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Finance staff flags slowing assessed‑value growth, $1.5M in assessment appeal losses, and $1.126M refunding savings
Summary
Finance staff presented a 2026–27 revenue update showing a roughly $127 million revenue budget, slowing assessed‑value growth with approximately $1.1M already lost to assessment appeals (an additional ~$400k estimated open), and final bond refunding savings of about $1.126M (≈$300k realized this fiscal year). Staff expects to refine projections as the budget process continues.
Finance staff delivered the first of four budget briefings on March 18, updating revenue assumptions and risk factors for the 2026–27 budget.
Key takeaways: total budgeted revenue for 2026–27 is approximately $127 million (about a 2.1% increase year over year). Property taxes remain the primary revenue source (about 71% of total revenue and 88% of local revenue). Staff modeled a 3.5% millage increase assumption in line with the Act 1 index used for the preliminary budget, but noted that assessed‑value changes and ongoing appeals materially affect revenue.
The district has experienced a sharp year in assessment appeals: more than 140 appeals across commercial and residential properties have produced about $1.1 million in confirmed assessment reductions so far, with an estimated additional $400,000 in reductions still open—roughly $1.5–$1.6 million in potential lost property tax revenue. Staff noted that offsetting that amount would require an approximate 1.7% tax increase if the board chose to recover the revenue through millage.
On the positive side, a recent bond refunding (Series 2018/2019) generated final net present‑value savings of about $1,126,000—roughly $400,000 more than prior estimates—with about $300,000 of that savings expected to be realized in the current fiscal year; final settlement was expected March 31.
Other revenue items: earned income tax (EIT) projections follow the collector’s (Burkheimr) estimate and are set conservatively (budgeted at ~$7.95M); transfer taxes and other local items are steady; state and federal revenues remain uncertain given pending state and federal budgets, though staff flagged the governor’s K–12 proposal and significant state one‑time grants as low direct benefit to Upper Dublin in the near term.
Staff emphasized that projections will be updated monthly through June and that the board will consider expenditure detail and possible adjustments to capital transfers as the budget proceeds to a proposed final in May and a final adoption in June.
