Mercer area residents can expect their property taxes to go up another 1.5 mills after the school board Monday approved a spending plan for 2009-10.

The $16.6 million budget holds the line on expenses, said Superintendent Dr. William D. Gathers. However, the 2.5 percent tax increase is needed to pay for the nearly completed elementary school renovation.

The renovation added 10 classrooms, office space, a 321- to 345-seat air-conditioned gym, dedicated music and science rooms and computer labs, and improved mechanical and electrical systems for a cost of about $15.7 million.

The renovation began in spring 2008 and is slated to be finished in time for classes this fall.

Mercer’s school tax rate is 61 mills. A mill is $1 for every $1,000 of a property’s 1970 value. A home assessed at $20,000 would carry a tax bill of $1,220, an increase of $30.

The tax hike is less than increases from the last two years, which were also mostly for the renovation. Last year’s increase was 2.6 mills.

Property owners in Mercer and Coolspring, Findley, Jefferson and East Lackawannock townships will be subject to the tax increase.

Mercer Area budget at a glance

Here is a breakdown of Mercer Area School District’s proposed 2009-2010 budget of $16,608,075, with current-year figures in parentheses:

SPENDING

• Instruction – $9,226,120 ($8,843,801)

• Support Services – $4,975,840 ($5,179,527)

• Noninstructional – $434,655 ($420,000)

• Debt and reserve – $1,831,890 ($1,528,685)