The Northampton Area School District 2013-14 budget has been approved with a reduced tax hike.

By a 5-3 vote, with one board member absent, the 2013-14 final general fund budget was approved with a tax increase of 1.06 mills, or 2.27 percent, from 46.65 mills to 47.71 mills.

According to NASD Business Administrator Terry Leh, that works out to $60.82 annually, $5.07 weekly, and $1.17 daily.

The 2.27-percent increase is above the 2 percent state index, which NASD received approval from the Pennsylvania Department of Education to exceed.

The general fund budget is $88,785,952. The athletic fund of $179,868 and the food services fund of $2,414,931 were approved as part of the package.

The per capital tax is $5. The real estate transfer tax is 0.5 percent. The earned income tax is 0.7 percent.

The 2.27-percent increase is reduced from the 2.38 percent in the preliminary budget approved May 6. That increase was also down from 2.68 percent proposed at the April 22 meeting and 3.14 percent proposed Jan. 14.

The 1.06-mill increase is down from the 1.11 mills approved May 6.

In the nearly intervening six months, Leh and Superintendent Joseph Kovalchik have been chipping away at the tax hike. Board President David Gogel and board member Jean Rundle have opposed any increase above 2 percent.

"As a taxpayer, I thank you," board member Judy Odenwelder said to Kovalchik.

"We're all taxpayers, too, and we don't want to see our taxes go up," said board Vice President Jane Erdo.

Monday night, Gogel, Rundle and board member Darin Arthofer voted against the final budget. Board member Robert Koch was absent.

Voting for the budget were Erdo, Odenwelder and board members Cory Fenstermaker, Dr. Michael Baird and Jennifer Miller, who voted by phone.

"The administration and the board worked collaboratively over six months," Kovalchik told The Press after the meeting. "We're still not sure what we're going to get from the governor," he said. The state legislature is still working on its budget.

After the meeting, Leh told The Press if NASD gets a proposed $246,000 increase in state funding, it would be applied to the fund balance now that the 2013-14 district budget has been finalized.

In addition to the tax hike, $1.2 million in unreserved funds from the district fund balance will be used to balance the budget, Leh said.

The $1.2 million is part of $3.7 million being taken from the fund balance, with $2,630,000 assigned for specific needs and projects, including Al Erdosy Stadium improvements.

A total of $10,225,830 will remain in the fund balance, according to Leh.

"It's the highest fund balance we've ever had," said Kovalchik.

"This is even before my time – this district has been pretty darn frugal," Kovalchik said. "This board was burdened by a building project. We really didn't have a choice."

At Monday night's meeting, before the budget vote, Gogel and Arthofer expressed misgivings about the tax hike.

"I think in all the years I've been on the board, I haven't had as many people approaching me about the budget," Arthofer said. "I appreciate you getting it down. I'm still going to have a hard time voting for it. I'm struggling with it."

"Sooner or later, that fund balance is going to be gone. We have to adjust our expenditures," Gogel said.

"The economy is not going to improve or could get worse," said Erdo. "We can't stop educating."

"It was called for," Odenwelder said.

Pennsylvania school districts must finalize budgets by July 1.

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In other business, the board voted 5-2, with two members absent, to increase athletic event ticket prices for senior citizens from $1 to $2 and reduce ticket prices for students from $3 to $2. Tickets for adults remain $5.

Voting for the price changes were Erdo, Fenstermaker, Odenwelder, Arthofer and Gogel.

Baird and Rundle opposed.

Miller and Koch were absent.

Rundle opposed the increase in athletic event ticket prices for seniors.

The board also heard a report from Christopher W. Haller, D'Huy Engineering Inc., middle school project engineer. "Despite the weather, things are moving along very well," he said.

The former vo-tech building has been demolished. Concrete is being crushed there.

Storm water, sewer and a water line has been installed along the new Stadium Drive.

Power to the old field house is to be turned off June 17 with demolition to begin June 20.

Robert J. Yanders, NASD director of operations, supervised moving field house contents to the high school basement.