Avonworth administrators believe they will need to increase property taxes by .85 mills in the next fiscal year, and the district's school board will vote Monday on whether to approve a preliminary budget based on the higher millage rate.

The tax increase includes not only the .55 mills allowed under the state index, but an additional .3 mills officials hope they can levy without getting voter approval on a primary election referendum.

The district already has announced that it will ask the Pennsylvania Department of Education for an exception to the referendum rule, based on the fact that Avonworth's contribution to the Pennsylvania State Employees’ Retirement System (PSERS) will double next year, going from this year's $235,000 to $435,000 in the coming fiscal year that begins July 1.

The preliminary budget required by the state for districts seeking tax increase exceptions will draw primarily from the reserve fund balance, shifting about $961,000 to the operating fund, according to director of finance Brad Waters.

The fund balance, which currently stands at $2.3 million, will drop to about $1.4 million, Waters said.

The budget reflects a 17.8 percent increase in employee benefits and a 5.85 percent increase in salaries, Waters said. It also sets aside $500,000 for the planned elementary school building project, and includes funding for two new recently-approved positions, an assistant elementary school principal and a high school social studies teacher.

With final approval of a budget not on the schedule until June, the spending plan will be a work in progress.

"We will continue to work on this budget for the next three months," Waters said, looking for areas that can be cut from the $22.5 million spending plan.

A .85 mill increase would take Avonworth's property tax millage rate from 19.3 to 20.15.