Penn-Trafford raises property taxes 1.5 mills

Penn-Trafford property owners will pay more in school taxes under a $63.0 million budget that raises the real estate millage by 1.5 mills in the Westmoreland County portion of the district, an increase of less than 2%.

The school board Monday approved increasing taxes from 88.25 mills to 89.75 mills for property owners in Manor, Penn Township, Penn Borough and Trafford, for the 2022-2023 school year, while lowering the taxes for about 17 properties in the Allegheny County portion of Trafford to about 14 mills, from 15.12 mills.

The final budget of $63.0 million was approved by a 7-2 vote, with Toni Ising, Philip Kochsic, Dr. Scott Koscho, Jim Matarazzo, Rich Niemiec, Nick Petrucci and Martin Stovar voting for it, while Dallas Leonard and Bryan Kline opposing it. An earlier motion to raise real estate taxes by two mills was rejected by a 7-2 vote, with only Matarazzo and Petrucci favoring the higher tax hike.

The final budget earmarks the revenue from one mill — about $300,000 — for capital projects and the money generated by half a mill for general operating costs. The board opted to tap into the district’sfund balance by about $650,000 to balance the general budget.

The district anticipates having a $10 million fund balance on July 1, the beginning of the fiscal year.

The compromise was reached after Superintendent Matt Harris asked for guidance on whether the board wanted to cut educational programs or staff, after rejecting the two-mill tax hike that was included in the preliminary budget. Even with the additional money transferred from the fund balance, Brett Lago, business affairs director, said the district will have a fund balance of about 7.5% of the total budget, which is within the state’s recommended range.

Leonard said he preferred the board reduce the tax hike because he believes “there’s room for paring down.” He favored taking more money from the fund balance, but warned that “in the very near future, we’ll have no choice but to raise taxes.”

“We’re getting squeezed pretty hard,” said Leonard, who is president of the board.

Petrucci said part of Penn-Trafford’s difficulty in generating more revenue from local property taxes is that “we have next to zero commercial tax base.” Franklin Regional benefits from commercial development along the Route 22 corridor, while Norwin, Hempfield Area and Greater Latrobe benefit from businesses along the Route 30 corridor.

While Penn-Trafford has benefited from increased residential development that has boosted tax revenue, Leonard pointed out that often results in more students, thus greater costs.