When asked how much would be attributable to the Ithan project specifically, staff answered "about 3 and a half million." The committee was told debt service will decline beginning around 2035 as earlier borrowings are retired.

Committee members discussed millage scenarios and trade‑offs. Staff provided examples showing that approving a smaller millage increase (for example, 3.0% instead of 3.5%) would increase the deficit and require larger draws on fund balance — staff estimated a $1.2 million draw would be needed under a 3.0% scenario in the illustrative example shown.

Speaker 2 said a more detailed budget packet will be circulated before the March 17 finance meeting, followed by an in‑depth review in March, proposed final review in April, and anticipated final board approval in May, although the state deadline for the final budget is June 30.

The meeting record shows committee members asked clarifying questions about assessed value increases, the composition of revenue sources, and the timing of debt relief. No final board vote on the 2026–27 budget occurred at this committee meeting; staff framed the materials as a draft for further refinement and review.

The next finance committee meeting is scheduled for March 17 at 5:00 p.m.