In viewing the historical data of millage rate increases, most years reflect an increase in millage, which translates to increased property taxes for residents. The need to increase taxes from year to year reflects inflation and rising costs. There are two options for a school district when faced with trying to meet these increased costs: (1) increase the tax base or (2) increase the millage. When the recession hit in 2007, development slowed and halted in many townships in the district. This, coupled with homestead petitions to reduce tax assessment value of a property, led to a decreasing tax base (Avon Grove School District). While development was halted, Avon Grove School District, enjoyed a period of no increase in millage rates from 2005-2010. This time period also aligns with a state delay in paying into the PSERS system, which lasted from approximately 2003 to 2010. In 2010, Act 120 was passed, which required the state and district to begin paying into the pension system again. The combined strain of little new development to tax, tax reduction petitions, five years of no tax increases and delayed PSERS payments has left the school district in need of increasing revenue to meet current demands.
From 2010-2017, tax increases have been relatively modest compared to those tax increases of 1999-2005. This is, in part, due to the fact that the Act 1 index was passed in 2006. Act 1 set a limit for the amount a school district could increase taxes each year without obtaining an exception from the Department of Education or a voter referendum (Property Tax Relief, 2016). The 2011-2012 school year saw a relatively high increase as school districts were granted exceptions to exceed Act 1 constraints in order to meet PSERS payments (Avon Grove School District).
In sum, the tax increases on Avon Grove School District have been relatively modest given the years in which no tax increases were taken despite the fact that inflation, a decrease in tax base, and unfunded PSERS liabilities were continuing to drive up costs.
