BETHLEHEM, Pa. — Bethlehem Area School District will pay for an investigation of cracks that have developed in the floors and walls at Nitschmann Middle School, which was built in 2017.

It was revealed at a School Board committee meeting Monday that the board on Jan. 26 will vote on a cost-sharing agreement among the project architect, prime contractor and project manager for the investigation.

It will look into the “settlement issue” with the middle school building, which cost $53.1 million.

“Nothing observed or evaluated is of a structural nature that impacts the safety…”

Bethlehem Area School Board Agenda Item

“Nothing observed or evaluated is of a structural nature that impacts the safety of the building, but cracks have developed enough to warrant repairs,” the school board agenda item states.

The investigation would include a laser survey of the building to be conducted three times over the next year. Those findings would be used to develop repair solutions.

The cost of the investigation is $37,500, which would be split and paid equally by BASD, D’Huy Engineering, Breslin Architects and Penn Builders.

Fountain Hill Elementary update

Also Monday, the school board received a presentation from PFM Financial Advisors LLC to review the district’s three-phase financial plan for constructing a new Fountain Hill Elementary School.

The $52.9 million school building is slated to open for the 2027-28 academic year at 1330 Church St., the site of the former Fountain Hill Elementary, which the district demolished.

Last January, BASD borrowed $25 million in bonds for the project, and in February, the district will borrow $20 million more.

In January 2027, the district anticipates borrowing $7.9 million for the Fountain Hill project.

During construction of the project, Fountain Hill students are learning at a temporary facility at the former home of Lehigh Valley Academy on Center Valley Parkway in Hanover Township, Northampton County.

Clean audit report

In other business, the district received a clean financial audit for fiscal year 2025, showing a general fund surplus of $11.7 million.

The Northampton-based accounting firm Gorman & Associates, P.C. conducted the audit and presented its report at Monday’s school board committee meeting.

“There were no findings as far as material weaknesses or significant deficiencies.”

Hank Miller, Certified Public Accountant with Gorman & Associates, P.C.

“There were no findings as far as material weaknesses or significant deficiencies,” Certified Public Accountant Hank Miller said.

As of June 30, 2025, the district had $84.1 million in its general fund balance, which started the fiscal year at $72.4 million.

Of the final general fund balance, $20.1 million was unassigned and $48.5 million was committed for capital projects.