2018-2019 PROPOSED FINAL BUDGET HIGHLIGHTS OF THE 2018-2019 PROPOSED FINAL BUDGET
The 2018-2019 Fox Chapel Area School District proposed final budget calls for budgetary expenditures of $ 98,713,819 . The increase in expenditures over the 2017-2018 budget is projected at $ 1,907,816 or two percent . The proposed final millage rate for 2018-2019 is 19.5750 mills . This will be an increase of 0.2321 mills , or a 1.2 percent increase in millage rate . The allowable increase under Act 1 , the Taxpayer Relief Act , for 2018-2019 is 2.4 percent . It is estimated that this increase will generate an additional $ 808,000 to fund the district . One mill will equal approximately $ 3.4 million .
The School Board approved the 2018-2019 proposed final budget at its public meeting May 7 , 2018 . The Board will discuss the proposed final budget at its meetings June 4 ( in the O ’ Hara Elementary School auditorium ) and June 11 ( in the high school large group instruction room ). The Board is expected to pass the final 2018-2019 budget at its June 11 meeting and residents are invited to attend all Board meetings which begin at 7 p . m .
10 FOX CHAPEL AREA
The 2018-2019 proposed final budget reflects the following :
– Salary line items are expected to decrease by 1.3 percent from last year ’ s final budget . This is due primarily to the beginning of the early retirement incentive that was offered to the Fox Chapel Educators Association . There are 10 teachers confirmed to retire effective July 1 , 2018 , and three are being replaced . One new elementary position is budgeted due to a potential enrollment increase at Hartwood Elementary . Please note , there are 54 teachers who have accepted the early retirement incentive and will retire over the next two years . Not all of the 54 teachers are scheduled to be replaced . Positions that will be filled will bring a savings to the district due to the lower salary of a newer teacher . Despite this reduction in staff , the district will make every effort to ensure that students continue to receive the highest quality education .
– Premium rate costs for medical insurance will increase by 1.9 percent . There are no premium rate increases for dental or vision insurance for 2018-2019 . Overall costs for medical , dental , and vision insurance are projected to decrease by 2.5 percent compared to the 2017-2018 budget .
– The school district ’ s contribution rate paid to the Public School Employees ’ Retirement System ( PSERS ) will increase from 32.57 percent to 33.43 percent . The school district will be contributing $ 15,281,092 to PSERS in 2018-2019 , compared to $ 14,762,367 in 2017-2018 – a 3.5 percent increase in cost to the district . The PSERS trustees determine the contribution rate increase annually .
– The first scheduled repayment of the district ’ s 2017 general obligation bond will occur in the 2018-2019 school year .
– New computer equipment purchases for the district will cost $ 654,351 which keeps pace with the current plan to replace aging laptops for staff and students in all buildings .
– The district budgeted $ 655,000 in costs related to technology , security cameras , and playground equipment for the new Kerr Elementary School .*
The 2018-2019 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 Major Budgetary Matters All school districts continue to face budget constraints . It is estimated that under the current rate structure proposed for funding the state retirement system ( PSERS ), Fox Chapel Area will pay out nearly $ 55 million over the next five years . These 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 $ 9.5 million to cover the anticipated PSERS increases . The district utilized $ 500,000 of these funds in 2017-2018 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 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 2018 is assessed at $ 212,200 . The chart below depicts the estimated tax liability based on the school district millage rate of 19.5750 for the 2018 tax year using a home assessed at $ 100,000 ; $ 212,200 ( median home ); and $ 400,000 . The homestead exclusion is calculated in the change in tax liability .
|
|
Median Home |
|
2017 Assessed Value |
$ 100,000.00 |
$ 212,200.00 |
$ 400,000.00 |
2017 Homestead Exclusion ($ 9,787.00 ) |
($ 9,787.00 ) |
($ 9,787.00 ) |
2017 Net Assessed Value |
$ 90,213.00 |
$ 202,413.00 |
$ 390,213.00 |
2017 Millage Rate |
19.3429 |
19.3429 |
19.3429 |
2017 Tax Liability |
$ 1,744.98 |
$ 3,915.25 |
$ 7,547.85 |
2018 Assessed Value |
$ 100,000.00 |
$ 212,200.00 |
$ 400,000.00 |
2018 Homestead Exclusion † ($ 9,655.61 ) |
($ 9,655.61 ) |
($ 9,655.61 ) |
2018 Net Assessed Value † |
$ 90,344.39 |
$ 202,544.39 |
$ 390,344.39 |
2018 Millage Rate |
19.5750 |
19.5750 |
19.5750 |
2018 Tax Liability † |
$ 1,768.49 |
$ 3,964.81 |
$ 7,640.99 |
Annual Increase |
$ 23.51 |
$ 49.56 |
$ 93.14 |
% Increase |
1.35 % |
1.27 % |
1.23 % |
Monthly Increase |
$ 1.96 |
$ 4.13 |
$ 7.76 |
†
This number is based upon the estimated distribution of gaming funds provided by the Pennsylvania Department of Education on May 2 , 2018 .
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 $ 9,655.61 for those homeowners in the Fox Chapel Area School District with an approved homestead exclusion .