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WESTCHESTERAREA SCHOOL DISTRICT2OOO~O1BUDGET

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r!!nMAT!!~Ai SECTIONI

WESTCHESTERAREA SCHOOL DISTRICT2000-01BUDGET

IMILLAGE~I

WEST CHESTER AREA SCHOOL DISTRICT2000-01BUDGET

MILLAGE CALCULATION

1. Net amount to be raised from real estate taxes, 2000-01 $72,662,051

2. Gross tax to be levied (estimate 96.4% collection) $75,375,572

3. Equalization between counties - Section 672.1

Most Recent Value __________

Certified by STEB J Percent

a. Chester County $4,726,381,900 94.97

Delaware County $250,569,400 5.03

$4,976,951,300 100.00

b. Gross Real Estate Levy:

Chester County - 94.97% $71,580,716

Delaware County - 5.03% 3,794,856

$75,375,572

4. Millage Calculation:

a. Tax Levy - Chester County divided by the $71,580,716 = 1t38 mills

Assessed Value - Chester County $6,290,874,733

b. Tax Levy - Delaware County divided by the $3,794,856 = 1O~56mills

Assessed Value - Delaware County 359,308,070

TAX LEVY

Real Estate Tax at the rate of Eleven and Thirty-Eight Hundredths (11.38) mills, or $1 .138 per one hundred dollars of assessed valuation of

taxable real property, in the Townships of East Bradford, East Goshen,Thornbury, West Goshen, Westtown, West Whiteland, and the

Borough of West Chester, all ofChester County, Pennsylvania; and Ten and Fifty-Six Hundredths (10.56) mills, or $1 .056 per one hundred

dollars of assessed valuation of taxable real property, in the Township of Thornbury, Delaware County, Pennsylvania.

Legally, school district real estate taxes must be equalized between counties based on the most recent market value certified by the State

Tax Equalization Board (STEB). For 1999-00, Delaware County represented 4.77% of the total market value of the School District; for

2000-01, Delaware County represents 5.03%.

161


Millage Calculation

CHESTER COUNTY MILLAGE 11.38

PREVIOUS YEAR MILLAGE 11.06

INCREASE 2.9% .32MILLS

DELAWARE COUNTY MILLAGE 10.56

PREVIOUS YEAR MILLAGE 432.2

INCREASE N/A N/A MILLS

162

WEST CHESTER AREA SCHOOL DISTRICT2000-01 BUDGET

ANALYSIS OF TAX LEVY INCREASE2000-01 BUDGET PROPOSAL

CHESTER CO. DELAWARE CO.

2000-01 MILLAGE 11.38 10.561999-00 MILLAGE 11.06 432.2

INCREASE 0.32 (421.6t

1999-00 BUDGET 2000-01 BUDGET INCR.I(DECR.) % INCR./(DECR.)

MILLAGE INCR.I(DECR.)

CHESTER CO. DELAWARE CO.

NON-EXPENSE AND REVENUE FACTORS AFFECTING THE MILLAGE

CHANGES IN STEB PERCENTAGE BETWEEN CHESTER AND DELAWARE COUNTY

INCREASE IN ASSESSEDVALUES IN CHESTER AND DELAWARE COUNTIES

REVENUES:FUND BALANCE $ 4,120648 $ 5,964,393 $ 1,843,745 44.7%FUND BALANCE DESIGNATED FOR TECHNOLOGY $ (1,858,369) $ (1,406,406) $ 451,963 -24.3%LOCAL REVENUES EXCL. CURRENT RE. TAXES $ 20,250,500 $ 21,346,000 $ 1,095,500 5.4%STATE REVENUES EXCLUDING RETIREMENT SUBSIDY $ 16,767,766 $ 17,787,774 $ 1,020,008 6.1%STATE RETIREMENT SUBSIDY $ 1,319,473 $ 596,623 $ (722,850) -54.8%OTHER REVENUES $ 150,000 $ 150,000 $ - 0.0%TOTAL REVENUES $ 40,750,018 $ 44,438,384 $ ‘ 3,688,366 9.1%

