2016-2017 PROPOSED FINAL BUDGET HIGHLIGHTS OF THE 2016-2017 PROPOSED FINAL BUDGET
The 2016-2017 Fox Chapel Area School District proposed final budget calls for budgetary expenditures of $ 94,912,020 . The increase in expenditures over the previous year ’ s final budget is projected at $ 2,173,166 or 2.3 percent . The proposed final millage rate for 2016-2017 is 18.9822 mills . This will be an increase of 0.3539 mills , or a 1.9 percent increase in millage rate . The allowable increase under Act 1 , the Taxpayer Relief Act , for 2016-2017 is 2.4 percent . It is estimated that this increase will generate an additional $ 1.1 million to fund the district . One mill will equal approximately $ 3.3 million .
The School Board approved the 2016-2017 proposed final budget at its regular business meeting May 9 , 2016 . The Board will discuss the proposed final budget June 6 and June 13 during its meetings . The Board is expected to pass a final 2016-2017 budget at its meeting on June 13 . Residents are invited to attend the Board meetings which will be held on June 6 in the O ’ Hara Elementary School auditorium and June 13 in the high school large group instruction room . Both meetings begin at 7 p . m .
The 2016-2017 proposed final budget reflects the following :
— Salary line items are expected to increase 1.8 percent from last year ’ s budget . The district anticipates a reduction of overall professional staff by eight teachers due to retirements . Despite this reduction in staff , programs and services for students will remain at their current levels .
— Premium rate costs for medical insurance will increase by 2.25 percent , yet overall costs are projected to decrease by 0.018 percent . This decrease is the result of fewer employees being covered under district plans and a switch in medical programs being offered to a few employee groups .
— The school district ’ s contribution rate paid to the Public School Employees ’ Retirement System ( PSERS ) will increase from 25.84 percent to 30.04 percent . The school district will be contributing $ 13,474,001 to PSERS in 2016-2017 , compared to $ 9,332,761 in 2015-2016 – a 44.4 percent increase in cost to the district . The PSERS trustees determine the contribution rate increase annually .
— Equipment and computer purchases for the district are projected to cost $ 2,290,053 . This is a 26.3 percent increase . These items will allow the district to keep pace with a one-to-one technology initiative for Dorseyville Middle School students , purchase additional laptops for students at the high school , and to replace aging computers and laptops for staff .
— Transportation costs are increasing due to additional routes and busses needed to support routes for special education placements , as well as A . W . Beattie Career Center scheduling changes .
— Costs for English as a Second Language ( ESL ), special education services for physical therapy , and tuition for charter school and other outside agencies continue to rise . The estimated increase for these expenditures is $ 570,125 or 15 percent .
The 2016-2017 proposed final budget is endorsed by the district ’ s Resource Planning Committee , a group of residents with financial and management backgrounds that provide additional expertise to the School Board on financial matters .
PSERS and Future Challenges The district will continue to face difficult budget years in the near future . It is estimated that under the current rate structure proposed for funding the state retirement system ( PSERS ), the district will pay out nearly $ 71 million over the next seven years . These unprecedented increases – combined with the limitations on increasing tax rates imposed under Act 1 – have necessitated the district to prepare for shortfalls in the budget .
The district currently has committed fund balance reserves of $ 12 million to cover the anticipated PSERS increases . The district will need to utilize $ 2,027,659 of these funds in 2016-2017 to “ bridge ” the gap in funding for PSERS and will continue to use committed fund balance reserves until
Taxpayer esTimaTed real esTaTe Tax liabiliTy |
The median home in the Fox Chapel Area School District in |
2016 is assessed at $ 207,700 . The chart below depicts the |
estimated tax liability based on the school district millage rate |
of 18.9822 for the 2016 tax year using a home assessed at |
$ 100,000 ; $ 207,700 ( median home ); and $ 400,000 . The |
homestead exclusion is calculated in the change in tax liability . |
Median Home |
2015 Assessed Value |
$ 100,000.00 |
$ 207,700.00 |
$ 400,000.00 |
2015 Homestead Exclusion ($ 9,960.00 ) |
($ 9,960.00 ) |
($ 9,960.00 ) |
2015 Net Assessed Value |
$ 90,040.00 |
$ 197,740.00 |
$ 390,040.00 |
2015 Millage Rate |
18.6283 |
18.6283 |
18.6283 |
2015 Tax Liability |
$ 1,677.29 |
$ 3,683.56 |
$ 7,265.78 |
2016 Assessed Value |
$ 100,000.00 |
$ 207,700.00 |
$ 400,000.00 |
2016 Homestead Exclusion * ($ 9,878.00 ) |
($ 9,878.00 ) |
($ 9,878.00 ) |
2016 Net Assessed Value * |
$ 90,122.00 |
$ 197,822.00 |
$ 390,122.00 |
2016 Millage Rate |
18.9822 |
18.9822 |
18.9822 |
2016 Tax Liability * |
$ 1,710.71 |
$ 3,755.10 |
$ 7,405.37 |
Annual Increase |
$ 33.42 |
$ 71.54 |
$ 139.59 |
% Increase |
1.99 % |
1.94 % |
1.92 % |
Monthly Increase |
$ 2.79 |
$ 5.96 |
$ 11.63 |
* This number is based upon the estimated distribution of gaming funds provided by the Pennsylvania Department of Education on May 9 , 2016 .
1 .) These amounts can be reduced by two percent if paid in full during the discount period .
2 .) Senior citizens may qualify for a property tax rebate program available through the state .
3 .) The market value / assessed value will be reduced by $ 9,878 for those homeowners in the Fox Chapel Area School District with an approved homestead exclusion .
10 Fox Chapel Area