Twin Valley School District

1. Twin Valley School District Presentation to the School Board: 2008/2009 Budget: The Need for increased tax revenue

2. Why the tax increase? • Based on the current tax rate the estimated revenue will be insufficient for the 2008/2009 school year • The middle school expansion cost has increased due to environmental issues • The renovations to Honey Brook Elementary School cannot wait until the 2009/2010 school year as was originally expected.

3. Current tax rate information compared to neighboring or nearby districts • Twin Valley School District (This district resides in 2 counties) Berks-18.6m Chester-19.0m • Daniel Boone-26.25m • Owen J. Roberts- 25.2m • Downingtown-25.6m • Coatesville- 30.3m • Great Valley- 16.1m • Phoenixville- 25.2m

4. Increase needed The millage rates must be increased 7% as follows:

5. What does this mean to the tax payer? A Berks County Scenario • The average residential property in Berks County is assessed at $124,000. Under the current tax rate the tax is $2,306. Under the proposed tax increase the new tax for this property will be $2,468. • Calculations explained: • Assessed Property Value x Millage Rate • 2007/2008 124,000 x .0186 = 2,306 • 2008/2009 124,000 x .0199 = 2,468 Reflects an increase of 15%.

6. What does this mean to the tax payer? A Chester County Scenario • The average residential property in Chester County is assessed at $157,000. Under the current tax rate the tax is $2,920. Under the proposed tax increase the new tax for this property will be $3,187. • Calculations explained: • Assessed Property Value x Millage Rate • 2007/2008 157,000 x .0186 = 2,920 • 2008/2009 157,000 x .0203 = 3,187 Reflects an increase of 15%.

7. Important Notes • Even with the proposed tax increase, the TVSD millage rate will fall below that of most neighboring and nearby school districts. • Property values in the TVSD are assessed by the county and are comparable to property values in other districts. • Since the TVSD millage rate is lower than that of other districts, the tax burden on property owners is also lower.

8. Tax Regulations • Act 1 restricts the amount of tax increase allowed by any given district. This amount varies depending on several factors. • The base index is calculated by averaging the percent increases in the Pennsylvania statewide average weekly wage and the Federal employment cost index for elementary/secondary schools. • Additionally, for school districts with a market value/personal income aid ratio (MV/PI AR) greater than 0.4000, the value of their index is adjusted upward by multiplying the base index by the sum of 0.75 and their MV/PI AR. • These numbers vary from district to district

9. Twin Valley’s Data • Twin Valley’s 2007-08 MV/PI Aid Ratio is0.4105 • Twin Valley’s Adjusted Index is 5.1% • The Adjusted Index is the maximum amount of tax increase allowed for each tax the school district levies. • Any tax increase above the Adjusted Index requires Court/PDE/voter approval.

10. What does this mean for our 2008-2009 budget • An increase in property taxes of 7% will require approval by voters. • An aggressive ‘get out the word’ initiative will be needed which will include: • Interviews with local media outlets including newspapers and radio stations • Interviews with current students, graduates, teachers, and parents about the conditions in our schools to be included in press releases • Newsletters explaining the current conditions and need for increased expenditures • Opportunities for the public to voice concerns, raise questions, and speak with school administration face to face.