A 5% property tax increase remains in New Kensington-Arnold School District’s preliminary budget, but it won’t be going any higher.
The school board on Tuesday approved the district’s proposed $40.9 million budget for the 2022-23 school year. It was unchanged from when business Manager Jeff McVey discussed it with the school board in January.
The board did so in lieu of voting on a resolution that it would not raise property taxes by more than its state-imposed inflation limit for the coming school year, which is 5%.
School districts usually do that when they anticipate seeking referendum exceptions from the state to increase property tax rates by more than their individual limits without voter approval. But McVey said New Kensington-Arnold will not apply for any exceptions because it does not qualify for them.
A 5% increase would add 4.57 mills to the district’s property tax rate, raising it from 91.57 mills to 96.14 mills. It would add $67 to the school tax bill of a home assessed at $14,570, which McVey said is the median assessed value in the district.
McVey said the district will go into its 2022-23 financial year beginning July 1 with about $2.7 million in reserves. The district’s budgeted revenue of about $41 million is about $127,500 more than it expects to spend. It will end the year with about $2.9 million in reserves, an increase of about 6.6%, according to McVey.
The budget is available on the district’s website. Copies are also available at the administration office.
The resolution as approved by the school board Tuesday included an incorrect figure for the district’s expenditures. District Solicitor Tony Vigilante said the board will need to hold a special meeting within the next two weeks to “clarify that resolution so there is no confusion.”
The school board will vote on the proposed final budget in May, and take a final vote on the spending plan in June.
