Penn Hills property owners could see about 1.35% tax hike for next school year

Penn Hills property owners should expect to pay a little more in school real estate taxes.

The school directors voted 7-2 Wednesday night to advertise the district’s preliminary 2021-22 spending plan with a 0.4-mill tax hike, which is an increase of about 1.35%.

It equates to a property owner with a home assessed at $50,000 having $20 added to the $1,504 tax bill, according a presentation by district Business Manager Eileen Navish.

Owners of a property assessed at $75,000 would pay $30 more to the $2,257 real estate taxes, and taxes on a $100,000 home would add $40 to its $3,009 tax bill.

The current real estate tax rate is 29.6965 mills — the highest of school districts in Allegheny County.

Projected revenues and expenses were listed at about $93.3 million.

Budget proposals were posted to the district’s online agenda.

Board members Meryl Thomas and Elizabeth Rosemeyer were in favor of a a 1.48% hike, or 0.5-mill.

Rob Marra, board member and finance committee chairman, supported the slightly higher rate increase but ended up voting with the majority.

“It just seemed a bunch of them were going to go with a lower number,” Marra said. “The difference is insignificant. I’m fine it. It’s a little bit of an increase to build on for future years.”

The two other budget options included no tax raise, or a 2.53% hike of 0.75-mill, the latter of which was recommended by the district’s state-appointed Chief Recovery Officer Dan Matsook.

“Anything under the recommended (tax hike) means the board needs to understand there’s going to be a huge deficit, and you’re going to possibly make some cuts down the road,” Matsook said. “It’s balancing the budget with one-time funds and buying time to hear about charter school law and the governor’s budget.”

The district plans to draw from its estimated $17 million stimulus funds for a boiler replacement, other capital improvements and projects designed to help improve academic performance lost during the pandemic.

“With all of this money that we’re getting with the pandemic relief, we really didn’t need to raise (taxes) to balance the budget for this coming year,” Marra said. “Once this money goes away, then you have to worry about the imbalance of revenues and expenditures.”

Board President Erin Vecchio said no one wanted to raise taxes during the pandemic, but something needed to be done to avoid a possible state takeover.

“The final budget is not until June,” Vecchio said. “I’m thinking if the state gets us more money then (we) may be able to go back and reverse it (to no tax increase).”

The district has been in financial recovery status since January 2019. It has already gone against recovery plan recommendations, causing Matsook to draw up an amendment to the plan.

Amendment postponed

The district is about $165 million in debt largely due to loans for the construction of the high school and elementary school.

School directors unanimously voted to table taking action on a second amendment until next month so they could review Gov. Tom Wolf’s budget in hopes of getting more money.

“They had to either approve or disapprove according to Act 141 (financial recovery law),” Matsook said. “Tabling it, they’re just trying to buy some time to see if they’re getting more money.

“Is that acceptable? Is that the same as disapprove? I don’t know. I’ve never dealt with that before. I’ll report it to (state Department of Education officials) that it’s been tabled for 30 days and see what they say.”

Vecchio said she is not concerned about the state’s response to tabling the plan’s amendment.

“I am more worried about the taxpayers of Penn Hills than Dan Matsook going to the state and telling them we didn’t go with the thing,” Vecchio said. “We have a $5 million surplus right now and it’s a pandemic, and he wants me to tax people up that high. I don’t care.”

The 0.75-mill hike would equate to a $50,000 property having a $37.50 tax bill increase, a $56.25 increase in taxes on a $75,000 property and a $75 tax bill hike for those owning a $100,000 home.

Conor Lamb

In other financial matters, U.S. Rep Conor Lamb stopped by to talk about the federal financial assistance Penn Hills received in the form of covid-19 Elementary and Secondary School Emergency Relief (ESSER) funds.

The district was allocated about $17 million to use within the next three years.

“You deserve this money,” Lamb said. “You guys are engaged in one of the most crucial types of public services we provide. I’m not a teacher (and) not in school everyday, but I would imagine it’s probably never been as tough as it’s going to be in the next year.

“You have kids who have lost family members, whose parents lost jobs, who might have been behind a closed door in their bedroom for a lot of the past year.

“They’re going to have new challenges that kids don’t always have on top of all the usual challenges that kids have. … This is not a school district where kids are born with a silver spoon in their mouth.”

Lamb talked about how the money is designed to help districts improve student performance, mental health and assist with bringing students back into the classroom.

“One of my hopes is that we can stay in touch about how you’re using this federal money in the year ahead,” he said. “How much you’re able to use on the physical structure of the school district versus programming and taking care of the kids and that kind of thing.”

Board members thanked Lamb for his support in getting the district the relief funds.

“It was nice that he showed up,” Marra said. “I wish he would have stayed a little longer.”