Parkland Finds Extra $500K, Lowers Tax to 1.9 Percent

By Wendy Solomon, Lehigh Valley Patch

The Parkland School District property tax could be lowered to 1.9 percent when the board votes Tuesday because the district added nearly $500,000 in unexpected revenue and savings to the 2013-2014 budget, according to Business Administration Director John Vignone.

The additional money comes from increased property values from new construction in the district and lower costs on dental insurance and property assessment settlements, Vignone told the board at its Tuesday meeting.

"We are mitigating many of those loses we thought we would receive," he said.

"When revenue goes up, the value of a mill is more and we need less mills to balance a budget."

The board will recommend a 13.83 millage rate, down from the 13.90 mills, or 2.43 percent tax increase, it considered at its May 21 meeting.

The biggest windfall comes from nearly $340,000 in increased assessed valuation from new construction in the school district, that includes a new Oceanspray warehouse, followed by $98,000 in lower than expected dental insurance costs and $43,000 in lower assessment appeals,  Vignone said.

In addition, Vignone said that property owners who have been approved under the Homestead/Farmstead Resolution will also get a $105 assessed value exception on their properties. 

"It's not a check or a reduction of the tax bill. It reduces your assessed valuation, which drives a lower tax bill," he said. "Some may pay less, some will pay more or some will pay the same."

Superintendent Richard Sniscak said the district protected itself by filing for numerous exceptions because of uncertainty with the state budget.

"We didn't know if we would need to use a lot of the exception money, but felt it was in our best interests to protect ourselves," Sniscak said.

When the preliminary budget was proposed in February, the board considered a 5.82 percent increase and 14.36 millage rate.