At some point though, we do have to realise that we can only keep going so high each year without there still being fallout. I understand that if we don’t do it, a 3% or 4% hike the next year (may happen). “To constantly see the taxes go up each year, I hesitate with that. “I understand the need to raise the taxes in order to meet all the various (expenses),” board member Katie Findley said. Pawlishak said not having a tax increase would result in a larger budget deficit, require a bigger draw from district reserves and may set up a steeper hike in taxes in subsequent years. The proposed budget also includes the use of $622,324 in covid relief funds. These factors were considered when calculating the tax increase. The district projects a 2% increase in state basic education subsidies and expects $2.4 million in earnings on investments, Pawlishak said. Proposed capital improvements include boiler demolition and upgrades, plus heating, ventilation and air conditioning improvements at the high school boiler room upgrades and direct digital controls and inspection at Dorseyville Middle School and O’Hara Elementary School air handling unit and rooftop unit replacements and electrical wire upgrades at Fairview Elementary School and HVAC replacement at Hartwood Elementary School. She said medical premiums were projected to increase 14% with vision and dental to each increase by 3%. Pawlishak explained that capital improvements, pension obligations and increased healthcare costs were among the driving factors for the tax increase and reserve draw. Hamilton said the board is staying within Pennsylvania School Boards Association recommendations regarding fund balances. “As long as we have a fund balance, we try not to burden the taxpayer with the full increased costs the district faces.” “We regularly try to balance the budget through a combination of using fund balances and, where necessary, tax increases,” said Eric Hamilton, board member and treasurer. The district could have raised taxes a maximum of 4.1% under the Act 1 index, a state formula which limits school district real estate tax hikes. The school district has reserve funds that it designates as unassigned, assigned, committed and nonspendable. Pawlishak said the gap, which includes added income from the tax hike, would be filled with $705,860 from its combined financial reserve of $26.5 million. Its formal adoption is scheduled for June 12.īusiness manager Kim Pawlishak gave a budget presentation May 1 at a school board workshop meeting.Įstimated revenues for the district were listed at $114,667,359 and expenses at $115,373,219,with a shortfall of $705,860. The proposed budget is expected to be approved May 8. It would be the district’s third tax hike in three years if approved. The tax hike is expected to generate $1,043,949 in additional income. If approved, the millage rate would rise to 20.7352 mills, which equates to a $31 increase in property taxes per $100,000 value. Fox Chapel Area School District property owners should expect to pay more in real estate taxes next school year.ĭistrict officials have proposed a 1.5% tax hike in the 2023-24 budget.
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