CHANGES IN EXPENSES NEEDED TO MEET CONTRACTUAL OBLIGATIONS. MAINTAIN SERVICE LEVEL. AND PROVIDE FOR ST

(0.04)

(0.56)

(0.30)(0,07)(0.18)(0.17)0,12

(0.61)

JDENT GROWTH:

25.5

(484.8)

(12.6)(3.1)(7.5)(7.0)4.9

(25.2)

16.96.7

(3.4)5.73.2

29.1

SALARIESSALARY INCREASESSALARIES FOR 1999-00 VACANCIESATTRITION FACTORSTAFF ADDITIONSSALARY OVERAGE IN 1999-00TOTAL SALARIES

$

S

58,059,487

58,059,487

$$$$$5

60,535,865 $976,300 $

(500,000) $841,891 $471,813 $

62,325,869 $

2,476,378976,300

(500,000)841,891471,813

4,266,382

4.3%

7.3%

0.410.16

(0.08)0,140.080.70

BENEFITSBENEFITS EXCLUDING RETIREMENTDISTRICT CONTRIB TO PSERS RETIREMENT SYSTEMBENEFITS FOR STAFF ADDITIONSTOTAL BENEFITS

$$

$

12,181,1992,645,740

14,826,939

$5$5

13,157,462 $1,193,130 $

281,423 $14,632,015 $

976,263(1,452,610)

281,423(194,924)

8.0%-54.9%

-

-1,3%

0.16(0.24)0.05

(0.03)

6.7(9.9)1.9

(1.3)

TRANSPORTATION:0% DAILY RATE INCREASEMANAGEMENT FEEADDL BUSES FOR ENROLLLMENT INCR.(10)IU CONTRACTED FOR CASEIU CONTRACTED FOR SPECIAL EDUCATIONTOTAL TRANSPORTATION

$$

8$$

7,004,34748,000

70,000869,283

7,991,630

$$$$$$

7,004,347 $- $

337,860 $74,648 $

958,012 $8,374,867 $

-

(48,000)337,860

4,64888,729

383,237

0.0%

102%4.8%

-

(0.01)0.060.000.010.06

-

(0.3)2.30.00.62,6

CURR.PROPOSALS(BOARDSHARE) 5 489,812 $ 518,016 $ 28,204 5.8% 0.00 0,2

SPECIAL EDUCATION SERVICES & TUITIONSCAT TUITIONCASE TUITIONCHARTER SCHOOL TUITION

$$$$

3,043,459941,350398,000322,500

$$$5

4,275,200 $941,350 $627,320 $

1,995,000 $

1,231,741-

229,3201,672,500

40.5%0.0%

57.6%-

0.20-

0.040.28

8.4-

1.611.4

DEBTSERVICECONTRIBUTION TO CAPITAL PROJECTS FUNDFUND BALANCE

$$$

10,485,501-

2,577,831

$$$

11,492,568 $- $

2,500,000 $

1,007,067-

(77,831)

9.6%

-3.0%

0.17-

(0.01)

6.9-

(0.5)

INCREASE IN PPAGENERAL FUND FACILITY PROJECTSOPERATION & MAINTENANCEOTHER EXPENSES

5$$$

2,236,606250,000

4,057,7002,204,892

$5$$

2,385,733 $250,000 $

3,902,450 $2,880,046 $

149,127-

(155,250)675,154

6.7%0.0%

-3.8%30,6%

0.02-

(0.03)0.11

1.0-

(1.1)4.6

TOTAL EXPENSES $ 107,885,707 $ 117,100,434 $ 9,214,727 8.5% 1.52 62.8

NET AMOUNT TO BE RAISED FROM TAXES $ 67,135,689 $ 72,662,050 $ 5,526,361 8.2% $ 0.32 (421.6)

