KARNS CITY — While a large scale high school renovation with an eight-figure price tag looms over future budgets, Karns City Area School District is standing pat with its taxes and spending for the time being.

The school board finalized the district’s $27.1 million budget for the 2026-27 school year at its Monday, June 15, meeting, along with no tax increase for any of the district’s three counties.

The district’s Butler County residents will pay a millage rate of 108.92 mills; Armstrong’s rate will be 34.93 and Clarion’s will be 4.42.

Evan McGarvey, Karns City’s business manager, said a reassessment in Clarion County will change the overall millage numbers. It’s not a tax increase, he explained — it’s an adjustment to reflect the reassessment conducted by the county.

A mill is equal to a $1 tax for every $1,000 of a property’s assessed value.

“Because we’re a multicounty school district, just because our real estate revenue doesn’t change, doesn’t mean our millage won’t. Public school code dictates that with multicounty school districts, you have to look at the state equalization board’s assessed values and common level ratios of each county to make sure the revenue streams are balanced,” McGarvey said.

“As certain counties either grow or decline in assessed value, it will impact the overall millage rates.”

Spending by the school district will increase by just over $400,000 from the current year.

About $18.33 million of the district’s projected revenue would come from state sources. About $8.76 million would come from local sources.

The budget and flat millage rates come as Karns City Area School District considers a potential high school renovation that would cost tens of millions of dollars. The board previously hired Hayes Design Group, a Pittsburgh-based architecture firm, to come up with designs for what a future high school renovation could look like.

“We take a look at taxes on an annual basis. I think it’s important to look at both short term needs and long term needs of the district when you’re evaluating that and also, what’s going on at the state level,” McGarvey said. “There’s obviously changes happening in terms of the state funding coming through to us and you can’t predict that three to five years out.”

When balancing short-term needs and long-term planning, it’s important to recognize the burden increases put on taxpayers, McGarvey said, adding he feels obligated to hold taxes when able to do so.

“We’re aware of the renovation project that’s going to happen and we’re aware taxes may go up in the future. But the only reason we’re going to do that is if we have a good cause to do so,” McGarvey said.

Based on the two design proposals drawn up by Hayes, total costs for a renovation of Karns City Area Jr./Sr. High School are projected right around $50 million, though district officials expressed they were not fully committed to those numbers.

At Monday’s board meeting, superintendent Eric Ritzert indicated the renovation proposal would be “pared down” after asking Hayes Design Group to “keep things within walls of the school.”

The large-scale project will include updates around the property, such as new and improved classrooms and learning spaces, improved athletic facilities and significant heating and cooling improvements.

The project is informed by a series of surveys taken by teachers, faculty, department chairs, athletics employees and other key stakeholders since February.