Proposed budget contains tax increase

Rising pension costs cited

Property owners in the Chartiers Valley School District could see a school tax increase of 0.3081 mills under a proposed $59.8 million budget approved Tuesday night.

Homeowners in Bridgeville, Collier, Heidelberg and Scott with a house assessed at $100,000 would see a $30.81 increase in their annual tax bill.

A vote on the final budget is set for June 9.

The proposed budget would boost the tax rate to 16.5256 mills.

The district is looking at a nearly $1 million budget shortfall, of which about $673,000 would be made up with the tax increase. Projected revenues are $58.83 million and expenses are $59.81 million.

The remaining balance of $306,210 could be made up by the district’s fund balance, which stands at about $4 million.

“These are the best numbers we have so far,” superintendent Brian White said, noting that the projections could change by the time the board votes on the final budget.

“We’ve been very fortunate,” said Nick Morelli, director of finance. “We haven’t had a tax increase in five years.”

Mr. White added that the district also has been burdened by increasing pension costs. Higher contributions to the state’s Public School Employees’ Retirement System is a main reason for the increase in district expenditures, according to district officials.

The state mandates that districts pay 21.4 percent of employee salaries into the retirement system. The amount will increase to 25.4 percent next year, resulting in a projected increase of $813,000 in retirement contributions.

“And it’s not done rising,” Mr. White said. The percentage will continue to inflate in the coming years, reaching 32.23 percent by 2019-20.

Mr. White added the district is “working very hard to find cost-saving measures” and that furloughing teachers or cutting programs are not options at this point.

“This represents our best guesses on April 28,” Mr. White said, adding that he hopes the numbers become solidified in the coming weeks.

He added, “We are in a good position. We can pay all of our bills.”

In other business, the board unanimously approved the $359,220 purchase of four 72-passenger buses from Myers Equipment Corp. of Canfied, Ohio. The payment will be from the capital reserve fund. The new buses will be replacements.