As the Methacton School District’s board of directors weighed ways to issue a third round of bids for a high school fields’ project, there was another topic up for discussion at Tuesday night’s meeting. As the board members debated school-year goals, several wanted to know the financial fate of the district.
As homeowners are well aware, prior to the June deadline, the board voted for a 2.1-percent tax increase on property taxes. Each homeowner, on average, had to shell out an additional $103.73 per year. The school year prior, homeowners had a 1.85-percent hike.
So, will residents see another?
When it comes to the fields, Dr. David Zerbe told the board that, though not officially set in stone with a board vote, he anticipated as discussed for $4 million of a $5.5 million bond to go toward the project. Additional funding is aimed to be raised through the fundraising efforts of a unique committee established by Zerbe, inclusive of local officials, sports league presidents and experts.
The remaining funds, he said, would go toward “other capital improvements” within the district.
However, in the same meeting, as goals were discussed, it seemed as though more tax increases may be on the way.
“As a board, we have to have a strategy,” said board member Jim Phillips. “Take into account what [employee] contracts are coming up. If that is 75 to 80 percent of our budget, a 4-percent difference in salary and benefits, well, that will affect the budget with a 3-percent [overall] increase.”
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Phillips urged the board to create a financial goal, in order to think ahead and prevent more tax increases in the coming years.
“I would move for a zero percent increase for three of the next five years,” he suggested.
Board Member Herbert Rothe III said that attempts were made with contract concessions under former Supervisor Dr. Timothy Quinn.
“We asked teachers to take a hold on salaries,” he said.
Newest board member Peter MacFarland also weighed in on the idea.
“If we made a zero tax requirement first, we predestine ourselves to cut costs, because of the increased costs coming,” said MacFarland.
As the administration had previously explained to the board, one of the largest causes of increased budgets is the state-mandated “PSERS,” or Public School Employees’ Retirement System. With pension costs rising, the board expects increased forced contributions to be required by the state.
Where would that put the district?
“If we assume we can keep costs flat next year, understanding the mandated increases in salary, steps, PSERS; where does that all take us?” asked board member Gregory Pellicano.
“Last year, we provided a five-year projection,” said Zerbe. “If all stayed the same, fiver years from now [without a tax increase] we would be facing a $12-million deficit.”
Zerbe said that the administration calculated that figure based on ten years of historical data.
“We’d be $12 million in debt if we had a zero-percent tax increase,” said the superintendent.
While Zerbe welcomed the board to create whatever goals it desired, he said forcing a numerical financial goal may tie the board’s hands when it comes time for budget approval.
“When setting an official goal, I don’t know what that number is, but you will be needing to give us a direction,” said Zerbe about coming years’ budgets. “It could be zero. It could be the index. It could be some other number. But you won’t get that until we see the numbers, until we look at 2015-16. To establish a goal may be premature.”
The board decided, Tuesday, to table the discussion and continue goal setting at its next public meeting. The Methacton School District Board of Directors will meet at 7 p.m. on Tuesday, Sept. 23 in the high school’s LGI Room.
This story was published through a news content partnership between NBC10.com and The Alternative Press of Lower Providence
