Property owners within the Fox Chapel Area School District will see their real estate taxes go up for the third straight year.

School directors voted 7-0 on June 12 to adopt a 2023-24 budget with a 1.5% tax hike and no cuts to programs or services.

Board members Kimberly Andrews and Vanessa Lynch were absent.

The millage rate becomes 20.7352 mills, which equates to a $31 increase in property taxes per $100,000 value.

The tax hike is expected to generate $1,043,949 in additional income.

The district could have raised taxes a maximum of 4.1% under the Act 1 index, a state formula which limits school district real estate tax hikes.

Projected revenues were listed at $114,667,200 and expenditures at $115,373,219, which equates to a $706,019 shortfall.

The gap will be covered by pulling from district’s combined financial reserve of $26.5 million. The school district has reserve funds that it designates as unassigned, assigned, committed and nonspendable.

Capital improvements, pension obligations and increased healthcare costs were among the driving factors for the tax increase.

“I’m very pleased that we were able to keep the tax increase to 1.5% and still fund our capital projects, which are going to be significant over the next three to five years,” said Eric Hamilton, board member and treasurer. “We’ve been able to increase our capital reserves so that we don’t have to take out any bond issues in order to fund those important projects.”

Business manager Kim Pawlishak gave several budget presentations highlighting financial issues facing the district.

Medical premiums were projected to increase 14% with vision and dental to each increase by 3%.

Proposed capital improvements include boiler demolition and upgrades, plus heating, ventilation and air conditioning improvements at the high school; boiler room upgrades and direct digital controls and inspection at Dorseyville Middle School and O’Hara Elementary School; air handling unit and rooftop unit replacements and electrical wire upgrades at Fairview Elementary School and HVAC replacement at Hartwood Elementary School.

The proposed budget also includes the use of $622,324 in covid relief funds. Student meal prices will remain at current levels.

“I think we, especially the administrators, did a lot of planning and work to keep the budget and any (tax) increases at a minimum,” said board President Marybeth Dadd. “The real focus is our capital plan and planning appropriately every year to be able to fund our capital improvements that are very important to us.”

The budget is available for review on the district’s website, fcasd.edu.

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