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.