Twin Valley School District

Presentation to the School Board: 2008/2009 Budget: The Need for increased tax revenue

Why the tax increase?

Based on the current tax rate the estimated revenue will be insufficient for the 2008/2009 school year

The middle school expansion cost has increased due to environmental issues

The renovations to Honey Brook Elementary School cannot wait until the 2009/2010 school year as was originally expected.

Current tax rate information compared to neighboring or nearby districts

Twin Valley School District (This district resides in 2 counties) Berks-18.6m Chester-19.0m

Daniel Boone-26.25m Owen J. Roberts- 25.2m Downingtown-25.6m Coatesville- 30.3m Great Valley- 16.1m Phoenixville- 25.2m

Increase needed

The millage rates must be increased 7% as follows:

Berks County Chester County

2007/2008 school year

18.6 mils 19.0 mils

2008/2009 school year

19.9 mils 20.3 mils

What does this mean to the tax payer? A Berks County Scenario

The average residential property in Berks County is assessed at $124,000. Under the current tax rate the tax is $2,306. Under the proposed tax increase the new tax for this property will be $2,468.

Calculations explained:– Assessed Property Value x Millage Rate– 2007/2008 124,000 x .0186 = 2,306– 2008/2009 124,000 x .0199 = 2,468

Reflects an increase of 15%.

What does this mean to the tax payer? A Chester County Scenario

The average residential property in Chester County is assessed at $157,000. Under the current tax rate the tax is $2,920. Under the proposed tax increase the new tax for this property will be $3,187.

Calculations explained:– Assessed Property Value x Millage Rate– 2007/2008 157,000 x .0186 = 2,920– 2008/2009 157,000 x .0203 = 3,187

Reflects an increase of 15%.

Important Notes

Even with the proposed tax increase, the TVSD millage rate will fall below that of most neighboring and nearby school districts.

Property values in the TVSD are assessed by the county and are comparable to property values in other districts.

Since the TVSD millage rate is lower than that of other districts, the tax burden on property owners is also lower.

Tax Regulations

Act 1 restricts the amount of tax increase allowed by any given district. This amount varies depending on several factors.

– The base index is calculated by averaging the percent increases in the Pennsylvania statewide average weekly wage and the Federal employment

cost index for elementary/secondary schools. – Additionally, for school districts with a market value/personal income aid

ratio (MV/PI AR) greater than 0.4000, the value of their index is adjusted upward by multiplying the base index by the sum of 0.75 and their MV/PI AR.

These numbers vary from district to district

Twin Valley’s Data

Twin Valley’s 2007-08 MV/PI Aid Ratio is 0.4105

Twin Valley’s Adjusted Index is 5.1% The Adjusted Index is the maximum amount

of tax increase allowed for each tax the school district levies.

Any tax increase above the Adjusted Index requires Court/PDE/voter approval.

What does this mean for our 2008-2009 budget

An increase in property taxes of 7% will require approval by voters.

An aggressive ‘get out the word’ initiative will be needed which will include:

– Interviews with local media outlets including newspapers and radio stations– Interviews with current students, graduates, teachers, and parents about

the conditions in our schools to be included in press releases– Newsletters explaining the current conditions and need for increased

expenditures– Opportunities for the public to voice concerns, raise questions, and speak

with school administration face to face.