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 CountyChester County 2007/2008 school year 18.6 mils19.0 mils 2008/2009 school year 19.9 mils20.3 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/ ,000 x.0186 = 2,306 – 2008/ ,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/ ,000 x.0186 = 2,920 – 2008/ ,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 , 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 MV/PI Aid Ratio is 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 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.