NORTHFIELD — After a review of four years worth of financial data for the Pioneer Valley Regional School District, officials recommended Thursday that the district return $740,214 to its three member towns, decreasing the overall assessment compared to last fiscal year by 1.45%.

The recommendation, which was supported unanimously by the School Committee, came in light of “substantial fund balances over time” paired with higher-than-expected revenues this fiscal year, according to Director of Finance and Operations Jordan Burns. In February, the committee unanimously approved the $16.82 million budget, a 0.98% decrease from the fiscal year 2023 budget.

The unanimous vote this week will mean an unanticipated mid-year influx of $297,961 to Bernardston, representing a 0.65% assessment increase over last fiscal year instead of the 3.48% increase that was originally expected; $62,474 to Leyden, resulting in a 2.2% assessment increase compared to 4.35%; and $379,779 to Northfield, or a 3.35% assessment decrease compared to a 1.14% decrease, according to Burns.

The committee also voted Thursday to pay off a $198,000 state loan and signaled its commitment to making a $615,000 investment in curriculum expenses and Pioneer Valley Regional School facility and staff compensation.

“It has taken years of righting the ship to get to this welcome juncture in the district’s process of improvement,” said Camie Lamica, who has served as the district’s fiscal overseer since March 2022.

Lamica explained she was hired by the district to review its financial condition “on an ongoing basis.” In addition to being a certified public accountant, she has worked as an auditor for municipalities and school districts across the state and has more than 20 years of experience working as a business administrator for school districts.

“I want to emphasize the process is not complete and I’ll continue working with the district to achieve long-term financial sustainability,” Lamica added. “The district now has the financial clarity, along with the responsible and transparent leadership, to continue to rejuvenate the district.”

Burns said the review of the district’s finances over the last two years ultimately demonstrated the district’s ability to return funds from the excess and deficiency budget to the towns. Excess and deficiency is the balance, whether positive or negative, in a district’s general fund at the end of a fiscal year.

Burns added that the fund, which is often used to help reduce town assessments, is capped at a maximum of 5% of the previous year’s budget. He noted that while the majority of the funds were returned to member towns with Thursday’s vote, “we still have a balance.” Towns should still be able to expect reductions to their assessments in future fiscal years, he said.

“[Refunds aren’t] going to happen every year,” Burns cautioned School Committee members. “This is a several-year process of finding out where we are and where we’re going. It’s a milestone and a place to be celebrated.”

District administrators planned to meet with town officials on Friday to review the return of funds.

“It’s nice to hear some good news,” said School Committee Chair Reina Dastous. “The budget process can be painful and it always feels like things are so tight, so it’s really great to hear our district is in good hands [of people] who are being responsible and are … forward-thinking.”

Reporter Mary Byrne can be reached at mbyrne@recorder.com or 413-930-4429. Twitter: @MaryEByrne.