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