North Penn School District officials Monday night held an open house at Penndale Middle School to put the spotlight on the effort to close a $7,000,000 gap in the budget for next year. The cost cutting measures include putting vendors on notice that they will have to sharpen their pencils if they want to supply the district with bread, milk, baked goods and other food items. District officials say more than $425,000 can be saved by implementing a more agressive bidding process. Other district officials at the Innovation Celebration touted potential savings on employee health insurance, energy use, office expense and classroom printing. But even with their best efforts at cost cutting, officials say the budget approved next month is still likely to include a property tax increase.