KARNS CITY — The Karns City school board approved a $23.6 million preliminary budget with slight property tax reductions triggered by an increase in property values.

The proposed 2018-19 budget, which the board unanimously approved Monday, would reduce the district’s real estate tax rate from 91.95 mills to 91.56 mills in Butler County, from 45.07 to 44.75 mills in Armstrong County and from 46.87 to 45.03 mills in Clarion County.

A mill generates $60,000 in revenue for the district and the average tax bill in the district would be $951, Turner said.

The millage decreases are the result of an increase in the assessed value of property in the district from $96.2 million to $96.6 million and a reduction in the number of properties in the district from 6,851 to 6,817, said Deana Turner, business affairs director.

The assessed value of property increased from $45.7 million to $46 million in Butler County, $42.4 million to $42.6 million in Armstrong County and $7.9 million to $8 million in Clarion County.

Local property taxes make up 33 percent of the district’s revenue. The remaining 67 percent of the district’s revenue comes from state subsidies, she said.

Revenue from real estate taxes is $5.5 million and total revenue from local sources, including per capita taxes, is $7.8 million.

State subsidies total $15.8 million, including $9.7 million for basic education, $1.9 million for retirement contributions, $1.3 million for transportation and $1.1 million for special education.

The preliminary budget includes a $4.9 million fund balance, a $3 million capital reserve fund and a $500,000 budgetary reserve.

Turner said the cost of the gym renovation project will come from the capital reserve fund.

Instruction expenditures total $14 million, including $12.3 million for regular education programs, $1.2 million for special education and $410,000 for vocational education. Teachers will get 3 percent pay raises next year.

Support services expenditures total $8.3 million including $2.2 million for transportation, $2 million for operation and maintenance, $1.5 million for administration and $1.1 million for instructional staff.

Transportation costs include $25,000 for installing cameras on all buses.

The cameras will cost $480 per bus annually and bus contractor Shriver Contract Services is covering the cost of installing GPS units, said Mike Stimac, Sugarcreek Elementary School principal and transportation director.

He told the board that the cameras have audio capability, but the audio won’t be activated.

The district has a policy allowing use of audio, but it requires parents to be notified and installing signs on the buses, he said.

Audio recording would not add to the cost, Stimac added.

Shriver will own the video recordings, but the district can access them, Ritzert said.

In addition, the board approved a 10-cent increase in lunch prices stemming from declining enrollment, wage increases and higher food costs.

Elementary lunches will cost $2.25, high school lunches will cost $2.45 and adult lunches will cost $3.35.