Property owners in Burrell School District will pay 3.5% more next school year.

The school board unanimously approved a preliminary budget of $32.7 million that includes a tax hike of 3.5 mills.

For a home assessed at $22,900, the district’s average home tax assessment, the homeowner would pay an additional $80 in real estate tax for 2021-22, said Jennifer Callahan, district business manager.

“Tax appeals filed by owners of three of the district’s largest commercial properties are expected to have a substantial negative impact on the district’s real estate tax revenue,” she said.

Callahan included in the budget the potential loss of more than $412,000 in revenue because of the tax appeals.

The district and Upper Burrell are fighting a real estate tax appeal from Arconic’s research center. In Lower Burrell, Hillcrest Shopping Center is appealing its property assessment.

Expenditures for the budget are $32.7 million; the district plans to make adjustments to reduce a deficit of nearly $400,000, she said.

Major expenditures this year include payroll salaries and wages at $14.2 million, up 1.9% from this school year; health insurance premiums at $2.5 million, a slight increase from this year; and retirement expense at $4.9 million, an increase of 3.1% from the current year.

Other noteworthy expenses: Instructional and buildings expense is about $570,000, up 3.5% from the current year; special education services increased 24% from this year to nearly $880,000 next school year’s budget; and the cyber charter school expense is about $450,000, up almost 3% from this year.

The school board is expected to vote on the final budget June 15.

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