Divided school board decides to increase taxes
Budget attributed to various ‘issues’
The McKeesport Area School District’s board of directors has passed a 2020-21 preliminary budget that includes a 0.80 mill tax increase.
The board adopted the $71,191,277 preliminary budget by a 7-2 vote at its May 27 meeting. Board members Joe Lopretto, Mindy Sturgess, Tom Filotei, Ivan Hampton, Steven Kondrosky and Diane Elias voted in favor of the preliminary budget. Dave Donoto and James Brown dissented. Jim Poston was absent from the meeting, which was held online.
The millage increase, which amounts to about $80 per every $100,000 of assessed property value, would bring taxes in the district up tp 20.96 mills.
Superintendent Mark Holtzman said the tax increase would be used “for issues beyond our control” such as increases in charter school tuition, debt service increases and increases in retirement contributions.
In other business at the meeting, the board voted unanimously to issue a bond issue for debt service not exceeding $16 million. The bond will include $9 million in new money and also refinance a series of 2015 bonds to get a lower interest rate.
Anthony Ditka, the district’s bond counsel, said only the amount needed will be issued, and it will end up nowhere near the $16 million number.
The refinancing of the 2015 bonds will only be included in the current bond issue if a savings can be achieved. Officials said up to $200,000 could be saved with the refinancing.
The $9 million of new money will be used for completing the district’s ongoing energy savings construction projects that began last year.
The new money will cost the district about $295,000 in increased debt service and pushes the district’s debt service out two more years — to the year 2042.
Additionally, Mr. Holtzman commented on how the district has been impacted by COVID-19.
“We’re waiting to hear from the Department of Education about what our next steps are going to be and how we’re going to bring our students back to school,” Mr. Holtzman said.
“This has been a heck of a time,” he said, adding that the administrative team has been looking at plans for how school will reopen.
“We’re kind of at a standstill until we get specific direction based on the CDC requirements and what the Department of Education is going to expect for schools as we look to the fall,” Mr. Holtzman said.
Graduation is set for June 30 — either with a traditional ceremony or an alternative one depending on guidance from the state. Wednesday, which had been the original graduation date, instead became the date for a senior student procession parade around the high school campus and the surrounding area.