Fox Chapel Area School District property owners will see their real estate tax bills go up by 3.1% to help balance next school year’s estimated $125.5 million budget.
The board voted 8-1 on June 8 to pass its 2026-27 spending plan with a millage increase from 22 mills to 22.6898 mills.
Board member Vanessa Lynch dissented.
The increase equates to about an extra $68 in real estate taxes per $100,000 of assessed value.
The owner of a home assessed at the district’s median property value of $233,700 would pay an additional $159 on their tax bill. That’s $5,300, up from $5,141.
That same property owner with a homestead exemption would pay $4,975.
The tax hike is less than the 3.5% hike allowed by the Act 1 index, a state formula based on the inflation rate that limits property tax hikes without requiring voters’ approval.
The district raised taxes 2.3% for this past school year.
Each mill generates about $3.7 million for the school district.
Ryan Manzer, the district’s director of finance, said not much changed from the proposed budget last month.
All programs and services remain intact.
District officials cited multiple reasons for the tax hike, including little increase in real estate values because of assessment appeals. Also, minimal increases are expected in state funding: about 1.7% for basic education subsidies and 1.3% for special education.
Staffing also was added to Dorseyville Middle School because of increased enrollment.
The proposed budget contained a shortfall of nearly $2 million.
Manzer said in May that expenses include about $1.5 million in emergency/unanticipated costs. About $440,000 is expected to be pulled from the district’s $10.8 million unassigned reserves to balance the budget.
Projected revenues already include the estimated $2.7 million in additional money from the 0.6822-mill tax hike.
Other budget highlights include:
• An 8.3% increase in health insurance costs and 3% for dental coverage.
• A 33.5% district contribution rate to the Public School Employees’ Retirement System — which accounts for 14% of the overall budget. The district anticipates paying more than $44 million in retirement PSERS contributions during the next five years.
• A $1.6 million transfer to the capital projects fund to support future work as part of the district’s multiphase plan to repair and replace equipment and aging infrastructure.
Board thoughts
Lynch said she could not support the budget with a tax hike.
She noted she attended a recent Allegheny County Council hearing to address the need for regular property reassessments.
“I don’t think tax increases can be our only way of making sure (we) have a balanced budget,” Lynch said. “We should be using other opportunities as well to create that space. It’s why the reassessment process is very important to me, and I think we need to be making sure to consider other options as thoroughly as possible so that our families across the district are not faced with a yearly tax increase.”
The board in April passed a resolution, championed by board member Ariel Zych, urging county council to mandate and implement a system of regular, periodic property tax assessments.
Zych on June 8 again expressed the need for tax reform and said the budget was carefully crafted and all options were considered.
“We are controlling costs,” she said. “That happens through multiple processes.”
Zych said the budget addresses improvements to sustainability, safety and infrastructure.
“Under the circumstances, and in this context, our district is performing admirably,” Zych said.
Other school board members also called for tax reform and new reassessments.
The district has lost more than $1 million in revenue to assessment appeals the past few years.
“The fact that they’re holding hearings on the issue is a really positive sign that they intend to take action,” said Eric Hamilton, board finance chairman. “It’s no small thing to do assessments continuously or change the assessment process.
“It’s a big task they have in front of them. We know it’s not a simple thing to solve, but I think they understand the urgency that school districts are facing and I’m optimistic they will take action. A significant portion of our tax increase is just to stay even with past years because of the assessment appeals and reduction in values.”
Hamilton commended Manzer and the administration for crafting a budget that maintains all student opportunities.
Officials started working on a budget draft in December shortly after Manzer arrived to Fox Chapel Area from the Plum School District.
He took over for Kimberly Pawlishak, who resigned Dec. 10 to become Shaler Area School District’s business manager.
“He did a great job catching up on all things Fox Chapel that he needed to know to get the budget together on time,” Hamilton said after the meeting. “I thought it was a really smooth transition.”
Hamilton said the district also has grown the past few years and added new staff to accommodate students.
“It’s better to grow than to not grow,” he said. “I think it’s a sign of the strength of our school district that we continue to attract young families and they want to send their kids to our public schools.”
The board does not meet in July. It will reconvene in August and is expected to craft a list of goals for the superintendent for the coming school year.
Property owners who do not have an approved homestead exclusion will be able to apply again when the district mails letters to those homeowners in December.
Residents can review the budget online at fcasd.edu. It also is available at the district’s administrative offices.
About the tax increase
Here’s how the Fox Chapel Area school tax bill would change on a property valued at the district’s median property value of $233,700:
Current tax rate: 22 mills
Current tax bill: $5,141
New tax rate: 22.68 mills
New tax bill: $5,300
Tax increase: $159