Fox Chapel area property owners should expect to see a 2.3% hike in real estate taxes

Fox Chapel area property owners should expect to see a 2.3% hike in real estate taxes as part of the next school year’s budget.

The school board unanimously voted May 5 to pass its 2025-26 proposed spending plan with a tax hike and an estimated $2.4 million shortfall that will be covered by reserve funds.

The spending also includes $1.5 million earmarked for unexpected costs such as emergency repairs.

The district plans to raise its millage rate from 21.5127 mills to 22.0076 mills, which is a 0.4949-mill bump.

The proposed tax hike is expected to generate about $1.7 million in revenue.

It is less than the 4% hike allowed by the Act 1 index, a state formula based on the inflation rate that limits property tax hikes without requiring voters’ approval.

One mill generates about $3.7 million in revenue.

The tax hike for property owners equates to about $50 more in real estate taxes per $100,000 assessed value.

Some property owners who qualify for the homestead/farmstead exclusion could see their tax bills decrease by about $326, according to district reports.

Projected revenue was listed at about $120.7 million and expenses at $123.1 million.

Income includes about $94.5 million from local sources, $25.1 million from state sources and $1.03 million from federal sources.

Spending includes about $72.8 million for instruction, including regular and special education programs, $35.7 million for support services, $3.33 million for student activities and community services, $1.96 million for facilities acquisition, construction and improvement services, and $9.31 million for other expenditures such as debt service and interfund transfers.

The district will still have more than $12 million in reserves after covering the budget shortfall.

Budgetary figures were as of May 2.

Both revenues and expenses increased compared to the figures presented at the April 14 committee of the whole meeting.

District Business Manager Kimberly Pawlishak said the changes reflect expected funds from the tax increase as well as state property tax relief allocations and personnel adjustments.

“Changes can be made between the approval of the proposed final budget and the adoption of the final budget (next month),” Pawlishak told the board on May 5.

“There are still some variables that are outstanding that may affect those final budget figures, including adjustments to the current year’s estimated actuals, potential state grants, as well as any state or federal appropriation changes.”

Facility upgrades in the budget include water/sewer line repairs, HVAC upgrades, building safety upgrades and increased insurance premiums.

The district projects a 5.7% increase in medical coverage premiums, 3% hike for dental coverage and a 3% increase for vision coverage.

District documents also show assessment values decreased due to Allegheny County assessment appeals, resulting in a projected $250,000 real estate revenue decrease.

No program cuts were announced during the May 5 budget presentation.

Eric Hamilton, board member and treasurer, indicated there would have been “substantial program cuts” without bond refinancing and the currently proposed and previous tax increases.

The district raised taxes 3.75% as part of this school year’s budget.

“Every year it comes up,” Hamilton said about the question. “‘Why are you raising taxes?’ If you don’t do it, every year you would eventually accumulate those deficits relative to what it costs to run the district.“

Board member Vanessa Lynch, who was one of three school directors who voted against a tax hike last year, said she believes all options were exhausted during the 2025-26 budget process.

She also cited efforts over the past six years to “slow the growth” of personnel contracts.

“I can say with confidence that we have restructured every single one of our contracts,” Lynch said. “We have looked to slow the growth in every one of those.

”The majority of this year’s difficulties really are in decreases in property-assessed values and income, and that is outside of our control. This year, I will vote ‘yes’ for a tax increase because I understand that this year there is a different conversation being had.”

Lynch also expressed concerns about raising taxes every single year and the need to have a balanced budget without pulling from reserves.

Board member Amy Cooper said the administration has done its due diligence in analyzing district finances and came up with very thorough budget presentations.

“We never could have seen the economic world that we would live in, but because of that diligence and work, we’re certainly not in the worst-case scenario,” Cooper said.

The May 5 budget presentation begins at about the 1:09-minute mark of the meeting video. The budget motion is made shortly before the 1:44-minute mark.

Upcoming budget actions

The board will discuss its final budget on June 2 at O’Hara Elementary and vote on it on June 9 at the high school.

Both meetings start at 7 p.m. and are open to the public.

Board meetings are also livestreamed on the district’s YouTube channel.

The latest budget presentation is available for review on the district’s website.

A more in-depth budget breakdown is available on the “budget & finances” tab under the main page’s “About” section.