JEFFERSON TWP — South Butler School District board members voted Wednesday to forego requesting an exemption from the state’s annual cap on the district’s property tax rate increase for the coming budget year.

The resolution, which was approved by a vote of 7 to 0 with no discussion, means the district can raise property tax rates by a maximum of 2.923 mills in its 2017-18 budget. The annual cap is set by the state Department of Education, but districts that might want to seek increases larger than the cap can request exemptions from the state — though they are required to abide by a tightened budget timeline as a result.

Superintendent David Zupsic said it was too early in the district’s budget process to say whether property taxes would go up next year for residents of the district, though he acknowledged that salaries and contributions to the state retirement system remain large fiscal concerns for the district.

For the 2016-17 year board members approved a 1-mill property tax hike toward a $36.5 million budget. The millage hike generated $169,000 for the district.

Each mill produces $1 in revenue for each $1,000 of a property’s assessed value.

Teacher negotiations

Board members also announced on Wednesday that later this week they will hold the first contract negotiation meeting of 2017 with representatives of district teachers.

The teachers have been working without a contract since June 30, 2014, and Zupsic said major sticking points between the two sides remain salaries and benefits.