Following state deadlines so it can file for exceptions to raise the property tax millage rate higher than the state index without a voter referendum, the Avonworth School Board adopted a preliminary bud-get for the 2010-11 school year at its meeting on Monday.

The district plans to file for an exception to the referendum rule because the amount schools will have to contribute to the Pennsylvania School Employees' Retirement System (PSERS) will nearly double next year.

Should Avonworth be approved for the exception, the board could raise the property tax rate .3 mills above the state-set index of .55 mills, to a total maximum increase of .85 mills. That increase would bring the district's millage rate up from 19.3 to 20.15.

Board member Frank Mucha said that just because the district is filing for the exception does not mean that the board has to use it.

Even with the increase of .85 mills, however, the district will use a reserve fund transfer of about $961,000 to balance the budget, according to director of fiscal management Brad Waters.

Board member Jeff Schmid said that the district's revenues have come in an average of $875,000 higher than projected in past years, and said that because of the economic times, any tax increase should be curbed.

Waters agreed that past years' revenues had been higher than expected, and said that he already has figured some of that into the budget.

Mucha told members that the preliminary budget was purely informational, and that the district was just following a timeline in order to apply for the exception. He said that officials will continue to look into areas where the district might be able to save money in an attempt to lessen the impact on taxpayers. The official budget will be approved in June.

"This is just another step in the process," board member Brenda Barlek added.