2017-2018 PROPOSED FINAL BUDGET HIGHLIGHTS OF THE 2017-2018 PROPOSED FINAL BUDGET
The 2017-2018 Fox Chapel Area School District proposed final budget calls for budgetary expenditures of $ 97,300,359. The increase in expenditures over the previous year’ s final budget is projected at $ 1,917,356 or two percent. The proposed final millage rate for 2017-2018 is 19.3429 mills. This will be an increase of 0.3607 mills, or a 1.9 percent increase in the millage rate. The allowable increase under Act 1, the Taxpayer Relief Act, for 2017-2018 is 2.5 percent. It is estimated that this increase will generate an additional $ 1.1 million to fund the district. One mill will equal approximately $ 3.4 million.
The School Board approved the 2017-2018 proposed final budget at its regular business meeting May 8, 2017. The Board will discuss the proposed final budget June 5 and June 12 during its meetings. The Board is expected to pass a final 2017-2018 budget at its meeting on June 12. Residents are invited to attend the Board meetings on June 5 in the O’ Hara Elementary School auditorium and June 12 in the high school large group instruction room. Both meetings begin at 7 p. m.
The 2017-2018 proposed final budget reflects the following:
– The overall budget by line item shows a decrease in expected expenditures, however, that is skewed by the increase in salary and benefits. Salary line items are expected to increase 3.6 percent from last year’ s budget. This is because there is no reduction of professional staff anticipated. The prior year had retirements factored into the budget projection.
– Premium rate costs for medical, dental, and vision insurance will each increase by 1.9 percent, and overall coverage costs are projected to increase by 4.2 percent. This is the first year that dental and vision rates have increased since the 2009-2010 and 2010-2011 school years, respectively.
– The school district’ s contribution rate paid to the Public School Employees’ Retirement System( PSERS) will increase from 30.03 percent to 32.57 percent. The school district will be contributing $ 14,762,367 to PSERS in 2017-2018, compared to $ 13,486,962 in 2016-2017 – a 9.46 percent increase in cost to the district. The PSERS trustees determine the contribution rate increase annually. A total of $ 2 million was drawn down from the district’ s PSERS-committed fund balance in 2016-2017, and an additional $ 500,000 is planned to be drawn down in the 2017-2018 school year to cover these increased costs.
– New textbook adoptions in both English Language Arts and science are planned for 2017-2018 which results in approximately an additional $ 900,000 in one-time costs.
– Tuition for charter schools and other outside agencies continue to rise. The estimated increase for these expenditures is $ 173,604 or 7.9 percent.
The 2017-2018 proposed final budget is endorsed by the district’ s Resource Planning Committee, a group of residents with financial and management backgrounds that provides 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 $ 61 million over the next five 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 $ 10 million to cover the anticipated PSERS increases. The district utilized $ 2 million of these funds in 2016-2017 to“ bridge” the gap in funding for PSERS and will continue to use committed fund balance reserves until the tax rates can keep pace and fund these costs. The district plans to utilize $ 500,000 from this same fund in 2017-2018 and each subsequent year to continue to“ bridge” the gap. The district continues to reduce payroll costs through attrition and by implementing new instructional and administrative strategies to make the district more efficient and cost effective.
Taxpayer esTimaTed real esTaTe Tax liabiliTy
The median home in the Fox Chapel Area School District in 2017 is assessed at $ 210,000. The chart below depicts the estimated tax liability based on the school district millage rate of 19.3429 for the 2017 tax year using a home assessed at $ 100,000; $ 210,000( median home); and $ 400,000. The homestead exclusion is calculated in the change in tax liability.
|
|
Median Home |
|
2016 Assessed Value |
$ 100,000.00 |
$ 210,000.00 |
$ 400,000.00 |
2016 Homestead Exclusion($ 9,878.00) |
($ 9,878.00) |
($ 9,878.00) |
2016 Net Assessed Value |
$ 90,122.00 |
$ 200,122.00 |
$ 390,122.00 |
2016 Millage Rate |
18.9822 |
18.9822 |
18.9822 |
2016 Tax Liability |
$ 1,710.71 |
$ 3,798.76 |
$ 7,405.37 |
2017 Assessed Value |
$ 100,000.00 |
$ 210,000.00 |
$ 400,000.00 |
2017 Homestead Exclusion *($ 9,787.00) |
($ 9,787.00) |
($ 9,787.00) |
2017 Net Assessed Value * |
$ 90,213.00 |
$ 200,213.00 |
$ 390,213.00 |
2017 Millage Rate |
19.3429 |
19.3429 |
19.3429 |
2017 Tax Liability * |
$ 1,744.98 |
$ 3,872.70 |
$ 7,547.85 |
Annual Increase |
$ 34.27 |
$ 73.94 |
$ 142.48 |
% Increase |
2.00 % |
1.95 % |
1.92 % |
Monthly Increase |
$ 2.86 |
$ 6.16 |
$ 11.87 |
* This number is based upon the estimated distribution of gaming funds provided by the Pennsylvania Department of Education on May 2, 2017.
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 $ 9,787 for those homeowners in the Fox Chapel Area School District with an approved homestead exclusion.
10 Fox Chapel Area