A.G. adopts budget with level rax rate
The Albert Gallatin Area School Board adopted a 2008-09 final budget Wednesday that does not include an increase in real-estate taxes. The tax rate will remain at 11.119 mills. At that rate, home and property owners pay $111 for every $10,000 in assessed property value.
A person whose property is valued at $50,000 would play $555 in taxes, whereas a person whose property is valued at $100,000 would pay $1,119 in taxes.
District officials said at least five years have passed since taxes were increased in the district.
The board will use $2,644,688 of the fund balance to balance the spending plan.
Controller Denise Sheetz said around $6 million will remain in the fund balance after the end of the next fiscal year.
Expenses are projected at $46.1 million. District revenue is expected in the amount of $43,527,028.
Salaries make up about 43 percent of total expenses, employee benefits comprise 19.8 percent and debt service makes up 9 or 10 percent of expenses, said Sheetz.
The remaining amount is spent on Intermediate Unit 1 services, maintenance on buildings, supplies, books and more, said Sheetz.
The state is expected to provide the district with $820,144 for property tax reductions effective this year.
Approved homestead/farmstead properties will receive, on average, a $141.23 reduction reflective on their next tax bills.
Based on an 81.7 percent collection rate for real-estate taxes, the district expects to receive $4,728,710 in real-estate tax revenue in the 2008-09 fiscal year.
“We try our best to hold down expenditures and we have been fortunate,” said Sheetz.
The spending plan reflects a decrease in expenditures from the 2007-08 $46,231,735 budget. Sheetz attributed the decrease to an expected savings resulting from the district switching to one alternative-education provider.
The district will lease the former A.L. Wilson Elementary School and grounds located in Fairchance to Adelphoi Village for an initial one-year term with year-to-year renewals at a rental of $10,416.66 per month, according to the motion approved by the board at Wednesday’s regular monthly meeting.
Superintendent Walter Vicinelly said the district sent alternative-education students to three sites: Holy Family in Greensboro, Success Academy operated by Communities In Schools and Colonial campus operated by the IU 1.
He said not only will the move to one alternative-education provider result in a cost savings for the district and the lease agreement help offset alternative-education costs, “but more importantly, it will bring those students into closer proximity to the district programs” so it can better address their needs.
Sheetz also said the decrease in expenses is due to money to pay for building projects that was included in last year’s budget not needing to be included in this year’s spending plan since construction of a new A.L. Wilson Elementary School in another location in Fairchance is nearly complete.
The $7.4 million project is slated for completion at the end of June, with a ribbon-cutting and soft opening for parents and students tentatively scheduled in August before school starts.