163


FIVE YEAR HISTORV OF TAXINCREASES

CHESTERCOUNTY DELAWARE COUNTY

YEAR MILLAGE% INCR/

DECR

AVERAGERESIDENTIALASSESSMENT

AVERAGETAX BILL MILLAGE

% INCRJDECR

AVERAGERESIDENTIALASSESSMENT

tVERAGETAX BILL

1995-96

1996-97

1997-98

1998-99

1999-99

2000-01

144.2

148.8

154.6

10.69

11.06

11.38

3.2%

3.9%

N/A

3.5%

4.0%

$12,495

$12,495

$12,495

$190,000

$190,000

$190,000

$1,802

$1,859

$1,932

$2,031

$2,101

$2,162

361.5

383.5

407.1

408.6

432.2

10.56

6.1%

6.2%

.4%

5.8%

N/A

$6,171

$6,171

$6,171

$6,171

$6,171

$242,000

$2,253

$2,367

$2,512

$2,521

$2,667

$2,556

164

WEST CHESTER AREA SCHOOL DISTRICT2000-01 BUDGET

REASSESSMENT IN DELAWARE COUNTY

Reassessment is the revaluation of (meaning the setting of new values for) all propertieslocated within a specified area. Reassessments in Pennsylvania are only done on a countywidebasis.

In 1994, the Court of Common Pleas ordered the County to conduct a reassessment of allproperties after ruling that property assessments were inequitable. The goal of the countywidereassessment was to ensure that any two properties with the same market value would beassessed similarly. Reassessment applied to every single property in Delaware County —

residential, commercial, industrial, agricultural, etc. Reassessment was completed last year forimplementation in 2000.

The new assessments are based on 100% of appraised (full market) value. The priorassessments were based on 3,3% of the appraised values. The change to 100% means thatproperty owners can now determine the accuracy of their assessment without going through aseries of calculations.

The new average full market assessments are approximately 46 times greater than priorassessments, but this does not mean that everyone’s taxes will increase by a factor of 46.Instead, the millage rate on average will decrease 46 times. Why? Because existing legislationguarantees that the 100% assessment will not create a revenue windfall. This legislationprecludes the School District from generating more than a 10% increase in real estate taxrevenues during a reassessment year. However, it is important to note that any individual taxbill can change by amounts higher or lower than 10%. Shifting will occur for School Districttaxes, whether up or down, on each particular property. -

The Interpretation of the Statute for the 10% Limitation after Countywide Reassessment

This state statute applies to all political subdivisions (including school districts) levying realestate taxes on revised assessments in the first year after a countywide reassessment. Thestate mandates that the real estate tax levy that first year may not be more than 10% greaterthan the real estate tax levy in the prior year. THIS 10% FACTOR IS APPLIED ONLY TO THEPRIOR YEAR’S TAX DUPLICATE. INCREASES IN OR ADDITIONS TO THE TAX BASECREATED BY NEW CONSTRUCTION AND/OR NEW IMPROVEMENTS TO EXISTINGCONSTRUCTION ARE NOT CONSIDERED. For example, a new development of 10 homeswill increase the tax base and bring in additional revenues, but those revenues are not includedin computing the 10% growth factor.

In creating the 2000-01 budget, it was necessary to calculate the 10% growth factor to ensurewe met the requirements of the law. We first calculated 110% of the taxes levied in 1999-00.That was easy to do, using figures from this year’s (1999-00) budget. Next, we needed tocalculate the taxes that would be levied in 2000-01 on properties added to the tax base sincethe 1999-00 budget was created. Our solicitor has determined that we may use interim taxes,collected over the course of the current school year on newly constructed buildings andadditions. Using this figure, the legislated 10% cap is calculated on the schedule titled“Calculation of Legislated 10% Increase Cap in Reassessment Year.”

