The proposed final budget for the Pleasant Valley School District was presented at the school board workshop meeting Thursday night. It includes a 1% tax increase, which is equivalent to a 0.25 mill increase.

Tammy Smale, the business manager, said, “Just to be clear, I realized in my last presentation sometimes I talk in percentages and the board and the community is thinking millage. They are two different numbers.”

Smale showed in her presentation that a 0.25 mill increase equals $3,707 in net tax on a property assessed at $143,289. This is a total increase of $37 annually.

“If you file the Homestead Farmstead and you qualified for it, that net tax column will drop down to $2,800,” Smale said.

The Homestead and Farmstead Exclusion is a state program to provide some property tax relief. The application can be found on the Pennsylvania Department of Community and Economic Development website or homeowners can contact their county assessment office.

Also available to low-income homeowners is the Property Tax Rebate. Information about the program and the form can be found on the district’s website under Departments, then Business Office.

Smale explained that .25 mills will generate $560,441 for the school district, because 1 mil equals $2,302,647. If the budget is approved, the total millage for the school district will be 26.1355 mills.

“Part of the justification for the 1% tax increase is the capital improvement plan,” Smale said.

About six years ago, the school district evaluated infrastructure projects in all of the district’s schools and the former Polk Elementary School. They decided the high school needed the most work and started with it. A financial plan was put into place “so that the borrowing for the high school renovation would be fully funded before it even started. That plan worked,” Smale said.

“Right now, we have $23 million in the capital reserve account available. In the general fund, there’s a committed amount in the fund balance for future projects. That’s $21.8 million,” she said.

Smale said the middle school heating, ventilation and air conditioning and roof projects are estimated to cost $9 million. There’s another $34 million needed in 2028 for various projects, and $25 million in 2029 among the district’s buildings.

“So that brings us to a deficit of $23 million,” she said.

Smale thinks small tax increases will provide funds that can be saved and accumulate over time, so that the school district doesn’t have to borrow the money.

“This 1% tax increase keeps you on this track,” she said.

Smale said she also plans to apply for grants as they become available to make up for any additional money needed and use investment strategies to generate revenue.

The tax increase could have been higher, but the business office finalized the collective bargaining agreement with the Pleasant Valley Educational Support Professionals’ Association and the transportation contract with First Student Inc. This provided Smale with solid numbers.

Other factors that helped keep the tax increase low is that Smale anticipates the school district will receive similar funding from the state and federal governments as it did this year.

The district should receive a $200,000 increase from the state in basic education funding; a $73,000 increase in special education funding, and will continue to receive the Ready to Learn grant and tax equity funds, Smale said. From the federal government, money from Title I, II, III, IV, ACCESS and IDEA will remain the same.

Smale was also pleased that the school district was able to increase salaries in all employee contracts, collective bargaining agreements and supplemental contract obligations, and handle a 10.7% increase in health care costs, which she thought could be higher.

“The one major thing that has changed is our health insurance costs. Our fall projections were at 13.8%, and then we get a spring projection as well. And that spring projection is now at 10.7%, so that did drop a little,” Smale said. “So that was good for budgeting.”

The new budget also sets aside money for some additional staff including one assistant special education director, one special education teacher, one reading specialist and four paraprofessionals.

The budget presentation can be found on the district website. It is attached to the agenda for the May 7 meeting.

The proposed final budget will be on the agenda for approval for the school board meeting on May 21. The final budget will be voted on for approval on June 30.