Haverford OKs new budget with 2.5 percent tax hike

HAVERFORD >> School directors voted unanimously at a recent meeting to adopt a $117.6 million proposed final budget, touting the 2.5 percent tax rate increase it contains as “the lowest increase in many years.”

Slated for final adoption on June 1, the budget would raise rates from 30.2964 to 31.0538 mills, adding an additional million in revenue.

For the average residential property assessment of $165,000 taxes would increase $125.

The 2.5 percent increase complies with this year’s Act 1 index and does not require exceptions.

Last year’s $111.9 million budget required a 2.8 percent tax increase.

On the revenue side, local taxes will provide $95.1 million. State $2.2 sources will contribute $19.8 million, with $1.4 million from federal.

Spending will exceed revenue, requiring $1.1 million from the district’s fund balance to close the gap. The ending fund balance is estimated at $8.4 million, which is 7.2 percent of the budget.

The preliminary budget approved in February was balanced and did not require the draw down.

Changes in the proposed final budget include an anticipated 10 percent medical/prescription premium increase, turf field warranty replacement, costs for DCIU special education services and two new teacher positions.

Other major cost drivers are wages, up $945,000 and a $1.5 million increase for the Public School Employees Retirement Fund System contribution. This reflects an 8.5 percent increase from last year, business manager Rick Henderson said.

School director Phil Hopkins pointed out that despite substantial increases in PSERS and medical costs, “We’ve been able to absorb that increase without cutting programs, decrease the average rate of property tax increases, and build a fund balance. That comes down to fiscal management.”

The budget is available for inspection on the district’s website.