165


DELA WARE COUNTYMILLAGE INCREASECALCULATION OF LEGISLA TED 10%

iNCREASE CAPIN REASSESSMENTYEAR

GROSS TAX LEVIED IN THE 1999-00YEAR $69,642,832

ADD:10% INCREASE $ 6,964,283

GROWTH (1999-00INTERIM TAXES) $ 4,298,000

MAXIMUM ALLOWED FOR GROSS TAX LEVY IN 2000-01 $80,905,115

ACTUAL GROSS TAX TO BE LEVIED IN 2000-01 $75,375,572

LEVYAMOUNT0VER/(UNDER)CAP ($5,529,543)

166


FIVE YEAR HISTORV OFEQUAL IZA TION BETWEEN COUNTiES

YEARCIIESTERCOUNTY

DELAWARECOUNTY

2000-01 94.97% 5.03%

1999-00 95.23% 4.77%

1998-99 95.39% 4.61%

1997-98 95.47% 4.53%

1996-97 95.67% 4.33%

1995-96 95.88% 4.12%

167


I INCREASE IN ASSESSEDVAL UE OF REAL ESTA TE

CHESTER COUNTY DELAWARE COUNTY

($ Millions)

BASE ASSESSMENT $289.9 $4.4

1989-901990-911991-921992-931993-941994-951995-961996-971997-98

$ 23.1$ 22.7$ 15.9$ 5.2$ 1.1$ 3.8$ 4.8$ 4.6$ 6.6

$0.4$0.1$0.1$0.2$0.5$0.2$0.4$0.2$0.3

Value Prior to Reassessment $377.7 $6.8

ReassessedValue 1998-99(Chester County)

$5,801.2 $6.8

1998-99

1999-00

N/A

$205.5

$0.5

$0.4

Value Priorto Reassessment(DelawareCounty)

ReassessedValue 2000-01

$6006.7

$6006.7

$7.7

$359.3

2000-01 $ 284.1 N/A

2000-01ASSESSEDVALUE

$6,290.9 $359.3

168

WEST CHESTER AREA SCHOOL DISTRICT

2000-01BUDGET

ASSESSEDVAL UE OF REAL ESTATEl

IMPACT OF CHESTER COUNTY APPEALS

YEAR APPEALSFILED

%OFTAXBASE

REDUCTIONSIN TAX BASE

%OFTAXBASE

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

$ 31,022,000

$ 42,000,000

$ 26,000,000

$ 20,695,000

$ 17,113,000

$ 13,312,000

9%

12%

7%

6%

5%

4%

$ 8,831,980

$ 8,016,110

$ 4,578,360

$ 3,704,180

$ 2,818,310

S 1,691,000

2.50%

2.00%

1.50%

1.00%

.75%

.50%

TOTAL $ 133,029,000 43% $29,639,930 7.75%

1998-99

1999-00

2000-01

BASE YEAR

$ 36,623,660

$ 55,989,920

N/A

.6%

.9%

N/A

$ 7,834,210

$20,109,710

N/A

.1%

.3%

169


REAL PROPERTYASSESSMENTDA TA

YEAR* MARKET VALUE ASSESSEDVALUE RATIO

(1977)1979-80 $ 816,598,000 $184,329,000 22.57

(1986)1.988-89 $2,494,489,700 $254,084,000 10.19

(1995)1997-98 $4,513,884,600 $384,472,000 8.52

(1997)1999-00 $4,811,535,900 $6,014,372,755 125.00

(1998)2000-01 $4,976,951,300 $6,650,182,803 134.00

* THE YEAR IN PARENTHESIS INDICATES WHEN MARKET VALUE WAS

ACTUALLY CALCULATED BY THE STATE TAX EQUALIZATION BOARD.FOR EXAMPLE, THE 1977MARKET VALUE WAS REPORTED TO THE SCHOOLDISTRICT FOR THE 1979-80FISCAL YEAR.

