Grove City School Board OKs tax hike, furloughs, bond issue, logo

Jun. 13—GROVE CITY — Grove City School Board members tackled some difficult decisions on Monday night including a 3-mill tax increase and furloughs.

"I find it very difficult to believe that services aren't gonna be impacted," parent Amanda Dicus said of the furloughs during public comments.

Board members unanimously voted to furlough Trevor Bortz, a secondary art teacher at George Junior Republic.

Augie Hurst, chair of the personnel committee, later said the furloughs were done with sadness and regret, but that one of the individuals he spoke to had a commendable response to the news.

The board also agreed to furlough five aides — two full-time and three part-time: three at GJR, one at the high school and at the middle school; some of the aides are expected to relocate to other school buildings in the district for the new school year, said Beth Harris, business manager and board secretary.

Also, three aides were moved from full-time to part-time.

The aides were not identified, but board member Patty Wilson noted that the furloughed aides have been hired by Midwestern Intermediate Unit IV.

The resolutions note that the furloughs were proposed because of a "substantial decline" in enrollment.

During the 2020-21 school year, 802 students were enrolled at George Junior and the high school. Enrollment for the 2023-24 school year is projected to be 684 students at GJR and the high school.

And even with a 3-mill real estate tax increase, the district will still be operating with a deficit budget of just under $3 million; about $1 million will be covered by federal pandemic Elementary and Secondary School Emergency Relief funds, said Doug Gerwick, board president.

Expenses for next year are set at $42,638,435; the budget passed 7 to 1 with Randy Arnold voting "no." Those in favor were Gerwick, Ryan Thomas, Hurst, Wilson, Dr. Armando Sciullo, Dr. Constance Nichols and Dr. Jeffrey Tedford. Lee McCracken was absent.

There was a debate over the amount of the tax increase, with Hurst proposing a 2-mill increase.

Board members need to look out for everyone's pocketbook, especially those with fixed incomes, he said.

Under Pennsylvania's Act 1 program, the board could have raised taxes by a maximum of 3.72 mills before needing state or voter approval.

"Raising taxes by the highest amount isn't gonna fix that," Hurst said of the deficit.

Two mills would be irresponsible, and the board can't count on changes to state tax laws anytime soon, said Gerwick, board president.

"And so the burden is on us," he said.

Tedford, chair of the finance committee, said he was initially eyeing a 2-mill increase, but he realized that there aren't many new businesses coming to town, and property tax reassessments are not going in the district's favor.

Sciullo added that the district is also not benefitting from Springfield Township's Tax Incremental Financing program that the district joined six years ago.

That program was put into place to improve infrastructure in an effort to attract new development, with the township, school district and county providing funds.

The vote to amend the motion to 2 mills failed 5 to 3, with Thomas, Arnold and Hurst voting in favor of it.

The motion for 3 mills, bringing tax rates to 71 mills, passed 5 to 3 with Thomas, Arnold and Hurst voting "no."

The 3 mills will increase taxes by less than $12.50 a month for most property owners in the district.

Board members also voted on a real estate tax assessment appeals program; that failed 7 to 1 with Gerwick voting "yes."

If approved, that would have authorized Andrews and Price, the district's solicitor, to collect data and file appeals for residential, commercial and industrial properties recently sold in the district — a move to generate additional tax revenues.

The proposal called for appeals to be filed on properties sold in 2021 and 2022 where the difference between the current county assessment and assessment from the recorded purchase price brings in at least $1,000 in school taxes.

It's an unfair money grab that would raise taxes for certain people and cost the district money, Hurst said, with Arnold agreeing.

"You're asking for trouble," Hurst said.

Other school districts rely on their county to handle property tax reassessments, Arnold said. Mercer County is preparing to start that process after more than 50 years of no changes to assessed property values.

Some property owners aren't paying their fair share of taxes, and the district hurt itself by not raising taxes in certain years, Gerwick said.

