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Board hears budget projection showing $388,000 positive but flags insurance and borough-held escrow
Summary
District finance presenter projected a $388,000 favorable year-end position but warned that insurance proceeds recorded as revenue for the stadium project and borough-held pre-K escrow funds (about $260,000) could change the outcome; legal counsel is involved to resolve the escrow holdback.
During a budget update labeled "part 2," district finance staff told the board the year-end projection currently shows a $388,000 positive position, but cautioned the figure is influenced by insurance proceeds recorded as revenue for the stadium project that have not been expended.
"Right now we're projecting 388,000 to the good, but there's a big caveat — we are showing revenue that we received from the insurance company for the stadium project that we have not expended yet," the presenter said, adding that spending any of those proceeds before June 30 will increase expenditures and reduce the reported surplus.
The presenter also reported a separate funding issue: the district’s pre-K escrow account currently holds roughly $335,336 but the borough is holding an estimated $260,000 pending additional documentation. The district has engaged outside counsel (Saxton and Stump and other firms) and said attorneys are reviewing correspondence and requirements from the borough.
Board members asked for a concise spreadsheet summarizing insurance reimbursements, grant receipts and expenditures related to the stadium project; the presenter agreed to prepare that summary by June. The board was reminded that the projection reflects actuals through March and that remaining months include accruals that can materially change the final position.
