EMMAUS, Pa. — Property tax in the East Penn School District would increase more than three-quarters of a mill under a revised budget plan for 2023-24, the district school board was told Monday.
The millage rate would increase 3.92%, or 0.7702 mills — from 19.6766 mills to 20.4468 mills, District Business Administrator Robert Saul told the board.
- East Penn School District revealed drafts for budget revenues and the district calendar for the 2023-24 school year.
- Local property tax would increase 3.92%, to 20.4468 mills
- Budget meetings are set to continue throughout the remainder of the school year.
That increase would be less than the maximum 4.9% increase agreed upon by the board last meeting.
A mill equals $1 of tax for every $1,000 of a property's assessed value. So under the budget, the owner of a property valued at $100,000 for tax purposes would pay $2,044.68 a year in property tax — up $77.02 from $1967.66 this year.
Part of the lower increase is because of district investments are seeing far more interest because of increased interest rates.
"As we were developing the budget, the interest rate was early in the budget development process was 5 basis points, or five one hundredths of a percent," Saul said. "We're now receiving 5% interest on our investments, it is a factor of 100.
"So actually there is such a significant increase in that, that we have well exceeded of our budget projections, and obviously adjusted our budget projection for the next fiscal period based on...the current interest rate environment."
Saul said the planned tax increase would balance the budget.
Local revenue, the largest share of revenue sources (75%) is anticipated to increase 6.11%, or $7,610,099 to $132,136,126, he said.
Current real estate taxes and interim (new construction) real estate taxes are expected to bring in nearly $6 million more than was budgeted for 2022-23, or 1.25%, he said.
"This growth is attributed primarily to the residential and commercial industrial development we have seen throughout the district — and that continues to be ongoing," he said.
State revenue is expected to increase 5.93% whole federal revenue, the smallest contributor to the revenue, is anticipated to increase by 6.16%.
Saul said American Rescue Plan funds the districts has gotten are expected to be fully spent by the end of the current fiscal year.
More budget meetings are scheduled for examination of expenditures and capital plans. The current schedule is:
- Feb. 27: District expenditure overview
- March 13: Presentation of the long-range fiscal and capital plan
- March 27, April 24: Priority presentations
- May 8: Presentation and adoption of the proposed final budget
- May 22: Presentation of budget updates and discussion of final budget
- June 12: Presentation and adoption of the final budget
New school calendar
In other business, the school board took key steps Monday to get the next school year set in motion.
The draft calendar school administration presented featured 183 student days and 190 teacher days. Two snow days are also built into the calendar with up to five flexible instruction days.
Administration noted it was overall similar to prior years and sets the first day of school at Monday, Aug. 28.
Assistant Superintendent Dr. Douglas Povilaitis said that because of increased state requirements for safety and security training, two additional professional development days were designated for staff over the prior year.
The board also approved or renewed contracts for Schoology software at $35,808.60 for the upcoming term and Arthur J. Gallagher Risk Management Services, LLC at $48,000/yr until 2028.
The board is set to vote on the calendar during the March 13 meeting following discussion at the Feb. 27 meeting.
