Taxes going up in the new Garnet Valley spending plan
CONCORD » The Garnet Valley School Board wrapped up the 2018-19 general fund budget preparation by approving a slightly tweaked version. The total of $107,028,071 shaved off $172,137 from the proposed final plan passed in May. It also represented a reduction in the increase in expenditures from the current year, now at $3.2 million, or 3.1 percent. The real estate tax was only .01 percent less, now at 2.32 percent, but clearing the district’s Act I 2.4 percent index.
The millage rate for Chester Heights and Concord is 32.4876 mills. Bethel’s rate is 32.8590 mills including .3714 mills for participation in Delaware County Community College. In Chester Heights and Concord, each $100,000 of assessed value would incur tax of $3,248.76, a $74.73 increase over the current year. In Bethel, each $100,000 of assessed value would incur tax of $3,285.90, a $75.31 increase.
“Approximately $2,450,000 of the total fund balance is committed for the district’s early retirement incentive program, future liability and future PSERS increases. While the economic environment presents a significant challenge, the district maintains its commitment to provide quality education opportunities for all students.” — Board statement
As the budget had been previously reviewed in its preliminary stages, and with no public attendance, the motion was passed unanimously 7-0 with board members Mary Kay Beirne and Maria Deysher not present.
The state Department of Education announced in May that nearly $1.5 million of property tax from casino slot machine tax revenue would be available to approved homesteads in the form of a tax credit. Those eligible tax payers will receive a $219.10 homestead tax credit on their school tax bills going out on July 1.
The budget does not call for any increase in staff over the current year, but contracted salaries of $49.7 million and all benefits at $31 million constitute nearly 80 percent of the overall budget. The major expenditure challenge continues to be PSERS — the retirement/pension costs which are mandated. The district will have an annual increase of $564,087 which is matched by the state’s reimbursement of the same amount towards the overall increase of $1,128,174. The district’s retirement contribution rate, 33.43 percent in the next budget, is projected to continue increasing (although slightly) until the 2022-23 fiscal year when it will reach 36.32 percent.
While pension reform has often been discussed in the state Legislature, there is no indication of an early solution which might only impact future pension costs rather than address current needs.
“Approximately $2,450,000 of the total fund balance is committed for the district’s early retirement incentive program, future liability and future PSERS increases. While the economic environment presents a significant challenge, the district maintains its commitment to provide quality education opportunities for all students,” the board statement said.
In other business, Superintendent Marc Bertrando made note of gifts approved by the board, saying the district is fortunate to have support of various organizations. Specifically, the Garnet Valley Middle School Home and School Association provided a variety of seating used in the music and science classrooms totaling $19,265.
The board will depart from prior practice and forego a July meeting. The board will hold a work session scheduled for Aug. 6 and the regular meeting Aug. 28, both starting at 7 p.m.