The New Year’s resolution for Northampton Area School District is no new taxes.

To back that goal, NASD Board of Education voted 8-0, with one board member absent, Dec. 20 to approve a resolution, as recommended by the administration, “indicating the board of school directors will not raise the rate of any tax for the 2022-23 fiscal year by more than its index.”

The Act 1 index mandated by the Pennsylvania Department of Education for NASD is 4.2 percent, which would be the highest percentage the district could raise taxes for the 2022-23 fiscal year without receiving exceptions for certain budget areas. NASD applied to the DEP and received exceptions in previous years but did not use them.

“This is the first time that we’re saying we’re not going above the Act 1 index,” NASD Superintendent of Schools Joseph S. Kovalchik said. “You now don’t have to approve a preliminary budget in January.”

“Our recommendation is that there would be no tax increase for next year,” NASD Business Administrator Matthew Sawarynski said.

The NASD millage rate is 55.7. Average assessment in the district is $58,000, which represents 60 percent of residences.

The first looks at the 2022-23 budget do not include a tax increase, with expenditures of $120,198,795 matched by an identical amount in revenues, which includes $650,000 of the district fund balance. The 2022-23 budget is a $3,805,075, or 3.27-percent, increase from the 2021-22 budget of $116,393,720.

The estimated ending unassigned fund balance would be $8 million, or 6.7 percent, which is above the school board’s targeted 5-percent fund balance.

“The policy in the district is that we will maintain a 5-percent unassigned fund balance,” Sawarynski said.

Kovalchik said the administration will provide budget updates at upcoming school board meetings. The proposed budget is to be approved May 9, 2022, or earlier, and the final budget is set to be approved by June 13, 2022, or earlier.

A copy of the NASD 2022-23 preliminary general fund budget was posted Dec. 21 on the district website.

The budget, so far, includes local revenue of $79,844,764, which is a $3,360,900, or 4.39-percent, increase; state revenue of $34,507,430, a $1,253,571, or 3.77-percent, increase; federal revenue of $5,196,601, a $702,498, or 15.63-percent, increase; and other revenue of $650,000, a $1,511,894, or 69.93-percent, decrease.

The expected expenditure summary includes instruction at $71,967,972, which is a $1,297,132, or 1.84-percent, increase; support services at $35,528,277, a $2,312,086, or a 6.96-percent, increase; noninstructional services at $1,672,422, a $41,492, or 2.54-percent, increase; and a debt service transfer at $11,030,124, a $154,365, or 3.27-percent, increase.

The NASD administration includes $500,000 in increased revenue in the 2022-23 preliminary budget based on new housing projects in the district, including Toll Bros., East Allen Township, 40 residences, with 191 planned; Ryan Homes Estates at Willowbrook, Allen Township, 11 residences; Kay Homes Fields at Willowbrook, Northampton Borough, 0 residences built, 52 approved; Towpath Estate, Allen Township, 40 residences, with 93 planned; Sunny Slope Crossings, East Allen Township, 0 residences built, 81 planned (pending permits); and Townhouses, vicinity CVS, Northampton, 0 residences built, 40 approved.

The Jaindl project at the former seminary in Lehigh Township, with 475 to 500 units planned (possibly age 55-plus), is not included in increased revenue for 2022-23 preliminary budget.

The NASD administration includes $700,000 in increased revenue in the 2022-23 preliminary budget based on new warehouse projects in the district, including three warehouses in negotiations, including 250 Radar Drive, Frank’s Corner and Century Commerce. Negotiations are based on the settlement with Geodis, 951 Willowbrook Road.

No revenue is budgeted for JW Development Warehouses or a warehouse across from Barn House in the 2022-23 budget.

“With all these warehouses, we’re going to gain millions and millions of dollars in revenue,” Kovalchik said.

The NASD administration includes $1,025,000 in increased revenue in reverse appeals settlements in the 2022-23 preliminary budget, whereby the district appealed assessments and higher assessments were determined.

Looking ahead, according to the Dec. 20 presentation, the NASD administration projects reverse appeals settlements will add $1,075,000 in revenue for the fiscal year 2023-24 budget and $2,600,000 of revenue for fiscal 2024-25.

Other 2022-23 revenue updates include an earned income tax increase of $290,000 and a federal funding increase of $700,000 in Elementary and Secondary School Emergency Relief, American Rescue Plan Act and Title funds.

Basic education funding and special education subsidies have no increase. The state funding increase for Social Security and Pennsylvania School Employees Retirement System will be $500,000.

Expenditure assumptions in the 2022-23 preliminary budget include a Bethlehem Area Vocational-Technical School increase of 7.5 percent and Lehigh Career and Technical Institute increase of 3.5 percent for a total increase of $2.6 million; Northampton Community College increase of 3.5 percent, or $900,000; PSERS and Social Security increase of $775,000; cyber charter schools of $5 million, with no state subsidy, for an increase of $300,000; special education costs of $21.6 million, with a state subsidy of $3.3 million; and transportation costs of $6.7 million, including nonpublic schools, $1.9 million, with a state subsidy of $2.9 million, based on a 2.75-percent contract increase, for an increase of $200,000.

Staff additions, including teachers for Northampton Area High School and Northampton Area Middle School math, Lehigh Elementary School first grade, Spanish, reading, special education, NAMS special education, speech and language will be included in the budget.

Looking ahead, NASD has a remaining borrowing capacity of $96.5 million, as of June 30.

The $75 million Seemsville tract project would add $2.6 million of debt service annually. The millage impact would be 0.44 mills annually for five years.

For the 2022-23 budget, $1 million could be assigned from the fund balance. Money would not need to be borrowed until 2023-24.

The need to borrow money could be less, based on additional revenue from new warehouses and housing. The taxpayer impact, on average, would be $120 spanning five years or $24 annually.

The COVID-19 dashboard seven-day totals, Dec. 17-Dec. 23, as of Dec. 23, are: NAHS, 37; NAMS, 14; Borough Elementary Schools, 5; Moore Elementary School, 2; Lehigh Elementary School, 10; George Wolf Elementary School, 5; district administration building, 0.

The year-to-date NASD positive cases are 583.

The school board begins monthly meetings only in January.

The board of education is next scheduled to meet 7 p.m. Jan. 10, 2022, in the NAHS auditorium, 1619 Laubach Ave., Northampton.