Hurst questioned the flip side: what about property owners who are overpaying on their taxes? Those kinds of appeals happen as well, said Superintendent Dr. Jeffrey Finch.

Also on Monday, board members:

—Held an executive session before the meeting to discuss school safety.

—Heard from Sarah Graham, a 2022 graduate of Grove City High School, who asked the board to reconsider the furloughs, especially one of her favorite teachers. Later in the meeting, board members noted that the furloughed teacher is not the same employee Graham mentioned.

Dicus also said that she was disappointed with how board members conducted themselves at last week's work session in part because they spent a lot of time talking about a new logo for the district, calling it "really disrespectful," especially since some school employees attending virtually wanted to learn about the future of their jobs.

Thomas later said that committee meetings are open to the public for those who want more details.

—Agreed to move forward with borrowing through a bond issue not to exceed $12 million for high school renovation work that includes a new roof and infrastructure improvements. Arnold cast the lone "no" vote.

"We're backed into a corner when it comes to our facilities," said Thomas, chair of the facilities and school safety committee.

The district can expect to spend about $10 million on the first part of renovations, but that higher dollar amount provides greater flexibility since the district still has to solicit bids for part of the project, said Christopher Brewer, bond counsel and partner with Dinsmore and Shohl LLP.

The bonds are expected to be sold through a bidding process next week, he said, with Harris adding that the district has an A+ bond rating, which could mean lower interest rates.

It is possible that a second bond issue won't be needed; that depends on factors like potential grant money, Finch said, adding that the stadium bleachers and tennis courts also need work.

Near the end of the 2 1/2 -hour meeting, board members awarded a $2,435,747 contract to David Maines and Associates for restoration and replacement of the roof and exterior insulation.

—Approved a settlement with Grove City Premium Outlets following a tax assessment appeal for multiple parcels, which are currently assessed at a total of $22,785,200.

The settlement is retroactive; the new property values for the outlet mall are $19,250,000 in 2022; $16,445,000 in 2023; and $14,300,000 in 2024. In the end, this will reduce their tax payments to the Springfield Township, Mercer County and the school district by about one third, with the school district losing the most because its tax rate is higher than the other two combined.

The mall, owned by Simon Property Group, paid its 2022 property taxes of $1,518,496.70 to the district under protest, meaning that 25 percent of that, or $379,623.93, was being held in escrow until a settlement was reached, school officials have said.

—Approved a new branding concept for school logos and colors.

—Approved the 2023-24 Homestead and Farmstead resolution, which provides property tax relief.

—Approved the educational services program that the district provides for non-resident students at George Junior Republic. They also approved a change in status for Megan Hogue, pending clearances. She's the interim principal at GJR and will be director of the educational services program effective July 1.

—Approved a resolution to redesignate Pennsylvania's Department of Education Educational Names and Addresses system, or EdNA, and to close the neighborhood designation of the schools known as Grove City Area George Junior Elementary School, Grove City Area George Junior Middle School and Grove City Area George Junior High School.

EdNA is a system that can be used to search for names, addresses and related information about the educational entities that PDE serves.

This move allows the district to provide GJR with educational services that are better aligned with state educational laws and regulations, and the names and addresses will be updated in the system.

—Voted down a resolution in support of Senate Bill 180 and House Bill 180, which call for free school breakfast and lunch for all students in Pennsylvania.

While board members are in favor of providing free meals to all students, they have concerns about how it would be funded; it seems the lawmakers have yet to figure that out, Thomas said.

Wilson, Gerwick and Nichols voted in favor of the resolution.

Grove City School Board does not meet in July. The next meetings are: educational services and personnel committees, 8:15 a.m. Aug. 1; student affairs and activities committee, 6:30 p.m. Aug. 7 followed by the work session at 7 p.m.; and voting meeting, 7 p.m. Aug. 14. For meeting agendas or connection information to attend virtually, visit grovecity.k12.pa.us