JEFFERSON TWP — Taxpayers in the South Butler County School District are not facing a tax increase at this point.

The school board voted unanimously Wednesday to approve a 2018-19 preliminary budget in the amount of $38.6 million.

The board is expected to vote on a final budget at its June 13 meeting.

District business manager Paul Slomer presented the budget at the district's Wednesday night meetings.

The proposed budget shows a 1.3 percent increase over the current budget.

Slomer said the budget includes a $2.5 million increase in salaries.

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, Slomer 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's 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 preliminary budget passed unanimously and will be posted on the district's website on Thursday for public perusal.