JEFFERSON TWP — Property owners in the South Butler School District will not see a tax increase for the 2018-19 school year.

School board members voted unanimously Wednesday night to approve the district's $38.6 million 2018-19 budget without upping the millage rate.

The budget includes a 1.3 percent increase in expenses over the current budget and a $2.5 million increase in overall salaries, reflecting the board's approval of a contract settlement with its 167 teachers earlier in the week.

Members of the South Butler School District Education Association voted Wednesday to approve the same arbitration settlement.

Other major line item increases include contractual obligations and new positions being discussed by administrators.

Capital improvement projects include a proposed expenditure of $68,000 for updates in the auditorium, $553,000 for a new cooling tower in the heating and air conditioning system, $30,000 for replacement of equipment in the various schools' kitchens, and $4,200 in exterior lighting at the middle school.

Regarding revenue, Paul Slomer Jr., director business manager, said 77 percent of the district's funding, or $15.6 million, comes from local real estate taxes.

Slomer said there is no significant new development or construction in the district that would increase revenue.

He said the Aldi warehouse, Penn United Technology and II-VI are three of the top taxpayers in the district.

The district also expects a $47,000 increase over last year in federal funding.

The budget is available for viewing on the district's website, www.southbutler.org.