Greater Latrobe eyes worst-case 2.7-mill tax hike

Property owners in the Greater Latrobe School District could see a 2.7-mill increase in real estate taxes under a tentative 2020-2021 budget of nearly $57.2 million approved this week by the school board.

District business administrator Dan Watson said the potential hike to 84.95 mills would add $73 to the average property owner’s tax bill. But, he said, that’s a worst-case scenario as school officials budget conservatively while facing uncertainties in funding and operations as a result of the covid-19 pandemic.

“This year we’re in a unique situation with covid-19 and the impact it could have on state revenue and our local revenue.” Watson said.

He said the proposed district budget and tax hike “isn’t meant to make anybody super anxious. “It is still pretty preliminary.” He expressed hope there will be “a little more clarity and a more well-defined budget” by next month, when the school board is slated to finalize the spending plan.

As the pandemic progressed and much of the local economy was shut down to control spread of the disease, Greater Latrobe’s projections for 2020-21 total revenue fell from $57.7 million in December to $56.7 million in April and then to $55.9 million in May.

Those projections reflect the reality that, until the state partially relaxed pandemic-related restrictions on businesses on Friday, “people were not working or their income levels were down,” Watson said. That’s expected to have a negative impact on the district’s earned income tax and real estate transfer tax collections.

According to Watson, the district expects to cut more than $550,000 from its original planned expenditures for salaries and benefits, which represent 70% of costs — in part, by replacing six departing teachers with lower-paid instructors and replacing an administrative position with a support position.

Debt service and transportation costs also are expected to go down. Still, the district is proposing a net increase of about $105,000 in overall expenditures. That would require using about $524,000 of a $2.7 million fund balance, in addition to the tax increase.

Unknown factors include tuition for district students who may decide to enroll in independent cyber schools and costs for special education, which could rise by more than $300,000, Watson said.

The board agreed to continue a district property tax rebate program, which piggybacks on a similar state program. The district would pay eligible recipients 5% of whatever state tax rebate they would receive — up to a maximum of $32.50, not exceeding the total tax bill.

“Our community has been hard hit by this,” Watson said of the pandemic’s economic fallout. “We’re all in this together.

Possible extension of deadlines for paying fall school taxes at the discount and face values is under discussion at the state level, Watson noted. “Whatever the state recommends, we’ll follow through with,” he said.

Watson said the uncertain financial times have caused Greater Latrobe to delay acting on a financing plan for a proposed $5.8 million renovation of the Eastern Westmoreland Career and Technology Center. But the school board appointed three members — James Thomas, Timothy Schultheis and Lester Sutton — to a revived vocational-technical school authority that would carry out the project.

The school board approved nearly $112,000 in capital improvements at the district, including replacement of the junior high school cafeteria floor, replacement of kitchen refrigerator condenser units at the senior high and fire alarm control upgrades at both schools.