Plum School Board members say they will limit any potential tax increase next year while moving forward with a building project and the purchase of electric buses.
The board this week voted unanimously to keep a property tax increase for the 2025-26 school year to within its state-imposed inflation limit of 5.3%. The board also approved a purchase order for electric buses and services for the design phase of an addition and renovations to O’Block Elementary School.
In a presentation to the board on Dec. 3, Ryan Manzer, the district’s chief financial officer, presented a projected budget for the 2025-26 school year showing the district spending about $77.5 million, with revenues exceeding expenses by about $36,000.
Manzer did not disclose what property tax rate was used in the projection. A tax increase, if any, can now be no higher than 5.3%. A proposed final budget will have to be adopted no later than May 31, and the final budget must be adopted by June 30.
The district’s property tax rate is 23.3896 mills, after a 6.2% increase for the $74.3 million 2024-25 budget. That was under the state-imposed inflation limit of 7.1% for the year.
“In the coming months, there will be future budget workshops with much more discussion as we continue to review the projected revenues and expenses for the 25-26 school year,” board Vice President Mark Stropkaj said.
Board President Angela Anderson thanked Manzer for the work he does “to keep us in a position to thoughtfully consider minimal tax increases when necessary” so that the district does not have to exceed its limit through voter approval or exceptions.
Electric buses
The purchase order approved with Highland Electric Fleets allows the district to continue to move forward on the electric buses opportunity, Anderson said.
The $10.675 million purchase order for 25 buses reflects a cost of up to $427,000 per bus, the highest price the district has seen.
“This purchase order allows further research and investigation to occur on which specific buses to purchase. This does not commit the district to purchase buses,” Anderson said. “We still have the opportunity to cancel this order into the next year. The district continues to pursue the most fiscally responsible and safe options for transporting our students.”
The district previously anticipated the buses to cost about $9.6 million, with other costs pushing the total to about $12.8 million.
The additional costs include upgrading electric lines to the district’s garage on Greensburg Road, resurfacing the parking lot and adding charging stations.
The district now has grants and potential tax credits totaling a little more than $7.2 million, Superintendent Rick Walsh said. Anderson noted that amount equals about 10% of the district’s annual budget.
The total includes two recent awards — $423,000 through the Allegheny County Health Department’s clean air program, and $300,000 from state Department of Environmental Protection’s Alternative Fuels Incentive Grant.
“We’ve been very aggressive in seeking alternative revenues to offset costs to our taxpayers and maintain programming that supports our students,” Walsh said.
Building project
The district will pay HDG Architects up to $375,000 for the design development phase for an addition and alterations to O’Block Elementary. That money will come from $10 million the district recently borrowed as part of a plan to borrow $30 million over three years to pay for the work at O’Block and the district’s middle school.
“Work on Plum Middle will begin first,” Anderson said. “But because of the addition to be added onto O’Block Elementary, the O’Block design phase will take longer to complete, so we need to approve it first.”
HDG’s first estimate of the total cost of the work at both schools is about $39.6 million, with $26.95 million of that at O’Block.
In its proposal, HDG said the design team would start work immediately. The design development phase would end in early April with a presentation to the school board in mid-April.
In the coming months, there will be detailed plans and financial reporting as the district moves forward with the projects at both schools, Stropkaj said.
“The administration along with the board continue to be transparent as to how these funds are being spent during the construction phases,” he said. “There will be details monthly for review so if there’s any questions they can be answered.”