The Avonworth School Board is expected to vote Monday on a proposed 2010-11 budget that will increase the property tax millage rate by six-tenths of one mill.

The $22,381,375 spending plan will require a transfer from the district’s reserve fund of about $766,000, according to Avonworth director of finance Brad Waters, which will put the fund balance at 8 percent of the district’s operating budget.

Avonworth was limited to increasing the millage rate by .5 mills under the Act 1 index, but received authorization from the Pennsylvania Department of Education for a .3 mill increase to offset increased pension contributions.

School districts throughout the state are facing the task of funding what promises to be the first wave of dramatic annual increases in pension contributions. Waters said that Avonworth’s millage increase will take advantage of the .3 mill exception granted by the state for that purpose, with the other .3 mills coming from the index millage allowance.

“It’s just to point out that this tsunami is coming down the road,” Waters said.

In fact, the coming year’s increased pension contributions contributed heavily to a projected 17.6 percent increase in Avonworth’s employee benefits costs for the coming fiscal year, Waters said. Salaries are expected to increase by 5.85 percent.

Overall, spending in 2010-11 is estimated to increase 4.3 percent over 2009-10, Waters said, with the proposed budget reflecting decreased utility and plant services costs, as well as fewer technology equipment requests funded.

Even with the proposed tax increase, Waters said, Avonworth’s 19.9 mills tax rate still will remain one of the lowest in Allegheny County.