170


Comparisonof Growth iii MillageJMILLAGE & CONSUMER PRICE INDEX (CPI)

CUMULATIVE % INCREASE CHESTER COUNTY

110 ~ ~ CPI INCREASE

100% A MILLAGE 1N~REASE

-~‘ ENROLLMENT INCR % + CPI INCR

1981- 1982- 1983- 1984- 1985- 1986- 1987- 1988- 1989- 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000-82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

171


~omparisoii of Growth, in Miliage

MILLAGE & CONSUMER PRICE INDEX (CPI)

CUMULATIVE % INCREASE

1981- 1982- 1983- 1984- 1985- 1986- 1987- 1988- 1989- 1990- 1991- 1992. 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000-82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

DELAWARE COUNTY

172


Comparisomiof Growth, in Millage jMILLAGE & STATEWII)E AVERAGE WEEKLY WAGE

1983- 1984- 1985- 1986- 1987- 1988- 1989- 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000-84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

110%CUMULATIVE % INCREASE CHESTER COUNTY

173


comparisonof Growth, in Miliage

MILLAGE & STATEWIDE AVERAGE WEEKLY WAGE

(L7SIL’I;~’I’I\’I ~ IN(Ri:Asi:hub! — . ——.-..— — _________

i I~,,o .~ SA\\’\% INCREASEI00% —a— MILL AGE INCREASE

() (1/ ~ ENROLLMENT IN~R0/ +~AWWIN~R

DELAWARE COUNTY

1983- 1984- 1985- 1986- 1987- 1988- 1989- 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000-84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

174

WEST CHESTER AREA SCHOOL DISTRICT

2000-01BUDGET

I Comnparisomiof Cli esterCountySchoolDistrictsJ

WEST CHESTER AREA SCHOOL DISTRICT TO COUNTY AVERAGE

WEST CHESTERAREA COUNTYSCHOOL DISTRICT AVERAGE INCR./DECR.

1999-00BUDGET

STUDENTS

COST/STUDENT

$113,732,730

11,857

$9,592

$50,800,029

5,306

$9,516

55%

55%

1%

MARKET VALUE (MV)

MV/STUDENT

$4,976,951,300

$419,748

$1,855,208,392

$352,688

63%

16%

1999-00MILLAGE

REAL ESTATE TAXES(ASSESS.AT $180,000)

11.06

$1,991

15.33

$2,759

-39%

-39%

EIT @ $60,000

OTHER

$300

0

1999-00TOTAL TAXES $2,291 $2,950 -29%

2000-01MILLAGE(ASSES.AT $190,000)

REAL ESTATE TAXES

2000-01 TOTAL TAXES

11.38

$2,162

$2,462

16.10

$3,059

$3,259

41.5%

41.5%

32.4%

175


COMPARISONOF TAXBURDEN & ENROLLMENT PERGENTAGEINCREASESIN CHESTER COUNTYSCHOOLDISTRICTS 1989 TO 1999

A\ONGRO\E ~ING1OV~CCTORARA COATES~1LLE O~JORD PIIOENL\~1LLE GREATALLEY OGYNJ ROBER1N 1RREDNFFRIN ERESTCRE.STER UNIONMU,E ~ENT~EU

176


COMPARISONOF TAX B URDEN & ENROLLMENT PERCENTAGE 1IN CREASESIN CHESTER COUNTYSCHOOLDISTRICTS /989 TO 1999

AVERAGE FORSCHOOL DISTRICTS WEST CHESTERIN UHF~STFT~(TOITNTY

177


178

WEST CHESTERAREA SCHOOL DISTRICT2000-01BUDGET

~OMPARISONOFTAXBURDENINCREASE PERADDITIONALI STUDENT1989TO1999

O TAX BURDEN INCREASEPER STUDENT

‘.-J.

IN CHESTER CO. WEST CHESTER

179


TaxEffortAnalysis1997-1998ChesterCountySchoolDistricts

EQUALIZED MILL

25.66

26.06

15,66

10,66

5.66

0.66

~t ~~~‘dt~ObP4% 0el~,~ O.~.,O, ~Ok,,,1, O~Q ~f91% tok k/4~

WestChesterRanked 476th out of 501 SchoolDistricts in the Level of Taxpayer Effort in the State

180

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