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Allegheny Valley School District may reduce tax millage

| Friday, April 19, 2013, 1:46 a.m.

Residents of the Allegheny Valley School District probably will see their school tax millage cut — but not the taxes they will pay.

In reviewing the preliminary budget with the school board Thursday, Business Manager Brad Rau said he anticipates millage will be reduced because of a projected increase in real estate assessments.

Rau said that based on figures provided by Allegheny County, which won't be final until May, the district's total property values will increase by $115.6 million through reassessments.

That would make a mill of taxes worth more than it is now. And that would mean the amount of taxes paid would be higher for residents at the current rate of 23.46 mills.

But the district must by law keep the district's overall assessed value stable, eliminating the possibility of a tax windfall as a result of the reassessment.

As a result, Rau said the district will reduce the tax millage. He said based on the county's numbers, millage would be cut by 3.82 mills to 19.62 mills.

Rau said the budget for the 2013-14 school year will include about 73 percent of the revenue coming from local sources, about 25 percent from the state and less than 2 percent from federal sources.

He said a $90,000 deficit that the district faced last month has been eliminated.

Rau said the main reasons that the gap was closed included an increase in earned-income tax collections and reduced utilities costs.

Earned-income tax collections increased by about $60,000, while the savings from utilities was around $35,000.

The board expects to pass its preliminary budget May 14. Final adoption is scheduled for June 17.

Tom Yerace is a staff writer for Trib Total Media. He can be reached at 724-226-4675 or tyerace@tribweb.com.

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