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Oley Valley administration presents three millage options as health‑insurance costs push budget gap higher
Summary
Administration told the board the district faces a medical insurance correction of just under 15% that increased a projected gap; it presented three millage options (0.899, 0.999, 1.124 mills) with estimated household impacts and warned of a projected $1.89 million deficit next year without structural changes.
The Oley Valley administration presented a proposed budget on May 6 that includes three millage options to address rising costs after a significant health insurance correction.
"They settled at, just under 15% increase for this year to do a correction," the budget presenter told the committee while reviewing FY25‑26 to FY27 projections and the drivers behind the change.
Administration said the prior year ended with a stated surplus of $452,000 and that changes this year produced a net gap that could be covered under different millage choices: 0.899 (about a 2.8% increase), 0.999 (about 3.1%) or 1.124 (about 3.5%). The presenter estimated the annual cost to a household at the district average assessed value would range roughly from $84 to $123 depending on which option the board adopts.
Board members pressed staff on the health‑insurance assumptions and one‑time accounting changes that showed a $1.3 million line for proceeds from leases tied to a change in accounting of Apple leasing. One board member urged a cautious approach but said long‑term stability likely requires the highest of the three millage options. "For the long term stability of the district ... I think we're really only presented with 1 option, and that is the 1.124 mills increase," the member said.
Administration also reviewed projected multi‑year deficits, estimating a gap of about $1,890,000 next year and noting the year after would be larger if no structural changes are made. Staff recommended considering the maximum option to prepare for future deficits, while several board members called for further scrutiny of expenditures and revenue, including potential changes in charter placements and increased local revenue sources.
The board did not take a final vote at the committee meeting; administration said it would return the proposed budgets for a vote at the regular meeting next week to remain on the advertised budget calendar.
Next steps include additional review of the insurance assumptions, clarification of the $1.3 million lease accounting item, and a final vote on a proposed millage increase at the next meeting.
