Taxes to rise in Brentwood Borough School District

A majority of Brentwood Borough School Board members said this week they would support a millage increase for the 2015-16 school year to keep the district's reserve from fully depleting.

Faced with a dwindling fund balance and at least a $1.1 million deficit in the 2015-16 $21.6 million proposed final budget, board members Monday agreed they must raise the property-tax rate. They differed, however, in how much they thought the millage should be raised. The district's real-estate tax rate is set at 26.8259 mills for 2014-15. One mill generates $395,000.

“I think, clearly, the no-tax-increase (option) is out the window at this point,” board member Gary Topolosy said.

Board members will vote Monday on a proposed final budget. A final budget will be adopted in June.

Business manager Jennifer Pesanka presented an update to board members and nearly 60 teachers in the audience Monday. The board last month approved a curtailment to programs that led to the furlough of eight teachers.

The board next week is expected to vote on an amended early-retirement agreement with the Brentwood Education Association. Retirements will affect furloughs, Superintendent Amy Burch has said.

How much will be saved from the staffing and programing changes is yet to be determined, she said. The district also does not have numbers for teachers salaries next year, as its pact with the Brentwood Education Association ends June 30. Negotiations are under way for a new contract.

State requirements under Act 1 prohibit school districts from raising the property-tax rate higher than a state-issued index, which for Brentwood equals 2.7 percent.

Raising the tax rate to the index would increase it by 0.7242 of a mill.

School officials also applied for and received exceptions from the Pennsylvania Department of Education to raise the millage above the index for retirement contributions and special-education costs. The exceptions allow to the district to raise the tax rate by an additional 0.6406 of a mill. This would total a 1.3648-mill increase, if board members raise the rate to the maximum permitted. That would bring in $296,000 in additional revenue in 2015-16.

“I don't think we have a choice but to raise it to the maximum with exceptions. If we don't, we'll have a bankrupt school district within just 18 months or so,” board member David Schaap said.

Some board members said they only want to see the millage raised to the state-issued index because of the impact on those with a fixed income.

“I was coming into this very strong in saying, ‘No tax increase this year,'” said board secretary Donna Werner, who now would be OK with raising the tax rate only to the index.

If the tax rate is raised to the index, a homeowner with property assessed at $83,300 would pay an additional $60 in 2015-16. If the rate is raised by 1.3648 mills, that same property owner would see a $114 tax increase.

Salaries make up 70 percent of the district's budget, Pesanka said.

The district had $4.3 million in its fund balance as of June 30, 2014, with plans to use $2.2 million this year. That would leave the fund balance with a similar amount to start the 2015-16 school year.

Raising the tax rate by the index still would call for using $1 million from the fund balance in the next school year.