Northern Lehigh School District residents will see a 3.5% increase in their property tax rates.

On a 6-3 measure, the school board on Monday adopted the general fund final budget of $38,498,189 for 2023-2024.

It calls for a millage rate of 24.8655 in Lehigh County (per $100 assessed valuation, 100%), and a millage rate of 71.8117 in Northampton County (per $100 assessed valuation, 50%).

Before the vote, Sherri Molitoris, co-director of business affairs/human resources, said the estimated fund balance as of June 30 would end somewhere in the neighborhood of $15 million.

Molitoris said they are using $850,000 out of the district’s assigned fund balance for the balancing of this year’s budget, and that the budget is with 5% built in per the preliminary budget that was approved at last month’s board meeting.

She said expenditures are $38,498,189, while revenues are $37,942,309, which would leave a $555,880 shortfall.

Molitoris said there was a $850,619 budget shortfall, but the district already committed using $294,000 out of health care fund balance for health care increases, and that there was $555,880 that would be used to balance the budget with the fund balance.

She said a 5% increase would be $767,021 in additional tax revenue.

Molitoris said if the board were to go down to a 3.5% increase, that’s $500,978, which would be adding $267,000 back to the $800,000-plus the district was short, meaning it would use over $1 million in fund balance to balance the budget.

The vote

Director Gary Fedorcha suggested a 3.5% increase, which was seconded by Director Robert Kern.

Director Chad Christman said that he would rather see that than a 5% increase.

“I think I would like to see a tax increase of zero, but realistically I don’t think that’s possible,” Christman said. “Three-and-a-half, (3.5%) I think is a decent compromise, I think 5 is way too much for our residents. I don’t like three-and-a-half (3.5%), but it’s a lot better than 5.”

Directors Robin Distler, Gale Husack, Rhonda Frantz, Fedorcha, Kern and Christman were in favor. Directors Donna Kulp, Natalie Snyder and board President Mathias Green were opposed.

Last month, the board, after four tries, settled on a 5% budget increase for the 2023-2024 school year.

However, school directors cautioned at that time residents likely wouldn’t realize that large of a property tax increase.

On a 6-1 measure, the board at that meeting adopted the proposed final budget of $38,461,590 for 2023-2024.