ATGLEN, PA — The Octorara Area School Board approved a $68.2 million budget for the 2026-27 fiscal year that includes property tax increases in both Chester and Lancaster counties and uses $1.3 million from the district’s fund balance to close a remaining deficit.
The board voted June 22 to raise property taxes by 2.6% for Chester County residents and 2.51% for Lancaster County residents after considering several options to address a projected $5 million budget shortfall.
The adopted budget projects $68.2 million in expenses against $63.2 million in revenue absent any local tax increase. District officials have also explored refinancing bond issues to generate additional savings.
Because Octorara spans both Chester and Lancaster counties, the district annually adjusts millage rates under a state formula designed to distribute the tax burden equitably based on changing property assessments in each county.
Even without a revenue increase, the annual rebalancing would have raised Chester County tax rates by 0.16% and lowered Lancaster County rates by 2.93%.
Under the adopted plan, the new tax rates are 44.69 mills in Chester County and 25.85 mills in Lancaster County. The changes amount to a 1.2-mill increase in Chester County and a 0.12-mill decrease in Lancaster County.
For a property assessed at $100,000, the changes translate to an annual increase of $120 in Chester County and a $12 decrease in Lancaster County. Eligible property owners in both counties remain entitled to a homestead-farmstead exclusion of $480.06.
The budget vote capped several weeks of discussions over how to address the district’s financial challenges. During a June 15 meeting, board members reviewed five tax scenarios ranging from the approved increase to a maximum increase of 4.66% in Chester County and 4.10% in Lancaster County.
Separately, the board approved moving forward with an intergovernmental agreement with Parkesburg Borough to provide police coverage to the school district.
The board also approved more than $165,000 in contracts to install a new playground at the Octorara Primary Learning Center.
King Swings will install the new playground equipment for $140,000, while Orners Tree Service and Landscaping will remove the existing equipment for $6,700. Mendenhall Trowel Trades received a $19,000 contract to install curbing around the playground.
The playground project will be completed during the summer break.
The school board will not meet in July. Beginning Aug. 10, board meetings will be held in the district’s Learning Annex.
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