New Kensington-Arnold includes 1.5% property tax increase in proposed budget

A small property tax increase will help to keep the New Kensington-Arnold School District moving in the right direction, according to board President Tim Beckes.

The school board voted 8-0 Tuesday night to approve the district’s $46.2 million proposed final budget for 2024-25. Board member Terry Schrock was absent.

It includes a 1.5 mill, or about 1.5%, property tax increase. If given final approval in June, it would add about $21 to the annual school property tax bill for a house at the district’s median assessed value of $14,600.

It is far less than the 8% maximum increase the district is allowed under its state-imposed, inflation-based limit. A 2% increase had been considered in January.

In March, however, business Manager Jeff McVey’s budget presentation showed no tax increase, with revenue still increasing thanks to a rise in the district’s assessed property value.

The district’s financial situation has improved to where the board is no longer considering program cuts, furloughs or the prospect of the district falling into financial distress and under state control in the near future, Beckes said. Previous years of forgoing tax increases led to the district facing deficits and higher tax increases.

“We have so much good momentum. We want to add more and continue to improve,” Beckes said. “We’re building again.”

The district will finish this school year with a $1 million surplus, McVey said. A $500,000 surplus is forecast for 2024-25.

District officials are discussing how to make use of $2.5 million in excess reserves, McVey said.

A list developed by administrators includes new laptop computers for teachers; updating the high school graphics lab and television production; expanding and replacing data storage; a generator for the administration and athletics building; security devices for all buildings; math and science textbooks; and replacement programs for vans used to transport students and maintenance trucks.

The budget is available for public inspection at the central administration office. The board will vote to adopt the budget during its next meeting at 7 p.m. June 4.

In other business

• The school board approved the Northern Westmoreland Career & Technology Center’s $4.8 million 2024-25 school year budget.

The board also approved an estimated payment of about $723,000 for New Kensington-Arnold’s share of the school’s operating expenses. It is paid in 12 equal monthly installments.

The center, located next to Valley High School in New Kensington, also serves students from the Burrell, Franklin Regional and Kiski Area school districts.

• Nutrition Inc. will continue as the district’s food service management company for the 2024-25 school year.

The annual cost of about $849,000 includes food, supplies, direct operating costs, salaries and benefits for management staff, and administrative and management fees, McVey said. It’s up about 0.8% from the $842,207 cost for the current school year.

Nutrition has been the district’s food service manager for at least 20 years, McVey said.

• The board approved participating in the second year of an Apple device buyback and replacement program for iPads.

According to McVey, the district will sell about 750 eighth generation iPads to SecondLifeMacs, with an estimated trade-in value of $102,000, depending on condition. Proceeds will be used to offset the purchase of 800 new iPads, which McVey said would be about $380,000 and paid in three equal annual installments.

• The board awarded contracts for diesel fuel and unleaded gasoline to Petroleum Traders.

The Westmoreland Intermediate Unit’s joint purchasing consortium for fuel identified Petroleum Traders as the lowest responsible bidder.

Diesel fuel will be bought at a fixed cost of $2.81 per gallon, while gasoline will cost a fixed rate of $2.72 per gallon.

• The board approved a one-year contract for trash and recycling with County Hauling.

The $25,206 cost is about 5.8% higher than the district’s previous agreement with Waste Management, according to McVey.

Waste Management did not submit a bid for the district’s contract, he said.