KENWOOD — The Penns Manor Area Board of Education voted 5-2 Thursday to adopt a 2013-14 fiscal year budget that calls for a 5 mill tax increase.
The adopted budget calls for $15,449,603 in revenue and $15,655,745 in expenditures, and will borrow $206,142 from the district’s fund balance. Board members Joette Dudeck and Jerry Dick voted against adopting the budget as it stood.
The current millage rate of 102.56 will increase to 107.56. One mill generates approximately $26,439 of revenue for the district.
The change will add $48.55 annually to the tax bill for the owner of a property with a median assessed value of $9,710, said business manager and board secretary David Kudlawiec during a brief budget presentation. He said the per capita taxes under Act 511 and Act 679, the real estate transfer tax and wage tax are unchanged from last year.
The board also approved the Homestead and Farmstead Exclusion Resolution, which allows for a decrease of $169.51 for people who qualify in the district, and set the discount rate at 2 percent and the penalty rate at 10 percent on real estate and per capita taxes.
In addition, board members adopted a resolution amending the district’s new home construction tax abatement program. The program enables those undergoing new home construction to go without paying real estate taxes in the district for two years for a permanent dwelling and permanent construction. The tax abatement period ends June 30, 2015, Kudlawiec said. If they apply this year and are approved, they won’t pay school taxes for 2014 and 2015. County taxes will remain the same, and the savings average out to about $1,500 depending on the value of the home, he said, adding that it could be more or less.